Category Archives: Employee Health

Everyone in California MUST have Health Insurance for 2020

Everyone in California MUST have Health Insurance for 2020

In the upcoming year, California will be the first state in the country to offer state-funded tax credits to middle-class enrollees. And Californians who don’t enroll in health insurance will be faced with a new tax penalty.

These two statewide initiatives are set to be implemented in order to keep California’s health insurance premiums low in 2020. The tax penalty will partly fund the state-funded tax credits which is why premiums are expected to rise by an average of 0.8% next year, the lowest increase in the past few years compared to this year’s average increase of 9%.

Covered California, California’s official health insurance agency under the Affordable Care Act, estimates that these two initiatives—the state-based tax credits and the new state tax penalty—will bring in 229,000 newly insured Californians.

Eleven of the health insurers participating in Covered California will return next year, with Anthem Blue Cross expanding its offerings within the state. They are set to expand into Central Coast, parts of the Central Valley, Los Angeles County, and the Inland Empire.

However, depending on the region, not all eleven will be offered. California is divided into 19 pricing regions and each region will provide differing options. Rate increases will also vary, with some regions receiving higher rates than the statewide average and the others receiving lower. Nonetheless, nearly all Californians will have a choice of at least two insurers. And the final price will depend on the person’s area of residence, their income, the desired level of coverage, and their choice of insurer.

Covered California’s open enrollment for 2020 began on October 15, 2019 and is set to continue until January 31,2020, with these individual mandates going into effect at the start of 2020.

The penalty for not having insurance will be the same as the one under the Affordable Care Act, which was $695 per adult and $347.50 per child under 18 or 2.5% of annual household income, whichever is greater.

These penalties can amount to thousands of dollars a year. So, in order to avoid them and be eligible to receive tax credits, everyone in California must have health insurance for 2020.

To learn how you and your employees can enroll to avoid these penalties, contact CorpStrat for more information on the upcoming year.

Rising Health Care Costs – Is There Hope for Change?

Rising Healthcare costs

Company-provided health insurance is getting more expensive. As the most common form of health coverage in the United States, the cost of employee-sponsored coverage is expected to rise another 5% in 2020.

What does this entail? Well, when employees go in for a check-up, they may learn that their doctors will no longer be covered. Or they may notice higher deductibles being charged on their payroll. Either way, rising costs will affect millions of employees who rely on their company’s health insurance policy. In addition, employers will not be immune to these rising costs either—insurance bills they need to pay off will continue to rise, probably higher than wages and inflation.

While in search of a better solution, employers may have heard about the “Medicare for All” plan, a proposal by Democratic candidates to reform the system. But how feasible is this proposal?

The biggest obstacle of this proposal is the lack of a concrete solution—how do they plan to make the health insurance delivery system “more efficient”? Candidates are throwing around vague plans to “expand access to health care” without actually addressing how the care is going to being delivered.

One possible solution to the delivery system comes in the form of telemedicine. Employers have recently shown interest in covering telemedicine to improve access to care. Telemedicine has been a growing field in the health care industry, as seen through the announcement of Amazon Care. Through a virtual clinic, telemedicine makes healthcare more accessible and cost-effective. Physicians and patients can share information and receive a diagnosis without having to wait for an appointment and in the comfort of their own home. But some employees may be slow to adopt this technology since they are not used to accessing heath care this way.

Health care is a complex topic, but one fact is simple: employers want their employees to have access to the most efficient, high quality and affordable health care possible. Some companies have been bringing in more services to help employees navigate their benefits, navigate the delivery system, and understand their treatment options. However, these companies may want to cut down on these costs if they don’t want to charge higher deductibles, especially with the rising costs of health benefits in 2020.

Want to understand health care and what the New Year means for your company’s health insurance? Feel free to contact us at CorpStrat.

Another Reason Health Insurance Premiums Continue to Rise – The 2020 Health Insurer Fee/Tax

IRS Rising Costs Health Care

Rising health insurance premiums are no joking matter. Whether you are a business or individual, no one is immune to the rising costs and increasing exposures of health insurance.

Who and what’s to blame? Technology? Physician costs? Hospitals? Laboratories? Prescription costs? Consumer behavior? Fast Food? The economy? Multiple factors can be attributed to the rising premiums within the health care system, which represents 17% of the GNP. The health care industry is a large chunk of the economy, and the current political climate hasn’t made any progress in combating rising costs.

To understand what is causing this change, we must look behind the curtain.

Affordable Care Act

Since the inception of the Affordable Care Act (ACA) in 2010, also known as ObamaCare, the costs of health insurance have nearly doubled.

To help fund the creation and ongoing operation of the federal and state marketplace exchanges, the ACA requires that all insurers offering fully insured health insurance programs pay an annual Insurer Tax. Although the tax was initially $8 billion since its first year in 2014, the amount has increased each year. Now, in the upcoming 2020, IRS expecting to collect a little over $15 billion dollars cumulatively from all carriers.

When the ACA was first introduced, former President Barack Obama assured everyone that the ACA would lower costs: “If you like the plan you have, you can keep it. If you like the doctor you have, you can keep your doctor, too. The only change you’ll see are falling costs as our reforms take hold.”

However, in today’s present day, this has proven to be a misconception. In 2016, Bill Clinton summarized ACA’s impact perfectly: “So, you’ve got this crazy system where, all of a sudden, 25 million more people have health care and then the people who are out there busting it, sometimes 60 hours a week, wind up with their premiums doubled and their coverage cut in half. It’s the craziest thing in the world.”

How It Will Impact Plan Sponsors

The health insurance tax will impact all insurers offering medical, dental and vision insurance (called “covered entities”). If the IRS implements ACA’s Insurer Tax as planned, the fee is expected to add an estimated 3-4% on medical plan renewals.

No relief is in sight for counteracting these increasing premiums. Employers must rely on design strategies, contribution formulas, and other ways to bring vibrancy to their plans by consulting with their insurance brokers.

Contact CorpStrat to learn about how we can help you navigate this upcoming change in the health care industry.

Amazon Opening Their Own Healthcare Clinics – Will Your Company Be Next?

The latest news in the health care industry comes in the form of Amazon Care, Amazon’s in-house health care service. Announced on September 24, 2019, this pilot telemedicine program is part of Amazon’s effort to cut rising health care costs and improve care for employees.

Amazon Care is a virtual health clinic created in partnership with Oasis Medical Group to service Amazon’s Seattle-based employees and their families. It will provide in-person services for employees at home or in the office as well as prescriptions for medications. An Amazon spokesperson says, “We’re currently piloting a health care benefit designed to help Amazon employees get fast access to health care without an appointment, at the convenience of their schedules, at their preferred location (home, office or virtual).”

Amazon Care 101

Covered employees will be able to access Amazon Care conveniently through a mobile app and connect with a provider within minutes. Services include Care Chat, an in-app text chatroom that connects to a nurse, and Video Care, a video call service employee can use to talk to doctors or nurses face-to-face.

If further examination is necessary, the provider can use Mobile Care, a service that sends a nurse to the employee’s location. Mobile Care can be used to collect samples, conduct lab tests or physical exams, and administer treatment. Prescriptions will also be delivered to employees within two hours or can be sent to a pharmacy for pickup.

The app will only be available on weekdays from 8 a.m. to 9 p.m., and on weekends from 8 a.m. to 6 p.m. Amazon Care will not provide emergency care services.

Amazon and Health Care

Amazon Care is Amazon’s latest move within the health care industry. In 2018, the company acquired online pharmacy PillPack, and teamed up with Berkshire Hathaway and JP Morgan to create a new health care company. Earlier this year, Amazon also partnered with health care organizations interested in developing Alexa, the cloud-based voice service, to handle patient information.

With these moves and the recent Amazon Care, Amazon is quietly disrupting the health care industry. They are not only Amazon’s latest efforts to address rising health care costs, but also a path for them to secure a foothold in a growing industry. In order to compete with Amazon’s growing presence, industry giants must adapt digital technologies that enable convenience-driven access to care and combat rising health care costs. Contact CorpStrat to learn how to do this for your company.

It’s Open Enrollment Time: What’s Your Plan?

OPEN ENROLLMENT/ Man holding small blackboard on blue sky backgr

The tightest workplace environment ever has created a demand for companies to build robust benefits packages. Employees are looking to engage, have more choices, and looking to their employers to bring vibrancy to an item that most companies have previously simply delivered as part of their employment offerings and for employees, largely seen as dormant and as an entitlement.

Some ideas to bring vibrancy to your plans include looking at the newest dental plans – engaging employees in brushing campaign to promote good dental behavior, adding pet insurance, using digital tools to communicate your offerings and deploying pre-tax plans such as cafeteria Sec 124 and HRA/HSA’s to help them pay for medical expenses on a tax-favored basis.

Rounding out your benefits packages with low-cost plans such as life insurance, vision, dental, and EAP‘s can allow small companies to look BIG, and adding a host of voluntary benefits can make even the smallest employer build a package that rivals the largest.

Did you know? About 75% of companies in California go through their open enrollment in the 4th Quarter. That creates a bottleneck at the carrier for processing employee changes, receiving new ID cards, and billing issues. Not to mention if you decide to make a carrier change, then the underwriting and approval processes are delayed, and normal turnaround times are doubled.

That means it’s time to get an early jump on the market and work closely with your broker to determine the best plan and design for your company’s benefit plans.

Contact the experts at CorpStrat for a consultation and let us bring you into our 21st Century HR Platform.