State and Federal governments have accrued over $1 trillion in Unfunded Public Employee health care liabilities. The State of Indiana has successfully used consumer-driven health care plans like HSA plans to reduce costs by tens of millions of dollars. The Federal Government can shave $20 billion from their $130 billion bill by using HSA’s.
See full story, Wall Street Journal:
The 2011 HSA Health Savings Account contribution limits are the same as 2010’s limits:
Single HSA: $3,050
Family HSA: $6,150
Over 55 years old (but under 65): add $1,000 each person, maximum of 2 per family.
© Philip W Lee, www.health-insurance.com, www.healthplantalk.com
If you use your HSA funds to buy over-the-counter items such as allergy and pain-relief medication, fish oil supplements and vitamins. As of January 1st, 2011, you can no longer use your HSA funds to buy over-the-counter medication without a doctor’s prescription.
In addition, you are no longer able to use your HSA money to reimburse yourself for these purchases. You may, however, reimburse yourself for over-the-counter drugs purchased in 2010.
Also, the tax penalty has doubled to 20% of the total withdrawal if you use your HSA funds for non-medical purposes.
These reductions in HSA benefits were brought about by the Health Care Reform Act of 2010, also known as PPACA, Patient Protection and Affordable Care Act or Obamacare.
To read more about over-the-counter purchases and how these changes affect your HSA, visit the IRS website at www.irs.gov and look for IRS Notice, 2010-59.
© Philip W Lee, www.health-insurance.com, www.healthplantalk.com
Some of you have been asking us about this feature of the HCR (Health Care Reform) bill. I’m going to share with you a clarification that I received from Anthem Blue Cross. This one aspect of the massive HCR law, which will take effect on Sept. 23 applies only to the following:
1) If an overage dependent has been dropped from a health plan in the past due to having attained age 23, this dependent will be allowed to enroll, guarantee-issue, back onto the parent’s plan after Sept. 23rd, as long as they are not yet age 26.
2) The no pre-existing condition rule for children means that children (under age 18) will no longer have to be subject to the 6 month pre-existing condition waiting period (which currently applies to all PPO plans for individuals who did not have continuous coverage, or did not have prior creditable coverage making them eligible for the 6 month pre-existing condition waiting period waiver.)
3) Rule #2 above does not bar insurers from still denying coverage or ‘rating up premiums’ for dependents (with pre-existing conditions) who do not satisfy Rule #1 above.
4) Rule #4 above has since been revised by the regulators after further discussions and negotiations with insurance companies. The rules now mandate Guarantee Issue as well as the elimination of Pre-Existing Condition waiting periods for children.
© Philip W Lee, www.health-insurance.com, www.healthplantalk.com
Did you receive a small postcard in the mail from the IRS notifying you of the existence of the Small Business Tax Credit for Health Care provided for by the recently passed Patient Protection and Affordable Care Act or Health Care Reform Act? The links below give you the official Dept. of Treasury, IRS, definitions and guidelines for qualifying for these tax credits.
IRS Overview:
http://www.irs.gov/newsroom/article/0,,id=223666,00.html
Frequently Asked Questions:
http://www.irs.gov/newsroom/article/0,,id=220839,00.html
In particular, the following 3 Simple Steps Chart helps you to determine if your company may qualify for these credits.
http://www.irs.gov/pub/irs-utl/3_simple_steps.pdf
For more information on Group Health Insurance, please go to www.health-insurance.com or call 800-286-7445.
© Philip W Lee, www.health-insurance.com, www.healthplantalk.com
I just learned that Anthem Blue Cross expanded their network of providers to include Retail Health Clinics: small, walk-in clinics located inside retail outlets, like pharmacies and supermarkets. For those of you on HSA-compatible health plans, this is another way to reduce your medical expenses, leaving more in your tax-free account for retirement. For more details …
(Below article from Anthem Blue Cross News Flash, 6/3/2010)
[Read more…]
For those individuals or family members who are not covered by an employer group health insurance plan, the individual health insurance market is the most popular first place to shop due to the attractive and affordable premiums. The monthly premiums for these plans are generally lower than what employers pay for group health plans, and therefore also lower than Cobra premiums. In addition there is a wide selection of plans with lower benefit levels (i.e. higher deductibles and fewer bells and whistles) and thus lower premiums for those with smaller budgets. The most important thing to know about the individual health insurance plan market is that you have to have good health to qualify. There is an application and underwriting process that determines your eligibility for these plans. There is generally no risk and no obligation in applying. Depending on your individual circumstances, the application process may take anywhere from a few minutes to several weeks. The application process and medical approval may involve the insurance underwriter having to obtain medical records from your physicians. The end result is that you may be either accepted, accepted at a higher rate level, postponed or declined for coverage.
Find Rates and Quotes for Affordable Health Insurance Plans at www.health-insurance.com.
© Philip W Lee, www.health-insurance.com, www.healthplantalk.com
California regulates health insurance to protect consumers, but does not overly restrict competition and free market forces.
California has a good number of insurance carriers each offering a wide selection of PPO and HMO type plans to consumers, small business and large corporations, in a free market environment.
All the rates, the plans and the benefits offered by all the health insurance carriers in California are pre-approved by the state’s regulatory agencies: the Department of Managed Care and the Department of Insurance. All rate increases are also pre-approved by these state agencies.
Consumers in California can find affordable individual and family health insurance plans that are often one half, one third or less than those offered in states like New York and Massachusetts where well-meaning but misguided state regulations have driven out affordable health insurance plans.
California has a much larger network of physicians and hospitals than most other states. Also, a very high percentage of doctors and hospitals participate in PPO and HMO Networks.
© Philip W Lee, www.health-insurance.com, www.healthplantalk.com
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