10 Things Every Employer Should Consider About Health Reform

While there are over 2,000 plus pages of rules and regulations associated with health care reform we have created a listing that will help identify some of the most important items employers should pay attention to over the next several years.

Tax Credits for Small Employers

Employers with fewer than 25 employees and average annual wages of less than $50,000 may claim a tax credit for the cost of providing insurance beginning on their 2011 tax return. For 2010, the credit is 35% of cost.

Dependent Coverage

Health plans that cover dependents will have to cover dependents on a parent’s plan until their 26th birthday regardless of their student status. This applies both to new and existing plans.

Wellness Grants

Businesses with under 100 employees can apply for $200 million in available grants to fund new wellness programs (must be implemented after March 23, 2010).

W-2 Reporting

Starting with tax years beginning after December 31, 2010, employers are required to report on Form W-2 the total cost of employer-provided group health coverage that is excluded from the employee’s gross income.

Requirement to Inform Employees

Beginning in 2013, employers must provide each employee with written information on the employer health plan, health exchanges, available subsidies for insurance and guidelines about how to purchase insurance.

Simple Cafeteria Safe Harbor

Beginning 2011, simple cafeteria plans for small businesses include a safe harbor from nondiscrimination requirements if the employer averaged 100 or fewer employees during either of the 2 years preceding 2011.

Employer Play or Pay (Employer Mandate)

Beginning in 2014, employers with more than 50 employees will pay a per-employee penalty fee if they do not offer health coverage or if they offer coverage and at least one full-time employee receives a premium subsidy.

Tax on “Cadillac” Plans

Beginning in 2018, there will be an excise tax on any “excess benefit” of employer-sponsored coverage. This is currently defined as more than $10,200 for individual coverage or more than $27,500 for family coverage.

Automatic Enrollment

Employers with more than 200 employees must automatically enroll employees in employer-sponsored plans.

Breastfeeding Accommodation

Health reform will amend the Fair Labors Standard Act to require that employers provide unpaid breaks for employees to express breast milk and provide a private location for these breaks.

About the Author

Peter Kuhn is the Founder and a Principal at IBP Insurance Services in San Jose, CA

As a graduate of Santa Clara University Peter was recruited by Price Waterhouse (currently PWC) and spent three years in the audit practice at PWC. Peter earned his CPA certificate in 1985. Prior to establishing IBP in 1987, Peter gained his insurance and employee benefit training at CIGNA. IBP has become one of the largest independent employee benefit brokerage and consulting firms in the State of California. IBP has earned a reputation as a leading producer with an aggressive representation of client needs. As an industry leader, Peter is called upon as a point of reference on key employee benefit issues at a state and national level. Furthermore, Peter has served on the broker advisory council for: Aetna, Blue Cross, HealthNet, Kaiser, Lifeguard and PacifiCare

Peter is also active in the employee benefit and insurance arenas and is an active member in the following organizations:

• California Association of Health Insurance Underwriters (CAHU)
  
• National Association of Health Underwriters (NAHU)
  
• National Association of Insurance and Financial Professionals (NAIFA)
  
• Silicon Valley Association of Health Underwriters (SVAHU)
  

Additionally, Peter is regularly quoted in local and national benefit publications and has been a featured presenter at the Barclays’ Quarterly Health Care Updates.

Peter organized the largest gathering of employers in Silicon Valley history to discuss the sensitive issue of provider disruption. The conference was attended by over 375 employers (representing over 100,000 employees) and industry leaders who were looking for answers to resolve the question . . . My Doctor has Left the Network Now What???

The recently enacted Affordable Care Act is one of the most significant pieces of legislation to impact employers in the last 30 years. It is important to understand the opportunities and pit falls presented by this landmark legislation.

Peter is a frequent speaker at tradeshows and industry conventions on employee benefit programs and healthcare legislation.

Email: peter@ibpis.com Telephone 408-363-6004