Click here to read article

Click Here To Read Article<

Please click below to view key provisions of the Patient Protection and Affordable Care Act (PPACA) that will become law on September 23, 2010.  These provisions will be made effective upon your group’s next renewal date.

September 23 Provisions

Click Here to Read Article

ObamaCare Strikes Out With Workers

Small Business Health Care Tax Credit – You May Qualify!

The new health reform bill will give a tax credit to certain small employers that provide coverage to their employees.  You may qualify for a tax credit if 1) you are a business with no more than 25 full time equivalent employees (FTEs) 2) the average annual wages of your employees for the year are less than $50,000 and 3) you contribute at least 50% of the annual premium on behalf of your employees.

You may receive up to a 35% tax credit.  The credit also applies to tax exempt organizations (up to 25% credit).  This tax credit is for tax years 2010 through 2013. It is important to note that the tax credit offsets any deduction the employer could otherwise take for the employer contributions to pay for health care.

The IRS will be sending a post card to small employers to notify them of the tax credit program.

Please click here to read more about the tax credit program administered by the IRS.

Please be sure to call or email us for further guidance regarding the tax credit program or with questions about the recently passed Federal Health Care Reform Bill.

Please feel free to call or email us to discuss the various aspects of the new health care reform bill.

Coverage Highlights:

• Pre-Existing conditions for dependent children (under 19 years of age) will be eliminated (2010)
• Dependent age status will mandated to age 26 (2010)
• Lifetime benefit limits will be prohibited (2010)
• All Pre-existing conditions will be eliminated.  Regulations will be imposed on all health plans that will prevent health insurers from denying coverage to people for any reason, including health status, and from charging higher premiums based on health status and gender. (2014)
• Insurance Companies must maintain a 80% medical loss ratio (MLR) for small businesses and individuals (2011)
• Small businesses (less than 25 FTEs) may qualify for a premium tax credit for the employer share of the premium. (2010)
• Health Insurance Exchanges will be established for individuals and small businesses.  The exchanges must be self-sustaining and will be State-run.  (2014)
• Medicaid will be expanded to 133% of the FPL ($14,404 for an individual and $29,327 for a family of four in 2009) for all individuals under age 65.  (2014)

Business and Individual Penalties Highlights:

• There is no employer mandate, but employers with more than 50 employees will be assessed a fee of $2,000 per full-time employee (in excess of 30 employees) if they no not offer coverage and if they have at least one employee who receives a premium credit through an exchange.  Employers that do offer coverage but have at least one employee who receives a premium credit through an exchange are required to pay the lesser of $3,000 for each employee who receives a premium credit or $2,000 for each full-time employee.
• Individuals who choose to remain without coverage will be penalized the greater of : $95 in 2014, $325 in 2015, $695 in 2016 and thereafter or a penalty based on income (1.0% in 2014, 2.0% in 2015 and 2.5% in 2016 and thereafter).

Pay-For Highlights:

• Annual fee on Health Insurers ($8 billion in 2014, $11.3 billion in 2015 and 2016, $13.9 billion in 2017, $14.3 billion in 2018, and $14.3 billion thereafter (indexed to medical cost inflation).  This will be passed onto all insureds by the health insurance companies. (2014)
• 2.2% tax on medical device manufacturers. (2011)
• $2.4 billion annual fee (estimated) on pharmaceutical manufacturers. (2011)
• 40% excise tax on “Cadillac” plans.  “Cadillac” plans will be valued at $10,200 for single coverage and $27,500 for family coverage (will be adjusted for inflation). (2018)
• High Earner Tax (Medicare FICA Tax) will equate to an additional 3.8% (.9% for earned income and 2.9% for unearned income (including income from interest, dividends, annuities, capital gains, royalties and rents).  High Income Earners will be defined as $200,000 for singles and $250,000 for married couples. (2013)
• FSA Contributions for medical expenses will be limited to $2500 per year. (2013)
• Tax on distributions from a HSA that not qualified will increase from 10% to 20%. (2011)
• OTC drugs will no longer be reimbursable under HSAs.