FEDERAL HEALTH CARE REFORM BILL WILL AFFECT CITIES

On March 23, 2010, the President signed into law a bill that, over the next five years, is expected to fundamentally change health care. City-provided health plans will be affected in the same way as other employer health plans including new coverage requirements, new benefit requirements, limits on restrictions for pre-existing conditions, and other mandates. Also, any city that does not provide its employees with qualified health insurance plans will have to pay some type of penalty. Cities will still be allowed to maintain their current health insurance programs or self-coverage so long as they meet criteria that all employers will have to meet. For additional analysis of the bill, see the National League of Cities memorandum that was sent to the state leagues after the bill was signed into law.

As more information becomes available, TML will provide additional guidance in a future issue of the TML Legislative Update, or in the Texas Town & City magazine.

TML member cities may use the material herein for any purpose.
No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the
Texas Municipal League.

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