Updated June 2011

The Texas Association of Counties Health and Employee Benefits Pool (TAC HEBP) understands that Pool members want to know the impact of Health Care Reform. TAC HEBP has compiled a list of the immediate changes impacting members and will continue to update this page as the facts become known. TAC HEBP promises to diligently pursue the answers needed while providing awareness of still undecided issues.

Immediate Impacts:

• Lifetime limits - Effective on plan anniversary dates after Sept. 23, 2010 there will no longer be lifetime limits to coverage.
  
  
• Pre-existing condition exclusions - As of that anniversary date, there will be no pre-existing condition exclusions for children under age 19. Beginning in 2014, pre-existing limitations will be prohibited for everyone.
  
  
• Coverage for dependent children - Effective on plan anniversary date, dependent children may remain on plan to age 26; this now includes married children. This does not apply to dependents that are employed and are eligible for benefits provided by their employer. IRS-qualified dependent status will no longer be required.
  
  
• Updated W-2 reporting – Beginning on Jan. 1, 2012, you will be required to begin tracking combined costs of medical, dental and vision (if you have a separate vision plan) for W-2 forms. This excludes salary deductions for FSAs and HSAs. At this time you will only be reporting the costs. Taxing the costs is scheduled to begin in 2018. Further relief for smaller employers filing fewer than 250 W-2 forms by making the reporting requirement optional for them at least for 2012 and continuing this optional treatment for smaller employers until further guidance is issued. For more information, see the 2011 Form W-2, IR-2011-31, Notice 2010-69, Notice 2011-28 and frequently asked questions at www.irs.gov.