Winthrop & Gray’s Health Care Reform reminders, up dates and timeline.
2011
Insurance Reforms
New uniform coverage documents and standard definitions developed (applicable in 2012).
Minimum medical loss ratios required.
Medical Reforms
Medicare Advantage cost-sharing limits take effect.
Medicare beneficiaries who reach the "donut hole" get a 50 percent discount on brand-name drugs.
Primary care doctors and general surgeons practicing in underserved areas, such as inner cities and rural communities, get a 10 percent Medicare bonus.
Medicare Advantage plans begin restructuring of payments and freeze 2011 payments at 2010 levels.
Other
The voluntary long-term care insurance program starts. The program provides a cash benefit to help those with disabilities stay in their homes or pay nursing home costs. Benefits start five years after paying the coverage fee.
Increased funding for community health centers to provide care for many low-income and uninsured people.
Costs for over-the-counter drugs not prescribed by a doctor excluded from being reimbursed through an HSA or FSA.
Employers may report the value of health care benefits on employee W2 tax statements (optional for 2011 tax year; mandatory thereafter).
Start of new annual fees on pharmaceutical manufacturing sector.
2012
Health System Changes
Hospitals, doctors, and payers encouraged to join forces in "accountable care organizations."
Hospitals with high rates of preventable readmissions facing reduced Medicare payments.
2013
Taxes/Deductions
Individuals making $200,000 a year or couples making $250,000 would have a higher Medicare payroll tax of 2.35 percent on earned income - up from the current 1.45 percent. A new 3.8 percent tax on unearned income, such as dividends and interest, also added.
Contributions to flexible spending accounts (FSAs) limited to $2,500 a year - indexed for inflation. And the threshold for deducting medical expenses on taxes goes from 7.5 percent to 10 percent of income.
Medical device manufacturers have a 2.9 percent sales tax on medical devices, with exemptions for some, like eyeglasses, contact lenses and hearing aids.
No more deduction for expenses allocable to Medicare Part D subsidy for employers who maintain prescription drug plans for their Medicare Part D-eligible retirees.
For more information on how Health Care Reform may impact your care or your business
contact Allen Beach at Winthrop & Gray Company 800-258-1598.
