Most of you hear my talk about Cyber Liability and Technology E&O coverage but we are in the midst of Open Enrollment and everyone has questions about how the new laws and coverages affect their company bottom line and staying in COMPLIANCE with the IRS and ERISA We have a couple of subjects we'll review in this particular blog.
First the good news for those of you who have procrastinated and need to get health insurance coverage now and are SOLOPRENEURS without employees and do not qualify for ConnectForHealthCo.com:
1. The Deadline has been extended to get applications in for 2013 for 12/15/13 effective dates: (one major big name national company) that is extending the deadline for 2013 rates to the end of the year (NON EXCHANGE). What does this mean for you? If you have no major health issues or are not on any Tier 2/3 meds, you may be able to save up to 30% or more. A. You must fill out an app that asks medical questions B. Once you are approved you will have 2013 rates on a NATIONAL PPO Network through 2014.
Example: Family of 3 coming off COBRA. 12/15/13 rate was $400 savings over 1/1/14 rate. That's $4800 a year savings. Please note that policies will be backdated to 12/15/13 and auto renewed for 1 year through 2014. Apps after 12/13/13 that are submitted will be paper apps processed by the broker through the end of 2013. No electronic apps past 12/13/13....the system will automatically put you into a 30% higher rate online for 1/1/14
Action Plan: Get quoted today, and remember, FIRST IN CUE, FIRST out of CUE with the insurance companies. Get enrolled no later than 12/18/13 to ensure your app is input and logged by the insurance company BEFORE Christmas!
2. Solopreneurs who have an average earned income for an individual between $22,000 and $38,000 may do better inside the exchange. Why are most having trouble with signing up?
A. The staff at the exchange are not licensed professionals and cannot answer coverage questions and there are over 100 new plans. Most of these people will be GONE by March 2014.
B. There are new networks that may or may not have your hospital or MD and your broker knows up front how to help you.
C. Do you really want to wait an hour on hold and or get hung up on by an automated system at an insurance company to confirm enrollment, ID cards, get answers to question? Your broker has back office tools to watch apps in cue and work with their insurance company rep to make sure nothing is lost in process. The broker is paid by the insurance company so it's FREE to you.
D. Who is watching out for your enrollment? For clients that select us in ConnectForHealthCO we are creating redundancy with the MGA and the carrier and getting confirmation for our clients along with setting up the payment with the carrier. It's so messy right now and they are so overloading they are sending everything they can out to the brokers. So all apps, paper or electronic that we work with have a case advocate assigned by the MGA and confirmation by the rep.
Action Plan For Exchange: FIRST IN CUE, FIRST out of CUE with the insurance companies. Get enrolled no later than 12/18/13 to ensure your app is input and logged by the insurance company BEFORE Christmas!
Technology Businesses with Employees: Tax Credits, Tax Deductions and Important Discussion of HRA's and Individual Health Insurance will cause Penalties and Fines
1. We posted info on the HRA issue on Built in Denver a few days ago. We have posted this along with a small white paper at http://www.denvertechinsurance.com/employee-benefits/colorado-health-insurance-hra-compliance/ In a nutshell, don't do it. YOU MUST start a group health insurance plan IMMEDIATELY to be in compliance or be subject to fines and penalties. Talk to your accountant and call us for a quote. Group health insurance is tax deductible or if you have a lower wage base and under 10 employees you may qualify for a tax credit.
2. If your wage base is less than $50,000 a year, you can qualify for a 50% TAX CREDIT. How does this work? Example: Let's say you are an owner with 6 employees. I am seeing some of you paying for family standalone policies at $1500 a month going up to $1900-$2100 a month in January and now you will have NO reimbursement from the business available through an HRA through the business January 1, 2013 on this old individual policy. So this owner is late 40's /early 50's with the other 5 employees around 25-39 and a monthly premium for the employees only including the owner of $2100.00 through a major PPO offered through the SHOP exchange. Because the wage base is under $50,000 for the employees the owner qualifies. Requirement: Pay 50-100% of employee premium (and family premium amounts paid by the employer ALSO QUALIFY!) In this case the owner decided to pay 100% of employee only premium.
$2100 x 12 =$25, 200 in premiums (employees only) x 50% = $12,600 TAX CREDIT
This is NOT a tax deduction, it's a TAX CREDIT OFF YOUR 2014 TAX BILL! In the above example, it's like Uncle Sam is giving you over $1000 a month towards your group health insurance.
Action Plan: You can start a group plan immediately, get a tax credit, and help attract and retain employees by having a benefits plan in place and avoid IRS fines and penalties by punting the defined contribution to individual policies.
Need help? Confused by the changes? Need to get into compliance immediately?
Call today Stacey Gilbert 303-471-9424 Certified Broker, Connect For Health CO!
Check out our Q&A http://www.denvertechinsurance.com/smallgrouphealthinsurancecolorado/