Bye-Bye Auto Enroll

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The Bipartisan Budget Act of 2015 was signed by President Obama on November 2, 2015 and, with his signature, one outstanding piece of the Affordable Care Act (ACA) was eliminated – automatic enrollment.

The ACA required employers subject to the Fair Labor Standards Act, and who have more than 200 full-time employees, to automatically enroll their new full-time employees in one of the employer’s sponsored group health plans (subject to any permissible waiting period) and automatically continue the enrollment of current employees from year-to-year.

The provision was delayed indefinitely by the Department of Labor who needed to draft regulations.  But many expressed concerns about the requirements, in particular, that some employees would be signed up for coverage they couldn’t afford or didn’t need because they’re already covered under another plan.

Given the ongoing delay in implementation, it’s not too surprising that Congress and the President agreed to eliminate the automatic enrollment requirement.