HEALTHCARE
AGRICULTURAL COUNCIL OF ARKANSAS (ACA) |
EMPLOYERS FACE MASSIVE CHANGES
UNDER HEALTH CARE REFORM LAW
The Patient Protection and Affordable Care Act, signed by President Barack Obama on March 23, ushers in a swath of changes to employer-
sponsored health care plans---one of the biggest being a new coverage mandate for employers. Starting in 2014, the legislation requires
employers with more than 50 employees to offer affordable coverage to their workers or face a tax of $2,000 per full-time worker (although the first
30 employees would be excluded from the count). The smallest employers---those with 10 or fewer full-time workers and paying annual wages of
$25,000 or less---can receive the maximum credit of 35 percent of premiums paid in 2010. The maximum credit for tax-exempt companies is 25
percent of premiums paid. In 2014, the maximum credits rise to 50 percent and 35 percent for nonexempt and exempt businesses, respectively.
In 2013, the law eliminates the employer deductible subsidy under Medicare Part D and places a $2,500 annual cap on flexible spending accounts.
In 2014, the law calls for the states to create exchanges to facilitate the sale of plans to individuals who aren’t enrolled in an employer’s plan and
prohibits insurance companies from denying coverage for preexisting conditions.
While many of the law’s complex provisions won’t become active for years, others will have an effect on employers’ plans sooner rather than
later. According to an analysis by United Benefit Advisors (UBA), some of these provisions are:
Immediately
* The federal government provides a tax credit for qualified small employers. This credit is retroactive for premiums paid in taxable years
beginning after December 31, 2009.
* Employers who wish to keep their policy on a grandfathered basis can do so, but only if they make no changes to the plans except for adding
and deleting employees and dependents.
* The limit for employer-sponsored assistance for adoptions increases to $13,170, and the credit is extended through 2011.
Beginning Six Months After Enactment
* Insurance companies will be prohibited from canceling coverage except in cases of fraud.
* Lifetime benefit limits will be abolished.
* Plans must cover dependents up to age 26 (For grandfathered plans, this applies only to dependents that do not have another source of
employer-sponsored coverage until 2014.)
* Small businesses that develop wellness initiatives will be eligible for grants for up to five years.
* Plans will be required to cover preventive care at no cost.
The final regulations and disclosure requirements for this new law remains weeks---if not months---away. Even as employers begin to plot a new
course under the umbrella of health care reform, it could be the employer might be best served by not making any rash decisions immediately.
BRAVO! ASSOCIATION BENEFIT SOLUTIONS
In the effort to assist our members to work through the new health care reform, we have formed a relationship with Bravo! Association Benefit
Solutions. You now have an alternate employer healthcare provider with knowledgeable personnel to help you work through current government
healthcare regulations.
As we struggle to understand the new health care reform, “The Patient Protection and Affordable Care Act” of 2010, the Agricultural Council of
Arkansas (ACA) is very excited to bring to our members a health benefits plan through our association. Your company’s participation is key to
making this endeavor successful.
We are pleased to make available a newly formed Health Insurance Purchasing Group [HIPG] named BRAVO. BRAVO is partnering with
Stephens Insurance, LLC to provide an array of health benefit plans exclusive to association members.
Under the HIPG, using QCA Health Plan, Inc. (QualChoice) as the group health benefits provider, BRAVO offers an array of plans to eligible
employers having 1 to 199 eligible employees. Other non-HIPG products, such as dental, vision, life and disability insurance coverages are also
available through Stephens Insurance, LLC.
This program will allow any employer ACA member in good standing to be eligible, as long as the employer meets the qualifications as indicated
by the HIPG.
Please access more information by going to the BRAVO website, which is www.myBRAVObenefits.com. The password is bravo. You can contact
representatives toll free at 800-852-5053 or e-mail address, bravo@stephens.com.
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