Carriers Represented

Did you know that I am licensed in almost every state in the U.S., not just Illinois? Depending on the state you live in I represent the following carriers:

BlueCross/BlueShield and or Anthem
UniCare
HumanaOne
Aetna
AARP
UnitedHealthOne
Assurant Health
Cigna
Pacificare

I personally consult with you for free, this is a no cost service. I help you find the best plan at the most affordable rates. I do all of your research for you! What could be better than that!?

Give me a try, call me today. (630) 652-1067

AARP Health Insurance for 50+

Did you know that AARP now has a health insurance plan for those 50 and older? I am an Authorized to Sell AARP Agent, ask me about how you can get your personalized quote on their health insurance product featuring first dollar coverage for Routine Physicals including Colonoscopies and Flu Shots!

HR Alert -- Federal and Illinois State Minimum Wage

On July 24, 2009, the current Federal Minimum Wage rate of $6.55 per hour will increase to $7.25 per hour.

As a reminder for Illinois employers, the state’s minimum wage increased to $8.00 an hour starting on July 1, 2009. The state minimum wage will also increase by an additional 25 cents on July 1, 2010.

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So What's Really Driving the Increase in Health Insurance Premiums?

I am sure you are all wondering right?

While many people may believe that insurer profits are the driving force behind increasing health insurance premiums, research reveals very different reasons for the high cost of health insurance.

A May 2009 report titled "What's Really Driving the Increase in Health Care Premiums?" addresses the issue. The report, issued by the WellPoint Institute of Health Care Knowledge, compiles research from sources such as PricewaterhouseCoopers, the Robert Wood Johnson Foundation, the Kaiser Family Foundation, The Bureau of Labor Statistics and the Congressional Budget Office.

According to the report the "key drivers" of spiraling U.S. health care costs are:

• Advances in medical technology and subsequent increases in utilization;
• Price inflation for medical services that exceeds inflation in other sectors of the economy;
• Cost-shifting from people who are uninsured and those receiving Medicare and Medicaid to the private sector;
• High cost of regulatory compliance; and
• Patient lifestyles, such as smoking, physical inactivity and obesity.

Citing PricewaterhouseCoopers research from 2008, the report found that only three cents of every health care premium dollar is spent on health insurer profit.

According to the Institute's report, newer medical technologies tend to increase costs because they are generally more expensive than the older technologies they replace. While the availability of more advanced, superior technologies can yield better results for some patients, these technologies and diagnostic tests may be used inappropriately in some situations where existing, older technologies are more effective and accurate.

A copy of the full report is available by clicking on the link below.

http://www.wellpoint.com/pdf/Premium%20Cost%20Drivers.pdf

IRS Releases 2010 Adjusted HSA Amounts

Eligible individuals with self-only coverage under a high-deductible health plan (HDHP) may contribute an annual maximum of $3,050 to their Health Savings Account (HSA) for 2010. Eligible individuals with family coverage (coverage for two or more individuals) under an HDHP may contribute up to $6,150 to their HSA. Individuals age 55 or older who are not enrolled in Medicare may contribute more to the account per year.

To be considered qualified for an HSA, the HDHP must meet certain IRS regulations. For 2010, to qualify as an HDHP.

• The minimum deductible amount must be $1,200 for self-only coverage and $2,400 for family coverage; increased from 2009 requirements.
• The out-of-pocket maximum must be no higher than $5,950 for individual or $11,900 for family coverage; increased from 2009 requirements.
• The HDHP must be set up with a combined medical/pharmacy deductible. This deductible must apply to the out-of-pocket maximum; no change from 2009 requirements.
• All medical and pharmacy services must be subject to deductible and out-of-pocket maximum except for preventative services.

For more information and to obtain a quote on a Health Savings Account Compatible Plan, please contact me!

Illinois Insurance Update

Effective June 1, 2009, all individual and group health insurance and HMO contracts (including dental and vision) that offer dependent coverage must follow a new Illinois law which gives a person with an insurance policy that covers dependents the right to elect coverage for qualifying dependents (even if they are not full-time students) who are not married up to age 26 or up to age 30 for unmarried military veteran dependents who are Illinois residents. This will take effect for new insurance policies issued on or after June 1, 2009. For example, for a plan with a January 1 open enrollment date, this new law will first take effect beginning January 1, 2010. The new law does not require employers to pay the cost of the dependent coverage or to provide dependent coverage if not previously provided.

An unmarried individual who meets the age requirements above can be eligible for dependent coverage under this new law even if that person cannot be claimed as a dependent on the employee's income tax return. However, if the dependent does not meet the IRS definition of a dependent under IRC Section 152, the employee will need to be taxed on the fair market value of the portion of the insurance premiums related to that individual that are paid by the employer. Employers need to verify at the time of enrollment that tax-free health coverage is appropriate and that only tax free treatment provided to the employee includes spouses and dependents as defined under IRC Section 152. The taxation of the imputed income related to these premiums protects the tax free treatment of the reimbursements received under the plan.

Currently, the IRS has not offered an formal guidance on the calculation of the fair market value, other than the information offered in PLR 200339001 and PLR 9603011 which references the treatment of coverage for Domestic rule would be to follow a reasonable method for calculating the fair market value using an actuarial computation that could be done by your insurance provider or using the greater of the increase in incremental cost of coverage or COBRA premiums for self-only coverage.

If you have questions about this new law and how it will work for your particular situation, we recommend that you contact your carrier directly for clarification on the matter as it pertains to your situation and their policies.

Information was received via Sikich LLP, Certified Public Accountants and Advisors