Health Care Reform: 2010 Human resouRces Implications

The landmark health care reform law that was passed this year will undoubtedly affect how businesses provide and administer health care benefits to their employees. The implications for human resources professionals include everything from compliance to reporting to specific employee coverage.

Although many provisions of the legislation will not take effect until 2014, there are a number of requirements that will take effect this year. Because of this, HR professionals must understand the coming changes and be prepared to implement them, as well as communicate those that affect employees to their staff.

Changes that impact employers in 2010, and are the employer’s responsibility to implement:

  • Tax credits for qualifying small businesses are available to assist employers with premium costs

  • Section 105(h) Nondiscrimination rules regarding highly compensated individuals applies to new fully–insured plans

Changes that impact employers in 2010, but will be the insurance carrier’s responsibility to implement:

  • Elimination of pre–existing condition exclusions for children

  • Allowing dependents to remain on parents’ policies up to age 26

  • Prohibitions on lifetime benefit spending limits and restrictions on annual limits

  • Certain care required to be covered with no cost–sharing requirements under new plans, including preventive care

  • Prohibition on rescissions of coverage, except in cases of fraud or intentional misrepresentation (N/A - already exists in North Carolina)

  • New appeals process required for new plans (N/A - already exists in North Carolina)

Looking ahead to employer responsibilities as of January 1, 2011

  • Enroll employees in the CLASS Act federal long–term care insurance through voluntary payroll deductions

  • Report the aggregate value of health benefits on W–2s

  • Notify your employees of the penalty tax on individuals for spending HSA funds on non-qualified medical expenses increases to 20–percent

  • Notify your employees that over–the–counter medications no longer a qualified medical expense for FSAs, HSAs or HRAs without a prescription, unless insulin

As officials continue to define the intent of the Patient Protection and Affordable Care Act, and the Secretary of HHS defines many of the provision details still “to be determined;” TriSure will keep you informed of developments concerning employers as they occur.

Watch for invitations to future TriSure Education Series that will help businesses stay compliant with the rules of health care reform.

Should you have any questions or concerns, please don’t hesitate to contact your TriSure Benefits representative.