Product Manager's Corner

Sage & Health Care Reform

Sage is closely monitoring the changes in Health Care Reform and its impact to our customers.

The Patient Protection and Affordable Care Act (PPACA) will:

• Eliminate lifetime and unreasonable annual limits on benefits
• Prohibit rescissions of health insurance policies
• Provide assistance for those who are uninsured because of a pre-existing condition
• Require coverage of preventive services and immunizations
• Extend dependent coverage
• Develop uniform coverage documents so consumers can make apples to apples comparisons when shopping for health insurance
• Cap insurance company non-medical, administrative expenditures

What impact does PPACA have on employers in 2012?

• Employers who filed 250 or more W-2 forms in 2011 must report the total value of the combination of all health related insurance policies (medical, dental, and vision) in Box 12 Code DD.
• Employers who filed less than 250 W-2 forms in 2011, are not required to report health insurance totals in Box 12 Code DD on the 2012 W2 form. Smaller employers can optionally report this information on their employees W-2 forms.
• For open enrollment periods beginning on or after September 23, 2012, a Summary of Benefits and Coverage (SBC) is required to be in effect. Employers must have the SBC in place not only for the plan an employee is enrolled in, but for all plans that employee is eligible.
• SBC's are meant to benefit employees by creating “clear, understandable and straightforward information on what health plans will cover, what limitations or conditions will apply, and what they will pay for” according to the US Department of Health and Human Services. Note that steep fines apply to those who fail to comply, ranging from $100 to $1,000 per employee.

What impact does PPACA have on employers in 2013?

• Medicare Tax Increase on High Earners
• New Medicare Tax on the Net Investment Income
• Reduced Health FSA Deferall Limits
• Fair Labor Standards Act Amendments

Where can I get more information?

• U.S. Deparment of Labor (www.dol.gov)
• The Internal Revenue Service(www.irs.gov)
• IRS Notice 2012-58
• Sage Employer Resources

Sage Business Care Gold customers receive a free membership to Sage Employer Resources and can access this award winning online human resources and benefits library via Sage Source. Sage Employer Resources provides Health Care Reform information that’s easy to understand and explore.

Learn more and take a video tour of the Sage Employer Resources portal at www.sageemployerresources.com and www.sagesource.com.