How Likely Is Prescription Drug Price Reform?

Healthcare costs have skyrocketed and experts say the cost of prescription drugs is one of the culprits. Particularly troubling is the fact that some drug companies have increased prices of some medications for no obvious reason.

After Turing Pharmaceuticals acquired Daraprim, a drug used by AIDS and transplant patients, the company immediately increased the cost 5,456 percent from $13.50 to $750 a pill. Continue reading “How Likely Is Prescription Drug Price Reform?”

What Republican Changes to the ACA Mean to YOU

Many Republicans believe that, even though the new plan is more oriented to the free market, it doesn’t go far enough to fix the ACA’s problems. While Democrats are concerned that millions of Americans will lose access to healthcare coverage.

The ACA was implemented in 2010 to increase access to healthcare coverage for all Americans. Key provisions included:

  • Implementing market reforms
  • Establishing health insurance marketplaces
  • Expanding Medicaid eligibility for low-income adults

To meet those goals, the federal government mandated that:

  • All individuals must purchase insurance or pay a fine
  • Insurers offering health coverage must include 10 essential benefits
  • Large employers must provide health insurance to full-time workers

Continue reading “What Republican Changes to the ACA Mean to YOU”

Is Your ACA Health Plan Ready for 2017?

Affordable Care Act compliance, along with benefits cost management and employee wellness programs, are emerging as the top issues affecting small business health plans.

As 2017 approaches, small businesses should reevaluate their employee health insurance needs and what they need to do to comply with new health insurance laws.

Although businesses with fewer than 50 full-time equivalent employees do not have to provide health insurance for their employees, they must comply with the ACA’s reporting requirements. All businesses with employees must:

 

  • Withhold and report an additional 0.9 percent on employee wages or compensation that exceed $200,000.
  • Report the value of health insurance coverage you provided to each employee on his or her Form W-2.
  • File an annual return reporting certain information for each employee covered under a self-insured health plan.

In an effort to help small businesses comply with the Affordable Care Act, a new study by HUB International explored ACA compliance, along with benefits cost management and employee wellness, by surveying over 400 senior-level human resources and finance executives at companies with 50 to 1,000 employees.

“HR leaders are operating in an era of unprecedented disruption brought on by ACA, rising health care costs and the increasing demands of a multi-generational workforce,” wrote the authors of the HUB International report titled, “Employee Benefits Barometer: SMB Perspectives and Priorities in an Era of Disruption.”

Era of Disruption

The survey found nearly two in three business owners employing between 50 and 99 people are concerned about remaining in compliance with the ACA regulations. Other findings included:

 

  • 69 percent of employers plan to change their benefit plan structure and/or operations to avoid ACA reporting fines and penalties.
  • 61 percent expect IRS fines for ACA reporting to be negligible to their bottom line in 2016.
  • 60 percent believe ACA reporting is primarily an HR issue.
  • 64 percent have optimized design and operations strategies to eliminate the fines/penalties, but will struggle to stay in business.
  • 54 percent say ACA reporting is primarily a finance issue.

 

As this survey shows, employers perceive themselves to be on top of ACA reporting issues, but nearly two-thirds say that their businesses will struggle to stay afloat despite efforts to optimize plan designs and operations—an indication that employers are exhausted by ACA compliance, the authors of the HUB International report wrote.

“Due to the potential audit implications of ACA reporting, organizations need to be able to defend and manage the decisions they made and reported on,” the authors noted.

In the survey, employers did not rate ACA reporting as their top concern, but because the survey took place prior to completing year-one reporting deadlines, “it may be an indication that employers don’t know where they are most vulnerable,” the authors wrote.

“Most responders ranked cost management and health and performance issues as bigger priorities over ACA reporting,” the authors wrote. “This may be an indication that employers have under-estimated the complexity of ACA reporting.

“Just over half of HR leaders (57 percent) cited accuracy in calculating and reporting the affordability of benefits as their top concern for ACA compliance. While 55 percent of mid-sized and 56 percent of the largest middle market companies ranked this as their top concern, it was especially an issue among the smallest players (66 percent). Close behind, at 53 percent, were concerns over how employee subsidy eligibility and employer liability are tracked and reported.”

Wellness and Productivity Are Top Priorities

Meanwhile, the survey also found that employee wellness and productivity are top priorities, and two-thirds of respondents are seeing a return on investments in their programs, specifically in improved employee productivity and morale. When asked to identify their top benefits priorities, HR respondents ranked improving employee wellness and productivity (83 percent) and managing benefit costs (76 percent) as top priorities.

The report found that employers who are implementing wellness programs are reporting improvements in employee productivity and morale.

“Middle market employers are starting to put more effort in longer term benefits initiatives that support the connection between healthy employees and business performance,” the authors wrote. “These programs are the cornerstone of a long-term benefit strategy that supports a healthier and more engaged workforce.

“There’s a reason health and performance initiatives have gained traction among middle market benefits decision-makers. These strategies are delivering a return on investment, according to 66 percent of respondents. How has it been evidenced? More than a third of respondents cite improved productivity (35 percent) and morale (34 percent). This is especially true among the larger firms, at 40 percent and 38 percent respectively.”

Employers are reaping the benefits of their cost-cutting initiatives, but there appears to be many missed opportunities to deploy proven cost management strategies, the authors wrote.

“Are their efforts paying off? Sixty-five percent agree that they are doing all they can to contain rising benefit costs,” the authors wrote. “Seventy percent note that their strategies are successfully reining in costs. In fact, a significant percentage of the HR respondents indicated they have revamped their plan designs to reduce costs. Leading that change, 51 percent have implemented voluntary benefits for the first time as part of their cost savings strategy.”

For more information on complying with the Affordable Care Act, controlling your costs or adding voluntary benefits to your organization’s offerings, please contact us.

Are You Choosing the Right Health Insurance?

It’s time to start thinking about your health insurance needs again!

The Affordable Care Act requires all U.S. citizens (with certain narrow exceptions) to have health insurance or pay a fine. If you don’t have coverage through an employer-sponsored plan or a government program such as Medicare or Medicaid, you can buy coverage for 2017 during the annual open enrollment period from now through Jan. 31, 2017.

You have choices and it might be tempting to just choose the least expensive plan. There are, however, other considerations you should take into account.

Individuals can purchase health insurance from the Marketplace Exchange created by the Affordable Care Act, a private exchange or a private health insurer.

Where to Buy Coverage?

The types of plans available to you and the price you pay may depend on where you purchase your coverage. If you might qualify for a subsidy, you’ll want to shop on the Marketplace Exchange. You can only receive a subsidy by shopping the Exchange, however, you may be able to find insurance that’s less expensive even without the subsidy.

To shop on the Exchange, go to Healthcare.gov and enter your ZIP code. You’ll be sent to your state’s exchange if it has one. If not, you’ll use the federal website. You can also contact our office—as licensed insurance professionals, we can help understand the various types of plans and costs involved, and help you secure coverage. Insurers pay us for our services, which cost you nothing extra.

When you buy coverage through the Exchange, you will pay a monthly premium to your insurance company. You also pay out-of-pocket costs, including meeting the deductible required by the plan you chose.

Plans on the exchange are divided into four “metal categories” — Bronze, Silver, Gold and Platinum. Plan categories have nothing to do with quality of care; they simply indicate the coverage levels. You’ll pay the lowest premiums for a Bronze plan, but when you have a claim, the Bronze plan will require you to pay more out-of-pocket for covered health services.

Compare Insurance Plans

You’ll get the most information about a plan from the summary of benefits. One of your first steps should be to look at your family’s past medical history to determine the level of care you’ll need in the future. Do some family members suffer regularly from severe allergies? Does someone in your family have diabetes or do you know of an upcoming surgery? Any indication that you’re going to need regular access to a doctor is a good sign that you should consider plans that cost more now but will cover more of your medical costs later.

Every plan also has its own level of out-of-pocket costs, which are the costs you will pay after the insurance company pays its portion. Each plan also will have its own deductible — the amount you have to spend on out-of-pocket medical expenses before your insurance pays.

There are four types of insurance plans. Whether you buy coverage on or off the Exchange, you’ll encounter these same basic types of plans. The one you choose will help determine your out-of-pocket costs and the doctors you can see.

 

  • Health Maintenance Organization (HMO): Lower out-of-pocket costs and access to a primary doctor; focuses on integrated care — particularly prevention and wellness; you must seek care from a provider who is in the network, except for emergencies.
  • Preferred Provider Organization (PPO): You don’t have to stay in network and use the doctors and hospitals that are in the PPO network, but care will be less expensive if you do; you don’t need referrals for care.
  • Point of Service Plan (POS): In-network care is less expensive, but you have to get a referral from a primary doctor to see a specialist.
  • Exclusive Provider Organization (EPO): Lower-out-of pocket costs; you have to stay in network except for emergencies; you don’t need referrals for care.

 

You can also buy coverage through a private exchange or private insurer, which will provide insurance coverage for a premium. If you don’t qualify for a subsidy (and even if you do), you might find coverage more affordable through a private insurer.

The Importance of Networks

If you have established relations with certain doctors or healthcare providers, you’ll want to check the plan’s list of approved healthcare providers. Is your doctor included? Plans that feature a network usually offer lower costs because the insurance company has signed an agreement with certain providers to provide lower rates. Your insurance provider will provide a list of doctors who have been approved for the plan.

Something else to consider: Do you like going to see your doctor for a referral before scheduling a procedure or visiting a specialist? This is something an HMO or POS will require. Some people don’t mind and like the idea that their doctor’s staff will coordinate the visit and send their medical records to the specialist.

We can help you evaluate your options—please contact us for more information.

Do you qualify for a subsidy? Health insurance subsidies—which are actually premium tax credits—help eligible individuals and families with low or moderate income afford health insurance purchased through a Health Insurance Marketplace. To get this credit, you must have an income no more than the federal poverty level and file a tax return.

The poverty level varies with your location and family size. Healthcare.gov offers an easy-to-use tool that lets you see whether you are eligible.

TeleMedicine: There’s An App For That!

TeleMedicine has the potential to shave $4.28 billion annually from America’s healthcare bill. But there are still more reasons to look for a plan that covers TeleMedicine services.

What Is Telemedicine?

As the name implies, TeleMedicine encompasses any medical activity involving distance. Today TeleMedicine uses electronic information and telecommunications, but the practice goes back to the days when sea captains would use ship-to-shore radio to obtain medical advice. TeleMedicine includes such technologies as telephones, teleconferencing, electronic mail systems, and remote patient monitoring devices, which collect and transmit patient data for monitoring and interpretation. Continue reading “TeleMedicine: There’s An App For That!”

Republicans’ Alternative to Obamacare

Six years after the Democrat-supported Patient Protection and Affordable Care Act was signed into law, Republicans submitted their recommendations for changing the law.

 

Democrats wrote the law, commonly known as Obamacare, to expand health insurance and benefits to individuals and reduce health care costs. The law mandated that all Americans have health insurance and that large employers provide coverage. It imposed regulations on insurance companies, expanded Medicaid and opened Marketplaces where individuals could buy coverage, often at a subsidized cost.

Since its implementation, more Americans reportedly have health insurance, but critics say that health insurance costs rose, coverage choices are fewer, and employers and healthcare providers have more rules and regulations to follow.

Republicans in the U.S. House of Representatives formed the House Republican Task Force on Health Care Reform. Their 37-page proposal, which they released in June, is not a law, but a template for a future law. Continue reading “Republicans’ Alternative to Obamacare”

Transgender Employees: The Latest Discrimination Frontier

With the rights of same-sex couples to marry protected by federal law, transgender rights have become the latest frontier in nondiscrimination law. What laws pertain to transgender employees in the workplace, and what happens to employers that violate them?

The Transgender Law Center estimates that between 2 and 5 percent of the population is transgender, although little verifiable data exist. Title VII of the Civil Rights Act of 1964, Continue reading “Transgender Employees: The Latest Discrimination Frontier”

Should You Buy Rental Car Coverage?

Travel Insurance

If your vacation plans require a rental car, knowing what your existing insurance policies cover could save you money.

 

The next time you rent a car and the agent asks whether you want the optional coverages, should you say yes or no? Buying them will add substantially to your car rental costs—if you buy all the additional coverages offered, you’ll add at least $18 to the rental charges per day. Are these coverages worth it? Read on for more information.

CDW or LDW

The collision damage waiver (CDW) or loss damage waiver (LDW) cost the most of any of the optional coverages, about $10-$25 a day. Although the CDW and LDW are not insurance, they will waive your financial responsibility if a car you rent is damaged or stolen.

When you sign a rental car agreement, you agree to become responsible for any damage to the car. Continue reading “Should You Buy Rental Car Coverage?”

Why Prescription Drugs Cost So Much

…and what you can do about it.

 

Prescription drug costs rose by 12.6 percent in 2014 and by 10 percent in 2015 — well beyond the U.S. inflation rate. And in some extreme cases, specialty drug costs increased more than 5,000 percent. What can employers do to control these soaring costs?

Continue reading “Why Prescription Drugs Cost So Much”