In a 5-4 decision, the U.S. Supreme Court upheld the constitutionality of the Affordable Care Act (Act), with the exception of part of the Medicaid expansion. Now that the Court has upheld the law, employers should work on the implementation of the provisions of health care reform that are effective beginning in 2012 and 2013.

Some of the provisions that employers must focus on for 2012 and 2013:

Effective in 2012:

1. W-2 reporting of the aggregate cost of employer-sponsored health coverage.
2. Summary of Benefits and Coverage (SBC) (include in open enrollment materials for 2013).
3. Advance Notice of Material Modification must be given to participants at least 60 days in advance of the effective date of any change that affects the SBC.
4. Patient-centered outcomes trust fund fees, based on the number of lives covered, by the plan.

Effective in 2013:

1. Cap of $2,500 on salary reduction contributions for health FSAs.  (See Our Article)
2. The Medicare Part D subsidy deduction will be eliminated.
3. Written notice describing the insurance exchanges and their potential eligibility for premium credits must be given to employees.
4. HIPAA electronic transaction rules apply to group health plans.

While more challenges to the Act may be coming, employers should proceed with implementing the various provisions of health care reform under the assumption that the provisions will remain valid.

If you have any questions regarding the Affordable Care Act, please contact your Nyhart consultant.

This article was last updated on July 11, 2012