Health Care Reform has, and will continue, to touch each of us. There are few topics that garner such a flash point of emotions as Health Care Reform. Most every American agrees that problems exist and something must be done. The solutions are where the lines become divided.
As a Dave Ramsey ELP, I want to keep you informed of what has happened, and what seems to lie ahead. I believe that our country must come together to discuss the problems and possible solutions. This issue should not be politicized. Our blog on Health Care Reform is one such venue to share your thoughts. Please be sure to visit, and let us know what you think!
Health Care Reform has already begun to be implemented and is to be completed by 2018. Below is a timeline of the implementation if the present course isn’t altered by the election.
September 23, 2010
Dependent coverage for adult children up to age 26
No lifetime coverage limits
100% coverage for preventive services in network
No annual limits on certain types of benefits
No prior authorization for emergency services or higher cost-sharing for out-of-network emergency services
No pre-existing condition exclusions for children
January 1, 2011
No pre-tax reimbursements from health account for non-prescribed, over-the-counter medications
20% tax for nonqualified HSA withdrawals
Reporting the value of employer-sponsored coverage on W-2s
Automatic enrollment in new long-term care program with ability of employees to opt out.
Account holders will stop receiving pre-tax reimbursements from their FSA, HRA or HSA for non-prescribed, over-the-counter medications.
January 1, 2012
Summary of benefits and coverage (formerly uniform explanation of coverage) Pre-enrollment document sent explaining benefits and exclusions
60-day notice for material modifications, if not provided in uniform explanation of coverage. Requires health insurers, self-funded health plan sponsors and plan administrators to follow uniform standards when providing group and individual plan applicants, enrollees and policy/certificate holders with a summary of benefits and coverage. Also requires a uniform glossary of common health care and insurance terms be provided.
January 1, 2013
Employee notification of exchanges, premium subsidies and free choice vouchers. FSA contributions limited to $2,500 per year
.
October 1, 2013
Fee for comparative effectiveness research agency for Fiscal Year 2013. Employers will need to start telling employees about exchanges, premium subsidies and free choice vouchers.
January 1, 2014
Individual mandate
State-based exchanges for individuals and small groups
Small employer tax credits available only in exchange
Free choice voucher required to be provided to qualifying employees
Elimination of health status rating and other rating factors if used by an insurer
Small group redefined as 1-100 (in most states)
Employer requirement to offer minimum essential coverage (50 employees)
HIPAA nondiscrimination rules on wellness programs
30% incentive cap for wellness programs
New fee on fully insured coverage
90-day limit on waiting periods for coverage
Treasury reporting
January 1, 2018
40% excise tax on high-cost "Cadillac" plans. There will be a 40% excise tax on high-cost plans -- also known as "Cadillac" plans -- that cost more than $10,200 for single coverage or $27,500 for family coverage. The insurer or employer will be responsible for the tax.
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