We may not all be happy about it, but health care reform is the new law and we will work with the hand we have been dealt. The new law will be bring many new changes with government mandates.
Our firm is diligently working on the changes that will come to small business owners withunder 50 employees, we will be here to help. In the coming months, there will be a full analysis of currentgroup healthplans in place so as to stay incompliance. We also want to make you aware of the tax credits available in 2010 and the new mandates that take effect this year.
New Mandates Effective Immediately:
1.Individuals and employer group plans that wish to keep their current policy on a grandfathered basis can only do so if the only plan changes made are to add or delete new employees and any new dependents. In addition, an exception is made for employers that have scheduled plan changes as a result of a collective bargaining agreement. Once a plan loses its grandfathered status, it will be subject to all of the market reforms in the legislation when they take effect, regardless of where coverage is purchased (either through an exchange or outside of an exchange). However, most of the market reform provisions slated to take effect in the next six months will apply to all plans, whether or not they hold grandfathered status.
2.Eligible small businesses (those that have no more than 25 FTEs, pay average annual wages of less than $50,000 and provide qualified coverage) are eligible for phase one of the small business premium tax credit. Small employers will receive a maximum credit, based on number of employees, of up to 50% of premiums for up to two years if the employer contributes at least 50% of the total premium cost.
3.Employers that provide a Medicare Part D subsidy to retirees will have to account for the future loss of the deductibility of this subsidy in 2013 on liability and income statements. While the elimination of the deductibility does not take effect until 2013, there could be an immediate accounting impact.
I will send you future email updates with detail explanations of each mandate and change as it is explained by the administration. I have been attending almost daily webinars and meetings in regards to these changes so our firm can be at the forefront of these historic changes.
If you are a client of the firm and we do not currently manage your group health insurance account, please contact us immediatelyso we may email youthe BOAR approval process form. We will actively monitor all clients accounts and ourservice offeringswill expand over theyears to keep your business in federal and state compliance.