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Employer Mandates and New Penalties Under PPACA

The U.S. Chamber of Commerce has released a white paper to serve as a guide for the business community on understanding and complying with the Patient Protection and Affordable Care Act (“PPACA”). This paper, Critical Employer Issues in the Patient Protection and Affordable Care Act, identifies several taxes and penalties that can be levied against employers if they are unable to provide minimum health care coverage levels that have yet to be determined. While this paper is an attempt to shed light on pieces of the new law, it is not intended to be a substitute for the legal counsel, benefits consultants or in-depth analysis that individual businesses will need to ensure compliance.

The full text of the white paper can be found on our site by clicking here.

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Blue Cross Rescission/Retroactive Termination Rules

Under PPACA, group health plans that cover dependents must extend that coverage to “adult children” until age 26. Since an HRA is considered a group health plan in this context, this coverage mandate will apply as of the first plan year beginning on or after September 23, 2010.

Each employer sponsoring an HRA should determine whether this coverage mandate applies to its HRA plan, since there are exceptions for stand-alone vision or dental and retiree-only plans and others. Employers may decide to increase their contribution amounts to correspond to the additional individuals to be covered by the HRA.

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