This webinar provides an overview of the new laws affecting employer health plans, including the effects on benefits offered to temporary employees. In addition to reviewing the new rules affecting employers, the insurance professionals at Essential StaffCARE will provide analysis and commentary so you can better understand how this might affect your company.
1. The Impact ofHealth Reform on Staffing Tuesday, April 12, 20112:00-3:30pm EDT Sponsored byAvionte Staffing Softwarein partnership with
2. Presented by: Aaron Lesher & John WaltersInsurance Applications Group LLC With Special Thanks to: Edward A. Lenz Esq., Senior Vice President for Public Affairs & General Counsel for American Staffing Association
10. Employer Notice and Reporting Requirements*Patient Protection and Affordable Care Act (as amended by the Health Care and Education Affordability Reconciliation Act of 2010) *
13. Excise tax on employers that don’t offer coverage or have employees receiving subsidies—1/1/14
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18. Individuals with household income between 100% and 400% of federal poverty who aren’t covered by an employer or spouse’s employer are eligible
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26. There are two types of limited benefit health insurance plans. Both of these plans have been described by the unofficial industry term as “mini-med” insurance plans.
27. Type 1 --- True co-insurance plans that incorporate co-pays, deductibles and co-insurance. These plans are technically filed in each state as major medical insurance plans but they incorporate annual maximums and plan limitations to make them more affordable to an hourly wage employee.
30. They look and feel like major medical insurance; most plans contain annual maximum benefits ranging from $5,000 to $50,000 per year.
31. A typical co-insurance “mini- med” plan would have the following features; $15-$20 co-pay, $200-$500 deductible, 70/30 or 80/20 co-insurance, in-patient benefits, out-patient benefits and prescription drug benefits. As true group health insurance, these plans typically incorporate a pre-existing condition limitation.
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33. Some plans incorporate PPO networks that provide discounts only (not required to accept assignment of benefits).
34. As supplemental plans, indemnity insurance pays benefits from a fixed schedule of benefits; no co-pay, no deductible, no co-insurance.
35. Typical indemnity “mini-med” plans would have the following features; $50-$100 per doctor’s visit, $50-$75 per diagnostic testing, $50-$100 per x-ray and $200-$500 per day in-patient hospital benefit. Surgery benefits are paid from a fixed dollar amount surgical schedule. As supplemental insurance, these plans do not have a pre-existing condition limitation.
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37. Limited benefit plans administered by health insurance companies have been able to develop the systems and processes that enable them to successfully operate in the staffing environment. These systems are complex and costly. Only a small number of health insurance companies have made the commitment to develop such systems.
53. Coverage for internal staff, but assigned employees get no plan or less than minimum essential coverage (e.g., indemnity plan)—also has potential nondiscrimination implications
71. Combination of the above (ex. All full time employees working one year or more located at XYZ factory)
72. We expect this to continue as normal, so we don’t expect any non-discrimination issues to arise in the near future.
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74. Obtain coverage through state exchange (currently limited to employers with not more than 100 employees)
75. Offer fixed-dollar hospital and medical indemnity plans (but such plans do not qualify as minimum essential coverage)
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77. We’ve seen self insured plans with $100,000 and $200,000 annual caps cause significant loses for staffing companies (you can imagine if those losses were capped at $5 million per person)
89. 50% contribution is not realistic. More likely, a staffing company would have to pay 80% to 90%
90. Offering a traditional major med plan to temps, with all of the regulations that accompany it, would require a major investment in Human Resources, Payroll, Legal, and other areas: Cost = $????
91. Does not take medical inflation into account (health plan costs are increasing at 9% per year)
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94. Health plan costs $23,750 to $35,000 per month, using the prior illustration
95. Plus cost of time and resources in HR, Legal, Payroll, etc.
114. Start small by building language into your contracts that lets you adjust billable rates to cover the cost of any federal mandates or taxes for health insurance in the future.
115. Make sure your benefits providers are staying abreast of the regulations, including contingency plans
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117. A Special Thank You to our Speakers! John Walters johnwalters@iagbenefits.com Aaron Lesher aaronlesher@iagbenefits.com