Healthcare Reform Summary
2010
Tax credits for small employers
(less than 25 employees, avg. non-owner wage less than $50k, firm paying >50%).
For plan renewals after September 23;
Children up to age 26 may stay on parents plan. Not always best choice.
No pre-existing conditions for children under age 19.
No longer will there be maximum lifetime coverage. Now unlimited maximum.
All health plans required to provide preventive services w/$0 co-pay. Includes
annual physical, well-woman exams, mammograms. Unsure if Birth Control to be included.
2011
Insurance companies will be required to spend, on medical services, 85% of the premium dollars they brought in. For individual market the ‘minimum loss ratio’ will be 80%.
Employers must show the value of their employees health benefits on their W-2’s.
New fees begin on pharmaceutical manufactures.
New federal Long-term Care program, employees automatically enrolled, can opt-out. ($123 p/month is $1,476 p/yr in premium, benefit is $60 a day. A fraction of total needs)
Mild clean up on H.S.A, HRA and FSA’s: over the counter medication no longer count, if you use this pre-tax money for other than legit medical items penalty has gone from 10% to 20%.
2013
To pay for a portion of health care reform some revenue generation/tax/fees kick in.
Medical devices (‘taxable’ ones) will have 2.3% surcharge added to cost.
Threshold for itemized deduction for unreimbursed medical expenses goes from 7.5% to 10% of Adjusted Gross Income.
Medicaid payroll tax expanded to dividend, interest and other unearned income for single filers earning $200,00 plus and joint filers greater than $250,000.
Annual contribution to FSA (not H.S.A) limited to $2,500 p/year, then CPI increase.
2014
Requires U.S. citizens and legal residents to have health care. Those w/out coverage will pay an annual penalty that is the greater of;
| |
Individuals |
Family |
2014
2015
2016 |
$95 or 1.0%
$325 or 2.0%
$695 or 2.5% |
$695 or 2.5%
$
$2,085 or 2.5% |
People between 133% and 400% of the Federal Poverty Limit will receive subsidies. Coverage must be purchased through the exchanges to receive these credits.
For companies w/ more than 50 employees further requirements to provide coverage.
If more than 200 employees than health care is auto-enroll, can decline coverage.
Annual maximums disappear
Under 100 employees deductibles can’t be higher than $2,000 indiv, $4,000 family—unless employer contributes a funds that offset higher deductibles.
New fees on health insurance industry, $8 billion in 2014, $14.3 billion in 2018
Employers can give rewards of nearly 50% (of the cost to participate in) wellness, physical, disease prevention programs.
2018
Cadillac tax on health plans that cost more than $10,200 for individuals or $27,500 for families.
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