Page 5 - Hitachi Benefit Guide February 2018

Additional Benefits Information

Paying For Your Coverage / Section 125 The Affordable Care Act and You
The Health Advocate, Basic Life/AD&D, Short Term Disability The Affordable Care Act (ACA) requires nearly every American
(NonCA, NY & HI), Employee Assistance Program, Business to be enrolled in medical coverage or pay a penalty. This is
Travel Accident and Worldwide Travel Assistance benefits are referred to as the individual mandate. You have several options
provided at no cost to you and are paid entirely by Hitachi to satisfy this requirement:
Solutions. You and the company share in the cost of the • Enroll in a medical plan offered by Hitachi Solutions or another
Medical, Dental and Vision benefits you elect. For states that group plan
require the company to have a statutory disability policy (CA,
HI, NJ & NY) you and the Company may share in the cost via • Purchase coverage through a health insurance marketplace
payroll deduction as permitted by law. Any Voluntary Life/ • Enroll in coverage through a government sponsored
AD&D and Long Term Disability benefits you elect will be paid program
by you at discounted group rates. Your Medical, Dental, and • Have no coverage and incur a tax penalty
Vision contributions are deducted before taxes are withheld,
which saves you tax dollars. Paying for benefits before-tax
Because Hitachi Solutions’ medical plans are considered
means that your share of the costs are deducted before taxes
affordable and meet minimum value under Health Care Reform,
are determined, resulting in more take-home pay for you. As a you will not generally see lower premiums or lower out-of-pocket
result, the IRS requires that your elections remain in effect for costs through the marketplace. In addition, employer
the entire year. You cannot drop or change certain coverage
contributions to your medical benefits will be lost if you choose
unless you experience a qualifying event.
to purchase coverage through the marketplace, and your portion

of medical premiums will no longer be paid via payroll deductions
Note: Unless your domestic partner qualifies as your tax on a pre-tax basis.
dependent for health care purposes under the Internal
Revenue Code, Federal Tax Law requires that the fair market
value of the benefits result in “Imputed Income” to you. This For More Information
amount will be included as an additional earnings paid to you For more information on your coverage options and
on your earnings statement for the cost of the non-qualified potential tax penalties, go to www.healthcare.gov.
dependents premium on which you will pay Taxes.

Annual Notices
ERISA, as well as various other state and federal laws, require that employers provide disclosure and annual notices to their
plan participants. Hitachi Solutions has posted all federally required annual notices on Sterling Online System for you to down-
load and read at your convenience. The following is a brief description of the annual notices:

• Medicare Part D Notice of Creditable Coverage: • Newborns’ and Mothers’ Health Protection Act: The
Plans are required to provide each covered participant and Newborns’ and Mothers’ Health Protection Act of 1996
dependent a Certificate of Creditable Coverage to qualify (NMHPA) affects the amount of time a mother and her
for enrollment in Medicare Part D prescription drug newborn child are covered for a hospital stay following
coverage when qualified without a penalty. This notice also childbirth.
provides a written procedure for individuals to request and • Special Enrollment Rights: Plan participants are entitled to
receive Certificates of Creditable Coverage. certain special enrollment rights outside of Hitachi
• HIPAA Notice of Privacy Practices: This notice is intended Solutions open enrollment period. This notice provides
to inform you of the privacy practices followed by Hitachi information on special enrollment periods for loss of prior
Solutions group health plan. It also explains the federal coverage or the addition of a new dependent.
privacy rights afforded to you and the members of your • Medicaid & Children’s Health Insurance Program: Some
family as plan participants covered under a group plan.
states offer premium assistance programs for those who
• Women’s Health and Cancer Rights Act (WHCRA): The are eligible for health coverage from their employers, but
Women’s Health and Cancer Rights Act (WHCRA) contains are unable to afford the premiums. This notice provides
important protections for breast cancer patients who information on how to determine if your state offers a
choose breast reconstruction with a mastectomy. The U.S. premium assistance program.
Departments of Labor and Health and Human Services are
in charge of this act of law which applies to group health
plans if the plans or coverage provide.

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