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ACA's Automatic Enrollment Provision Repealed

One provision of the Affordable Care Act (ACA) that had yet to be implemented was a requirement that an employer with 200 or more full-time employees automatically enroll new full-time employees in one of its health benefit plans. This provision would have created an “opt-out” system rather than the current “opt-in” system for coverage under an employer’s plan. While this provision became law in 2010, implementation was delayed pending regulations from the Department of Labor.

Now the automatic enrollment provision has been abandoned entirely. On November 2, President Obama signed the Bipartisan Budget Act of 2015, which included a repeal of the automatic enrollment. The repeal isn’t surprising, but it may come as a relief to employers who felt the need to plan for the provision to go into effect. As the automatic enrollment was not operational at any point, no action is required from employers in response to the repeal.

Content provided by TPC HR Support Center.