Welcome to TAKE CONTROL, our
periodic newsletter to friends, clients and associates of The JI
Companies. In each edition, we will dig into a topic of interest to those
involved with self-funding and bring you the facts you need to TAKE
CONTROL of your health care costs.
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Open Enrollment
Carrying out an open enrollment campaign can be
a demanding process. This year in particular could make the process more
daunting as new federal regulations go into effect that directly affect
all employer plans. Properly communicating plan changes and providing the
right information and resources are essential steps in ensuring your
employees make the most well informed decisions.
This issue of Take Control addresses two new laws: the new
prescription drug program, Medicare Part D and the latest regulations
regarding HIPAA portability. Take Control will also review the pros of
enrolling in a flexible spending account. Although Americans have been
able to take advantage of this regulation for over 25 years, many
employees remain uninformed of its benefits
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Medicare Part D
Effective
January 1, 2006, Medicare eligible plan members will have the opportunity
to participate in a new prescription drug program known as Medicare Part
D. Plans that provide prescription drug coverage to Medicare eligible
individuals must notify them by November 15, 2005 whether their coverage
is creditable. If your plan's current drug
benefit is equal to or exceeds the actuarial value of the standard
Medicare prescription drug coverage it is considered creditable.
As the deadline looms, find out what you
need to do now to become compliant.
http://www.benefitnews.com/detail.cfm?id=7972&terms=|d||medicare|
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New HIPAA Portability Regulations
The Employee Benefit Security Administration, the IRS, and the Centers for Medicare and Medicaid Service published the final regulations regarding HIPAA’s portability of health insurance coverage. These regulations affect group health plans and health insurers for plan years beginning on or after July 1, 2005 and provide additional protections in the event that you change jobs or health coverage. Specifically, the regulations address preexisting condition exclusions, special enrollment obligations, and provide a new model for certificates of creditable coverage. They also clarify and update what is excepted from HIPAA's portability requirements.
Confused?
JI’s Legal and Compliance team has put together a nifty PowerPoint presentation that explains the ins and outs of these complex new regulations. Send your request to ann.white@jicompanies.com for your copy of this presentation. |
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Flexible Spending Accounts
Benjamin Franklin’s quote “nothing can be said to be
certain, except death and taxes” reminds us of life’s inevitables.
Offering your employees a flexible spending account cannot prevent them
from paying the government its due, but it can alleviate real tax
burdens.
What is a flexible spending account?
A
flexible spending account (aka Section 125 or Cafeteria plan) allows your
employees to put aside pretax money to pay for eligible, out-of-pocket
medical expenses. When they contribute pretax dollars to a flexible
spending account, they experience the best of both worlds: paying fewer
taxes and increasing their spendable income.
How does it work?
Plan participants elect a specific amount
of money that is deducted from gross earnings before taxes are
calculated. When they have an eligible medical expense, they simply complete a
reimbursement form, and this money will be refunded to them.
At JI, we offer this information at your fingertips.
Through our online system, JI Benefits Online (www.jibenefitsonline.com),
clients can view a fund balance report that includes benefit description, annual election, year-to-date contribution and payments, current balance, and remaining
unused election.
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