Signed into law in March 2010, health care reform and its many provisions will unfold over several years. However, several changes impacting employers have already gone into effect. Here is a list of the most important factors for you and your business:

• Small business health care tax credit. Beginning with the 2010 tax year, certain small employers that provide health coverage to employees are eligible for a tax credit of up to 35 percent of the employer’s premium expenses.
• Breaks for nursing mothers. Effective March 23, 2010, employers are required to provide reasonable break time and a private place (other than a bathroom) for an employee to express breast milk for her nursing child for up to one year after the child's birth. Employers with fewer than 50 employees are exempt from the break requirement if it would impose an undue hardship.
• FSA requires prescription for over-the- counter drugs. Effective January 1, 2011, the expenses incurred for a drug may be paid or reimbursed by an employer-provided health flexible spending arrangements (FSAs) only if the individual obtains a prescription or the drug is insulin.
• W-2 reporting of health coverage costs.Employers are required to report the aggregate cost of employer-sponsored health coverage on Forms W-2 issued to employees, but the reporting requirement is optional for W-2 forms issued for the 2011 tax year.

The following provisions are effective for plan years beginning on or after September 23, 2010:

• Ban on lifetime limits.Plans are prohibited from imposing lifetime dollar limits on the amount of essential health benefits an individual may receive.
• Dependent coverage to age 26.Plans that offer dependent coverage must make such coverage available until age 26.
• Ban on pre-existing-condition exclusions for children.Plans are prohibited from imposing pre-existing condition exclusions for children under age 19.
• Preventive services. Recommended preventive services and routine immunizations must be covered by non-grandfathered plans without subjecting participants to cost-sharing measures, such as a co-pay or co-insurance.
• Ban on bias toward highly-compensated employees. New insured group health plans are prohibited from discriminating in favor of certain highly compensated employees.

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