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5 <br />Attachment 1 Page <br />• <br />THE IMPACT OF HEALTH CARE REFORM ON ORANGE COUNTY <br />Recent National legislation has made significant changes to the way employers administer <br />health insurance, but will have minimal impact on Orange County in the next few years. The <br />chart below shows the impact of the changes Health Care Reform (HCR) will have on Orange <br />County employees and retirees for the next eighteen months. <br />• <br />Chan a in Le islation How Oran a Coun Will Be Affected <br />Dependent coverage allowed for adult Dependents up to age 26, regardless of <br />dependent children up to age 26. The student status, have been eligible to remain <br />only exception is if the child is not on our health insurance since January <br />eligible to enroll in other employer- 2010. Beginning January 2011, the <br />provided coverage. definition of dependent will include married <br /> children er HCR. <br />Elimination of pre-existing condition No impact; already part of our plan. <br />exclusions for children under a e 19 <br />Elimination of coverage rescissions No impact; already part of our plan. <br />(cancellation of coverage) after <br />someone has submitted medical <br />claims. <br />Elimination of lifetime maximum No impact; already part of our plan. <br />covera a limits. <br />Requires preventive care benefits be No impact; already part of our plan. <br />rovided. <br />Requires time and a private space be Effective immediately. Minimal impact; <br />provided to nursing employees. Applies mothers are not required to be paid for this <br />to FLSA non-exem t em to ees. time. <br />Over the Counter (OTC) medications Our plan for 2011 will be changed to reflect <br />require prescription to be eligible under this. <br />Flexible S endin Account <br />W2 for 2011 must report the value of 2011 W2s, issued in 2012, must be revised <br />health covera a to include value of health insurance <br />Provide Health Insurance to ALL Reduce temporary staffing hours to avoid <br />employees working 30 hours or more a penalties <br />week (not just permanent employees) <br />effective 2014 <br />A temporary, retiree health subsidy (Early Retiree Reimbursement Program) will be available to <br />the County for claims beginning June 2010 for retirees age 55 or older who are not eligible for <br />coverage under Medicare. Reimbursement is for 80% of health claims (medical, surgical, <br />hospital, prescription drug and others to be defined) if they are. between $15,000 and $90,000. <br />• Staff is working with NCACC and CIGNA to ensure the County can take advantage of this <br />subsidy. <br />