My company email regarding new health law

unsungunsung I stopped by on March 7 2024. First time in many years, had to update payment info. Hope all is well. Politicians suck. Bye. Posts: 9,487
edited April 2010 in A Moving Train
Health care reform: What it means for XXXXXXX employees



Dear Colleagues,



As you know, President Obama signed the Patient Protection and Affordable Care Act (PPACA) into law on March 23 and a second bill, the Health Care and Education Reconciliation Act of 2010, on March 30. Known as a “reconciliation” bill, this latter bill consisted of changes to the PPACA that, together with the reconciliation bill, comprise the final health care reform law.



The following is a summary of the impact to XXXXXXX employees starting in 2011 and the immediate impact to the company, based on information currently available. We will continue to review developments and provide more information in the future as more details are finalized.



What federal health care reform will mean for XXXXXXXX employees in 2011



Many aspects of XXXXXXXX’s medical plans are already aligned with the new health care reform law. For example:

Our medical plans cover preexisting conditions.
XXXXXXX medical plan options don’t include annual or lifetime maximum benefits for in-network providers.
Generally, our medical plans cover routine preventive care at 100% in-network with no deductible.


The two main changes for XXXXXXXXX employees effective Jan. 1, 2011, are:

· Children up to age 26 who are not eligible for coverage under another employer’s medical benefit plan can be covered on a parent’s medical benefit plan regardless of student or marital status.

· Over-the-counter medications will no longer be eligible for reimbursement under health care flexible spending accounts (FSAs) or health savings accounts (HSAs) unless they’re obtained with a prescription. For example, over-the-counter Prevacid would only be an eligible FSA or HSA expense if it is prescribed by your doctor.



We will communicate more details about these changes this summer.



Immediate financial impact of health care reform on the company

XXXXXXXX’s cost of providing prescription drug coverage to Medicare-eligible retirees will increase significantly beginning in 2013 due to a tax provision change in the new law. However, employers are required to recognize the full accounting impact of the 2013 change now. Therefore, XXXXXXXX will incur a one-time non-cash charge of approximately $65 million in the first quarter of 2010. This charge will be excluded from XXXXXXX’s 2010 adjusted (non-GAAP) earnings.

Additionally, the reduction of these income tax deductions is estimated to increase XXXXXXX’s total annual income tax expense by approximately $10 million to $15 million.
Post edited by Unknown User on

Comments

  • __ Posts: 6,651
    OH MY GOD!!!! I can't believe they've done this to you and your company!!! The horror!!!!!!!!
  • CosmoCosmo Posts: 12,225
    I got one of those e-mails at work, too.
    Our plan remains pretty much unaffected.
    The company can no longer write off the medical coverage as a tax write off... $150 million. All this means is... corporations can no longer write off heatlh insurance coverage as a tax deduction. Private individuals NEVER were able to write off their insurance premiums, but corporations could for their employees.
    and if I have to include the health coverage that my company provides as income, that's fine with me. I've been rding this thing for free for the past 30 years. Health Insurance is a BENEFIT... it costs money... yet, I'm getting it for free. It SHOULD be included as part of my income and I SHOULD be liable for that. I know that I live in a world of reality and where there's no such thing as a free lunch.
    Allen Fieldhouse, home of the 2008 NCAA men's Basketball Champions! Go Jayhawks!
    Hail, Hail!!!
  • gimmesometruth27gimmesometruth27 St. Fuckin Louis Posts: 23,303
    so if you need prevacid, have a check up with your doctor, which for your plan per the email preventative care is no cost, and have him write a script for prevacid with enough refills for a year, bam, done...
    "You can tell the greatness of a man by what makes him angry."  - Lincoln

    "Well, you tell him that I don't talk to suckas."
  • unsungunsung I stopped by on March 7 2024. First time in many years, had to update payment info. Hope all is well. Politicians suck. Bye. Posts: 9,487
    We have a couple of people nearing retirement age that rushed out for knee replacements now because they are worried that they won't be able to get the work done after they retire.

    With all of the doctors coming out and saying they aren't going to take Medicare they have pretty good reason to think that way.
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