To: All Benefit Eligible Qualico Steel Company, Inc. Employees

Date:  December 1, 2015

Re:  2016 BC/BS Health Insurance & Healthcare Reform


As we approach a new year, it is important that we all remain informed on the impacts of healthcare reform to our Group Health Plan.  In 2015, The “Employer Mandate” began and required all large employers (us) to offer coverage to their full time employees that met minimum values and was affordable under the law.  The Qualico Steel Company, Inc. Group Health Plan met and exceeded all of these requirements and has for many, many years. The leaders of this company have always intended to offer quality employee benefit programs to you and your families for being a part of our team; and it is our hope that we are able to maintain that for many years to come.

We continue to be faced with many challenges to providing affordable health care.  Healthcare costs alone rose nearly 8% across the country last year and the cost of many prescription drugs have nearly doubled.  While healthcare costs continue to climb we continue to be faced with further impacts and taxes from healthcare reform.  As we have communicated in the past, the law charges all individuals that are covered by their employer’s healthcare plan a “Transitional Reinsurance Fee or Tax”, which you have seen deducted from your paychecks the last two years.  This fee is the healthcare reform law taxing you for our medical coverage and not Qualico Steel increasing your cost for healthcare.  The fee will remain in 2016, however it does reduce slightly.  You will see this reduction in the fee beginning January 1, 2016 under the same deduction codes of HCRS for Single coverage and HCRF for Family coverage.  

The new reduced weekly deductions starting January 1, 2016 will be:

HCRS - $.52 per week

HCRF - $1.71 per week

It is important to remember the Qualico Steel Company, Inc. group medical plan meets minimum essential values and is affordable per healthcare reform.  Therefore, enrollment in our plan meets the individual mandate requirements that all Americans have coverage or pay a tax.  Our plans are also available to eligible dependent children and spouses.  In January all Full Time Employees will receive a new form called the 1095-C.  This is a new IRS form you will begin using while filing your 2015 taxes.  Specifically the form will indicate you and your family’s enrollment or declination of coverage under our group health plan.  Please retain this form for tax filing purposes once you receive it as it will confirm your 2015 healthcare elections.

Qualico Steel is committed to our employees and their families.  Healthcare reform will not change our commitment to competitive benefits that support you and your family’s health and wellness.  It is our intent to continue to provide the most competitive benefits the law will allow.

JoAnnette Feltman
Human Resources Director