Healthcare Reform

Medicare and the New Health Law - What It Means to You

The new law contains some important new benefits to help seniors and others who are caught in the coverage gap. To learn more about the Affordable Care Act and these new benefits through Medicare, visit http://www.medicare.gov/Publications/Pubs/pdf/11467.pdf

Medicare Part D Coverage Gap "donut hole" Rebate

Most beneficiaries enrolled in a Part D plan whose income is too high to qualify for the "Extra Help," but who enter the donut hole in 2010, will receive a one-time, tax-free rebate check of $250 to help out with high prescription drug costs thanks to the Affordable Care Act. The Affordable Care Act provides a one-time $250 rebate in 2010 to assist Medicare Part D recipients who have reached their Medicare drug plan's coverage gap. These $250 checks will begin to get mailed out to eligible beneficiaries on June 10 and will be sent to beneficiaries soon after they enter the coverage gap. For more information on how to get your rebate check, log on to http://www.medicare.gov/Publications/Pubs/pdf/11464.pdf .

DOL's Updated Posting on the Extension of Adult Children Coverage

The Department of Labor's Employee Benefits Security Administration has posted the following information on the extension of coverage for adult children under the Affordable Care Act

The regulation, available at http://www.dol.gov/ebsa/pdf/dependentcoverage.pdf

DOL Fact Sheet can be obtained at http://www.dol.gov/ebsa/newsroom/fsdependentcoverage.html

FAQ (Frequently Asked Questions) can be obtained at http://www.dol.gov/ebsa/faqs/faq-dependentcoverage.html

First round of healthcare reform guidance has been issued

Notice: The first round of reform guidance was issued on 4/28/2010 by NOTICE 2010-38 dealing with Tax-Free Employer-Provided Coverage for Dependents. It is important to understand that this notice primarily addresses the new tax treatment of adult dependents under health plans - -the focus is not on the new mandate on plans that provide dependent coverage. That mandate to provide coverage is separate and applies to children up to age 26.

Learn more about the Affordable Care Act Tax Provisions by visiting the IRS.gov website and read the news release and the detail on these tax provisions.

Reinsurance Program for Early Retirees

On June 23, 2010 the Early Retiree Reinsurance Program of the Patient Protection and Affordable Care Act (PPACA) PPACA became effective. The program ends the earlier of January 1, 2014 or when program funds are exhausted.

The early retiree reinsurance program provides $5 billion for temporary financial help for employer plans to continue to provide valuable coverage to certain retirees

Payments will be made to sponsors of employer-sponsored health plans on behalf of an early retiree (and his or her spouse, surviving spouse, and dependents). An "early retiree" is defined as an individual age 55 and older that is neither an active employee nor eligible for Medicare and is covered under an employer-sponsored early retiree health plan.

For each early retiree (and his or her spouse, surviving spouse, and dependents), the employer plan may receive up to 80% of costs, minus negotiated price concessions, for health benefits between $15,000 and $90,000. Plans must use these proceeds to lower health costs for enrollees (e.g., premium contributions, copayments, deductibles, etc.).

To receive assistance, plans must apply to the program and receive approval by Health and Human Services (HHS). Applications are reviewed and approved or denied on a first-come-first-served basis.

Employers who extend group health insurance to their pre-Medicare retirees and wish to apply to the program, can find more information at the following link: http://www.hhs.gov/ociio/regulations/errp/index.html.

Small Business Health Tax Credit

This new credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low- and moderate-iincome workers. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit iis available to small employers that pays at least half the cost of single coverage for their employees. To learn more about the Small Business Health Care Tax Credit for Small Employers, visit http://www.irs.gov/newsroom/article/0,,id=223666,00.html.