What You Need to Know About the New Healthcare Plan
The Affordable Care Act passed in 2010 passes sweeping healthcare reform and regulations and employers need to be aware of the numerous deadlines imposed by the law. A few of the more notable deadlines include (but are not limited to) the following:
2010
In 2010, small businesses (those with 25 or fewer employees) may be eligible for a tax credit of up to 35 percent of employer health insurance costs. The actual amount varies based on employer size and employees' average income.
2011
Effective January 1, 2011, reimbursements from flexible spending accounts (FSAs) and health reimbursement accounts cannot be made for any medicine obtained without a prescription.
Also effective January 1, 2011, employers will be required to permit employees who desire to participate in the new federal long-term care insurance option, known as the Community Living Assistance Services and Supports (CLASS) program, to make contributions by means of a payroll deduction.
2012
In 2012, covered employers will be required to submit reports on the quality of care in their health care plans to the U.S. Department of Health and Human Services, in addition to providing plan participants with a uniform summary of benefits (based on standards developed by the U.S. Department of Health and Human Services).
2013
Caps on the amount that can be directed to flexible spending accounts (FSAs) will kick in as of January 1, 2013. FSAs will be capped at $2,500 per employee. The $2,500 limit will be indexed for inflation for years after 2013.
Medicare taxes increase as of January 1, 2013. Costs for retiree drug expenses for which subsidies are received, cease to be deductible for the plan sponsor and also become taxable on that date.
2014
Auto enrollment must be available for employees of employers with more than 200 full-time employees.
Penalties on employers with more than 50 employees will be imposed if employers do not offer health coverage and have at least one full-time employee receiving a subsidy for health care coverage. Other penalties apply to employers that offer health coverage if at least one full-time employee receives a subsidy.
Employers must offer a free choice voucher for qualifying employees whose premium share for the employer health care plan falls between 8 to 9.8 percent of the employee’s household income.