Zinser Benefit Service - Small Business Insurance

IRS issues guidance on W-2 reporting

Zinser — Fri, 20 Jan 2012 20:18:03 +0000

On January 3, 2012, the IRS issued additional interim guidance on the W-2 reporting requirement that is part of health care reform. In this guidance, the IRS confirms that employers filing fewer than 250 W-2s are not required to report the value of health benefits. This guidance extends that relief until further guidance is issued.

Additionally, the release indicates that specialty coverage, if included with medical benefits, must be reported.

The guidance reaffirms that this is a reporting requirement only and does not impact employees’ taxable wages.

Questions and Answers:

Q: Are specialty products, if offered as one plan to an employee, included in the W-2 reporting requirement?

A: According to the latest guidance from the IRS, yes. If the products are embedded or provided together, the total must be reported.

Q: How do contingent premium groups report the value of health benefits under the W-2 reporting requirement?

A: Please refer any customers with this question to their own tax and/or legal advisers as we do not provide tax advice. The latest information from the IRS related to the W-2 reporting requirement can be found at http://www.irs.gov/pub/irs-drop/n-12-09.pdf and may provide additional guidance.

Child Only Coverage

Zinser — Tue, 10 Jan 2012 16:55:47 +0000

Anthem is offering Child-Only health coverage in KY during open enrollment in January 2012

Eligibility Requirements:

Under 19 years of age and a resident of KY
Enroll during open enrollment (Jan 1, 2012 – Jan 31, 2012)

Other Important Information:

Do not cancel current health coverage until your policy has been approved and issued
One child per application. Each child enrolling for coverage will need to complete a separate application
Health history will be reviewed to determine the rate level
An applicant with other coverage or other coverage available at the time of the effective date is not eligible for guaranteed issue

Blood Donation

Zinser — Mon, 19 Dec 2011 17:31:51 +0000

Here’s a nice document about giving blood. Courtesy of United Health Care.

UHC Blood Donation Newsletter

Generic for Lipitor Now Available

Zinser — Sat, 10 Dec 2011 13:57:02 +0000

On November 30, 2011 Ranbaxy Laboratories launched the generic equivalent for Lipitor, atorvastatin. Ranbaxy will be the sole manufacturer of this generic drug for the next 180 days. Other manufacturers of the drug will be available in May 2012.

The savings at the beginning will be minimal, but once May 2012 roles around we should see substantial savings. This means big savings to consumers and payers alike.

Long-Term Care Costs Continue To Rise

Zinser — Tue, 01 Nov 2011 12:40:53 +0000

According to a 2011 MetLife market survey of Nursing Home, Assisted Living, Adult Day Services and Home Care Costs national average rates for a private nursing home room increased 4.4% to $239 daily or $87,235 annually.

Some other statistics:

In 2010 66% of nursing home residents were women. The median age of residents was 82.7.
Current estimates show that the average age of an assisted living resident is 86.9 years old.
The median length of stay in an assisted living facility is 25.6 months.
The majority (87%) of nursing homes surveyed provide Alzheimer’s or dementia care; of those, 80% charge the same rate for care
Almost three-quarters (72%) of assisted living communities surveyed provide Alzheimer’s and dementia care, 50% of which charge an additional fee for the service.

The 2011 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs can be downloaded from www.MatureMarketInstitute.com.

Here’s the link:

http://www.insurancebroadcasting.com/news/MetLife-Mature-Market-Institute-2719254-1.html?utm_source=editorial&utm_medium=email&utm_campaign=Voluntary_inBrief_010411_103111#

November is Diabetes Awareness Month

Zinser — Mon, 31 Oct 2011 17:53:09 +0000

November is Diabetes Awareness Month. This is a cause that we personally have a stake in because my father in law had diabetes. Our family participates in the Louisville ADA walk each year. I’m also proud to say that my wife’s family is the number one fund-raising family and friends team. They’ve been number one now for I’d say at least the last six years.

Here’s your newsletter

Diabetes Newsletter

Small Business Tax Credit

Zinser — Mon, 31 Oct 2011 17:45:02 +0000

With businesses winding down for the 2011 calender year, this tax credit calculation tool will come in handy to the many small business customers that health insurance companies have. This link is from United Health Care and goes over the small business tax credit.

Certain small businesses that offer health benefits are now eligible for health care tax credits. These vary depending on the tax-exempt status of the organization and employer contribution toward health benefits.

Eligible employers must pay at least half the cost of single coverage for their employees.
There must be no more than 25 full-time equivalent (FTE) employees, not counting owners or their family members.
Average annual wages of employees must be less than $50,000 per FTE.

We are not tax advisors, so please consult your personal tax advisor if you have any questions regarding this tax credit.

http://www.uhc.com/united_for_reform_resource_center/health_reform_provisions/small_business_tax_credit.htm

Uninsured Rise and the CLASS ACT

Zinser — Tue, 04 Oct 2011 20:32:02 +0000

In September, the U.S. Census Bureau released their annual report on poverty, income, and the uninsured and the numbers reflect another rise in uninsured Americans.

Here are some highlights from this report:

The total number of uninsured rose to 49.9 million, an increase of almost a million Americans in one year
The number of uninsured with household incomes over $75,000 totaled 9.5 million.
The number of children enrolled in private insurance dropped by 2.8 million, while the number of children enrolled in Medicaid plans rose by 3.5 million, a 15% increase.

We need to work towards promoting measures that contain costs, improve wellness in not only our workplaces, but at home, try to control the number of frivolous lawsuits, and finally expand consumer choice. The current legislation does none of these items.

The CLASS Act was envisioned to be a voluntary long-term care insurance program providing those paying into it a level of protection from disability costs while increasing the flexibility of how and where benefits are used. It is intended to do this without a mixture of taxpayer funds or mandates at a low enough cost to make it affordable while still self-sustaining. There are some design flaws with this part of the PPACA legislation. The major flaw being adverse selection. Since this is a guaranteed issue type product, and you only have to be vested in the program for two years, it would attract a fair amount of sick individuals that would need care. The healthy citizens would have no incentive to buy in now, when they’re young and healthy, and would more than likely delay signing up until care is needed.

Many Republicans, and a growing number of Democrats believe the law should be repealed to eliminate the program and prevent additional fiscal problems. They even have bipartisan support to repeal this part of the bill.

This was suppose to go into effect January 1st of this year. As of the writing of this post, we have no idea if this program will be effective anytime soon. HHS has not made a final decision, but has said they will not start the program until it is deemed financially sound.

Health Insurance Rate Reviews

Zinser — Mon, 26 Sep 2011 14:39:51 +0000

Here is a recent article about the rate review process that was started on September 1st of this year. HHS released a statement stating how this rate review process has helped keep premiums down. However, an industry trade group, America’s Health Insurance Plans (AHIP) states that the rate reviews focus too much on rate increases and not enough on the real issue, rising cost of doing business in the medical industry.

As of the writing of this article, there appears to be at least 8 states this year who have won in getting health insurance companies that were asking for double digit increases to lower their renewals. Kentucky is not one of these states.

There appears to be some validity to HHS promoting the success of these rate reviews. This article doesn’t go into why or how the states that have succeeded in getting double digit rate increases overturned, just that there are more states getting grants from the federal government to assist in these rate reviews.

http://aishealth.com//archive/nhpw092611-04

Small Business Insurance

Zinser — Fri, 26 Aug 2011 21:22:56 +0000

Designing, implementing and overseeing an effective employee benefits plan can be an overwhelming venture — especially for someone who is dealing with other personnel issues. At Zinser Benefit Service, employee benefits are our business. Our job is to make your job of administering your company’s benefit program easier. Small Business Insurance