Health Insurance Reform updates

Health Insurance Reform updates

Written by Barry Glenn Friday, 04 February 2011 13:03

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Given the changes in the political landscape and the makeup of the Supreme Court, the implementation of Health Care Reform over the next several years is certain to be a rocky and confusing process. 

Click below to review the most recent time lines...

The political situation on Capitol Hill made a dramatic shift to the right on Nov. 2, 2010. Some have called the congressional midterm elections a political earthquake and a conservative tsunami, but whatever your viewpoint might be, the results of the elections are certain to reshape, refocus and redirect the debate on most employment-related legislation and issues.

2011

Long-term Care

• Establishes a voluntary insurance program for the purchasing of community living assistance services and supports (CLASS).  All employees are auto enrolled and can waive this coverage.
• Update:  Secretary of HHS has delayed definition of the CLASS benefit plans until 10/2012.  This will effectively delay requirement until 1/1/2013.

Medical Malpractice

• Provides for demonstration programs to evaluate alternatives to tort litigations. 

Prevention and Wellness

• Provides grants of $200M for 2011-2015 for Employers who provide access to workplace wellness.  Limited to Employers with less than 100 employees working at least 25 hours per week and have no existing workplace wellness in place before 03/23/2010

HSA Exclusion of Over-the-counter Drugs

• Effective 01/2011, over-the-counter drugs will become non-qualified expenditures under an HSA.

Penalty increase on HSA

• Effective 01/2011, the penalty for non-qualified distributions from an HSA will increase from 10-20%

Medical Loss Ration Requirement

• Requires fully insured plans to have a MLR of 80% for Small Groups (2-99) and 85% for Large Groups (100+)
• If the MLR is found to be below the required level, the carrier will be required to rebate the premium back to the consumer.

Requirement to Report Employer Paid Health Premiums

• Must report aggregate cost of health insurance on W-2
• Update:  This has been delayed until 2012.  2011 is an optional year.  Employer should consult with accountant or corporate tax attorney for compliance requirements.