Health Care Reform Basics
Lockheed Martin is committed to providing you with comprehensive health insurance coverage and wellness programs. This won’t change as key components of health care reform continue to be implemented in the U.S. It’s important for you to understand what health care reform means for you.
The Patient Protection and Affordable Care Act – more commonly known as the health care reform law – aims to ensure health insurance coverage for the uninsured and underinsured. It assists with the purchase of insurance for those who are unemployed and incentivizes employers to provide adequate insurance. Since health care reform became law in 2010, many elements of health care reform have already gone into effect.
What Happens Next
- Limit on combined out-of-pocket costs for medical and prescription.
- Employer Shared Responsibility – minimum value and affordability (see below for more details)
Health Insurance Marketplaces
Online marketplaces allow individuals, families and small businesses to purchase private health insurance.
While many Americans who are currently uninsured or underinsured may be eligible for subsidies, most Lockheed Martin employees will not be eligible for a marketplace subsidy. In order to qualify for a subsidy, a person’s individual or family income must be low enough to qualify for a subsidy and they would also have to show that their employer’s health insurance does not meet two requirements: minimum value and affordability.
- To provide minimum value, employer provided health insurance must pay for at least 60 percent of plan costs. The remaining costs are paid for by the covered individuals in the form of co-pays, deductibles, co-insurance and other cost sharing features. On average, Lockheed Martin pays more than 80 percent of plan costs for our employees.
- To meet the affordability requirement, the cost of the plan for employee-only coverage must not exceed 9.5 percent of the employee’s household income. This figure is indexed annually and subject to change. To ensure compliance and because we do not have household income data, Lockheed Martin employee only plans do not exceed 9.5 percent of an individual employee’s income.
If a Lockheed Martin employee chooses to purchase insurance from a source other than Lockheed Martin, the Corporation will not make any contribution to the employee’s premium or out-of-pocket costs. All health care costs will be the employee’s responsibility. For this reason, employees should carefully weigh the costs of a marketplace plan vs. a Lockheed Martin plan and consider all information available to them before making any decisions on coverage.
In addition, an employee who enrolls in a medical plan different from a Lockheed Martin provided plan, he/she will not be able to re-enroll in a Lockheed Martin plan until the following Annual Enrollment or as the result of a Qualifying Life Event.
Full details of Lockheed Martin’s 2015 health care costs and employee options are provided during Annual Enrollment every October.