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Market Indexed CDs have become very popular in the last few years.  This is not a surprise given the relatively low standard CD interest rates being offered by banks,  the growing popularity of indexed annuities and the instability of the market.  At the end of the day, what does an indexed CD really offer? Read more

AEP “Annual Election Period” has changed for 2012.  The past AEP period to make plan changes was from November 15th to December 31st for a January 1 effective date.   This will change for 2012.  The AEP will now run from October 15th to December 7th for a January 1 effective date.  Read more

This article relates to 2011 AARP branded Medicare Products. Click this link for  information about 2012 Medicare Products.

United Healthcare has made some minor changes to their current suite of AARP branded Medicare Complete plans for 2011. They have also added new plans in some counties in order to better accommodate potential Healthnet members who will need to move to a new plan for January 1, 2011.

The AARP Medicare Complete RPPO $0 premium plan will essentially stay the same for 2011. The plan still features $0 monthly premium and is set up in the same manner as last year. The Inpatient hospital copay has been changed to $320 a day for 5 days vs. $275 a day for 6 days last year. The Rx benefit copays have increases slightly to $6.00, $45.00 and $85.00. As a result, there should still be strong migration into this plan with the relatively small benefit changes.

In most counties there has also been the addition of a $119.00 HMO option that looks to be geared toward catching Medicare enrollment leaving Healthnet Ruby 1 and Ruby 3. It is not likely that the new HMO plan be overly appealing to Ruby enrollees as the benefit structure does not look strong. It will be interesting to see if the new $119.00 option still only covers outpatient surgery and major radiology at 80%.

New Tax Credit May Help Small Businesses

Small businesses may be able to claim a new credit on their 2010 tax returns if they pay employee insurance premiums in 2010.

The credit, available through the Patient Protection and Affordable Care Act, is intended to:

1.Give small employers a tax break if they pay at least half the cost of single coverage for their employees on the group health plan.
2.Encourage small employers to offer health insurance for the first time or maintain the coverage they currently have.
These frequently asked questions may be helpful. More information about the credit, including tax tips, guides and FAQs is available on the IRS website at www.irs.gov.

This link will take you to the general overview on the IRS web page IRS LINK

Use this link to determine eligibility Eligibility chart

Medicare Supplement Plan N was approved for enrollment on June 1, 2010. The plan is offered at a competative price point by Anthem BCBS and United Healthcare “AARP Branded”. They both offer plan N for around $150 a month depending on availability of discounts.

Plan N is a departure from other supplements in that is allows the physician to bill up to a max of $20 per visit. It also has a $50 emergency room copay and does not cover the part B deductible (disappointing) of $155 a year. Many seniors have been willing to give the plan a try in order to save $50 a month in premium. This has been especially true of those in plan F supplements. Plan J enrollees need to be careful as plan J is a closed plan an they will not be able to go back to it in the event they try plan N and decide they do not like it.

The most suprissing part plan N has been the low number of providers that actually bill any type of excess on the plan. Providers are allowed to bill up to $20 dollars but seem not to do so often. (That has been our limited experience so far anyway)

People switching from their current plan to Plan N do not need to pay the $155 part B deductible as it has already been met for the year. They will however be subject to the Part B deductible in 2011.

Walmart will be offering Medicare Part D Prescription drug plans for 2011. While there has not been much detail provided about the plan design, it is suggested that the plan will have a $0 copay for generic drugs and very low cost monthly premiums

Walmart will utilize small kiosks in the store staffed by representatives licensed to sell the Medicare Part D Rx plans. There are not yet many details on the plan formulary but it will be offered through Humana. Members will only be able to use the new drug card at Walmart pharmacies. The plan will be available on November 15th which is the start of the Medicare Annual Election Period which is when Medicare Eligible members may sign up for a Part D Rx plan.

AARP Supplement Changes For June 1, 2010

AARP released the new supplement changes for 2010.  Plan changes and Rates are as follows…

Supplement Plan M- Will not be offered in CT for 2010 Read more

Employer Reporting Requirements

Notice of Coverage Options. Not later than March 1, 2013, employers must provide a written notice to newly-hired and current employees informing employees: 1) that healthcare exchanges are available, the services provided by the exchange, and how to contact the exchange; 2) if the employer pays less than 60% of the costs of benefits, that the employee may be eligible for a premium tax credit and a cost-sharing reduction if the employee purchases health insurance from an exchange.

Reporting Cost of Employer-Sponsored Health Coverage on W-2. Effective January 1, 2011, an employer will be required to report the aggregate value of medical benefits, dental, vision, and supplemental insurance coverage on the Form W-2 that is provided to each employee annually.

Uniform Explanation of Coverage. By March 23, 2012, group health plans and sponsors of self-insured health plans must provide participants a uniform summary of benefits and coverage. The uniform summary cannot be longer than four pages and must describe the health benefits offered under the plan, limitations on coverage, cost-sharing provisions, and any restrictions on continuation of coverage. Failure to provide this summary will result in a $1,000 fine per failure. Read more

Do You Have A Competitive Life Insurance Rate?

The old saying goes that you should keep you life insurance policy once you purchase it because it costs more as you get older.  This saying is only partially true for most and can cost you thousands is you follow it. Many believe that this was simply a ploy by insurance carries to help keep business on the books and prevent people from rate shopping once they had a policy.

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Small Group Employers In Connecticut May Want To Consider Alternatives

Group health insurance rates are becoming a greater burden on small employers with every renewal.  Double digit rate increases have become the norm.  So what can a small employer do to help off-set rate hikes?

Most employers have simply been going by the standard formula of increasing the employees contribution toward the plan premium and raising medical and Rx copays to keep things at a manageable level.  More proactive groups use either HSA or HRA designs in order to offer a plan with a more substantial deductible in order to lower premiums.  Such strategies are becoming more and more popular every year.

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Insurance Companies are starting to roll  out the plan changes for 2010 and the trend is disturbing.  Much like group and individual health insurance, Medicare Advantage plans are seeing increasing trends. The difference is that the Medicare Advantage companies are increasing rates and lowering benefits at the same time.

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Medicare Advantage Plans and VA benefits

We will explain why veterans should use $0 Medicare Advantage Plans and VA benefits .

There are a large number of Medicare eligible veterans who rely on VA facilities for their medical care and Rx coverage.  Although it is not possible to put all those using VA benefits in the same category, there is a general trend with veterans in Connecticut.  Most veterans go to VA doctors for routine care.  They also use the VA to fill their generic prescriptions.  The need for hospital or emergency care seems to be a different story as most usually tell me they prefer to go to the local hospital or emergency room.

The other trend I often see is:

They tend to have Medicare A and B benefits without either a secondary plan or Rx coverage.  This can lead to out of pocket costs when the veteran needs a name brand drug or chooses to use the local hospital or emergency room.  Medicare A and B leaves them with out of pocket expenses when they use non VA providers.

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