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Issue: # 41 December 21 , 2009 
Costa 2009 
Dear :
    
Below is our final newsletter of the year!  We would like to take a moment to wish you all a  Wonderful Holiday Season and Healthy New Year!
 
Thank you for entrusting your business with us.  We enjoy working with you and hope the new year brings you continued success.
 
Lets also hope that somehow our health insurance renewals stabilize.  
 
Two quick reminders:
Don't forget to take advantage of the Fitness Reimbursement from your health insurance carrier. Don't forget to check out the Walmart Prescription Drug Prgram for your generic drugs.
 
As always, if you have any questions email Bill or Vanessa.  We hope you find these newsletters helpful, please forward to anyone who may find this of interest. To learn more about Advantage Benefits click here.  
 
Next time you are in our area, check out our new electronic message board.
 
Sincerely,
 

Bill Randell, CLU, CHFC             Vanessa Costa, CLU,CHFC
Advantage Benefits Group, Inc. 
COBRA  subsidy - Update
Extension MAY NOT be looking good

The American Recovery and Reinvestment Act provided for employees laid off between Sept. 1, 2008 and Dec. 31, 2009 to pay only 35% of the cost to stay on thecompany group plan, while the government subsidized 65% of the monthly COBRA premium.    Although it appeared the date would be extended into 2010, this does not seem to be the case right now.

 
As reported by the New York Times, the Senate is preoccupied by "broader health reforms" and it is unlikely that a bill to extend the COBRA will pass before the end of the year.     For employers that have employees currently taking advantage of the subsidy, remember this ends after 9 months.  
 
For those employers, who may be thinking of laying off an employee, you may want to consider doing it before the end of the year to allow your employee to receive the 65% subsidy for 9 months.
Deductible plans 
What is old is new again
In the mid 80's, key health insurance terms were:
  1. Deductible
  2. Co-insurance
  3. Maximum out-of-pocket
When the HMO's moved in, the deductible plans moved out. The term CO-payment, or a fee for service, replaced the above terms and plans.  Now, the deductible is back.  Due to the continued increase in group health premiums, employers have been forced to implement traditional deductible plans.  In fact, this final quarter of 2009 has seen more employers make the changeover. 
 
The key with implementing a true deductible plan is to educate employees on how it works and what the deductible applies to. Essentially, a $500 deductible plan means the first $500 of expenses is paid by you before coverage kicks in. The only item that escapes the deductible is routine services (annual wellness exam, mammogram, etc). Everything else is subject to the deductible including office visits and the following:
 
  • anything outside a routine ofice visit; for example, x-rays and blood work
  • diagnostic tests like MRI, CAT and PET scans
  • hospitalizations
  • day surgeries

Prescriptions would still have the three tiered co-payment schedule and are typically not subject to the deductible.  If you have a deductible plan, remember to check the plan year, as it may not necessarily be based on a calendar year plan. Some plans also have deductible carryforwards.  If you have questions on deductible plans just email us.

Group term life insurnace
Great option for "uninsurable risks"
Recently one of our clients was working on his personal estate planning and was declined for individual term insurance due to health reasons.   Realizing the underlying business had only a nominal Group Term Life Insurance benefit, we upgraded his plan to:
  •  Two times salary
  •  Maximum of $200,0000

The policy was capped at $200,000, a requirement determined by the insurance carrier and typically based on the size of the business. The amount was not his ideal amount, but when there are medical issues and you cannot purchase insurance in the open marketplace, group term life insurance becomes a more viable option.

In this example,there are 2 things accomplished.  First, the business owner secures $200,000 of life insurance with no medical questions. Second, as more families struggle to make ends meet, they cannot often afford life insurance on their own.  The group benefit now becomes a valuable insurance piece for employees as well as the owner.
 
If you have any employees that need life insurance, but are uninsurable, implement a company sponsored Group Life Insurance plan today.  E-mail us and we can work on quotes for you.
 
 
Ask Shelley
Motivating Employees
 
Question: In these challenging economic times, my staff should be happy that they have a job.  However, they seem to have low energy for their jobs and just not really performing as they have in the past.  What should I do?
 

Answer:  The economy has forced businesses to focus on generating revenue and delivering bottom-line results, yet forgetting the importance of also focusing on their people.  This puts any organization at risk for poor performance, low engagement and ultimately high turnover.    For most employees, the paycheck isn't enough.  They need to feel valued and challenged.  What do you do? 
 
Begin by making employee engagement one of your new priorities.  Your employees know the organization from their perspective and can easily tell you where some simple improvements can be made.   For further advice on how to improve your employee engagement practices e-mail Shelley.