In the wake of Empire Blue Cross’s recent major SMB changes the 2 new Crains article below point to the early shake up results.

Tough Decisions on Health Coverage

Insurance Good Luck

Empire’s  Small Group “simplification”  did indeed  cause groups to escape Empire’s rate increases and reduced plan selections.  Additional, not mentioned in the article was that groups are facing plan modifications such as Rx changes switch to % from fixed $ copay and loss of Walgreen/Duane Reades chains.  By being the largest insurer on the block heavy provider negotiations have been de rigieur as evidenced by loss of Westchester Medical Center for 14 months and counting.

Groups have been fortunate to find comparable alternatives despite these changes but we see little public evidence of concern form NYS legislature.  We are not seeing the long term vision to open up markets to strong national insurance competitors.  On the contrary we have deep concerns of allowing  the past 2 non-profits of GHI and HIP merger and latest talks of going for profit.

Lastly, the article makes mention of possible “Health Exchanges” entering the market and lowering rates.   Where is there  evidence  of this decrease?  I’m not seeing why an insurer working in an oligopoly environment with price controls would be motivated to lower rates.  Would Con Ed or Blue Bell lower rates in the 70s because now SMB can shop online??

In a pleasant surprise, Empire will delay their April 2012 decision to “simplify” small group plans 1 more year from April 2012 to April 2013 instead.  The Nov 4th Empire announcement to leave  the NY Small Group Business was truly shocking after being in business for 75 years and insuring 35% of the  market.

What this means for consumers is that insured members will now breath a sigh of relief and keep their contracted plan at least until their renewal. Evidentially, Empire was allowed to abruptly  do a “hard shut down of  their plans”  for April and not allow a group to complete their 12 month contract.  The negative  consequence would have affected many unfairly as most members today have some kind of annual deductible and/or coinsurance on Rx plans, hospitalizations and surgeries.  Example: a member signs up for a plan Oct 1 and has already met their deductible responsibilities would suddenly  have to now change plans on April 2012. and start all over again.

A point needing further explanation is are they or they not exiting?  Empire is stating that they are not in fact leaving but merely simplifying their offering to 6 plans but this is actually a red herring as the plans offered are not market friendly and allows Empire to stay within the market without having to really exit. Example:  Their HMO monthly rate is $675/single when you can get the same plan from a leading competitor for $465/single.

So why be in the market without actually being in the market?  The state’s regulation would not permit an insurer to re-enter for 3 years.  With Health Care Reform changes in the subsequent years there are variables that may help NYS  such as add’l federal funding.  Additionally, it is an election year and with many unknown Health Care Reform variables still evolving such as Supreme Court hearing on individual mandate by June 2012 –  WSJ Supreme Test for Health Law.

Either way this is welcome news to our existing clients and for the marketplace at large however short term it is.

Happy Holidays!!

As per todays Crains article, Empire Blue Cross will be exiting the majority of small group health plans effective April 1, 2012. The news was swirling earlier this week with official Empire communication going out today.

This affects 1/3 of New York Small Businesses as defined by 50 or less FT and eligible employees. Since with large group market the insurer is allowed to rate a group based on true census and make up of a group’s sex, age and family status as well as claims experience of the prior year. In NY State where the small group market is Community rated and independent of census this becomes an important point that I will get back to.

As healthcare has become regulated by MLR(Max Loss ratios) or revenue controls its not surprising that insurers are unhappy but why does it seem that in NYS regulations run deeper than in other states? We are licensed in multiple states and we are not seeing the same pattern this quickly. Numerous companies have already exited such as CIGNA, HealthNet, Horizon, Guardian not to mention M&A of HIP/GHI, Oxford/UnitedHealthcare and Aetna/US Healthcare/NYLCare etc. I can go on.

In NYS the insurance regulations go beyond Health Care Reform (PPACA) with higher MLR than the national one. The Federal level is 80% for small groups and in NYS its 82%

There are new NYS price controls where insurers must anticipate risk a year in advance and ask for larger rate increases to protect on anticipated uncertain risks. With so many unknown variables its almost like asking one to predict who’s going to win the Super Bowl in 2013. Rate increase of 15-20% requests must be higher than usual since after all there are no State protection on the loss side. Furthermore, increases of 10%+ must now require public hearings 60 days prior.

Today, we have so many State mandates that many of the mandates(overage dependents coverage, preventive care, pre-existing for kids) in PPACA didnt even affect NY since they were already in place. Mandates account for approx 17% of the costs of which Small Businesses pay more than fair share. Large corporations and Unions can self insure and avoid some mandates as they are governed by ERISA and not State. To the relief of of our struggling clients on subsidized Healthy NY the State doesn’t play by their own rules and instead opts out of its very own mandates.

So what happened with Empire? The tipping point evidently was rate increase denials of 5 consecutive quarters and that Empire quite frankly got caught with great pricing and products just when healthcare reform came around. Many insurers raised their rates in advance of the law. Emblem (GHI) raised rates 25% on average and even as high as 60% on HSA. Granted they have also removed many plans recently.

Much like in the 70′s its a regulaed oligipoly with insurers too too big to fail. Our clients will have access to only 3 insurer – Aetna, Emblem and Oxford. Just imagine how high your Auto Insurance would cost in the same scenario? This remarkable in a 25 million metropolis like NYC. Insurers do not have to be in NYS, no new carrier is looking to enter the NY market. After 75 years in business and insuring 4 generations of small businesses this should be a shock to the system and a wake up call to every politician.

We ask for greater oversight on Mergers and Acquisition of health insurers,providers and hospitals. Its begining to dawn on everyone that a too big to fail environment is poison and will be the tail that wags the dog. I can only imagine what the other remaining insurers must be thinking whats in store for next year.

Importantly, the community rating ought to be dropped as most states such as NJ, CT are census based. With Health Exchanges coming in 2014 individuals will be able to purchase health insurance on their own which will make Community Rating less relevant. This will be a positive step in allowing great competitors like Humana to enter the market.

If this is not a wake up call for small businesses to have a seat at the table I dont know what is. Anyone in for an Occupy Albany?

As reported by Crains, the Healthy NY program will be undergoing significant cuts. Beginning January 1 2012, the high deductible health plans (HDHP) option will only be offered by Healthy NY.

With rates averaging 30% below market and reasonable benefits such as $20 Office Copays this was an important safety net for NYS Small Businesses.  Since its inception 10 years ago the program has enrolled approx.180,000 members covering small groups, sole proprietors and working individuals.   The program is not Medicaid and allows members to keep their Doctors and enroll in private insurance EPO/HMOs such as Empire Blue Cross, Oxford, Emblem GHI etc.   One of the reasons the program is 30% less expensive is that the state has a pooled stop loss fund that reinsures health care companies.  This fund has been underfunded with rapid growth and stagnant funding the past 3 years.

Currently, the less expensive Healthy NY HIgh Deductible Plan is $1200/single and $2400/family. Outside of preventive care, members must self insure on the entire deductible including Pharmacy.  The good news is that this plan is a qualified HSA (Health Savings Account) and can be reinsured by members.  For healthy members the HSA unspent money is not use it or lose and can be rolled over year to year.

Existing Healthy NY groups can still keep their plans as long as long they qualify. However, Healthy NY only allows 1st of the month effective date with only an 11.1.11 and 12.1.11 still available to prospective new groups looking to lock in the regular Healthy NY.

To view current Healthy Benefits and rates click here.  For  more information or to enroll Contact us today.

“Almost everything–all external expectations, all pride, all fear of embarrassment or failure–these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.”

Steve Jobs
US computer engineer & industrialist (1955 -2011 )

I started on the Mac in HS and College and was forced to wander the corporate dull Microsoft PC Valley until Vista.  The Vista operating system broke our back as a Small Business with endless malfunctions and slowdowns. That monstrosity led me to MAC out our office completely 4 years ago never to look back again. 

His genius is humbling and inspiring.  In a small way we have try to live to our lives by taking chances with love and passion in everything we do.  

He was our modern day DeVinci.

2005 Steve Jobs Stanford Commencement Speech

Twitter- Thank You Steve

Steve Jobs Bio

In another downsizing  move of the Health Care Reform ACT -  Patient Protection and Affordable Care Act (PPACA) the office responsible for the new Long Term Care Act  claus have been reassigned.  This portion of the law is known as CLASS (Community Living  Assistance Services and Supports)  that was intended to make private Long Term Care Ins more affordable and available through the work site.

There are  Long Term Care concerns as less than 10% of the US Consumers carry a LTC policy.  Part of  the disparity is obvious costs and part is the feeling that Public Gov will take care of this.  In order for Medicaid to pay for Nursing Homes though ones assets with some exceptions are liquidated.  The other is not realizing that LTC does cover Home Health Care.

Under the CLASS provision “the Secretary shall designate a benefit plan no later than October 1, 2012.”  However, with this week’s action of “reassigning” 8 members of the CLASS unit go is another step in diminishing the act.  Also, politically before an election year it would of given too much fodder for the Republican Party. To have CLASS succeed, HHS would have to make it affordable, but, because the CLASS Act plan would be a voluntary plan, the plan would could face enormous risk of adverse selection, with only unhealthy workers signing up.  Critics contend that the program managers would have to raise premiums substantially over time to keep the program solvent, and that, over time, the program would fall into a costly deathly spiral. The program has become a favorite target for Republicans.

There may be political winners and losers but sadly who can calculate the amount of time + resources wasted to land back to square 1?

Resources:

http://www.washingtontimes.com/news/2011/sep/22/obama-pulls-back-part-affordable-care-act/

http://blogs.wsj.com/washwire/2011/09/22/long-term-care-program-in-jeopardy/?mod=WSJBlog

Optum Health owned by UnitedHealth Group

Today’s WSJ reports UnitedHealth Buys California Group of 2,300 Doctors may be a signal of future trends in healthcare where there is blurring of the lines between insurers and providers.  The article goes on to to mention that United Healthcare has stated that providers acquired by Optum will not work exclusively with United’s health plan, and will continue to contract with an array of insurers.

The article goes on to state that “the potential complications that might ensue, Monarch is currently in an arrangement with United competitor WellPoint Inc. to create a cooperative “accountable-care organization” aimed at bringing down health-care costs and improving quality.”

In the aftermath of Health Care Reform, insurers profits will be curtailed. New price limitations imposed by  MLR (Maximum Loss ratios) where 85% of large group premiums collected must be spent on healthcare services(claims) and health quality improvement . New state tax surcharges such as New York’s 82% of above MLR applies to small groups.  In fact in NY the cost of doing business is a staggering 16%+ added to the usual corporate tax. See The NYS Surcharge.

 Additionally, the industry as a whole will be paying an annual tax to help pay for PPACA(Patient Protection Affordability Care Act).  This tax rises from $8 billion in 2014 to $14.3 billion in 2018 and in later years, even higher according to a complex index. See Kaiser Bill Summary .

While its unglamorous to defend insurers they are clearly paying their share and like it or not they are good  at health care management.  Unlike foreign HQ tax loop holes taken advantage by companies such as G.E. , an insurer cannot place patent rights in Zug, Switzerland and take advantage.  Each of these taxes is increased regularly by the State and contributes significantly to annual increases in rates.  The competition in the health insurance industry is already at a dangerous low levels.  Negotiating with insurers has become an overwhelming challenge in the large group market.  Hospital groups have merged to mirror this Oligopoly trend and contractual issues are the new normal.  See Empire & Stelllaris Reach pact.

So what to do other than to find profits elsewhere? Many issues and questions will abound as to the antitrust nature of this action.  A similar issue appeared in the 90s Merck-Medco merger between a pharmaceutical and mail order PBM.  The conflict of interest claims will abound, how do you negotiate one provider group owned by United-Healthcare as opposed to one owned by HealthNet? Will insurer share competitive insights with other practices?  Are small independent Dr. Groups completely left out of the loop and feel pressured to be bought out?  Will the insurers medical group have unfair advantage in buying out the smaller physician practice?   Perhaps in the same vein of the Merck-Medco analogy the health insurer shareholders will do well for a decade and then simply split up?

Its all too early to tell but this much is clear, there aint no money in running a health insurance management company today.

Ever Wonder why in a Metropolis of 25 Million there are maybe 5 insurers left?

New York Taxes – As published with the NYS Insurance Dept.

New York adds more insurance taxes than any other state in the country. These consist of both direct taxes and a number of “hidden” taxes amounting to a total of over $4.1 billion in taxes passed on to our customers in the form of higher premiums. These taxes include:

• NYS Premium Tax- this 1.75% tax is on all HMO and insurance contracts and is projected to raise $353 million for the State in 2010. Empire alone pays $103.9 million to the State in premium taxes (this amount includes a special surcharge for customers in the MTA service area).

• Covered Lives Assessment- this “hidden tax” is a charge on all fully and self insured “covered lives” and raises, statewide, projected to raise $1.16 billion for the State in 2010. Empire alone will pay about $296.2 million in covered lives assessments in 2010. The purpose of the Covered Lives Assessment is raise funds for a variety of state programs and for the state Budget. The Assessment is included in claims costs for purposes of calculating the MLR.

• HCRA Surcharge- this is a 9.63% surcharge on all hospital discharges projected to raise $2.33 billion in 2010. Empire alone will pay approximately $379.4 million to the State in HCRA surcharges in 2010. The purpose of the HCRA Surcharge is to raise funds for a variety of state programs and for the state Budget. The Assessment is included in claims costs for purposes of calculating the MLR.NYS Insurance Department “332” Assessment- while this assessment is legitimately intended to fund the cost of the Insurance Department’s regulatory activities there is a “hidden tax” whereby a large portion of the revenue generated by the assessment is used to fund other programs funded not directly related to insurance regulation and is projected to raise $270 million from New York’s health insurers and HMO’s in 2010. Empire will pay the state $57.9 million in 332 assessments for 2010.

Each of these taxes is increased regularly by the State and contributes significantly to annual increases in rates.  The competition in the health insurance industry is already at a dangerous low level.  Negotiating with insurers has become an overwhelming challenge in the large group market.

After balancing the budget and announcing  $2.4 trillion in government spending cuts over ten years, politicians and media pundit are insisting that it is only the beginning of the attack on health care, pensions and other social programs.

So why is balancing the budget and cutting medicare so bad for the Privately Insured? After all, the Democrats have made sure the automatic cuts leave Medicare benefits untouched, and the Republicans have blocked any new taxes.

Everyone is content right? Or so it seems. But the truth is that cutting payments to Medicare providers will mean some Americans are going to pay more. It may not be called a tax, but if you’re covered by private health insurance, money will be coming out of your pocket nonetheless.

Here’s how cuts in Medicare affects the rest: If a hospital provides a service that costs $1,000,000, and the government elects to pay just $980,000, the $20,000 gap doesn’t disappear. The hospital has to cover it somehow. It will likely do so by shifting the costs to commercial insurers, which eventually means higher premiums. This cost shifting is nothing new-it’s been happening for years-but more cuts will just make it worse.

NY Hospitals in particular have felt Federal Funding cuts for teaching hospitals over the last decade.  This has been a contributing factor to St. Vincents declaring bankruptcy last January.  Many surviving hospitals however have the size to negotiate effectively with private insurers to make up that funding short fall.

So guess who makes up that difference?  The fact remains, if you don’t deal with underlying costs, you’re not fixing the problem, you’re just covering it up.

Under Health-Care Reform Insurance Coverage for Contraception Is Required - NYT; The Health Resources and Services Administration (HRSA), an arm of HHS, developed the women’s services package to implement the preventive health services provisions of the Patient Protection and Affordable Care Act of 2010 (PPACA).

Federal recommended that major medical plans should include coverage for:

• well-woman visits
• contraception
• screening for the viruses that cause AIDS and human papillomavirus
• breast-feeding support in the basic package of preventive health services benefits.

The IRS has announced the Health Savings Account (HSA) limits for 2012.

In 2012, HSA limits are as follows:

HDHP Minimum Annual Deductible (No change from calendar year 2011): 

Single – $1200

Family – $2400

HDHP Out-of-Pocket Maximum: 

Single – $6050

Family – $12,100

HSA Maximum Contribution Limit: 

Single – $3100

Family – $6250

HSA/HDHP Market Growth

HSA holders own the assets in the accounts and can build up substantial sums over time.  Enrollment in HSA-compatible insurance plans has increased to 10 million earlier this year, from 1 million in March 2005, according to, America’s Health Insurance Plans (AHIP), a trade group.

HSAs were authorized starting in January 2004. Since then, AHIP has conducted a periodic census of health plans participating in the HSA/HDHP market.

• Between January 2009 and January 2010, the fastest growing market for HSA/HDHP products was large-group coverage, which rose by 33 percent, followed by small-group coverage, which grew by 22 percent.

• 30 percent of individuals covered by an HSA plan were in the small group market, 50 percent were in the large-group market, and the       remaining 20 percent were in the individual market.

• States with the highest levels of HSA/HDHP enrollment were California, Ohio, Florida, Texas, Illinois and Minnesota

HSA Advantages:

Opportunity to build savings – Unused money stays in your account from year to year and earns tax-free interest. The HSA also gives you an investment opportunity.

Tax-free contributions and earnings – You don’t pay taxes on contributions or earnings.

Tax Free Money allowed for non traditional Medical coverage- As per IRS Publication 502, unused moneys can be used  for dental,vision, lasik eye surgery, acupuncture, yoga, infertility etc.  Popular Examples

Portability – The funds belong to you, so you keep the funds if you change jobs or retire.

Our overall experience with HSAs have been positive  when employer funding is at minimum 50% using either the HSA or an HRA (Health Reimbursement Account-employer keeps unspent money).  Traditional plans trend of higher copays and new in network deductibles has also led to the popularity of an HSA.

For more customized information and how to navigate this please contact us:

Millennium Medical Solutions Corp.

200 Business Park Drive

Armonk, NY 10504

914-207-6161

The so-called employer mandate and the health insurance exchanges both go into effect in 2014 under the Patient Protection and Affordable Care Act.

The penalties generally apply to all employers with 50 or more full-time equivalent employees. An employer with at least 50 FTEs that provides access to coverage but fails to meet certain requirements, outlined below, may also be subject to a penalty.

To determine the FTE (Full Time Equivalent) you must count FT and PT employees.  Full Time Employees are those working 30 hours+/week.  See blog post “What does FTE mean?”

Affordability of the employer plan remains a consideration, however, since just one employee qualifying for federal premium assistance for exchange coverage will trigger a penalty for employers with 50 or more employees

Minimum essential coverage generally includes any coverage offered in the small or large group markets. Excepted benefits, such as limited-scope dental or vision offered under a separate policy, certificate or contract of insurance and Medicare supplemental plans, do not qualify.

Penalties explained

Starting in 2014, large employers that don’t offer coverage face a penalty of $2,000 per full-time employee (excluding the first 30) if at least one FTE receives a government subsidy to buy coverage on an exchange. This is sometimes referred to as the “play or pay” penalty.

Employers that offer coverage to employees may still face a “free rider” penalty if the coverage offered is deemed unaffordable or low in value.

If an employer offers coverage, but a full-time employee receives a premium credit subsidy through an exchange, the employer must pay an assessment equal to the lesser of:

• $3,000 for each employee that receives a subsidy
• $2,000 for each full-time employee after the first 30

The monetary penalties listed above are annual figures and may be pro-rated to the number of months for which the penalty applies.

Who’s eligible for a subsidy?

Employees who are offered coverage from their employer could be eligible for subsidies on the exchange if they don’t qualify for Medicaid or other programs, are not enrolled in their employer’s coverage and meet either of the following conditions:

• The employee’s share of the premium exceeds 9.5 percent of their household income
• The plan pays for less than 60 percent on average of covered health care expenses (e.g. coverage offered does not have at least a 60-percent actuarial value).

After 2014, penalty amounts are indexed by a premium adjustment percentage for the calendar year.

The Congressional Budget Office expects the penalties to generate $52 billion toward the overall cost of health reform by 2019. The Department of Health and Human Services estimates that fewer than 2 percent of large American employers will have to pay the assessments.

Disclaimer: This blog is not intended to represent legal advise and one should consult with a tax and/or legal expert.

For example, a firm has 35 full-time employees (30+ hours). In addition, the firm has 20 part time employees who all work 24 hours per week (96 hours per month). These part-time employees’ hours would be treated as equivalent to 16 full-time employees, based on the following calculation:

20 employees x 96 hours / 120 = 1920 / 120 = 16

Thus, in this example, the firm would be considered a “large employer,” based on a total full-time equivalent count of 51—that is, 35 full-time employees plus 16 full-time equivalents based on part-time hours.

This blog is not intended to represent legal advise and one should consult with a tax and/or legal expert.

* IRC 4980H(c)(4)

Disclaimer: This blog is not intended to represent legal advise and one should consult with a tax and/or legal expert.

This is an excerpt form a great article in PC World:

HTTPS Is Your Friend

When you’re browsing the Web, protect yourself by using HTTPS (Hypertext Transfer Protocol Secure) whenever possible. HTTPS encrypts the connection between your PC and the Website you’re visiting. Though HTTPS doesn’t guarantee that a site is secure, it can help prevent other parties from hacking into the network and gaining access to your account.

Many sites use HTTPS by default: When you purchase an item online or log in to online banking, for instance, your browser will probably connect to the site via HTTPS automatically. But you can go one step further by enabling HTTPS on Facebook, Twitter, and Gmail.

To use Facebook’s HTTPS feature, log in to Facebook and click Account in the upper-right corner. Select Account Settings from the drop-down menu, and look for ‘Account Security’ on the resulting page. Under the Account Security heading, click Change, check the box next to Browse Facebook on a secure connection (https) whenever possible, and click Save.

You can easily enable HTTPS on sites such as Twitter and Facebook and on services such as Gmail to introduce an extra level of security.For Twitter, first log in to your account. If you’re using the new Twitter interface, click your account name in the upper-right part of the screen, and select settings. (If you’re still using the old Twitter interface, click theSettings link in the upper right of the window.) From there, scroll down to the bottom of the resulting page, check the box next to Always use HTTPS, and click Save.

To enable HTTPS on Gmail, log in to your account, click the gear icon in the upper-right corner, and select Mail Settings from the drop-down menu. Next, under the Browser Connection heading, select the button labeled Always use https. When you’re all set, scroll to the bottom of the page and click Save Changes. To learn more about Gmail security, visit Google’s Gmail Security Checklist page.

Please browse responsibly as your sensitive information can comprise your data as well as your contact’s stored on your PC.   Kindly pass this on!

This month on April 12th, 2011 marked the five-year anniversary of  Massachusetts 2006 State Health Care Reform.     The reform was signed into law by then-governor Mitt Romney with the goal of providing affordable health insurance coverage to the estimated 6% of Massachusetts residents that were uninsured at the time.

Massachusetts State Health Care Reform and the  Affordable Care Act are virtually identical.Both reforms rely heavily on state-based health insurance exchanges, subsidies for qualifying individuals, and mandates for employers and individuals. As a result, Massachusetts presents the most appropriate example of what to expect from federal health care reform.

So, what have we learned from Massachusetts state reform?  The 2006 Massachusetts State Health Care Reform:

1. Created the  MAHealthConnector (a state health insurance exchange) to provide guaranteed issue health insurance to MA residents;
2. Mandated that every resident of the state obtain a minimum level of health insurance or face penalties;
3. Mandated that employers provide a “fair and reasonable contribution” to their employees’ health insurance premiums or face penalties; and
4. Provided free health insurance and partially-subsidized insurance to qualifying residents based on income.

Proponents of the law argue that Massachusetts Health Reform:

• Has resulted in Mass. being the state with the  highest percentage of insured residents, at 98% in April 2011, including 99.8% of children.
• Has increased the percentage of private companies that offer health insurance from 70% in 2005 to greater than 77% today.
• Has lowered the cost of individual health insurance premiums in Mass. due to the fact that primarily healthy people have moved to the individual market.

Opponents of the law argue that Massachusetts Health Reform:

• Has increased costs for its residents, $13,788 for a family of four in 2010, in the state that  already had the highest medical costs in the nation prior to implementation.
• Was setup for failure from the start due to its reliance on employer-sponsored health plans, plans that employers cannot afford due to rising costs.
• Has resulted in more than half of the newly-insured residents receiving health insurance that is partially or completely subsidized by Massachusetts’ taxpayers.

Has Massachusetts health care reform been properly utilized as a test bed for Federal Reform? Will the costs associated with Massachusetts health care reform be sustainable over the long term?

A taxing provision for small businesses was officially repealed last Thursday.  The widely unpopular provision would have had
businesses report transactions to IRS of $600 in a year paid to ALL businesses for goods and services.  Suddenly businesses would have to report payments to Staples, local restaurants and the like.

The $22 billion cost of the 1099 legislation was offset by requiring some people, if their income level increases during the year, to pay back a portion of the subsidies they receive to join health insurance exchanges created under the law.

Nevertheless, small businesses  are in a position to take advantage of new Tax Credit of up to 35% and 25% for non profit see: http://alexmillers.wordpress.com/2011/02/08/tax-credit-boosts-small-business-health-plan-enrollment/. Even IRS Tax Advocate official, Nina Olsen, admits on CBS Sunday Morning News to the”mess” and daunting confusion of the 65,000 page tax codes.  There were 579 changes alone in 2010 – “I dont know how businesses keep up”?!

We have been helping businesses and Accounting professionals calculate this credit. Call us to see of how to qualify for the small business tax credit.

Aside from the many health care related  questions that are popping up with the new Health Care Reform Act otherwise known as Patient Protection and Affordable Care Act there are also new Labor Law changes that affects businesses of all sizes.  For the latest info please visit Healthcare.gov.

A downloadable form and respective gov hyperlinks are available here with a summary of the key labor laws (updated for 2011).

Stay tuned, with changing political make up of the House these laws may undergo changes and tweaks.

More small businesses are providing health insurance to their employees in 2011 as a result of the tax credit of up to 35% and 25% for non-profits offered through PPACA starting in 2010. Several insurers have reported significant increases in small group enrollments. Coventry Health Care added 115,000 small group enrollments, representing an 8% increase; and Blue Cross Blue Shield of Kansas City saw a 58% jump, 38% of which had never offered health benefits to employees before.  Click video

Further information can be found at http://www.irs.gov/newsroom/article/0,,id=223666,00.html. In addition, we have a simple work sheet that can determine exactly how much the credit is worth to you.  Importantly, the Tax Credit will increase  to 50% for small businesses by 2014!

Please contact our office for further guidance on your group’s plan.