06 November 2015

REPEALED: Health Care Reform’s Auto-Enrollment Requirement

On November 2, 2015, President Obama signed the “Bipartisan Budget Act of 2015.” The Bipartisan Budget Act of 2015 includes a number of provisions and,with respect to Health Care Reform, it repeals the auto-enrollment requirement that applies to certain larger employers.

As originally enacted, Health Care Reform required employers with more than 200 full-time employees to: (1) automatically enroll new full-time employees in one of the employer’s health benefit plans (after any applicable waiting period); and (2) continue enrollment of current employees.

There was no specific effective date for the auto-enrollment requirement. But, in 2012, the Department of Labor (“DOL”) indicated that the auto-enrollment requirement wouldn’t apply until the DOL issued implementing regulations, which never occurred.

We anticipate that this repeal will be welcome relief to employers that would have been subject to the auto-enrollment requirement. It is, after all, one less Health Care Reform compliance item that certain employers must satisfy.

If you have any questions, please contact the author or one of the members of Miller Johnson’s Health Care Reform Team listed on the right.