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Attachment 1 <br />Page <br />THE IMPACT OF THE AFFORDABLE CARE ACT 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 the Affordable Care Act (ACA) will have on <br />Orange County employees and retirees for the next eighteen months. <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 ACA. <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 for FLSA non-exempt Effective immediately. Minimal impact; <br />employees and a private space be mothers are not required to be paid for this <br />rovided to nursin 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 work schedule of all temporary <br />employees working 30 hours or more a staff to below 30 hours a week <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) that are between $15,000 and $90,000. <br />Staff is working on the application to ensure the County can take advantage of this subsidy. <br />