ACA's Top 10 Misconceptions (Nos. 6 - 10)

Last week's post revealed the first 5 of my "Top 10 List of ACA Misconceptions".  This week I finish out the Top 10 list with nos. 6 - 10.  There's a tremendous amount of information pertaining to the Affordable Care Act (ACA) that must be read, understood, translated, and communicated.  I will continue informing and communicating as much as possible on this site; and I encourage readers to reach out to me with questions, comments, and suggestions.

Here are nos. 6 - 10 of my "Top 10 List of ACA Misconceptions"...

To access the complete article, click - https://smstevensandassociates.com/ResourceLibrary/tabid/192/Default.aspx

We're looking for a Deputy Commissioner of Operations

We're currently recruiting for a Deputy Commissioner of Operations. This in an executive level exempt position that manages 35 employees in the following areas: Human resources, budget and fiscal, facilities and telecommunications, information technology and public records.

The successful candidate will be an active member of the Executive Management Team (EMT), setting the strategic direction of the agency, developing legislative priorities, ensuring fiscal responsibility and creating an inclusive, performance-based work environment.

Here's the full job announcement. Please share with anyone you think could be interested.

The job is open until Dec. 9, 2014.

ACA's Top 10 Misconceptions

Over the course of the last 3 years, I have had both the honor and pleasure of discussing the Affordable Care Act (ACA) with a number of organizations, clubs, groups, and even a local radio show.  Throughout this time, and unfortunately it persists, I have encountered a number of misconceptions and misunderstandings relative to several provisions of the law.  So I decided to assemble a list of...you guessed it...the top 10 most common ACA misconceptions that I have come across to date. Here are the first 5:

To access the complete article, click - https://smstevensandassociates.com/ResourceLibrary/tabid/192/Default.aspx

Why the commissioner decided against allowing canceled policies back into Washington

President Obama’s announcement this week that previously canceled individual health-insurance policies for 2014 could be reinstated – at the discretion of insurance commissioners – drew a lot of attention.

Washington state Insurance Commissioner Mike Kreidler acted quickly, deciding against allowing the previously discontinued policies to be put back into effect. The reasons are straightforward: The proposal does not make sense for Washington because of the overall negative effect on the stability of the health-insurance market.

To learn more about Commissioner Kreidler’s decision, please check his statement.

You can also see what is really happening with those canceled policies and how many consumers can qualify for more comprehensive coverage at less cost.

***SPECIAL EDITION - Individual Plans May Offer Non-ACA Compliant Coverage in '14!***

Earlier today (11/14/13) the President announced that he will "allow 2014 sales of previously cancelled Individual Health Plans that don't meet Affordable Care Act (ACA) guidelines".  Administration officials clarified that the exception would only be available to those who have lost their [individual health] insurance coverage. 





The announcement was lacking many of the details that are necessary in order to move forward with this exception.  Among the few details mentioned were that Insurers will...

• NOT be allowed to offer the non-ACA compliant plans to "...other Americans as it would threaten the ACA's financial viability".
• Be required to notify customers that "alternatives exist" under the ACA, including the availability of tax credits.
• Have to point out the areas where their plans fall short of government (i.e., ACA) standards.
• Have to get permission from state insurance commissioners.

The exception, which has no direct impact on group health plans, is a de facto extension of the grandfather clause that was already a provision of the ACA.  Insurers have the choice of whether or not to continue offering the (formerly) non-compliant plans in 2014.  The other challenge would be reaching out to the millions of insureds (like me) that have already received notice of the cancellation of their current plan, and the automatic conversion to an ACA compliant plan.  With only 6 weeks left until the new year, and the various considerations involved in taking advantage of this relaxation of the rules (i.e., cost, technology, impact on rates, etc.), there might not be very many takers on the insurance company side.

I just received an email from the largest issuer of Individual Health Insurance coverage in the state of Nebraska - Blue Cross Blue Shield of Nebraska - which read in part - "...leaders are analyzing the impact of the President's proposal, and will give further information soon about how we will proceed".

Once again I want to stress that although this announcement does not directly affect or pertain to the Group Health Insurance market; to the extent that a significant number of individual health insurers decide to "un-do and/or re-do" policies could impact open enrollment.  In other words, if fewer individuals are forced to accept higher premiums and/or reduced coverage (like me) associated with some of the 2014 renewal offers, there will be fewer "group insurance eligible" individuals wanting to enroll in employer coverage during open enrollment.

Stay tuned!

 

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FSA Rollover…An Early Christmas Present From the IRS!

When people hear or see the acronym – IRS – they generally do not associate it with gift giving.  But that is precisely what the IRS delivered on October 31, 2013 in the form of Notice 2013–71, which allows for a partial carryover of unused FSA funds (click - http://www.irs.gov/pub/irs-drop/n-13-71.pdf). The often cited “use it or lose it” rule deters many otherwise eligible Flexible Spending Account (FSA) enrollees from setting aside funds on a pre-tax basis for future use.  However, with the issuance of Notice 2013-71, the IRS is allowing the option of a rollover of up to $500 at the end of the FSA plan year…even for 2013 plan years!  This is great news for FSA plan participants and employers alike.

Back in 2005, the IRS issued a similar relaxation of the code, which allowed for a 2.5 month grace period in which plan participants could continue to incur FSA reimbursable expenses (see IRS Notice 2005-42; click - http://www.irs.gov/pub/irs-drop/n-05-42.pdf ).

Since plan participants still faced the prospect of forfeiting unused balances at the conclusion of the grace period, this provision seemingly had little impact on increasing FSA plan participation.  The allowance of up to a $500 rollover, if effectively communicated, should have the effect of increasing FSA plan participation, thus saving eligible individuals, and their employers, valuable tax dollars. (Note: according to a recent CNN Money article, approximately 14 million families participate in FSAs.)

Here is a summary of the IRS notice, and some things for employers and plan participants alike to keep in mind:

To access the complete article, click - https://smstevensandassociates.com/ResourceLibrary/tabid/192/Default.aspx

Is Your Company CDH Ready?

Over the course of the last several years, Consumer Driven Health (CDH) has grown in popularity, and effectiveness, as a way for employers to reduce their health insurance and health care related costs.  CDH's evolution has not come easy or without its detractors.  However, both the empirical and anecdotal data collected over the last ten years point to CDH as a proven and effective method of true - "health care reform"!  According to the Kaiser Family Foundation (KFF), the number of employers offering CDH plans has jumped from 4% in 2005 to 31% in 2012.  KFF also released data indicating the average cost of family coverage is $1,500 less per employee on a CDH plan than a traditional PPO plan.  And benefits consulting firm Aon Hewitt's health care survey revealed that CDH plans had a 2 percent lower cost trend in 2012, versus all other health plan types (i.e., PPO, HMO, EPO).

Today's post provides a list of "CDH Readiness Considerations" for employers who are contemplating implementing some form/level of CDH into their organization.  Employers that presently offer a CDH plan(s) might also benefit from a review of these considerations...

To access the complete article, click - https://smstevensandassociates.com/ResourceLibrary/tabid/192/Default.aspx

Canceled health plans? What's really happening.

There's been a lot of news lately about insurers cancelling some health plans and changing others. Consumers have been getting the word through  'discontinuation' notices.

So what's really going on? This is happening in the individual market - where people who don't get coverage from their employer - buy their own health plans.   Most likely, the existing plans being canceled or changed, failed to meet new federal standards for benefits.  The reality about most of these previous plans is that they provided extremely limited benefits - no maternity care or coverage for prescription drugs, for example.

Beginning Jan. 1, 2014, plans must provide everyone basic essential benefits, such as maternity care, prescription drug coverage and mental health services.  And no longer can insurance companies ask you about previous illnesses you may have had. They must accept everyone.

Premiums will change for some plans. But if you received a notice from your insurance company, it does not mean you have to stay with whatever they offer. You can shop around for plans, either in the new Exchange - www.wahealthplanfinder.org or from insurers selling outside of the Exchange.

Here's a map of all individual plans available by county.

For more details about insurers cancelling policies, check out this piece by Kaiser Health News.

"Where do I get a detailed review of my auto and homeowners premiums?"

We recommend that you get a policy-specific premium breakdown directly from your agent (or insurer, if you buy direct). Specifically, you might want to ask for a rate worksheet comparison between your last year's premium and your current annual premium. That's a good way to get an apples-to-apples comparison of what your rates are doing.

While you're at it, it's a good idea to make sure that the type and level of coverage is what you want. If you're driving a new car, you'll likely want comprehensive and collision coverage as well as liability (the latter is required by law.) If you're driving a $1,000 car, on the other hand, maybe liability coverage is enough. These are good things to discuss with your agent or company, particularly if you have changes in your life (new car, change in household members, moving, etc.)

Our home was damaged by a windstorm. We're worried. What's next?

We get this question a lot. It's very important that you try to safeguard your home from further damage. Depending on the type of damage, you may be able to safely do this yourself or you may need to hire someone - especially if you need to get a tarp on the roof if you're dealing with utilities or damaged and unstable structures.

 

You'll also want to contact your insurance agent or your insurer directly to let them know what’s going on, and to get any necessary instructions from them. They can also tell you how your coverage will apply. Most importantly, stay safe!

 

Here's some more insurance tips to help you get ready for stormy weather.