New COBRA Regulations Begin March 1, 2009
The new stimulus package signed into law February 17, 2009 by the President creates new COBRA provisions for terminated employees. The details of how the plan is going to work are being finalized by the Department of Health and Human Services and the Treasury.
To summarize what is known - COBRA eligible participants will have the opportunity to sign up for COBRA at a subsidized rate. Employers will recover their portion by deducting premium costs from payroll tax deposits. The subsidy period would be 9 months from the effective date of coverage, or for existing participants, beginning March 1, 2009.
As your COBRA administrator, Cor-Ben Consultants will provide you with all of the necessary details, communicate as required to all affected COBRA recipients, and streamline this process for you as much as possible.
We will keep you posted as we receive additional information. If you would like to read the portion of the bill that pertains to COBRA, please go to http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2009_record&docid=cr12fe09-147.pdf. The portion pertaining to COBRA starts on page 39 of the document.
At this point in time, no action is necessary on your part. We will keep you informed as we receive additional information.
Note that COBRA is only available to groups with 20 or more employees. The reduced premium from the stimulus only applies to former employees who were involuntarily terminated. Groups with fewer than 20 employees can offer state continuation benefits to involuntarily terminated employees. They will be eligible for the stimulus reduction in premiums for the 6 month time period covered under Ohio's State Continuation provision.
The Department of Labor is to issue the sample notice by March 17th. The notice will contain all of the required information pursuant to the ARRA (American Recovery and Reinvestment Act) provisions. As soon as this notice becomes available, we will notify all eligible COBRA participants.
Additionally, if an involuntarily terminated employee was terminated on or after September 1, 2008 and did not originally elect coverage due to the cost, they are eligible to elect COBRA during the 60 day special election period.
The IRS has recently published the new 941 Payroll Tax reporting form. You can locate the form and instructions at the IRS' website: http://www.irs.gov/newsroom/article/0,,id=204505,00.html.
Please call us with any questions. We appreciate your business.
Managing Your Company's Healthcare Costs
In 2007, over half of insured Americans were taking prescription drugs to treat at least one chronic health problem, according to Medco, a leading pharmacy benefit manager. The good news is that people are receiving treatment which can help prevent problems down the road, however with a projected drug utilization increase of 2-3% this year and the same amount again in 2009 and 2010 pharmacy benefit insurance costs are expected to increase by a minimum of 4-6% during this year and continuing.
Treatment for high cholesterol and high blood pressure were the most commonly used medications for 15-20% of Americans. The top driver of increasing prescription drug costs however, is for treatment of diabetes. There is no doubt that rising rates of obesity among Americans are having a major impact on our health, and on rising insurance premium costs.
There are no easy answers in today's insurance market. Business owners need a broker that understands their company's demographics, budgetary requirements, and health history. Armed with this information, Cor-Ben Consultants then searches for a plan to fit your company's needs.
We offer products from the names you recognize-United Healthcare, Anthem Blue Cross, Medical Mutual of Ohio and Aetna. But we don't stop there. We also represent the newest player in the central Ohio market- The Physician's Assurance Company, which was created by the previous medical director of United Healthcare, Brett Baby. This is a company owned by medical providers whose goal is to allow physicians to return to practicing medicine and provide high quality patient care with reasonable insurance regulations. Another new player in our market is Significa Insurance Group, and their plans have offered substantial savings to our clients while maintaining good benefits. We are also an appointed broker for United Healthcare's new ERC program which reduces premiums when the employees participate in a health survey and create wellness goals.
Additionally, we offer Health Savings Account plans, and employer sponsored deductible reimbursement programs, Flexible Spending Accounts, and COBRA administration. We are your virtual HR benefits department, handling the day to day insurance needs of your employees, freeing up your time to work on what's important-your business. For a free, no obligation evaluation, call Gregg Mann or Ty Cramer at 614-326-7356 or 800-589.1418.
Graduation Can Be Hazardous to Your Health Insurance
Twenty percent of adults aged 19 to 29 do not have health insurance. That's one in five! The reasons why? "I don't need it" (the "I'm invincible and indestructible" argument), "It 
costs too much" (the "I'm not sure if paying $50 dollars now to avoid paying $10,000 later is a good idea" argument), and "It will cut into my beer money" (or the "It will cut into my beer money" argument).
Kiplinger magazine contributing editor Erin Burt says if you're dropped by your parents' plan (at age 19 if you don't go to college, college graduation, or when you turn 23 for most Ohio insurance companies), you can still get good, affordable coverage on your own.
Going without coverage is downright risky, says Burt -- not only for your health but also for your finances. One out-of-pocket visit to the emergency room for an accident or illness could cost you hundreds or thousands of dollars, not including the cost of any follow-up care you may need.
So if you're graduating from college this year or have a birthday soon, your free ride may be coming to an end, so act now to avoid leaving yourself vulnerable.
Burt suggests these three options to fill that gap.
Extend your current coverage under COBRA. Ask your parents to contact their benefits office and ask about COBRA, the federal law that allows an adult child to remain on a parent's policy for up to 36 months (18 in most cases). Upside: If you have a health condition, you won't be denied coverage. Downside: it can be expensive: COBRA coverage can cost between $200 and $500 a month. Options: If you are in good health with no chronic conditions, you might be better off buying individual coverage.
Consider a student policy or short-term coverage. This used to be the go-to solution for new grads looking to bridge the gap between graduation and a job with health benefits, says Burt. But she warns they too may not be the best deal. A new study by the Government Accountability Office found that student health plan annual premiums can range from $30 to $2,400, with some plans excluding or limiting preventive care, prescription drug coverage and other basic health services.
Shop for an individual policy with a high deductible. It can cost as little as $50 to $150 per month. Such plans carry no expiration date like student and short-term policies do. And benefits can be tailored to fit your needs, so it pays to shop around. For example, by purchasing insurance with a deductible of at least $1,100 for individual coverage, you may qualify for a Health Savings Account (HSA). An HSA lets you make pretax contributions to a bank account (literally a Medical IRA) and use the money tax free to cover your deductible and other out-of-pocket medical expenses. Any unused money rolls over from year to year. Health Incentive Accounts can also make sense. This type of policy pays you if you remain healthy. I once quoted an HIA for a young man where the annual credit toward his deductible was more than the annual cost of the policy! In essence, the insurance company was paying him to take their insurance!
Parents of grads often need to be the ones to initiate this conversation, so we suggest several strategies:
Get them set up on a plan. It's a reality that twentysomethings don't always know what they don't know about life, risk, sickness, and injury.
Offer to pay the first two months premium. Your nudge will pay dividends in the long run, especially if they need to use their coverage.
Set up a time for them to talk with a professional. This will empower them to act on their own. It also reinforces the fact that they are adults. When you can say "I have an insurance agent," you are pretty much an adult.
Questions? Do you have a grad who needs coverage now? It just makes sense to give us a call. Contact Joelle Burwell at Cor-Ben Consultants, 1-800-589-1418 or via email jburwell@corbenconsultants.com.
Need Individual Insurance? Anthem insurance quotes now available online, click here...
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How to Reduce Healthcare Costs- The cost of running a business in today's world is climbing. Higher fuel prices, competitive employee salaries, electricity-everything costs more. Many of those costs cannot be reduced.
However the cost of healthcare for your employees is a variable cost. You can make smart decisions to control those costs while still offering good benefits to your employees. At CorBen Consultants, we show you ways to reduce your bottom line health care costs without sacrificing benefits.
Have you explored the new HRA (Health Reimbursement Account) options? These plans have a higher deductible with lower premiums. You then fund a portion of the deductible for reimbursement to the employee. Most of our clients are realizing between 25% to 50% reduction in overall healthcare costs with this option.
Have you explored the HSA options? A health savings account offers lower premiums and employees then contribute funds to their HSA account to pay for those medical expenses after they are incurred. Unlike a Flexible Spending Account, the HSA plan is not "use it or lose it". The HSA remains with the employee for as long as they wish. Money saved in the account that is unused at retirement age can then be withdrawn for any expenses-not just medical ones.
We are able to provide a free competitive quote to your group to show how these options could reduce your costs. If you have a budgeted amount for healthcare, give us that budget amount and we will present you with options that fit your needs.
We offer more than just insurance. Our products and services are designed to meet the needs of the small business owner. To view our services, or to compare them to what you have now, click here.
You're #1 With Us
At Cor-Ben Consultants, our clients are the #1 priority. We specialize in service that goes far beyond comparing rates and benefits of group plans. Our dedication to service continues to make us one of the top 10 health insurance agencies in central Ohio.
Have you explored the options to save money while still offering good benefits? We offer plans to help you save. Call us today!
Small and medium sized companies want to compete with big companies for good employees. Benefit plans that include medical, dental and vision are a start. Life/AD&D, short & long term disability products that protect your employees' income are important, too. Our agency works with the top carriers in the nation. Names that your employees know, recognize and have confidence in.
Cor-Ben Consultants Inc. has been servicing employee benefit plans for over 30 years from our office in Columbus, Ohio. Experienced professionals combined with caring and conscientious people - the kind of people you can depend on. We are committed to a high standard of excellence in all that we do and to establishing a firm relationship of mutual trust and service with each of our clients.