August  2015   |  Vol. 1.6                                                                  Larry@LawmanConsulting.com


Consolidation Makes Room for New Players  

   The biggest story last month in health benefits comes down to one word: consolidation. Whether it's the Aetna-Humana merger, CVS buying Target's pharmacies, or Willis and Towers Watson combining forces - mass consolidation has benefits leaders and consumers alike wondering if this latest wave of consolidation will add up to.   When it comes to offerings that benefit consumers and employers, it's natural for many to fear that fewer players will equal less choice in health plans, less differentiation and innovation in every area from member experience to productivity and management tools, and less willingness to accommodate employer requests from data access to customization.
    But, there's good news. While these big mergers are grabbing our attention, there is an interesting trend happening at the other end of the market. In the last few years, health care startups have received an ever-increasing level of investment, suggesting that the days of innovation in health care aren't over - they're just beginning. The numbers speak for themselves - health care investing hit an all time high in the first quarter of this year, with U.S. medical startups raising a record $3.9 billion in venture capital. These startups aren't just raising capital - they are making huge inroads with strategic employers in a variety of areas - helping companies reduce health care costs, better manage diseases in their populations and more effectively engage their people around health benefits that make an impact.
    As you consider your 2016 health benefits strategy, you can be confident that the next chapter of health benefits is just beginning. The leaders in defining how we manage our health will be tech companies that can be bold and nimble enough to rethink the status quo, and the large players that open paths for partnerships and joint innovation. As the incumbents consolidate, these new players are becoming an increasingly viable alternative.
    To read more about the Aetna-Humana merger on my website, click here.


 

"We feel very passionate about our helping our clients reduce liability and improve their workplace through sound HR and benefits practices." 

 

Sincerely,

Larry Lawman

Lawman Benefits Consulting, Inc.

 
 
Breaking News...

Reporting Requirements: Increased Penalties and New Electronic Filing Steps

 

The Trade Preferences Extension Act of 2015 ("Act"), signed into law by President Obama on June 29, significantly increases potential penalties for insurers and employers that fail to comply with the new Affordable Care Act (ACA) Minimum Essential Coverage (MEC) and Large Employer reporting requirements first due in 2016.

 

As a refresher:

IRS Code 6055 requires insurers and self-insured plan sponsors to file reports with the IRS to verify whether an individual had MEC during a given calendar year to satisfy the Individual Mandate.

 

IRS Code 6056 requires an "applicable large employer" to file reports with the IRS verifying whether it offered minimum value and affordable coverage to full-time employees and their dependents in a given calendar year to satisfy the Employer Mandate.

 

The new penalties are effective for returns and statements required to be filed in 2016 for the 2015 calendar year.  Click here to access the Act.

 

 

New Electronic Filing Steps

Additionally, the IRS provided more information on the process for electronic reporting to the IRS. The electronic filing system known as the ACA Information Return (AIR) system is significantly more complex than simply uploading a PDF file containing the pertinent information. Employers, insurers and third-party fulfillment or filing software developers are required to complete the following steps prior to being able to electronically submit any Reporting Forms:

 

1.  Register with the IRS's e-services website, including submission of personal information about the person registering for the Submitting Entity

 

2.  Obtain an AIR Transmitter Control Code (TCC), a unique identifier authorizing each Submitting Entity to submit the Reporting Forms, and

 

3.  Pass a series of technical/system tests to ensure that Reporting Forms will be properly submitted when due.

 

The first two steps can be completed now. The third step is anticipated to become available later this year.

 

    Please feel free to contact us for further clarification.

 

 

   
 
HR Update...

Fill Out I-9's Completely or it Could Cost Your Company $$$
   
Justine Loehlein

Would I-9's be important to your company if they cost the company $605,250?   Well that is exactly what it cost a company based out of Richmond, CA. 


 

In July of this year, this company which involved the International Alliance of Theatrical Stage Employees Union Local 16A, did not see the importance of completing the I-9 forms completely. On the first page of the I-9 form, the employee is required to complete and sign. It is on the 2nd page that the employer must within three business days of hire, attest under penalty of perjury that the appropriate work authorization documents were reviewed and verified. 


 

The union created a "three-in-one" form that combined a bit of the W-4, sections one and two of the I-9 and withholding authorization for union dues. This combination was deemed "not compliant" and that the company needed to use the legal form in order to fill out section 2. The following failures were cited:

  • Incomplete I-9 form for four employees.
  • Couldn't locate forms for eight employees.
  • Incomplete employee sections for five employees.
  • Incomplete alien numbers for two employees.
  • Missing List A, B, and C documents.

Employers need to have a system for filling I-9s out on time and completely. They should also conduct routine self-audits that they keep a detailed record of for evidence of good faith in court proceedings.  


 


 
 
Client Spotlight ...

  

    


Capstan Financial Consulting group is a locally owned and operated full service financial advisory firm headquartered right in downtown Sarasota. Capstan was formed when a team of advisors left Bank of America/Merrill Lynch in May of 2010. They work provide comprehensive financial services and the highest degree of personal attention to individual and institutional clients by using a team-focused approach to ensure expert guidance, preparation, and responsiveness through all stages of life and regardless of market conditions.

 

As a division of Capstan FCG, Capstan Business Solutions Group works with employers to provide customized retirement plans for companies large and small. They have the experience to help ensure a cost-effective solution for every employer. With access to a full range of products from today's most reputable providers, and personalized guidance direct from a dedicated team of retirement planning specialists, each and every plan member will receive the tools they need to retire with confidence.

 

FLEXIBLE PLAN OPTIONS

401(k), 403(b), defined benefit, non-qualified, and more with direct access to industry leading providers


 

EMPLOYEE CONSULTATIONS & EDUCATION

Receive the highest level of service and personal attention... that's the Capstan difference!


 

INDEPENDENT AND OBJECTIVE CONSULTATION

Plan provider review, investment policy statement guidance, fee and service benchmarking

 

For more information: www.capstanfinancial.com  or call 941-256-9307


 

 



Lawman Benefits Consulting, Inc.  |  941.966.2228  |  LawmanConsulting.com