The elections have come and gone, and a new administration is preparing to take over at the White House. Among the seemingly growing number of issues that will challenge the new administration, health care reform remains high on that list. At the same time, our nation’s budget deficit climbs higher every day, while the economic downturn is daunting and unpredictable. Then there’s the war in Iraq, and instability in areas like Russia and Afghanistan. It’s obvious the new administration will be able to accomplish only so much, and we are all waiting to see what – if anything – develops in the area of health care reform over the next few years.
Of course our nation’s lawmakers are concerned with and talking about health care. Recently, Senate Finance Committee Chair Max Baucus (Dem.-MT) released a white paper entitled “Call to Action: Health Care Reform 2009” that outlines the steps he sees necessary to provide insurance to all Americans, to improve the quality of that health care, and to reduce costs associated with the current health care system.
Some highlights of the Baucus plan include an individual mandate that everyone buy health insurance (possibly enforced through the U.S. tax system or some other point of contact); an employer play or pay mandate for large employers (employers who choose not to provide coverage, must contribute to a fund to help cover the uninsured); and an establishment of a nationwide insurance pool known as the Health Insurance Exchange (where refundable tax credits would be available to low income individuals and families who purchase coverage through the exchange).
Also under Baucus’ plan, all except the smallest employers will be required to offer a Section 125 Plan. In actuality, more and more states are already mandating that employers offer a Section 125 Plan; this is something I discussed in my last blog…Section 125 Plans are expected to stay for a while. Meanwhile, we may see Health Savings Arrangements (HSAs) decline in value or go away altogether. (Legislation on HSA claim substantiation is currently working its way though the House.)
These changes are obviously good news for TASC! After all, a heightened public awareness of these great tax-savings tools will undoubtedly make for heightened opportunities for TASC and others in our industry.
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