Employee Benefits Compliance, Large Employers

ACA Auto-Enrollment Repealed – before it’s Effective

president obama

On November 2, 2015, President Obama signed the Bipartisan Budget Act of 2015 (H.R. 1314), and part of that  that Act repeals the Automatic Enrollment provisions that the Affordable Care Act added to the Fair Labor Standards Act (FLSA), section 18A.


Automatic Enrollment would have required large employers (in this case, large was 200 or more full-time employees) who are subject to the FLSA and who have health plans to automatically enroll new full-time employees in one of the employer’s group health plans and to continue the enrollment of current employees.  Employers also would have been required to provide certain notices to employees, giving them an opportunity to opt out of health coverage in which they were automatically enrolled. No effective date had yet been set, and there had not yet been final regulations on the provision.


Here is a link to the bill:  https://www.congress.gov/bill/114th-congress/house-bill/1314