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Annual ACA
Notices
Even though the Affordable Care Act (ACA)’s
penalty for not having health coverage
(known as the individual mandate) has been
Optima Tax Relief plans are partially arranged by Optima
Tax Relief and governed by it’s plan rules and documents. reduced to zero, if you are a taxpayer
in California, you will still be required to have
ERISA and various other state and federal laws require that health coverage (unless you qualify for an
employers provide disclosure and annual notices to their exemption) or pay a penalty for the 2020 tax
plan participants. Optima Tax Relief distributes annual
notices to new-hires, and each year during open enrollment. year. In addition, several other states,
You may also request a copy by contacting the Human including Massachusetts, New Jersey, and
Vermont, as well as the District of Columbia,
Resources Department, or download a copy from ADP. have reinstated an individual mandate
requirement, and others are considering
The following are a list of Annual Notices: doing so.
• Medicare Part D Notice of Creditable Coverage: Plans
are required to provide each covered participant and You may consider these options below to
dependent a Certificate of Creditable Coverage to qualify satisfy this requirement:
for enrollment in Medicare Part D prescription drug • Enroll in a medical plan offered
coverage when qualified without a penalty. by Optima Tax Relief or another group
• HIPAA Notice of Privacy Practices: This notice is medical plan meeting the requirements
intended to inform employees of the privacy practices for minimum essential coverage;
followed by Optima Tax Relief’s group health plan. It also • Purchase coverage through a health
explains the federal privacy rights afforded to you and insurance marketplace;
the members of your family as plan participants covered
under a group plan. • Enroll in coverage through a government
• Women's Health and Cancer Rights Act (WHCRA): This -sponsored program if eligible.
act contains important protections for breast cancer
patients who choose breast reconstruction with a However, if you choose to purchase coverage
mastectomy. through the marketplace, because Optima
Tax Relief’s medical plans are considered
• Newborns’ and Mothers’ Health Protection Act: This affordable and meet minimum value under
act affects the amount of time a mother and her the Affordable Care Act, you may not be
newborn child are covered for a hospital stay following eligible for a subsidy, and you may not see
childbirth. lower premiums or out-of-pocket costs
• Special Enrollment Rights: Plan participants are through the marketplace. In addition,
entitled to certain special enrollment rights outside of employer contributions to your medical
Optima Tax Relief’s open enrollment period. This notice benefits will be lost and your portion of
provides information on special enrollment periods for medical premiums will no longer be paid via
loss of prior coverage or the addition of a new payroll deductions on a pre-tax basis.
dependent.
• Medicaid & Children’s Health Insurance Program:
Some states offer premium assistance programs for
those who are eligible for health coverage from their
employers, but are unable to afford the premiums. This For More Information
notice provides information on how to determine if your Go to www.healthcare.gov.
state offers a premium assistance program.
• Summary of Benefits and Coverage (SBC): Health
insurance issuers and group health plans are required to
provide you with an easy-to-understand summary about
your health plan’s benefits and coverage.
22 Employee Benefits