Monday, April 5, 2010

Health Care Reform Bill signed March 23, 2010

• Small business tax credit
• National risk pool is created. However there is a question on how many this will help given the limited amount of funding
• Lifetime benefit limits are not allowed and cancellation of insurance based is not allowed unless fraud is involved
• Preventative services will be paid for by insurance companies
• Allows your dependents to be covered until age 26
• No Pre-existing condition exclusions for dependent children 19 or younger

• Forms and documents will be uniform with a goal to compare plans easier
• Insurance companies are required to allocate a larger portion of revenue to health care
• Your W2 will now have the value of your health insurance paid by your employer
• Annual fee for manufacturers of brand name drugs
• Community health insurance offices will be funded for those without insurance

• Hospitals are held accountable for preventable re-admissions and may face a reduction in payable Medicare benefits

• Individuals making $200,000 a year or couples making $250,000 would have a higher Medicare payroll tax of 2.35% on earned income and a new tax of 3.8% on unearned income
• Flexible spending accounts can be funded up to $2,500 a year
• Itemized deduction for health care expenses are only allowed if the amount is 10% of income
• Manufactures of medical devices will have a 2.9% sales tax. Some exemptions apply
• Elimination of employer tax deductions for Medicare part D subsidy for employers that maintain prescription drug plans for retirees

• Addition of new taxes on health insurers
• Coverage gap in Medicare prescription benefit is fully phased out
• Individual and employer coverage responsibilities are effective.
• Individual affordability tax credits are created and small business tax credits are expanded
• State health insurance exchanges are fully funded and operational
• All Pre-existing condition exclusions are prohibited
• Annual and lifetime dollar limits are eliminated for all essential health care
• Guaranteed issue, guaranteed renewability health insurance plans
• Tax (“Cadillac tax”) imposed on employer sponsored health insurance plans