Agenda - 10-12-2010 - Board of Health Meeting

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15 How will health insurance premium costs be affected by the requirement to expand coverage to beneficiaries' dependent adult children? Currently, premium costs depend on who is covered by the plan, and an employee's portion of the premium may increase when additional individuals are added to a family plan. Since the health reform law does not stipulate how premium costs will be affected by this particular change, whether premium costs rise will depend on how employers respond to the change. According to an analysis by the Department of Health and Human Services, average family premiums would increase by an average of 0.7 percent by adding coverage for approximately 1.2 million young adults through their parents' plans. For more information about the extension of dependent coverage, see: Regulations on the extension of dependent coverage: http://edocket.access.gpo.gov/2010/pd:f/2010-11391.pdf FAQs on the extension of dependent coverage: http://www.hhs.gov/ociio/relations/adult child faq.html Changes to Benefit Requirements Does the health reform law contain changes to dollar limits on benefits? Yes-in the first plan year beginning after September 23, 2010, all health insurance plans will not be permitted to implement lifetime caps on coverage. Does the health reform law contain changes to the types of services that are required to be covered? Yes, for new plans-in the first plan year beginning after September 23, 2010, non-grandfathered plans (new plans created after March 23, 2010) will be required to provide coverage that includes preventive services, immunizations and screenings without beneficiary cost-sharing requirements. (Also mentioned in the Public Health and Wellness section) Other Changes That Will Affect Employer-Sponsored Health Insurance 2010-2011 Is there a provision in the health reform law regarding a new program for long-term care? Yes- the Community Living Assistance Services and Supports (CLASS) Act program is a new voluntary long-term care insurance program that provides participants with a cash benefit to cover the costs of long-term care services. Employers determine whether or not to participate in the program. How will the CLASS payroll deductions operate? Employers that choose to participate will automatically enroll employees for the CLASS payroll deductions beginning January 1, 2011; however, employees may choose to opt out of the program. For individuals whose employers choose not to participate, the HHS Secretary will establish other participation mechanisms. (For more information about CLASS, see the Long Term Care section.) Are there any new reporting requirements for employers and/or health plans? Yes-effective in 2012, the cost of health insurance coverage must be reported on W-2 forms, reflecting coverage in 2011. Additionally, in 2010 health plans will be required to report the amount of premium dollars spent on clinical services, quality and other costs. Effective January 1, 2011, for the amount spent on these items that is less than 85 percent for large group market plans or 80 percent for individual or small group market plans, the plans will be required to provide consumers with rebates. 9