NC Group HBUS Inc: Keeping an Eye on Health Care Reform around the US

Colorado General Assembly Passes SB 11-019 Exempting HRAs from Small Group Law 

Note: None of this should be taken as legal or tax advice.

The Colorado General Assembly has passed Senate Bill (SB) 11-019. The Governor is expected to sign the bill into law in the next few days. This Bill further encourages small employers to use Health Reimbursement Arrangements (HRAs) to fund tax-free employee health benefits, and specifically creates a safe harbor for employers that have not had group health insurance coverage in the last 12  months to offer individual health insurance policies through brokers at their workplace. 

The passage of SB 11-019 further highlights the State of Colorado's support of Health Reimbursement Arrangements and individual policy premium reimbursement.

 

To learn more about what is going on in Colorado - click here.

To learn more about what is going on in North Carolina - click here.

How to Get the Best Health Insurance Rates for your Employees or Family

Many people do not know this but insurance is regulated and the rates are the same for you no matter who you work with.  So going to one company directly does not save you money or enable them to advocate for you either.

It's obviously a wise choice to protect your family with family health insurance. So how do you get the best rates without compromising coverage and benefits?

You should first sit down and assess your entire family's needs and budget, then you can take that information and select what type of family health insurance policy you want.  A family health insurance policy will be more costly than an individual policy, but this is because you are covering more people and the scope of coverage is typically larger. A family health insurance provider will take into account each family member's gender, their age, any tobacco usage, and the state of residency to determine an accurate family health insurance quote.

The best advice is to compare several quotes from different insurers to ensure you are receiving the best available coverage for the cost.   

Seem confusing or like too much work? 

That's where HBUSA can help.  In one simple discovery meeting, we can answer all your questions.  We strive to help you gain understanding to feel better about this decision making process.

Being a broker, we are not bound or dictated by one plan or one company. We are determined to provide the best possible experience so that we might create a lasting relationship and further serve all of your Insurance needs in the same capacity.

Please take a second and request a quote - it could make a difference to your family or business budget that makes more sense than ever before!

Health Savings Accounts (HSAs) - Frequently Asked Questions

Q&A by: Rob Ferguson, Health Care Reform Specialist

Health Benefits US

The following are the most common questions I get asked all the time.  For more information, visit our website.

How much am I saving in taxes because of my HSA?  The answer depends on your marginal federal tax rate, your state income tax rate, how much you contribute and other factors. Individuals can claim a 2010 tax deduction of up to $3,050 for individuals and $6,150 for families, plus a $1,000 catch-up if you are between ages 55 and 65. Assuming a 28% federal tax rate, a 6% state tax rate and a maximum contribution made, the savings would be $2,091 for a family High Deductible Health Plan (HDHP) ($6,150 x 34%) or $1,037 for a single HDHP ($3,050 x 34%). In addition to the tax deduction, funds in an HSA grow tax free.   Note:  HSA contributions are tax deductible as an "above-the-line" deduction found on line 25 of the 2010 IRS Form 1040. "Above-the-line" means that you get the benefit of the deduction even if you take the standard deduction and do not itemize. 

What if my employer actually put the money in the HSA? If your HSA contribution was made pre-tax by your employer or through a Section 125 payroll deferral plan, you cannot deduct the HSA contribution on your tax return. You cannot deduct it because it was never included in your income. This is good news because you already got the tax benefit and it was pre-FICA and FUTA too.  

Can I still contribute to my HSA for 2010? Yes, individuals have until April 15th, 2011 to make their 2010 HSA contributions. Use our HSA Contribution Form to tell us what year the contribution is for 2010 or 2011.  For example, John has a $5,000 deductible family HDHP that he started January 1, 2010 but never got around to making an HSA contribution. He now (March 2011) wants to contribute $6,150 for 2010 and can do that.  He can also contribute another $6,150 for 2011 (assuming he is still eligible) for a total HSA contribution of $12,300 potentially all made on the same day.

How do taxes on HSA distributions work? Distributions for eligible medical expenses are tax free. The IRS however, still requires some reporting (consult a tax professional).  Also, you cannot use Form 1040EZ made a contribution to your HSA or took a distribution from your HSA in 2010.