PPACA and the Self-Funded Plan

by Julie Knudson

Editor’s Note: This is Web-only bonus coverage from “Is Self-Funding Right for You?” in the October 2012 issue of CUES’ Credit Union Management.

The Patient Protection and Affordable Care Act continues to get a lot of press, but Elizabeth Jimenez, SPHR, VP/human resources and organizational development at $562 million/54,000-member Tropical Financial Credit Union, with 185 full-time equivalents in Miramar, Fla., says she doesn’t expect the legislation will have much impact on credit unions with self-funded health plans. Minimal changes may include tweaking the CU’s forms to comply with new formatting requirements. Also a handful of benefits will either be mandated or changed.

“Women’s preventive healthcare will mean some expense, but I think our organization is fine with that,” Jimenez says. “It’s not going to be major, because our plan itself is already pretty robust.” Decreasing flexible spending account limits will also have an impact, but Jimenez says she’s looking for alternatives to make up for it.

Plans that were formed before March 2010 are generally grandfathered, exempting them from many of the new regulations PPACA has imposed on health insurance carriers, says Michael W. Ferguson, chief operating officer of the Self-Insurance Institute of America, Inc. www.siia.org, Simpsonville, S.C.

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