With President Obama’s re-election, we have passed yet another milestone in the health care reform saga.

Let’s face it, many companies (and brokers) were hoping that this time, health care reform was really going to go away. Health care reform survived the Supreme Court, but many of your clients were banking on a Romney presidency and fulfillment of his promise to work on repealing health care reform, starting on day one.

That didn’t happen, and Obama’s victory, along with Democrats maintaining control of the Senate, means that implementation of the law will now continue without any significant roadblocks. Of all of the possible results of the election, this has the least effect on how the law will move forward. However, that doesn’t mean that the law won’t face challenges as we look ahead.

The fiscal cliff

One hurdle is the issue that we will continue to hear about in coming weeks: the fiscal cliff. It’s possible that a bargain involving health care reform could be struck in Congress around this issue. Things like fewer premium subsidies or slower implementation could be offered up at the negotiating table as Congress tries to agree on a package of revenue increases and spending reductions to avoid the “fiscal cliff” coming at the end of 2012.

Exchanges

Another critical piece of the future health care reform landscape is the exchange. Exchanges are required to be up and running in each state by Jan. 1, 2014, with open enrollment available by Oct. 1, 2013. This deadline is very aggressive and just last week, HHS announced that states would have additional time to put some of the pieces into place, although the ultimate 2014 deadline still stands.

Many states were waiting for the outcome of the election to take action and now face a time crunch. If they are not able to run their own exchanges by the deadline, the federal government will step in and run it for them. Questions linger about whether the feds can accomplish all that would need to be done in time – so far the administration has insisted it will be ready. However, if there are additional delays in implementation of the exchanges, other parts of the law could be affected.

Regulations and guidance

In the meantime, the regulatory agencies responsible for implementation and enforcement of the health care reform law—the Departments of Labor, Treasury, and Health and Human Services—are expected to begin churning out guidance now that the election is settled. Regulations (and other informal types of guidance) are expected on things like when the employer penalties will apply and precisely how they will be calculated.

What your clients need to know now

There are some things your clients should be doing now. Employers will have to consider their future plans for providing health coverage to their employees – whether they are going to “pay or play.” They will also need to act on more immediate requirements, such as:

• Summary of Benefits and Coverage. Health plans and issuers must provide an SBC to participants and beneficiaries by the first open enrollment period that begins on or after Sept. 23, 2012. Insured clients should work with their carrier to get these distributed on time.
• $2,500 Limit on Health FSA Contributions. Salary reduction contributions to health FSAs are limited to $2,500 per year for plan years beginning on or after Jan. 1, 2013.
• W-2 Reporting. Beginning with the 2012 tax year, employers that are required to issue 250 or more W-2 Forms must report the aggregate cost of employer-sponsored group health coverage on employees’ W-2 Forms. The cost must be reported beginning with the 2012 W-2 Forms, which are issued in January 2013.
• Employee Notice of Exchanges. Effective March 1, 2013, employers must provide a notice to employees regarding the availability of the health care reform insurance exchanges. HHS has indicated that it plans on issuing model exchange notices in the future for employers to use. The model notice will be available in Broker Briefcase as soon as possible after it’s released.
• Additional Medicare Tax for High-Wage Workers. In 2013, employers will have to withhold an additional 0.9 percent on wages over $200,000.

As health care reform implementation continues, keeping on top of all the changes and regulatory developments will be critical for you and your clients. We’ll keep you up to date on things as they happen – to help you communicate developments to your clients. Partners can check Broker Briefcase for a full suite of health care reform client deliverables, updated regularly.

It’s up to you to take charge the situation and let your clients know that you are a valuable resource when it comes to health care reform. Your clients need you more than ever—seize the opportunity to prove your value and be the trusted resource.