President Obama signed into law on March 23, 2010 H.R. 3590, the Patient Protection and Affordable Care Act. This sweeping and controversial reform law includes many provisions that will impact employers, employees and individuals. Many of the Reform Act’s provisions take effect in 2013, 2014, or later years, or are gradually phased in. Some provisions, however, become effective immediately or within a short time.

AMERICAN INSURANCE is your resource for medical insurance products and information. Our Benefits Department is here to help employers, individuals and retirees manage the cost and select the best insurance plans from among the many insurance companies we represent. For more information we invite you to call: Tim Gleason, Benefit Department Manager 208-746-9646 or 800-735-6355.

• A temporary national high-risk pool will go into effect within 90 days of enactment.
• Restrictions on insurers regarding lifetime limits, excessive waiting periods (over 90 days), rescissions, and pre-existing condition exclusions for children.
• Limitations on insurers’ ability to impose annual limits on the dollar value of coverage as determined by the Secretary of Health and Human Services.
• New insurance must pay the full cost of specified preventive care.
• Children can stay on their parents’ insurance policies until they are 26.
• Starting in 2011, health insurers must make rebates to enrollees if loss ratios are lower than specified levels.
• Effective January 1, 2011, contributions to employee flexible spending accounts will be limited to $2,500 per year.

Source: Proskauer Rose LLP, excerpt from Heath Care Reform Has Arrived/client alert March 23, 2010.