Key Elements:

Available Immediately. The credit is effective January 1, 2010. As a result, small businesses that
provide health care for their workers will receive immediate help with their premium costs, and
additional firms that initiate coverage this year will get a tax cut as well.

Broad Eligibility. The Council of Economic Advisors estimates that 4 million small businesses are
eligible for the credit if they provide health care to their workers. Qualifying firms must have less than
the equivalent of 25 full-time workers (e.g., a firm with fewer than 50 half-time workers would be
eligible), pay average annual wages below $50,000, and cover at least 50 percent of the cost of health
care coverage for their workers.

Substantial Benefit. The credit is worth up to 35 percent of a small business’s premium costs in 2010.
On January 1, 2014, this rate increases to 50 percent.
Firms Can Claim Credit for Up to 6 Years. Firms can claim the credit for 2010 through 2013 and for any
two years after that.

Non-Profits Eligible. Tax-exempt organizations are eligible for a 25 percent tax credit in 2010. In 2014,
this rate increases to 35 percent.

Gradual Phase-Outs. The credit phases out gradually for firms with average wages between $25,000
and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.

Premium Cost Eligibility. To avoid an incentive to choose a high-cost plan, an employer’s eligible
contribution is limited to the average cost of health insurance for small businesses in that state.

Extensive Outreach. The Administration has initiated a nationwide educational campaign to ensure
small businesses and tax preparers are informed about the credit. Last month the IRS sent out over 4
million postcards to employers that may qualify, and it is also spreading the word at over 1,000 tax
workshops and small business forums, and through its email list of 175,000 tax professionals.

Importance of purchasing travel insurance when traveling out of the country

Health Care Reform information

Milwaukee, WI – July 23, 2009
National Survey Shows Consumers Prefer Agents When Shopping for=2 0and Purchasing Individual Medical Insurance
Those who bought through an agent were significantly more satisfied with their health plans than those who purchased insurance online
Independent study confirms that consumers want agents to help them understand their options and recommend a plan tailored to their needs
A recent online survey of more than 1,000 consumers found that those who purchased individual medical (IM) insurance through a professional agent were significantly more satisfied with their health plans than those who bought IM insurance online.

The independent study was commissioned by Milwaukee-based Assurant Health, a leading national provider of Individual Medical, Small Group and Specialty health insurance products. Some of its other key findings included:
64% of those who bought through agents used the word “helpful” to describe their experiences while only 36% of online purchasers used this term.
91% of those who purchased through an agent bought the plan their agent recommended.
31% of those shopping online described the experience as “time-consuming.”
Despite the recent proliferation of Web-based insurance brokerages, 62% of the survey respondents bought their insurance through an agent.
In addition, consumers who purchased through an agent were significantly more satisfied in regard to how easy it was to understand their options and choose a plan that gave them the best coverage tailored to their needs than those who purchased online.
After being presented with information on how agents can help, and advised that purchasing through an agent does not increase their costs, nearly one out of four of those who purchased online reported that, if they were going to purchase IM insurance today, they would buy it through an agent.
“This study confirms our long-held belief that independent insurance agents play a vital role in educating consumers and helping them make informed decisions about their health plans,” said Don Hamm, President and CEO, Assurant Health. “It also shows that consumers greatly value agents’ personalized services and recommendations.”

The website of CBS News (6/22, David) reports on the so-called “young invincibles,” described by insurance companies as the “19 to 29 year olds who don’t get health insurance with their jobs and don’t carry individual coverage, often because they consider it a major expense they can live without.” There are “13.2 million ‘young invincibles,’ who make up 30 percent of all uninsured – a number that’s expected to climb in this economy.” According to the CDC, young adults also “have the highest rate of injury-related emergency room visits of all age groups20- 46 percent of young uninsured adults reported having medical debt as a result.” In order to “entice more young people to purchase health insurance,” WellPoint Blue Cross Blue Shield “is offering far cheaper plans in a handful of states including in California” with “three low-cost options, ranging from $70 to $120 per month, which all include basic preventative care.”

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler revealed in a news conference this morning that last year’s 726,000 uninsured has spiked 21 percent to a record 876,000.
 
“This year in Washington state, nearly 1 in 5 people between the ages of 19 and 64 will have no health insurance,” said Kreidler. “These are not just statistics. They are people you know – family, friends, neighbors, colleagues. Maybe even you.”
 
According to Kreidler, 150,000 Washington residents are or will become uninsured this year. This number includes:
 
95,000 workers who lost health insurance when they lost their jobs.
Their 15,000 dependents who have lost coverage as well.
And the 40,000 people scheduled to be cut from the state’s Basic Health plan this year.
 
To help put this in perspective Kreidler listed the cities whose combined populations equal the new number of uninsured. They are: Tacoma, Spokane, Vancouver, Everett, Bellingham, Wenatchee, Yakima, and Port Angeles.
 
“As staggering as 876,000 uninsured sounds, this number does not include people with jobs, but whose employer no longer offers insurance, or those who drop coverage because they can no longer afford their employer’s health plan,” he added.  “The rising number of uninsured has always been a moral issue, but today it’s clearly an economic issue.”
“Unfortunately, there are no easy answers,” said Kreidler. “Today, we’re launching a new web resource guide on our home page (www.insurance.wa.gov). But I’ll be candid, it’s not enough. For many people there are no options.  The only meaningful solution is health care reform.”
Kreidler stressed that any successful reform must be universal and portable – not tied to employment. And it must include consumer choice and be built on the private system we have today.
“I’m hopeful Congress will deliver health care reform,” he said. “But I’m not sitting back and waiting. I’ve been meeting with leaders in our nation’s capitol and will continue to do so. Everyone needs to do their part. If we fail to act, we will see one million people living without health insurance in our state.”

The Los Angeles Times (5/24, Stewart) reported, “Big changes are coming to Medicare benefits received through some private plans,” and they “affect private insurers that provide coverage to Medicare enrollees under programs known as Medicare Advantage pla ns, which can sometimes offer a larger array of benefits for certain enrollees.” Recently, the Obama Administration “put providers on notice that reimbursements could fall, and plans with low enrollment could be scrapped next year as the nation deals with financial issues in Medicare and Social Security. If you’re one of the more than 10 million seniors enrolled in the plans…here’s what you need to do before open enrollment begins Nov. 15.” The Times suggested seniors review their plan and “don’t assume a plan closing is a negative.” Seniors should also “watch the departures,” since CMS spokesman Peter Ashkenaz said that, “although the government announced it may close plans, those are mostly rural plans that have relatively few participants.”

CNNMoney (5/19, Kavilanz) reports, “More employers are citing the recession for shifting a bigger portion of their healthcare costs to employees in 2009, an industry report said Monday.” Data from healthcare consulting firm Milliman’s fifth annual Milliman Medical Index indicated that “employees’ share of medical expenses rises 10.6 percent from last year,” while “employers’ subsidies on their20workers’ coverage increased about $500, or 5.4 percent, over the past year, the report said.” In the past, however, “the increase in employee costs has never exceeded the increase in employer costs by more than 10 percent.” Ron Cornwell, principal and consulting actuary with Milliman, said that this year, “Employers are struggling in this economic downturn.”