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September 2009

September 25, 2009 by  
Filed under Newsletter


Exec-U-Care Offers Owners and Officers the Benefits of an FSA
A unique product from Lincoln Financial offers the same tax benefits of a Section 125 plan to company owners and corporate executives. Exec-U-Care is designed to supplement a company's major medical plan by reimbursing executives and eligible dependents for health care expenses not covered by the basic group plan. Expenses such as deductible, coinsurance and copayments can be reimbursed directly to qualified executives. Payments made to participants are, typically, tax free AND tax deductible as "premiums" to the corporation. Talk to your broker for additional details about this unique tax-advantaged product.

Exec-U-Care Website

 
President Obama Endorses an LSA Reform Idea
When asked recently about the idea of taxing sugar beverages and/or "fast food", President Obama would not rule out the tempting source of tax revenue. His, somewhat, surprising response echoes what we at LSA have been suggesting for quite some time. Studies have found that up to 75% of current medical expenditures can be avoided or prevented. The billions spent each year to treat what amounts to unhealthy lifestyle choices is placing an unsustainable burden on community insurance rates. If you accept the principal of a "sin tax" then can a tax on sugar and transfat be far behind?

Also, check out the "20 worst drinks in America" link, it's a great eye opener!

Should Soda Be Taxed?

Worst Drinks in America

 
 
Medicare Part D Credible Coverage Notices Due No Later than November 15th
By November 15, 2009 (beginning of the annual Medicare coordinated election period), groups that offer prescription drug coverage to employees or retirees should notify their members of the creditable coverage status of their plan and of possible penalties for late enrollment in Medicare Part D if their current coverage is not creditable.

As defined by the Centers for Medicare & Medicaid Services, coverage is considered "creditable" if its actuarial value equals or exceeds the actuarial value of standard prescription drug coverage under the Medicare prescription drug benefit.

The Medicare Modernization Act imposes a late enrollment penalty on individuals who do not maintain creditable coverage for a period of 63 days or longer following their initial enrollment period for the Medicare prescription drug benefit.

Most prescription drug plans qualify as "creditable". If you have questions about your plan, please contact us at Larry Sherwood & Associates.

Department of Labor Link

 
 
 
Larry Sherwood & Associates provides benefits consulting & insurance services to over 300 companies just like yours.
 

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