Stay Tuned for ACA updates and proposed changes

Stay Tuned for ACA updates and proposed changes

You may have noted talk of changes to the Affordable Care Act, widely known as Obamacare. This coming week Phyllis Merrill, MBA’s CEO and her team are traveling to Washington D.C. to be briefed on the current bill now in mark-up, and the likely changes. Stay tuned for details coming soon. We are committed to staying on top of breaking news, and ensuring that you have the information about how it will effect your business and...

ELAP has a new dedicated Spanish line

In the economic atmosphere of rising premiums and decreasing benefits, at MBA Benefit Administrators, we are transforming the healthcare landscape nationally, in part due to our partnership with ELAP, a medical bill audit and repricing company which provides fiduciary protection to our clients. This week ELAP is happy to announce that a Spanish speaking que specifically for our Spanish speaking member population is available. You can click here for a Spanish flyer to disseminate to your members.   Click here for the Spanish...
ACA Reporting Delay

ACA Reporting Delay

We received this email alert from the SPBA on November 18, 2016: ACA Reporting Delay IRS just released Notice 2016-70, extending the due date for furnishing to individuals 1095-C, Employer-Provided Health Insurance Offer and Coverage, as well as 1095-B from January 31, 2017 to March 2, 2017. The Notice also extends good-faith transition relief from penalties to the 2016 information reporting requirements. According to the Notice, Treasury has determined that there is no similar need for additional time for employers, insurers, and other providers of minimum essential coverage to file with the Service the 2016 Forms 1094-B, 1095-B, 1094-C, and 1095-C. The dues dates for these Forms remains February 28, 2017, if not electronically, or March 31, 2017, if filing electronically. The Notice extends transition relief from penalties under sections 6721 and 6722 to reporting entities that can show that they have made good-faith efforts to comply with the information-reporting requirements under sections 6055 and 6056 (both for furnishing to individuals and for filing with the Service) for incorrect or incomplete information reported on the return or statement. This relief applies to missing and inaccurate taxpayer identification numbers and date of birth, as well as other information required on the return or statement. No relief is provided in the case of reporting entities that do not make a good-faith effort to comply with the regulations or that fail to file an information return or furnish a statement by the due...
In Honor of our Veterans

In Honor of our Veterans

MBA would like to express its gratitude to the veterans that work for MBA and all those who have given and risked so much serve and allow us to have the freedoms and rights that we enjoy as a nation today. Veterans currently with MBA include: Vice President, Vince Klingler, who served in the Utah Army National Guard and its Chief Security Officer. Keith Klingler who also served in the Utah Army National Guard, which included his participation in Operations Desert Shield and Desert Storm stations in Saudi Arabia. A sincere thanks to all the selfless veterans that have served and continue to give to our...
October Conference Report

October Conference Report

October 17-19th – Representatives from MBA Benefit Administrators attended a national conference in Minneapolis presented by the Society of Professional Benefit Administrators (SPBA). The aim of the conference is to inform members of recent industry trends and to encourage a forum where other Third Party Administrators and other industry related companies may address current concerns and solutions. This year the conference discussed a large amount of information which dealt with cybersecurity. There were both general sessions on cybersecurity as well as several break-out sessions which dealt with the more technical aspects of the subject. MBA was pleased to have one of its own, Keith Klingler (MBA’s Chief Security Officer), requested to help head a forum on what companies are doing to prepare for the upcoming Phase 2 of the OCR audits. The product was, by the accounts of the host as well as several attendees, a success. Bringing the problems associated with the upcoming Office of Civil Rights (OCR) audits into a more manageable and down to earth approach. The efforts of Klingler and his team were successful in bringing about a new forum on the SPBA website dedicated to the security and compliance needs of its members. MBA, a member of the Society of Professional Benefit Administrators, keeps abreast of the constantly changing climate of the Self-Funded Insurance world. Using the information from these and other conferences allows MBA to stay up-to-date with upcoming rules and regulations. It also allows MBA the opportunity to voice opinions to the regulators as to the potential impact that the regulations may have on our clients. This has been proven to be...
ACA Reporting Requirements

ACA Reporting Requirements

Staying in the know is a crucial component to running a successful business. Last week the U.S. Treasury and the IRS announced an ACA reporting requirements extension for distributing information to employees. While the IRS is prepared to receive documentation of health coverage by employers, because of feedback from businesses, the required deadlines to report this information to both employees and the IRS has been pushed back.  According to a press release, Assistant Secretary for the Tax Policy, Mark Mazur commented, “ As part of our efforts to implement the ACA in a careful and thoughtful way, the Treasury Department and the IRS are responding to feedback from private sector businesses and insurers and providing additional time for employer and insurer reporting under the ACA for the first year,” We have made a commitment at MBA to keeping you informed about regulation milestones, and updates to the ACA that impact your business. If you are unsure how this information impacts your business, please contact our office today.   Employers and Issuers: By March 31, 2016
 Employers must fill out, address and mail employees with the 1095-C  forms reporting on offers of health coverage and coverage provided. By May 31, 2016 (if filing by paper) Employers must fill out 1094-C  and 1095-C form and submit them to the IRS. June 30, 2016 (if filing electronically) Employers must fill out 1094-C  and 1095-C form and submit them to the IRS. To receive a one month extension for IRS transmission fill out Form 8809.  Requirements remain the same for employee form delivery date. Press...
MBA Benefit Administrators shines new light on solutions to the runaway healthcare costs crisis.

MBA Benefit Administrators shines new light on solutions to the runaway healthcare costs crisis.

Sometimes history provides the best perspective and subsequently solutions to life’s most challenging problems, for example runaway healthcare costs. Read on to learn a history lesson on the beginning of PPO networks and how the disconnect between medical services and the cost of service were born. The future is best planned for by looking in the past. Phyllis Merrill, CEO of MBA Benefit Administrators and the creator of The Open Solution describes in her book, “UnCommon,” co authored by Brian Tracy, the history of medical insurance and how that impacts how we have reacted to and inflated the cost of medical care today.  “The first medical insurance was an Indemnity Plan that paid a set mount for a specific type of medical event. Then came Major Medical, which at the time seemed revolutionary, and gave people a way to cover the cost of catastrophic care for the price of a monthly premium. It was up to the insurance company to pay for medical care and being an informed and responsible consumer was now not possible.” In most cases you cannot even find out the cost of a service at a hospital before it is provided. There are no price comparisons, or shopping around. Because everyone is entitled to have medical insurance, there is a sense of entitlement for the payment of medical bills regardless of the cost. Merrill goes on to say, “This created a disconnect between the billing and the payment of the bills. The disconnect is even greater now that it has become a right to have all major medical expenses paid no matter the cost.” The...
Don’t Be Caught Unaware, the Cadillac Tax Is Waiting To Time In

Don’t Be Caught Unaware, the Cadillac Tax Is Waiting To Time In

It’s all about taxes. According to the Affordable Care Act of 2010, requiring the purchase of a product is illegal, but mandating a tax for not purchasing that product is legal. At this point, as a business owner, insurance broker, or HR professional, you have weathered the first season of regulations that have come, but are you prepared for the next season of changes? At MBA we want to make sure that you are ahead of the forthcoming benchmarks and understand that another tax mandate is coming right around the corner. Cadillac automobiles have long been the luxury standard in their industry. In the medical benefits industry the term Cadillac plan describes a high-end, expensive medical benefits provided by employers. Medical insurance, and other perks have been considered part of the employee’s overall compensation package, but it is a payout that is not taxed. Employers can offer additional insurance and incentives to their team, without paying taxes on that expenditure. All of that is about to change and we don’t want you to be caught off guard. The fine print of the Cadillac tax In 2018 the Affordable Care Act will begin placing a 40% tax on the cost amount above and beyond $10,200 for an individual’s coverage and $27,500 for a family coverage. This cost does not include stand alone dental and vision plans, but it does include the cost for; insured and self funded group medical plans, wellness programs, flexible spending accounts, health savings accounts, health reimbursement accounts, archer medical savings accounts (all pre-tax contributions), on-site medical clinics, executive physical programs, pre-tax coverage for a specific illness...
Frequently Asked Questions About the Cadillac Tax

Frequently Asked Questions About the Cadillac Tax

What is the purpose of the Cadillac tax? First, the tax acts as a source of revenue to fund the costs of the ACA; second, to encourage the reduction of costs in providing health care; and third, to eliminate the tax benefits for employers who compensate their staff through benefits, rather than directly with taxable income. Who is mandated to carry the cost of this new tax penalty? While the technicalities of who pays the cost of this Cadillac tax are indicated below, it is important to note that anytime there is an associated cost to a provided benefit, the individual or business responsible for that benefit will ultimately pay the cost, either directly, or down the road, with an increase cost for the service. The responsible party: Self-funded: Employers calculate and “the person who administers the plan benefits” pays. Fully Insured: Employers calculate and insurers pay. HSAs and Archer MSAs: Employers calculate and employers pay. Is anyone trying to repeal the Cadillac tax or is it set in stone? Right now there are two measures in Congress that are intended to repeal the 40% tax; H.R. 2050, sponsored by Representative Joe Courtney and H.R. 879, sponsored by Representative Frank Guinta.  In addition the Alliance to Fight the 40 is a coalition of public and private organizations and businesses that support employer sponsored health benefits and is working to eliminate the tax. How much am I going to have to pay in taxes after the 2018 start date? The 40% tax will go into effect for the amount over $10,200 for an individual and $27,500 for a family. For...
Employee Benefits Policies of 7 Presidents: a Historical Perspective

Employee Benefits Policies of 7 Presidents: a Historical Perspective

By SPBA Active Past President Fred Hunt – September 8, 2015 As a starting basis, it is important to remember that employee benefits are a political orphan.  Neither party nor left nor right are a natural enemy or friend of employee benefits.  The good news is that we are not automatically on anyone’s political hit list.  The bad news is that we have no natural reliable defenders.  However, health benefits are the fattest and most tempting of fat cats in the eyes of all politicians because the tax treatment is, by far, the largest “revenue loss” (money escaping taxation) in the US budget.  That is why we keep telling you that YOU need to shape public opinion in your communities (which is the true basis of political opinion). Looking at past Presidents:  SPBA has had opportunities for close insider interaction with 7 Presidents.  Their views on employee benefits and the impact they had is very different from what conventional wisdom and “history” assumes. Gerald Ford Gerald Ford took office under the cloud of the Nixon resignation and pardon.   As he told his close Congressional colleagues, he needed to sign something quickly to bring the nation together.  What we now know as ERISA had been percolating in Congress for 10 years as truly bi-partisan legislation.  It got rushed into law and a White House signing made the public feel better and looking forward (though the employer/insurer benefits community dubbed such strict fiduciary duty, limitations and reporting was Every Ridiculous Idea Since Adam which would kill current plans and prevent any new plans from every being created). An interesting trend was...
Savings Calculator

Receive your FREE Savings Estimate!

Learn what you can expect to save.


    Tell Us About Your Current Plan
 

×


Download the FREE Report

"Save A Fortune on Your Group Health Insurance Costs"

 
 

 
We will never sell, share or distribute your information. By downloading this report you are granting us the right to follow up with you.
 
 
×
The Open Solution Founder Phyllis Merrill

 

×
Ask A Question
 
 
    Ask a Question
      Don’t see your question answered here, send us your own.
 
×