Within the next 6 months:

• The new dependant age for non married children will be 26 versus 25 which it is currently in MN.

• No lifetime limits on coverage (most plans currently have a $5 million cap).
• Insurance companies will be barred from dropping people if they are sick.
• Insurance companies will be barred from excluding children up to age 18 for any pre existing conditions.
• Within the first 90 days the new law will reimburse employers for 80% of the cost of retiree health benefits in excess of $15,000 (up to $90,000) provided to retirees between the ages of 55 and 64.  This “reinsurance program” lasts until 2014.
• Beginning this year, employers with no more than 25 employees and less than $50,000 in average wages are eligible for a tax credit for employer-provided health coverage.  Through 2013, the tax credit is up to 35% of the employer’s contribution if the employer contributes at least 50% of the premium.  After 2013, available for two years, there will be a tax credit of up to 50% of an eligible small employer’s contribution for health coverage purchased through the Exchange.

Changes in 2011:

• Employers are required to report the value of the health benefits on employee’s w2’s.

• Tax free reimbursements (HSA, FSA and HRA) will be prohibited from covering over the counter drugs.

• Flexible Spending Accounts (FSA) will be limited for medical expenses to a maximum of $2,500 (the reconciliation bill could extend this to 2013).

Changes in 2012:

• The threshold for claiming medical expenses on itemized tax returns is raised to 10 percent from 7.5 percent of income. The threshold remains at 7.5 percent for the elderly through 2016.

Changes in 2013:

• Effective Jan 1 2013 the payroll taxes on Medicare will go up 2.35% from 1.45% for individuals earning $200k or more or families earning $250k or more.

Changes in 2014:

• Insurance exchanges will be formed on a state level allowing individuals and small groups to pool together in hopes of getting better rates.

• All Individuals would be required to have coverage.  Those that do not have coverage will be subject to a 2.5% tax penalty on their income.
• Federal subsidies will be provided to help people subsidize the cost of health insurance if individuals are under 400% of the federal poverty level..
• Health plans will no longer be able to exclude individuals for pre existing conditions..
• Employers with more than 50 employees will be required to offer health care coverage to employees or pay a penalty..
• Waiting periods for health plan eligibility cannot exceed 90 days..

Please remember that the information above is subject to change or modify with a passed reconciliation bill. Many of you have asked about the exchange and how a role as your broker will be modified or change. The Senate bill does allow individuals and groups to continue to work with agents like ourselves. We will be able to continue to provide you with the help and education that is needed to make informed decisions.  The new law and options will actually add another layer of confusion so please feel free to email us with any questions or concerns. We appreciate the opportunity to work with you and will update you as we hear more.

OTHER TOPICS

• Health Savings Accounts (HSA's)
• Adult Preventive Care
• Fast Facts
• REGISTER TO WIN