Congress has approved, and the President has signed, two pieces of legislation that create a brave new world for the provision of health care services in the United States, and which includes a number of significant changes to federal tax laws. The Patient Protection and Affordable Care Act (PPACA) and its companion bill, the Health Care and Education Reconciliation Act of 2010 (HCERA), will have a direct impact on virtually all Americans and American employers.
With this WorkCite, McGuireWoods is launching a series of communications in which we will focus on various aspects of PPACA and HCERA. The following briefly summarizes provisions of the new laws that will be of particular importance to employers and health plan providers. In future communications we will provide more detailed explanations of how the new laws will work; when they will come into play; what choices individuals, employers, and providers will have; and how the new laws will affect business. Many of these changes will require significant regulatory guidance (from a variety of agencies) and we will address that guidance in our future WorkCites on this topic.
Comprised of over 2,500 pages, the Act is detailed and complex. We anticipate that near-term future WorkCites on this topic will provide more details on effective dates for specific new requirements and on the implications of the Act for existing employer-sponsored plans, which the Act refers to as “grandfathered plans.”
This WorkCite provides an overview of PPACA and HCERA (we refer to them together as the Act). Please click here to read about these topics:
- Employer MandatesChanges in Lifetime and Annual Benefits and Waiting PeriodsDependent children coverage Play-or-Pay Mandate on EmployersPre-Existing ConditionsAutomatic Enrollment Excise Tax on “Cadillac” Health PlansAnnual Information Returns New Rules for Cafeteria Plans and other Healthcare Reimbursement ArrangementsWellness IncentivesNondiscrimination rules for insured health plansRetiree Medical
- Changes in Lifetime and Annual Benefits and Waiting Periods
- Dependent children coverage
- Play-or-Pay Mandate on Employers
- Pre-Existing Conditions
- Automatic Enrollment
- Excise Tax on “Cadillac” Health Plans
- Annual Information Returns
- New Rules for Cafeteria Plans and other Healthcare Reimbursement Arrangements
- Wellness Incentives
- Nondiscrimination rules for insured health plans
- Retiree Medical
- Participant MandatesIndividual MandateRefundable Tax CreditsFree Choice VouchersFree-Rider Mandate HSA Penalty IncreaseIncrease in Medicare Tax RateUnearned Income Medicare ContributionChanges to Medicare Advantage PlansClosing the Medicare Donut HolePortabilityCLASS Act (Long-Term Care Insurance)
- Individual Mandate
- Refundable Tax Credits
- Free Choice Vouchers
- Free-Rider Mandate
- HSA Penalty Increase
- Increase in Medicare Tax Rate
- Unearned Income Medicare Contribution
- Changes to Medicare Advantage Plans
- Closing the Medicare Donut Hole
- Portability
- CLASS Act (Long-Term Care Insurance)
- Provider Mandates
- No Cancellation of Policies
- Health Insurance Exchanges
- Other Insurance Market Reforms
- Small Business Health Option Programs
- Fees and Taxes
- No Cancellation of Policies
- Health Insurance Exchanges
- Other Insurance Market Reforms
- Small Business Health Option Programs
- Fees and Taxes
- Tort Reform
For additional information or help analyzing the impact of the Act, please contact any member of the McGuireWoods’ Employee Benefits Team.
Visit the Healthcare Reform section for additional updates and resources.