We are all expecting the Supreme Court to rule on the constitutionality of the Patient Protection and Affordable Care Act any day now. While there is much anticipation, good plan sponsors already should be preparing for how they will respond to the decision. So let’s look at some road-maps to prepare for the possible outcomes.
1. PPACA is upheld as constitutional. If PPACA is upheld, we have to look at complying with the upcoming requirements for the 2012 and 2013 plan years. Most importantly, we need a summary of benefits and coverage and we need to be prepared to hand that out in the next open enrollment. We also have to be prepared for health plan reporting on W-2s which is mandatory for the 2012 tax year. Also recall that beginning in January 2013, an individual’s annual maximum contributions are limited to $2,500 for flexible spending accounts. So if it is upheld, we have some significant changes to make in our administration process before the end of the 2012 plan year.
