Effective September 23, 2010, the
health reform bill prohibits group health insurance plans from imposing
lifetime limits on
essential health benefits. However, plans may impose certain
annual limits on essential health benefits until January 1st, 2014. This new requirement applies to plans with effective dates of coverage on September 23, 2010 or later.
The annual limits restrictions phase in over the next few years as follows:
- Phase 1 (September 23, 2010 through September 22, 2011) - $750,000 maximum per participant
- Phase 2 (September 23, 2011 through September 22, 2012) - $1,000,000 maximum per participant
- Phase 3 (September 23, 2012 through December 31, 2013) - $2,000,000 maximum per participant
- Phase 4 (January 1st, 2014 Year 5 and beyond) - no annual limit allowed
Health Reimbursement Arrangements (HRAs)
Flexible Spending Accounts (FSAs)
Health Savings Accounts (HSAs)
