Your Medical Insurance Is About To Change... Are You Prepared?

by Charlie Eggleton

Last March President Obama signed into law the Patient Protection and Affordable Care Act (PPACA). The provisions of PPACA take effect over the next eight years. The parts that become effective in 2010 and 2011 will affect all businesses. Here's what you need to know now.

2010 - Many changes take place on the first plan renewal after September 23, 2010

  • Plans must cover dependents to age 26
  • Pre-existing conditions for dependents under age 19 must be covered
  • Tax credit for employers of 25 or fewer employers - reduced credit for employers with 10 to 25 employees - additional conditions apply
  • For renewals after September there can no longer be lifetime benefit limits
  • Preventive services covered without co-pay or deductible
  • Employers must provide opportunity and private space for nursing mothers
  • Grandfather status can be lost by making changes to plan or employee contribution amount

Changes for 2011 are as follows:


  • Over the counter medications no longer covered under HSAs and FSAs
  • Medicare will include free annual wellness visits
  • Annual fee on drug manufacturers is increased
  • Places sales tax on medical device manufacturers
  • The popular Medicare Advantage (Part C) payment structure is frozen at 2010 level
  • Employers required to disclose value of medical insurance on employees W-2
Charlie Eggleton, CLU, ChFC, CFP, is the owner of the Delphi Group, and has been providing comprehensive employee benefit counseling for over 35 years. The Delphi Group is a full service agency offering Group Medical Insurance, Group and Individual Dental Insurance, Business Buy-out, lender loan protection, disability income, 401(k) plans, SIMPLE IRA plans and other products. Visit his website at
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