Solutions for a Superior Workplace Health Care Reform

Solutions for a Superior Workplace Health Care Reform What are my options? Presented by: Patrick Pennefather, CLU, Ch. FC, CEBS, LUTCF Client Manager David Gangi Account Executive

Solutions for a Superior Workplace | Happening Right Now! The United States Supreme Court Ruling expected by the end of June, 2012 Potential Outcomes § Entire law is unconstitutional: individual mandate is NOT severable § Individual mandate is unconstitutional, but severable – all other PPACA provisions remain the law to be implemented § Entire law is constitutional Regardless which outcome occurs: employers must deal with massive changes in the industry. 2

Solutions for a Superior Workplace | In Addition to the Supreme Court Ruling Defining Full-Time Employees: § PPACA currently defines full-time employees as working “ 30 hours per week” § Impact on determination of “large employer” status and corresponding coverage and penalty requirements § Impact on future automatic enrollment requirements § DOL Department of Treasury and HHS have asked for comments on determining “full-time employees” § Look back provision 3

Solutions for a Superior Workplace | In Addition to the Supreme Court Ruling We are one renewal away from full implementation of Health Care Reform 4

Solutions for a Superior Workplace | Massive Changes for Employers Now § Health care obtained through employers, government, and direct § Group coverage § Individual coverage is an option: employer, state, free market § “Buy” insurance through employer § Buy insurance through exchanges (public and private), and through employer § Coverage regulated by states, but doesn’t apply to all plans § Federal government regulates coverage levels and mandates affordability § No premium regulation § Mandate how much of premium must be spent on medical care § No federal taxes or fees § Taxes/Fees § 5 2014 and Beyond Employers regularly provide coverage § Employers have to decide whether to “pay or play”

Solutions for a Superior Workplace | What are my Options? § The prudent course of action is to plan to implement those changes § However: - Still anticipate a significant amount of future regulations and/or guidance - Difficult to predict what will be included - Difficult to predict law changes - Difficult to predict outcome of the US Supreme Court case 6

Solutions for a Superior Workplace | What is the Best Strategy? 2014 Options § § § § 7 Play by PPACA rules Play and reduce coverage Play and pay unaffordability penalty Pay and drop coverage Pay and increase salaries Pay geographically Pay via private exchanges

Solutions for a Superior Workplace | What Employers Need to Do. . . § All employers need to decide whether to “pay or play” § Develop a solid multi-year health care strategy § Re-evaluate frequently as landscape continues to change § Employee communication is critical 8

Solutions for a Superior Workplace | Health Care Reform. What are the Options? Questions? ? ? 9