Health Care reform is complex and difficult to understand.
You have until SEPTEMBER 2010 to get in compliance, or face fines.
Here is a synopsis of the IMMEDIATE changes ALL employers must comply with for the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act:
1. Businesses with 50 or fewer employees are exempt from the tax penalties the law will impose on employers that don’t provide health care benefits to workers. See Sanchez comments in this SHRM article.
2. Businesses with 50 or fewer employees who do provide health care to their employees will receive tax credits starting the year they offer the benefits. The tax credit is up to 35% of the employers’ contribution to purchase health insurance for employees. W-2 forms must report the annual cost of health care coverage received by their employees.
3. Businesses with 50 or more employees that don’t offer health benefits will have a $2,000.00 per employee penalty per year.
4. Businesses and tax-exempt organizations with fewer than 25 employees that provide health insurance coverage to their employees may qualify for a tax credit.
5. Employers with more than 200 employees will be required to enroll new full time employees automatically in their health care option with the lowest employee premium, unless the employee opts out or elects a different option.
6. Health care plans with dependent coverage must now cover children up to age 26 (if coverage isn’t available through their work) regardless of their marital status.
7. Pre-existing conditions are eliminated for children under age 19.
8. Life time limits on benefits are eliminated.
9. All new health plans must provide first dollar coverage for preventive services (no co-pays for preventive care visits).
10. The further creation of a temporary national high risk insurance pool.
11. Immediate tax credits for Medicare patients who face a gap in prescription drug coverage.
12. A national social insurance program that provides limited long term care coverage must be offered to employees through automatic enrollment procedures. The premium cost of this program can be charged to employees.
Reference: SHRM article by Bill Leonard 3/23/2010. Does the Health Reform Law Really Create an Employer Mandate? and SHRM article 4/7/2010. Health Care Reform: Employer requirements at a Glance.
If you have questions about the impact of this legislation on your business please don’t hesitate to give me a call!
