eNews from Cypress Benefit Administrators 8-31-11

We enjoy bringing you information and reminders to help you stay abreast of new Cypress developments and industry compliance requirements. Please let us know how Cypress Solution eNews can be of further service to you.

In This Issue:

Michigan Law Imposes 1% Assessment on All Paid Claims Under Self-Insured and Fully-Insured Health Plans
Annual Medicare Part D Enrollment Period Moved to October 15 through December 7

Michigan Law Imposes 1% Assessment on All Paid Claims Under Self-Insured and Fully-Insured Health Plans

Currently, Michigan imposes a 6% use tax on Medicaid HMOs and plans providing Medicaid mental health services. The purpose of the use tax is to finance the state's share of Medicaid, but the federal government has indicated it will bar Michigan from continuing this financing approach. As a result, Michigan needed to repeal the use tax and come up with a replacement revenue stream. Learn more about the newly enacted 1% assessment on all "paid claims," how this will impact insurers and TPAs, who will be responsible for paying the assessment, and potential ERISA-related legal challenges.

Annual Medicare Part D Enrollment Period Moved to October 15 through December 7

The annual Medicare Part D enrollment period has been moved to October 15 through December 7, beginning with enrollment for 2012. This change will require plan sponsors to update their Medicare Part D Notices of Creditable or Non-Creditable Coverage, and most likely will require plan sponsors to provide the notices to Medicare-eligible participants by October 15 of this year. Learn more about the changes and find a link to updated model notice forms.

If you have any questions or are looking for solutions, please feel free to contact us. We are happy to help!

Sincerely,

Cypress Benefit Administrators