You are correct, Ray. However, I didn't understand how AllenChicago felt that this was affecting his life, disability and CI sales, when the HRA applied to medical insurance.
What is the Employer Fine if
- Thread starter SamIam
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You are correct, Ray. However, I didn't understand how AllenChicago felt that this was affecting his life, disability and CI sales, when the HRA applied to medical insurance.
Notice 2015-17 allows for transitional relief until 6/30/2015. It applies to; small groups (as defined by ACA), S-Corps for 2% shareholders/employees, Medicare prem reimbursement, and Tricare. There is no mention of HRA. It is possible that the relief could be extended, but won’t know for a while.
My mistake, I misinterpreted.
I think Allen was referring to also losing those lines with clients in this new environment. Now that they don't offer health, why offer the other stuff? If the employer is not paying for health, why would employees choose to pay for health and ancillary all on their own dime?
Ah, understood. I think you're right about what Allen was saying.
- 8,448
That's exactly what I was saying, Ray. Even though these are 3 small employers, each of them received the same advice from their accounting firm, which is.. To simplify tracking and to stay perfectly legal, stop paying all premiums (health, life, etc..) and give the employees a pay raise to pay their own premiums.
So far, they're paying their own Major Medical premiums, but about half of the ancillaries are behind, or out-right cancelled already. These are $35,000 to $50,000 shop workers (mostly from Mexico) who just received an average $550 a month raise this past December. Owners don't care, so I'm just letting things fall where they may. No desire to be their nanny. Been there, done that as a (younger) captive agent at Prudential.
Allen off in my wheel house
- 8,448
Don't you think our brothers and sisters from Mexico should earn a living wage, Taterstud?
what the heck do you call 35000-50000 a year?.... I know some insurance agents that don't make that but they put on their nice clothes and go to all thes networking meetings and trade association get togethers.
Kinda like this website for cruises I am looking at, they say just become a review critic and you can get a free or discounted cruise... no thanks, I choose not to be an armchair cruise critic...... also choose not to be an armchair agent
another point, BCBS uses this company to call all their clients... RSA medical, they are staffed with doctors and nurses... so let me get this straight, a doctor is going to sit and make calls to policy holders explaining benefits and gathering medical info?.... I thought you were a doctor... go doc stuff
RSA called me 3 times today You "must" return our calls.
Its all about claims history. They ask for a list of all your meds. And since BCBS uses RX history only for actuarial tables....
They ARE staffed with docs and nurses. They just forgot to mention that cust service reps are making the calls...
Ouch. I hate to see the loss of insurance sales just because the flow of funds changed. However, the accounting firms were actually wise in their advice.
When NAHU communicated this most recent IRS delay in the penalty for illegal use of HRAs, NAHU said that their feeling was that using these tax-favored vehicles for payment of Individual/Family plan premiums was illegal long before PPACA. I agree. Long before PPACA, we debated the non-discrimination issues, and ERISA issues that arise from turning Individual and Family policies into an Employer-Funded benefit when the Employer pays the premium. It's a touchy area.
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Okay, please elaborate. This seems like a hot button. So, a third party staffed with Medical Professionals is calling all BCBSTX clients, asking for/demanding private medical disclosure that isn't allowed to be on the application, so that they can make actuarial assumptions about claims risk and future premiums? Reeeeeeeeally?
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