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Automatic Enrollment

The Affordable Care Act originally required employers who are 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.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 were already covered under another plan.

The Bipartisan Budget Act of 2015, which was signed into law on November 2, 2015, eliminated the automatic enrollment provision.