Aetna to Withdraw from Small Employer Market in 2018

Due to mounting financial losses and an uncertain marketplace outlook, Aetna has made the decision to leave the Individual market in New Jersey.  As a result, New Jersey law requires a carrier to withdraw from the insured small employer market if it is withdrawing from the individual market.  As such, Aetna will withdraw all of its fully insured medical plans offered in the small employer health insurance market.

What does this mean?

  • Health insurance coverage for all NJ small employers (2-50 full-time employees) will end at midnight on the day before its renewal date beginning with January 1, 2018 renewals.
  • Aetna is required to cease selling new business with effective dates after 6/30/17.
  • Renewals will continue to be produced and serviced as usual through 12/15/17 renewal dates.

What other options exist for NJ Small Employers?

  • At this time Oxford, Horizon BCBS of NJ, QualCare and AmeriHealth continue to offer fully-insured plan options.
  • Aetna & CIGNA partially self-funded options for select groups.
  • Professional Employer Organizations (PEOs) options.

The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients and we continue to represent all the insurance carriers on behalf of our clients.

Be assured that we will follow up with our existing Aetna Clients & also welcome new clients in order to address any questions or concerns you may have.

Please feel to contact our office regarding this very important matter!

Beware of Look-A-Like HSA Plans!

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Some carriers are offering plans that appear to mimic HSA plans “BUT” their:

Minimum Deductible’s or
Maximum Out-of-Pocket Expenses

exceed the HSA limits, which will then disqualify you from even having a Tax-Deductible HSA Account.

On a more optimistic note, the American Health Care Act of 2017 (AHCA) passed House on May 4 and one of the many proposed changes would allow for a doubling of the current allowable HSA Contributions, which would then exceed currently allowable IRA Contribution levels and nearly approach 401k Contributions.

*Increases the maximum allowable contribution amounts to Health Savings Accounts (HSAs) to at least $6,550 for self only and $13,100 for all other coverage. (the current limit for 2017 is $3,400/$6,750)

The bill allows the use of funds if the account is open within 60 days of the HSA compatible HDHP effective date, 

Currently the account must be open before funds can be used for qualified medical expenses.

Permits husband/wife catch up amounts to be placed into ONE account,

Currently a separate “spousal” account must be open before funds can be used for qualified medical expenses.

Repeals the increased tax penalty of 20%, returning the penalty to 10%, for using funds for non-qualified medical expenses.

The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients on HSA’s since their inception as MSA’s (Medical Savings Accounts) in 1997 and we continue to advocate for the establishment and expansion of these accounts having recently applied for and received our Intellectual Personal Property Patent, “HSA-Transfer-K”, which would allow for the vested benefits of an individual’s Vested Retirement Plan Values to be transferred “tax-free” into your HSA Account.

You can review our Patent proposal, which is under review by the CBO, at our web site at: www.kirwanbenefits.com/hsa-transfer-k/

HSA CONTRIBUTIONS. IRS ANNOUNCES 2018 LIMITS.

On Thursday, May 4, the Internal Revenue Service (IRS) released the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs).

In addition to the chart below that compares the increases in Contribution Limits, there are two additional and very important pieces of this valued program that also increase next year and impact your Coverage in the areas of:

*Minimum Deductibles, and the
*Maximum for out-of-pocket expenses

Minimum Deductible for HDHPs
The IRS also raised the minimum deductible for qualified high deductible health plans (HDHPs). This is the first time since 2015 that the minimum deductible will go up. This also applies to stacked HRAs and FSAs.

In 2018, the individual coverage minimum deductible is $1,350, up $50; the family coverage minimum deductible goes up to $2,700, a $100 increase.

Maximum for Out-of-Pocket Expenses
The maximum limit for out-of-pocket expenses is going up in 2018, as well. The last increase was in 2016.Next year, those with individual coverage will have a $6,650 limit, a $100 increase. Account holders with family coverage see a $200 increase to $13,300.

Catch Up Contributions
The 2018 catch up contribution limit remains the same, at $1,000, for those 55 years of age and older.

2018 HSA Contribution Limits/Minimum Deductible/Out-of-Pocket Expenses

2017 2018
Contribution Limits Individual: $3,400

Family: $6,750

Individual: $3,450

Family: $6,900

Minimum Deductible for HDHPs Individual: $1,300

Family: $2,600

Individual: $1,350

Family: $2,700

Maximum Out-of-Pocket Expenses Individual: $6,550

Family: $13,100

Individual: $6,650

Family: $13,300

The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients on HSA’s since their inception as MSA’s (Medical Savings Accounts) in 1997 and we continue to advocate for the establishment and expansion of these accounts having recently applied for and received our Intellectual Personal Property Patent, “HSA-Transfer-K”, which would allow for the vested benefits of an individual’s Vested Retirement Plan Values to be transferred “tax-free” into your HSA Account.

You can review our Patent proposal, which is under review by the CBO, at our web site at:   www.kirwanbenefits.com/hsa-transfer-k/

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