The problem I see in this stimulus bill is the COBRA/state continuation element of the package. Far from stimulating the economy, it will create a tremendous burden for already strapped small business by requiring a 65% participation in COBRA premium, retroactive to last September 1st. (Aren't ex post facto laws unconstitutional? U. S. Constitution, Article 1, Section 9. I know it is in regard to criminal law. I just don't see how any punitive ex post facto law is moral.)
Granted, an employer may offset the premium with a credit against his payroll taxes, but every company I know is looking for income and sales, not costs and credits. In addition, I believe that insurance premiums are paid on a monthly basis, in advance, whereas a payroll tax credit would be quarterly, after the fact. Nice of Congress to create debt for businesses. Of course, they are the experts.
Oh, has anyone examined the effect this payroll tax short fall will create on the Ponzi scheme we call Social Security? Prior to the stimulus bill, we were robbing Peter to pay Paul. Now we're robbing both of them.
This is bad legislation, poorly conceived, poorly written, and soon to be poorly administered.
Showing posts with label health insurance. Show all posts
Showing posts with label health insurance. Show all posts
Tuesday, February 24, 2009
Monday, February 9, 2009
Why Is Health Care So Expensive?
Watch this link for an idea on why healthcare is so expensive and what we can do to control it.
http://www.youtube.com/watch?v=JYC2DJWU41s
http://www.youtube.com/watch?v=JYC2DJWU41s
Saturday, February 7, 2009
New Creation Story
This link should take you to a tongue in cheek take on creation and health insurance.
Enjoy.
http://docs.google.com/Presentation?id=d3z83ct_13d7jj5cg4
Enjoy.
http://docs.google.com/Presentation?id=d3z83ct_13d7jj5cg4
Monday, February 2, 2009
Rising Cost of Insurance
http://docs.google.com/Presentation?id=dfk9fpgn_5gv7j35dn
This link will take you to a Google document presentation by Partners Insurance out of Arkansas. Please note the focus is on wellness and claims errors.
I believe that a shift to the consumer driven/one deductible plans will encourage the insured to monitor their costs and their bills. Once we take the waste out of the health delivery system we can start to control costs and, therefore, premium.
This link will take you to a Google document presentation by Partners Insurance out of Arkansas. Please note the focus is on wellness and claims errors.
I believe that a shift to the consumer driven/one deductible plans will encourage the insured to monitor their costs and their bills. Once we take the waste out of the health delivery system we can start to control costs and, therefore, premium.
Monday, January 19, 2009
Effective Benefits Communication
Effective Benefits Communications Saves Your Company Money, Time and Energy
by J. Keith Johnson
Agency Development Manager
Colonial Life
As health care costs continue to rise, it’s more important than ever that your employees understand and appreciate the benefits you provide for them. Along with increasing health insurance costs comes increasing competition for quality employees, and you want to attract and retain the best. In fact, the average turnover rate of top-performing employees is 17 percent at companies that offer rich benefits programs but poorly communicate them to workers, as opposed to 12 percent at businesses with less comprehensive programs but better communication strategies.[1]
A sound benefits package is a plus but only if employees know and understand what you make available to them. A quality voluntary benefits partner can help by providing professional, consistent communications throughout the entire enrollment process. As a result, employees will not only understand their benefits but also appreciate them.
Effective benefits communications has two integral phases: before the enrollment and during the enrollment. For each phase, your voluntary benefits partner should be able to deliver a wide range of services and capabilities.
Pre-Enrollment Communications
Custom Communications. A quality voluntary benefits provider can provide enrollment communications such as letters, fliers, PowerPoint presentations, brochures, e-mails, posters, tent cards — whatever works best to help employees learn the about the upcoming enrollment and the key details of the benefits offerings.
Group Meetings. To help provide background on the overall benefits program, highlight any major changes in the program and introduce any new offerings, the enrollment process should begin with a group employee meeting that covers key highlights of the benefits program.
Enrollment Communications Through One-on-One Sessions With a Benefits Professional
Advances in enrollment technology have made enrollments simpler and easier to administer; however, nothing can replace the value of having a trained benefits professional meet with employees individually to review and enroll their benefits. Two-way communications between a benefit professional and an employee is critical for effective benefits communications.
Using the latest enrollment technology, a benefits professional can help employees consider their personal benefits situation and see the impact of their benefits selections on their paycheck. Communication services can include:
· Helping employees verify and update basic employee data.
· Highlighting each employee’s existing benefits, pointing out what the employee contributes and what the employer contributes.
· Reviewing the employee’s benefits selections and how each affects the paycheck so the employee can see exactly what the deductions will be and, if pretaxing, what the savings can be.
· Showing the employee his or her entire benefits package, including paid time off, uniform costs or any specific benefits you want to highlight. Again, the employee can see his or her own contributions to the benefits package, as well as what you contribute.
· Providing a detailed listing of the employee’s selections and contributions as one last verification of plan information and premiums.
So what’s the advantage of effective benefits communication? You’ll save costs, time and energy — plus, you’ll gain greater employee satisfaction through personal, quality benefits communication.
About the Author
J. Keith Johnson is an Agency Development Manager for Colonial Life. Keith is responsible for marketing Colonial Life’s products, programs and services in the Kansas/Missouri area.
Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through their workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49 states, the District of Columbia and Puerto Rico. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group.
For more information about Colonial Life’s products and services or opportunities with the company, call Keith at 913-205-6396 or visit www.coloniallife.com.
[1] 2005 Watson Wyatt Worldwide WorkUSA® study on effective employee-driven financial results
by J. Keith Johnson
Agency Development Manager
Colonial Life
As health care costs continue to rise, it’s more important than ever that your employees understand and appreciate the benefits you provide for them. Along with increasing health insurance costs comes increasing competition for quality employees, and you want to attract and retain the best. In fact, the average turnover rate of top-performing employees is 17 percent at companies that offer rich benefits programs but poorly communicate them to workers, as opposed to 12 percent at businesses with less comprehensive programs but better communication strategies.[1]
A sound benefits package is a plus but only if employees know and understand what you make available to them. A quality voluntary benefits partner can help by providing professional, consistent communications throughout the entire enrollment process. As a result, employees will not only understand their benefits but also appreciate them.
Effective benefits communications has two integral phases: before the enrollment and during the enrollment. For each phase, your voluntary benefits partner should be able to deliver a wide range of services and capabilities.
Pre-Enrollment Communications
Custom Communications. A quality voluntary benefits provider can provide enrollment communications such as letters, fliers, PowerPoint presentations, brochures, e-mails, posters, tent cards — whatever works best to help employees learn the about the upcoming enrollment and the key details of the benefits offerings.
Group Meetings. To help provide background on the overall benefits program, highlight any major changes in the program and introduce any new offerings, the enrollment process should begin with a group employee meeting that covers key highlights of the benefits program.
Enrollment Communications Through One-on-One Sessions With a Benefits Professional
Advances in enrollment technology have made enrollments simpler and easier to administer; however, nothing can replace the value of having a trained benefits professional meet with employees individually to review and enroll their benefits. Two-way communications between a benefit professional and an employee is critical for effective benefits communications.
Using the latest enrollment technology, a benefits professional can help employees consider their personal benefits situation and see the impact of their benefits selections on their paycheck. Communication services can include:
· Helping employees verify and update basic employee data.
· Highlighting each employee’s existing benefits, pointing out what the employee contributes and what the employer contributes.
· Reviewing the employee’s benefits selections and how each affects the paycheck so the employee can see exactly what the deductions will be and, if pretaxing, what the savings can be.
· Showing the employee his or her entire benefits package, including paid time off, uniform costs or any specific benefits you want to highlight. Again, the employee can see his or her own contributions to the benefits package, as well as what you contribute.
· Providing a detailed listing of the employee’s selections and contributions as one last verification of plan information and premiums.
So what’s the advantage of effective benefits communication? You’ll save costs, time and energy — plus, you’ll gain greater employee satisfaction through personal, quality benefits communication.
About the Author
J. Keith Johnson is an Agency Development Manager for Colonial Life. Keith is responsible for marketing Colonial Life’s products, programs and services in the Kansas/Missouri area.
Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through their workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49 states, the District of Columbia and Puerto Rico. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group.
For more information about Colonial Life’s products and services or opportunities with the company, call Keith at 913-205-6396 or visit www.coloniallife.com.
[1] 2005 Watson Wyatt Worldwide WorkUSA® study on effective employee-driven financial results
Monday, January 12, 2009
CMS requirements
Employers, health carriers, and their health insurance brokers are busy during a usual quiet time due to the government requiring dependent SSN's on all covered employee's. Extra requirements mean extra costs.
Thursday, October 30, 2008
Can you afford a $50 Co-pay?
Can You Afford A $50 Co-pay?
By J. Keith Johnson
With health insurance rates increasing at double digit rates, more and more employers are searching for a way to stem the tide. Employers are forced to ask employees to shoulder more of the cost as premiums increase. If you have health coverage, whether group or individual, ever increasing premiums, deductibles, co-pays, and co-insurance are a fact of life.
To complicate matters, most employees do not understand their health insurance. Ask them about their coverage, they’ll tell you about their co-pay. Few know their individual or family deductible and virtually none of them know their co-insurance amount or maximum out of pocket. If you increase the deductible and co-insurance, hardly anyone will notice. If you increase the co-pay, everyone screams. Therefore, employers take the path of least resistance.
I have a couple of questions. First, do you think most employees could afford a $50 co-pay for doctor’s office visits? Probably. Emergency room co-pays are $50-$100 right now and many use the emergency room rather than a doctor’s office visit for routine illnesses, so it’s possible.
Second question, would most Americans be happy if they could get the insurance company to pay that whole $50? You bet!
So if you would like the insurance company to pay your $50 co-pay, welcome to the HSA plan.
HSA qualified plans use premium savings from the health coverage to help fund medical expenses. Rather than send a large premium for a co-pay plan to an insurance company, you send less premium by purchasing a lower cost, one deductible plan and placing the premium savings up to the amount of the deductible, in a tax-free fund for use as needed.
So how does that equal a $50 co-pay? Easy. An in-network doctor’s office visit is approximately $50. Under a standard co-pay plan, you pay $20 and the insurance company pays $30. Under the one deductible HSA plan, you pay the medical expenses up to the deductible. Voila, $50 co-pay! And, the employee did not have to pay tax on the $50.
But, you may ask, how do I get the insurance company to pay that $50? Once again, it’s easy. Here is an example of a small group with some health issues that recently switched to an HSA qualified plan:
Small group (7 employees)
Last year’s co-pay plan monthly premium: $3,738.00
(This does not include this year’s increase)
This year’s HSA plan monthly premium: $2,604.00
Monthly savings: $1,134.00 (30% savings)
Monthly savings per employee: $ 162.00
Monthly per Employee Contributions:
Contribution to HSA: $ 50.00
Employer paid Dental premium: $ 88.00
(New benefit)
Employer paid voluntary benefit premium: $ 9.00
(new benefit)
Savings to employer’s bottom line: $ 15.00
(per employee)
Total annual employer savings: $1,260.00
As you can see, the employer used part of the monthly savings (insurance company’s money) to help fund the employee’s HSA. This is the money used to pay the doctor’s office visit. Nothing came out of the employee’s pocket. The money literally came out of the insurance company’s pocket.
In addition, the employer was able to improve benefits by adding dental and a medical bridge plan to help pay medical costs in the event of a hospitalization. All this and he reduced his costs. Find that in a co-pay plan!
Oh, and the best part? Whatever the employee doesn’t use each year, he gets to keep!
Congratulations. You just started a de facto retirement plan with no IRS reporting requirements.
I’ve heard all the arguments against HSA’s. They are all baloney. The only reason an HSA qualified plan will not work is if you don’t save enough premium. Period.
J. Keith Johnson is an independent insurance broker, specializing in HSA qualified plans. For more information you may reach him at:
Free State Business, LLC
15954 Mur-Len, #305
Olathe, KS 66062
(913) 787-0152
Email: jkjohnson@freestatebusiness.com
By J. Keith Johnson
With health insurance rates increasing at double digit rates, more and more employers are searching for a way to stem the tide. Employers are forced to ask employees to shoulder more of the cost as premiums increase. If you have health coverage, whether group or individual, ever increasing premiums, deductibles, co-pays, and co-insurance are a fact of life.
To complicate matters, most employees do not understand their health insurance. Ask them about their coverage, they’ll tell you about their co-pay. Few know their individual or family deductible and virtually none of them know their co-insurance amount or maximum out of pocket. If you increase the deductible and co-insurance, hardly anyone will notice. If you increase the co-pay, everyone screams. Therefore, employers take the path of least resistance.
I have a couple of questions. First, do you think most employees could afford a $50 co-pay for doctor’s office visits? Probably. Emergency room co-pays are $50-$100 right now and many use the emergency room rather than a doctor’s office visit for routine illnesses, so it’s possible.
Second question, would most Americans be happy if they could get the insurance company to pay that whole $50? You bet!
So if you would like the insurance company to pay your $50 co-pay, welcome to the HSA plan.
HSA qualified plans use premium savings from the health coverage to help fund medical expenses. Rather than send a large premium for a co-pay plan to an insurance company, you send less premium by purchasing a lower cost, one deductible plan and placing the premium savings up to the amount of the deductible, in a tax-free fund for use as needed.
So how does that equal a $50 co-pay? Easy. An in-network doctor’s office visit is approximately $50. Under a standard co-pay plan, you pay $20 and the insurance company pays $30. Under the one deductible HSA plan, you pay the medical expenses up to the deductible. Voila, $50 co-pay! And, the employee did not have to pay tax on the $50.
But, you may ask, how do I get the insurance company to pay that $50? Once again, it’s easy. Here is an example of a small group with some health issues that recently switched to an HSA qualified plan:
Small group (7 employees)
Last year’s co-pay plan monthly premium: $3,738.00
(This does not include this year’s increase)
This year’s HSA plan monthly premium: $2,604.00
Monthly savings: $1,134.00 (30% savings)
Monthly savings per employee: $ 162.00
Monthly per Employee Contributions:
Contribution to HSA: $ 50.00
Employer paid Dental premium: $ 88.00
(New benefit)
Employer paid voluntary benefit premium: $ 9.00
(new benefit)
Savings to employer’s bottom line: $ 15.00
(per employee)
Total annual employer savings: $1,260.00
As you can see, the employer used part of the monthly savings (insurance company’s money) to help fund the employee’s HSA. This is the money used to pay the doctor’s office visit. Nothing came out of the employee’s pocket. The money literally came out of the insurance company’s pocket.
In addition, the employer was able to improve benefits by adding dental and a medical bridge plan to help pay medical costs in the event of a hospitalization. All this and he reduced his costs. Find that in a co-pay plan!
Oh, and the best part? Whatever the employee doesn’t use each year, he gets to keep!
Congratulations. You just started a de facto retirement plan with no IRS reporting requirements.
I’ve heard all the arguments against HSA’s. They are all baloney. The only reason an HSA qualified plan will not work is if you don’t save enough premium. Period.
J. Keith Johnson is an independent insurance broker, specializing in HSA qualified plans. For more information you may reach him at:
Free State Business, LLC
15954 Mur-Len, #305
Olathe, KS 66062
(913) 787-0152
Email: jkjohnson@freestatebusiness.com
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