Business
Since we have reached the date of October 1, 2010 there are implementations of the Healthcare reform act that we would like to call to your attention. There are several provisions that apply at the time of the first renewal of a plan post September 23rd, so this first day of October is significant for many employers. A first item to address is the extension of coverage for adult children up to the age of 26. This is regardless of marital status or whether child is a student. January 1, 2011 will find that over the counter medications will be excluded from reimbursement in Flexible Spending Accounts (FSA's). For some plans that are not grandfathered, plans will now have to provide preventive care at 100%. There will no longer be allowable deductibles or co-pays. The definition of preventive care can be found at U.S. Preventive Services Task force web site. A new provision eliminates any pre-existing conditions for children under the age of nineteen. Plans can no longer excludes pre-existing conditions, in particular this is having a big impact on individual plans. Grandfathered provisions must be looked at carefully regarding what compliance factors must be adhered to when looking at renewals. Provisions such as patient protection and 100% preventive care can be determinants Losing grandfathered status can come about if you significantly cut or reduce benefits, you cannot raise co-insurance to your employees, and you cannot significantly raise co-pays. They can only be raised by $5. This applies to all size groups. Finally, as an employer, you cannot change insurance companies and must not pass any additional rate hikes on to employees. On Good Morning America this morning they announced a web site called Healthcare.gov, that is a great resource on information regarding the changes being made under Healthcare Reform. Rajesh (R. J.) Jyotishi of Shalin Financial & Jennifer Stucky with The A. I. Group have been in the insurance and financial services for over 15 years and have assisted hundreds of individuals and groups for their insurance and employee benefits needs. For questions, they can be reached at Rajesh Jyotishi: 770-451-1932, Jennifer Stucky: (770) 664-5526. Theme music for the Money Wise podcast is Now or Never, available on the album Carpe Diem.