PPACA and Other Legislation
2010-2011 Legislative Overview
The Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010. This bill will change many aspects of the health care industry in the United States, and this section will provide you with an overview of how these changes will affect you.
Bear in mind that these changes are going into effect over the next several years and many of them apply to employers and insurers. Ultimately, all the changes will affect the general public, so everyone needs to know how this will in turn impact their health care coverage.
Some of the immediate changes that went into effect in 2010 were:
- Change in tax treatment for overage dependent coverage
- Early retiree medical reinsurance
- Medicare prescription drug “donut hole” beneficiary rebate of $250
- Auto-enrollment of full-time employees
- Temporary high risk pools for uninsured with pre-existing conditions
In 2011, more changes will go into effect, and these will have a greater impact on you:
- Dependent coverage extended to age 26
- No pre-existing condition limitations for children up to age 19
- No health FSA/HRA/HSA reimbursement for Over-the-Counter drugs and medicines without a physician’s prescription
- Voluntary long term care “CLASS” insurance program begins
- Simple cafeteria plans for small employers
- Increased penalties for non-qualified HSA and MSA distributions
- Medicare, Medicare Advantage benefit and payment reform
PPACA changes will continue to be implemented from now until 2018, and the Learning Center will keep you up-to-date on when they go into effect and how they will affect you.