Healthcare Reform 2011: The Good, the bad and the ugly

The good, the bad and the uglyThe good, the bad and the uglyHealthcare Reform in 2011:Healthcare Reform in 2011:

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Health Care Reform Current IssuesHealth Care Reform Current Issues

Implementation will occur in three waves• 2010• 2011-2013• 2014 +

Court Cases• 26 states have filed suit• Equal protection under the law• Commandeering

House repeal- What’s it mean• Ongoing debate

New Changes in Healthcare Reform New Changes in Healthcare Reform

National Coverage Requirement (2014)•Pros

•Access to health insurance•Ability to change jobs•Open competition and increased transparency

•Cons•Effects on computer systems•Federal money disappears (2014)•Different states, different rules•Fines and penalties

•Year 1: $95•Either $695 or 2.5% of a person’s income

End of preexisting conditions•Initially only applies to children•Extended to adults (2014)

FSAs/HSAs/HRAs•Over the counter medications•20% tax penalty•Maximum contributions of $2,500 to FSA (2013)

New Changes in Healthcare Reform (Cont)New Changes in Healthcare Reform (Cont)

2011-2018: Employers are Going to Feel the Impacts of 2011-2018: Employers are Going to Feel the Impacts of Healthcare ReformHealthcare Reform

Implications for EmployersImplications for Employers

Coverage for dependents up to 26 years old

1099 tax provisions for employers•Transactions of $600 +•Why hasn’t this been repealed?•$17Billion-$19 Billion

Tax credits for small businesses•Form 8941•Eligibility requirements

•Average annual wages under $50,000•Less than 25 full time employees•Employers must cover at least 50% of the cost

W-2 requirements of value of health benefits•Cadillac Taxes

•$10,200 per individual or $27,500 for families•40% excise tax•Verizon: $255 million per year

Pay or Play: employers with 50+ employees•Fines•Full time employee?•Affordable?•Employer must pay 60%+•Employees that use exchanges: $250 fine

Implications for Employers (Cont)Implications for Employers (Cont)

Implications for Employers (Cont)Implications for Employers (Cont)

AT&T•Savings of $1.8B“87% think they will continue to offer health care benefits because they are critical to employee recruitment, retention and remaining competitive.” –IFEBP

“Nearly 65% of the largest employers strongly disagree that it would be better to pay fines.” – Workforce

“45% would drop coverage or consider options based on other employers’ actions” – Hewitt

Ongoing Debate and evolution of health coverage during next decade

Question & AnswerQuestion & Answer

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