Beauty Link - Volume 5, Issue 4 - (Page 55)

BEYOND 2014 WHAT’S IN STORE FOR HEALTH CARE REFORM BY REBECCA ROLFE T 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 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 | 55

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
Beyond 2014
voices from the classroom
Work Smart
superstar graduates
Celebrate the Power of Being an Educator
people & places
new products & services
associate member profiles: salons
new school members
upcoming 2013-14 events
In Memory
index to advertisers

Beauty Link - Volume 5, Issue 4