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Insurance News
Quick Carrier Updates
Oxford finalized the deal to acquire Hartford-based
MedSpan on March 12. The two companies are still operating separately, but
expect to combine operations this year. Oxford also announced that they expect
a 2% growth this year in their commercial health plan members, and their stock
has continued to rise over the last few months.
ConnectiCare
acquired Ameri-Health Health Plan, Inc., a New York HMO, in the last quarter of
2001. This will allow ConnectiCare to expand into four counties in New York,
with an additional 1,500 providers and 23 more hospitals added to its network.
ConnectiCare also recently opened a sales office in Norwalk as part of their
push to gain more business in Fairfield County.
Anthem Blue Cross
& Blue Shield of Connecticut has mailed cash or stock to its members as
part of the demutualization. The stock has increased since the company
officially went from a mutual company to a stock company in October of 2001. If
you have any questions on the demutualization process, please call the
Demutualization Information Center at
1-866-299-9628.
ConnectiCare recently updated their plans to
include a $5 copay for “web visits” with doctors. Some providers have
signed up for certain web sites that allow patients secure messaging to their
doctor’s office. This provides access for patients with non-urgent
symptoms and eliminates the potential hassle of back and forth telephone
communication with a doctor’s office by incorporating a complete symptom
wizard that gathers all the clinical information the doctor needs. The system
also allows patients to request appointments and prescription refills when it
is convenient for them, even if the doctor’s office is
closed.
CIGNA is working on an initiative to improve claims
handling and customer service. The four-year, $1 billion project is upgrading
technology to improve their service. All of the members have been put onto one
operating system to eliminate confusion and streamline information. This will
mean one toll-free number for all members, and will ensure that consistent
information is given to members.
As of April 1, United Healthcare
is offering true open access plans for small groups in Connecticut with unique
cost sharing arrangements. They have recently expanded their network in the
state, and expect that they will become more competitive for small groups in
the state. They also include a 24-hour assistance program, Care24, with all of
their plans at no additional charge to the employer.
5500: To File or
Not to File
recent change made by the IRS will
eliminate the need for some companies to file their annual 5500 form and
Schedule F. On April 4, 2002, the IRS released a bulletin suspending the
requirement that cafeteria plans file an annual 5500 and Schedule F. They have
suspended this requirement for employers maintaining group legal service plans
as described in section 120, cafeteria plans described in section 125, and
educational assistance programs described in section 127. The change takes
effect immediately and applies to any returns that have not yet been filed.
While the IRS has suspended the requirement effective immediately, they are
reviewing their reporting procedures and may institute reporting requirements
for these plans again in the future. If you have any questions as to whether or
not you have to file your annual 5500 form and Schedule F, please contact our
office.
401K: Playing
Catch Up
As of 2002, the pre-tax dollar limit
on 401k plans increased to $11,000. It is scheduled to increase by $1,000 each
year over the next four years, and then after that annual increases will be
indexed to inflation. This allows employees to put more aside for retirement,
but unfortunately, there are many who are behind in the battle to save.
However, don’t panic, because you may be able to make catch-up
contributions if you are age 50 or older. These contributions are made on top
of the current limits and must still be made through payroll deductions. The
amount of catch-up contributions allowed this year are $1,000, which will also
increase $1,000 per year over the next four years. Before you go too far, you
need to be aware that employees can only utilize this if the plan document has
been amended to allow it. If you are unsure whether your plan document needs
amending, please contact our office for more information.
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