1. Benefits Update Health Care Reform July 2010

2. Stanford University Confidential – Do Not Reproduce Page 1  Plans must provide coverage for children to age 26  Plans may not impose lifetime limits  Coverage for preventive services at no cost Health Care Reform – 2011 Changes

3. Stanford University Confidential – Do Not Reproduce Page 1 Health Care Reform – 2011 Changes  Over-the-counter medicines will not be eligible for reimbursement from FSA, HSA, unless obtained with a prescription  Medicare reimbursements for “fee -for -service” providers reduced over time  Beginning of phased in reductions in payments to Medicare Advantage (HMO) plans

4. Page 3 Health Care Reform – 2013 Changes  Flex spending accounts capped at $ 2,500/year  New tax on unearned income  New tax on medical devices  Doubling of tax penalty on withdrawals from HSAs for reasons other than the reimbursement of qualified medical expenses  Form W-2 will show value of each employee’s health coverage

5. Page 4 Health Care Reform – Future Years 2014  Wellness incentives will increase from 20% to 30% of plan costs  New taxes on health insurance plans 2018  40% Excise Tax on High Cost Health Plans (Cadillac plans) for coverage that exceeds $10,200 for single and $27,500 for family