Small Business Health
Insurance Update
Neighborhood Health Plan reaches
Settlement with DOI
Dear
We hope everyone is aware that 2nd quarter rates were not approved by the Division of Insurance (DOI) for the major HMO's in the Commonwealth of Massachusetts . If your plan renewed during this time (April-June), your pricing is based on last year's rates schedule.
Our main concern has been the possible retroactive adjustment upon resolution. Yesterday the state's 4th largest carrier, Neighborhood Health Plan, reached an agreement with the DOI. Here is the story from the Boston Globe.
Originally they proposed a 6.9% increase for 10 of their plans and 11% for the other 9 plans. The final settlement was to increase all 19 plans 7.7% effective June 1st. More importantly they agreed not to rebill retro-actively for April and May.
Let's hope Blue Cross, Tufts, Harvard-Pilgrim and Fallon settle soon and also do not bill retro-actively. If you know anyone else, who may find this e-mail of interest, please forward it. Lastly, as always please contact us with any questions or concerns.
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| COBRA Subsidy
May 31st current deadline | | Employees involuntarily terminated after May 31st, are not eligible for the COBRA subsidy. Although the House on May 28th passed The American Jobs and Closing Tax Loopholes Act of 2010 , the bill was stripped of a provision that would have extended the subsidies through Nov. 30. As a result, you are not eligible for the COBRA Subsidy, if involuntarily terminated after May 31st.
Senators Bob Casey (D-PA) and Sherrod Brown (D-OH) have co-sponsored an amendment to the jobs bill that would extend the COBRA subsidies for laid-off workers through the end of November. Fourteen other senators have already endorsed the amendment, which is being reviewed by the Senate.
So far, lawmakers have had trouble supporting the extension due to its $8 billion price tag. |
| 5 painful healthcare lessons from Massachusetts
Great Story | Check out another great article about the mistakes that have been made in Massachusetts. Story in Fortune. Here is a quick summary of 5 key points:
- Massachusetts plan does not control costs.
- Community rating, guaranteed issue and mandated benefits swell costs.
- Huge subsidies for low to medium earners could prove extremely expensive.
- The "exchanges" reward people for working less and earning less.
- The generous plans and added mandates give employers an incentive to drop health insurance
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| US Open
Starts today
| Masters Tournament had incredible live coverage on-line. Supposedly US Open officials are trying to match it, here is the link. If you need a break today, go on-line and enjoy the tournament. Picture of the 8th at Pebble Beach below.
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