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04/21/10 - HEALTHCARE REFORM UPDATE 4/21/10
Where We Are Now...
We know that many of you have questions about what the newly passed health care reform legislation, H.R. 3590, contains and how it will impact our firms and our employees. Leavitt Pacific Insurance Brokers, and our national association, NAHU, is working hard to provide our agency and our clients with the information and tools we need to better understand the changes and what we need to know moving forward.
The amount of information about the reform bills being released right now is staggering, and we feel that it is very important to make sure we analyze these measures thoroughly to help provide the best information to you, our clients. We ask that you keep in mind that the passage of this legislation is just the beginning point, and the implementation and regulatory processes surrounding these measures will take years.
We will continue to bring you updates as the rules are further clarified.
What This Means To Employers Today...
For Employers during the month of April, no action is required. The earliest plan requirement is to be in effect within 6 month.
MAXIMUM ELIGIBILITY WAITING PERIODS FOR HEALTH INSURANCE:
Within six (6) months, employer groups with a waiting period for health benefits that exceeds 90 will have to change in order to be compliant with the new rules. The new maximum waiting period is 90 days This will entail changing not only your health plan contracts, but also your Employee Handbooks and ERISA wrap documents and any other contracts or materials that reference your eligibility/waiting period for health benefits.
OLDER DEPENDENTS ON PLANS:
Also effective within 6 months is a new rule that allows dependents to stay under parental coverage on a group health plan until age 26, regardless of student status. It is unclear if employers are required to survey their employees to solicit these dependents and their enrollment. We will continue to monitor and post information on our Healthcare Reform website.
Additional Resources Available to You...
We are providing access to two charts that diagram the timeline for implementation of the law.
The first is a very detailed chart for your reference that explains how all of the new health insurance reforms in both the Senate bill and the reconciliation bill will impact private health insurance organized by effective date. The second chart is a simplified timeline that explains how both pieces of health care reform legislation will impact you as individuals and as employers.
Click here to download: Detailed Chart | Simplified Timeline
Visit our LPIB Healthcare Reform Update Website: Healthcare Reform
04/06/10 - HEALTHCARE REFORM 4/6/10
JOIN US FOR A WEBINAR...
Join us on Wednesday April 21, 2010 for a free webinar on Healthcare Reform Topics include...
- How the new law will affect both small and large employers
- Basics of state-based exchanges
- Explanation of medical loss ratios in the law (MLRs)
- Individual mandates
- Requirements of market reform
This is a presentation by The Leavitt Group of Companies and will be a nationwide event. Space is limited to sign up today!!!!!
Information will be presented by the Law Firm of Steptoe & Johnson of Washington, D.C.
Date & Time: Wednesday April 21, 2010 - 9:00AM to 10:00AM PDT
Click here to register: Healthcare Reform Webinar
Do you qualify for the Small Group Tax Credit?
Part of the helthcare reform law gives a tax credit to small employers that provide heathcare coverage to their employees starting with the tax year of 2010.
The IRS has prepared a simple three step worksheet to determine if you qualify for the Small Business Health Care Tax Credit.
Additional Resources Available to You...
We are providing access to two charts that diagram the timeline for implementation of the law.
The first is a very detailed chart for your reference that explains how all of the new health insurance reforms in both the Senate bill and the reconciliation bill will impact private health insurance organized by effective date. The second chart is a simplified timeline that explains how both pieces of health care reform legislation will impact you as individuals and as employers.
Click here to download: Detailed Chart | Simplified Timeline
Visit our LPIB Healthcare Reform Update Website: Healthcare Reform
10/30/09 - Medicare D Creditable and Non-creditable Spreadsheet
08/07/09 - Contractors Seminar on 8/27/09
03/23/09 - CHIPRA: New Employer Responsibilities for 4/1/09
President Obama signed a new law, H.R 2, on February 4, 2009 known as the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA). The new law is designed to expand medical coverage for uninsured children via state programs (such as Medi-Cal). However, there is one provision in the law that can affect employer offered health care plans.
CHIPRA contains a new state option to subsidize employer-sponsored health coverage that includes children. Employer sponsored plans are required to offer a new special enrollment to employees or dependent children who
- Lose coverage under Medicaid (Federal Plan) or a State Plan (such as California's Medi-Cal) or
- Become eligible for group health premium assistance under the Medicaid Plan or a State plan. Coverage must be requested no later then sixty (60) days after the qualifying event.
The state may pay the premium assistance subsidy as a reimbursement to the employee for out-of-pocket expenses or directly to the employer. Employers may opt-out of direct payment from the state, allowing direct payment to the employee. The employer could then charge the employee the full cost of coverage.
all employees of the program no later than April 1, 2009.
Notice Requirements:
The U.S. Department of Labor (DOL) will create model notices that employers who offer group health coverage must provide to employees notifying them of the premium assistance to Medicaid eligible persons. This notice must be given as of the first plan year, can be included in open enrollment/new enrollment materials or with the Summary Plan Description (SPD). Failure to supply the notices could result in a fine of $100 per day. Each employee or their beneficiary would be treated as a separate violation. Also, employers must provide notification to the state about their group health plans, including eligibility criteria, employer/employee cost sharing amounts, benefit plan coverage provisions, etc. This information is used to determine premium assistance and establish the level of state sponsored assistance required. Failure to provide information to the state could result in a fine of $100 per day.
Employer's To-do List:
- Work with your insurance carriers/brokers to amend existing group health plans to include the new special open enrollment rights and to assure they will pay benefits which are secondary to any Medicaid or State CHIP Plans when the plan participant receives premium assistance.
- Provide the required notification to all employees.
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