Solutions for a Superior Workplace

Health Care Reform What are my options?

Presented by:

Patrick Pennefather, CLU, ChFC, CEBS, LUTCFClient Manager

David GangiAccount Executive

Solutions for a Superior Workplace | Happening Right Now!

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The United States Supreme CourtRuling expected by the end of June, 2012

Potential Outcomes Entire law is unconstitutional: individual mandate is NOT severable

Individual mandate is unconstitutional, but severable – all other PPACA provisions remain the law to be implemented

Entire law is constitutional

Regardless which outcome occurs: employers must deal with massive changes in the industry.

Solutions for a Superior Workplace | In Addition to the Supreme Court Ruling

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Defining Full-Time Employees:

PPACA currently defines full-time employees as working “30 hours per week”

Impact on determination of “large employer” status and corresponding coverage and penalty requirements

Impact on future automatic enrollment requirements

DOL Department of Treasury and HHS have asked for comments on determining “full-time employees”

Look back provision

Solutions for a Superior Workplace | In Addition to the Supreme Court Ruling

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We are one renewal away from full implementation of

Health Care Reform

Solutions for a Superior Workplace | Massive Changes for Employers

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Now 2014 and Beyond Health care obtained through employers Health care obtained through employers,

government, and direct

Group coverage Individual coverage is an option: employer, state, free market

“Buy” insurance through employer Buy insurance through exchanges (public and private), and through employer

Coverage regulated by states, but doesn’t apply to all plans

Federal government regulates coverage levels and mandates affordability

No premium regulation Mandate how much of premium must be spent on medical care

No federal taxes or fees Taxes/Fees

Employers regularly provide coverage Employers have to decide whether to “pay or play”

Solutions for a Superior Workplace | What are my Options?

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The prudent course of action is to plan to implement those changes

However:

Still anticipate a significant amount of future regulations and/or guidance

Difficult to predict what will be included

Difficult to predict law changes

Difficult to predict outcome of the US Supreme Court case

Solutions for a Superior Workplace | What is the Best Strategy?

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2014 Options Play by PPACA rules Play and reduce coverage Play and pay unaffordability penalty Pay and drop coverage Pay and increase salaries Pay geographically Pay via private exchanges

Solutions for a Superior Workplace | What Employers Need to Do...

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All employers need to decide whether to “pay or play”

Develop a solid multi-year health care strategy

Re-evaluate frequently as landscape continues to change

Employee communication is critical

Solutions for a Superior Workplace | Health Care Reform. What are the Options?

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Questions???