Health Insurance
What you need to know about the Health Care Reform
A year-by-year look at the heath care reform law
Health Savings Accounts are now tax-free in Wisconsin.
On January 24, 2011, Wisconsin Governor Scott Walker signed his first bill into law. The new law permits individuals to deduct contributions to Health Savings Accounts (HSAs) from their state income taxes.
Previously, Wisconsin did not follow federal treatment of HSA funds.
In December 2003, then-President Bush signed legislation creating HSAs. At the time, the State of Wisconsin did not adopt the federal tax-free treatment of the contributions to or earnings of HSAs. In addition, any amount the account holder’s employer contributed to the account was taxable income to the individual for Wisconsin income tax purposes.
Blogs
What?! No one told me that health reform might affect my Worker’s Compensation costs!
February 1, 2011
There has been much written about the effect health reform will have on premiums and the coverages that are offered, but I have not seen much about the possible effects on Worker’s Compensation.
I believe there are potentially positive and negative consequences. First, some negatives:
- The first area that could increase the cost of Worker’s Compensation is employees’ desire for specialist care. None of us know exactly how health policies will be designed in 2014, but it is likely that health plans will probably move toward steering patients to primary care physicians. However, one of the basic provisions of Worker’s Comp is the ability to choose the provider. This could result in employees attempting to use Worker’s Compensation for injuries that were not work related in order to see a specialist, thereby increasing Worker’s Comp costs.
- A second potential area for increase would be the result of the government trying to starve the provider community, which could cause more claims to be steered to Worker’s Comp.
There are also a number of potentially positive effects:
- With a reduction in the number of uninsureds, there will not be the perceived need by some to allege a work-related injury due to lack of protection.
- Worker’s Compensation carriers with the proper expertise may be able to negotiate better provider contracts to mirror levels of compensation in health provider contracts.
- In the long term, wellness programs and lifestyle changes may reduce the likelihood of some injuries.
I don’t know the end result, but I believe it is important that you and your agent discuss what your carrier is doing to prepare.
Please contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it if you have questions or ideas for future articles or visit us at www.burkart-heisdorf.com for other articles.
Increased Premiums in Health Insurance… Now What?
3. Review how health benefits fit in as part of your compensation package. Health Insurance is a form of compensation. Have you reinforced that fact with your employees? Two firms in the same industry can differ greatly in either coverage or amount the employees contribute. You need to take into account how other items compare, such as wages, vacation, flexibility, and work atmosphere.
Introduction of the Health Care Reform Blog by Mark McCabe
January 1, 2011
Welcome to the first of a series of blogs on health care reform. Reform will affect everyone--from individuals who only purchase Health Insurance for themselves through large self-funded firms. Not everything in these articles will apply to your situation, but I hope you find them helpful.
A decision many are facing is the choice to “grandfather” your current health insurance plan. A grandfathered group health plan is a plan in which an individual was enrolled on March 23, 2010. As a general rule, if you are enrolled in a fully-insured plan, the decision may be out of your hands, since the carrier may determine if they will grandfather the plan and comply with the requirements to maintain grandfather status.
Grandfathered health plans will be able to make routine changes to their policies and maintain their status. These routine changes include cost adjustments to keep pace with medical inflation, adding new benefits, making modest adjustments to existing benefits, voluntarily adopting new consumer protections under the new law, or making changes to comply with State or other Federal laws. Plans will lose their grandfathered status if they choose to make significant changes that reduce benefits or increase costs to consumers.
Some firms elect to remain grandfathered in order to avoid costs such as:
- Health plans that are required to cover preventive care with no cost share and expand what is covered under preventive care.
- An appeal process for coverage determinations and medical necessity decisions.
- Prohibiting employers from having different health benefits tied to employee salary levels.
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