Health Care Reform

Today’s compliance update will focus on planning for health care reform for 2012 and beyond.  The next 12 to 18 months will be important for understanding changes happening this year, but more importantly planning for changes scheduled to be implemented in 2014.   Please see the attached document for more details, but here is a highlight of some of the items to consider.  /sites/default/files/blog-content/u6/Health%20Care%20Reform%202012-2014.pdf

2012 brings changes such as Women’s Preventive Health Care Services, the fee for Comparative Effectiveness research, and preparing to report health insurance premiums on W-2s for 2013.  Also, the United State Supreme Court will hear cases challenging the individual mandate requirement and possibly other components of the PPACA. 

2013 brings changes such as the limit of $2,500 for Flexible Spending Accounts and the end to the Retiree Drug Subsidy.

2014 is a big year!

• The state Exchanges will be up and running, or the federal government will administer it on behalf of a state that does not have an Exchange.  The plans offered to small group and individuals inside and outside the Exchange will be required to cover Essential Health Benefits.  
• Employers will face the “Pay or Play Tax” where if an employer with 50 or more employees does not offer coverage and one or more employee enrolls in coverage through the Exchange and receives a premium tax credit, the employer will pay a tax.  Or if an employer offers coverage but that coverage is not Comprehensive and/or Affordable and one or more employee enrolls in coverage through the Exchange and receives a premium tax credit, the employer will pay a tax.

Employee Benefits Solutions is poised to provide guidance to help prepare your business for the changes coming in 2014.  Please note, EBS does not provide legal or accounting advice so please plan to contact outside counsel for additional guidance on these laws.