Molly Schissler

As you may know, the U.S. Supreme Court recently announced its decision on the Patient Protection and Affordable Care Act of 2010 – deciding that the “health care reform” law is constitutional. As a result, even though there are still some legal challenges, implementation of the law will continue as scheduled. We, like other employers, will continue to comply with the law.

We will continue to communicate health care reform changes as they take effect. While the law is 2,700 pages long, the manner in which changes are implemented will depend upon guidance issued by government agencies; in the coming months, hundreds or even thousands of pages of new regulations are expected to follow the Supreme Court decision. As we receive new guidance, we will continue to provide you with advance notice of any changes to your coverage – as well as information and tools – if the changes require you to make decisions about your coverage.

Here are some changes that will take effect during the next 18 months as a result of health care reform:

• Health Care Flexible Spending Account – $2,500 annual maximum contribution limit
  • Effective for our plan year starting January 1, 2013
• Reduction in the maximum eligibility period for health coverage for full-time employees to 90 days
  • Our plan eligibility is the first of the month following date of hire
• Coverage is available for children up to age 26
  • Our plan already covers dependent children to age 26
• Elimination of all pre-existing condition exclusions
• Elimination of any remaining dollar limits on essential health benefits
• A new definition of eligibility for full-time employee coverage
  • We already provide coverage for part-time employees working at least 20 hours per week
• An increase in the financial incentives for wellness programs
  • We are strong advocates of wellness for our employees
• New automatic enrollment provisions similar to those used in 401(k) plans

While health care reform is intended to expand coverage to millions of uninsured Americans, the changes that are being implemented may not reduce our cost of coverage — or yours. A 2012 survey conducted by our benefits plan consultant indicates that more than 50 percent of employers surveyed expect to see health care costs rise; and nearly a third of those employers expect to see an increase greater than 5 percent. In fact, some surveys have predicted that costs will rise at a rate as high as 9 percent.

We expect our costs to continue to increase in the next few years along with the cost of health care, and we will keep you informed of any increases to your cost and any plan changes. As a reminder, North Shore Bank continues to pay the major portion of the cost of your health care coverage — approximately 70 percent.

We will continue to monitor any new developments and will provide regular updates on health care reform, as it affects your benefits. In the meantime, please contact me with questions: mschissler@northshorebank.com