New Rules Allow Short-term Plans to Last up to Three Years

| posted in Blog, Newsletter

The Trump administration has taken another step in its effort to roll out short-term health insurance plans by extending the amount of time such plans can be in effect. Under the new rule, which was issued August 1, short-term plans can be purchased for up to 12 months and policyholders can renew coverage for a maximum of 36 months. These controversial plans, though, do not have to comport with the Affordable Care Act. A few examples include not covering the ACA’s “10 essential benefits” or pre-existing conditions – and they can even exclude coverage for medications. Possible Impact As a…
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Crackdown on Employers Who Shunt Employees onto Medicare

| posted in Blog

The Centers for Medicare and Medicaid Services (CMS) is stepping up efforts to root out employers who have improperly put workers who were eligible for the company’s group health plan into Medicare. Under the law, employers are prohibited from offering incentives of any kind to a Medicare-eligible individual to enroll in Medicare instead of the employer’s health plan. Companies with 20 or more employees may not encourage covered employees and/or dependents to make this change in coverage. The fine for encouraging an employee or dependent to take Medicare is $5,000 per situation, but that’s not the largest potential penalty. The…
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