Where does your health insurance dollar go?

Thursday, August 26th, 2010 | Uncategorized | Comments Off

Have you ever wondered where your health insurance dollar really goes?

Take a look at this:

http://www.americanhealthsolution.org/assets/Health-Care-Costs/II.-Premium-Dollar.pdf

Do I need an umbrella policy?

Wednesday, August 25th, 2010 | Uncategorized | Comments Off

Wealth. Lawsuits. It’s easy to assume a relationship between the two. Unfortunately, that assumption is a common error made by many people. Anyone can be sued, regardless of income level, for just about any reason. Personal liability lawsuits can result in judgments amounting to six and seven figures.

If you’re not covered by Travelers An umbrella policy, you could be risking everything – your car, your home, the lifestyle to which you and your family are accustomed, and possibly even your future income.

Will Your Primary Insurance Policies Be Enough?

Typical auto, homeowners, and other property insurance liability limits are not adequate to cover the large court judgments being awarded these days. If you ever have to pay such a judgment, an umbrella policy can provide extra protection and may help you safeguard your assets. This policy provides the added protection you may need if you are held liable in certain situations, including when someone is:

• injured on your property

• injured in an accident involving your auto or boat

• injured in a hunting accident

Have You Covered Every Possibility?

There are also some types of personal liability losses that your other policies may not intend to cover, including libel, slander, defamation of character or invasion of privacy. An umbrella policy fills gaps in your insurance policies by extending protection for these other types of claims. Best of all, this vital insurance protection is relatively inexpensive.

Enjoy Peace of Mind

This type of policy provides an “umbrella” of protection over your other personal liability policies. If you’re involved in a lawsuit covered by our umbrella policy, you can enjoy the security of an additional

one to ten million dollars of liability protection.  And, if you ever require legal defense for a covered claim, an umbrella policy will contribute to your defense up to your policy limits. If you’re interested in learning more about an umbrella policy, contact your Insurance Planning Alternatives independent agent today. At Insurance Planning Alternatives, we’re committed to bringing you innovative insurance solutions that stay in-synch with your ever-changing life. Our personal insurance offerings include homeowners, condominium, renters, automobile, flood, boat and yacht, personal liability (umbrella), valuable items, and identity theft protection. Our full line of companion coverages offers you the convenience of dealing with just one company. Contact us today for details.

Getting to the bottom of your health care costs

Friday, August 20th, 2010 | Uncategorized | Comments Off

Did you know: More care isn’t necessarily better care? 

Sometimes patients receive tests they may have already had, treatments that haven’t been proved to work and even unnecessary hospital stays. In fact, on average, one-third or more of all procedures performed in the United States appear to be inappropriate or offer questionable benefits to patients, according to an assessment conducted of RAND Corp. studies over the last 10 years.

NEW EMPLOYER FORM W‐2 HEALTH INSURANCE REPORTING REQUIREMENTS

Friday, August 20th, 2010 | Uncategorized | Comments Off

NOTE: As of this writing, the IRS not issued any guidance on this reporting requirement.

The Patient Protection and Affordable Care Act (PPACA) adds a new reporting requirement aimed at improving health care transparency and cost awareness by requiring employers to report the value of employees’ health benefits on Form W‐2s.  For taxable years beginning after December 31, 2010, employers will be required to calculate and report the aggregate cost of applicable employer‐sponsored health insurance coverage on employees’ Form W‐2s.1   This new reporting requirement applies for employees’ tax years beginning after December 31, 2010.   However, because employees are entitled to request their Form W‐2 early if they terminate employment during the year,2  payroll systems need to be updated for this change by January 2011.  Therefore, while most W‐2s for tax year 2011 will be issued in January 2012, W‐2s reflecting the new health insurance information must be available no later than February 1, 2011, in the event that a terminating employee requests one.3  It is important to note that the aggregate cost of an employee’s health benefits will not be included in the employee’s taxable income. The W‐2 reporting will be a way to track coverage values for the 40% excise tax (starting in 2018) on “high‐cost” employer‐based medical coverage above certain thresholds (the so‐called “Cadillac plan tax”).4  The coverage costs (whether under an insured or self‐insured plan) that must be reported under the new requirement include:

• • Medical plans
• • Prescription drug plans
• • Dental and vision plans, unless they are “stand alone” plans (i.e., an employee may elect only dental oronly vision and is not required to also enroll in medical coverage)
• • Executive physicals
• • On‐site clinics if they provide more than de minimis care 5
• • Medicare supplemental policies
• • Employee assistance programs 6

If an employee enrolls in employer‐sponsored health insurance coverage under multiple plans, the aggregate value of all such health coverage (except certain benefits, discussed in section below) must be disclosed. For example, if an employee enrolls in employer‐sponsored health insurance coverage under a major medical plan, a dental plan and a vision plan, the employer is required to report the total value of the combination of all of these health‐related insurance policies. For this purpose, employers generally use the same value for all similarly situated employees receiving the same category of coverage (such as single or family health insurance coverage).7  Employers will not be required to provide a specific breakdown of the various types of coverage, but must only report an aggregate cost. For example, if an employee enrolls in medical, dental and prescription drug coverage,the employer only has to report the total value of all coverage, not a value for each individual benefit.

Benefits Exempt from Form W‐2 Reporting Requirements

The following employer provided benefits are not required to be reported on Form W‐2 under the new health carelaw:

• • Long‐term care, accident or disability income benefits
• • Specific disease or illness policies (such as cancer policies), and hospital (or other) indemnity insurance

policies where the full premium is paid by the employee on an after‐tax basis

• • Archer MSA or HSA contributions of the employee or the employee’s spouse
• • Salary reduction contributions to a Health FSA

Valuing Plans

The most challenging aspect of this new reporting requirement is determining the value of the employersponsored health coverage for each employee. In determining the value of health insurance coverage, the employer will calculate the applicable premiums for the taxable year for such health coverage for the employee under the rules for COBRA continuation coverage under IRC Sec. 4980B(f)(4) (and accompanying Treasury regulations). The value that the employer is required to report is the aggregate premium calculated under the COBRA rules, not the portion of the premium that the employee has to pay. If the employer’s plan provides for the same COBRA continuation coverage premium for both individual coverage and family coverage, the employer plan would be required to calculate separate individual and family premiums and the employer would report the value of the coverage the employee received.8 For example, if one employee received family coverage, the employer would report the premium amount for family coverage for that employee. For another employee that receives individual coverage, the employer would report the premium amount for individual coverage.  A particular challenge for employers might be that some of the plans covered by the new reporting requirement, such as on‐site medical clinics, are not plans that they have previously valued for COBRA purposes. With the new requirements, employers will need to come up with reportable values for coverage provided under these programs, and we understand that the IRS is currently working on this guidance.9

 1 Sec. 9002 of PPACA amended Internal Revenue Code section 6051(a) by adding a new subsection (14) to provide for thisreporting requirement.

2 Treas. Reg. section 31.6051‐1(d)(1).

3 Maureen M. Maly, Faegre & Benson, LLP, “Health Care Reform Includes Form W‐2 Reporting Requirement,” Society for HumanResource Management, May 7, 2010.

4 PPACA § 9001 and the Health Care and Education Reconciliation Act § 1401 adding new IRC section 4980I.

5 The term de minimis means (as provided by IRC Sec. 132(e)(1)) any property or service, the value of which is (after taking into account the frequency with which similar fringe benefits are provided by the employer to the employer’s employees) so small as to make accounting for it unreasonable or administratively impracticable. In other instances where the IRS was interpreting whether a medical clinic provided de minimis benefits, an on‐site nurse who provided emergency services was considered a de minimis benefit, while a clinic at a hospital that provided full‐scale medical treatment was not considered de minimis.

6 Maly, Faegre & Benson, LLP, Society for Human Resource Management.

7 Joint Committee on Taxation, “Technical Explanation of the Revenue Provisions of the Reconciliation Act of 2010, as Amended, in Combination with the Patient Protection and Affordable Care Act” (March 21, 2010); JCX‐18‐10, pg. 67.

8 Ibid.

9 Maly, Faegre & Benson, LLP, Society for Human Resource Management.

The Benefits of Benefits Plus are Huge!

Thursday, August 19th, 2010 | Uncategorized | Comments Off

Have you heard about Benefits Plus?  This program is completely cost free to your company, and provides all members of your staff with access to potential savings on their auto and homeowners insurance, giving them more money for other things in their lives.  Benefits Plus is Group Personal Insurance, which allows employees to purchase their personal insurance, like auto and home, at discounted group rates. 

Why should you consider Benefits Plus?  Here are just a few reasons… 

• Benefits Plus is a great way to add to your current employee benefits package, allowing you to attract and retain a qualified staff.
• Benefits Plus is easy!  Our trained insurance professionals handle all communication and implementation of this cost-saving program.
• According to Hewitt Associates, a national research company, within the next 3 years 35% of all companies will offer a group auto insurance plan.  Benefits Plus is your opportunity to keep your company ahead of the curve and implement your group plan now.
• There are no participation minimums in this voluntary plan, and the open enrollment period is year-round, two major changes from your group medical plan.
• Each employee is individually rated, meaning that the driving record of one individual affects only that individual.
• These savings are portable, so if an employee leaves your company, the can take their discount with them. Remember, each employee is individually rated, so even this portability will not affect any other employees rating.
• Travelers has over 5 million auto and homeowner’s policy’s in force, and a 24 hour claims staff of over 8,000.  This provides your staff with protection they can trust, in addition to local, knowledgeable service.

For more information, contact Nikki at nikki@ipagj.com!

Medicine Adherence: Taking Your Medication Properly

Wednesday, August 18th, 2010 | Uncategorized | Comments Off

Approximately one third of all prescriptions are never filled, and over half of prescriptions that are filled are not taken as prescribed in the United States. This rate of non-adherence includes patients taking drugs for serious conditions such as asthma, high blood pressure and diabetes. According to primary care physicians, the health of one in five patients is compromised by non-adherence. The consequence of poor adherence to medications is a critical issue that impacts your health and productivity. But understanding your medication can mean the difference between suffering and relief.

http://www.youtube.com/watch?v=7B0wPoMk5bc&feature=player_embedded

Special Open Enrollment Period for Adult Dependents on Group Health Plans

Monday, August 16th, 2010 | Uncategorized | Comments Off

Rocky Mountain Health Plans will provide a 60-day special enrollment period in September and October for adult dependents previously not eligible for health coverage through their parent’s group health plan.

The Patient Protection and Affordable Care Act (PPACA) requires all health plans to cover adult dependents up to age 26, regardless of financial dependence on their parents. This new regulation mandates additional eligibility criteria, including the coverage of married dependents.

In May, RMHP extended coverage to age 26 for dependents currently enrolled on a group health plan following our current eligibility criteria.

During the months of September and October, RMHP will accept Change Forms, which may be found here, to add adult dependents, not previously eligible (age 25, married, or financially independent) to be effective on their parent’s group plan starting October 1 or November 1, 2010.  Coverage is available for adult dependents until they turn 26.

 Completion of the RMHP Group Change Form is all that is needed. The Change Form must be submitted to RMHP by September 30, 2010, for an October 1, 2010 effective date and October 31, 2010 for a November 1, 2010 effective date.

Health Reform May Increase Premiums For Some Employers, Workers.

Tuesday, August 10th, 2010 | Uncategorized | Comments Off

The San Francisco Chronicle (8/9, Colliver) reports, “Employers and consumers sorting through their health insurance options may see a bump in their rates next year to account for the potential impact of some of the early elements of the federal health overhaul law, according to some health experts.” The provisions which will take effect this year include ones that “require health plans to cover adult children until age 26, extend coverage to children with pre-existing conditions, end maximum lifetime spending limits, and end the practice of retroactively canceling a member’s coverage for any reason other than fraud.” Still, “health policy watchers say it’s tough to know whether these reforms will have much impact on costs, which routinely outpace increases in wages and inflation.”

Controlling Medical Costs

Friday, August 6th, 2010 | Uncategorized | Comments Off

Take a look at this you tube video.

http://www.youtube.com/watch?v=MAyv1o4oTWk&feature=player_embedded

VOLUNTARY BENEFITS – A fit for today’s employer.

Friday, August 6th, 2010 | Uncategorized | Comments Off

Today’s voluntary benefits market is growing at 6 times the rate of employer paid benefits. Voluntary benefits have grown increasingly popular because of the exclusive advantages offered to both employers and employees. Six out of every 10 companies now offer at least one voluntary benefit.

Companies large and small can afford to offer many voluntary benefits at no cost and create a more attractive benefits package to their employees and prospective hires. Employees receive this package, and the advantages of group purchasing, all while retaining the privileges of individual ownership.  Voluntary benefits also give employees the advantage of tailoring their benefits to their personal needs.

Of course, there is a limit to the number of voluntary benefits that should be added to the package. Only those employees who want to take advantage of the benefit, often because of the discounted rate, will participate. It surely sounds like a win – win situation.

The real question becomes:

“How do you select the right mix of voluntary benefits that will deliver real value to the overall organization?”

This is where Insurance Planning Alternatives comes in.  We have not only the voluntary options to give you, but also the expertise to let you know what employees are asking for, and what other companies are offering their employees.

When deciding which voluntary benefit to select, employers need to ask:

Will this voluntary benefit deliver profound value in the way of recruiting and retaining good employees?

It’s no secret that voluntary benefits can be the favorable difference when competing for talented employees. Every recent survey has concluded that benefits are often a deciding factor in an individual’s decision to take a job. Eighty percent of respondents have indicated benefits were “very important in the job selection”. When voluntary benefits are combined with core selections, it creates a more attractive package for potential recruits and can serve as golden handcuffs for existing employees”.

Voluntary benefits are indispensable because they offer the employee a “Life-Changing” opportunity to satisfy personal and professional needs. Employers who provide such life-changing benefits are more likely to have a happy and productive workforce. These loyal employees will not want to leave for other opportunities and forfeit their ability to participate in these benefits, thus leading to reduced costs in turnover.

Reducing turnover is a strategy to offset rising costs in healthcare. You can accomplish this through voluntary benefits while providing increased value back to the employees. It’s been proven that the majority of employees who sign up for voluntary benefits are still employed by their company years later, opposed to those who do not participate.  As healthcare costs continue to rise, companies are forced to pass some or even all of the increase to the employee.

Understanding what your employee need and do not need is key: From employee’s perspective, voluntary benefits should not only offer exclusive group purchasing advantages but also offer greater value in assisting them to improve and change their lives.