ABC May 9 joined 87 other organizations and businesses in supporting the Auto Enroll Repeal Act of 2013 (H.R. 1254) that would repeal a provision in the Patient Protection and Affordable Care Act requiring employers of 200 or more full-time employees to automatically enroll employees in a health plan should coverage not be chosen by the employee.
In a letter
sent to Reps. Richard Hudson (R-N.C.) and Robert Pittenger (R-N.C.), who introduced the bill, the groups expressed concern that auto enrollment may create additional confusion for employees in an already complex benefit area. Specifically, they suggested the provision could result in unnecessary hardship if employees find themselves automatically enrolled in a plan in which they do not wish to participate.
The groups also said the requirement was “redundant, expensive and unnecessarily burdensome for employers without increasing employees’ access to coverage.”
In addition, the letter pointed out that the Department of Labor has acknowledged the requirements complexity by delaying implementation. Guidance likely will not be ready to take effect in 2014 and compliance has been waived until rules can be promulgated for this complicated provision of the law.
“Now is the time to address the challenges employees and employers face with the automatic enrollment requirement,” the letter stated.