Health care reform continues to be a dynamic and evolving landscape, significantly impacting employers and employees alike. Staying informed about the latest updates is crucial for ensuring compliance and optimizing your benefits strategy. Here, we’ll highlight recent changes and what they mean for your business.
Recent Legislative Changes
1. American Rescue Plan Act (ARPA)
The American Rescue Plan Act, passed in 2021, introduced several temporary provisions affecting health care, including:
- COBRA Subsidies: ARPA provided a 100% COBRA premium subsidy for eligible individuals from April to September 2021. While this provision has expired, it underscored the importance of supporting employees during times of transition.
- Dependent Care Assistance: The Act temporarily increased the limit for dependent care flexible spending accounts (FSAs) from $5,000 to $10,500 for 2021, allowing greater pre-tax savings for child care expenses.
2. No Surprises Act
Effective January 1, 2022, the No Surprises Act aims to protect individuals from surprise medical bills. Key provisions include:
- Emergency Services: Out-of-network emergency services must be billed at in-network rates.
- Air Ambulance Services: Limits on out-of-network charges for air ambulance services.
- Notice and Consent: Requirements for providers to give notice and obtain consent for out-of-network care in non-emergency situations.
Ongoing Developments
1. Affordable Care Act (ACA)
The ACA continues to influence health care policy with ongoing adjustments. Notable updates include:
- Marketplace Subsidies: Enhanced premium subsidies for health insurance marketplace plans, making coverage more affordable for many individuals.
- Employer Mandate: Enforcement of the employer mandate requiring businesses with 50 or more full-time employees to provide health insurance or face penalties.
2. Medicare and Medicaid Expansion
Several states are considering expanding Medicaid under the ACA, which could affect employers by increasing the number of insured individuals and potentially reducing uncompensated care costs.
What Employers Should Do
1. Review and Update Policies
Ensure your health benefits policies are up-to-date with the latest legislative changes. This includes reviewing your COBRA administration processes and compliance with the No Surprises Act.
2. Communicate with Employees
Keep your employees informed about changes that may affect their health care coverage and costs. Clear communication helps employees make informed decisions during open enrollment and other critical periods.
3. Leverage Technology
Consider using benefits administration software to streamline compliance and reporting. Technology can help manage complex requirements and reduce administrative burden.
4. Consult with Experts
Engage with benefits consultants or legal advisors to navigate the complexities of health care reform. Expert guidance ensures your business remains compliant and optimizes its benefits offerings.
Looking Ahead
Health care reform is an ongoing process with potential for further changes in the near future. Employers should stay vigilant and proactive in monitoring legislative updates. By doing so, you can better manage your benefits strategy, support your employees, and ensure compliance with evolving regulations.
At Cypress Benefit Solutions, we are committed to helping you navigate the complexities of health care reform. Contact us today to learn how we can assist you in optimizing your benefits package and staying compliant with the latest changes.
