News and Specials from Honor State Bank

How will the Health Reform Law impact you as Employer in the near future?

Here is a very simplified overview of some of the provisions that may affect your employer-sponsored health plan.

Health Plan Changes

All plans have the right to keep the coverage that they had on March 23, 2010 and will be exempt from many reforms -until there is a plan change in the future.
Lifetime and Annual limits may not be imposed on essential benefits.
Adult children may stay on their parent's policies until age 26. (Most commercial carriers made this provision effective immediately)
Plans may no longer impose pre-existing condition exclusions for children under 19 yrs.
New policies must cover the full cost of preventive care and immunizations.

Small Business Tax credits

Small businesses with fewer that 25 employees and average wages of less than $50,000/yr get up to 35% tax credit for paid employee premiums. A full tax credit may be available to small businesses with fewer than 10 employees and average wages of less than $25,000

Employer reporting requirements:

Beginning in 2011, employers must disclose the value of health care benefits on the employee's annual W-2.

Your insurance agent and tax professional will be busy keeping you informed on these and other changes to expect in the future.

Patricia E. Mutton, RHU, REBC

Registered Employee Benefit Consultant

Boyer Agency Inc., Manistee MI

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In these uncertain times, there are several things a business owner should consider in addressing the rising costs of their employee benefit programs.

HRA's An employer can offer a high deductible health plan with a wrap around Health Reimbursement Arrangement. This can reduce premium costs and is fully compliant with the IRS Code.

Medicare Carve-Outs By moving Medicare eligible employees from the company group health plan to a Medicare Advantage policy, the average age of the employee census is reduced, which will also reduce the health plan premiums.

Voluntary Benefits By offering group life, disability, AFLAC, and other similar payroll deducted products, employers can provide access to an entire menu of benefits at group prices without adding to the employer's costs.

Business owners should seek out highly skilled employee benefit specialists to help them navigate the ever-changing employee benefit landscape. Saving time and money through better decision making.

David Ford - Ford Insurance Agency, Inc

Local Perspectives: New Health Care Legislation