Benefit Design Services Corporation

2012 Retirement Plan Trends

penny — Tue, 10 Jan 2012 15:12:12 +0000

Although there are few changes in retirement plan regulations for 2012, a few trends are emerging that may result in legal changes in the next few years. The trends are related to disclosure of fund past performance, participant fees, and lifetime income scenarios in the hope that participants will make informed choices in investments.

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Health Care Reform Issues to Watch in 2012

penny — Thu, 05 Jan 2012 19:18:01 +0000

ACO’s (Accountable Care Organizations): Paying for health care based on outcomes rather than fee-for-service is one way that health care reform is attempting to cut health care costs.

Supreme Court Oral Arguments: Debate on the constitutionality of the individual mandate to buy health insurance begin in March, and a decision is expected by summer.

Medicare Payment Reform: Like ACO’s, this is an attempt to cut costs by tying patient outcomes to provider payments.

2012 Election: If Republicans win the presidency and a majority in Congress, it could affect attempts to repeal health care reform.

Health Insurance Exchanges: States have until the end of 2012 to certify that they are ready for the 2014 implementation of exchanges.

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Health Plan Spending Ratio Rules Set

penny — Tue, 13 Dec 2011 13:53:49 +0000

The final rules have been published determining the percentage of your insurance premium that insurance companies must spend on health costs. This percentage, called a Medical Loss Ratio (MLR), is 80% for medical plans sold to employers with fewer than 50 employees and 85% for companies with 50 or more employees.

If insurance companies do not meet this minimum, they must rebate a portion of insurance premiums to employers and employees.

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Supreme Court Agrees to Hear Arguments On Health Care Reform Law

penny — Wed, 16 Nov 2011 14:38:10 +0000

The Supreme Court has set aside five and a half hours for oral arguments challenging the constitutionality of PPACA (Patient Protection and Affordable Care Act). Arguments are scheduled for March and will focus on the constitutionality of the individual mandate that most Americans purchase health insurance beginning in 2014. The justices must also decide whether the rest of the law can stand or whether the entire law must be struck down. Their decision will likely be made in June.

CLASS Act Implementation in Doubt

penny — Mon, 26 Sep 2011 17:36:09 +0000

The CLASS (Community Living Assistance Services and Supports) Act, a part of the last years health care reform bill, may not be implemented after questions were raised about its sustainability. Designed to keep people with impairments out of nursing homes, the program would pay for services received at home. One estimate says that the program would cost the Federal government more than the premiums collected would cover by 2025.

The number of HHS staff working on the CLASS Act has been reduced, but there has been no official word on its future. At the Senate Finance Committee hearing in February, Kathleen Sebelius said “The program will not start unless we can be certain it will be solvent and self-sustaining into the future.”

Additional Women’s Preventive Services in 2012

penny — Fri, 12 Aug 2011 17:47:52 +0000

The Department of Health and Human Services announced additional mandated preventive services for women for health plans with plan years beginning on or after 8-1-2012.

Legislation Proposed to Repeal HSA Limits on OTC Drugs

penny — Tue, 19 Jul 2011 13:27:08 +0000

Democrats and Republicans are working together to repeal the provision of the Accountable Care Act (health care reform) that prevents consumers from using FSA and HSA funds to purchase over-the-counter drugs without a prescription. Legislation was introduced in both the Senate and the House on July 14th.

Reports Differ on the Effect of Health Care Reform on Employer-Based Health Coverage

penny — Wed, 22 Jun 2011 18:14:30 +0000

Several reports released this week show different views of how health care reform will affect the number of Americans covered by employer-based insurance.

The number has been decreasing for the last 10 years, from 69% of Americans in 2000 to 61% in 2009.

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Legislation Introduced to Enhance HSA Benefits

penny — Wed, 01 Jun 2011 15:51:45 +0000

Senator Orrin Hatch and Congressman Erik Paulsen have introduced legislation to provide additional benefits for Health Savings Accounts. Some of the proposed provisions include removing the restriction on using HSA funds for over-the-counter drugs, allowing spouses to contribute catch-up funds to the same HSA, allow rollovers from FSA’s to HSA’s, and adding wellness expenses to the list of eligible HSA expenses.

More information

Senate Passes Bill to Repeal 1099 Reporting Provision

penny — Wed, 06 Apr 2011 16:58:26 +0000

On Tuesday, the Senate voted 87 to 12 to repeal a provision of the Accountable Care Act requiring businesses to issue 1099 forms to all vendors from whom they purchased more than $600 of goods and services during the year.

The House passed a similar bill last month, and the White House has indicated that President Obama supports the repeal.