Solutions for a Superior Workplace Health Care Reform What are my options? Presented by: Patrick Pennefather, CLU, ChFC, CEBS, LUTCF Client Manager David Gangi Account Executive

Solutions for a Superior Workplace | Happening Right Now! 2 The United States Supreme Court Ruling expected by the end of June, 2012 Potential Outcomes Entire law is unconstitutional: individual mandate is NOT severable Individual mandate is unconstitutional, but severable – all other PPACA provisions remain the law to be implemented Entire law is constitutional Regardless which outcome occurs: employers must deal with massive changes in the industry.

Solutions for a Superior Workplace | In Addition to the Supreme Court Ruling 3 Defining Full-Time Employees: PPACA currently defines full-time employees as working 30 hours per week Impact on determination of large employer status and corresponding coverage and penalty requirements Impact on future automatic enrollment requirements DOL Department of Treasury and HHS have asked for comments on determining full-time employees Look back provision

Solutions for a Superior Workplace | In Addition to the Supreme Court Ruling 4 We are one renewal away from full implementation of Health Care Reform

Solutions for a Superior Workplace | Massive Changes for Employers 5 Now2014 and Beyond Health care obtained through employers Health care obtained through employers, government, and direct Group coverage Individual coverage is an option: employer, state, free market Buy insurance through employer Buy insurance through exchanges (public and private), and through employer Coverage regulated by states, but doesnt apply to all plans Federal government regulates coverage levels and mandates affordability No premium regulation Mandate how much of premium must be spent on medical care No federal taxes or fees Taxes/Fees Employers regularly provide coverage Employers have to decide whether to pay or play

Solutions for a Superior Workplace | What are my Options? 6 The prudent course of action is to plan to implement those changes However: Still anticipate a significant amount of future regulations and/or guidance Difficult to predict what will be included Difficult to predict law changes Difficult to predict outcome of the US Supreme Court case

Solutions for a Superior Workplace | What is the Best Strategy? Options Play by PPACA rules Play and reduce coverage Play and pay unaffordability penalty Pay and drop coverage Pay and increase salaries Pay geographically Pay via private exchanges

Solutions for a Superior Workplace | What Employers Need to Do... 8 All employers need to decide whether to pay or play Develop a solid multi-year health care strategy Re-evaluate frequently as landscape continues to change Employee communication is critical

Solutions for a Superior Workplace | Health Care Reform. What are the Options? 9 Questions???