With the House of Representatives passing the health reform bill and the President signing it into law many clients and employees are trying to determine how it will impact them. While many details are still being sorted through this is what we know if you have health insurance through work.
You will be able to keep your current plan, or in 2014 have the ability to purchase insurance through soon to be created state insurance exchanges.
Within 6 months plans will stop setting lifetime limits on coverage and allow children to stay on their parents plan until age 26. Insurance companies will be required to cover children with pre-existing conditions, but will be able to deny adults without prior insurance with pre-existing conditions until 2014.
Insurance companies will be forced to pay a 40% excise tax on high value group plans, but not until 2014.
In 2013 Flex spending accounts will have a reduced maximum of $2500 a year and over-the-counter medicines will be disqualified.
In 2018 those families making over $250,000 will pay more in Medicare payroll taxes and unearned income will be subject to a 3.8% tax.
In the state run exchanges you can buy subsidized coverage if you the employee pay more than 9.5% of your income to get insurance or if your employer's plan covers less than 60% of costs.
If you qualify for a subsidy and buy a plan that covers abortion you will pay a separate premium.
If your income for a family of four is less than $88,000 and your cost for insurance is between 8 and 9.8% of your income, you can get a voucher from your employer to buy insurance on the exchange.
Finally, most Americans would be required to buy health insurance.
For a comprehensive detailed review of all the provisions in the passed Senate Bill and the changes proposed int he Reconciliation Bill please go to the Kaiser Family Foundation website:
http://www.kff.org/healthreform/upload/housesenatebill_final.pdfA synopsis of a few major changes are outlined by Reuters here:
http://www.insurancejournal.com/news/national/2010/03/19/108294.htm
Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.
Mike Fallon, CPIA
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