As a Small Employer, you may have already received your post card from the IRS notifying you of a TAX CREDIT of up to 35% of the premiums that you are (or may be) paying for the cost of monthly premiums toward your Employees Health Insurance. This TAX CREDIT is scheduled to increase to 50% by 2014.
Ex: 9 qualified employees, with average annual wages of $23,000. The employer pays $72,000 in premiums on behalf of the employees (subject to the average premium for the small group market), the credit would be $25,200 (35% x $72,000).
You must qualify for this benefit and if you would like to learn if you qualify, you can go to www.irs.gov, or feel free to please contact our office and ask for our Employee TAX CREDIT department.
Regrettably, we have been experiencing Health Insurance rate increases approaching 30%, and have assured our clients that we are doing everything possible to offer reasonable cost cutting changes to their existing plans, including our usual due diligence of shopping their plan(s) with other carriers, as we are licensed with all of the carriers in the State, and this year is no exception.
However, an additional issue has arisen for our New Jersey clients with Horizon and Aetna, and we suspect other carriers will be following their lead. In an apparent attempt to enhance their cost cutting, they have now informed us that we will no longer receive any commission/compensation unless we provide them with at least 75% of your business. Obviously, this eliminates the ability to provide you with the benefit of selecting or even continuing to offer multiple carriers, without being compensated, as we would be faced with the equivalent of “completely free service”, just a little worse than what our doctors are currently experiencing.
We have been informed that the State Insurance Department is aware of this issue and it is our preliminary suspicion that the current State Regulation that permits Small Group Employers (under 50 employees) the latitude of choosing Multiple Carriers, will be amended in the very near future, in which case, we will still be able to have Multiple Plans but only within a Single Carrier.
In light of the current economic conditions and in appreciation for the loyalty of our current and/or prospective clients and in appreciation for the privilege and confidence of their/your business, we will continue our support with exactly the same service that our clients have become accustomed to receiving, both with alternative plans and carriers, even if this means that we might forfeit our compensation. We would simply ask that you work with us and if we are able to provide similar coverage and rates with a Single Carrier, that you will be willing to do so.
In the interest of full and fair disclosure, we wanted to be certain that our clients and/or prospective clients understood the current conditions, as we have always and will continue to function on the basis of the highest integrity and openness with you. Please be sure to discuss this issue with your representative.
Acknowledging the economic condition and in appreciation of the decades of service we have enjoyed, in our role as Physician Employee Specialists, we would invite and welcome the opportunity and privilege of your business.