Health Care Reform: 1411 Notices – Should You Appeal?

Compliance, Employee Benefits

1411 Notices – What are they and what should employers do if they receive them?

The Department of Health and Human Services (HHS) & the Marketplace have held true to their promise to send out Marketplace subsidy notifications (also known as 1411 Notices) to employers.

The notices indicate that an employee is currently receiving a subsidy in the Marketplace because the employee reported:

  • He or she did not receive an offer of coverage;
  • He or she did not receive a valuable or affordable offer; OR
  • He or she was in a waiting period and unable to enroll.

If an employer believes there has been a mistake regarding the eligibility for a subsidy, the employer is able to file an appeal within 90 days of receipt.  Currently, employers are only able to file appeals via mail or fax.  The on-line option is unavailable until 2017.

Although this is NOT a penalty notice from the IRS, filing an appeal to these notices could help to eliminate reports from the Marketplace to the IRS regarding employee subsidy eligibility.

M3 has provided information on these notices and the appeals process in the last two HCR monthly updates and subsequent webinars. 

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