Volume 2, Number 5, May 2010

WHAT’S HAPPENING IN HEALTH CARE REFORM

One of the provisions of the Health Care Reform legislation to be implemented in 2010 is Small Business Tax Credits. From 2010 through 2013, nonprofit organizations may be eligible for payroll tax credits up to 25% of the employer's contribution toward the employee's health insurance premium. The employer must contribute at least 50% of the premium cost. The full credit will be available to employers with 10 or fewer employers and average annual wages of less than $25,000. The credit phases-out as firm size and average wage increases. Some credit is available to nonprofits with a maximum of 25 employees and an average annual wage of $50,000. In 2014, the tax credit will increase to 35%. The tax credit is designed to help small employers afford health care coverage, especially those who employ low to medium income workers.

Volume 2, Number 4, April 2010

WHAT’S HAPPENING IN HEALTH CARE REFORM

Health care reform legislation will extend dependent coverage under your health insurance policy to age 26 beginning on September 23, 2010. This means many students graduating from college in May or June of 2010 would have a coverage gap. Many carriers have changed their plans to allow this extension of coverage to start prior to September 23, 2010. If you have a dependent that would lose coverage under your existing health insurance on June 1, check with your carrier to see if this extension has been added to your plan.

Volume 2, Number 3, March 2010

WHAT’S HAPPENING IN HEALTH CARE REFORM

On March 23, 2010, President Obama signed into law the "Patient Protection and Affordable Care Act" passed by the U.S. House of Representatives. Some of the provisions to be put in place this year:

• Elimination of pre-existing conditions
• Increase in dependent coverage to age 26
• Prohibition of lifetime limits on benefit payments
• Coverage for retirees over 55 who are not eligible for Medicare
• Creation of a temporary national high risk insurance pool
• Tax credits for certain small businesses
• Closing the "doughnut hole" by providing tax credits for Medicare patients who face a gap in prescription drug coverage

Volume 2, Number 2, February 2010

WHAT’S HAPPENING IN HEALTH CARE REFORM

President Obama is calling for a bipartisan Health Care Summit on February 25. In an interview, the President said the meeting will allow "Republicans and Democrats to go through systematically, all the best ideas that are out there and move forward." The meeting will be televised live. Legislators from both parties applauded the Summit; however, both seem to be sticking to their positions.

A national ABC News/Washington Post poll shows that about two-thirds (63%) of Americans want Congress to continue to work towards a comprehensive health care reform bill. When asked about the bipartisan nature of the negotiations, 58% believe Republicans are not doing enough to compromise on key issues and 44% believe President Obama has not made enough of an effort to find common ground.

Volume 2, Number 1, January 2010

WHAT’S HAPPENING IN HEALTH CARE REFORM

The Senate passed their version of a health reform bill on December 24. The next step is for the House and Senate to agree. That's a big step!

In December, an extension of the COBRA subsidy program under ARRA was signed. It extends the federal subsidy of 65% of the continuation premium for qualified employees to 15 months. Previously, it was 9 months. Individuals currently receiving the subsidy will continue for an additional 6 months assuming they meet all other eligibility requirements.

The eligibility period for the subsidy program has been extended from December 31, 2009, to February 28, 2010. This means that individuals who are involuntarily terminated between September 1, 2008 and February 28, 2010, are eligible for the COBRA subsidy program.