Beauty Link - Volume 5, Issue 4 - (Page 55)
WHAT’S IN STORE FOR HEALTH CARE REFORM
BY REBECCA ROLFE
he major provisions of health care reform are here
for 2014 and the chance of a full repeal has passed.
Additional changes and potentially more delays
are expected before the end of 2013 and into next
year as the hiccups are worked out. Although 2014
is a banner year for reforms with the roll out of the
individual mandate, the health insurance marketplace, qualified
health plans, essential health benefits, and guaranteed coverage
to name a few, there are more changes coming in 2015 and beyond.
Beginning in 2015 the employer mandate will again take center stage. The mandate, including penalties, was delayed a year
to give employers time to conform to all of the required PPACA
changes. With so many variables, it would have been difficult for
employers to not make a mistake the first year and the delay was
a welcome concession from Washington. Employers should use
the delay to their advantage and begin implementing changes
now so that when 2015 arrives, the majority of work is done and
the chance of penalty is low. Additional marketplace reporting
requirements to verify eligibility for premium subsidies will be
required by employers and the small business health insurance tax
will rise from $8 billion to $11.3 billion. The individual mandate
penalty will increase from $95 or 1 percent to $325 or 2 percent
of gross income, whichever is greater. The small business health
insurance (SHOP) exchange must provide employers and their
employees the opportunity to choose from more than one carrier.
Early reforms focused on small businesses but 2016 will see
reforms reaching larger employers. The small group definition will
expand to include all employer groups up to 100 employees. Now that
today’s large employers will be considered small, the SHOP exchange
must expand to accommodate employers up to 100 employees and
all small group plan reforms and reporting requirements will apply.
This year will see the individual mandate penalty increase from
$325 or 2 percent to $695 or 2.5 percent of gross income.
Consider 2017 and 2018 to be the year of the tax increase. In
2017 the brand name drug tax will rise from $2.5 billion to $3.5
billion, the small business health insurance tax will increase from
$11.3 billion to $13.9 billion, the individual mandate tax penalty
will rise according to a cost-of-living adjustment and employers
with more than 100 employees will have the ability to purchase
coverage on the SHOP exchange. The “Cadillac Tax” begins in
2018. This is a tax on high-cost health insurance plans with an
aggregate value that exceeds $10,200 for individual coverage
and $27,500 for family coverage. The brand name drug tax will
increase from $3.5 billion to $4.2 billion, the small business
health insurance tax will increase from $13.9 billion to $14.3
billion and the individual mandate tax penalty will rise again
according to a cost-of-living adjustment. The rise in taxes will
be passed on in the form of premium increases, in addition to
the normal carrier trend.
Health care reform will continue to evolve and change today
and in years to come. Be sure to hang on for the ride. It will be a
bumpy initially, and we will all be thrown through a few loops.
As the law continues to be implemented, the ride will become
smoother. Find a trusted advisor to stand by your side to answer
questions and help you wade through the myriad of regulations.
You don’t have to do this alone.
Rebecca Rolfe is with Tag Employer Services and
also serves as Media Relations Director for the
Arizona Association of Underwriters, a chapter of
the National Association of Health Underwriters
(NAHU). To learn more, visit tagpay.com.
B E AUT YL I NK | C A N Y O U H E A R M E N O W? | 2 0 1 3 |
Table of Contents for the Digital Edition of Beauty Link - Volume 5, Issue 4
message from the aacs president and cea co-chairs
the workings of washington
Rejuvenate Your Passion for Business
The AACS Affi nity Program
Mobilizing Your Business Is a Thing of Beauty
Open Door Leaders
and then there’s compliance
Motivating Your Students
Use Your Resources
step by step
Taking Out the Mystery
beauty changes lives
Beauty School Insurance
a student’s perspective
skin care council
aacs listserve q & a
voices from the classroom
Celebrate the Power of Being an Educator
people & places
new products & services
associate member profiles: salons
new school members
upcoming 2013-14 events
index to advertisers
Beauty Link - Volume 5, Issue 4
If you would like to try to load the digital publication without using Flash Player detection, please click here.