Industry News & Information

Health Insurance Information

• MN: Section 125 Plan for individual insurance. MN Statute Section 62U.07: Effective July 2009, all employers with 11 or more current full-time employees in MN not offering health coverage to their employees shall establish and maintain an IRC Section 125 Plan to allow employees to purchase individual or employer-sponsored health coverage with pretax dollars. There are definite advantages to employers and employees alike. Employers may opt out; or they may apply for a $350 grant to help offset the costs of establishing the Section 125 Plan (which may be in the vicinity of $350). It is important to know the ins and outs of this statute in order to implement it so that it does not become subject to ERISA and therefore a new set of federal laws. A reputable third party administrator should be able to help install the Section 125 Plan and explain how to accurately maintain it. For information about applying for the $350 grant, contact the Minnesota department of Employment and Economic Development at 651.259.7435.
• US: COBRA Subsidy: Assistance Eligible Individuals (AEI's) have the right to pay 35% of COBRA premiums for up to nine months.
• US: Medicare: National monthly average for Medicare Advantage premiums in 2010 is $44.
• US: FMLA (Family Medical Leave Act): Two new provisions have been established for leave under FMLA. Employers and their employees on FMLA    need to know employee rights concerning health coverage under the group's plan. FMLA is not a COBRA qualifying event. The employer must offer group coverage the same as if they were still at the workplace. There are FMLA-related situations where a COBRA qualifying even may occur, such as if the employee notifies the employer they will not be returning to work.
• US: Americans with Disabilities Act. ADA Amendments Act of 2008: Effective in January 2009. Go to the US EEOC (Equal Employment Opportunity Commission) website to learn more about who qualifies as disabled and what are the rights and obligations of employers and employees upon qualification? This effects group health coverage in that if the employee's hours are reduced below the group plan eligibility requirement, or if can no longer work; they may qualify for federal COBRA continuation. Each state may have its own added provisions which may further benefit employees eligible for COBRA. In general, where both federal and state continuation laws differ, the law that is more favorable to the employee applies. Link for Minnesota COBRA continuation information. See pages 9 and 10 of handbook: Health Insurance for Small Employers and Their Employees 2009 for Wisconsin COBRA continuation information.
• US: US Census Bureau health insurance information, the latest data available as of July 2010.
• US: Current health care news and information on the US Department of Health and Human Services website.
• MN: Current Minnesota health care statistics.
• MN: Current health care news from the Minnesota Department of Human Services.
• MN: Current Minnesota health care and coverage information, including FAQs.
• MN: SF No. 3780 - Health Care Reform (Minnesota Laws 2008, Chapter 358). Generally, effective in 2009 or later.
• WI: Health coverage statistics for Wisconsin; the most recent available as of March 2009.
• WI: Current Wisconsin health insurance FAQs.
• WI: 2009 Wisconsin handbook: Health Insurance for Small Employers and Their Employees 2010.

HDHPs/HSAs in 2010

• For calendar year 2010, a "high deductible health plan" (HDHP) is defined as having "...an annual deductible of at least $1,200 for self-only coverage or $2,400 for family coverage, and annual out-of-pocket expenses up to $5,950 for self-only coverage or $11,900 for family coverage." There can also be no first dollar coverage, except dental, vision and preventive care (per IRS Code 223).
• For calendar year 2010, HSA contribution limits are the following: $3,050 for individual coverage (compared with $3,000 in 2009) and $6,150 for family coverage ($5,950 in 2009).
• If over the age of 55: additional "catch up" contribution of $1000 allowed for 2010.
• Note: Health Savings Accounts (HSAs) can only be established with HDHP plans, and the particular HDHP plan must be "compatible." Confirm compatibility with your agent or the carrier if you wish to establish an HSA.
• For more information about HSA rules, go to the US Treasury web site. 

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