Preparing for ACA

What is WSU Doing to Prepare for the ACA?

WSU has established a task force consisting of key campus representatives, and also is working with union leadership and key faculty committees on implementing current and future provisions of Health Care Reform, also known as the Affordable Care Act (ACA).

Below is an outline of key components of the ACA by year:

2010

  • Young adults can be covered through a parent's health plan until age 26.

2012

  • 2012 W-2s now include employer and employee cost of health coverage (as an information item only).
  • Group Health Plan Fees implemented to fund federal comparative program research (compares clinical effectiveness of medical treatments). Employers (including MSU) pay these fees.

2013

  • Flexible Spending Account (FSA) maximums decreased from $5,000 to $2,500 per individual.
  • Additional women's preventive services will be added for plan year 2013-14 (primarily including generic contraceptives and related medical devices at no co-pay).

2014

  • Cost Drivers begin:
    • Shared responsibility fees will be assessed on employers who do not provide insurance, or adequate insurance, to full-time employees.
    • Individual Mandate: the IRS will charge a penalty to people who are required to carry insurance but do not have it.
    • $25 Billion will be charged to employers (including MSU) to help fund health insurance coverage for those who do not have it due to preexisting conditions, etc. (fee will be charged per year from 2014 through 2016).
    • The definition of a full-time equivalent (FTE) employee will be one that works an average of 130 hours/month. (This could increase the number of people eligible for MSU health plans and possibly add cost.)

2015

  • Automatic enrollment into a health plan may be implemented.

2017

  • State Exchange may allow employees of larger employers (like MSU) access to purchase coverage.

2018

  • 40 percent Excise Tax on "high cost" (Cadillac) health coverage will begin. Health plans (including dental and Health Care Spending Account (HCSA) contributions) valued at more than $10,200 per individual and $27,500 per family will be subject to this tax. Current MSU plans may be subject to this tax depending on future cost trends. This could mean higher costs to faculty and staff, and MSU must evaluate plan design solutions to manage these cost trends.