The Affordable Care Act was signed into law March 23, 2010. This legislation puts in place comprehensive health insurance reforms that are scheduled to roll out over a four year period with most changes taking place by 2014. The following resources are available to inform members of the Texas Employees Group Benefits Program (GBP) about changes currently in place and the future impact of the law.
A timeline of the law can be found on this website managed by Higginbotham. This timeline provides a comprehensive overview of the Affordable Care Act. A complete summary of the law can be read at HealthCare.gov.
Key Components Effective January 1, 2014
· Individual Exchange - Mandates that all Americans, with some exceptions, maintain minimal essential coverage or face a tax. When the individual mandate takes affect all Americans who file income tax returns must complete an additional IRS tax form.
· Insurance Exchange - Establishes new state-based insurance Exchanges through which individuals and small employers can purchase health insurance. Low and moderate income individuals (those with incomes between 100% and 400% of the federal poverty level) that do not have access to affordable employer-sponsored insurance will be eligible for federal premium tax credits and subsidies toward private insurance through and Exchange. Texas has chosen not to participate in a state insurance exchange.
· Medicaid Expansion - States may expand Medicaid eligibility to individuals up to 133% of federal poverty level. Texas has chosen not to participate in a Medicaid Expansion.
· Employer Mandate - Employers with the 50 or more full-time employees (or the equivalent when considering part-time and seasonal employees) must provide all full-time employees with affordable health insurance coverage of at least a minimum value. Employers that fail to do so must pay a tax penalty if any of its full-time employees obtain Exchange coverage and a federal premium tax credit. The penalty may be as high as $2000 per full-time employee. Employees who work 30 hours per week could be considered full time under the act.
CUPA (Colleges and Universities Professional Association for Human Resources) provides up to the date information regarding the law. The most current and debated issue is related to part time employees and their eligibility for full time insurance. At this time clear guidence has not been provided by the IRS. The Office of Human Resources monitors various organizations and agencies such as CUPA, ERS, and the IRS daily for current information. CUPA will provide the most up to date information as it relates to higher education.
page updated 6/13/2013 10:27 AM