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Outline of Key ACA Provisions Taking Effect in 2012, 2013 and 2014

July 9, 2012
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In March 2010, Congress passed the Patient Protection and Affordable Care Act (ACA). The ACA is a piece of legislation with many provisions phasing from 2012 to 2014. Below, we have provided a brief outline of the key provisions taking effect over the next 3 years.key aca provisions

Key Provisions of the Affordable Care Act That Take Effect in 2012

  • Medicare hospital value-based purchasing program 
  • Increase in physician quality reporting requirements in Medicare 
  • Additional Medicare pilot programs on alternative payment methodologies, e.g., accountable care organizations 
  • Increased requirements for hospitals to maintain not-for-profit status 
  • Fees from insured (including self-insured) plans transferred to the Patient-Centered Outcomes Research Trust Fund

Key Provisions of the Affordable Care Act That Take Effect in 2013

  • Increase Medicare payroll tax by 0.9% on high-income earners 
  • Impose a 3.8% tax on net investment income of high-income individuals 
  • $500,000 cap on health insurers’ deduction for executive compensation 
  • Eliminate employer deduction for Medicare Part D subsidy 
  • FSA limitations 
  • Excise tax on medical device manufacturers and importers 
  • Medical expense deduction floor increases to 10% 
  • Nationwide bundled payment pilot begins in Medicare 
  • Increased Medicaid reimbursement for primary care 
  • Medicare physician comparison data available to the public 
  • Reductions in Medicare payments for select hospital readmissions 
  • Expanded coverage of preventive services by Medicaid

Key Provisions of the Affordable Care Act That Take Effect in 2014

  • Employer mandate and individual mandate 
  • Employer and insurer reporting requirements 
  • New health insurance market reforms take effect 
  • State health insurance Exchanges established 
  • Premium tax credits and cost-sharing subsidies available to certain individuals in Exchange insurance products 
  • Medicaid expansion to new populations (100% federal match to states for newly-eligible populations through 2016) 
  • Annual fee on health insurers 
  • Medicare/Medicaid DSH payment cuts begin 
  • Independent Payment Advisory Board (IPAB) issues first report to Congress if Medicare spending exceeds growth target
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