Not a Member? Get access to HR news and resources that you can trust.
Change can be scary, but deploying new HR software doesn't have to be.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Get the HR education you need without travel expenses or time out of the office.
We don’t just visit a city, we take it over. Join the HR community in NOLA -- June 18-21, 2017.
Employees, regardless of which language they speak, should be able to understand their benefits
The Affordable Care Act's (ACA's)
final Section 1557 nondiscrimination rules, which took effect on Oct. 16, are designed to provide equal access to health coverage. While the rules apply primarily to health care providers and insurers, of particular interest to employers—and causing some confusion at the moment—are the provisions addressing limited English proficiency (LEP).
These provisions require organizations subject to the new rules (i.e., "covered entities") to post notices that state that the organization:
Although the notice need only be posted in English, the Department of Health and Human Services' Office of Civil Rights is encouraging publication of the notice in one or more non-English languages. Notices must be prominently posted by covered entities in significant publications or communications and conspicuous public locations, and must be included in a conspicuous location on the entity's website. Significant publications include education materials, applications and consent forms, and notices relating to rights, benefits and services—including
summaries of benefits and coverage (SBCs).
Another requirement is that covered entities post taglines in the same locations and in documents stating the availability of language assistance services free of charge. These taglines are short statements written in languages other than English and must be written in the top 15 languages spoken by individuals with LEP in the relevant state. For smaller publications, only the top two languages are required.
[SHRM members-only HR Q&A:
How Does the Affordable Care Act Affect Nondiscrimination Rules for Group Health Plans?]
What's a Covered Entity?
Section 1557 defines a covered entity as a health care provider that receives federal financial assistance of any kind, including hospitals, nursing homes, home health agencies, retail pharmacies, labs, and qualified health plan issuers such as insurance firms that participate in Medicaid or Medicare or receive grants, loans, subsidies, tax credits or cost-sharing reductions from the federal government.
In addition to self-insured employers that are hospitals and other health care providers, the regulations apply to self-insured employers that receive health care-related federal funds, including
those that receive the retiree drug subsidy from the federal Centers for Medicare and Medicaid Services—intended to encourage employers to continue providing high-quality prescription drug coverage to their retirees—or those providing their retirees with a group Medicare Part D prescription drug plan option through an employer group waiver plan or a Medicare Advantage prescription drug plan.
However, Section 1557 does not otherwise generally extend to employers that provide a group health plan, even when that plan is administered by an insurance company or other third-party administrator that is itself subject to the new regulations.
[SHRM members-only Toolkit:
Communicating with Employees About Health Care Benefits Under the Affordable Care Act]
What Employers Need to Know
Below are four key points employers should keep in mind if they are subject to the new regulations or want to ensure that their insurance firm or network health care providers are compliant:
The notice and taglines do not need to be added to the SBC itself but can be a separate addendum accompanying the SBC and will not count toward the 8-page limit.
Consult with your legal counsel to determine whether and to what extent the LEP provisions apply to your organization. As with most newly applicable government regulations, new guidance is constantly being made available.
Kim Buckey is health care regulations expert and vice president of client services at
DirectPath, a Birmingham, Ala.-based
strategic employee engagement and health care compliance advisory firm.
Was this article useful? SHRM offers thousands of tools, templates and other exclusive member benefits, including compliance updates, sample policies, HR expert advice, education discounts, a growing online member community and much more. Join/Renew Now and let SHRM help you work smarter.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
CA Resources at Your Fingertips
SHRM’s HR Vendor Directory contains over 3,200 companies