Forum addresses healthcare changes for businesses
By Eileen Mellon, Special to the Citizen 08/06/12
The Supreme Court spoke loud and clear almost a month ago when it upheld the entire Affordable Care Act (ACA) as constitutional in a monumental decision that will affect businesses and individuals alike.
Businesses in the Richmond area are now left trying to decipher and understand the complexities of the bill and how it will affect them and insurance carriers.
“Whether you represent small, large, public or nonprofit entities, we’re all going to be effected as employers and consumers,” Greater Richmond Chamber of Commerce and BB&T Insurance Services of Virginia executive Seth Roth said during a panel discussion about healthcare reform July 19 at the Anthem Headquarters in Henrico.
The discussion, hosted by the Chamber to address the changes that come with the ACA, involved four leading experts who spoke on behalf of various health-related businesses to assist in the understanding of what the decision means and what local companies need to do to move forward.
The ACA essentially will make going without insurance something that is taxable by the government, while enlisting new laws that employers must comply with or face penalties. Many of the ACA changes have started to take effect this year.
Employers now will be required to complete W2 reporting on the cost of employer-sponsored group health care coverage.
For the W2 reporting a section will be added to box 12 to include a new code “DD” that reports the costs of employee sponsored healthcare coverage.
Anthem and other health insurers in Virginia already are dealing with the new laws, as rebate checks are being mailed to customers for not spending enough of health premiums on medical costs under some health plans.
The medical loss ratio rebates issued to consumers require insurance companies to spend a certain percentage of premium dollars on medical care and health care improvement. The rebates have to be distributed as taxable income to employers, said Susan Maley Rash, vice president at BB&T Benefit Consultants of Virginia.
Employers also must cover specific preventative health services for women with exceptions applying to religious employers. Employers also must have offer a $2,500 maximum contribution to healthcare flexible spending (FSA) plans and enlist new Medicare taxes, which will be increased by nine percent.
There also will be a tax on unearned income for high-income individuals and couples.
Opinions on law split
One of the ACA decisions that already has been implemented and will remain in effect is the requirement to cover adult children until age 26 and the requirement of non-grandfathered plans to cover certain preventative care services without cost-sharing.
By 2014, people may no longer be declined for pre-existing conditions, and there will be a modified community rating for small groups and individuals.
The rates will be based upon family tier, age, geography and tobacco use. The change is designed to decrease insurance rates for those who are older and increase rates for insured younger people.
“The healthcare reform laws were needed,” said Mckinley Tucker, CEO of Risk and Identity Solutions, a Henrico-based small business.
“We are the only industrialized nation without healthcare and I think people should try to get some of the emotion out of the issue and look at the positives,” Tucker said. “My daughter is 23 years old and was in the hospital over 20 times between Feb. 14 and now, and she has more pre-existing conditions than you could imagine. As a retired teacher, I was thinking about taking a job to help her pay for her insurance because it would go up. But with the new law she can stay on my insurance until 26 and I can keep her on the plan for as long as I can.”
Not everyone is so optimistic about the ACA; larger companies of 50 employees or more may have to deal with penalties.
Beginning in 2014, there will be an employer penalty for not offering minimum coverage, as well as an employer tax for not offering minimum coverage and an annual insurer fee for fully insured businesses.
If companies have less than 25 full-time employees who each make an average of less than $50,000, there is a credit allowable for a two-year period but only if coverage is purchased through the exchange.
“We will probably benefit from the new law,” said Charles E. McCabe, president and CEO of People’s Tax in Glen Allen. “I have about 15 full-time and 20 seasonal employees so we’re below 50 employees and will not be affected by the penalties, and we pay 50 percent of the employees’ health care now.”
Tax credits will help small businesses and nonprofit organizations, and the credits currently total as much as 35 percent of the businesses’ health premiums but will increase to 50 percent in 2014.
However medium to large businesses - those with at least 50 full-time employees - will not benefit because the “pay or play” penalty will be enacted. Certain employers that either don’t offer health care or do not meet the law’s test for affordability will face penalties.
It is possible that changes could be made to the ACA through future legislation or court rulings; however, the health care reform law is currently in effect and employers should continue to prepare for ACA changes that will become effective in the next two years. For answers to many of the big questions, carriers and employers will have to wait until after the election in November.
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“At Special Olympics Virginia, our vision is to inspire the first unified generation; a generation of people who respectfully include each other in the school, in the workplace, in the community,” said Rick Jeffrey, Special Olympics Virginia President. “Plunging this past Saturday included people with intellectual disabilities and those without; people of all ages, genders, races and religions; students and teachers; doctors and lawyers; military and law enforcement; one for all; all for one." > Read more.
CancerLINC's 11th annual "It’s in the Bag" event raised more than $50,000. The event, presented by Virginia Cancer Institute, was held at The Westin Richmond in Henrico Feb. 2 and was attended by more than 200 people.
“It's in the Bag” included handbag designer Thaddeus DuBois and his family from Syracuse, Ind. DuBois brought four handcrafted handbags, which were auctioned off and raised more than $4,000. Three autographed handbags from “Sex and the City” star Sarah Jessica Parker also brought funds. > Read more.
Citizen Staff Reports 02/28/2017 Features
Above, Varina’s Andre Watkins drives to the basket during the Blue Devils’ 52-51 win against Hampton in the Group 5A third-place game at Hermitage High School Feb. 25. Below, Tyrese Jenkins drives to the basket during the game. The Blue Devils (21-6 on the season), who earlier last month defeated Hermitage, 53-34, to earn a spot in the 5A state tournament, next will face Albemarle in that tournament. It is the program’s first trip to the state tournament since 2001 and first under fourth-year coach Andrew Lacey, who has turned around a team that was 6-14 during his first season. > Read more.
For the past two months, they showed up every day at the state Capitol, dressed in matching blazers and carrying pen and paper at the ready – the next generation of public servants carefully observing their superiors.
These young adults are known as pages. They are middle school and high school students from around Virginia who assist in everyday tasks at the General Assembly to experience firsthand how the legislative process works.
The program dates as far back as 1850, when the one page who worked was paid $2 a day. > Read more.
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St. Joseph's Villa’s Flagler Housing & Homeless Services was one of three entities to earn the National Alliance to End Homelessness' Champion of Change Award. The awards were presented Nov. 17 during a ceremony at the Newseum in Washington, D.C.
NAEH annually recognizes proven programs and significant achievements in ending child and family homelessness.
Flagler completed its transition from an on-campus shelter to the community-based model of rapid rehousing in 2013, and it was one of the nation's first rapid re-housing service providers to be certified by NAEH. > Read more.
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Entertainment Dec. 12 will be provided by the Laburnum Elementary School choir and the Henrico High School Mighty Marching Warriors band. Tree decorations crafted by students from Laburnum Elementary School and L. Douglas Wilder Middle School will be on display. Hot chocolate and cookies will be supplied by the Henrico High School football boosters. > Read more.
Given the warm weather lately, Saturday’s RVA Polar Plunge Winter Fest, benefiting Special Olympics Virginia, might actually be enjoyable! Other weekend events you’re sure to enjoy include the 14th annual Richmond Kids Expo at the Richmond Raceway Complex, the Richmond Symphony and The Taters in concert at The Cultural Arts Center at Glen Allen, and the Richmond Ballet Minds in Motion Team XXL performing at the Henrico Theatre. This is also the last weekend to check out HATTheatre’s production of “Bill W. and Dr. Bob.” For all our top picks this weekend, click here! > Read more.
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CalendarThe Henrico County Community Author Showcase, a program that connects writers and readers in the community, will begin at 7 p.m. and continue on the second Monday and every Thursday of the month at various libraries. Ariel Wilkerson will share her children’s book “Riley and How It All Started” at Fairfield Library. For details, visit http://www.henricolibrary.org/authors. Full text