Annual Maximums Under PPACA

There are many provisions of the Patient Protection and Affordable Care Act that take effect for plan years beginning on or after Sept. 23. One of the requirements is the limitation on annual caps. Generally, for plan years beginning Sept 23 or later and at the first renewal after Sept 23 the minimum annual maximum can’t be below $750,000. Federal law and/or state law may prohibit specific benefit lifetime limits. Note that some lower lifetime limits on a per beneficiary basis may violate the ADA.

Rumor on the street is that HHS is considering lifting the annual maximum limitation until 2014 because of the impact it will have on millions of workers. We will keep you posted.