by
Astrid Fiano, DOTmed News Writer | September 09, 2010
Tax Changes
--Effective Jan. 1, 2018, an excise tax will be imposed on health insurance companies and plan administrators for any so-called Cadillac plan that is above the threshold of an annual cost of $10,200 for individual coverage and $27,500 for family plans. The tax will be applied to the premium amount above the individual or family threshold. There is a higher threshold level allowed for employers who have higher costs due to age and gender demographics.
In other health reform news, HHS has released guidance on a waiver for insurance companies regarding the restriction of annual limits on the dollar value of health benefits in an individual market plan that was part of the Affordable Care Act. HHS may waive the restricted annual limits if compliance would result in a significant decrease in access to benefits or a significant increase in premiums.
The waiver only applies to plans or coverage offered before Sept. 23, 2010, for the plan or policy year beginning between Sept. 23, 2010 and Sept. 23, 2011. The issuer must submit an application at least 30 days before the beginning of the plan or policy year, or in the case of a plan or policy year that begins before Nov. 2, 2010 at least 10 days before. The application must include the terms of the plan or policy forms for which a waiver is sought; the number of individuals covered in the plan; the annual limits; and a brief description of why compliance with the interim final regulations would result in a significant decrease in access to benefits for those currently covered, or a significant increase in premiums paid by those covered by the plans.
More on the guidance can be found at http://www.hhs.gov/ociio/regulations/patient/ociio_2010-1_20100903_508.pdf
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