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Unum guide outlines costs of health reform

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  Published in Business and Finance on Tuesday, July 20th 2010 at 12:10 GMT by Market Wire
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CHATTANOOGA, Tenn.--([ BUSINESS WIRE ])--An overview of what health care reform will cost and who is expected to foot the bill is the focus of Unuma™s (NYSE:UNM) latest [ guide ] to health care reform.

"The employers, benefits brokers and individuals we serve are eager to have clear, objective explanations of how these changes will affect their businesses, their families and their bottom lines"

aThe employers, benefits brokers and individuals we serve are eager to have clear, objective explanations of how these changes will affect their businesses, their families and their bottom lines,a said David Brenerman, vice president of Government Affairs for Unum.

aThough the financial protection benefits Unum provides wona™t be directly affected by health care reform, we hope that by offering information and guidance we can help give our partners confidence that they are making informed decisions about employee benefits.a

Included in the guide are explanations of financial changes that will roll out over the next several years, such as:

• A 40 percent excise tax that will apply to some health-related coverage
• The exemption from this tax of non-medical benefits including life, disability, vision, dental, long term care and accident coverages
• New limits on how much employees can put into Flexible Spending Accounts and what they can use those tax-exempt funds to purchase
• Tax credits for small businesses designed to make coverage more affordable
• Penalties for employers that do not offer coverage

The guide offers a clear timeline of when changes will take effect and outlines their effects on employers and individuals.

aThe Patient Protection and Affordable Care Act will bring health benefits to millions of uninsured Americans, but it will require $940 billion dollars in funding over the next 10 years,a Brenerman said. aIta™s important that we understand a" and help our partners understand a" exactly who will pay that bill.a

This guide is the third in a series produced by Unum.

In May, the company produced a [ guide ] explaining the Community Living Assistance Services and Supports (CLASS) Act, a national voluntary plan that offers a minimal long term care benefit. In June, Unum produced a [ guide ] that details important changes to health care coverage and the requirements reform will bring.

About Unum

Unum ([ www.unum.com ]) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group paid approximately $6 billion in total benefits to customers in 2009.