WHAT'S NEW
JC Rose to co-sponsor FREE Seminar September 15, 2010 regarding Health Care Reform
With the advent of recent health care reform, employers like you have a lot of questions:
How will this affect us now?
How should we prepare for the future?
What changes do we need to make in our plan?
We are committed to assisting you in understanding the changes that will affect your business both short and long term. That is why we are inviting you attend one of two FREE seminars September 15th 11:45 -- 1:30 p.m. The seminar will be held at Community Business Bank which is located at 1111 Sycamore St. in Sauk City.
Employee benefits advisor Barbara Schlaefer of JC Rose Associates and Julie Miller, Miller Tax and Accounting will educate you on how employer groups and individuals will be affected by:
· Tax credits for small employers
· Penalties for non-compliance for individuals and group
· Lifetime limits, pre-existing conditions and dependent coverage
· High-risk pool coverage
· Wellness plan credits
· Cafeteria Plan changes, including caps on contributions and restrictions on reimbursements
· Long-Term care program
· Additional taxes
· Administrative impacts on your business
· Health Care Exchanges
To register:
Call Community Business Bank at 1-877-839-6301
or
Email: bbreunig@cbbwi.com
Health Care Reform: What will it mean to you?
By: Barbara Schlaefer
JC Rose Associates
As most are aware, on March 23, 1010 President Obama signed into law the health care reform bill, the Patient Protection and Affordable Care Act. This legislation makes sweeping changes to our health care system, with the changes being implemented over the next several years.
Much attention in the press has been made over the passing of the bill, yet many questions are still being asked. What are the changes? When do the changes start? How does it affect my health care? How does it affect my business?
As your insurance advisors, we have put together in a time line format, the changes as they currently stand. Please keep in mind that with all things governmental, these are all subject to change, and there are still certain definitions we are patiently waiting for clarification on.
As these changes and clarifications are made, we will certainly pass that information on toyou.
2010 The health care reform law contains some provisions designed to provide some immediate changes to health insurance access
· Extended Coverage for Young Adults: Group & individual health insurers must make coverage available for adult children up to age 26. This is actual something Wisconsin had already mandated.
· Access to Insurance for Uninsured Individuals with Pre-Existing Conditions: Establishes a temporary high-risk pool to provide health insurance coverage for uninsured individuals with pre-existing conditions. This is something Wisconsin has already had in place as the Health Insurance Risk Sharing Plan.
· Eliminating Pre-Existing Conditions Exclusions for Children: Insurers may not impose pre-existing condition exclusions on coverage for children. This applies for group & individuals plans. The provision will also apply to adults in 2014.
· Limits of Lifetime: Insurers may not establish lifetime limits on group or individual health insurance policies.
· Small Business Tax Credit: The first phase of tax credits for qualified small employers begins in 2010. The credit is retroactive and will apply to premiums paid in taxable years beginning after December 31, 2009. This credit will give certain qualified small employers who have no more than 25 full-time equivalent employees, pay average annual wages of less than $50,000 and provide qualifying coverage (among other criteria), a maximum tax credit, based on number of employees, of up to 50% of premiums for up to two years if the employer contributes at least 50% of the total premium cost.
2011
· Reporting Health Coverage Costs on W-2 Forms: Beginning in 2011, employers will be required to disclose the value of the health coverage provided by the employer to each employee on the annual W-2 form.
· Standardizing the Definition of Qualified Medical Expenses: Conforms the definition of “qualified medical expenses” for HSAs, FSAs and HRAs to conform with the itemized tax definition. Over-the-counter medicine with a prescription would qualify as a medical expense, while costs for over-the-counter medications obtained without a prescription would not.
· Cafeteria Plan Changes: The new law creates a Simple Cafeteria Plan through which small businesses can provide tax-free benefits to their employees. This is designed to ease the admin burden of sponsoring such a plan.
· Increased Tax on Withdrawals from HSAs for Non-Qualified Medical Expenses from 10% to 20%
2013
· Limits on the Amount of Contributions to Health FSA’s to $2500
2014
· Individual Coverage Mandates: The passed legislation requires most individuals to obtain acceptable health insurance coverage or pay a penalty. The penalty will start at $95 per person and increase each year: $235 in 2015 and up to $695 in 2015.
· Employer Coverage Mandates: Employers with 50 or more employees that do not offer coverage to their employees will be subject to penalties
· Health Insurance Reform: Insurers may not refuse to sell or renew policies due to an individual’s health status, or exclude coverage for treatments based on pre-existing health conditions.
· Fees & Taxes
Individual Health Care Tax Credits: Credits available to ensure people can obtain affordable coverage
Small Business Tax Credit: The 2nd phase of small business tax credits for qualified small employers will be implemented in 2014. These employers can receive a credit for contributions towards employee premiums, up to 50% of the premiums.
