By now, I’m sure that most of you have heard or read about the sweeping health care legislation that was recently signed by President Obama. Regardless of political affiliation, it is safe to say that this is the most significant piece of legislation affecting health care since Medicare was passed back in 1965.
The question that I am sure is on most minds is how this will affect us here at Pearson. I wanted to take this opportunity to tell you what we know today.
First, we are studying all aspects of the bill in order to fully understand its impact and how we can best manage our plans into the future. Some of the new provisions go into place in 2011 and many reach out into 2014 and beyond. It is important to note that there are no changes to the Pearson plans for the remainder of 2010.
Here a few examples of things we can expect in 2011:
- Dependent children will be eligible for coverage up to age 26 if they have no access to other employer coverage
- W-2 reporting of the value of employees’ health coverage
- No reimbursement of over-the-counter medication from Health Care Flexible Spending Accounts (FSA) unless prescribed by a doctor
In 2013 the annual maximum contribution to healthcare FSAs will be reduced from $5,000 to $2,500, with most of the other significant changes going into affect in 2014. We are still waiting for further guidance to be issued before knowing the full effect of these changes.
It’s important to understand that this legislation will have some impact on employer plans and the cost of managing those plans – Pearson will be no exception. While there is still much to learn about these changes, we remain committed to improving the health of the Pearson population. This will continue to be as important as ever. We are convinced that the surest way to manage health care costs is to do everything we can to maintain a healthy lifestyle and follow all of the established preventive guidelines.
As we continue to work in this new and ever changing environment, we will keep you up to date. In the meantime, if you have any questions please feel free to send them to my.benefits@pearson.com and we will provide answers as information becomes available.
Bob Arthur
Vice President, Benefits