I kept an eye on Washington from my phone for part of the day Sunday. The plan to get healthcare reform legislation through the House was shaping up. As previously posted in my CEO Blog, while some issues slowed the process slightly, there was a clear track to follow and a destination in sight. On Sunday evening I settled in to do some work while watching more of Washington’s moves on Cspan.com.
Just before midnight Eastern Time the third of the three steps was completed. First had been the “rules” vote in the afternoon; next came votes in the evening to pass Senate Bill HR 3590; passage of House Reconciliation Bill HR 4872 immediately followed. At that point healthcare reform was in place for two final steps. Next, with the Senate Bill passed in the Senate and the House, Reconciliation Bill HR 4872 heads back to the Senate where it needs 51 votes to pass. While it is not over until it’s over, the likelihood is looking pretty good. The Senate Bill, with its passage in the Senate and the House, is free to head to the President’s desk for signature. While HR 4872 will not pass in the Senate without debate, the Reconciliation Bill and thus the legislation as a package heads to the President’s desk where he is expected to sign it into law.
It is very difficult to digest the 2,300+ pages of HR 4872 in a manner that effectively connects/ties it to the language in the 2,000+ pages of HR 3590. At TASC we strive to keep current with what is shaking out. To this aim, TASC belongs to organizations that have spent considerable time deciphering the language of the Bills. Some of the expected results of the Bills as they relate to TASC and our customers have been stated in this Blog previously. I am still learning… One example: except for insulin purchases, deductions for medicines or drugs will be allowed only when a prescription applies. This means over-the-counter medicines or drugs will not be deductible. We had seen this previously in HR 3590. It appears Reconciliation Bill HR 4872 places language that ensures this is consistently applied to all medical reimbursement vehicles, including Section 105 Medical Reimbursement Plans such as Health Reimbursement Arrangements (HRAs), Health Savings Accounts/Medical Savings Accounts (HSAs/MSAs) and Flexible Spending Accounts (FSAs).
At TASC, much of our attention to healthcare reform has focused on the Group side of the business… Meanwhile, numerous TASC Clients are self-employed, and we’re watching developments that will affect them as well. We know it’s important that TASC review the language carefully to ensure our understanding of the impact on the self-employed. So far we’ve seen half a dozen references to the self-employed in both HR 4872 and in the Manager’s Amendment.
Very few Third Party Administrators (TPAs) serve the self-employed and larger employers alike. At TASC we make it our business to serve businesses of all sizes, and we will be looking out for all our customers. I invite you to check back to this CEO Blog and watch for other communications from TASC for guidance regarding these sweeping changes.
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