May 2010 Newsletter

NISI TAKES STEP TO GO GREEN

Web enrollment can be a great option, especially if you have multiple state locations. Employees will need access to the Internet. Enrollment can be done as web enrollment, or you can have a combination of web enrollment and one-on-one enrollment with us.

WHERE TO SEND YOUR PAPERWORK

It can be confusing to know where to send which items. The following list can help your employees know where to send their information.

Wellness

  • Employees can fax their wellness benefits documentation, such as a doctor’s letter with results or an itemized bill, directly to USAble at 501-235-8400. USAble does not accept Explanation of Benefits (EOB) statements to verify wellness benefits.

Claims

  • Employees can e-mail all USAble claims to claims@usablelife.com.
  • Employees can fax USAble claims to 501-235-8416.
  • Employees can mail claims to:
    • USAble
      P.O. Box 1650
      Little Rock, AR 72203

Enrollment materials

  • If you have any voluntary insurance applications, please mail them directly to me to ensure proper setup. Please do not send your enrollment materials directly to the insurance carrier.

DID YOU KNOW?

May is Disability Insurance Awareness Month. Only about 39 percent of the 2.1 million workers who applied for Social Security Disability Insurance benefits in 2005 were approved. Sadly, the average benefit of just $1,063 isn’t enough to replace the average employee’s income. Workers’ Compensation covers only work-related disabilities; however, 73 percent of disabling accidents and illnesses aren’t work-related, according to the National Safety Council.

June is Sports America Kids Month.
Sports are a wonderful way for kids to gain physical fitness and coordination, and to learn teamwork and sportsmanship. Unfortunately, sports can also be an opportunity for accidents. By offering voluntary Accident Coverage, you can help employees better handle the costs associated with those unexpected sports injuries.

Our Accident Elite plan will help cover medical expenses from the first visit to the doctor, follow-up care and even hospitalization if needed. The wellness benefit on the accident plan can also be used for the sports physicals that are often required for kids to participate in sporting events. Please refer your employees to their policies for complete details.

FEWER EXPENSES FSA-eligible STARTING January 1

President Obama signed the Patient Protection and Affordable Care Act (PPACA) into law in March. PPACA contains provisions that will affect eligible expenses in flexible spending accounts, health reimbursement arrangements and health savings accounts.

Currently, employees can use flexible spending accounts to purchase thousands of over-the-counter (OTC) items. Starting January 1, 2011, that list of eligible OTC items will be reduced—regardless of when your plan year renews. However, if you have a prescription from your doctor, you may still be reimbursed for these items.

Go to www.discoverybenefits.com for a complete list of OTC items that are affected by PPACA. To make sure employees do not elect more flex money than they need, please share this information with your employees.

If you have questions, contact Discovery Benefits at 866-451-3399 from 7:30 a.m.- 7:30 p.m. CST, Monday through Friday or e-mail customer.service@discoverybenefits.com

HOW PPACA MAY AFFECT LONG-TERM CARE

The recently passed Patient Protection and Affordable Care Act (PPACA) includes Community Living Assistance Services and Supports (CLASS) provisions. Many details of the CLASS provisions are not yet defined and will be developed through regulation. We know you have many questions, and we’d like to share this information from Kaiser Health News and John Hancock Financial’s March 24, 2010, Health Care Reform and LTC: Class provisions. Ten million Americans need long-term care services, including 4 million people younger than age 65, according to Kaiser Health News.

The CLASS provisions, formerly known as the CLASS Act, establish a voluntary government program in which participants will pay a monthly premium of $180 to $240 and will be covered on a guaranteed-issue basis, according to John Hancock. After participants have paid premiums for five years, they will be eligible for modest benefits of up to $75 a day for their long-term care needs. The benefits are paid from the premiums collected, not by taxpayers. Premiums could increase annually.

Although often referred to as a long-term care (LTC) program, the program’s main purpose is to provide assistance to the working disabled, according to John Hancock. The program will provide cash to participants who suffer at least two limitations in daily activities, such as eating, bathing and dressing, according to Kaiser Health News.

The CLASS provisions will not go into effect immediately. First, the U.S. Department of Health and Human Services will work the terms of the program. Once established, it will be two years before the program goes into effect and five more years from that point before participants are eligible for benefits.

Your employees may wonder if they should consider the government plan instead of purchasing LTC insurance. We suggest your interested employees do not postpone purchasing an LTC insurance policy because of the lengthy timeframe we’ve mentioned and the fact that the government plan is highly limited. Delaying purchase could affect the cost of their policy and possibly their insurability.

John Hancock states if you purchase a private LTC insurance policy today, you would have the following benefits:

  • The purchase of an individual LTC insurance policy does not require that the individual be employed.
  • LTC insurance offers a broad range of benefits and is better suited to address the high cost of care.
  • LTC insurance does not have a minimum number of years an individual must pay premiums before benefits are payable; the coverage will begin paying benefits once the benefits trigger and waiting periods have been met.
  • Any unused LTC insurance benefits are carried over from year to year.
  • The policy provides access to care coordination services, quality providers and provider discounts.

Your employees may question if they should keep an existing LTC insurance policy. John Hancock cautions that employees should keep existing policies because of the “highly limited nature of the LTC benefits that will be offered under CLASS.” Also, there is potential for very high premiums for CLASS provisions due to adverse selection, according to John Hancock.

“No doubt the CLASS provisions are making more people aware of the issues regarding LTC and the need to be prepared,” said Group Long-Term Care Benefit Consultant Rhonda Peterson. “Don’t wait to purchase LTC because it could be two years before Class provisions go into effect. If you have questions or want to know more about Class, please contact me.”

You can contact Rhonda at 701-282-1595 or 866-392-4834 or e-mail rhonda.peterson@noridian.com.

DID YOU KNOW?

NISI is working with you one-on-one for the long run. Working with a benefits partner —not just a provider—can boost the overall success of your organization by more efficiently taking care of your employees. Whether it’s navigating enrollment details, using plan components or enhancing coverage when necessary, I will work one-on-one with each of your employees to secure and maintain the coverage that best fits their changing needs. Together, we help take care of your employees to improve the overall vitality of your organization.

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