Chamber Gets Health Coverage Update

BURLEIGH – They talked affordable health care over lunch, Feb. 21 at Wildwood Golf and Country Club. Over sandwiches and salads, five local insurance agents attempted to explain how small businesses would be impacted by the “Affordable Healthcare Act.”
Valiant though the effort was for members of Cape May County Chamber of Commerce, there were as many questions raised as answered to the best of those agents’ abilities.
Joining to enlighten the merchants was: Stephen Sanborne, Thomas H. Heist Insurance Agency, Mark Senior, Marsh and McLennan Associates, Aaron Katzoff, Bollinger Insurance Solutions, John Armand, MetLife, and Gina Salvat, J. Byrne Agency.
As chamber President Vicki Clark told members prior to the presentation, “More than two years ago, when the affordable healthcare act was passed, we said, ‘What will we do?’ Then there was a Supreme Court challenger. We said we would wait and see if anything happens. The Supreme Court approved the legality of the Affordable Healthcare Act, and then we said we would wait and see what happened in the presidential election.”
Clark said it is the chamber’s aim to inform members “how to handle new things.”
While the act is voluminous, businesses with fewer than 50 employees are not forced to provide healthcare. The “game” changes when there are 51 employees on the payroll.
There are no penalties for those small businesses not providing coverage.
“It is a non-issue,” said Senior. He cautioned owners to be mindful to determine that 50 employee total when bringing on part-time, seasonal workers.
Also, for larger employers, as an example, those with 70 employees, if the company does not provide health coverage, the owner could pay the penalty of $140,000 ($2,000 per employee) for the government to provide coverage.
Private coverage for that same group on the open market could cost $300,000 to $600,000.
How did the nation get into such a predicament?
According to the presentation, some contributing factors include declining health of the population; people living longer; increasing cost of prescriptions and demand for them; demand for high cost technology and services; and little knowledge of the associated costs.
Coming this year regarding coverage:
Notice of availability of health insurance exchanges must be given to employees by early this fall.
Employees who earn over $200,000 will have an additional 0.9 percent Medicare tax withheld above the limit.
A new 3.38 percent Medicare contribution on unearned income for individuals making $200,000 and couples making $250,000.
New FSA contribution limits:
Deduction for medical expenses on Schedule A will be reduced (was 7 percent now is 10 percent of adjusted gross income).
Some of the changes on the horizon for 2014 regarding healthcare:
Pre-existing restrictions removed for everyone.
New employee waiting period is maximum 90 days. Insurance exchanges are open for business.
Individual mandate become effective.
Penalties for businesses with over 50 full-time equivalent employees will be imposed for non-compliance.
Also in 2014, limit for out of pocket will be $6,250 for single and $12,500 for a family.
Limit deductibles to $2,000 for single and $4,000 family.
As the focus on healthcare increases, so will the benefits of wellness programs. A statistic provided to the membership was that for every dollar invested in a company’s wellness program, three dollars are saved in benefits paid.
As employees are made more aware of wellness in relation to their lifestyles, medical costs may decline.
If a person loses weight and exercises more, it is possible they might reduce their need for diabetes-related medication or other treatments.