A Weekly Health Care Reform Update

Check here weekly for the latest news and notes on the proposed health care reform efforts. You'll receive the latest inside information from inside and outside the beltway as our expert consultants report on what you need to know.

December 28, 2009

In a historic session on Christmas Eve, the U.S. Senate passed a massive overhaul of the United States health care system. The "Patient Protection and Affordable Care Act" must now be reconciled with the bill passed by the House in November. The goal is to sign final legislation in January 2010.

Key employer impacts of the Senate bill include:

• A free-rider penalty on employers, when full-time employees receive a federal subsidy for health insurance through the exchanges.
• A 40% excise tax on the value of employer coverage exceeding certain thresholds.
• Employer-provided "free choice vouchers" for qualified employees for the purchase of health insurance through the exchanges.
• Administrative requirements including reporting on the value of coverage provided, and auto-enrollment.
• Retiree provisions iincluding a temporary reinsurance program for early retirees and taxation of RDS.
• Health care FSA cap of $2,500 (indexed), and limits on reimbursement for over-the-counter medicines.

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