Most Employers Will Meet Exchange Notice Deadline

The ERISA Industry Committee (ERIC) polled its members and found 94% of respondents are planning to provide an exchange notice to employees by the October 1 deadline. Only 6% said they will not meet the deadline or are undecided, and most of those companies plan to provide the notice later in 2013.

In addition, the poll revealed 92% of the companies plan to use the model notice created by the Department of Labor for exchange reporting purposes. Thirty-six percent of companies are planning to make few changes to the notice, while 56% are planning to omit the “optional” information.

“ERIC learned that virtually all large employers surveyed are planning to send out exchange notices by October 1,” said Gretchen Young, ERIC senior vice president for Health Policy, Washington, D.C. “Although companies are not subject to a fine or penalty for failing to provide the notice, our members want to ensure that they comply with the law.”(See “No Fine for Failing to Provide Exchange Notice”)

Young noted that several company respondents to the poll indicated they had to craft a cover letter to accompany the notice because of the confusion and concern it otherwise would have engendered in their employees.

More than half of ERIC members responded to the poll, which was conducted from September 13 to 18.

Complete poll results can be found here.