The Secrets in the Stars
If you are enrolled in a Medicare Part C (also known as Medicare Advantage) health care plan, you may want to look over its ratings… if it even has any. Each Medicare Advantage plan is supposed to be rated, but some are not, and people often don’t know what the stars are supposed to signify.
The rating system is quite complex. It is based on 33 criteria pertaining to Medicare Advantage plans (52 if the plan includes prescription drug coverage). The Healthcare Effectiveness Data and Information Set, the Consumer Assessment of Healthcare Providers and Systems, the Health Outcomes Survey, and the Centers for Medicare and Medicaid Services collect data on the following categories related to Medicare Advantage Programs in order to calculate the ratings:
• Staying healthy and preventative care
• Management of chronic conditions
• Responsiveness and care
• Health plan members complaints, appeals, and choosing to leave the plan
• Customer service
Many of the smaller providers of Medicare Advantage programs are not currently rated by government officials- a problem that should be remedied within the next few years. Problems come with the ratings of Medicare Advantage plans, as health care plans are often robust to change; therefore, it typically takes two, if not three, years for any insurance provider to be able to increase their ratings.
Currently, less than 25% of all Medicare Advantage enrollees are in plans with ratings of at least 4 stars, on a scale from 1 to 5. In some states, Medicare Advantage enrollee participation in highly rated plans is low because highly rated plans are not easily accessible. For example, in Alaska, Montana, Nebraska, Mississippi, and Vermont, no beneficiaries even have the option of obtaining a plan rated with 4 or more stars. On the other hand, there are some states in which many Medicare Advantage enrollees could have highly-rated plans, but choose not to. In Florida, 82% of Medicare Advantage beneficiaries have access to plans with 4 or more stars, but only 8% are enrolled in such plans. Click here to access the full study done by the Kaiser Family Foundation. Why is this the case? Gretchen Jacobson, a principal policy analyst for Kaiser Family Foundation, explains that "Whether or not your doctor is in [an Advantage plan] network may be more important to someone than a quality rating.” Of course, one still ought to individually choose their plan, as the rating does not give proper indication of any particular aspect of the plan. And one particular aspect may be what the consumer is looking for.
Starting in 2011, some things are going to change for Medicare Advantage providers based on the ratings they receive. In 2011, all plans with 4 or more stars will obtain bonuses of 1.5%. These bonuses will be increased to 3% in 2012 and 5% from 2013 onward.
There are additional incentives coming for Medicare Advantage insurers, including small and low-enrollment plans that can receive quality bonuses and rebates starting 2012. New plans will obtain quality bonuses of 1.5% in 2012, 2.5% in 2013, and 3.5% in 2014.
What does this mean for consumers? Although there are no guarantees, it seems likely that due to the cash incentive, Medicare Advantage providers will seek to improve the quality of their healthcare, and, by extension, their ratings. This is good for beneficiaries.
Check back soon for complete details on 2011 Medicare Enrollment and Disenrollment periods. It’s especially important this year that you choose a suitable Medicare Advantage plan during the Annual Election Period (11/15 – 12/31), since the Open Enrollment period that used to run for the first three months of each calendar year has been eliminated.
Friday, October 8, 2010
Saturday, October 2, 2010
New PPACA Provisions II
Part II of a Two-Post Series – What Just Changed on September 23rd?
In Part I of this series, we outlined how health care reform provisions that went into effect on September 23rd impact employer-based group coverage; and in this Part we’ll take a closer look at how these changes are impacting the individual health insurance marketplace.
As in the group marketplace, “Grandfathered” individual plans (health plans that existed before the law was enacted on March 23rd and remain essentially unchanged) must meet only a portion of the full requirements. However, it is worth noting that turnover is much higher in the ordinary course of individual health insurance business, so it’s expected that a relatively lower percentage of individual policies will remain grandfathered for any significant period of time.
Provisions that impact all individual plans issued or renewed after September 23rd are:
These new regulations should be good news for individuals who prefer to stay with a particular insurer because, for example, they have pre-existing conditions that would make it difficult for them to change carriers before health coverage becomes guaranteed issue in 2014. For these people continuing their plan, the insurer will have only a limited ability to increase their cost sharing or decrease plan benefits. Further, due to other provisions of PPACA such as Medical Loss Ratio minimums, their insurer will be limited in ability to raise premiums too.
A huge unintended consequence of PPACA on the individual marketplace is the recent decision by the carriers to stop selling child-only policies. The five largest publicly traded health insurers based on enrollment (Aetna, Cigna, Humana, UnitedHealth Group and WellPoint) all have announced they are no longer issuing child-only individual policies, although children still can get coverage through a family plan in the individual market.
Carriers will continue to administer individual child-only health insurance policies already on the books, but are discontinuing new sales “to protect our current members from significant price increases” according to a statement made by Aetna. Obviously, carriers are concerned about cost since there are no rules or provisions set forth in PPACA that would prevent or otherwise discourage parents from waiting until their child gets sick before they buy coverage. Rather than comply with the PPACA mandate to issue all child applications without any exclusion on pre-existing medical conditions, the insurers decided to stop offering new coverage.
A provision in the new law tries to allay claims anti-selection by allowing insurers to sign up children only during a fixed annual enrollment period; however there’s no set time of the year for all insurers to hold open enrollment like there is in the Medicare market. The reality is that parents still could wait until their child becomes ill, and then shop around for an individual health insurer that just so happens to be holding open enrollment.
The decision by insurers to stop selling child-only policies could negatively impact children from middle-class families that don’t have employer-based coverage but have incomes too high to qualify for public assistance programs such as Medicaid. Industry experts estimate that about one million children currently are covered under child-only health policies in the United States.
Check back soon for new updates. Coming next will be information about Medicare Part C ratings.
In Part I of this series, we outlined how health care reform provisions that went into effect on September 23rd impact employer-based group coverage; and in this Part we’ll take a closer look at how these changes are impacting the individual health insurance marketplace.
As in the group marketplace, “Grandfathered” individual plans (health plans that existed before the law was enacted on March 23rd and remain essentially unchanged) must meet only a portion of the full requirements. However, it is worth noting that turnover is much higher in the ordinary course of individual health insurance business, so it’s expected that a relatively lower percentage of individual policies will remain grandfathered for any significant period of time.
Provisions that impact all individual plans issued or renewed after September 23rd are:
- No lifetime dollar limits may be imposed on essential benefits.
- No rescissions are permitted, except in case of fraud or intentional misrepresentation.
- Children may stay on their parents’ policies until age 26 regardless of financial dependency, student status, marital status, employment, eligibility for other coverage, or any combination of these.
- Plans can’t impose annual limits that are less than $750,000 (annual limits will be eliminated entirely by 2014).
- Pre-existing condition exclusions may not be imposed on children under the age of 19.
- The full cost of preventive care must be provided without cost sharing.
- Plans that require or provide for a Primary Care Physician (PCP) designation must allow each member to designate any in-network PCP, or pediatrician for children, accepting new patients. Plans may no longer require an authorization or referral to an Ob-Gyn. Prior authorization for emergency services also is prohibited – and no additional cost sharing is allowed for out-of-network emergency services.
These new regulations should be good news for individuals who prefer to stay with a particular insurer because, for example, they have pre-existing conditions that would make it difficult for them to change carriers before health coverage becomes guaranteed issue in 2014. For these people continuing their plan, the insurer will have only a limited ability to increase their cost sharing or decrease plan benefits. Further, due to other provisions of PPACA such as Medical Loss Ratio minimums, their insurer will be limited in ability to raise premiums too.
A huge unintended consequence of PPACA on the individual marketplace is the recent decision by the carriers to stop selling child-only policies. The five largest publicly traded health insurers based on enrollment (Aetna, Cigna, Humana, UnitedHealth Group and WellPoint) all have announced they are no longer issuing child-only individual policies, although children still can get coverage through a family plan in the individual market.
Carriers will continue to administer individual child-only health insurance policies already on the books, but are discontinuing new sales “to protect our current members from significant price increases” according to a statement made by Aetna. Obviously, carriers are concerned about cost since there are no rules or provisions set forth in PPACA that would prevent or otherwise discourage parents from waiting until their child gets sick before they buy coverage. Rather than comply with the PPACA mandate to issue all child applications without any exclusion on pre-existing medical conditions, the insurers decided to stop offering new coverage.
A provision in the new law tries to allay claims anti-selection by allowing insurers to sign up children only during a fixed annual enrollment period; however there’s no set time of the year for all insurers to hold open enrollment like there is in the Medicare market. The reality is that parents still could wait until their child becomes ill, and then shop around for an individual health insurer that just so happens to be holding open enrollment.
The decision by insurers to stop selling child-only policies could negatively impact children from middle-class families that don’t have employer-based coverage but have incomes too high to qualify for public assistance programs such as Medicaid. Industry experts estimate that about one million children currently are covered under child-only health policies in the United States.
Check back soon for new updates. Coming next will be information about Medicare Part C ratings.
New PPACA Provisions I
Part I of a Two-Post Series – What Just Changed on September 23rd?
September 23, 2010 is exactly six months after President Barack Obama signed PPACA into law, and it marks the day that many important provisions take effect impacting both group and individual health insurance coverage. In Part I of this series, we’ll discuss the impact of these reform provisions on employer-based group coverage; and in Part II we’ll take a look at the individual health insurance marketplace, including an unintended consequence of PPACA.
First, now that we’re into October does this mean your group health insurance just changed? Not necessarily, as the new requirements actually are effective on the renewal date of your group plan. If your plan year starts January 1st, as many do, that’s when the changes start.
“Grandfathered” plans, which are health plans that existed before the law was enacted on March 23rd and remain essentially unchanged, must meet only some of the requirements. New health plans and those with significant changes in benefits or out-of-pocket costs must comply with further changes as mandated by PPACA. If you get your coverage through work, ask your employer whether or not your health plan renewal is a Grandfathered plan.
Here are provisions affecting all group plans issued or renewed after September 23rd:
Non-grandfathered health insurance plans also must comply with the following:
September 23, 2010 is exactly six months after President Barack Obama signed PPACA into law, and it marks the day that many important provisions take effect impacting both group and individual health insurance coverage. In Part I of this series, we’ll discuss the impact of these reform provisions on employer-based group coverage; and in Part II we’ll take a look at the individual health insurance marketplace, including an unintended consequence of PPACA.
First, now that we’re into October does this mean your group health insurance just changed? Not necessarily, as the new requirements actually are effective on the renewal date of your group plan. If your plan year starts January 1st, as many do, that’s when the changes start.
“Grandfathered” plans, which are health plans that existed before the law was enacted on March 23rd and remain essentially unchanged, must meet only some of the requirements. New health plans and those with significant changes in benefits or out-of-pocket costs must comply with further changes as mandated by PPACA. If you get your coverage through work, ask your employer whether or not your health plan renewal is a Grandfathered plan.
Here are provisions affecting all group plans issued or renewed after September 23rd:
- No lifetime dollar limits may be imposed on essential benefits. Those who have maxed out because of prior caps but remain eligible for coverage must be reinstated on the first day of the group health plan renewal.
- Plans can’t impose annual limits that are less than $750,000 (annual limits will be eliminated entirely by 2014).
- No rescissions are permitted, except in case of fraud or intentional misrepresentation.
- Pre-existing condition exclusions may not be imposed on children under the age of 19.
- Children may stay on their parents’ policies until age 26 if coverage isn’t available through their work, regardless of marital status.
Non-grandfathered health insurance plans also must comply with the following:
- The full cost of preventive care, as recommended by the U.S. Preventive Services Task Force, must be provided without copays, coinsurance or plan deductibles (preventive benefits under grandfathered plans may maintain cost sharing).
- Plans must not discriminate in favor of highly compensated individuals.
- Plans must report on their quality of care improvement activities.
- New requirements apply for internal and external appeal procedures against claims denials (although group plans already must provide internal appeals under ERISA and most states require that plans provide both internal and external appeal procedures).
- Plans that require or provide for a Primary Care Physician (PCP) designation must allow each member to designate any in-network PCP, or pediatrician for children, accepting new patients. Plans may no longer require an authorization or referral to an Ob-Gyn. Prior authorization for emergency services also is prohibited – and no additional cost sharing is allowed for out-of-network emergency services.
Tuesday, September 28, 2010
Health Savings Account (HSA) 2011 Contribution Limits
The IRS has announed the maximum annual HSA contributions for 2011 - and they are the same as in 2010:
Unfortunately, starting in 2011 over-the-counter medicines such as aspirin are no longer considered qualified medical expenses.
You must first be insured under an HDHP in order to open an HSA. Click here for more information on qualified high deductible health plans.
- Individuals covered under an eligible high-deductible health plan (HDHP) may contribute up to $3,050 in 2011.
- Those with family HDHP coverage may contribute up to $6,150.
- People age 55 and older who are not entitled to Medicare can make additional catch-up contributions of $1,000 to their HSAs in 2011.
Unfortunately, starting in 2011 over-the-counter medicines such as aspirin are no longer considered qualified medical expenses.
You must first be insured under an HDHP in order to open an HSA. Click here for more information on qualified high deductible health plans.
Sunday, September 19, 2010
Medicare Advantage
Is a Medicare Advantage Plan Right for You?
When you become eligible for Medicare, you have a choice in how to receive your Medicare benefits. If you’re nearing age 65, you may have noticed your mailbox filling up with offers for Medicare Supplements, Medicare Part D drug plans, and Medicare Advantage plans. You may want to know more about the advantages of enrolling into the Medicare Advantage program, or even what the difference is between Medicare Advantage and original Medicare.
In a nutshell, Medicare Advantage is the Medicare Part C program under which Medicare beneficiaries agree to receive their benefits through private insurance company plans that contract with Medicare on a year-to-year basis. The Part C program was created by the Balanced Budget Act of 1997, when private health insurance companies convinced Congress they could provide the same coverage that Medicare offers at a reduced cost. Since then, the program has expanded, and currently about 25% of all Medicare enrollees have a Medicare Advantage plan.
Medicare Advantage plans vary widely in premium (some plans have zero plan premium in addition to the Medicare Part B monthly premium, or even refund all or a portion of the Part B premium) and in the specific benefits they offer. Some may only provide the benefits of original Medicare, but most plans include prescription drug coverage, dental and vision benefits; and some plans even provide free gym memberships! A plan that includes Part D prescription drug benefits is called MA-PD, short for Medicare Advantage Prescription Drug plan.
For Medicare beneficiaries who opt against Medicare Advantage and stay on original Medicare, it’s usually a good idea to enroll into a standalone Medicare Part D drug plan since original Medicare doesn’t cover most drugs. Part D plans come with a monthly premium, as do Medicare Supplement (Medigap) policies that are designed to fill the benefit gaps in Medicare.
While Medicare Advantage plans typically feature low co-pays for doctor office visits and procedures, they may include greater out-of-pocket costs for care such as hospital visits and major diagnostic testing. Therefore, as a general rule Medicare Advantage plans are most cost-saving to healthy individuals who have the good fortune to stay out of the hospital; but in any case the plans have a maximum out-of-pocket limit that serves to cap your total expense.
You can join a Medicare Advantage plan if you meet these conditions:
• You have Medicare Parts A & B
• You live in the service area of the plan
• You don't have End-Stage Renal Disease (ESRD) (permanent kidney failure requiring dialysis or a kidney transplant)
In most cases you can join a Medicare Advantage plan only at certain times during the years. See How Medicare Advantage Plans Work for more information.
For help deciding what’s best for you, download our Medicare Decision-Making Guide!
Although Medicare Advantage plans typically are financially beneficial to the enrollee, they are not necessarily good for the government. Medicare Advantage initially was created in order to reduce government spending, yet the federal government now pays on average 10-15% more for those enrolled in Medicare Advantage, as compared to those on traditional Medicare. Clearly this hugely popular program will be coming under pressure in the near future, as the federal government tries to rein in costs on Medicare and Social Security.
Do you have an opinion about the Medicare Advantage program? Please let us know!
Until next time,
Andrew
When you become eligible for Medicare, you have a choice in how to receive your Medicare benefits. If you’re nearing age 65, you may have noticed your mailbox filling up with offers for Medicare Supplements, Medicare Part D drug plans, and Medicare Advantage plans. You may want to know more about the advantages of enrolling into the Medicare Advantage program, or even what the difference is between Medicare Advantage and original Medicare.
In a nutshell, Medicare Advantage is the Medicare Part C program under which Medicare beneficiaries agree to receive their benefits through private insurance company plans that contract with Medicare on a year-to-year basis. The Part C program was created by the Balanced Budget Act of 1997, when private health insurance companies convinced Congress they could provide the same coverage that Medicare offers at a reduced cost. Since then, the program has expanded, and currently about 25% of all Medicare enrollees have a Medicare Advantage plan.
Medicare Advantage plans vary widely in premium (some plans have zero plan premium in addition to the Medicare Part B monthly premium, or even refund all or a portion of the Part B premium) and in the specific benefits they offer. Some may only provide the benefits of original Medicare, but most plans include prescription drug coverage, dental and vision benefits; and some plans even provide free gym memberships! A plan that includes Part D prescription drug benefits is called MA-PD, short for Medicare Advantage Prescription Drug plan.
For Medicare beneficiaries who opt against Medicare Advantage and stay on original Medicare, it’s usually a good idea to enroll into a standalone Medicare Part D drug plan since original Medicare doesn’t cover most drugs. Part D plans come with a monthly premium, as do Medicare Supplement (Medigap) policies that are designed to fill the benefit gaps in Medicare.
While Medicare Advantage plans typically feature low co-pays for doctor office visits and procedures, they may include greater out-of-pocket costs for care such as hospital visits and major diagnostic testing. Therefore, as a general rule Medicare Advantage plans are most cost-saving to healthy individuals who have the good fortune to stay out of the hospital; but in any case the plans have a maximum out-of-pocket limit that serves to cap your total expense.
You can join a Medicare Advantage plan if you meet these conditions:
• You have Medicare Parts A & B
• You live in the service area of the plan
• You don't have End-Stage Renal Disease (ESRD) (permanent kidney failure requiring dialysis or a kidney transplant)
In most cases you can join a Medicare Advantage plan only at certain times during the years. See How Medicare Advantage Plans Work for more information.
For help deciding what’s best for you, download our Medicare Decision-Making Guide!
Although Medicare Advantage plans typically are financially beneficial to the enrollee, they are not necessarily good for the government. Medicare Advantage initially was created in order to reduce government spending, yet the federal government now pays on average 10-15% more for those enrolled in Medicare Advantage, as compared to those on traditional Medicare. Clearly this hugely popular program will be coming under pressure in the near future, as the federal government tries to rein in costs on Medicare and Social Security.
Do you have an opinion about the Medicare Advantage program? Please let us know!
Until next time,
Andrew
Sunday, September 5, 2010
Grandfathered Health Care Plans
Grandfathered Versus Non-Grandfathered
Certain terms are being constantly thrown around, including “grandfathered” and “non-grandfathered” when discussing health care plans. What does each mean? What are the main differences between the two?
A “grandfathered” health care plan is one that has not had to change to fit all the requirements set by the Patient Protection and Affordable Care Act (PPACA), having existed in its current form since before March 23, 2010. Grandfathered plans must always have at least one person being covered at all times past March 23, 2010, although the person need not be the same constantly. On the other hand, “non-grandfathered” health care plans are those that have been created, bought, or changed since March 23, 2010. Non-grandfathered health care plans are subject to all of the new provisions of the PPACA.
Although grandfathered plans are guaranteed to be almost the same as they were before the PPACA was pushed through Congress, they must follow a few aspects of the PPACA. These requirements may vary slightly based on whether or not the grandfathered plan is for an individual or a group.
The following are parts of the PPACA that must be followed by grandfathered health care plans:
• There must be a lack of prohibition of coverage based on health discrimination starting for dependents under19 on September 23, 2010, and for everyone on January 1, 2014. (This is applicable to only grandfathered group health care plans.)
• There is a prohibition on excessive waiting periods.
• There can be no lifetime limits, and there may only be applicable annual limits on grandfathered individual plans.
• Rescissions are prohibited, except in the case of premeditated fraud, starting September 23, 2010.
• Those under the age of 26 must be available for coverage by their parents’ grandfathered plans unless their current employer offers health insurance coverage.
• Grandfathered health care plans must cover preventive care services without extra cost to the consumer.
Find out what can make a previously-grandfathered health care plan change into a non-grandfathered plan.
Check back soon to learn about coming changes to the Medicare program.
Certain terms are being constantly thrown around, including “grandfathered” and “non-grandfathered” when discussing health care plans. What does each mean? What are the main differences between the two?
A “grandfathered” health care plan is one that has not had to change to fit all the requirements set by the Patient Protection and Affordable Care Act (PPACA), having existed in its current form since before March 23, 2010. Grandfathered plans must always have at least one person being covered at all times past March 23, 2010, although the person need not be the same constantly. On the other hand, “non-grandfathered” health care plans are those that have been created, bought, or changed since March 23, 2010. Non-grandfathered health care plans are subject to all of the new provisions of the PPACA.
Although grandfathered plans are guaranteed to be almost the same as they were before the PPACA was pushed through Congress, they must follow a few aspects of the PPACA. These requirements may vary slightly based on whether or not the grandfathered plan is for an individual or a group.
The following are parts of the PPACA that must be followed by grandfathered health care plans:
• There must be a lack of prohibition of coverage based on health discrimination starting for dependents under19 on September 23, 2010, and for everyone on January 1, 2014. (This is applicable to only grandfathered group health care plans.)
• There is a prohibition on excessive waiting periods.
• There can be no lifetime limits, and there may only be applicable annual limits on grandfathered individual plans.
• Rescissions are prohibited, except in the case of premeditated fraud, starting September 23, 2010.
• Those under the age of 26 must be available for coverage by their parents’ grandfathered plans unless their current employer offers health insurance coverage.
• Grandfathered health care plans must cover preventive care services without extra cost to the consumer.
Find out what can make a previously-grandfathered health care plan change into a non-grandfathered plan.
Check back soon to learn about coming changes to the Medicare program.
Saturday, September 4, 2010
Preventive Care
Preventive Care Benefits: Perpetually Changing
Who can keep track of all the changes being made to your health plan’s preventive care benefits? If you follow benefits within the Medicare program, you likely know that in 2008 the Medicare Improvements for Patients and Providers Act (MIPPA) authorized a free preventive care exam to be provided within 12 months of signing up for Medicare Part B, rather than the previous six months. MIPPA also added new elements to this preventive exam- including body mass index- and waived the deductible for it, starting in January 2009.
Now, in 2010, we have the Patient Protection and Affordable Care Act (PPACA) changing Medicare’s preventive care services yet again. First, cost sharing is eliminated for some preventive care services, including colorectal cancer screening, as an example. Second, instead of only receiving a deductible-waived preventive exam upon first obtaining Medicare Part B, all Medicare recipients can get a comprehensive wellness assessment every year with no co-pays or deductibles. (From the Author -- although Medicare is now covering more costs for preventive care than ever before, we advise caution when ordering medical tests and services as they may be subjected to Medicare Part B deductible and co-insurance requirements.)
Furthermore, the PPACA greatly increases preventive care services that must be covered by “non-grandfathered” health insurance plans as of September 23, 2010. Not only will health insurance companies have to provide for preventive care, but they will have to cover all costs associated with it. Preventive care benefits that must be covered include, but are not limited to immunizations, mammography tests, and tests for obesity. Also, preventive care and oral health are being promoted in public school systems as part of the PPACA. Use at your own risk!
Look for a post coming soon explaining “grandfathered” vs. “non-grandfathered” health insurance plans! Since the rules imposed by PPACA impact these plan types differently, you’ll want to know which type of plan covers you, and how your plan will be impacted by PPACA.
Who can keep track of all the changes being made to your health plan’s preventive care benefits? If you follow benefits within the Medicare program, you likely know that in 2008 the Medicare Improvements for Patients and Providers Act (MIPPA) authorized a free preventive care exam to be provided within 12 months of signing up for Medicare Part B, rather than the previous six months. MIPPA also added new elements to this preventive exam- including body mass index- and waived the deductible for it, starting in January 2009.
Now, in 2010, we have the Patient Protection and Affordable Care Act (PPACA) changing Medicare’s preventive care services yet again. First, cost sharing is eliminated for some preventive care services, including colorectal cancer screening, as an example. Second, instead of only receiving a deductible-waived preventive exam upon first obtaining Medicare Part B, all Medicare recipients can get a comprehensive wellness assessment every year with no co-pays or deductibles. (From the Author -- although Medicare is now covering more costs for preventive care than ever before, we advise caution when ordering medical tests and services as they may be subjected to Medicare Part B deductible and co-insurance requirements.)
Furthermore, the PPACA greatly increases preventive care services that must be covered by “non-grandfathered” health insurance plans as of September 23, 2010. Not only will health insurance companies have to provide for preventive care, but they will have to cover all costs associated with it. Preventive care benefits that must be covered include, but are not limited to immunizations, mammography tests, and tests for obesity. Also, preventive care and oral health are being promoted in public school systems as part of the PPACA. Use at your own risk!
Look for a post coming soon explaining “grandfathered” vs. “non-grandfathered” health insurance plans! Since the rules imposed by PPACA impact these plan types differently, you’ll want to know which type of plan covers you, and how your plan will be impacted by PPACA.
Saturday, August 28, 2010
Increasing Taxes are the New Fad
It No Longer Pays to Have Money
Who would ever think there would come a time when people don’t want to have a lot of money? Well, that time is coming soon. The new Patient Protection and Affordable Care Act (PPACA), passed earlier this year, notably increases access to health care coverage for many Americans. High-risk state insurance pools are being rolled-out; children under 19 – and even all adults come 2014 – cannot be denied health care coverage due to pre-existing conditions; and tax credits will be given to small businesses offering health insurance to their employees.
On top of that, the large post-World War II generation called the baby boomers is just entering retirement. This means that the largest generation of Americans in history is starting to collect social security and enroll into the Medicare program. Where is the money going to come from for all this?
If you guessed taxes, you’re right! Taxes are being raised, particularly for “rich” people. This does not mean that Bill Gates and his elite friends are going to give the government billions extra; rather, in a society where the average income of a four-person family is only $59,894, the “rich” are considered to be individuals with income over $200,000 or couples with joint income over $250,000. For these rich people, the Medicare payroll tax will increase by .9% beginning in 2013. Also, a new 3.8% tax is to be imposed on unearned income from interest, dividends, annuities, royalties and rents. And many states are increasing tax rates too.
The rates are rising for state income taxes.
Yet what does this mean for insurance costs? Medicare Part B premiums are steadily increasing, more so for those with higher incomes. There are levels through which premium payments are determined, dependent upon income. Only if the prior year individual income was less than $85,000 (or less than $170,000 if filing a joint return) will there be no income-related addition to the monthly Part B premium paid.
Under PPACA, businesses also will shoulder the burden of increasing health care costs. Small businesses received some benefit with potential tax credits, but larger businesses are coerced to provide coverage or pay a penalty. As of 2014, businesses of at least 50 full-time-equivalent employees will have to pay the government $2,000 per employee (excluding the first 30 employees) if it does not offer health insurance. If the business DOES offer health coverage, and employees decide to purchase insurance through an exchange and receive a subsidy, the business must pay the government $3,000 per employee. Many businesses may elect to pay these fines in lieu of offering group health plans, which generally are pricey and will only become more expensive as a consequence of all of the mandates in PPACA.
What advice could we possibly provide to you? It’s very simple, be more careful than ever with your expenditures. Since there’s not much any of us can do individually to hold the line on insurance premiums or taxes, budget wisely as the going is getting tough. And if you still want to have a lot of money in the future that’s OK, but be prepared to share.
Until next time,
AH Insurance Services
Who would ever think there would come a time when people don’t want to have a lot of money? Well, that time is coming soon. The new Patient Protection and Affordable Care Act (PPACA), passed earlier this year, notably increases access to health care coverage for many Americans. High-risk state insurance pools are being rolled-out; children under 19 – and even all adults come 2014 – cannot be denied health care coverage due to pre-existing conditions; and tax credits will be given to small businesses offering health insurance to their employees.
On top of that, the large post-World War II generation called the baby boomers is just entering retirement. This means that the largest generation of Americans in history is starting to collect social security and enroll into the Medicare program. Where is the money going to come from for all this?
If you guessed taxes, you’re right! Taxes are being raised, particularly for “rich” people. This does not mean that Bill Gates and his elite friends are going to give the government billions extra; rather, in a society where the average income of a four-person family is only $59,894, the “rich” are considered to be individuals with income over $200,000 or couples with joint income over $250,000. For these rich people, the Medicare payroll tax will increase by .9% beginning in 2013. Also, a new 3.8% tax is to be imposed on unearned income from interest, dividends, annuities, royalties and rents. And many states are increasing tax rates too.
The rates are rising for state income taxes.
Yet what does this mean for insurance costs? Medicare Part B premiums are steadily increasing, more so for those with higher incomes. There are levels through which premium payments are determined, dependent upon income. Only if the prior year individual income was less than $85,000 (or less than $170,000 if filing a joint return) will there be no income-related addition to the monthly Part B premium paid.
Under PPACA, businesses also will shoulder the burden of increasing health care costs. Small businesses received some benefit with potential tax credits, but larger businesses are coerced to provide coverage or pay a penalty. As of 2014, businesses of at least 50 full-time-equivalent employees will have to pay the government $2,000 per employee (excluding the first 30 employees) if it does not offer health insurance. If the business DOES offer health coverage, and employees decide to purchase insurance through an exchange and receive a subsidy, the business must pay the government $3,000 per employee. Many businesses may elect to pay these fines in lieu of offering group health plans, which generally are pricey and will only become more expensive as a consequence of all of the mandates in PPACA.
What advice could we possibly provide to you? It’s very simple, be more careful than ever with your expenditures. Since there’s not much any of us can do individually to hold the line on insurance premiums or taxes, budget wisely as the going is getting tough. And if you still want to have a lot of money in the future that’s OK, but be prepared to share.
Until next time,
AH Insurance Services
Friday, August 20, 2010
Government Internet Portal
The Government Internet Portal
The new Internet portal (created under the Patient Protection and Affordable Care Act) is up and running! What does it do? Go check it out for yourself at HealthCare.gov. You can find and compare health care options in your area to meet your needs. It shows what government and private programs will be right for you under the terms of the Patient Protection and Affordable Care Act.
It's always a wise idea to consult with a licensed health insurance agent before choosing your health care plan. Follow this link to find a health insurance expert: http://www.ahinsuranceservices.com/
Check back soon for more insurance information.
The new Internet portal (created under the Patient Protection and Affordable Care Act) is up and running! What does it do? Go check it out for yourself at HealthCare.gov. You can find and compare health care options in your area to meet your needs. It shows what government and private programs will be right for you under the terms of the Patient Protection and Affordable Care Act.
It's always a wise idea to consult with a licensed health insurance agent before choosing your health care plan. Follow this link to find a health insurance expert: http://www.ahinsuranceservices.com/
Check back soon for more insurance information.
Thursday, August 12, 2010
High-Risk Insurance Pools: What are they?
Want to Know What High-Risk Insurance Pools Are?
One of the many parts of the new Patient Protection and Affordable Care Act (PPACA) is the creation of high-risk insurance pools, starting on July 1, 2010. Well, you probably have a few questions on high-risk insurance pools. What are they? Do they benefit you? Will these insurance pools cause an increase in your tax rate?
High-risk insurance pools are pools of money allocated to help provide health insurance for people with pre-existing medical conditions. The majority of individuals in the United States of America are covered with group health insurance plans provided by employers, and many more are capable of buying individual health insurance plans from companies such as Aetna and Humana. Even low-income families can obtain health insurance from state programs. However, someone with a pre-existing condition like, for an example, diabetes can be denied health insurance from private companies.
According to the PPACA, nobody can be denied health insurance based on pre-existing conditions starting January 1, 2014. Yet what can one do for the three and a half years until then? This is where high-risk pools come into the picture. The federal government has allocated five billion dollars to provide health insurance for those with pre-existing conditions that are unable to get coverage from private companies until January 1, 2014. The dispersal of these funds is not uniform among all fifty states; it is based on estimates of how many people will use it in each state.
Distribution of funds among the fifty states
One can only apply to receive benefits from the high-risk insurance pool if one has been denied coverage and has not had health insurance for at least six months. Nonetheless, it is not a free governmental program; insurance premiums must be paid in order to obtain coverage. In general, the premiums will be on par with those of plans offered by private corporations within the state that provide similar coverage. The good thing about this for most people in the United States is that it ensures that the high-risk insurance pool is self-sustaining: the program will not be an extra burden on taxpayers.
Yet will five billion dollars be enough? Estimates of the number of individuals that will take advantage of the high-risk insurance pool range from 200,000 to 700,000 Americans. It is apparent that some states are worried about adequate funding throughout the duration of the program. Only 28 states (and the District of Columbia) have set up their own high-risk insurance pools by federal guidelines; the other 22 have rescinded their responsibility of administering their high-risk pools to the federal government. In the case of financial failure of the program in these states, the unpaid bills will be transferred back to the federal government rather than the individual state governments. These states may just be watching their backs, but perhaps they are not confident in the feasibility of the high-risk pools.
See if your state's high risk pool is state-run or federally-run.
Until next time!
One of the many parts of the new Patient Protection and Affordable Care Act (PPACA) is the creation of high-risk insurance pools, starting on July 1, 2010. Well, you probably have a few questions on high-risk insurance pools. What are they? Do they benefit you? Will these insurance pools cause an increase in your tax rate?
High-risk insurance pools are pools of money allocated to help provide health insurance for people with pre-existing medical conditions. The majority of individuals in the United States of America are covered with group health insurance plans provided by employers, and many more are capable of buying individual health insurance plans from companies such as Aetna and Humana. Even low-income families can obtain health insurance from state programs. However, someone with a pre-existing condition like, for an example, diabetes can be denied health insurance from private companies.
According to the PPACA, nobody can be denied health insurance based on pre-existing conditions starting January 1, 2014. Yet what can one do for the three and a half years until then? This is where high-risk pools come into the picture. The federal government has allocated five billion dollars to provide health insurance for those with pre-existing conditions that are unable to get coverage from private companies until January 1, 2014. The dispersal of these funds is not uniform among all fifty states; it is based on estimates of how many people will use it in each state.
Distribution of funds among the fifty states
One can only apply to receive benefits from the high-risk insurance pool if one has been denied coverage and has not had health insurance for at least six months. Nonetheless, it is not a free governmental program; insurance premiums must be paid in order to obtain coverage. In general, the premiums will be on par with those of plans offered by private corporations within the state that provide similar coverage. The good thing about this for most people in the United States is that it ensures that the high-risk insurance pool is self-sustaining: the program will not be an extra burden on taxpayers.
Yet will five billion dollars be enough? Estimates of the number of individuals that will take advantage of the high-risk insurance pool range from 200,000 to 700,000 Americans. It is apparent that some states are worried about adequate funding throughout the duration of the program. Only 28 states (and the District of Columbia) have set up their own high-risk insurance pools by federal guidelines; the other 22 have rescinded their responsibility of administering their high-risk pools to the federal government. In the case of financial failure of the program in these states, the unpaid bills will be transferred back to the federal government rather than the individual state governments. These states may just be watching their backs, but perhaps they are not confident in the feasibility of the high-risk pools.
See if your state's high risk pool is state-run or federally-run.
Until next time!
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