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Despite Legal Challenges To Health Care Reform Law, CUs Urged To Move Forward
NEWS RELEASE:
From CUNA Mutual Group Public Relations
www.cunamutual.com
For more information:
Phil Tschudy 608/231-7188 philip.tschudy@cunamutual.com
Rick Uhlmann 608/231-8940 rick.uhlmann@cunamutual.com
AUSTIN, Texas – Although legal challenges abound over the The Patient Protection and Affordable Care Act, CUNA Mutual’s Brad Pricer told a Texas Credit Union League Annual Meeting audience Wednesday, to proceed with changes required by the law.
Passed just more than one year ago, the Health Care Reform Law as it’s better known is mandating some of the most sweeping changes for health and welfare plans seen in decades, said Pricer, CUNA Mutual senior manager of Employee Benefits Product Management.
Legal challenges over the law, however, have left some employers unsure how to proceed with mandated changes. A recent federal court decision in Florida found the Health Care Reform Law to be unconstitutional. “There are approximately 25 lawsuits filed by numerous states challenging the constitutionality of various provisions of the health care reform laws creating much political discussion and an uncertain path for business owners and employees,” Pricer said.
Despite the law being in legal limbo, Pricer stressed that employers should begin and/or continue compliance efforts. “The decision in Florida clearly states that the health care reform laws are still in effect. It is important to understand that this decision is not settled as appeals are almost certain to take place.”
Encouraging a full-speed-ahead approach, Pricer, highlighted some of the key provisions of the Health Care Reform Law that are slated to go into effect in 2011.
- Consumer rebates for excessive medical loss ratios are available
- Employers may optionally report health coverage costs on form W-2
- “Qualified Medical Expenses” now conform to the definition used for the itemized tax deduction
- Employees need a prescription to be reimbursed for over-the-counter medications/supplies run through their health FSAs, HRAs, HSAs and Archer MSAs
- A Simple Cafeteria Plan is created to provide small businesses an easier way to sponsor a cafeteria plan
- Medicare Part D discounts are instituted
- Grants for wellness programs are established
With all of the required changes, many credit union HR directors and their staffs are feeling a bit overwhelmed with the complexities associated with understanding and accurately applying the new health care reform laws, Pricer added. “They are being inundated daily with paperwork, forms, compliance mandates and deadlines and don’t feel they have ample time or manpower to manage it effectively. But it’s a challenge you don’t have to take on alone.”
Pricer encouraged attendees to use the many available programs, products and resources from CUNA Mutual to help navigate health care reform with confidence. These include:
- Easily accessible online tools —timelines, legislative briefs, model notices and forms available at www.cunamutual.com/HealthCareReform
- Answers and personal assistance from CUNA Mutual’s Employee Benefits Advocacy Center
- Personalized consultation from employee benefits professionals
“Collaborate,” The 77th Annual Texas Credit Union League Meeting and Expo runs through Thursday, at the Hilton Austin.
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