WhatleyKallas Continues to Monitor Affordable Care Act Developments

With the election over, the Obama Administration is moving forward with the implementation of the Affordable Care Act (“ACA”).  While the Administration delayed until mid-December the deadline for States to declare whether they will participate in the health insurance exchanges, regulations were issued as soon as two days after the election.

WhatleyKallas will continue to update our clients with information about the implementation of the Act.

Although most of the coverage expansions and insurance reforms under the Affordable Care Act don’t kick in until 2014, several key ACA provisions are scheduled to take effect next year, including:

  • Medicaid payments to primary care physicians for primary care services will increase to 100% of Medicare rates for two years.
  • States that offer Medicaid coverage with no patient cost-sharing for recommended preventive services will receive a one percentage point increase in federal matching payments.
  • Medicare will test bundled payments for physician services, acute inpatient hospital services, outpatient hospital services and postacute care services for a patient’s episode of care.
  • The federal government will impose an excise tax of 2.3% on the sale of taxable medical devices.
  • Reductions will begin on disproportionate share hospital payments under Medicare and Medicaid.
  • Nonprofit, member-run health insurance companies known as Consumer Operated and Oriented Plans (CO-OPs) will launch.

Source: Kaiser Family Foundation Health Reform Implementation Timeline (healthreform.kff.org/timeline.aspx)