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What Does Health Care Reform Mean for Employers & Employees?

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September 3, 2010

Whether you are for it or against it, Health Care Reform is here. As a Human Resources Manager for an Indianapolis staffing company, the details of this bill have me scratching my head. This leaves many Indianapolis staffing companies and Benefits Managers and those in Executive jobs and Finance jobs in Indianapolis trying to sort it all out.

It also has those employees working in Federal Government Contract jobs in Indianapolis, those in Indianapolis part time jobs, those in administrative jobs in Indianapolis, executive jobs or six figure jobs in Indianapolis and many employees working in central Indiana jobs wondering how this affects them.

If you Google Health Care Reform, you will find yourself with more questions than answers.

Outlined below are the basics of the Health Care Bill, which I found on Personal I have found this helpful in sorting out the basics of the bill


There are 3 major changes for this year. First, insurance companies will no longer be allowed to deny coverage to children with pre-existing illnesses. Second, children would be able to stay on their parent’s insurance until they are twenty-six and third, Medicare recipients who fall into a specific coverage gap will get a $250 rebate.

Other changes for 2010 include individuals who have not had health insurance for 6 months will receive a subsidy to enroll in high-risk insurance pools run by the states. All new insurance plans sold must exempt preventative care and screenings from deductibles and small businesses with fewer than 25 employees would receive up to a 35 percent tax credit for providing health insurance to their employees.


In 2011, the new health care bill will make changes focused mostly on preparing for later updates. The new health care bill will set up a long-term care insurance program. Individuals who pay premiums into this system for at least five years will become eligible to receive support with daily living assistance.

The senior citizens that fall into the


No major changes will occur in health care in the year 2012 under the new health care bill. In 2013, many of the new taxes and fees that will pay for the new health care bill will go into effect. This will provide funding for the 2014 fiscal year updates to the health care system.

These taxes will include new Medicare taxes on individuals who earn more than $200,000 a year. The wage tax, dividends and interest tax, and a small tax on medical devices will also be implemented. In 2013, the new health care bill will also implement a test system in Medicare in which payments are made based on the quality, rather than quantity of health care services. Health insurers will also be barred from charging different premiums to customers based on gender.


In 2014, the majority of Americans will gain benefits from the new health care bill. Exchanges will be created so individuals without employer-provided health care or small business can shop for health care coverage

In addition to providing subsidies and guaranteed coverage for most citizens, the new health care bill will also require that most people have health insurance. There will be a fine for not carrying insurance of some sort. An independent Medicare board will also be created to help curb Medicare costs if the costs rise more quickly than inflation.

"medicare donut hole" a coverage gap will get a 50 percent discount on some drugs. In 2011, a new fee on drug makers will also be implemented to help pay for the upcoming changes. The fine on withdrawing funds from a Health Savings Account for non-medical expenses will increase by 5 to 10 percent. Employers will also need to start including the cost of health care on employees W-2 forms. and insurance companies will be barred from denying coverage on the basis of pre-existing conditions. Medicare will also expand to cover all Americans with income up to 133 percent of the federal poverty level ( about $27,000 per year for a family of 4). Small businesses will also receive a tax credit to help them provide coverage to their employees. The insurance industry will also be required to pay an annual fee to help pay for the exchanges that will cover all citizens that cannot otherwise receive insurance.

2015, 2016, 2017, 2018

In 2015, the new health care bill will simply continue the new coverage, taxes and fees that are created in previous years. In 2016, the penalty for individuals who do not purchase health insurance will rise to a $695 minimum. In 2017, businesses that have more than 100 employees will be allowed to participate in the state insurance exchanges, if the state government allows it. In 2018, an excise tax will be imposed on so-called "Cadillac plans" that generally provide more than $27,500 worth of coverage for a family.

There are many changes coming up in the years ahead but it’s important for Indianapolis Staffing companies and all Central Indiana employers to start proactively planning for these now!