What the New Year Brings in Health Care Reform

Here are some of the new laws taking effect Jan. 1:

Over-the-counter drugs (other than insulin) will not be eligible for a tax-free reimbursement through health savings accounts (HSAs) and similar medical savings accounts unless prescribed by a doctor. Account holders will be assessed a tax penalty of 20 percent of the amount of each non-qualified purchase made after Dec. 31, 2010.
The tax penalty will increase for non-qualified distributions from HSAs and similar medical savings accounts.
Health insurance companies will be required to meet medical loss ratio requirements or pay premium rebates to members.
Wellness program grants will be available for small businesses. This grant program will be available to help small businesses provide a workplace wellness program. To be eligible, the business must not have had a workplace wellness program as of Mar. 23, 2010 and have fewer than 100 employees working 25 hours or more per week. The grants will be awarded beginning in 2011, with $200 million set aside over a five-year period.
A voluntary long-term care program, Community Living Assistance Services and Supports (CLASS), will be created. This program allows employees to have long-term care insurance premiums deducted from their paycheck.
Five-year demonstration grants will be available to states for medical malpractice for reform. Health care reform provides $50 million in state grants for developing alternatives to resolving medical malpractice disputes through lawsuits. Alternative resolutions will emphasize patient safety, disclosure of health care errors and timely resolution. Grants will be available after Jan. 1, 2011.
Funding will be provided for community and school-based health centers. An additional $11 billion in funding for Community Health Centers (CHCs) will be provided over the next five years. These CHCs deliver quality preventive care to low-income residents. Services can include primary care, dental care, women's health, podiatry, counseling services, health promotion and education, physiotherapy, advocacy and intervention. Funding will be available beginning Jan. 1, 2011.