Health Care Reform News

Obama pulls plug on CLASS

Tue, 18 Oct 2011 08:45:51 -0500

WASHINGTON (AP) — The Obama administration Friday pulled the plug on a major program in the president's signature health overhaul law — a long-term care insurance plan dogged from the beginning by doubts over its financial solvency.

Targeted by congressional Republicans for repeal, the program became the first casualty in the political and policy wars over the health care law. It had been expected to launch in 2013.

"This is a victory for the American taxpayer and future generations," said Sen. John Thune, R-S.D., spearheading opposition in the Senate. "The administration is finally admitting (the long-term care plan) is unsustainable and cannot be implemented."

Appeals court strikes health insurance requirement

Tue, 16 Aug 2011 10:55:36 -0500

ATLANTA (AP) — A federal appeals court has struck down the requirement in President Barack Obama's health care overhaul package that virtually all Americans must carry health insurance or face penalties.

Cigna to Stop Selling Small Business Health Plans in Texas

Wed, 06 Apr 2011 10:32:50 -0500

As of April 1st, Cigna will no longer offer group health insurance in the state of Texas for groups 2 to 50 citing issues with Health Care Reform.

IRS Releases W-2 Group Health Guidelines

Sat, 02 Apr 2011 12:31:10 -0500

Most employers that send out more than 250 W-2 wage tax withholding forms in 2012 will have to provide information about how much they spend on the employees' group health coverage.

“Nothing in Section 6051(a)(14), this notice, or the additional guidance that is contemplated under § 6051(a)(14), causes or will cause otherwise excludable employer-provided health care coverage to become taxable,” IRS officials say in an announcement of the 2012 W-2 group health reporting guidelines, which are described in IRS Notice 2011-28.

An Affordable Care Act provision is supposed to impose a “Cadillac plan” excise tax on some high-cost plans starting in 2018.

The new Section 6051(a)(14) will apply to insured employers that send more than 250 W-2 forms and to employers with self-funded plans that are subject to COBRA benefits continuation requirements, IRS officials say.

Employers can report group health expenditures this year, on the 2011 W-2 forms,

The Principal to Exit Medical Insurance Business

Thu, 30 Sep 2010 16:07:55 -0500

Principal Financial Group Inc. is getting out of the medical insurance and self-insured plan administration businesses, and it has arranged for UnitedHealth Group Inc. to handle renewals.

Principal, Des Moines, Iowa (NYSE:PFG), will stop selling health coverage, and it will begin a 36-month process of transferring renewal business to UnitedHealth, Minnetonka, Minn. (NYSE:UNH), as soon as state and federal regulatory requirements permit it to do so, the company says.
The decision does not affect Principal’s wellness, dental or vision benefits businesses, and it also has no effect on the company’s retirement, asset management and life insurance businesses, the company says.
Principal generated $344 million in premium revenue by providing health coverage for about 725,000 people in the second quarter.

Principal has about 1,500 employees in its health insurance business. The decision to get out of the health insurance business will affect 150 employees immediately, the company says.
Principal hopes to place some of the affected employees in other jobs at the company, the company says.
Principal has been selling group health insurance since 1941.

Principal Chairman Larry Zimpleman says rapid changes in the medical insurance business would require the company to invest more capital to continue to offer competitive products.
“For us, that just does not make sense,” Zimpleman says in a statement.
Principal’s medical insurance business has been performing well financially, but the company’s retirement and asset management businesses have grown more quickly, and the relative size of the medical insurance business has been declining, Zimpleman says.

Shutting down the medical insurance business should free more than $100 million in capital, the company says.

Health Care Reform Begins September 23, 2010

Fri, 24 Sep 2010 07:12:39 -0500

1) Extending Coverage for Young Adults: Young adults can stay on a parent's plan until they turn 26. This doesn't apply to young adults who already have health insurance through a job.

2) Providing Free Preventive Care: New plans must offer free preventive services, such as mammograms and colonoscopies. This means they cannot charge you a deductible, co-pay, or coinsurance. (Note: This only includes new plans, not those already in effect when the healthcare reform law passed.)

3) Banning Insurance Companies from Rescinding Coverage: When someone with health insurance got sick, insurance companies would sometimes search for an error or other mistake on that person's application to deny coverage. That practice will no longer be legal. (Note: For most people, this will take effect in January 2011, at the beginning of a health plan's new year.)

4) Appealing Insurance Company Decisions: Consumers will have two ways to appeal coverage decisions or claims: through their insurer or through an independent decision-maker. (Note: This only includes new plans, not those already in effect when the healthcare reform law passed.)

5) Eliminating Lifetime Limits on Insurance Coverage: Insurance companies can't set lifetime limits on key benefits, such as hospital stays. (Note: This only includes new plans, not those already in effect when the healthcare reform law passed.)

6) Regulating Annual Limits on Insurance Coverage: The law will restrict insurance companies' ability to set annual dollar limits on coverage for individual and group plans.

Healthcare Reform and HSAs

Thu, 23 Sep 2010 20:58:22 -0500

On March 23, 2010, President Obama signed into law far-reaching healthcare financing legislation. We wanted to provide you with an overview of the impacts to Health Savings Accounts (HSA). First, there will be no changes to HSAs the rest of this year. Some of the changes will be effective January 1, 2011. Here is what to expect:

Qualified Medical Expenses: Starting January 1, 2011 you will no longer be able to pay for over-the-counter medications from your HSA as a qualified medical expense. Until the end of this year, you can reimburse yourself or pay from your HSA the money used to buy over-the-counter medications. The new law removes over-the-counter drugs not prescribed by a physician from being paid from an HSA, FSA, or HRA on a tax-free basis.

Non-qualified expense penalty: Under the new law, if you use your HSA funds for non-qualified expenses, you will face a higher penalty. The tax penalty for non-qualified HSA distributions will increase, effective January 1, 2011, from 10% to 20%.

Mandated insurance coverage: Effective January 1, 2014, the legislation will require most U.S. Citizens and legal residents to have health insurance. It also outlines the minimum coverage and essential health benefits that need to be provided for a plan to qualify for the mandated coverage. This could potentially limit the types of health plans that will be available to consumers.

Fact Sheet: Keeping the Health Plan You Have: The Affordable Care Act and “Grandfathered” Health Plans

Sun, 29 Aug 2010 21:50:35 -0500

The Affordable Care Act gives American families and businesses more control over their health care by providing greater benefits and protections for family members and employees. It also provides the stability, and also the flexibility, that families and businesses need to make the choices that work best for them.

Questions and Answers: Keeping the Health Plan You Have: The Affordable Care Act and “Grandfathered” Health Plans

Fri, 09 Jul 2010 18:42:06 -0500

During the health reform debate, President Obama made clear to Americans “if you like your health plan you can keep it.” He emphasized that nothing in the health reform law would force businesses or consumers to change health plans or change their doctor. The new “grandfather” rule implements the grandfather provisions of the Affordable Care Act designed to allow strong health plans to continue to grow and remain vibrant.

U.S. Departments of Health and Human Services, Labor, and Treasury Issue Regulation on “Grandfathered” Health Plans under the Affordable Care Act

Fri, 09 Jul 2010 18:43:57 -0500

All health plans – whether or not they are grandfathered plans – must provide certain benefits to their customers for plan years starting on or after September 23, 2010 including:

IRS Reaches Out to Millions of Employers on Benefits of New Health Care Tax Credit

Mon, 19 Apr 2010 18:45:32 -0500

“We want to make sure small employers across the nation realize that — effective this tax year — they may be eligible for a valuable new tax credit. Our postcard mailing — which is targeted at small employers — is intended to get the attention of small employers and encourage them to find out more," IRS Commissioner Doug Shulman said. “We urge every small employer to take advantage of this credit if they qualify.”

Health Care Reform Timeline

Tue, 15 Jun 2010 18:51:16 -0500

The implementation timeline reflects the provisions of the Patient Protection and Affordable Care Act, which President Obama signed on March 23, 2010, as well as provisions in the Health Care & Education Reconciliation Act, which was signed on March 30, 2010.

Aetna discontinuing child-only policy sales.

Mon, 30 Aug 2010 20:03:47 -0500

Aetna is discontinuing child-only policy sales for 11/1/10 and later effective dates.

Why is Aetna making this change?

This change positions Aetna for the future so they can effectively handle upcoming changes resulting from healthcare reform (i.e. they are likely to lose money on child-only coverage). New federal rules require guaranteed issue (GI) of coverage for individuals under the age of 19 and no corresponding coverage requirement. These conditions have the potential to significantly increase the cost of premiums and make coverage unaffordable.

No impact to existing child-only policies

Existing policyholders will not be impacted by this action and they may continue their current coverage. These policies are renewable

States affected
Discontinuation of child-only coverage for the following states AK, AR, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KS, KY, LA, MI, MO, MS, NC, NE, NV, PA, SC, TN, TX, VA, WV, and WY will occur on 10/1/10. The implementation date for the following states CT, MD, OH, and OK is still being established.

Other health insurance options available for individuals under age 19:

Be added as a dependent to a parent’s plan.
If the above option is not a viable solution, applicants can check www.healthcare.gov for alternatives
Aetna continues to explore options with states where they are ceasing the sales of new child-only policies, including reviewing other regulatory changes that may allow them to re-enter this market and provide a valuable product between now and 2014, but this is highly unlikely.

Cigna Makes Changes to Individual plans

Tue, 31 Aug 2010 13:36:47 -0500

As the first round of Healthcare Reform kicks in on 10/1, keep in mind the following:
Preventive Care Benefits are changing to 100% coverage with no limits
The Lifetime Maximum Benefit will be unlimited.
CIGNA is not Grandfathering plans which means their current customers will enjoy the new enhanced benefits and will not receive a premium increase until their policy anniversary date.

Child Only Policies will no longer be available after 9/15 effective dates.