KFF_healthreformlaw - SUMMARY OF NEW HEALTH REFORM LAW Last...

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Unformatted text preview: SUMMARY OF NEW HEALTH REFORM LAW Last Modified: March 26, 2010 1 Patient Protection and Affordable Care Act (P.L. 111-148) Overall approach to expanding access to coverage Require most U.S. citizens and legal residents to have health insurance. Create state-based American Health Beneft Exchanges through which individuals can purchase coverage, with premium and cost- sharing credits available to individuals/Families with income between 133-400% oF the Federal poverty level (the poverty level is $18,310 For a Family oF three in 2009) and create separate Exchanges through which small businesses can purchase coverage. Require employers to pay penalties For employees who receive tax credits For health insurance through an Exchange, with exceptions For small employers. Impose new regulations on health plans in the Exchanges and in the individual and small group markets. Expand Medicaid to 133% oF the Federal poverty level. INDIVIDuAL MANDATE ReqUirement to have coverage Require U.S. citizens and legal residents to have qualiFying health coverage. Those without coverage pay a tax penalty oF the greater oF $695 per year up to a maximum oF three times that amount ($2,085) per Family or 2.5% oF household income. The penalty will be phased-in according to the Following schedule: $95 in 2014, $325 in 2015, and $695 in 2016 For the at Fee or 1.0% oF taxable income in 2014, 2.0% oF taxable income in 2015, and 2.5% oF taxable income in 2016. Beginning aFter 2016, the penalty will be increased annually by the cost-oF-living adjustment. Exemptions will be granted For fnancial hardship, religious objections, American Indians, those without coverage For less than three months, undocumented immigrants, incarcerated individuals, those For whom the lowest cost plan option exceeds 8% oF an individuals income, and those with incomes below the tax fling threshold (in 2009 the threshold For taxpayers under age 65 was $9,350 For singles and $18,700 For couples). EMPLOyER REQuIREMENTS ReqUirement to offer coverage Assess employers with more than 50 employees that do not oFFer coverage and have at least one Full- time employee who receives a premium tax credit a Fee oF $2,000 per Full-time employee, excluding the frst 30 employees From the assessment. Employers with more than 50 employees that oFFer coverage but have at least one Full-time employee receiving a premium tax credit, will pay the lesser oF $3,000 For each employee receiving a premium credit or $2,000 For each Full-time employee. (EFFective January 1, 2014) Exempt employers with 50 or Fewer employees From any oF the above penalties. Require employers that oFFer coverage to their employees to provide a Free choice voucher to employees with incomes less than 400% PL whose share oF the premium exceeds 8% but is less than 9.8% oF their income and who choose to enroll in a plan in the Exchange. The voucher amount is equal to what the employer would have paid to provide coverage to the employee under the employers plan and will be...
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This note was uploaded on 01/18/2012 for the course HPAM 8600 taught by Professor Ferig during the Spring '11 term at University of Georgia Athens.

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KFF_healthreformlaw - SUMMARY OF NEW HEALTH REFORM LAW Last...

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