It is time now to revisit the decisions of the past in light of a few recent developments.  Within the new healthcare reform legislation there is a tax credit available to help small businesses and small tax-exempt organizations afford the cost of covering their employees.  It is targeted at those with low- to moderate-income workers.  The credit was created to encourage small employers to offer health insurance coverage for the very first time or to maintain the coverage they already have.  Many small businesses are currently looking to adopt a group health plan with this new tax advantage.

Who is eligible?

An employer must cover at least 50 percent of the cost of health care coverage for some of its workers based upon the single rate.

The business must have less than the equivalent of 25 full-time workers (i.e., an employer with fewer than 50 half-time workers may be eligible).

The average annual wages of all employees must be below $50,000.

How much credit can you anticipate?

The credit is worth up to 35 percent of an employers premium costs in 2010.  On January 1, 2014, this rate will increase to 50 percent (35 percent for tax-exempt employers).

It gradually phases out for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of 10 to 25 full-time workers. 

Is setting up a group health insurance arrangement right for you and your business? 

Call us at (860) 643-2500.  We’d be happy to dig into the finer details of your situation to see if the new tax credit would benefit you and your company.

Anthem Blue Cross/Blue Shield

Assurant

Celtic

Cigna

Connecticare – Please call (860) 643-2500 to quote and apply.

International Medical Group

Petersen International Underwriters – International Major Medical  USAway International Major Medical  High Limit Accident

United Healthcare/Golden Rule

Need assistance finding affordable health insurance coverage?  Call or write us today…

Mark Barkasy

“Mission control for your vision…”

2010 - There will be a $250 rebate provided to beneficiaries who reach the Part D coverage gap (also known as the donut hole). 

For those of you lucky enough never to have reached the donut hole, if your total drug costs exceed $2,830 in a calendar year, you must pay the full cost of your prescription drugs until your total out-of-pocket expenses reach $4,550.   This annual out-of-pocket spending amount includes your yearly deductible (if you have one) and your copays.  When you spend more than $4,550 out-of-pocket, the coverage gap ends and your drug plan will pay most of the costs of your covered drugs for the remainder of the year.  At this point you are responsible for a copay of $2.50 for each generic drug and $6.30 for other drugs (or 5%, whichever is higher).  This is known as catastrophic coverage.

2011 - Phased in federal subsidies for generic drugs in the Medicare Part D coverage gap will begin (reducing coinsurance from 100 percent in 2010 to 25 percent by 2020).   Also, pharmaceutical manufacturers will be required to provide a 50 percent discount on brand-name prescriptions filled in the coverage gap (reducing coinsurance from 100 percent in 2010 to 50 percent in 2011).

2013 - Phased in federal subsidies for brand-name drugs in the Part D coverage gap will begin (reducing coinsurance from 100 percent in 2010 to 25 percent in 2020, in addition to the 50 percent manufacturer brand discount).

2014 – Finally, the out-of-pocket amount that qualifies for Part D catastrophic coverage will be reduced (through 2019).

This is very good news for all those who will end up reaching the Medicare Part D donut hole over the next several years.  That’s assuming the legislation does not get changed over time.

A U.K. study of 3,325 people here in the United States ages 65 and older suggests that the risk of cognitive impairment was 42 percent higher in those who were vitamin D deficient and 394 percent higher in those with a severe vitamin D deficiency.

Does exercise and vitamin D eliminate the risk of developing Alzheimer’s or dementia?  No. 

Should we be exercising more and taking vitamins regularly?  It can’t hurt…

Source: HealthDay News, Sunday, July 11th