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Healthcare Reform Update



February 2013                                                              Issue # 2013-02


Please take note of this important PPACA Advisor Update presented by Commonwealth Benefits Group. 
The PPACA Advisor resources will give you brief, to-the-point explanations about the law and how it directly affects you. This information -- compiled by benefit law experts and tailored for employers -- can help you meet your immediate compliance duties and better plan for the future.

Gordon M. Graffius, CLU                          Bradley W. Graffius, CLU, RHU
CEO                                                            President

PPACA Advisor




States have two major decisions to make with respect to the Patient Protection and Affordable Care Act (PPACA) -- whether they will run the health exchange themselves, and whether they will expand Medicaid to cover most individuals whose income is below 133 percent of the federal poverty level.


Exchange Election

Beginning in 2014, all states will have a health exchange.  If a state chooses not to run an exchange, the federal government will run the exchange for the state. An exchange run by the federal government for a state is called a federally facilitated exchange (FFE). States may also choose to share the operation of an exchange with the federal government - that is called a partnership exchange. 


Click HERE to learn more about Exchange Election.


Medicaid Election

States also have to decide whether they will expand Medicaid coverage to most individuals who have an income below 133 percent of the federal poverty level (FPL). The FPL is $11,490 for a single person and $23,550 for a family of four in 2013.  The federal government will pay most of the cost of expanded Medicaid coverage, but some states have concerns about the ultimate cost of the expansion to the states. 


Click HERE to learn more about Medicaid Election.


What is Your State Doing


As of Feb. 1, 2013, the states had made the following choices.  (The deadline for most exchange elections for 2014 has passed, although states may elect a partnership exchange for 2014 until Feb. 15, 2013.  There is no deadline for the Medicaid election.  It is expected that many states will make the Medicaid expansion decision as part of their 2013 budgeting process.)  Click HERE to learn about what your state is doing with the exchanges and Medicaid.


This information is general and is provided for educational purposes only. It reflects UBA's understanding of the available guidance as of the date shown and is subject to change. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.

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Commonwealth Benefits Group
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Dillsburg, Pennsylvania 17019
O:  717.432.1010
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