Summary of Employers’ Compliance Dates



· $5 billion federal reinsurance fund set up to reimburse employers with retiree health care plans for 80% of each claim between $15,000 and $90,000 for retirees ages 55-64.

· Small businesses (under 50 employees) that offer coverage to employees can get tax credits up to 50% of premium costs.


· Group plan coverage extended to employees’ adult children up to age 26 if no other employer plan is available.

· Elimination of plan lifetime dollar limits.

· Nonprescription drug costs no longer reimbursable through flexible spending accounts.

· Coverage required of pre-existing medical conditions of children younger than 19.

· Tax on nonhealth care distributions from health savings accounts increases to 20% from 10%.


· Cost of employer-provided health coverage reported on W-2 income statements.  Requirement begins for 2011  W-2s distributed in 2012.


· Maximum FSA contribution capped at $2,500.  Future increases linked to annual rise in Consumer Price Index (“CPI”).

· Employer tax deduction for prescription drug coverage provided to Medicare-eligible retirees ended for amount equal to federal subsidy to employers whose drug plans are at least equal to Medicare Part D.


· Period before new full-time employees can receive coverage limited to 90 days.

· $2,000 penalty on employers with 50+ employees for each full-timer not offered coverage, excluding first 30 employees.

· $3,000 penalty on employers with 50+ employees for each full-time worker whose premium contribution exceeds 9.5% of family income and receives subsidized coverage through state insurance exchanges.

· Annual dollar limits on health care expenses eliminated.

· Exclusions for pre-existing medical condition barred.

· Increases cap on wellness program incentive rewards at 30% of employee-only coverage and give regulators authority to raise the cap to 50%.

· Coverage must be offered to employees’ adult children up to age 26 even if other coverage is available.


· 40% excise tax imposed on health insurance premiums exceeding $10,200 for single coverage and $27,500 for family coverage.  Cost thresholds slightly higher for plans covering retirees or employees in certain high-risk industries.  In 2019, thresholds rise to match the increase in the CPI, plus one percentage point.  In 2020 and succeeding years, thresholds match percentage rises in the index.


Quoted directly from Business Insurance, March 29, 2010 issue, p. 18.  Also from The Christian Science Monitor, April 5, 2010 issue, p. 16.