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APRIL 2010 – HEALTH CARE REFORM – HIGHLIGHTS OF KEY CHANGES AND EFFECTIVE DATES FOR MULTIEMPLOYER PLANS
Changes Affecting All Existing Health Plans, Including Multiemployer Plans* Effective Immediately: Health care coverage for an employee's child through year of 26th birthday is now tax free even if not a dependent (i.e., no "imputed income" to employee) Federal subsidy for certain pre-Medicare early retiree claims, covering 80% of individual claims incurred between $15,000 and $90,000 during a year; all payments must be used to lower participant costs - e.g., reductions in premiums or [...]
APRIL 2010 – HEALTH CARE REFORM – HIGHLIGHTS OF KEY CHANGES AND EFFECTIVE DATES
Changes Affecting All Health Plans (Including Grandfathered Plans) * Effective Immediately: · Health care coverage for an employee's child through year of 26th birthday is now tax free even if not a dependent (i.e., no "imputed income" to employee) Effective for Plan Years Beginning after 9/22/10: · Lifetime limits prohibited · Annual limits for "essential health benefits" subject to restrictions · Must continue coverage for children until age 26, but only if [...]
MARCH 2010 – NEW EXTENSION AND EXPANSION OF COBRA PREMIUM SUBSIDY PROGRAM
On March 2, 2010, the Temporary Extension Act of 2010 ("Extension Act") was signed into law extending and expanding (once again) the federal COBRA premium subsidy program. (The program was originally enacted on February 17, 2009, and has now been modified twice - on December 21, 2009 and again last week.) In general, the program subsidizes 65% of COBRA premiums for up to 15 months for individuals eligible for COBRA due to [...]
FEBRUARY 2010 – INTERIM FINAL REGULATIONS UNDER MHPAEA
On January 29, 2010, the IRS, DOL, and HHS issued interim final regulations implementing the Mental Health Parity and Addiction Equity Act of 2008 ("MHPAEA"). The MHPAEA generally requires group health plans that provide mental health and/or substance use disorder benefits ("MH/SUD benefits" for short) to provide such benefits on an equivalent basis with any medical/surgical benefits. In general, the MHPAEA is effective for plan years beginning after October 3, 2009, and [...]