Lee Health Insurance Services https://health-insurance.com Thu, 01 Jun 2017 04:41:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 California Senate To Vote On Single Payer Bill SB 562 This Week https://health-insurance.com/california-senate-to-vote-on-single-payer-bill-sb-562-this-week/ Thu, 01 Jun 2017 04:41:48 +0000 https://health-insurance.com/?p=688 Last month I alerted you to the introduction of California Senate bill SB 562 that seeks to prohibit all private and public health insurance plans in California and replace them with a single Government-run health plan. Every person living in California will have to give up their existing insurance plan:  employer group coverage, Medicare, Medi-Cal/Medicaid, Covered California, private individual and family health plans and all existing government programs.  Instead, every person living in California will be required to sign up for the single payer plan.

The Senate Appropriations committee’s own budget analyst has estimated the cost to be $400 billion for just the first year, which is over twice the entire California State budget of $180 billion. SB 562’s sponsors have no clear plan for paying for single payer but have suggested new employer and employee taxes and income tax increases.  These taxes would be in addition to current Federal, State, local, municipal and property taxes that Californians pay.

Please see this press release from the California Association of Health Underwriters for more information.

https://bliscorp.egnyte.com/dl/6kk5OkKcvK

I was present in the Senate Chambers when this bill passed the Health Committee with a 5-2 party-line vote on April 26th. I was again present when the Appropriations Committee debated this bill on May 22nd.  But despite serious concerns raised by many of the committee members the bill passed with a 5-2 party-line vote.  It will now be voted on this week by the full Senate.

TO TAKE ACTION:

If you object to losing your right to Medicare, losing your employer plan, paying more taxes, losing your right to choose your doctor, your hospital and your insurance benefits please contact your State Senator to let him/her know. Click on the link below to find your State Senator and his/her contact information.  Then click on the name to reach their website to communicate your message: http://findyourrep.legislature.ca.gov/

For your convenience, this is a letter template suitable for sending to your district Senator if you so choose:

https://bliscorp.egnyte.com/dl/9IOEU956MF

Phil Lee

www.health-insurance.com

925-284-2000

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California Wants to Replace Your Health Plan with a Government-Run Single Payer Plan (SB 562) https://health-insurance.com/california-wants-to-replace-your-health-plan-with-a-government-run-single-payer-plan-sb-562/ Wed, 26 Apr 2017 00:10:22 +0000 https://health-insurance.com/?p=685 The California State Senate is currently working on legislation to make a Single Payer System the only source of health care and health insurance in the state of California.  The Bill is named SB 562 and it will be reviewed by the Senate Health Committee on Wednesday, April 26, at 1:30 PM in the Capitol building in Sacramento in Room 4203.

SB 562 is very bad for you, your family and the future of the State of California for many reasons:

  • Single payer insurance will provide “one size fits all” insurance to all people living in California, including undocumented residents.  One plan will be offered to all Californians for cradle-to-grave health coverage.
  • All Private Health Insurance will be prohibited.
  • The plan benefits will be determined by an un-elected board of special interest appointees of the state government who will determine which benefits will be included and how much providers will be paid.  This will result in rationing health care and force doctors and hospitals to leave the state if they are not fairly compensated for their services.
  • There will be no Medicare for Californians 65 and older. Seniors and the disabled who currently have Medicare, Advantage plans, Supplement plans and Part D plans will be dis-enrolled and enrolled on to the single payer plan.
  • There will be no employer health insurance plans. Employers will no longer be able to attract the best employees in their fields because they cannot offer them benefits that are any better than the Single Payer plan.  If you work for a company that is located in many states, your employer will not be allowed to offer any plans in CA.
  • There will be no Federal or State employee health insurance plans.
  • There will be no union health insurance plans.
  • There will be no Medi-Cal or Medicaid.
  • All people living in California, whether legally or not, will have the same health plan.
  • Doctors and hospitals will be paid for their services by the State of California, who will need to create a monstrous bureaucracy to process and pay claims.  Fraud, abuse and waste are a given.  Other government-run health plans such as Medicare, Medicaid and the Veterans Administration regularly suffer scandals in billing, payments and sub-standard care.
  • State Senator Ricardo Lara, who is sponsoring SB 562, has not revealed how the state is going to pay for “free” health care for all.  Initial estimates are that the State of California would need an increase in current income tax of $350 billion for just the first year of the Single Payer plan. This amount equates to $9,200 for each man/woman/child in addition to what he or she is already paying in income tax.  A family of four would pay $37,000 more in income tax than they are currently paying.
  • Sick people, low-income people and the undocumented from across the country would flock to California.  Healthy taxpayers would flee California.  The result would be long lines to wait for sub-standard health care with costly procedures such as heart and kidney transplants and life-saving drugs rationed or not included at all in the Single Payer plan.
  • Senator Lara and his supporters have stated that California leads the rest of the country in innovative changes and now want to oppose Federal Government deliberations on changes to the health insurance market by being the first state to adopt the Single Payer system.  However, two other states, Colorado and Vermont, recently voted against Single Payer plans in their states due to the unrealistic tax burden it would put on its residents.

CALL TO ACTION:

If you object to losing your right to Medicare, losing your employer plan, being taxed an additional $9,200 per family member, losing your right to choose your doctor, your hospital and your insurance benefits, then please contact your State Senator to let him/her know.  Click on the link below to find your State Senator and his/her contact information.  Then click on the name to reach their website to communicate your message: http://findyourrep.legislature.ca.gov/

Just say No On SB 562 to preserve your choice in health care and to keep California from declining into certain economic ruin.  Thank you for taking the time to read this email.

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Blue Shield of California Plans to Shut Down for 1 Week in September to Save on Payroll Due to Obamacare Losses https://health-insurance.com/blue-shield-of-california-plans-to-shut-down-for-1-week-in-september-to-save-on-payroll-due-to-obamacare-losses/ Sun, 14 Aug 2016 04:56:44 +0000 https://health-insurance.com/?p=671 http://www.bizjournals.com/sanfrancisco/news/2016/08/11/exclusive-losses-blue-shield-california.html

As reported by the San Francisco Business Journal, Blue Shield of California will be closed from September 3 to September 12 while its employees take the week of Labor Day off. Although Blue Shield announced there will be some customer service staff working that week we assume the phone lines will be jammed for the entire week.

It appears that Individual, Small Group and Medicare departments are affected by the shutdown.
We do not yet know whether the Blue Shield member portal, broker portal or employer portal will be accessible and will reflect current information during the shutdown.
ALL APPLICATIONS FOR BLUE SHIELD PLANS SHOULD BE SUBMITTED AS SOON AS POSSIBLE SO THEY CAN BE PROCESSED WITH AN ID NUMBER ISSUED BY FRIDAY, SEPTEMBER 2. APPLICATIONS ARE CURRENTLY TAKING 10-14 DAYS TO BE PROCESSED.
This is an unprecedented announcement by an insurance company. We will do our best to provide service to our clients during this shutdown, but if Blue Shield is closed our ability to provide customer service will also be severely impacted.

(NOTE: This information relates only to Blue Shield of California, a taxpaying non-profit insurance carrier that operates only in California. Please do not confuse this company with Anthem Blue Cross, or any other Blue Cross or Blue Shield organization in states outside of CA.)

Phil Lee

Lee Health Insurance Services (BLIS Corporation)

www.health-insurance.com

925-284-2000

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HSAs Offer More Advantages Than 401K — Wall Street Journal article https://health-insurance.com/hsas-offer-more-advantages-than-401k-wall-street-journal-article/ Sat, 12 Mar 2016 02:43:15 +0000 https://health-insurance.com/?p=664 Dear Friend,

For years, we have been suggesting to many of our clients that HSAs (Health Savings Accounts) frequently offer more benefits and flexibility than pension plans such as IRA’s.  This article from the WSJ appears to agree with that.

We are obviously not suggesting that you replace pension plans with HSAs, but in many instances, you may want to contribute to an HSA before a pension plan, or use the HSA to increase your tax-sheltered contribution limits.

I welcome your comments.

Sincerely,

Phil Lee

Philip W Lee, Lee Health Insurance Services www.health-insurance.com 800-286-7445

 

Wall Street Journal, Jan. 29, 2016:

HSAs Offer Tax Benefits Beyond 401(k)s

Health-savings accounts can be used to cover medical costs, a major expense, in retirement

Most people overlook health-savings accounts, or HSAs, as a retirement-savings vehicle. A SeniorsPLUS networks representative talks with a Bangor Savings Bank official in Maine. PHOTO: GORDON CHIBROSKI/PORTLAND PRESS HERALD/GETTY IMAGES

By

ANNE TERGESEN

January 29, 2016

27 COMMENTS

When saving for retirement, there is a place to put money that may be even better than your 401(k).

Most people overlook health-savings accounts, or HSAs, as a retirement-savings vehicle. But these accounts, which were authorized in 2003, come with more tax advantages than 401(k)s and individual retirement accounts when used to cover medical costs, which are a major expense in retirement.

“It’s the most tax-preferred account available,” says Michael Kitces, director of financial planning at Pinnacle Advisory Group Inc. in Columbia, Md. “Using one to save for retirement medical expenses is a better strategy than using retirement accounts” to cover those expenses, he says.

As with a traditional 401(k) or IRA, an HSA allows you to set aside pretax money without paying federal or state income tax on it. Most people who contribute through payroll deductions also save 7.65% in FICA tax, which finances Social Security and Medicare.

Money in HSAs grows tax-free and, if used for medical expenses, can also be withdrawn tax-free. In contrast, with a traditional 401(k) or IRA, you pay income tax on your withdrawals.

A lot of people don’t think about how to save for health care in retirement, yet it’s one of the major expenses people will have.

—Roy Ramthun

Due to this combination of tax advantages, HSAs—which are paired with the HSA-qualified health plans available on health-care exchanges and offered by 43% of employers—can even be a better deal than a 401(k) with an employer matching contribution. That is most likely to be the case if you are in a high tax bracket and the 401(k) match is less than dollar for dollar, says Greg Geisler, an associate professor of accounting at the University of Missouri-St. Louis.

For people with a high deductible health plan, “an HSA should be either the first or second place they look to save” for later life, Prof. Geisler says.

To open an HSA, you must be covered by an HSA-qualified health plan. For 2016, these plans have deductibles of at least $1,300 for individuals and $2,600 for a family. In return for exposing policyholders to potentially higher out-of-pocket costs, the plans generally charge lower premiums and offer individuals and families the chance to save up to $3,350 or $6,750 a year, respectively, in an HSA. (Those over 55 can save $1,000 more).

ENLARGE

Because employers save on premiums too with a high-deductible plan, many contribute to employees’ HSAs as an incentive to get them to enroll, says Eric Remjeske, president of Devenir Group LLC, which advises banks offering HSA investment platforms.

The biggest payoff with an HSA comes when the money set aside isn’t all used for current medical bills and instead compounds over time, before being used for qualified expenses. Those expenses can include not just medical bills but also dental and vision-care expenses, Medicare premiums and a portion of long-term-care insurance premiums.

According to Fidelity Investments, a 65-year-old couple who retire today and live another two decades will spend $245,000 on expenses including Medicare premiums and the 20% of medical costs Medicare doesn’t cover—a number that doesn’t include dental and long-term-care expenses.

“A lot of people don’t think about how to save for health care in retirement, yet it’s one of the major expenses people will have,” says Roy Ramthun, president of HSA Consulting Services in Silver Spring, Md.

Once you are enrolled in Medicare you can no longer contribute to an HSA. But you can continue to tap your HSA balance for medical expenses for yourself, your spouse and any dependents you may have.

You can also use your HSA for nonmedical expenses, but you will owe income tax on your distributions—and a 20% penalty if you are younger than 65.

Experts recommend that those who can afford to contribute to both an HSA and a 401(k) kick in the maximum to both. And what if that isn’t feasible? If you don’t incur much in the way of medical bills and can sock away a significant portion of your HSA contributions for retirement, the HSA has an edge, says Mr. Kitces. Some employees may want to allocate enough dollars to a 401(k) to get the company match and then direct the next dollars of savings to the HSA.

Some people go so far as to suggest maximizing the balance in an HSA by opting to pay current medical bills in cash, rather than tapping the HSA. Here, the advice is less clear, says Mr. Kitces.

While the HSA will “get better tax treatment in the future,” you will pay a price for preserving it since you will likely have to pay your current medical expenses in after-tax, rather than pretax, dollars, he says. “You have to decide whether it’s worthwhile to spend more today” on your medical bills “to get more dollars into a tax-free medical account that’s turbocharged for the future,” he adds.

Some people stockpile medical receipts for many years and file for reimbursement in retirement to create tax-free withdrawals to supplement their income in years in which tapping other accounts would push them into a higher tax bracket.

If your goal is to use an HSA to save for medical expenses in retirement, be sure to invest the account in a diversified portfolio of stocks and bonds. (If you don’t like your HSA’s investment options, you can transfer your money tax-free to an HSA elsewhere.) By leaving your contributions in a low-risk option like a money-market fund, you won’t get much return, which limits the tax-free growth that is one of the HSA’s biggest advantages, says Mr. Kitces.

Write to Anne Tergesen at [email protected]

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Premium Reimbursement is a Costly Violation https://health-insurance.com/premium-reimbursement-is-a-costly-violation/ Thu, 13 Aug 2015 02:35:05 +0000 https://health-insurance.com/?p=649 (This information relates only to Employer-Sponsored Group Health Plans.  It does not concern either Medicare Plans or Individual and Family Health Plans)

Re: Premium Reimbursement by Employers (outside of an ACA-Approved Group Health Plan) is a Costly Violation

Starting on July 1st, the IRS will begin assessing a penalty of $100 a day (per employee for each affected employee) to employers who continue to pay for employees’ individual health plans.  Please click below link to this article.

http://eba.benefitnews.com/news/regulation/premium-reimbursement-is-a-costly-violation-2746335-1.html?zkPrintable=true.

We would be happy to help your company find affordable solutions to comply with local and federal requirements regarding health insurance.

Phil Lee

Lee Health Insurance Services
800-286-7445

www.linkedIn.com/in/philwlee

www.Health-Insurance.com

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Anthem Blue Cross Offers Free Identity Protection Service To Those Affected By Cyber Attack https://health-insurance.com/anthem-blue-cross-offers-free-identity-protection-service-to-those-affected-by-cyber-attack/ Sun, 08 Mar 2015 20:31:16 +0000 https://health-insurance.com/?p=639 To follow up on my alert regarding the Cyber Attack of Anthem Blue Cross, Anthem is now offering to all those affected, free Identity Protection Services.
If you are a current or former Anthem Blue Cross member, you may sign up as follows:
Go to www.anthem.com/ca
On the homepage, under the “yellow shield”, click “Learn More”.
On the 4th paragraph, click https://anthem.allclearid.com/
Please read and follow the instructions carefully.
We are happy to be of service to you.
Please don’t hesitate to call us should you need help on your health plan coverage.
Phil Lee
www.health-insurance.com
800-286-7445

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Cyber Attack – Letter from Anthem Blue Cross https://health-insurance.com/cyber-attack-letter-from-anthem-blue-cross/ Sun, 08 Mar 2015 20:23:46 +0000 https://health-insurance.com/?p=637 Anthem Blue Cross asked Agents to send this email to all their current and former Anthem members. I am sharing this with all of you whether you have an Anthem plan or not.
“Anthem wants to keep you informed about its actions in response to the cyber-attack. If members have given Anthem their email address, they will get an email about identity protection and credit monitoring services. Anthem is required to send this email, due to state laws around breach notifications. The subject line of the email will be “Important Message From Anthem, Inc.” and it will direct members to visit AnthemFacts.com to sign up for credit protection services. The email will not ask for personal information. Anthem encourages all members to read the email and visit AnthemFacts.com to sign up for the services provided by Anthem.”
Phil Lee
Lee Health Insurance Services
www.health-insurance.com
800-286-7445

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Fixing Obamacare at Capitol Hill https://health-insurance.com/fixing-obamacare-at-capitol-hill/ Sun, 08 Mar 2015 20:16:38 +0000 https://health-insurance.com/?p=635 Last week, I and my fellow board members from our agents and brokers’ Association of Health Underwriters (AHU) gathered at Capitol Hill in Washington, D.C. to visit with Congressmen and women from both sides of the aisle to discuss issues and challenges that affect health insurance for Americans. During the past 18 months since the ACA rollout, agents and brokers exceeded everyone’s expectations by excelling in their jobs, while the Govt. Exchanges and all other entities fell below expectations. Our association has received the recognition of lawmakers and regulators, and we strive to promote a system that would be more affordable, equitable, less bureaucratic to consumers and employers, while offering more choice and competition, and reducing the burden on taxpayers.
Thank you for your feedback and concerns which I incorporated into our conversations with legislators.

Phil Lee
Lee Health Insurance Services
www.health-insurance.com
800-286-7445

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Anthem Blue Cross Cyber Attack https://health-insurance.com/anthem-blue-cross-cyber-attack/ Fri, 06 Feb 2015 08:47:48 +0000 https://health-insurance.com/?p=628 This is important enough to warrant a special blog, for those of you who are enrolled in Anthem Blue Cross health plans.
Anthem Blue Cross announced yesterday that their information system has been attacked. We do not have the details of this hack but I am sharing with you below an excerpt from the announcement that we received from Anthem:

“Safeguarding your clients’ personal, financial and medical information is one of our top priorities, and because of that, we have state-of-the-art information security systems to protect your data. However, despite our efforts, Anthem was the target of a very sophisticated external, cyber attack. These attackers gained unauthorized access to Anthem’s information technology (IT) system and have obtained personal information from our current and former members such as their names, birthdays, member ID/Social Security numbers, street addresses, email addresses and employment information, including income data. Based on the information we know now, there is no evidence that banking, credit card, medical information (such as claims, test results, or diagnostic codes) were targeted or compromised.
Once the attack was discovered, Anthem immediately made every effort to close the security vulnerability, contacted the Federal Bureau of Investigation (FBI) and began fully cooperating with their investigation. Anthem has also retained Mandiant, one of the world’s leading cybersecurity firms, to evaluate our systems and identify solutions based on the evolving landscape.
Anthem’s own associates’ personal information – including our own – was accessed during this security breach. We join you in your concern and frustration, and we assure you that we are working around the clock to do everything we can to further secure your clients’ data.
Anthem will individually notify current and former members whose information has been accessed. We will provide credit monitoring and identity protection services free of charge so that those who have been affected can have peace of mind. We have created a dedicated website (www.AnthemFacts.com ) where members can access information such as frequently asked questions and answers. We have also established a dedicated toll-free number that both current and former members can call if they have questions related to this incident. That number is: 1-877-263-7995. As we learn more, we will continually update this website and share that information with you. And, we developed a memo template and FAQ to help you answer questions you may receive from your clients.
We want to personally apologize to you and your clients for what has happened, as we know you expect us to protect your information. We will do everything in our power to make our systems and security processes better and more secure, and hope that we can earn back your trust.”

Please note the toll free 877 number above and the website address www.AnthemFacts.com for more information.

The following Bloomberg article (link) sheds more light on the situation 24 hours after Anthem’s initial announcement and provides helpful steps to take to monitor your own information if you are an Anthem member :
http://www.bloomberg.com/news/articles/2015-02-05/what-to-do-right-now-if-you-re-one-of-the-80-million-anthem-members-who-got-hacked

If you are an Anthem member, I share your concerns and am sympathetic to your situation, as I and my family are also in the same position. I do not have any more information than what’s reported above. If you are affected, you will be receiving more communication from Anthem shortly.
Phil Lee
Philip W. Lee, MBA
Lee Health Insurance Services
800-286-7445
www.health-insurance.com

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Health Plan Enrollment Deadlines https://health-insurance.com/health-plan-enrollment-deadlines/ Wed, 10 Dec 2014 03:01:06 +0000 https://health-insurance.com/?p=569 This is a friendly reminder of several deadlines that are approaching.

Deadlines for INDIVIDUAL & FAMILY HEALTH PLANS (Either On-Exchange Covered CA plans or Off-Exchange plans)

(1) Deadline to enroll or change plans for a Jan. 1st effective date is Monday, Dec. 15th

(2) Open enrollment runs from 11/15/14 to 2/15/15. The deadlines corresponding to each effective date are:

Deadlines for each Effective Date

12/15/14 for 1/1/15

1/15/15 for 2/1/15

2/15/15 for 3/1/15

(3) If you are currently receiving a subsidy, then you must Renew by logging into Covered CA with your User ID and Password in order to re-certify to continue receiving the subsidy. (4) If you are uninsured, you may enroll by Dec. 15th to avoid a penalty in 2015.

Deadlines for EMPLOYERS WITH SMALL GROUP PLANS

(1) Groups on Grandfathered or Grandmothered plans will already have renewed on Dec. 1st.

(2) All groups, whether Grandfathered or Grandmothered will have a chance to change to new ACA plans with another insurance carrier on Jan. 1st.

(3) If you are dissolving an Employer Group plan and allowing employees to buy individual plans, they need to enroll by Dec. 15th for a Jan. 1st start. (Note that Individual health plans have significantly smaller Provider Networks than Group plans, and smaller Drug Formulary lists. Each of your employee will need to research their providers and formularies carefully before making a switch. Not all employees will qualify for subsidies. Employers are not allowed to use pre-tax dollars to pay for employees’ Individual plan premiums.)

Deadlines for SENIORS ON MEDICARE PLANS

(1) The deadline to change from a Medicare Advantage MA-PD plan (HMO or PPO) to another is Dec. 7th.

(2) The deadline to change from a Medicare Prescription Drug PDP Plan to another is Dec. 7th.

(3) For Medicare Supplement (or Medicare Gap) Plans there is no deadline and no renewal is necessary. These plans will continue as long as you continue paying the premium.

(4) For those of you who received termination notices from Scan Health and Health Net Medicare Advantage plans, you must enroll before Dec. 31st for a Jan. 1st effective date. Since some carriers will be closed during the holidays, you should submit these applications 2 weeks before Dec. 31.

(5) If you are on a Medicare Advantage MAPD plan and wish to switch to a Supplement plan and a PDP plan, you may do so, guarantee issue, only under 13 specific conditions. Otherwise, underwriting approval may be required and the timing of the switch can be tricky. The ideal time to make a change is between Oct. 15 and Dec. 7th, and as early as possible during this window. This should not be done without the assistance of a knowledgeable agent.

Please contact us, Lee Health Insurance Services, at 925-284-2000 if we can be of assistance.

Phil Lee

www.health-insurance.com

http://www.yelp.com/biz/lee-insurance-services-lafayette-6

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