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11/09 - In This Issue
Senate Bill Would Extend COBRA Subsidy
Small Businesses Sputter Due to Rising Health Insurance Costs
New Personal Lines Newsletter
November is Long Term Care Month
 
Quick Links   
Legislative/Regulatory News
 
Federal Regulators Mull Rules to Enforce Mental Health Parity

The Mental Health Parity and Addiction Equity Act of 2008 revised provisions of the law relating to mental health and substance abuse benefits in group health plans to require equivalent cost and treatment limits for these benefits and medical/surgical benefits provided under the same plan.  Click here to continue.

IRS Explains How COBRA Premium Subsidy is Reimbursed When Subsidy Exceeds the Employer's Payroll Tax Liability

Under the American Recovery and Reinvestment Act of 2009 (ARRA), assistance eligible individuals pay a reduced COBRA premium equal to 35% of a plan's COBRA premium. For COBRA coverage provided under federal law, the employer pays the other 65% and then is reimbursed for the subsidy by the federal government through a payroll tax credit. But what happens if an employer has had a
reduction in its business and doesn't have sufficient payroll taxes from which to recover the 65% payment?  Click here view the information letter from the IRS.

Senate Bill Would Boost, Extend Federal COBRA Subsidy

With hundreds of thousands of laid-off employees soon to lose a federal subsidy of their COBRA health insurance premiums, more lawmakers are introducing legislation to extend and increase the subsidy.  Click here to continue.

Employers Offering Health Benefits Can No Longer Ignore HIPAA

If you are an employer offering health insurance to your employees (a Health Plan Sponsor), you know that your group health plan (including any medical, dental, vision and health FSA benefits) is considered a "covered entity" under the HIPAA privacy and security rules.  For many of you who are Health Plan Sponsors, HIPAA privacy and security compliance was a one-time event involving a plan amendment, a few changes to vendor agreements, a notice to plan participants and some training.  Unfortunately, Health Plan Sponsors can no longer ignore HIPAA.  Click here to continue.

Defense Authorization Act Expands FMLA Rights for Relatives of Veterans

On October 28, 2009, President Obama signed the National Defense Authorization Act for Fiscal Year 2010 (the "NDAA"), which, among other things, expands the scope of the provisions of the Family and Medical Leave Act ("FMLA") pertaining to leave for qualifying exigencies and military caregiver leave. Specifically, the NDAA now permits family members of active duty service members to take leave for a qualifying exigency.  Click here to continue.

Ceiling on LTC Deduction Surpasses $4,000

The IRS has announced increased deductibility levels for Long Term Care insurance policies purchased in 2010.  Click here to continue.

Health Risk Assessments Face Bias Hurdle

Employers may have to scramble to comply with IRS rules implementing a genetic nondiscrimination law. With many companies beginning their fall open enrollment for their health care plans, employers will have to make sure questions on family medical history are removed from any health risk assessments that they reward employees for completing.  Click here to continue.

Basic Medicare Premium to Rise 15% Next Year

The basic Medicare premium wil shoot up next year by 15%, to $110.50 a month, federal officials said recently.  Click here to continue.

Updates on Two New Pennsylvania Laws: Mini-COBRA and Dependent to Age 30

To address the need to extend health care options for those newly unemployed, and help provide coverage for the growing number of uninsured Pennsylvanians, Gov. Edward G. Rendell signed two new laws: one is known as "mini-COBRA"; the other concerns health insurance coverage for adult children. Click here to continue.

Question of the Month

Question: We've heard that the Medicare Secondary Payer mandatory reporting rules require that health insurance claim numbers or Social Security numbers be provided to CMS.  In the past, it has been difficult to obtain those numbers for our employees' spouses and other family members. Do the rules really require that information?  Click here for the answer. 
 
Benefit Trends
 
Small Businesses Sputter Due to Rising Health Insurance Costs

Small businesses, America's little engine that could, are losing steam due to rising health insurance costs, according to testimony at a Senate committee hearing recently.  During the past decade, the cost of health insurance for small businesses has swollen by 123%, according to figures presented Sen. Tom Harkin (D-Iowa), chairman of the Health, Education, Labor and Pensions committee.  Click here to continue.

Benefit Enrollments Should Not Be "One and Done"

Companies that look at benefit enrollments as a "one and done" process are missing a golden opportunity, according to a new white paper.  Employers should trade that approach for one of building relationships with employees that span the entire year.  Click here to continue.

Defined Benefit 401ks Set to Make Their Debut

Small business owners have plenty of options to choose from when it comes to a qualified retirement plan for the company. It can range from a Savings Incentive Match Plan for Employees (SIMPLE) to a Simplified Employee Pension (SEP) to a 401(k). But now there's a new kid on the block.  Click here to continue.

HRAs Today: A Pretax Health Benefit Designed for Savings

With an HRA, employers can help their employees offset the rising cost of health care while saving the company money on the overall cost of offering health coverage. HRAs can also help employees take that first step toward consumer-directed health care.  Health Reimbursement Arrangements can be the ideal solution for employers looking for alternatives to increasing heath care costs,
as well as ways to attract and retain valued employees.  Click here to continue. 

Survey Stresses Voluntary Benefits' Strategic Role

Voluntary benefit programs are an integral part of employee benefits offerings that help employers afford to meet the growing financial-protection needs of a diverse workforce, close alarming coverage gaps and promote choice during challenging times, notes sweeping new research on the topic.  Click here to continue.

The Power of Plastic

Nearly everyone is familiar with swiping a card to pay for groceries, gas and movie tickets. That familiarity, ease and convenience is helping the growth of debit cards for health savings accounts, which patients can use to pay for their pharmaceuticals, copays, medical equipment and hospital expenses.  Click here to continue.

Tweeting Health Benefits...in 140 Characters or Fewer

Benefits managers are getting over their aversion to talking publicly about health benefit plans and using social media to cut through the clutter of information and connect with employees.  Click here to continue.
 
Personal Lines Updates
 
New Personal Lines Newsletter

Click here for helpful tips to keep you and your family safe throughout the winter months.

Exercise Caution with Your ATV

The U.S. Consumer Product Safety Commission (CPSC) reports that approximately 600 people die each year and nearly 122,000 are injured each year due to all-terrain vehicle (ATV) accidents. The CPSC defines an ATV as an "off-road, motorized vehicle having three or four low pressure tires, a straddle seat for the operator, and handlebars for steering control." Unfortunately, about 1/3 of these deaths and injuries involve children under age 16.  Click here to continue.
 
For Your Information
 
November is Long Term Care Month

Long Term Care Awareness Month couldn't have come at a better time. With healthcare issues on the minds of Americans, we're committed to sharing the facts about long term care. We can help you learn how to talk with your loved ones about long term care planning to help protect your financial lives, your family and your future.  Click here to continue.
 
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