One Source of Funding for ACA (Obama Care)

Much of the funding for the Affordable Care Act comes from sources that are currently being used to fund other medical expenses.  The current board working on implementation of the ACA  has begun to try and move the money from one program to the ACA.  This is not a simple task as reported in the Washington Post on November 18, 2012.  The board must figure out how to transfer some $36 billion from a fund that pays hospitals that accept uninsured patients to the Medicaid and subsidised portions of the state exchange program.  The $36 billion would have been distributed to hospitals between 2014 and 2019. 

This is not simple for the fact the board must figure out who will still receive funds and who will be cut first.  Remember the penalties for not obtaining insurance are very small the first few years and the law does nothing to address illegal immigration, so hospitals will still be faced with people coming threw their doors with no ability to pay.  We will see how this affects our local hospitals. 

If you have any questions on this information or would like to get more information on health insurance or life insurance please contact Lisa Boyajian or Angela Gambino at (714)680-5900 or find us on the web at www.ansainsuranceservices.com .

Medical Devise Excise Tax

In an article from the Washington Post (November 18, 2012) by Jordan Raw it was reported that begining January 2013 the Medical Devise Excise Tax will kick in.  It is a 2.3% tax on all medical devises.  But there are still many unresolved issues that need to be addressed.  The first and biggest issue is what gets taxed and how that tax is applied and collected.  An example of what is in front of the board working on the ACA would be latex gloves.  At what point  does the tax get applied.  Is it from the first sale - manufacturer to wholesaler?  Or is it from the point of last sale - a person purchases a box from Rite Aid.  Another example would be taxes on kits that doctors and hospitals use.  Would those kits be taxed on the parts purchased for the kits or at the point of sale?  In addition to those questions the board needs to figure out who gets taxed for instruments that have uses outside of the medical profession.  Do veterinarians and dentist get taxed on medical devises that doctors use.  That was not the intent of the law, but how do you enforce it? 

In other news, if you are a business looking at carrier options in Southern California Kaiser Permanete is offering a special on locked in rates for 15 months.  If you would like more information on that or any other health or life related issues you can reach Lisa Boyajian or Angela Gambino at (714)680-5900 or find us on the web at www.ansainsuranceservices.com .

Premium Tax

What is a Premium Tax?  It currently does not exist, but it is possible that it is only a short distance down the road.  Basically, a premium tax is a sales tax on health care paid by employers and individuals buying health insurance.  It was written in the health care law as a way of keeping down costs for Medicaid (or MediCal for those in California).  How would it work?  Everyone that buys health insurance from a source other than Medicaid or MediCal would pay a tax on the cost of their premiums.  This revenue would then be used to offset the cost of Medicaid and MediCal. 

Will it be implemented?  That depends.  Right now there is a huge push to keep premiums down, but there are more factors and stresses pushing those premiums up then ever before.  Congress would be crazy to implement this tax now, when in affect, the tax would be an additional cost on those premiums. Is Congress crazy?  We will just have to wait and see.  But when we find out we will share it with you.

Employer Mandate

Much has been made of the "Employer Mandate" in the Affordable Care Act, but few details have been available for employers to see.  In a nut shell, and leaving out many of the individual nuances, the Mandate goes as follows:

1. Starts January 1, 2014
2. Pertains to Employer with over 50 or more Full-Time Equivalent Employees (How an employer figures out what "equivalent" means is best left up to your tax advisers and accountants - there is a complicated formula to follow and many different rules to be sure you are considering.)
3. Employers with over 50 Employees must offer plans that meet the minimum essential coverage rule.
4. Employers with over 50 Employees must be sure that the cost of these plans does not  exceed 9.5% of what the lowest wage earners earn in a year.

What happens if an employer with over 50 employees does not offer minimal essential benefits at an affordable price?  Well it depends.  If no employee elects to get coverage through the exchange and receive premium tax credit than no penalty will be accessed on the employer.  But if an employee joins the exchange and gets premium assistance the penalty can be either $2,000 or $3,000 per employee of that company.  There are nuances to these rules and we will address these nuances in future blogs.

The burden of these new rules fall squarely on the employer, but know that the carriers are doing their best to educate their clients.  Your broker should be keeping up on these rules as well.  If you do not have a working relationship with your broker you need to get one.

Lisa Boyajian and Angela Gambino work with all the major carriers (Aetna, Anthem B.C., Blue Shield, Cigna, HealthNet, Kaiser, United Health, CalChoice and SeaChange).  If you would like to get more information or reach us you can call us at (714)680-5900 or find us on the web at www.ansainsuranceservices.com .

"Covered California"

Today California's Exchange Board will be meeting to vote on submitting an establishment grant to the Federal Government.  This board has already moved California to the forefront of State Exchanges in the U.S. and it is looking as if it may be one of only a few that are set up and running by the goal date of January 1, 2014.  The Exchange in California will be known as "Covered California".   At this same meeting they will be busy  working on setting regulations for "qualified" health plans.  We should know quite soon what to expect out of such "qualified health plans" and who already meets that criteria to be considered as having a "qualified" health plan.

In addition to the Exchange Board meeting Governor Brown has requested that the State Legislature meet back early to discuss health care in the state.  No dates have been set, but it is looking as if the normal month off in December will be drastically cut short.  There are many agenda items that need to be moved forward now that the election is over and the Affordable Care Act will stand as is.

What we know now is that for those already covered under most carriers in California (Anthem Blue Cross, Blue Shield, Aetna, Kaiser, Cigna, HealthNet and United HealthCare) very little will change.  For those of you on discount plans, you will need to make a substantial change.  Discount plans will in now way be considered "qualified" and thus you will need to move plans or face penalties.  If you have questions about your plan (and it is not from one of the carriers listed above) you can call us and we can help you sort through what you have and find out if you are in good standing. 

You can reach either Lisa Boyajian or Angela Gambino at (714)680-5900 or find us on the web at www.ansainsuranceservices.com .

Medicare and Open Enrollment

It is that time again to talk Medicare Advantage.  October 15th through December 7th is the open enrollment period for Medicare Advantage Plans.  If you are Medicare eligible (or know someone that is) this is your opportunity to find out more.  In Orange and Los Angeles Counties most Medicare Advantage Plans have a $0 premium and include $0 office visits and many more additional benefits at no cost or a very low cost.  Medicare Advantage Plans are not for everyone.  If you reside in multiple locations or want freedom to chose any Medicare Accepting physician than you will probably wish to stay on a standard Medicare Supplement.  The only way to find out for sure is to schedule an appointment with an authorized agent to go over your situation.  Of course Ansa Insurance Services is authorized to offer Medicare Supplemental and Advantage plans. 

If you receive your health insurance through a group plan and your renewal is this January you should have or should very soon, be receiving your SBC's.  SBC stands for Summary of Benefits and Coverage.  It is a new standardized way to look at available plans.  Your employer should be making the SBC's available to you and your dependants.  If you are the employer, be sure to get those out.  If you have an individual plan you should be receiving them soon.  I do know for a fact that Kaiser sent out their individual SBC's already. 

If you have questions about SBC's or Medicare please contact us at (714)680-5900 or email me at angela@ansainsuranceservices.com .  You can also get more information about us on the web at www.ansainsuranceservices.com .

"Covered California" is the New Name of Our Exchange

California Exchange - that's the new branded name of our health exchange here in California.  It was chosen from a field of other submitted names and run by a focus group to find the name that would best suit the exchange in California.  Those same oofficials are expected to pick which insurers, of the nearly 30 that are applying,  that will ultimately be a part of the exchange.  Kaiser, Anthem, Blue Shield and HealthNet are a few of those that officials will be looking at.  Some others that are applying are small companies and hospital groups that are looking to be regional players in the exchange.  As we find out more we will continue to update you.

Today is Election Day.  Did you vote?  Polls are open till 8:00 pm so be sure to do your civic duty and vote.  When you vote be an informed voter.  Look into the candidates and the measures and propositions to be sure you truly know what you are voting for.  There is nothing worse than finding out after the fact that your "yes" vote for a proposition meant no or the other way, you voted "no" and by voting "no" it meant that the act you thought you were stopping was now going to happen.  Be informed, be informed, be informed.

If you would like to get information on health insurance or life insurance be sure to call us at (888)800-5855 or find us on the web www.ansainsuranceservices.com .

Almost Election Day

November 6th is almost upon us.  For those of you that are voting with absentee ballots be sure to have them mailed off by this weekend.  If you are planning on voting at the polls, be sure to spend a few hours looking over your propositions and local issues before you enter the booth.  By now it is safe to say that we all (except for a tiny few) have made up our minds on the big issues and the presidential race.  But the local issues and candidates often get put off until the last minute.  Now is the time to research those issues and people.  It is our civic duty - not just to vote but to be informed voters. 

The election could quite possibly bring changes to this industry, either directly or indirectly.  As we find out what these implications are we will share them with you.  The health  carriers (Aetna, Cigna, Kaiser, Anthem, Blue Shield, and Health Net - just to name a few) have been looking at the many possibilities that are ahead of us.  As they communicate their changes we will add them to this blog.  If you have any other questions regarding health insurance or life insurance please do not hesitate to call us at (714)680-5900 or email us at info@ansainsuranceservices.com .  As always, you can find us on the web at www.ansainsuranceservices.com .  REMEMBER TO BE AN INFORMED VOTER AND GO VOTE!