J&D Benefits Perspective

Open Enrollment – Answers to Common Employee Questions

Kathleen Dugan, Chief Operating Officer, Johnson & Dugan
Jody Lee, Compliance Manager, Johnson & Dugan

With the end of the year coming quickly, many companies are starting to prepare for Open Enrollment. Invariably, there are employee questions that come up, so we have prepared a list of the most common to assist you during the busy season.

My spouse’s company benefit plan holds open enrollment in October, and our plan has open enrollment in December. Can he drop his plan in October and join our plan, even though it isn’t our company open enrollment yet?

Resources for Employees

Jody Lee, Compliance Manager, Johnson & Dugan

Having a better understanding of health insurance options, and how the health insurance industry works, will provide individuals with the knowledge that they are receiving the full benefits for which they are entitled. Some new resources offered by America’s Health Insurance Plans (AHIP) provide additional tools to help consumers navigate more confidently through the often-complicated landscape of health insurance.

Questions and Answers About Health Insurance is a consumer guide developed by the Agency for Healthcare Research and Quality and AHIP. The guide includes definitions of the health insurance plans available and the differences between each, answers to commonly asked questions, a glossary of terms, and additional resources. For a copy of the free guide, click here: http://www.ifebp.org/Resources/News/Regulatory+Updates/NewGuideReleasedonUnderstandingHealthInsurance.htm

Navigating Your Health Benefits for Dummies

Navigating the often-complex mandates of a benefits program can be a frustrating and time-consuming experience. A new, free, resource is available that simplifies the rules of health care plans and includes practical advice to maximize effectiveness for the member.

Navigating Your Health Benefits for Dummies is available through the Aetna public education program, Plan for Your Health, and was co-written by Aetna and the Financial Planning Association. As with all of the books in the “Dummies” series, Navigating Your Health Benefits for Dummies is broken out into a logical format and applies the information to real-world experiences.

For more information or to receive a free copy of the book, go to the Plan for Your Health website: http://www.planforyourhealth.com/

One free copy of the guide is available per household.

Small Group Benefits and Guarantee Issue

Maria Barreda, Account Executive, Johnson & Dugan

Small Groups in California are finding it easier these days to get medical insurance. The process of buying insurance has become more streamlined and thanks to AB1672 (Small Group Legislation), the basic rules are clear to follow.

Insurance companies are also a big factor by promoting and creating a large number of plans to help small companies find the plan that best fits their budget and medical needs.

Covering Dependents – Is it Getting More Complicated?

Jody Lee, Corporate Training Manager, Johnson & Dugan

Most insurance contracts include coverage for dependents to age 19, or to a specified age (23, 24 or 25) for full-time students. However, to battle an ever-increasing population of uninsured young people between the ages of 19 and 34, states such as New Jersey, Texas and Utah are passing laws requiring employers to extend coverage to dependents. These laws are dictating what must be written in the insurance contracts, with some states going beyond the traditional age guidelines.

Benefit Options for Part-Time Employees

Kimberly Miles, Account Executive, Johnson & Dugan

Most employers provide group benefits to their full-time employees who work over 30 hours per week but a question we are often asked is, "What can we offer our part-time employees?". If you have a large population of part-time and/or seasonal employees who work less than 20 hours a week, you can provide voluntary medical benefits known as "limited medical plans". These plans can also be setup to cover full-time employees who are in their waiting period for full-time health benefits and need a low cost alternative to COBRA coverage. Limited medical plans offer affordable medical coverage with no waiting periods or health underwriting requirements. These plans can be offered on a voluntary basis or an employer could contribute towards the cost.

The Importance of Marketing Timelines

Brett Meredith, Account Executive, Johnson & Dugan

One of the keys to a successful open enrollment is proper planning. The Marketing Timeline is a powerful tool that helps in the planning process by outlining the responsibilities of the carrier, the client, and the broker.

Acronyms in the Benefits Industry (or ABI)

In today's fast-paced world, we are always looking for ways to do more with less time. We even make an effort to get our message across with fewer words, using acronyms. Keeping up with the "code" can be daunting, so we have put together a list of the most common benefit industry acronyms.

Year-End Reminder: Imputed Income

Jody Lee, Corporate Training Manager, Johnson & Dugan

IRS Section 79

The first $50,000 of Group-Term Life Insurance is excluded from gross income pursuant to Section 79 of the IRS Code. Any Group-Term Life Insurance coverage in excess of that amount is taxed as imputed income under Table I of the section 79 regulations. The first Table I was published in 1966 and has been subsequently revised in 1983, 1988 and 1999.

The current Table I rate schedule (issued in 1999) is attached. Download TableIRates2005.pdf Please note that the imputed income tax can be added as additional income on a once-per-year basis on the year-end W-2, or it can be spread out over the affected pay periods if your payroll service offers this enhancement.

Termination of Coverage in Anticipation of Divorce

Sheri Ukoha-Ajike, Account Manager, Johnson & Dugan

A tricky “what if” scenario was recently presented to me by a Human Resource Administrator: An employee, Bob, tells you to cancel his wife's health insurance since they're divorcing; it should be final later this summer.

The question - Do you have to offer COBRA coverage to Bob's wife? And, if you do, does the COBRA coverage begin today or later when Bob's divorce is final?