CalCPA ProtectPlus

In the video below, Kelsey Hubbard of the Wall Street Journal Digital Network speaks with WSJ’s Shirley Wang about steps that are being taken to help prevent Type 1 diabetes especially with the rising numbers of children that are diagnosed with the disease.

As trusted financial advisors to millions of Californians, CPAs are in a position to know if their clients have uninsured children under the age of 19. According to a new state law (AB 2244) that took effect January 1, an important open enrollment window for obtaining individual insurance closes March 1. Applying for a child’s health insurance after that exposes families to much higher premiums.

While missing the window doesn’t mean children can’t be covered at a later date—they can enroll during their birthday month—but their premiums will be higher.

Authored by Assemblyman Mike Feuer, AB 2244 passed in response to the decision by California insurers late last year to stop selling individual policies to children under 19 years of age and was written as a defensive measure against insurance industry attempts to circumvent provisions in the federal health reform law.

Also keep in mind that the opportunity for parents to obtain individual coverage without regard to a child’s health status is here. Pre-existing condition clauses are no longer allowed. Low-income families may have good choices through Medi-Cal or the Healthy Families program. Information is available at 1-877-KIDS NOW.

While the new legislation doesn’t directly affect employer-based group plans, it is a good idea for employed parents to ask if their children under 19 can enroll and at what cost.

The California Department of Insurance has created a web page that explains how to take advantage of this time-limited opportunity. The message is: Act now to save money before the window closes on March 1 and premiums are raised.

Insurance Insider guest blog from Doug Hessel, CalCPA Protectplus Program Director, Ancillary Products at Hover Insurance Services – dhessel@hoverinsurance.com, (800) 805-9480, ext. 4

Disclaimer: Internal Revenue Service Circular 230 Disclosure

Please note that any discussion of or advice regarding United States or State of California tax matters contained herein (including any attachments hereto) does not meet the requirements necessary to be a “covered opinion” as defined in Internal Revenue Service Circular 230, and therefore, is not intended or written to be relied upon or used and cannot be relied upon or used for the purpose of avoiding federal or state tax penalties that may be imposed or for the purpose of promoting, marketing, or recommending any tax-related matters or advice to another party.

By Doug Hessel 

Are you confused about California’s tax situation for newly eligible children under the new Federal Health Care reform rules? Welcome to the club.

Some practical advice: Don’t sweat it, but know it can get complicated and will require some attention from HR and Payroll.

So here’s a little more information for those puzzled about imputing income requirements for newly eligible dependents covered by benefit plans.

First, a little background…

If one believes the press about California’s lead on implementing the new Federal Patient Protection and Affordable Care Act (PPACA) healthcare reform rules, it’s not a leap to assume that the state’s tax rules would work in step with the federal rules about making medical coverage tax-free for families with kids now covered.

But that didn’t happen, yet.

Last year, according to the Sacramento Bee, the California legislature decided not to act to coordinate the state and federal tax codes on this issue because the provision was included in broader tax legislation that didn’t even make it to the governor’s desk. So no state tax break for now. However, help may be on the way with AB 36, a bill currently proposed that would specifically exempt employer contributions to young adult coverage from state personal income taxes.

What are the practical consequences?

The current lack of  a coordinating law will force employers to impute state income tax for those covering newly eligible adult children under medical, dental and vision plans.

For the time being, the rules defining tax dependents under IRC 152 will continue to be the state’s position in determining whether benefits can be provided on a tax-free basis. If a child meets the definition under the code—link attached—no imputed income requirement exists.  Adoption cases and divorces can complicate the issue of whether a child is a tax dependent and may require the advice of a qualified CPA to answer.

Employers will need to impute income for employees covering adult children 24 or older for state tax purposes, unless the adult children meet the “qualifying relative test” under IRC Section 152. Also, employees covering previously ineligible children age 19-24 (because they didn’t meet the full-time student status defined in IRC 152) will need to be identified and imputed income allocated.

A number of methods determining the imputed income amount can be used, though current guidance is to apply what the benefit would cost in an “arm’s-length transaction.”  Please remember imputed income applies to any medical, dental and vision plans in which the newly eligible child is enrolled. (continue reading…)

We are learning more, and more of the harmful chemicals found our cosmetics and personal care products, but the last place we would expect to find dangerous ingredients are in the products specifically made for our children.  Unfortunately, like many toys, some of the chemicals found in baby care products can be very dangerous to their health.

Harmful chemicals can be found in baby sunscreen, moisturizer, soap, and diaper creams.  You should always try to use natural, or organic products with no fragrance. Within the following categories, here are a list of main ingredients that you should avoid.

Diaper Cream

• BHA which has been banned in other countries because it may cause skin depigmentation.
• Boric Acid / Sodium Borate has been banned for unsafe use
• Fragrance, or phthalates linked to hormonal disruptions

Lotions & Moisturizers

• DMDM Hydantoin which may cause “cancer-forming contaminates”
• Fragrance, or phthalates linked to hormonal disruptions
• Cetearetn / PEG Compounds these are petrol chemicals that may contain cancer-causing agents

Sunscreen

• Oxybenzole which can produce cancer causing chemicals
• DMDM Hydantoin which may cause “cancer-forming contaminates”

• Triethanolamine which may cause “cancer-forming contaminates”

Body Wash & Liquid Soap

• Triclosan which has been linked to thyroid disruption
• DMDM Hydantoin which may cause “cancer-forming contaminates”
• Fragrance, or phthalates linked to hormonal disruptions

It’s sad, but we have to be hyper-aware of the products we are using daily, and the chemicals that our children come in contact with — especially the ones we may be (unknowingly) responsible for exposing them to.

Source: Cosmetics Database

This feature via CDC

Lead poisoning is entirely preventable. The key is stopping children from coming into contact with lead and treating children who have been poisoned by lead. Learn more about preventing childhood lead poisoning and National Lead Poisoning Prevention Week activities.

Young children often place their toys, fingers, and other objects in their mouth as part of their normal development, this hand-to-mouth activity may put them in contact with lead paint or dust.

The most common sources of lead exposure for children are chips and particles of old lead paint. Although children may be directly exposed to lead from paint by swallowing paint chips, they are more commonly exposed by swallowing house dust or soil contaminated by leaded paint. This happens because lead paint chips become ground into tiny bits that become part of the dust and soil in and around homes. This usually occurs when leaded paint becomes old or worn or is subject to constant rubbing (as on doors and windowsills and wells). In addition, lead can be scattered when paint is disturbed during destruction, remodeling, paint removal, or preparation of painted surfaces for repainting.

Lead, which is invisible to the naked eye and has no smell, may be found in other sources. These sources may be the exposure source for as many as 30% of lead-poisoned children in certain areas across the United States. They include;

• traditional home health remedies such as azarcon and greta, which are used for upset stomach or indigestion in the Hispanic community
• imported candies
• imported toys and toy jewelry
• imported cosmetics
• pottery and ceramics
• drinking water contaminated by lead leaching from lead pipes, solder, brass fixtures, or valves and
• consumer products, including tea kettles and vinyl miniblinds

For preventative measures and other information continue reading about childhood lead poisoning