Sent: Monday, April 16, 2012 7:40 PM
To: Team
Subject: Health Care Reform Bulletin #11
We are going to review the major issues of Health Care Reform this week with a focus on the impact to our clients and channel partners.
Issue # 1 - Anti Injunction Issue
Overview - The court systems does not allow for challenges to the new law until it goes into effect. Due to the amount of work that needs to be completed and the number of legal challenges pending, this issue will be need to be allowed to be argued and decided.
Outcome: The vast majority of legal experts believe that this issue wil be deemed to be required to be resolved. This issue must be resolved in order to address the other three issues so it is not seen to be of great concern.
Issue# 2 - Minimum Coverage/Individual Mandate
Overview - The new health care reform bill requires every American to have some form of insurance. Any employer that doesn't provide a minimum level of coverage will be subjected to a fine or penalty. Employers will have the option of allowing employees to utilize a private or public exchange.
Impact: If the law stays the way it is written, employers will need to determine if there is a value in offering employee benefits. Many of the experts believe that small employers (under 500 employees) will move to the exchange while larger employers will not see any savings and will want to use their benefits package as a competitive advantage.
Possible Action: Employers should review the possibility of paying a penalty vs offering insurance to their employees. The website created by the law firm of LarsonAllen provides detail on the various penalties and formulas required for calculating employer options.
What do you think? Are there other issues that should be considered when looking at these two items?
Respond now by replying to this email or visiting ask.businessolver.com
R
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