Auto-Enrollment

HR Policy Association supports legislation that would repeal the automatic enrollment provision of PPACA, which requires that large employers automatically “enroll new full-time employees” in one of the employer’s health benefit plans and “continue the enrollment of current employees” in a health plan.  Employers have voiced numerous concerns with the auto-enrollment provision.  For example, employers with younger, more transient, and lower paid workforces have expressed concern that employees may not understand either that they must affirmatively opt-out of coverage or the potential consequences if they do not.  These include the potential for employees to be automatically enrolled in a health plan in which they do not wish to participate and the responsibility for premium payments which may significantly cut into their paychecks.  Moreover, there will undoubtedly be significant administrative burdens placed on employers associated with auto-enrolling all new employees and continuing the enrollment of current employees.  In addition, while auto-enrollment only applies to new full-time employees, it is unclear whether employers must continue to offer enrollment to part-time employees if the employer currently does so.  The repeal of this provision of the health care reform law would address employer concerns and also lessen confusion about interaction of auto-enrollment with other provisions such as the employer and the individual mandate.