New for 2010
Tax
Credits for Small Groups
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The IRS
recently released  materials for those wishing to
claim the small business health care tax credit for 2010. A provision of the
Patient Protection and Affordable Care Act (PPACA), this tax credit is designed
to encourage small groups to offer health care coverage for the first time or
enable them to maintain the coverage they already have. It will likely provide
assistance to about four million small businesses.
This
tax credit can be significant for a qualifying small group. In 2010, the maximum
credit is 35% of employer-paid premiums; for tax-exempt organizations, the
maximum is 25% of employer-paid premiums. In 2014, the maximum increases to 50%
of employer-paid premiums; for tax-exempt organizations, it increases to 35% of
employer-paid premiums. In order to qualify for the credit, the employer must
not employ more than 25 employees and the average annual compensation of those
employees must not exceed $40,000.
Here's a
look at how a company with 10 employees could benefit:
Employees:
10
Wages: $250,000 or
$25,000 per worker
Employer Health Care
Costs: $70,000
2010 tax
credit: $24,500 (35% credit)
2014 tax credit: $35,000
(50% credit)
For more
examples, click
here.
While
there is no formal guidance yet, the IRS has provided educational resources for
small businesses wishing to claim the credit this year. Click here to
see the following information:
Eligibility rules
Amount of credit
Three simple steps to
determine a small group's eligibility
More tax credit
scenarios
FAQs
You can
expect more health care reform updates like this one throughout the year. We're
eager to get information out to you as soon as possible, so you can help your
clients get the most from the new legislation.
For
more information Email Bev Gough at Bev@GreatLakesIM.com, or call her at (269)983-0633 or (800)782-8190 |
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Smart Technologies and a Personal Touch
The Delphi Card
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The DELPHI CARD®
has been  providing companies with solutions to their healthcare benefits
since 1990. The company was founded on the core principles of:
- The closer you tie the reward or consequences to the individual's
action, the higher the probability is for change in the desired
direction.
- When you separate the purchaser and the user you violate sound
economic principles.
The DELPHI CARD®
is a healthcare management and advocacy approach to healthcare that
brings the consumer back into the decision process. We do this by
providing both the company and employee the tools and information to
make wise healthcare decisions.
The consumer is assisted in finding quality healthcare and information
to make informed healthcare decisions by a health care coach. It is
unique in that patients are not left to fend for themselves, but are
provided a personal health care coach that guides them through the
healthcare maze.
The process of proactive continuous case management allows the employers
to reduce their costs while delivering high quality care to their
employees. Consumers are motivated to contact their personal health
coach, learn about various options, and make their own decisions about
what costs will be incurred. Once the contact is made, case management
begins thus initiating a superior form of proactive risk management. The
combination of these techniques, allow clients to achieve a much lower
rate of healthcare utilization than any other plan in the market,
resulting in reduced costs and better quality care.
The DELPHI CARD®system encourages the following:
- Contact between the patient or patients' family/support group and
their health care coach, when possible, prior to using the health care
system and at each step of and episode of illness.
- Readily available and understandable information comparing the
measured quality and costs associated with various providers and
treatment alternatives.
- Incentives to choose providers and treatment plans not only for
quality but also for value.
- Health Reimbursement Arrangement Administration
- Professional assistance before and during each step of an episode of
illness so patients understand how economics and medical treatment
plans can be interwoven in a cost-effective manner.
For more information on the Delphi Card and its Smart Card Technology, Click here to view the latest PDF For more information Email Bev Gough at Bev@GreatLakesIM.com, or call her at (269)983-0633 or (800)782-8190. |
Assurant Health Makes Changes
Rate
changes Affecting You and Your Clients
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This is great news! If you read the communication, it mentions that when you
are quoting for effective dates of 5-1-10 and later, you will be asked if a
potential insured has existing coverage. It also mentions there will be a
different rate for those that have prior coverage(lower) than those who didn't
have prior coverage. Bottom line-RATES FOR PEOPLE WITH PRIOR COVERAGE WILL
BE LOWER THAN THEY ARE TODAY! AKA A RATE REDUCTION! Approximately
8% lower rates are available as well on One Deductible deductibles of $2,000 and
up as there is now a 24 month rate lock available! Make sure you are quoting
Assurant/Time!
Maternity
Maternity coverage has been removed as an optional benefit on all currently
marketed Individual Medical plans, except where state mandated. There are no
changes for customers who currently have Maternity coverage. They will continue
to receive benefits. For
further details please read the Product Change Communication.
Student
Select
Student select will be discontinued. This change will impact all states where
these products are currently marketed. The last effective date for new Student
Select business is May 18, 2010. Existing business will remain in
force.
KeyMed
The KeyMed limited-benefit plans have been discontinued. Applications with
effective dates prior to May 1, 2010 are still be accepted. Existing business
will remain in force.
Individual
Medical Brochure
The
comprehensive brochure for Individual Medical portfolio has been redesigned and
updated with the agents in mind. Look for the new brochure on Find a Form.
Designed for agent use only, you can depend on this brochure as your reference
tool. Please use the individual product brochures with your clients. I've
attached pdf's the CoreMed and HSA/One Deducible brochures below.
Short
Term Medical
The Short Term Medical brochures have been redesigned. This newly redesigned
brochure will be a great sales tool for you and has a easy-to-read format. You
may continue to use your current brochures for now. However, with any new order
you will receive the new redesigned brochures. Please see the communication
mentioned above for more details. (I've attached faxable versions for MI
below.)
If
you would like current brochures, I've attached a faxable supply order form
below. I will have a few extras in the office that can be mailed as well. Make
sure to view the entire Product Change Communication! If you have any questions
please feel free to contact my office.
For more information Email Bev Gough at Bev@GreatLakesIM.com,
or call
her today at (269)983-0633 or
(800)782-8190
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| Health Care
Reform
New Law
Means Tax Increase
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As lawmakers returned to
Washington,
Republicans affirmed their commitment to repealing the health care reform
legislation, while Democrats continued to campaign on the health care reform
law's merits. Meanwhile, President Obama stepped up his efforts to energize his
core supporters by capitalizing on health care reform.
New Health Care
Reform Law Means Tax Increase for Middle Class:
According to a report
recently received by congressional staffers, the new health care reform law will
result in higher taxes for approximately 14.7 million middle class Americans.
Taxpayers can currently deduct medical expenses in excess of 7.5 percent of
their adjusted gross income (AGI). Starting in 2013, most taxpayers will only be
able to deduct expenses greater than 10 percent of AGI. By limiting the medical
expense deduction - a provision widely used by taxpayers who either have a
serious illness or are older - the new law is expected to save billions of
dollars. However, according to the Joint Committee on Taxation, those taxpayers
earning less than $200,000 a year will pay roughly $3.9 billion more in taxes in
2019 alone because of the new limits for this deduction.
Members of Congress
Baffled by Health Care Reform Provisions:
According to
Congressional Research Service, the new health care reform law may have serious
unintended consequences for members of Congress and their employees. Due to
ambiguous and confusing language, members of Congress and their staff members
may lose access to the Federal Employees Health Benefits Program, effective
immediately. Rep. Jason Chaffetz (R-UT) said lawmakers were in the same boat as
many Americans, trying to figure out what the new law meant for them.
Congressman Chaffetz asked, "If members of Congress cannot explain how it's
going to work for them and their staff, how will they explain it to the rest of
America?"
Another State Joins
Lawsuit Against Health Care Reform Bill:
This week, Georgia
Governor Sonny Perdue appointed a special assistant attorney general to lead the
states challenge against the health care reform law. Georgia joins 18 other
states in alleging that the new law infringes on Americans' Constitutional
rights by mandating that individuals purchase health care coverage or pay a
penalty. Frank Jones, the state's pro bono special assistant attorney general,
will represent the State of Georgia and join the multiparty lawsuit filed on
March 23 in a federal court in Florida. Other states in the suit include
Alabama, Arizona, Colorado, Florida, Idaho, Indiana, Louisiana, Michigan,
Mississippi, Nebraska, Nevada, North Dakota, Pennsylvania, South Carolina, South
Dakota, Texas, Utah and Washington.
Insurance
Commissioner Won't Comply with Law:
Also in Georgia,
Insurance Commissioner John Oxendine refused a request from the U.S. Department
of Health and Human Services to create a pool for high risk insurance plans. His
decision to opt out of creating a high risk pool will not affect the cost of
insurance for any patients. However, the federal government, instead of the
state, will oversee the distribution of certain federal health care funds in
Georgia to ensure that high risk patients receive subsidized premiums on health
insurance. |
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One Decreasing Deducible
From
Assurant Health
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The
Decreasing Deductible from Assurant Health is a rewarding, valuable and smart
option for your clients. The One Decreasing Deductible health insurance plan
earns credits to reduce the amount they pay of their deductible. They may never
pay your full deductible again.
The One Decreasing Deductible is their plan deductible REDUCED by the credits
that accumulate/ Twice a year, Assurant Health applies a 10% credit that reduces
the amount they pay of the plan deductible, until the deductible is met. The
more credits they accumulate the less they pay. REWARDING... 10% credit available twice a year - Your client
starts accumulating credits on January 1 and July 1 after your plan has been in
force for two months. Each credit is 10% of the plan deductible. Each year starts out with a 10% credit on January 1
- Even if they meet their One Decreasing Deductible in the previous year,
Assurant Health will start the next year with a 10% credit on January 1. And,
they will apply another credit on July 1 if they haven't met their One
Decreasing Deductible. Credits Start over after the deductible is met -
After they meet they One Decreasing Deductible, Assurant Health will pay
expenses at 100% - according to the plan. They won't collect any more credits
for the calendar year because the deductible has been met and accumulating
credits have been used. But, the following January 1, the process starts over
with the plan deductible and their first 10% credit for the new year. VALUABLE... Credits accumulate over time -
Credits accumulate, year after year, until the One Decreasing Deductible
is met. The deductible and their insurance contract stays the same but, credit
by credit, the deductible amount they have to pay is reduced. Savings as much as 70% - As they
accumulate credits, the One Decreasing Deductible can go as low as $1,500 for
individual coverage or $3,000 for family coverage. With the highest deductible
options, they may see deductible savings as much as 70% SMART... Easy for the client - Assurant Health
will track their credits and the One Decreasing Deductible amount. As long as
the client keep this coverage up-to-date, Assurant will do the rest. Automatic - The credits they
accumulate are applied automatically when they meet or exceed their One
Decreasing Deductible. Options to Choose... One Decreasing Deductible is available on 100% coinsurance plans
with several different plan deductible options.
- Individual plan deductibles of $2,850, $2,750, or $5,000
- Family plan deductibles of $5,700, $7,500, or
$10,000
For more information Email Bev Gough at Bev@GreatLakesIM.com, or call
her today at (269)983-0633 or
(800)782-8190
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Federal Long Term Care Insurance
Provision included in the Recently
Passed Health Care Reform Bill
|  The Congressional health care bill just signed by President Obama
contains provisions for the first ever federal long-term care insurance
program.
The goal of the program initially drafted and proposed by the late
Senator Ted Kennedy (D, MA) was enabling individuals who are unable to
secure private long-term care insurance with a modest benefit to pay for
care when needed. Experts estimate as many as 50 percent of Americans
over the age of 65 will need long-term care at some point in their
lives.
Referred to as the Community Living Assistance Services and Supports
Act, (or the CLASS Act) the plan was spearheaded by the late Sen.
Edward Kennedy, D-Mass.. The program calls for workers to pay a premium
over a five-year vesting period to later receive about $50 per day in
benefits for medical equipment and home renovations - provided they were
unable to perform activities of daily living.
"The signed bill offers little in terms of details," explains Jesse
Slome, executive director of the American Association for Long-Term Care
Insurance, the Los Angeles-based national trade organization. "Over
the year or two, the Department of Health & Human Services will
determine pricing, benefit levels and requirements for employers
offering the plan."
Current projections by government entities and outside actuaries
expect the cost will be between $110-to-$160 per month for participants
in their 50s. "The new plan will offer little benefit for anyone
currently age 55 or older," Slome explains. Most experts don't expect
details to be finalized until 2012 and then the first offerings extended
to employees in 2013 making one ineligible for any benefits until 2018.
"The plan may be attractive coverage for those unable to health
qualify for traditional long-term care insurance," Slome notes, "or
those working for employers not offering a long-term care insurance
benefit to their employees." According to industry data, some eight
million Americans own long-term care insurance protection purchased on
an individual basis or through a plan offered by their employer.
For more information Email Bev Gough at Bev@GreatLakesIM.com,
or call
her today at (269)983-0633 or
(800)782-8190
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New Website Address Our Email addresses have changed too | www.GreatLakesIM.com
We
have changed our website address, the name is shorter and easier,
please be sure to point your browser to www.GreatLakesIM.com. Over the
next couple of months you will notice a new design with greater user
interaction and flexibility. Stay tuned! |
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Apples linked to endurance
Go 13%
longer with antioxidant quercetin
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Do you find yourself getting tired about  halfway through your workout? Try loading up on apples, elderberries, fennel and red onions-- all top sources of the
super-antioxidant quercetin, which new research shows may help improve endurance
by enhancing your body's energy efficiency! A University of South Carolina Studypublished earlier this year
found that when 12 college-age volunteers increased quercetin intake over the
course of a week while being tested for exercise endurance on stationary bikes,
they not only improved their oxygen uptake by 4%, they were able to ride 13%
longer before becoming fatigued (106 minutes compared to 93 minutes for the
placebo). Researchers say the supplemental quercetin helps marshal the body's mitochondria-- the cellular dynamos that
harness the energy released from food. In other words, more quercetin
could help stave off the fatigue that has too many of us throwing in the towel,
before the real benefits of longer-length exercisekick in! Previous
research found that quercetin may help enhance immunity, protect against Alzheimer'sas well as well as alleviate the pain of prostatitis. While most
quercetin studies thus far have used supplements, eating a wide variety of quercetin-rich sources will also provide the
synergistic benefits of whole foods. Bonus:You can also boost stamina with beets, which contain compounds
that help improve aerobic efficiency by nearly 20%.
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 A
Managing General Agent (MGA) and General Agent (GA), providing
assistance to independent Agents and Agencies throughout the Midwest
with products and services which increase their sales and market growth
in the individual, group and senior insurance markets.
Great Lakes Insurance Management began company operations back in the early 1970's in St. Joseph, Michigan. We provide services to agents via a staff of experienced and trained insurance professionals. |
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SAND, SUN, FUN AND A FEW GREAT PRIZES TOO!
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Great Lakes Insurance Management is changing the Vacation Giveaway Program this year!
We will still be giving away a fantastic trip to qualifying agents, but we will also be giving away some great prizes on a tiered level.
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