What Should Human Resources Be Doing to Prepare for Health Care Reform?

Health care reform passed in March 2010. Feeling a bit panicky about how it will affect your workplace? You're not alone. In the coming months, you should be guide HR in preparing for required changes needed to comply with the Patient Protection and Affordable Care Act (PPACA).

Here are a few reminders of some things you should already be putting (or have) in place:

• Remember that employers are now required to give nursing mothers a break “each time such employee has the need to express the milk” for one year after a child's birth. More details can be found in the following article: Nursing Mothers Get Break(s) Under New Federal Law (http://www.foley.com/publications/pub_detail.aspx?pubid=7017).
• The PPACA expanded the definition of “dependent child” by requiring coverage for adult children until age 26. We reported on IRS guidance that has been released on this issue in our firm's Tax & Employee Benefits Legal News Alert in May. More details can be found in the following article: PPACA Early Retiree Reinsurance Program (http://www.foley.com/publications/pub_detail.aspx?pubid=7107).
• Within six months after enactment of the PPACA, all existing health insurance plans must prohibit lifetime limits, prohibit rescissions, restrict annual limits, and include limitations on excessive waiting periods.
• Employers with more than 200 employees must automatically enroll employees in health insurance plans offered by the employer, allowing for an employee opt-out. Effective date on this provision is not yet known.

Issues That Will Affect You in the Future

• Businesses with fewer than 100 employees will have access to state health insurance exchanges starting in 2014. These exchanges are designed to help smaller businesses enroll their employees in small group qualified health benefits plans. More details can be found in the following article: Will Proposed Health Insurance Exchanges Work and Be Affordable?(http://www.foley.com/publications/pub_detail.aspx?pubid=7033)
• Beginning in 2011, employers must report the value of employees' health benefits on W-2 Forms.
• Beginning in 2014, group health plans must prohibit pre-existing condition exclusions and prohibit annual limits.
• Beginning in 2014, employers with more than 50 full-time employees (FTE) that do not offer health insurance will need to pay a penalty of $2,000 per FTE.

It is important for employers to keep abreast of the changes so that they can maintain the health of their HR compliance.

John S. (Jack) Lord Jr. is a partner in the Orlando office and Jean C. Kosela an associate in the San Francisco office of Foley & Lardner LLP. Both are members of the firm's Labor & Employment Practice. They can be reached at [email protected] and [email protected] repsectively.