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ACA Exchange Notices

Federal and state governments are manufacturing insurance exchanges/market places as another resource for existing insurance carriers to offer their products and plans. These same products and plans will be available outside the exchanges/market places. For most employers, this new market place will be a redundancy to the way you currently understand insurance to work. The benefactors will primarily be the indigent and certain small businesses that qualify for financial assistance.  As always, Cosby Insurance group will provide you thorough analysis of all your choices.

However, the Affordable Care Act (ACA or health care reform law) added a section to the Fair Labor Standards Act (FLSA) that said employers must provide a written notice to each existing employee. The Department of Labor (DOL) provided an update with temporary guidance and templates of the required notices. Starting on October 1, 2013, the notices have to be given to new employees on the day they are hired. The notices have to be given to existing employees no later than October 1, 2013. The notices will:

  • Advise employees about exchanges including a description of the services provided and how they can contact exchanges to request assistance;
  • Let employees know they may be eligible for a premium tax credit if the employer-sponsored plan does not meet certain standards, and the employee buys a qualified health plan through an exchange;
  • Explains that if the employee buys a qualified health plan through an exchange, he or she may lose the employer contribution to any health benefit plan the employer offers, and that all or a portion of the contribution may be excluded from income for Federal tax purposes.

Please know that the quality and affordability of your employer-sponsored benefits is important to being  a competitive employer. Providing competitive and affordable  benefits is now more important than ever.

Important links:
Technical Release 2013-02
Model Exchange Notice
Cobra model

CBO Concludes ACA Employer Mandate Delay Will Cost About $12 Billion.

The Washington Post reports in its “Wonkblog” blog on a study by the Congressional Budget Office finding that the Administration’s delaying of the employer healthcare coverage mandate under the Affordable Care Act has added $12 billion to the overall cost of the legislation, mostly due to reduced fines that would have been levied against employers for failing to comply.

The rest is chiefly due to the CBO projecting greater use of exchanges with a resulting larger Federal subsidy.

That is, at least in part, due to the CBO’s projection that the delayed mandate will result in “1 million fewer people” having “employer-sponsored coverage in 2014 than previously forecast.”

Click here to read full article.

CHPA Applauds Introduction Of Restoring Access To Medication Act

Bill would restore consumers’ rights to purchase OTCs with FSA and HSA dollars.

The Consumer Healthcare Products Association (CHPA) is pleased to lend its support for the Restoring Access to Medication Act (H.R. 2835) introduced by U. S. Rep. Lynn Jenkins (R-Kan.) and U.S. Rep. John Barrow (D-Ga.).

This legislation would repeal a requirement enacted into law as part of the Patient Protection and Affordable Care Act (PPACA) of 2010 that requires consumers to obtain a prescription in order to utilize their flexible spending arrangements (FSAs) and health savings accounts (HSAs) to purchase over-the-counter (OTC) medicines.

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Breaking: House Votes to Delay Health-Law Mandates

House lawmakers on Wednesday voted to approve two separate bills amending portions of the Affordable Care Act, the latest moves by the GOP to try to throw up hurdles to the Obama health law.

The first bill would codify the year-long delay to the obligation on companies to provide health care coverage to their workers from next year.

The second would delay a similar obligation on individuals to purchase health-care insurance.

The vote on the first bill delaying the employer mandate passed 264-161, with 35 Democrats joining Republicans in supporting it. The vote on the second legislation was approved by a vote of 251-174. On that measure, 22 Democrats sided with the majority.

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People Wanting Obamacare Consumer Penalty Waived Outnumber Penalty Supporters 3 to 1

In the aftermath of last week’s surprise 2014 waiver of the employer-mandate to provide health insurance or face a fine, HealthPocket surveyed consumers to assess their feelings regarding the decision not to extend a similar penalty waiver to uninsured consumers.

obamacaresurveypie

 

For employers with 50 or more workers in 2014,1 there was a $2,000 penalty per full time employee for those employees not provided health insurance meeting the requirements of the Affordable Care Act. This insure-or-face-a-penalty provision does not become active for employers until 2015 now that the waiver for 2014 has been announced. However, most consumers still face a penalty for being uninsured starting in 2014. The 2014 penalty amount for individuals is 1% of their annual income or $95, whichever is the larger amount. Families face higher penalties than individuals and the penalty amount itself increases each year until 2016 when it reaches $695 or 2.5% of annual income for individuals, whichever is larger. After 2016 the penalty is adjusted based on cost-of-living.

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