Dearborn County Chamber of Commerce

(This is a reprint from the U.S. Chamber of Commerce: Download the PDF )

NEW BURDENS ON EMPLOYERS IN H.R. 3200

• All employers with total payroll over $250,000 will be required to provide “Qualified Health Benefits” for their employees and their dependents or pay a pay-roll tax of up to 8% of payroll.
• Further, employers will be required to pay 72.5% of premiums for their employees.
• Requirement to provide dependent coverage (and pay 65% of premiums).
• Government-run public health insurance plan will increase cost-shift burdens on employers and destabilize private insurance coverage.
• No annual or lifetime limits on coverage for all health plans.
• New provider network adequacy requirements on all health plans.
• New minimum actuarial value requirements on all health coverage.
• After 5 years all plans will also be required to meet the “qualified health plan” definition – ERISA plans will no longer have design flexibility.
• Flexible Spending Accounts (FSAs), Health Spending Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) will no longer be eligible for over-the-counter medical purchases.
• Mental health parity required for ALL employers (including 50 and under which were carved out).
• New onerous record keeping requirements on employers.
• Maintenance of effort mandate for retiree health benefits (added in Education & Labor Committee).
• Expansion of COBRA coverage until insurance exchanges are implemented (added in Education & Labor Committee).
• Premium tax on all participants in fully-insured and self-insured plans to fund comparative effectiveness research program. (new tax).