News Alert: For Immediate Release

As you are aware, the House of Representatives passed the Senate health care bill and a reconciliation bill on Sunday, March 21, 2010. This bill has significant implications for employers who offer health care benefits and the employees and families covered by those plans.

We know you have a lot of questions and concerns about health care reform and how the legislation will impact your benefits. We have been closely following the health care reform legislation and the implications for employer-sponsored health care and benefits.

Listed below are some of the package's provisions that will affect employers:

• Employer Mandates. Effective in 2014, most employers with 50 or more employees must offer coverage to employees. Employers who do not do so may be subject to hefty penalties. The benefit plans offered will also have to meet certain requirements.
• Individual Mandates. Citizens and legal residents will be required to have a certain level of health coverage, or pay a tax penalty. These rules could restrict the usage of high deductible health plans and will decrease the chance that your employees will decline coverage under your plan.
• Coverage Subsidies. Small employers that provide health insurance for employees will be eligible for a tax credit. Also, employers who provide insurance to retirees over age 55 who are not eligible for Medicare are eligible for a temporary reinsurance program.
• Health Benefit Exchanges. In 2014, state exchanges will be established for small businesses and individuals to shop for health insurance. Larger businesses will be able purchase coverage in the exchanges in the future.
• Insurance Reforms. These reforms require policies to provide dependent coverage for children through age 26. They prohibit lifetime coverage limits, rescission of coverage except in cases of fraud, and imposing pre-existing condition exclusions on children. Many of these provisions will take effect in 2010. They may affect your benefits and how you administer your benefit programs.

Gowrie Group Can Help You Get Ready for Changes

Health care reform will almost certainly involve sweeping changes to the benefits you provide your employees and how you provide them. However, it will most likely affect each business differently. Gowrie Group will review your company's current employee benefits to make sure you are prepared for the changing landscape. We will work with you to maximize the value of your employee benefits and minimize your costs and risk. As always, we will continue to monitor the developments regarding health care and keep you informed.

Please contact your Gowrie Group employee benefits representative at 800.262.8911 with any questions.

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