VIEWS: 8 PAGES: 1 POSTED ON: 5/6/2012
Health Care Reform – Overview On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA), making health reform certain and expanding coverage to many Americans over the next several years. At this point, it’s difficult to gauge the exact impact of this law on The College of Idaho, and our employees, since many provisions are not effective until a few years down the road. This update provides information as we understand it today. The College of Idaho offers health care coverage to almost 177 employees and their families at a total cost of approximately 1.6 million dollars per year. We anticipate that health care reform will have some impact on our health care offerings and/or costs, and will keep you updated as we have more information. Here are some changes in the law that will affect our plans: Beginning with our plan year that starts January 1, 2011: Dependent children will be eligible for coverage until their 26th birthday, as long as they do not have access to other employer coverage. This provision applies even if your child is married, whether or not your child attends school full-time or lives with you, and applies even if your child is not your tax dependent. The plan will remove any caps on lifetime limits on most benefits, and some changes may be made to annual dollar maximums on certain benefits. Pre-existing condition exclusions for children under age 19 will be eliminated; these exclusions will be eliminated completely beginning in 2014. These new provisions enhance some of the benefit features of our plans, and yet will also cost The College of Idaho money. In addition, you may experience some cost impacts based on some new provisions of the legislation. For example, starting January 1, 2011: If you participate in a Health Flexible Spending Account (FSA), a Health Reimbursement Account (HRA) or a Health Savings Account (HSA), you will only be able to use money in your account for those drugs that are prescribed by a health care provider, or for insulin; over-the-counter drugs will no longer be covered. If you have an HSA and use the money for nonqualified expenses, you will pay a 20% penalty (instead of today’s 10% penalty). Other provisions set to take effect over the next several years may also have an impact on our costs and coverage. Some of the provisions you may have heard the most about — for example, a mandate that everyone have health insurance and help for low-income people to buy insurance — don’t take effect for at least three years. We will continue to follow the legislative process closely and will keep you informed as we have more information and have analyzed the impact to our employees and the company.
Pages to are hidden for
"Health Care Reform Overview"Please download to view full document