You probably have heard about healthcare reform. I have been working on a new timeline of some of the changes. Please take a look. Mark
Immediate Changes:
Small businesses that have no more than 25 fulltime employees and pay average annual wages of less than $25,000 are eligible for a tax credit.
2010 Changes:
High risk pool program established for people who cannot obtain individual coverage due to pre existing conditions.
Group plans will be required to comply with IRS Code 105 that prohibits discrimination in favor of highly compensated individuals.
There will be no lifetime limits on the dollar value of benefits for fully insured and self insured plans.
All group and individual plans will have to cover dependents up to age 26. Dependents can be married.
All group and individual plans will have to cover pre existing conditions for children 19 and under.
All group and individual plans will have to cover specific preventive care services with no cost sharing.
2011
Employers of all sizes must include on W2′s the cost of employer sponsored health programs for informational purposes.
Tax penalties on distributions from a health savings account that are not used for qualified medical expenses increase from 10 to 20 percent.
Over the counter drugs can no longer be purchased with funds from a Health Savings Account or a Flexible Spending Account.
All employers will be required to enroll employees in a new national public long term care program unless the employee opts out.
2012
All group and individual insurers must provide a summary of benefits to all enrollees when they apply for coverage. There is a $1,000 per enrollee fine for willful failure to provide the information.
All group and individual plans will have to submit annual reports to Health & Human Services on whether benefits under the plans meet certain criteria. They want to determine if the plans improve health outcomes and prevent hospital readmissions.
2013
New federal premium tax on fully insured and self insured health plans. It imposes an annual fee equal to two dollars for each individual covered.
Flexible Spending Account contributions will be limited to $2500 per year.
Medicare payroll tax increase of .9% on self employed individuals and employees who individually earn more than $200,000 for above $250,000 for people who file jointly.
All employers must inform employees of the existence of state based insurance exchanges.
2014
Individual mandate requirement to purchase health insurance for all citizens and legal residents takes effect. Penalties for non compliance will either be a flat dollar amount per person or a percentage of the individual’s income.
Employer responsibility requirements take effect for companies that employ more than 50 fulltime employees. Fulltime employees work at least 30 hours per week. The non compliance fine is $2000 per year for each employee that does not have coverage.
Waiting periods for new employees can be no longer than 90 days.
Individual states are required to have their exchanges up and running.
Premium taxes on health insurers based on premium volume take effect.
Premium assistance tax credits for individuals and families making up to 400 percent of the federal poverty level begin. These credits are for individual coverage only purchased through a state exchange. Not employer sponsored coverage.
That’s it for now. If you have any questions, please feel free to contact our office.
