CalCPA ProtectPlus

The following information is from IRS.gov and is very beneficial to those who have an HSA account.

Death of HSA Holder

You should choose a beneficiary when you set up your HSA. What happens to that HSA when you die depends on whom you designate as the beneficiary.

Spouse is the designated beneficiary.   If your spouse is the designated beneficiary of your HSA, it will be treated as your spouse’s HSA after your death.

Spouse is not the designated beneficiary.   If your spouse is not the designated beneficiary of your HSA:

· The account stops being an HSA, and

· The fair market value of the HSA becomes taxable to the beneficiary in the year in which you die.

If your estate is the beneficiary, the value is included on your final income tax return.

TIP: The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death.

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The following information is from IRS.gov and is very beneficial to those who have an HSA account.

You may enjoy several benefits from having an HSA. Here are some of the benefits:

• You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040.
• Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.
• The contributions remain in your account from year to year until you use them.
• The interest or other earnings on the assets in the account are tax free.
• Distributions may be tax free if you pay qualified medical expenses. See qualified medical expenses below.
• An HSA is “portable” so it stays with you if you change employers or leave the work force.

Qualified medical expenses.  Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. However, even though non-prescription medicines (other than insulin) do not qualify for the medical and dental expenses deduction, they do qualify as expenses for HSA purposes. (continue reading…)

If you’re looking ahead toward a big birthday this year—one of those marked by a round number, a party, and jokes about getting older—then among the surprises that may await you is an increase in your health insurance rates.

This unwelcome gift—in addition to the seemingly inevitable yearly rate increase that everyone gets—comes in the form of a higher premium and marks your status in having moved to another age rate band.

You’re probably aware that older people pay more for their health insurance and younger people less, and you may have already experienced such an increase.

Nevertheless, in these lean times, its not something you want to come as a surprise. “Happy birthday! Blow out the candles! Your premium just went up $100 a month!” ProtectPlus uses a range of age bands that are common in health insurance plans:

• under 30
• 30–39
• 40–49
• 50–54
• 55–60
• 60–64
• 65 and older

If you’re with another insurer, you should check to see where the bands fall on your policy. You can’t avoid getting older, of course, but if a higher premium will create a financial burden, you can switch to a less expensive plan during open enrollment (November 2 to December 31). Otherwise, you will have to live with the higher rates for your newly attained age until the next year.

Keep in mind that the rates for your spouse and dependents are dependent on your age band, so their big birthdays don’t count in terms of premiums. You can celebrate as you see fit, and not have to worry about higher rates on their birthdays.

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Vision Service Plan benefits include periodic check-ups, frames, lenses, and contacts, but its up to you to know when you are eligible for these benefits. You can access eligibility information, and more, online in your own password protected area of the Vision Service Plan website. That way, as soon as you know you are eligible for benefits, you can schedule your next eye exam, or get the new pair of glasses or contact lenses that you’ve been wanting.

To access your account visit your plans login on the ProtectPlus website.

1. Next, you can select among medical, dental, and vision plans. When you click on “vision,” you will be taken to the VSP login page where you will need to register if you haven’t already done so.
2. Once you have logged in, you will see a page that lists each benefit with an entry that specifies if you are currently eligible or the date on which you will gain eligibility.
3. You can also view the online “savings statement” from your last vision appointment to see how much you saved by using your vision plan benefits.

This is a short presentation that covers the new form “Group Insurance Change Report” for CalCPA ProtectPlus Group Insurance Plans, what it is and how to use it. Click the image below to view presentation.

Presentation Highlights:
•    Move Employees between health plans
•    Remove Life or Disability from all employees
•    Declare which health plans you will be offering (any combinations)

The end of the calendar year marks the ProtectPlus annual open enrollment period. It’s also the time to make plan changes. For employees who opted not to enroll in ProtectPlus for whatever reason, this is another chance to join. For current subscribers it’s an opportunity to make changes in their coverage.

Maintaining the longer open enrollment period adopted in 2007, the Group Insurance Trust has announced that open enrollment begins on November 2 and ends December 31.

CalCPA member firms that haven’t offered ProtectPlus plans to their employees can, of course, enroll in Group Insurance Trust plans at any time.

Firms can consider the full range of offerings for 2010 that include;

• 5 copay plans
• 3 HSA-eligible plans
• 2 Anthem Blue Cross HMO plans

This is also the time of year that the Trust announces plan changes and premium adjustments. As always, premium  increases are anticipated with concern, but the good news is:

The Trust has been able to maintain its single digit  premium increases for the seventh consecutive year.

This is a remarkable achievement when you consider that ProtectPlus also beat industry averages in each of these years.

Several benefit improvements will be implemented in 2010.

• All ProtectPlus copay plans will see a reduction in the copay amount for generic prescription drugs from $15 to $10.
• Improved coverage for mental health and substance abuse services on all copay, HSA-eligible, and Anthem Blue Cross HMO plans.
• Medical plans will now align all mental health and substance abuse member cost-sharing provisions with those offered for in-network and out-of-network medical services and remove any visit limitations (in accordance with the Mental Health Parity and Addiction Equity Act of 2008).

The Trust will also combine several copay plans for 2010.
Last year the Trust offered eight copay plans, including both regular and enhanced versions of:

• Protect 15
• Protect 25
• Protect 35

The enhanced versions of these plans—which waive the deductible for the first six in-network office visits—proved so popular that trustees were persuaded to include the enhanced benefits as standard features in the copay plans at these levels.

For 2010 the Protect 15, Protect 25 and Protect 35 plans will all feature the enhanced benefit of six office visits that are not subject to the plan’s deductible, while the Protect 10 and Protect 45 plans will retain their original structure.

Vision Service Plan and Delta Dental rates will be restructured for 2010.
Going forward, rates for both plans will be based on firm size in much the same way the medical plan rates are structured.

• Effective January 1, 2010, firms with two or more participants will see a reduction in VSP and Delta Dental rates while others will note a small increase.

Changes in Premiums
Some ProtectPlus members will see changes in their premiums next year that reflect altered geographical rate bands. Anthem Blue Cross has re-aligned several zip codes in rate areas one, two, and three, and the Trust has followed its lead in order stay consistent. For some, these changes will mean lower than average premium increases, while for others, unfortunately, it may mean an increase in excess of the average overall premium increase.

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The Group Insurance Trust has always made a priority of providing CalCPA  members the first-class service that they deserve. This goal is expressed in the quality benefit plans offered by the Trust, the range of choices, and the customer service that supports the use of those plans on a daily basis. Aiming to enhance this experience even further, the Trust has recently contracted with Banyan Administrators, LLC, to handle the administrative services formerly provided by Seabury & Smith.

About this Change
Susan Young, executive director of the Group Insurance Trust commented,

In light of Seabury’s long service to the Trust, deciding to move our account wasn’t easy. However, in seeking the best possible service for our members, we wanted to take advantage of Banyan’s skills.

Starting November 1, 2009, Banyan will be responsible for the following:

• Customer service
• Billing
• Payment processing
• Record-keeping
• Marketing support
• Receiving and accounting for participant contributions
• Maintaining records of eligible participants
• Preparing financial reports for GIT staff and trustees
• Banyan will also process all enrollment and change applications
• Maintain an interface with Anthem Blue Cross
• Help new firms and new employees set up their accounts, and manage employee eligibility

For many ProtectPlus members, of course, the primary and often the only point of contact with the plan administrator is when they call or email with a question. Banyan brings to this customer service role a history of serving 220 organizations and group plans beginning in 1994, including other MEWAs (Multiple Employer Welfare Arrangements) in its home state of Pennsylvania that have similar needs and concerns as the Group Insurance Trust. Scott Fair, executive vice president of Banyan, is very clear about “how important customer service interactions are in presenting the face of an organization.”

Banyan Customer Service Center
The Banyan customer service center is staffed by Banyan representatives—all  are licensed brokers—who are there to answer your questions whether by phone or email. Moving all these services to a higher level, Banyan brings with it a high degree of technological sophistication, so that relevant information will be more quickly and easily accessible. For a benefits  administrator this can mean resolving an eligibility issue online, and for Trust staff, the ability to monitor plan performance more closely. (continue reading…)

How-to Understand Your New Invoice

This is a short presentation that covers the new invoices provided by CalCPA ProtectPlus, and how to understand them. Click the image below to view the presentation.

Presentation Highlights:

• Format
• New Invoice – December 15th
• Employee Monthly Premiums
• Benefit Totals & Payments
• Payment Stubs

Contact Info

Banyan Administrator for CalCPA ProtectPlus

Here is an introductory presentation to Banyan Administrators, the new administrators of CalCPA ProtectPlus, and some highlights of the improvements you can expect to see over the next couple of months as we make this transition. Click image below to view presentation.

Presentation Highlights:
Improvements

• Simplified enrollment process
• Improved program invoice design
• Enhanced communication capabilities – new web features
• Streamlined administration leveraging web-based technology

What’s Next

• Detailed Administrative Guide
• Annual Open Enrollment Communications

New Contact Info

Easy-to-use, clear, and helpful, the redesigned CPA ProtectPlus website offers a wide variety of new tools addressing the insurance needs and benefits questions of CalCPA members.

Give these new features a try!

Plan Selector Tool. Analyzing your responses to a short series of questions, this new selector tool identifies three health plans suited to your needs. You can click through to each of the selected plans and view a description of its benefits. In addition, the tool displays a graph comparing the relative premiums of all available ProtectPlus plans.

Member Satisfaction Survey. Whether you are a current or former ProtectPlus plan participant, we want your feedback, and we’ve made it easy for you. Just click on the member satisfaction tab to let us know about your experience and what is important to you.

Firm Administrator’s Tab. For firms that wish to manage some of their own ProtectPlus account functions, this tab will soon be the portal to the firm’s own self-management site. It already features a series of important links, including a twelve-page PDF Administrative Guide with contact information, payment information, rules and recent changes. The tab also provides links to a host of PDF forms (enrollment forms, claims forms, the new 2010 rate sheets, HIPAA information, prescription drug preauthorization forms, plan descriptions, brochures, and the 2010 ProtectPlus EZ Guide). A series of multi-media E-Presentations give administrators information on how the ProtectPlus program operates. Finally, a Contact Information option has links to an insurance glossary and FAQs, as well as a list of companies, institutions, and people who can help with your insurance needs.

Blog, Twitter, and Facebook Links. Expand your network while making sure you get the news from CalCPA as it happens. ProtectPlus is blogging, tweeting, and networked.

Ask the Sales Manager Link. Too busy to pick up the phone? Want a quote? Have a question but it’s too complicated to leave in a phone message? Just fill in the online form and CalCPA sales manager Tom Kowalski will get back to you ASAP.

The CalCPA Daily Dose Widget link brings you top news items that refresh daily. You’ll receive late-breaking news about health and medicine, stocks, sports, business and finance.

Revised Quote Tool. You can now choose to get a quote as a guest, or you can create an account. If you choose to create an account, the system automatically saves each quote you request so you can return at any time to view prior quotes. On each visit you can get  a detailed quote with the cost for each employee, or you can get a “quick view” premium summary.

Open enrollment is going on now through December 31st. See why so many CalCPA member firms choose CalCPA ProtectPlus. Each of our plans have been developed through research, member feedback, and collaboration with leading national service providers to deliver an attractive balance of benefits and savings. And because these are proprietary plans, we can provide them to our member firms at highly competitive group rates.

You may choose to offer your employees almost any combination of the CalCPA ProtectPlus plans. This exclusive coverage is a great enticement for attracting and retaining top-level talent to your firm.

Here is a quick look at our plans.

To find the plan that be fits your needs, please use our Plan Selector Tool.

• Protect 10 $10 copay, 10% coinsurance, 
individual deductible $250/Family $500. More details

• Protect 15 $15 copay, 20% coinsurance, Individual deductible $250/Family $500, the first 6 in-network office visits per calendar year are exempt from annual deductible. More details

• Protect 25 $25 copay, 30% coinsurance, Individual deductible $500/Family $1,000,the first 6 in-network office visits per calendar year are exempt from annual deductible. More details

• Protect 35 $35 copay, 40% coinsurance, Individual deductible $500/Family $1,000, the first 6 in-network office visits per calendar year are exempt from annual deductible. More details

• Protect 45 $45 copay, 50% coinsurance, no in-network deductible. More details

• Protect HSA 1500 $1,500 Individual deductible $1,500/Family $3,000, 30% coinsurance, $4,500 Individual out-of-pocket maximum. More details

• Protect HSA 2500 $2,500 Individual deductible $2,500/Family $5,000, -0- coinsurance, $2,500 Individual out-of-pocket maximum. More details

• Protect HSA 2850 $2,850 Individual deductible $2850/Family $5,650, 30% coinsurance, $5,500 Individual/ out-of-pocket maximum. More details

• HMO Value 80 $15 copay, no deductible, 20% coinsurance for most covered expenses. More details

• HMO Advantage 100 $10 copay, no deductible, no additional charge for most covered expenses. More details

As mentioned in a previous posting there are plenty of new features coming for ProtectPlus policy holders. But, there will also be some great new tools on the website.

We will be launching a plan selector tool that will ease the process of selecting the right plan options for your firm. This tool will be in the form of a quick survey that will result in a recommendation of the three plans that are most likely to suit your needs. We are very excited about this new tool, and we think you will enjoy its ease of use as well!

Be sure to let us know what you think of it, once you’ve tried!

In the next several weeks, please be on the lookout for important announcements pertaining to the CalCPA ProtectPlus programs. We are making changes that will lead to improvements in program billing, customer service and technology usage.  Information will be distributed via the CalCPA ProtectPlus website, CPA eFocus newsletter, Twitter, direct mailings, Brainshark multi-media presentations and other communication resources.  Stay tuned for more information!

Did you know that although most employers will elect to have partners and employees covered under a single plan, firms may chose to offer one or more, or all of CalCPA ProtectPlus plans to their owners and employees. However, if the firm wishes to include an HMO plan, only one the the Anthem Blue Cross plans may be offered.

Learn more about CPA ProtectPlus healthcare plans

Employer Eligibility
ProtectPlus is available to accounting firms and firms offering general financial services. Solo practitioners (a CPA practicing on his/her own with no other employees) are eligible to apply.

To be eligible and retain such eligibility, more than 50% of all the Employer’s owners (i.e., principals, proprietors, partners, shareholders or other owners) must be CPAs or Associate members of CalCPA in good standing.

If you are a CPA and not a member of CalCPA, see how you can join CalCPA here.

All employers deemed to be part of an affiliated group under Internal Revenue Code Sections 414 (b), (c), or (m) are considered to be a single employer. (continue reading…)

Tax-Savings Can Really Add Up To Lower Healthcare Costs

Times are tough. Medical costs are on the rise. But there’s something you can do right now to get more for your healthcare dollars. Simply sign up for a CalCPA ProtectPlus Health Savings Account (HSA) plan and save big on the services you already use. HSA plans are available to any CalCPA ProtectPlus member whose employer is offering any of our three High Deductible Health Plans (HDHP).

With these accounts, you deposit pre-tax dollars into your Health Savings Account and then use your HSA debit card to pay for eligible medical expenses for you and your dependents. You can use your HSA for expenses like office visits, prescriptions, and emergency services, plus eligible expenses NOT covered by your plan such as dental, vision, many over-the-counter drugs and long-term care.

Get full details on HSA plans. See HSA eligible plans.

It’s as easy as 1,2,3.

1. Provide a written request including; the employee’s name, the plan(s) from which the employee should be terminated, the reason why, and the effective date.
2. Sign, date and include your title.
3. Fax your written request to Seabury & Smith @ 800-682-8787

Having recently completed what looked like a paperwork endurance contest,  GIT staff and trustees were rewarded in  May when the Trust received a financial strength rating of B++ from insurance  company rating agency A.M. Best. In a press release announcing its positive evaluation, Best stated that the rating reflected the Trust’s “synergy with CalCPA, favorable level of capitalization and positive operating performance.”

The release went on to say that the Trust’s risk-adjusted capital position “remains favorable,” and is built upon “its historically positive operating results.” This gives a tremendous boost to all the GIT plans, affirming that they are as reliable as they are valuable.

Extended Rate Guarantee
On the heels of this good news, the Trust has announced that it will guarantee current 2009 premium rates for any newly enrolling firms through December 31, 2010. In terms of cost, there will never be a better time to switch to ProtectPlus than now. As CalCPA members you have available a variety of high quality health insurance plans that are already  competitively priced. By acting now, you and your employees can maintain current 2009 rates throughout 2010. Add to this the fact that ProtectPlus rate actions have averaged 7 percent over the past six years, which is significantly below average annual rate increases industry-wide,  and you should have all the incentives you need to enroll now. (continue reading…)

A note from Susan Young, Executive Director

Trust staff are frequently asked “why should I choose ProtectPlus?”  The short answer is, “because these plans provide valuable features you just aren’t going to find elsewhere.” At the top of the list is the claims advocacy that members get from the Seabury & Smith staff exclusively dedicated to serving Group Insurance Trust plan subscribers.

The Seabury staff usually resolves disputes and claims issues fast, despite the fact that they are often dealing with complicated issues. In an age when computer-processed claims are tossed out because they don’t fit the formula, having a live person to resolve problems can be a huge time saver.

A second, immensely important feature of ProtectPlus is the right of survivors to continue coverage. In plain terms this means that if a member dies, his or her dependents can continue their health coverage as long as they need it—either until they qualify for Medicare, remarry, or get other coverage through an employer.

Finally, ProtectPlus allows college students between the ages of 19 and 25 to remain on their parents’ plans if they carry a minimum of nine units. The industry standard for this benefit is 12 units. Additionally, dependents between the ages of 19 and 25 who may be taking time off from school or serving on a HSAsreligious mission may remain in the plan as “single-subscribers” billed at their own age rate, until they once again qualify as a dependent student, become independent of their parents, or turn age 25.

This year the Group Insurance Trust celebrates its 50th anniversary. Looking back, it’s a story of hard work and remarkable achievements. Whether you’ve been a long-time CalCPA member and can recall many of these events or have joined recently, a quick review of this history reveals the valuable service of CalCPA staff and board volunteers who have helped build this organization. This history also shows how CalCPA membership benefits have grown over the years. Consider these twelve milestones in the history of the GIT.

1. On December 4, 1959, the California Society of CPAs creates a trust for the maintenance of group insurance programs serving employer members, employees, and dependents. Over the course of the next 38 years, the terms of this trust will be amended and restated several times.
2. Between 1980 and 1983 two committees administer CalCPA insurance benefits. In 1983 the two committees separate. The Members Insurance Plans Committee is charged with the formation of CAMICO, while the Administrative Committee of the Group Insurance Trust (ACGIT) is given oversight of CalCPA’s health and welfare plans.
3. In 1981, with healthcare premiums escalating rapidly, the medical plan is put out for bid and moved from Pacific Mutual to Blue Cross. Despite a two-year rate guarantee period, when the plan loses $2 million in the first year Blue Cross requests and is denied an 82 percent premium rate increase. Eventually the Trust and Blue Cross agree on a rate increase of more than 40 percent and the creation of a rate stabilization fund to temper future rate increases. (continue reading…)