Three Weeks and a Cloud of Dust!

It occurred to me today that we are about 3 weeks away from the initial Open Enrollment Period for the new Exchange environment in health insurance.  I have two questions; 1) where did the time go?  2) What is this really going to look like?  If you have followed my blogs, you know that I want to relay as much information as I can to assist you in making good decisions.  I want to recap some very important points that need to be considered, and cannot be overlooked as we move into 2014.

Employee Notification (Even if you don’t have a health plan)

Employers are required to provide the written notice to each current employee not later than October 1, 2013, and to each new employee at the time of hiring beginning October 1, 2013 (a notice will generally be considered to be provided 'at the time of hiring' if it is furnished within 14 days of an employee's start date).

Here are some samples for you to use.

·         Model Notice for Employers Who Offer a Health Plan to Some or All Employees

·         Model Notice for Employers Who Do Not Offer a Health Plan

Rate subsidies for lower income employees. 

Some people may want to look at what the government would provide in the way of rate subsidy to see if it would be beneficial.

Here is a Subsidy calculator. Kaiser Subsidy Calculator

Early Renewal Strategies

Some insurance companies are approaching employers offering an early renewal in order to avoid the negative effects of the legislation until some later date in 2014.  This should give you a strong indication as to what they think the rates will be in the reform environment If you think that this is a good strategy and your company can qualify for a trade association program, you should definitely move your company to a trade association program.  Think about it this way, if avoiding reform is a good idea for 11 months, it is a GREAT idea for an indefinite period of time.  Bona fide trade association programs will avoid the “community rating” provisions of the Act.  Therefore, as long as you qualify, you should be in terrific shape in that type of a plan.

Association Health Plans

This is something we know a lot about.   Professional trade associations have been around for many years.  Many associations have had health insurance programs for over 30 years.  The new law does allow for members of trade associations to participate in these health insurance programs if certain conditions are met.  We have several of these available and would welcome any inquiries as to your firms’ eligibility for those programs.  Association Health Plans  These plans provide the following:

·         Significant savings for member groups who qualify

·         New Anthem group customers can save on average 8% to 10% over a non-association plan

·         Current Anthem customers can save up to 5% by transferring to the association plan

·         Gain purchasing power by aggregating many small employers into a larger group

·         Stability after the 2014 reforms take effect 25 years of successful operations as a fully insured member benefit program

Keep in mind that all individuals will need to purchase some type of insurance coverage or face a monetary fine.  As our economy starts to show signs of recovery, it is imperative for attraction and retention of quality employees to at least look at your options as an employer.   I have been told by a very knowledgeable source that the exchange website will be very challenging to navigate.  Take that off their plate by offering a solution.  Contact us at Logan Lavelle Hunt and we will help you navigate the changing tide of health care.

Peace