Taking the Pulse of Healthcare Reform
When someone mentions healthcare reform what exactly are they referring to? This term has become synonymous with The Affordable Care Act that was signed into law March 2010 by President Obama. The law, which rolls out over the next few years with most changes occurring in 2014, is a common topic in America’s boardrooms as companies develop their strategic plans for future growth. The decisions made in these boardrooms over the next few years will provide the backdrop for the future of healthcare coverage in the workplace.
The law was designed with the intention that medical coverage will not only become affordable for every American, but by 2014 each American will be required to have coverage. In addition, employers will be faced with the “Pay or Play” decision in 2014, which simply means that employees will either be provided healthcare by their employer (the Play option) or coverage will have to be purchased through an Exchange on an after tax basis (the Pay option). If employers choose to “Pay” rather than “Play”, employees will be forced to purchase healthcare coverage somewhere else.
The most recent changes that took place in 2011 include coverage for children up to the age of 26, removal of lifetime maximums from existing and new medical plans and no cost sharing for preventive healthcare. In addition, the exclusion of over the counter drugs paid by Flexible Spending accounts was enacted.
Going forward in 2012 employers will be required to report the value of employee health coverage on individual W2’s. The plan value will not be included as taxable income for employees. This W2 reporting is a tracking mechanism and was designed to support the 40% excise tax employers with high cost plans will be subject to in 2018. Employers will want to take a proactive approach and discuss these W2 requirements with their payroll providers to ensure they are planning for these upcoming changes.
As 2014 draws closer, the debate in Congress continues over healthcare reform. The issue is bipartisan and some organizations are jumping on the bandwagon by filing lawsuits claiming the law is unconstitutional. Whatever the outcome, the next few years are going to be very interesting as organizations decide whether or not to use a health plan as a competitive advantage in attracting top talent.
IRS Announces 2012 Contribution Limits
The Internal Revenue Service (IRS) and the Social Security Administration (SSA) have issuedthe cost of living increases for qualified retirement plans for 2012. The 401(k) elective deferral limit (i.e. 402(g)) has increased for 2012, but the catch-up contribution limit has remained unchanged.
Highlights of the limits for 2012 include the following:
- 401(k) elective deferral limit - $16, 500 in 2011 to $17, 000 in 2012
- Catch-up contribution limit - $5,500 in 2011 to $5,500 in 2012
- Section 415 limit (DC) - $49,000 in 2011 to $50,000 in 2012
- Section 415 limit (DB) - $195, 000 in 2011 to $200,000 in 2012
- Section 401(a)(17) includible compensation - $245, 000 in 2011 to $250,000 in 2012
- HCE definition - $110,000 in 2011 to $115, 000 in 2012
- Key employee definition - $160,000 in 2011 to $165,000 in 2012
- FICA taxable wage base - $106, 800 in 2011 to $110,100 in 2012
The full press release from the IRS announcing this year’s contribution limits can be found here.
Helios Participates In SHRM Day On The Hill
On Wednesday November 30, 2011, one of our HRBP/Senior Talent Acquisition Consultants, Matt Walker, gratefully joined the SHRM Advocacy Team on the Hill for the day to help inform legislators on how current public policy issues can affect employees, employers, and the HR profession as a whole. The SHRM Advocacy Team initiative is designed for HR professionals to participate and influence federal public policy and regulatory efforts. SHRM understands how vital member participation is to advancing the views of the profession on Capitol Hill and provides members with opportunities to “put a face” behind HR and to let their voices be heard.
Looking for information on SHRM’s Advocacy Team? SHRM A-Team
Happy Thanksgiving
On this day, the day before the Thanksgiving holiday as I reflect– I realize how much I personally have to be grateful for. It’s been an incredible year, both personally and professionally. I am reminded by a quote I have read from G.B. Stern, “Silent gratitude isn’t much use to anyone.” I share my thoughts of gratitude for each of you, with each of you. Helios would not be able to make the impact that it does, without your support. Thank you for your commitment to Helios and to our community. My wish for you is that you too share your gratitude with those special to you.
Wishing you a wonderful Thanksgiving Holiday and moments of expressed gratitude.
Fondly,
Kathy
Happy (Belated) Boss’s Day!
National Boss Day fell on a Sunday this year, so we’re celebrating today instead. Some may think it’s a holiday invented by Hallmark or a bunch of brownnosers, but regardless of how it came about, we can’t emphasize the importance of expressing gratitude enough. According to Harvard’s Shawn Achor, author of The Happiness Advantage, 75% of job success is based on optimism, social support and managing stress in a positive way. Boss’s Day, Secretary Day, and the like are all great holidays in building a thanking culture. Here are a few ways to say thank you:
- Verbal Communication: Stopping to say thank you is an effective and cost-free way to say
- Ring the Bell: We’ve found that incorporating a physical bell in the office and using it to salute those who have hit a milestone, personal victory, project completion or new client win provides a quick “Hooray” for the people involved.
- Personal Notes: A personal, handwritten note goes a long way in expressing gratitude.
- Significant Events: Once a month during our meetings, we acknowledge significant events that have occurred within our lives.
- Tokens of Appreciation: Whether it’s freshly baked cookies, flowers, or a small gift, these tokens symbolize your appreciation.
How will you show appreciation to your boss?