On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act, which we call Healthcare Reform. This legislation, along with the Health Care and Education Reconciliation Act of 2010, makes sweeping changes to the U.S. healthcare system.
With over 900+ pages, Healthcare Reform can often be daunting and very confusing. What mandates affect your business? When do they go into effect? Will this change my current healthcare group plan, and if so, how?
We will clarify the law, explain how it affects you, and help you find the best way to comply with new individual and employer mandates.
We value both our current clients and our prospective ones. As such, we welcome the trust you place in us as we keep you informed of Healthcare Reform changes.
Healthcare Reform as of January 1, 2011
Additional W-2 reporting:In October, the IRS announced that the requirement to report aggregate cost of coverage under a group-sponsored health plan on form W-2 will be deferred. Employers will now have the option to report (or not) in 2011. Hopefully, we will see more guidance on this in 2011, but be sure to contact your accountant about this mandate.
No pre-tax reimbursements for members on over-the- counter medications: Account holders will stop receiving pre-tax reimbursements from their FSA, HRA, HSA or Archer MSA for non-prescribed, over-the-counter medications.
Tax increase on non-qualified HSA withdrawals: The excise tax for non-qualified HSA withdrawals will increase from 10 percent to 20 percent.
Small employer grants: Small group employers that establish wellness programs can apply for grants for up to five years. This is effective for fiscal years 2011 through 2015.
If you have questions or would like additional information, please call Michelle Walters at (260) 484-7010 or email her at: email@example.com.