Eye On Washington: Health Care Reform
Updated: May 26, 2010
IRS Issues Guidance on Small Business Health Care Tax Credit
On May 17, the IRS issued new guidance to help small businesses determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance clarifies that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance, but also for add-on dental and vision coverage. More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the IRS Affordable Care Act page.
Business Group Joins the Health Care Reform Challenge
The National Federation of Independent Business (NFIB), the nation’s small business lobbying group, has joined 20 states in a federal court lawsuit challenging the new health care reform law because it violates their belief that employers should be able to run their own business affairs. In NFIB’s view, Congress does not have the authority to regulate inactivity (lack of health insurance) and feel the individual mandate requirement is in violation of the Fifth Amendment. The Obama administration countered by stating that the plaintiffs have no standing to sue because they cannot show they are likely to suffer any harm due to the provisions requiring coverage and that the provision is a valid exercise of Congress’ power to regulate interstate commerce.
Health and Human Services (HHS): High Risk Insurance Pool Program Information
Starting July 1, temporary high risk health insurance pools will help provide coverage to certain uninsured individuals with pre-existing conditions until state-based exchanges get underway in 2014. This HHS Fact Sheet gives initial information on eligibility, premiums, state roles, and funding of the high risk insurance program.
Looking Ahead:
Agency guidance on the "grandfathering" rule is anticipated to be released very soon.
In Case You Missed It:
The AARP Rx Watchdog report released this week found that the cost of prescription drugs most commonly used by those in Medicare rose nearly 10 percent in the past 12 months—the biggest spike in eight years.
Congressional Research Service released a report on May 7, analyzing the constitutionality of the recently enacted health care law that requires individuals to purchase health insurance.
Families USA issued a report, "Health Reform: Help for Americans with Pre-Existing Conditions," which presents the number of Americans with diagnosed pre-existing conditions who, absent reform, would be at risk of being denied coverage in the individual insurance market.
AARP released two fact sheets on changes to the Medicare Advantage and Medicare prescription drug benefit programs brought about by passage of the Patient Protection and Affordable Care Act.
ADP is committed to obtaining the most current information on health care reform to help ensure that our Benefits, HR and Payroll outsourcing solutions remain compliant with the changing laws while you focus on your business. This content is subject to change. We will continue to provide updates on this page through our partner, AON Consulting, as the situation continues to evolve.