Large Employer Auto-Enrollment Requirement for Affordable Care Act Repealed
The Affordable Care Act originally contained a provision under the Fair Labor Standards Act (FLSA) requiring large employers with 200 or more employees to automatically enroll employees in an offered health plan at their eligibility date, unless otherwise waived by the employee. As of November 2nd, this provision has been put on hold due to the signing of H.R. 1314, the “Bipartisan Budget Act of 2015,” which repeals the auto-enrollment requirement for large employers, meaning that employers of 200 or more employees do not have to comply with this provision.
Employers can, however, decide to use “default” or “negative” elections for enrollment, meaning an otherwise eligible employee can be considered to have elected a certain level or type of coverage unless the employee writes a written waiver by a designated time.
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