S&S Benefits.....Opinion,
Hearsay & News Review
Trustmark has agreed to take
over the Destiny Health book of business through a reinsurance and service
agreement effective June 1st. Destiny insured a block of primarily
small group employers in Illinois. Destiny has decided to focus on its Vitality
wellness programs and had lost the backing of Guardian as a partner. Destiny
never really got off the ground as an insurance company despite its big splash
on market entry with the backing of its South African parent.
Unicare is cutting ties with Magellan Behavioral Health effective
July 1st for its HMO and will instead directly manage the mental
health care portion of the HMO plan. United Healthcare has changed the name of
its Fiserv TPA to UMR. Healthscope
has acquired the TPA CenBen
USA
. In
Chicago
, Advocate Health has offered $180M
to buy
Condell
Medical
Center
.
According to an Aon survey,
employee’s median contribution for family health coverage is now $3,120, a 15%
increase from 2007 and 22% increase from 2006. Based on a median household
income of $48,000, the amount is nearly one month’s salary. Median monthly
contributions for coverage for 2008 averaged $66 for EE only, $160 for EE+1,
$186 for EE+CH(ren), $189 for EE+SP, and $260 for EE+Family. Employer
contributions for the 1,100 companies surveyed were: EE-$326, EE+1-$628,
EE+CH(ren)-$574, $633-EE+SP, $863 for EE+Family. The average increase in
employer costs was 10%. The number of employers offering some sort of wellness
program tripled. Meanwhile, Milliman says the 2008 medical cost for a family of
4 is $15,609 (up from $14,500) for a PPO plan including out of pocket costs and
contributions.
Business groups in
Maine
have formed a coalition to fight taxes implemented to fund the state’s
failing DirigoChoice health plan to help cut the number of uninsured in the
state. The program was to substantially cut the 190,000 uninsured residents 5
years ago. The program is costing $50M to cover just less than 13,000 people.
The IRS has released the 2009 adjustments for HSA plans:
HDHP Minimum
Deductible Amount
|
2008
|
2009
|
Individual
|
$1,100
|
$1,150
|
Family
|
$2,000
|
$2,300
|
HDHP Maximum
Out of Pocket
|
|
|
Individual
|
$5,600
|
$5,800
|
Family
|
$11,200
|
$11,600
|
HSA
Statutory Contribution Amount
|
|
|
Individual
|
$2,900
|
$3,000
|
Family
|
$5,800
|
$5,950
|
Catch-Up
Contributions (age 55 &>)
|
$900
|
$1,000
|
From a Texas newspaper- over
the past three years over 7,000 M.D.s have flooded into Texas due to tort
reforms passed in 2003 and 2005 and the State Board of Examiners has a backlog
of 3,000 doctors waiting for approval. Tort reform capped medical malpractice
awards for non-economic damages at $250,000. There are over 30 malpractice
carriers competing for business in Texas and the Texas Medical Liability Trust
has slashed premiums by 35%. Similar
results were expected in
Illinois
and malpractice premiums were going down, but recent court rulings have
challenged tort reform that was previously signed into law.
|