HEALTH INSURANCE

June 14, 2011

Great News for Small Employers!! Click on this link to learn beneficial new information regarding IRS W-2 Reporting of the cost of health care: HaynesBenefits

June 6, 2011

Be sure to check our new Health Savings Accounts page, by clicking here.

JANUARY 3, 2011

Are you required to complete the W-2’s for your business?  This isn’t really ‘Health’ related…other than this time of year completing W-2’s makes my blood pressure rise! J However, here is a VERY helpful web-site:  www.socialsecurity.gov/employer

December 28, 2010

December 29, 2010:  Employers – Remember, in 2011 you can report how much you spend on group health coverage for each employee!

IRS has added a W-2 group health spending options – click here to read an article that provides more details:  www.lifeandhealthinsurancenews.com/News/2010/10/Pages/IRS-Adds-W2-Group-Health-Spending-Option.aspx

October 27, 2010

I conclude my segment on Health Savings Accounts with this HSA FACT SHEET. It provides some of the advantages of HSA's and reviews much of the information discussed the past several days.

Beginning tomorrow I’ll have some updates that will interest you regarding health insurance changes that have already taken affect as a result of the new health reform laws.

October 26, 2010

Another Great Question we received on Health Savings Accounts!

Question:  Can I withdraw money from my HSA for non-medical purposes?

Answer:  Yes (answered hesitantly), but there will be a 20% penalty tax for that withdrawal.

In fact, it is actually a little worse than that:

You will not only have a 20% penalty, but you will also owe taxes on the money withdrawn. This 20% penalty is an increase from 10% and is effective 1/1/11.

Side-note: this increase is a result of the new health care reform.

October 25, 2010

Questions customers often asked on Health Savings Accounts (cont.):

"Can I pay my health insurance premiums from my HSA?".

Unfortunately, no – except, there are a few of exceptions:

1) Qualified long-term care insurance; or

2) Health insurance while you are receiving federal or state unemployment compensation; or

3) Continuation of coverage plans, like COBRA, required under any federal law; or

4) Health insurance after you turn 65, but not Medicare supplement insurance

If any of the above categories apply to you, that is one more reason you could benefit from setting up an HSA.

October 22, 2010

Setting up an HSA – Part II

Yesterday we reviewed qualified HSA medical plans, today we’ll discuss ‘qualified medical expenses’ within HSA medical plans.

What are qualified medical expenses?

A qualified medical expense is one for medical care as defined by Internal Revenue Code Section 213(d). The expenses must be primarily to alleviate or prevent a physical or mental defect or illness, including dental and vision. Most expenses for medical care will fall under IRC Section 213(d).

However, some expenses do not qualify.

A few examples are:

Surgery for purely cosmetic reasons

Health club dues

Illegal operations or treatment

Maternity clothes

Toothpaste, toiletries, and cosmetics

Beginning 1/1/11, no over the counter medications without a prescription

On Monday we’ll review which opportunities exist for paying health insurance premiums from an HSA.

October 21, 2010

“Can I, and how do I, set up an HSA?"

Today we’ll cover step one of setting up an HSA – Procure a ‘qualified’ high-deductible health insurance policy.

The first question I hear at this stage is, “what does ‘qualified’ mean?

A: An HSA medical plan has to meet certain criteria determined by IRS regulations, such as;

An individual deductible can be no lower than $1200 and can be no higher than $5950.

Prescription drugs are applied to the medical deductible and there is no prescription drug card with co-pays.

Preventive benefits, such as annual exam, colonoscopy, mammogram can be paid by the insurance company without having to meet the deductible.

Just because you have a high deductible policy doesn't mean that it is HSA qualified. If you are unsure, be sure to check with your insurance company for this determination.

Tomorrow, we’ll answer the question: what are qualified medical expenses?

October 20, 2010

Health Savings Accounts (HSA's)!

What are they?

Who can set them up?

Who should set them up?

Are they a viable solution to our ‘health care/insurance cost crisis’?

In the next few days we’ll be answering these questions.

Today though, we’ll answer the first one, “What is a Health Savings Account (HSA)?”

An HSA is a special bank savings account owned by the insured person where contributions can be made that are tax deductible. These contributions are used to pay for current and future medical expenses. You are not taxed on deposits made into these accounts nor the interest they earn as long as withdrawals are for qualified medical expenses. An individual can deposit up to $3050 per year or if you have family members on the insurance policy, you can contribute up to $6,150 per year.

Tomorrow we’ll answer, “Who can set up (and how) an HSA?"

September 9, 2010

Your adult children and health insurance - reform, insurance

Health insurance companies will be required to include children up to the age of 26 on their parent’s policies.

The law goes into effect September 23, 2010. Companies must comply by October 1, 2010.

There are no restrictions. They do not have to be a student, and can even be married (but their spouse or children cannot be on this plan).

Benefit: This helps give our children additional time to secure employment with health insurance benefits.

Drawback: There may be a possible increase in premium.

For more details, email Debbie at debbie@mymontanahealthinsurance.com