Note: None of this should be taken as legal or tax advice.
In March 2010, the
Patient Protection and Affordable Care Act (PPACA) was signed into law. A portion of the law, titled the Community Living Assistance Services and Support (CLASS) Act, established a national program for individuals to voluntarily purchase long-term care insurance. The program was to be effective January 1, 2011.
Who is eligible?
Working adults may make voluntary contributions directly or through their employer toward long-term care insurance premiums.
What are the benefits?
Benefits paid will depend on the degree of a covered individual's impairment.
How is CLASS financed?
CLASS is financed through monthly insurance premiums paid by individuals. Benefits are paid through a trust fund of the premium payments and interest earned.
Note: None of this should be taken as legal or tax advice.
Premium only plans (POPs) are a great way for small businesses to save on taxes. Section 125 of the IRS code allows small businesses to make a simple change to the company’s payroll process that reduces employees' taxable payroll. Every employees' premium contribution through a premium only plan (POP) can be deducted from the overall taxable payroll amount.
Here’s 8 benefits small businesses and employees can expect with a Premium only Plan (POP) plan:
- Lower Employer Taxes - Every small business owner needs to take advantage of every tax break they can find. By using a premium only plan (POP), small businesses immediately lower taxes, which means more cash. A reduction in payroll taxes can be quite significant for a small business.
- Lower Administrative Costs - Many group plans feature high administrative costs. With a premium only plan (POP), health benefits costs drop to just $6-12 per employee per month.
- Easy to Set-up - Setting up a premium only plan (POP) is simple and small businesses can administer it online via the payroll system.
- Happier Employees - When employees make more money, they end up happier. By offering employees the ability to use a premium only plan (POP), a small business is automatically putting more money into employees' pockets. Small Businesses can use this to attract and retain quality employees.
- Lower Employee Taxes - In addition to lowering the businesses taxes, employees will also save income taxes with a premium only plan (POP). When they become a member of a premium only plan (POP), they will see a reduction in FICA, federal and state taxes.
- Lower Insurance Costs - For employees who may have trouble making contributions towards their health plan, a premium only plan (POP) plan can allow them to save money on their health plan through the benefits of lower taxes. Even though the premium amounts may be the same as a regular plan, the tax savings that they will experience can help make up the difference.
- Better Coverage - Even though a premium only plan (POP) offers many dollar benefits, it does not skimp on the health benefits. Employees will enjoy full health coverage from a company that they can trust.
- More Take-Home Pay - One of the most popular benefits of a premium only plan (POP) is the ability for employees to take-home more pay each month.
Note: None of this should be taken as legal or tax advice.
Experts suggest that employers' use of consumer-driven health plans has increased due to rising health insurance costs.
What do you think?
Note: None of this should be taken as legal or tax advice.
The
Affordable Care Act (ACA) requires health insurers to offer products through
health insurance exchanges. In most cases, the success of a state's exchange will depend on the condition of the state's existing health insurance market.
The
Kaiser Family Foundation recently released a report that evaluates the competitiveness of states' existing individual and small group health insurance markets.
The individual health insurance market in 30 states was dominated (50% market share or greater) by a single health insurance carrier in 2010. The small group market consisted of 26 states will greater than 50% market share.
How do you think health insurance exchanges will affect the competitiveness of the health insurance market in your state?
