Health Care Presentation


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Health Care Presentation

  1. 1. IMPACT OF H.R. 3590 ON BUSINESS Steven R. Johnson Langhenry, Gillen, Lundquist & Johnson, LLC
  2. 2. Key Dates for Healthcare Reform <ul><li>Enacted March 23, 2010 as the “Patient Protection and Affordable Care Act” </li></ul><ul><li>Stated Goals: To extend coverage to 24 million by 2014 </li></ul><ul><li>To extend coverage to an additional 8 million by 2019 </li></ul>
  3. 3. What Will it Cost to Comply?
  4. 4. Understanding Immediate Impact <ul><li>The Three Important Questions: </li></ul><ul><li>Does Your Business Employ More Than 25/50/100 People? </li></ul><ul><li>Does Your Business Currently Sponsor a Health Plan? </li></ul><ul><li>When will the Secretary of HHS issue the implementing regulations? </li></ul>
  5. 5. What Are the Plan Requirements? <ul><li>True Answer: We don’t know until the Secretary of HHS issues the implementing regulations. </li></ul><ul><li>The Law says, “must meet actuarial requirements and cover all essential benefits”. </li></ul><ul><li>“Essential benefits” not defined. </li></ul>
  6. 6. What Are the Plan Requirements? <ul><li>Currently Sponsor a Health Plan </li></ul><ul><ul><li>You may qualify for tax credits covering up to 35% of the premium costs </li></ul></ul><ul><ul><li>Average workforce salary of less than $50,000 and less than 25 employees </li></ul></ul><ul><li>Employers 25-50 Not Eligible For Subsidy </li></ul><ul><ul><li>No Fine for Failing to Offer Coverage </li></ul></ul><ul><ul><li>If coverage offered, plan must meet federal standards or employees will be subject to individual mandate penalty </li></ul></ul>
  7. 7. What Do You Do to Comply? <ul><li>Find a Reputable Health Benefits Broker to Guide You </li></ul><ul><li>Stay Informed – Periodicals Like Crain’s Chicago Business and Business Insurance are great </li></ul><ul><li>Go to </li></ul>
  8. 8. Impact Timeline <ul><li>Phased Implementation & Understanding </li></ul>What could effect the timeline? 2010 2011 2012 2013 2014 2018 Initial Roll Out Final Regs Issued? True Impact
  9. 9. Is This a Done Deal? Stay Tuned <ul><li>November 2010 Elections </li></ul><ul><ul><li>Will House or Senate Change Hands? </li></ul></ul><ul><li>November 2012 Elections </li></ul><ul><ul><li>Will President Obama win re-election? </li></ul></ul>
  10. 10. Is This a Done Deal? Stay Tuned <ul><li>Litigating the Health Care Bill </li></ul><ul><ul><li>Currently 20 States have sued </li></ul></ul><ul><li>Litigating Regulations </li></ul><ul><ul><li>Massachusetts as a Guide </li></ul></ul>
  11. 11. Changes Effective September 2010 <ul><li>All New Health Plans </li></ul><ul><ul><li>Must Prohibit Lifetime Limits </li></ul></ul><ul><ul><li>No Exclusions for Pre-Existing Conditions </li></ul></ul><ul><ul><li>First Dollar Coverage for Preventative Services </li></ul></ul><ul><ul><li>Non-dependent children covered to age 26 </li></ul></ul><ul><ul><li>Insurers cannot rescind policies upon illness </li></ul></ul>
  12. 12. Changes Effective in 2011 <ul><li>W-2 Reporting Requirements </li></ul><ul><li>HSA & FSA Limits </li></ul><ul><li>Brand Name Drug Tax </li></ul><ul><li>HSA Penalty – 20% on “non-qualified purchases” </li></ul><ul><li>CLASS payroll deductions begin </li></ul>
  13. 13. Changes Effective 2011 <ul><li>1099 Reporting – Business Required to complete forms for all transactions in excess of $600 </li></ul><ul><li>Medicare Advantage Payments Frozen </li></ul>
  14. 14. Changes Effective 2013 <ul><li>Elimination of Medicare Part D Subsidy </li></ul><ul><li>Fewer Deductions for Medical Expenses </li></ul><ul><li>Increase to Medicare Payroll Taxes </li></ul><ul><li>FSA Contributions limited to $2,500 </li></ul><ul><li>Medical Device Tax Effective </li></ul><ul><li>“Comparative Effectiveness Tax” </li></ul>
  15. 15. Changes Effective March 2014 <ul><li>State Health Care Exchanges must be in operation </li></ul><ul><li>Insurers cannot refuse to sell, change or renew policies because of health status, gender or other factors </li></ul>
  16. 16. 2014 Changes Continued <ul><li>Benefits Package Defined </li></ul><ul><li>Individual Mandate in Effect </li></ul><ul><li>Employer Mandate in Effect </li></ul><ul><li>Premium Credits to Individuals in Exchange becomes effective </li></ul><ul><li>Medicaid Eligibility Expands </li></ul>
  17. 17. 2014 Changes Continued <ul><li>Group Health Plan Prohibitions Become Effective </li></ul><ul><li>Annual Fee on Health Insurance Providers Becomes Effective </li></ul>
  18. 18. 2015 Changes <ul><li>Independent Payment Advisory Board (IPAB) Established </li></ul><ul><li>Congress MUST adopt IPAB recommendations OR pass laws with equivalent savings </li></ul>
  19. 19. 2016 to 2018 Changes <ul><li>Interstate Health Choice Compacts to be established and operating in 2016 </li></ul><ul><li>Large Employers in Health Care Exchanges in 2017 </li></ul><ul><li>“Cadillac” Health Tax in 2018 </li></ul>
  20. 20. Thank You Wheaton Chamber <ul><li>Steven R. Johnson </li></ul><ul><li>Langhenry, Gillen, </li></ul><ul><li>Lundquist & Johnson LLC </li></ul><ul><li>310 S. County Farm Road </li></ul><ul><li>Suite A </li></ul><ul><li>Wheaton, IL 60187 </li></ul><ul><li>(630) 653-5775 </li></ul>