Healthcare Reform: How Will It Impact Your Shop?

Posted 11/11/2010
By Dudley Bain

The medical insurance industry has closely monitored health insurance reform on the national level for the last two years during the Obama administration and its push on changes in national health care.

Signed into Law - The Patient Protection and Affordable Care Act (PPACA) was signed into law March 23, 2010. Originally it was 2,000-plus pages, but it has grown into more than 10,000-plus pages, leaving many employers looking for answers. These changes will impact all businesses and many employers are left wondering "How do I get and stay informed" and "How does this affect my automotive business?"

This Healthcare Reform Law will affect your automotive business and you need to seek reliable, qualified resources to guide you, the employer, with information on what is expected of your company. You may subject your company to certain penalties or fines, which are written in the current PPACA, if you do not address these changes and equip yourself with the tools to reference these implementation dates and regulations.

ASA Shop Owners - The following topics and resource references are available for you by visiting www.bcnw.com/getinformed.

Small Business Tax Credits (IRS link & video)

The credit is worth up to 35 percent of a small business' premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers). A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible). www.irs.gov

Flexible Spending Account (FSA) Changes for 2011

FSAs will be affected as the IRS takes aim at qualifying health care expenses. Effective Jan. 1, 2011, distributions from an FSA will only be allowed to reimburse the cost of prescribed medicines or drugs. Currently, over-the-counter (OTC) medicines and drugs can be reimbursed without a prescription and this will continue through the end of the year.

New W-2 Reporting Requirements in 2011

Beginning in tax year 2011, employers will be required to report the aggregate cost of employer-sponsored coverage they provide to each employee on their annual W-2 form.

Group Plan Benefit Changes

All group health plans, even grandfathered ones, are subject to the following benefit changes:

• Unlimited lifetime maximum

• Dependent coverage to age 26

• No pre-existing condition exclusion for children under age 19

• Removal of restricted annual limits.

Although this article may not encompass all the information you need to know about health care reform, we encourage you to visit our site: www.bcnw.com/getinformed. Changes are taking place every day, so be sure to visit often for the most up-to-date information.

Dudley Bain is the owner of Benefit Consultants Northwest. He can be reached at dudley.bain@bcnw.com. BCNW has partnered with ASA to offer medical insurance benefit programs, service and consultation to ASA members for more than 10 years. To reach the ASA National Medical Call Center, call (866) 422-3393.