High Deductible Help

Health Care costs are increasing, the economy is not turning around quick enough - what are employers doing about health insurance ? Some are reducing benefits by putting in higher co-pays or large deductibles (some are doing both!). If there is substantial cost savings by doing this, a company may give back some of the savings by "funding" all or part of the large deductible in an H S A (health savings account) or an HRA (health reimbursement arrangement). Another option is to offer a voluntary set of benefits to employees designed to offset these larger potential expenses. Recently I was interviewed on this exact topic. Read more here.

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

Joe the Plumber Doesn’t Need to Wait Any Longer

Steve Blewitt has had an article published in National Healthcare Reform Magazine. The article sights some methods of controlling health insurance costs now.

Click here for the article.

Employers and Brokers Find Tips at a National Conference

About a week ago I attended a national conference that was geared towards brokers and consultants as well as HR professionals. Although the speakers and topics were different for each group there were some relevant points in this ever evolving world of health insurance that we live in.

*A survey by the National Business Group on Health on how employers will deal with health insurance increases: 63% plan to increase payroll deductions, 46% plan to downgrade benefits - 61% will offer a Consumer Driven Health Plan like an HSA or HRA in 2011.

*Many larger employers are looking into Dependent Eligibility Audits. This procedure identifies dependents that should no longer be covered on the plan (a divorced spouse, a cousin, an aged out child or custody arrangement) and their coverage is terminated - saving the employer money.

*Under health care reform penalties now exist when employers discriminate with benefits for highly compensated employees. Giving these employees a separate richer benefit or paying more towards premiums could result in fines of $100 per day per individual discriminated against. In fact the public is invited to comment on this up until November 4th. use this e-mail address Notice.Comments@irscounsel.treas.gov. Include “Notice 2010-63” in the subject line.

*Experts suggested that employers increase waiting periods to at least 90 days for new hires, disclose the full cost of insurance premiums to employees, implement a Section 125 FSA plan and consider self funding health insurance with a third party administrator.

*Small employers should explore the small business tax credit that is a part of health care reform. In general the credit is available to small employers, less than 25 employees and pay at least half the cost of single coverage for their employees in 2010. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.

*Health care reform allows children to stay on their parents plan up to age 26. This does NOT mean they are still considered dependents for tax reasons. perhaps they are 25 and married and live on their own - yet they are still on mom and dad's health plan. If so be careful if you participate in an H S A or FSA - you most likely cannot use these tax free funds on these "children" (are they really still children??) since they are no longer considered a "dependent".

Hopefully some of these strategies may benefit you and your business.

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

W-2 Health Costs Reporting is Optional

The IRS announced last week that it will defer the new requirement under Health Care Reform set to take place in 2011 that employers must report on W-2s the cost of health care coverage. The Treasury Dept and the IRS feel it is necessary to provide employers the time needed to make changes to payroll systems and internal procedures. Guidance from the IRS will be forthcoming. For 2001 the reporting of costs on w-2s is optional and a draft of that form exists for those employers wishing to do so. It can be found here: http://www.irs.gov/pub/irs-utl/draft_w-2.pdf

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

Steve Blewitt, GBA recently passed the Pennsylvania Medicaid Long Term Care Services course.

Steve Blewitt, GBA recently passed the Pennsylvania Medicaid Long Term Care Services course. This course provides a broad overview of eligibility for Medicaid Long term Care in Pennsylvania. According to a Harvard Magazine article from July/August 2004 "...nearly 40% of people currently needing long-term care are between the ages of 18-64." Long Term care insurance helps people pay for the cost of such services and can be provided as an employee benefit - like medical and dental insurance.

"If you like your health plan you can keep your health plan " ......Not exactly ....

At a town hall meeting in New Hampshire exactly one year a go, President Obama repeated a line he used many times. His statement is not exactly true. At a recent broker seminar held by Aetna in Delaware, the company announced some terrific changes coming in October. Among the changes, if you are a small Delaware employer currently with Aetna you will have to change to one of their new plan offerings upon your renewal.

In an attempt to cut administrative costs, be more flexible and adapt to client needs Aetna is streamlining their products by reducing the number of plans available. These plans will be health care reform compliant and hopefully improve pricing.

All plans incorporate 5 key components of health care reform:
1) Remove Lifetime Maximums on all plans
2) Remove Annual limits where required
3) Preventive care 100% covered
4) Dependents covered to age 26
5) No pre-existing conditions for children under 19

Small Delaware employers can pick from 14 plan designs from Aetna.

How will the marketplace react to such changes ? Check back in a year and we will have a better idea. My thought is most employers will appreciate the simplicity - especially if it means better pricing. Aetna is making similar changes in Pennsylvania and my guess is they will in other states too. I doubt Aetna will be alone either. BlueCross BlueShield of Delaware and Coventry Healthcare of Delaware both have scheduled broker seminars for the month of August. I bet they have some changes coming too!


Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

COBRA Federal Subsidy update

Although Congress has extended the COBRA subsidy four times as part of the amended ARRA they have failed to extend it a fifth time beyond May 31st, 2010. Therefore May 31st, 2010 is the last date someone can be terminated from employment and may be eligible for the federal subsidy. Anyone terminated after this date is currently NOT eligible for the financial assistance previously available.

We will continue to monitor this situation and provide updates if an when anything changes.

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

What is Grandfathered Status?

National Association of Health Underwriters (NAHU) has created a summary of “grandfathered status” in the Patient Protection and Affordable Care Act (PPACA, H.R. 3590) and what is means for those weighing whether or not to shop their health coverage.

Click here for the summary

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

Another COBRA Subsidy Extension ??

Hard to believe Memorial Day weekend is here - so is the expiration of the eligibility for COBRA subsidy provided through the American Recovery and Reinvestment Act (ARRA) - which is currently May 31st. So if you are laid off from work on June first you are not entitled to the 65% subsidy towards your COBRA premium.

But wait.....The House is soon to act on the "American Jobs and Closing Tax Loopholes Act which includes an extension through December 31st, 2010 for those employees involuntarily terminated to be eligible for the 65%, 15 month COBRA premium subsidy. Once through the House the act would move to the Senate for another vote.

Unfortunately it seems unlikely that it will be approved before Congress goes on vacation from May 29th - June 6th 2010.

This should not come as a surprise, but a new report out shows the subsidy has been helpful in helping families maintain health insurance.

View Report

Enjoy the holiday weekend and stay tuned for more updates!

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

May is Disability Insurance Awareness Month

It is not the most fun thing to think about but it is a fact: disabilities do occur and can affect all of us. Here are some sobering statistics:

Three in 10 workers entering the work force today will become disabled before retiring.
Social Security Administration, Fact Sheet January 31, 2007

One in 7 workers can expect to be disabled for five years or more before retirement.
"Commissioners Disability Table, 1998," Health Insurance Association of America, the New York Times, February 2000

Disability causes nearly 50% of all mortgage foreclosures, 2% are caused by death.
Health Affairs, the Policy Journal of the Health Sphere, 2 February 2005

Close to 90% of disabling accidents and illnesses are not work related.
National Safety Council, Injury Facts 2008 Ed.

The good news is that Disability Insurance is available both on an individual basis and a group basis for companies. Moreover, these coverages are extremely affordable. Call us today and ask to speak to a Benefits Specialist about disability insurance at 302.239.2355

Patient Protection and Affordable Care Act Tax Credit

Under the Patient Protection and Affordable Care Act, small businesses who provide health insurance may qualify for a credit toward their cost of health insurance.

Click here for a summary of the Act.


Click here for the 3-step worksheet to help you determine if you qualify for the tax credit.

More States Join Lawsuit Against the New Healthcare Law

Eighteen states in total have filed suit to stop the health care bill from being implemented. The charge by the states filing the suit is that this law is an unprecedented and unconstitutional expansion of the power of the federal government.

Read the full Reuters article here.

Ameritas Dental Network Expanded

One of the many dental insurers IFS represents, Ameritas Dental, has recently expanded its national PPO network of participating dentists. In fact for Delaware clients, their panel of dentists increased 27% - they now have 33 participating providers. Ameritas members will now have more choices. Most Ameritas plans marketed by IFS still give you complete freedom to use any dentist you want.

Extending COBRA Subsidy a Third Time?

Today is March 31st and this is not an early April Fool’s joke! Congress has gone on a two-week recess and did not approve extending the American Recovery and Reinvestment Act of 2009 (ARRA) COBRA Subsidy. Therefore, employees laid off after March 31st will not be eligible for the 65% government subsidy for COBRA premiums.

However, most experts agree that Congress will likely extend the COBRA subsidy. They have already extended this twice before. If it is extended, it will in all likelihood be retroactive to April 1st.

Unfortunately we will have to wait until at least April 12th when Congress is back in session for an official answer.

How Will Healthcare Reform Affect You and Your Business?

IFS has prepared a timeline for what can be expected under the current version of the Health Care bill that was signed into law March 23, 2010. For a breakdown on what to expect click here.

Health Care Reform: How It May Impact You and a Detailed Comparison

With the House of Representatives passing the health reform bill and the President signing it into law many clients and employees are trying to determine how it will impact them. While many details are still being sorted through this is what we know if you have health insurance through work.

You will be able to keep your current plan, or in 2014 have the ability to purchase insurance through soon to be created state insurance exchanges.

Within 6 months plans will stop setting lifetime limits on coverage and allow children to stay on their parents plan until age 26. Insurance companies will be required to cover children with pre-existing conditions, but will be able to deny adults without prior insurance with pre-existing conditions until 2014.

Insurance companies will be forced to pay a 40% excise tax on high value group plans, but not until 2014.

In 2013 Flex spending accounts will have a reduced maximum of $2500 a year and over-the-counter medicines will be disqualified.

In 2018 those families making over $250,000 will pay more in Medicare payroll taxes and unearned income will be subject to a 3.8% tax.

In the state run exchanges you can buy subsidized coverage if you the employee pay more than 9.5% of your income to get insurance or if your employer's plan covers less than 60% of costs.

If you qualify for a subsidy and buy a plan that covers abortion you will pay a separate premium.

If your income for a family of four is less than $88,000 and your cost for insurance is between 8 and 9.8% of your income, you can get a voucher from your employer to buy insurance on the exchange.

Finally, most Americans would be required to buy health insurance.

For a comprehensive detailed review of all the provisions in the passed Senate Bill and the changes proposed int he Reconciliation Bill please go to the Kaiser Family Foundation website: http://www.kff.org/healthreform/upload/housesenatebill_final.pdf

A synopsis of a few major changes are outlined by Reuters here: http://www.insurancejournal.com/news/national/2010/03/19/108294.htm

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

Temporary Extension Act of 2010 Extends the ARRA COBRA Subsidy

For those clients that are required to offer COBRA you may have not yet heard, Congress has agreed to extend the 65% COBRA subsidy to employees who are involuntarily terminated through March 31, 2010. In addition, the below notice highlights other changes including new penalties for non-compliance and a second election period for certain individuals.

Click on the link below for details from our preferred COBRA administrator Ameriflex.

For those clients currently administering COBRA yourself you may want to call IFS about using Ameriflex instead. Our clients receive a discounted rate from Ameriflex and we take no commission on this product - saving you money !


http://trustifs.com/breaking/ben_breaking_news_03092010.html

Aetna enrolls IFS into their Premier Producer Service program.

Effective immediately, IFS Benefits employees have a new tool to service their Aetna clients with - the Premier Producer Service program. This highly exclusive service model gives IFS direct access to highly trained employees from Aetna. Key employees in various Aetna departments such as billing, enrollment, renewal and new business sales have been assigned to IFS. Dedicated phone, fax and e-mail helps identify the inquiries as a priority. "Our current Aetna clients will be thrilled to know that we have access to key contacts there." says Stephen Blewitt, GBA - Vice President of Insurance and Financial Services, LTD of Delaware (IFS).

IFS is the only insurance agency in Delaware who was awarded with this program. Blewitt is not surprised, "Our employees believe we are different from our competitors and this recognition validates that." In fact, with the growth in the employee benefit's division, IFS is one of the largest independently owned insurance agencies in Delaware.

Aetna re-entered the small group insurance market in Delaware in February 2009. They provide health benefits to more than 175,000 members in Delaware. Programs like this will give current and prospective IFS customers a comfort level that the inevitable issue that may arise will be addressed promptly.

Joe the Plumber Doesn’t Need to Wait Any Longer

As President Obama and many other “experts” prepare for the televised bipartisan summit on health care reform scheduled for February 25th, many small business owners are looking for relief with their health insurance premiums. Don’t expect a clear answer next Thursday. Don’t misunderstand me, health care reform is coming – but what it will look like and when it will happen is anybody’s guess.

In fact, a new poll released last week by Rasmussen Reports (Click here to view) , shows that 61% of voters want Congress to throw out the existing bills and start all over again! 54% say to wait on this topic until after the congressional elections in November. Even if the bills were passed today – true reforms don’t kick in until 2013. That certainly isn’t going to help Joe the Plumber’s small business who just got walloped with a 20% insurance increase effective March 1st!!

So what does a business owner do? Certainly not wait for the government to come to the rescue. Call your insurance broker or find a new one with creative ideas to help your business control these insurance costs. The group health insurance marketplace is coming out with new and creative ideas all the time. Joe the Plumber doesn’t have time to learn all about these programs, but his broker does – or he better otherwise Joe will find a broker who does understand them.

New prescription plan riders, creative hospital co-pays and dual option plan designs are simple approaches that many businesses have yet to implement. The Consumer Driven Healthcare plans have been around since 2004. Have you taken advantage of the lower premiums and tax savings that come with Health Savings Accounts (HSAs)? How about reducing your premium in exchange for sharing the cost of a deductible with employees by implementing a Health Reimbursement Arrangement (HRA)? Go further and explore self funding your prescription plan or medical plan.

You say you have done all of these things and more, and still looking for relief? Although they make up a smaller portion of your employee benefit costs, have your broker work on the rest of your benefits, dental, life, disability, vision…..the list goes on.

So don’t wait around – take action now. Or call me and I’ll be your new broker and do the work for you.

Steve Blewitt, GBA Vice President of IFS Benefits Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.

"Away from home help"

Many employers today purchase Group Life AD&D and Disability benefits for their employees. Why not ? Despite the challenging economic times these insurance products are relatively low cost and have a high value. An unexpected death could leave family members in a difficult financial situation. How would you pay your bills if you suddenly became disabled and you didn't have disability insurance? For many of us our employers have taken these concerns away by providing such insurance products.

Unfortunately, for many small businesses, these products have become a commodity. Purchasing decisions are made on price alone - usually with the least expensive insurer. During the sales process, the insurance agent may highlight some value added services - many which most buyers forget about.

However, in the aftermath of the tragic earthquake in Haiti now may be a good time for employers to review the value added services included with their life and disability products. Many insurance companies offer assistance when traveling more than 100 miles from home. Typically an employee simply dials an 800 number to access these benefits. These services can be as basic as pre-trip planning - like weather forecasts at your destination or visa, passport and immunization requirements. More complex services like emergency medical evacuation and transportation can be handled by organizations that insurers have partnered with. Lincoln Financial Group partnered with MEDEX Assistance Corporation to provide these services. In the worst case scenario that results in death these companies may even handle return of mortal remains of the deceased traveler.

Don't think these programs exist ? Check out the web sites of just a few group insurers like Unum or the Hartford. Or check your current group insurance policy and see if this benefit is part of your plan. And the next time your agent or broker explains some of the value added services insurance companies include - realize that sometimes these could be more important that you think.

Finally, if you have not yet made a donation to the victims of the Haiti earthquake, please consider giving through an organization like the Red Cross.

Steve Blewitt, GBA Vice President of IFS Benefits. Steve is licensed in Life and Health in many states. Steve is actively involved in the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, Delaware Society of Human Resource Management, Associated Builders and Contractors of Delaware, Delaware Contractors Association, Delaware State Chamber of Commerce, and New Castle County Chamber of Commerce.