|
Issue: # 106
| November 25 , 2013 |
 | | Unreal video |
|
|
Dear :
We try to keep in touch with our clients and prospects through this newsletter. Recently we started an Advantage Benefits Blog , where we try to post daily what's happening in the marketplace. Consider bookmarking this or subscribing to the blog.
There is much confusion right now with Affordable Care Act kicking in January 1st. For example, Tufts sent a letter to clients with a long list of plans being cancelled, and groups were concerned about their coverage. For the most part, our clients have standard deductible plans ranging from $500 to $2,000. These plans are not being cancelled.
If any of our clients have a plan that is not continuing next year, we will be able to find them a similar plan. Some of the carriers are using this opportunity to cancel plans that are not popular and do not have many subscribers as well. In any case, do not be alarmed, there are plenty of plans available. If you have an employee that is not on your plan as they are covered by a spouse, and their plan is cancelled, don't worry, that employee and spouse can both enroll in your group plan as a qualifying event.
Don't forget about the Massachusetts Wellness Credit - employers can receive the credit up to 25% of expenses to a maximum of $10,000. There are a host of expenses you may be paying for now that may qualify - call us!
If you would like to see some pricing options, send us an email to Bill or Vanessa today.
Sincerely,
|
|
Insurance Partnership
Ends December 31st
One of the better programs the Commonwealth had to address the high cost of health insurance was The Insurance Partnership Program which will now terminate December 31st. This was not an insurance plan but it targeted employers with less then 50 employees. An employer could shop around and buy whatever health plan and design they wanted.
The Insurance Partnership would give subsidies to income eligible employees to help them afford the insurance. Not only would employees get help, but the employer received a subsidy to cover all the paperwork, which was at times cumbersome. It was a great idea but has ended because "new opportunities from national health care that start January 1st".
Employers, who are already participating, will stop getting checks. They are being advised to check out the Small Business Health Care Tax Credit. Note more information below.
For those employees who will lose their subsidy, the "next step" is a little unclear. Employees are being directed to Mass Health and the Mass Health Connector. Whether an individual continues to receive assistance will be solely based on income. Those employees may also check out the plans available at the Connector - but please note, they will lose the employer contribution if they opt for one of those programs.
WE will keep you posted as more information surfaces....
|
|
|
Small Business Health Care Credit
Revised January 1st, 2014
|
There's a three-part test to see if a small business qualifies for the health care tax credit: - The business must have less than 25 full-time equivalent employees
- The average wage of employees must be less than $50,000 per full-time equivalent employee
- Health insurance premiums must be paid through a "qualifying arrangement"
No Tax Credit for Owners of the Business Small businesses cannot take a tax credit for insurance premiums paid for owners. This means owners of corporations, partners in a partnership, and sole proprietors. For small businesses structured as a C-corporation, no tax credit is available for employees who own 5% or more of the corporation. For S-corporations, no tax credit is available for employees who own 2% or more of the S-corporation. Source: Internal Revenue Code, section 45R, paragraph (e)(1).
Partners, members of LLC treated as a partnership, owners of a single-member LLC, S-corporation shareholders owning 2% or more of an S-corporation, and sole proprietors are all treated as self-employed persons for health insurance purposes, and are eligible for the self-employed health insurance deduction instead of the tax credit. Employer Must Pay at Least Half of the Insurance Premiums So far the IRS is applying the term "qualifying arrangement" to any scenario in which the small business pays at least half of the health insurance premiums for its employees. In a set of frequently asked questions, the IRS clarified that this 50% test applies only to employee-only health coverage. So, if an employer pays half of the employee coverage, and the employee pays for his spouse and children, that would still qualify for the tax credit.
You need to talk to your CPA about this if you think you qualify.
|
|
Pediatric Dental
Health insurance renewal in 2014
|
Under ACA, effective January 1st, 2014, insurance companies need to include Pediatric Dental coverage when the health insurance renews. Every company is handling this different and we will try to get descriptions from each company going forward.
The benefits are quite rich, and include Type I, II, III and Medically Necessary Orthodontia.
Bottom line, make sure you know what your new Pediatric Dental benefits will be when your health insurance renews in 2014.
Paying more claims for these benefits will only put more upward pressure on health insurance premiums. Legislators love to force insurance companies to cover new procedures, but in the end it is not the insurance companies that pay for these added claims. Everything comes back to us, as employers and employees in rising health insurance premiums. |
|
|
