Documenting an Offer of Coverage
Despite the lack of guidance from the government, the offer of coverage is one of the most important aspects of ACA compliance.
A quality offer of coverage will explain the product being offered including the price of each coverage option and whether the coverage provides minimum value.
However, the most important part of any offer of coverage is being able to document the offer was made.
A properly drafted confirmation of receipt will give the employer a document with the employee’s signature that an offer was in fact made should the employee not return the offer of coverage document. This documentation can help an employer and employee avoid some of the things that can go wrong with the ACA, such as an employee receiving a premium tax credit when he/she is not eligible, the incorrect code being entered on the Form 1095-C, or the IRS performing an audit. Every employer can minimize the issues these scenarios present by having a well-documented offer of coverage. Documenting the offer thoroughly is a really simple protective step.