2010 Health Care Reform Timeline

Measure

Effective Date

Insurance companies no longer deny coverage to CHILDREN with pre-existing conditions

within 6 mos

Insurance companies prohibited from imposing lifetime maximums

within 6 mos

Insurance companies cannot rescind coverage for health reasons

within 6 mos

Grants for wellness programs for small employers

within 6 mos

Mandated coverage of specific preventive services with no cost sharing

within 6 mos

10% tax will be imposed on amounts paid for indoor tanning services

within 6 mos

New high-risk pool for people with pre-existing conditions

within 90 days

Expand dependent age to up to age 27 (through age 26)

within 90 days

Seniors will get a $250 rebate to help fill the "doughnut hole" in Medicare Rx coverage

within 1st year

A temporary reinsurance program will help offset costs of coverage for companies that provide early retiree health benefits for those ages 55 to 64

within 1st year

Tax credit of 35% of premiums (increasing to 50% by 2014) for small employers with payrolls averaging less than $50k/yr per employee

within 1st year

Elimination of employer deductible subsidy under Medicare Part D

2011

Medicare will provide free annual wellness visits. New plans will be required to cover preventive services with no copay

2011

50% discount for brand-name drugs for PDP or Medicare Advantage enrollees. Additional discounts phased in to close the "doughnut hole" by 2020

2011

A vehicle for small businesses to offer tax-free benefits will be created, easing small employer's administrative burden of sponsoring a cafeteria plan

2011

Prohibits over-the-counter drugs as eligible expense in HSAs, HRAs, and FSAs

2011

Medicare payroll tax will increase from 1.45% to 2.35% for individuals earning more than $200,000 and married couples earning more than $250,000

2011

Increases penalty for non-eligible distributions from HSAs from 10% to 20%

2011

Limits FSA contributions for medical expenses to $2,500

2013

Employer Medicare Part D subsidy deduction will be eliminated. Employers will lose the tax deduction for subsidizing Rx plans for Medicare Part D eligible retirees

2013

Increases to the income threshold from 7.5% to 10% of adjusted gross income. Those older than 65 can claim 7.5% deduction through 2016

2013

Hospital insurance tax will increase 0.9% for those earning more than $200,000 (or $250,000 for married couple); includes net investment income

2013

A 2.9% excice tax on the first sale of medical devices will be established. Excepted are eyeglasses, contacts, hearing aids and other items for individual use

2013

Insurance companies no longer deny coverage to ANYONE with pre-existing conditions

2014

Insurance companies prohibited from varying rates based on health status, gender, or other factors

2014

Individual mandate - you must have insurance or pay a penalty of $95 in 2014, $325 in 2015, $695 (or up to 2.5% of income) in 2016. Families pay half the amount for children, up to a cap of $2,250 per family. After 2016, penalties are indexed to CPI

2014

Workers who are exempt from individual responsibility but don't qualify for tax credits can take their employer contribution and join an "exchange" plan

2014

Larger employers must cover workers or pay a penalty of $2,000 per employee (after the first 30 employees) if at least one of their employees receives a tax credit.

2014

Employer waiting periods before insurance takes effect are limited to 90 days

2014

Employers who offer coverage but whose employees receive a tax credit will pay $3,000 for each employee receiving a tax credit

2014