Wow!! This act is full of unpleasant surprises for business owners both small and large. We put on a joint seminar with Tilson, a leading provider of human resources outsourcing and consulting services in the Indianapolis area on June 24th, 2010. Based on the feed back of the participants it was a real eye opener to this new set of laws.
Many of the provisions are not in place for several years but some have to be dealt with NOW. The one that caught everyone by surprise, including myself, was the Long Term Care(CLASS Act) – 2011. This act will provide a cash benefit to individuals unable to perform two or more functional activities of daily living(ADL)
Those are defined as:
The regulations are still being written as of this date but what we know so far is:
- There is a 5 year vesting period before participants are eligible for benefits
- Initial premiums are estimated to be between $65 and $240 per month
- Benefits are estimated to be approximately $50 per day
This is a required program for all employees. If your employer offers the program, you are automatically enrolled via payroll deduction. Otherwise, employees must pay direct to the government.
It looks like the 5 year vesting was set up as a way to get funds into the program and one of the many ways the ACT is suppose to self-fund.
We will be writing more about the Healthcare Act as regulations are released. Stay tuned and beware….