Health Care Reform Update

Volume 2 Issue 1
May 5, 2010

The Health Care Reform Update is a publication intended to provide objective information on the health care reform updates from Washington DC. Many businesses report health care as their second and fastest growing expense. With all the headlines and discussions, we know that it is difficult to separate fact from fiction. We will periodically send articles to help you maintain a knowledgeable position on the topic. We believe in building relationships with our clients; solving their problems, exchanging information, ideas and resources with them and providing them with value-added services. This is our way to share great information with you and it is our mission to continue to improve upon these philosophies. Enjoy this issue of the Health Care Reform Update and thank you for reading it. It was our pleasure putting it together for you.

Health care reform has arrived as have new mandates on employers and medical service providers. On Sunday night, March 21, 2010, the U.S. House of Representatives passed the Patient Protection and Affordable Care Act (H.R. 3590), which had been previously approved by the Senate on December 24, 2009 (the "Reform Act"). With this law approved by both bodies, health care reform is now here, and has been signed into law today by President Obama.

A remaining question is whether the proposed Health Care & Education Affordability Reconciliation Act of 2010 (H.R. 4872) ("Reconciliation Act") also approved by the House on March 21, 2010 will be passed by the Senate. The Reconciliation Act would amend the Reform Act to reflect House concerns that were not addressed in the Reform Act. Republicans in the Senate are expected to fight passage of the Reconciliation Act, a fight that will officially begin on the Senate floor after the President signs the Reform Act into law.

At right is a summary of pertinent provisions of the Reform Act as well as the impact the Reconciliation Act (italics) would have on those provisions if passed by the Senate and signed into law by the President.

Many of the Reform Act's provisions take effect in 2013, 2014, or later years, or are gradually phased in. Some provisions, however, become effective immediately or within a short time. A few of these are:

• A temporary national high-risk pool will go into effect within 90 days of enactment.
• Restrictions on insurers regarding lifetime limits, excessive waiting periods (over 90 days), rescissions, and pre-existing condition exclusions for children.
• Limitations on insurers' ability to impose annual limits on the dollar value of coverage as determined by the Secretary of Health and Human Services.
• New insurance must pay the full cost of specified preventive care.
• Children can stay on their parents' insurance policies until they are 26.
• Rebates on Medicaid prescription drugs are increased effective January 1, 2010.
• Starting in 2011, health insurers must make rebates to enrollees if medical loss ratios are lower than specified levels.
• Effective January 1, 2011, the elimination of the ability of employers to exclude from taxation (Medicare Part D) the subsidies they receive for maintaining retiree drug coverage for their Medicare-eligible retirees.
• Effective January 1, 2011, contributions to employee flexible spending accounts will be limited to $2,500 per year, indexed to CPI, and reimbursements for non-prescription drugs will no longer be allowed.

Join us Thursday, June 3, 2010 at 7:30 am at Executive Caterers at Landerhaven when Ernst & Young and The Fedeli Group host a panel of experts from government, finance and the health care industry to answer this questionand more regarding one of our country's most critical issues: The Health Care Reform Law - The Impact of the Patient Protection and Affordable Care Act (H.R. 3590)

The focus of our panel will be:

• The impact of costs, obligations and compliance requirements on business owners and employers.
• The tax implications of this new law on individuals and business.
• Understanding the effective time line for each phase of the law's provisions.
• The new mandates on medical service providers and the subsequent impact on individuals and employers.

Using our resources, our goals are to assist, advise, guide and facilitate your needs to help you prepare for the changes that will occur and what to expect with each phase of the new law.

For the first part of our program we are pleased to have Congressmen Steven LaTourette ("Cleveland's go to Congressman") and Congressman and House Minority Leader John Boehner, one of the most powerful people in Washington DC, personally tell us what is going on in Washington DC.

Because of the caliber of our presenters and the interest in this subject, we are expecting to be at total capacity. We look forward to possibly having you join us. Simply click on this link to register:

Register Now!

If you have any questions, contact Mary Ellen Gillenwater, The Fedeli Group, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , 216-643-6697

As this legislation becomes more clear, we will provide detailed outlines of the changes. We will create regular information updates to keep you informed. If you have an immediate need, please contact us. Also feel free to check the Group Benefits section of our website for updates at www.thefedeligroup.com.