| Issue: # 12 |
February 1, 2008 |
Greetings!
Keeping you informed of the latest developments in the employee benefit marketplace.
If you have any questions, e-mail Bill or Vanessa. To learn more about Advantage Benefits, click here. Many of our clients have found these newsletters to be quite helpful and we have now set up a link to hold all the archived newsletters on-line that can be accessed at anytime.
If you know anyone, who may find this information of interest, please forward them this newsletter (there is a link on the bottom), and they can subscribe themselves.
Sincerely,
Bill Randell & Vanessa Costa
Advantage Benefits |
| Health Reimbursement Account (HRA)
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Many years ago most of us had plans that covered hospitalization at 100%. Over time we downgraded to various co-payments of $150, $250, $500 & $1,000 for admission to a hospital.
Some employers would calculate the premium savings to downgrade, and if the numbers made sense, they would offer to pay the hospitalization co-payment for employees. Again, there can be many versions of this reimbursement, it could be 50%, or some other number the employer is comfortable with.
This type of arrangement is technically defined as a Health Reimbursement Account (HRA).So, many employers already have an HRA in-force and many not even realize it. It does not matter what carrier you use, basically, the HRA is an "administrative part" of your existing health plan.
In light of Healthcare Reform and all of the complexities that have resulted, it is recommended that your reimbursement to employees be clearly defined. In fact, a plan document, similar to Section 125 Plans, should be adopted.
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| Imaging Co-Pays - Reminder
Sneaking Their Way In |
Upon receipt of a renewal package, we nervously open and hope for a single digit increase. As brokers, there is no additional incentive in switching carriers. Our goal is to get our clients the best rate & benefits available.
After we look at the rates, we then look for any plan benefit changes mandated by the carrier. This year many companies, depending on the plan, are adding an imaging co-payment mainly for MRI, CAT and PET scans anywhere from $50 to $150 per exam. We need to be careful and let our employers know when this has happened.
Just as important employers need to clearly tell their employees about any new imaging co-payments. The new co-pay is a not a one time charge, it is per scan, per person.
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Part-timers
In the past, many employers have lowered their hours requirement to allow part-timers to participate in the employer sponsored Group Health Plan. While they may allow them to participate, they may not pay any,or a lesser portion, compared to full timers. Please be cautious if you open the door to part timers.
We suggest you define eligibilty as 35 hours for health insurance, maximum allowed by the Commonwealth, and do not lower that number unless you are fully prepared to treat those individuals as full timers and pay in the same manner.
You can direct those employees working less than 35 hours to the Commonweath Connector, where they can find plans available for those individuals that are not eligible for their company's group plan. In fact, they may even qualify for a subsidized plan if they meet certain income guidelines. | |
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| Telephone Sales Calls
Very Misleading
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There are many terms in the Health Insurance Marketplace that solicitors are using promising lower health insurance rates:
- FSA (flexible spending accounts)
- MCC (Minimum Credible Coverage)
Advantage Benefits Group (ABG) understands that service is the only item that distinguishes ourselves from the others. We are well versed on all of the above items and analyze what is appropriate for our clients and what is not. This analysis is based on many factors:
- Company Contribution to Insurance Plans
- Industry standards & Nature of Business
- Volatility and age of your workforce
When we review the options for your insurance we present many alternatives,but for the most part, we have a very good sense of "the next logical step" for your group. As health insurance premiums continue to rise, it is understandable that employers are open to hearing something that may offer relief and we are there to inform you of all the latest developments. Just be aware, there are no "miracle" products or pricing out there.
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