By Cathy Miller, Business Writer

With no magic bullet for the health care crisis, insurance agents still need solutions for their clients. Clients are losing jobs, premium rates keep going up and agents are tap dancing to keep clients happy. One possible solution is short-term medical insurance.

Through short-term medical insurance, insureds receive coverage for a short period of time for catastrophic illnesses or accidents. Depending on the state, policies range from 30 days to 12 months. This type of insurance is a temporary answer for life events where clients are without health insurance. It can also provide an additional prospect resource for agents.

Tapping Into Another Market

So, who are good candidates for short-term medical insurance? Here are a few examples:

• Students coming off their parents’ health insurance
• Recent college graduates looking for employment
• Individuals between jobs
• Unemployed workers who cannot afford COBRA premiums
• Employees in a waiting period for their new employer’s plan
• Part-time or seasonal employees without benefits

Premiums for short-term medical insurance can be 30 to 40 percent less expensive than individual insurance premiums. Savings may be even greater when comparing premiums to COBRA rates. Typically, there is also much less paperwork and review time for short-term medical insurance.

As noted in a previous post, young adults (age 25 to 34), are the most likely to be uninsured. Recent graduates coming off their parents’ health insurance may be a good market for the short-term medical insurance policy. So, too, are COBRA participants exploring a less expensive alternative.

Advantages and Disadvantages

This insurance product fills an immediate need. It is not a permanent solution to health care. Here are some of the advantages and disadvantages of short-term medical insurance.

Advantages

• Lower cost than more comprehensive health insurance
• Usually effective within 24 hours of submission of application
• Provides safety net for catastrophic illnesses/accidents
• Depending on policy, may be able to renew, usually up to 36 months

Disadvantages

• Pre-existing conditions are not covered
  *Note: renewing the policy is viewed as a new policy so conditions incurred during the first policy will be considered pre-existing conditions.
• Short-term medical policies are exempt from HIPAA. This means insurance carriers do not have to guarantee renewability, guarantee issue or waive the pre-existing condition limitation federally eligible individuals.
  Note: Short-term medical insurance coverage does qualify as creditable coverage
• Typically does not cover maternity, preventive care, physicals or immunizations

Short-term medical insurance is not a permanent solution, but it may be a viable alternative for clients and an untapped market for insurance agents.

Cathy Miller, Business Writer/Consultant has over 30 years of professional writing with a specialty in health care, employee benefits and wellness. Cathy also has an active Life/Accident/Health insurance license. Visit Cathy at her business writing blog, Simply stated business to Keep it simple, clear & uniquely yours.

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FOR IMMEDIATE RELEASE

InternetCE and the Professional Insurance Agents of North Carolina (PIANC) form Partnership.

Exclusive offer provided to PIANC Members.

Raleigh, North Carolina — February 10th, 2010 — InternetCE, a nationally approved provider of continuing education (CE) for insurance professionals, announced the immediate availability of an exclusive offer of its online CE courses for PIANC Members.  Please visit the continuing education section or benefits section of the PIANC website for the coupon code and more details.

Founder of InternetCE, Cliff Davis, believes continuing education should not be a requirement that agents dread. Cliff explains, “Everybody has to get their continuing ed. There is a difference in how you obtain it. At InternetCE, we try to make it a meaningful experience.”

Internet CE courses provide comprehensive, relevant material with everyday examples insurance professionals understand and relate to.  Key points, highlighted for easy reference, assist insurance professionals in preparing for course tests. The engaging material has many associations, groups and companies returning to InternetCE for all their insurance continuing education.
Course fees include an online course, exam, grading and certificate of completion. IntenetCE offers filing to the North Carolina Department of Insurance (NCDOI) at no additional cost.

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If you would like more information, please call 800-835-5314, email InternetCE at info@internetce.com or visit the website at internetce.com.

About InternetCE

Founded in 1991 by Cliff Davis, MBA, CLU, InternetCE has grown to be one of the top providers of Insurance Continuing Education in the United States. InternetCE’s clients include prestigious associations, groups and companies looking for steadfast professionalism and top-level expertise. Thousands of students and professionals have benefited from InternetCE’s convenient course offerings, including a wide variety of public and private training classes. More information is available at the company’s website, www.internetce.com.

InternetCE Affiliate Program Now Available.

Companies and organizations are now able to provide exclusive offers to their members and clients, while earning referral fees for the same.

Raleigh, North Carolina — February 4, 2010 — InternetCE, a nationally approved provider of continuing education (CE) for insurance professionals, announced the immediate availability of its online CE courses for affiliate members.

“We are excited!  For a long time, solid organizations and reputable companies have asked us for a way to offer tangible value and benefits to their members, via our insurance continuing education products, while earning a referral for the new business.  It’s really a win-win!  I’m really excited to partner with groups, far and wide, to learn, grow, and become the best we can be.”, said Aaron Loring Davis, InternetCE.com CTO.

Becoming an affialite is easy. InternetCE handles all customer support, filing, and regulations while you can concentrate on what you do best.

The referral fee is 15% of net profit. Affiliates can view their accumulated referrals via their control panel at any time.  No contracts are needed.

Follow these steps to get started:

1. Fill out the application to be considered for the program.
2. Your application is reviewed by InternetCE staff.
3. Upon approval, a unique ID and link set are provided to you as an affiliate.
4. Share the link via email, blog, website, social media,  etc. with those you wish to benefit from the offer.
5. A referral fee for every person that signs up is credited to your affiliate account.
6. InternetCE pays referral fees, once at least $50 has been accumulated, monthly via corporate check.

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If you would like more information, please call 800-835-5314, email InternetCE at info@internetce.com or visit the website at internetce.com.

About InternetCE

Founded in 1991 by Cliff Davis, MBA, CLU, InternetCE has grown to be one of the top providers of Insurance Continuing Education in the United States. InternetCE’s clients include prestigious associations, groups and companies looking for steadfast professionalism and top-level expertise. Thousands of students and professionals have benefited from InternetCE’s convenient course offerings, including a wide variety of public and private training classes. More information is available at the company’s website,www.internetce.com

I am proud to announce that through the partnership forged with the Auto Insurance Agents of North Carolina (AIANC), I have been afforded an opporunity to contribute monthly to their news letter.  A full text version of this month’s published material can be found here.

Streetwise is distributed to Insurance agents in North Carolina, through the AIANC via FYI Express.   It highlights tips, tools, and advice to agents looking forward to making a difference.

InternetCE.com and the AIANC formed a partnership to share business and create tangible value for each other in Novermber, 2009.  Both organizations also pledged to help agents in need complete their insurance continuing education.

I am really looking forward to sharing my experience and thoughts via this new channel.  I feel it is a win for both of our organizations.

Onward  and upward!

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Need your Insurance Continuing Education?..Click here to take your continuing education classes online.

Aaron Loring Davis is the CTO of InternetCE.com , provider of insurance continuing education, and Editor of this blog.  He holds a Bachelor or Science in Business Administration from the University of North Carolina at Wilmington and enjoys just about anything that can be done outdoors. Visit Aaron’s personal website at www.aaronloringdavis.com.

By Aaron Loring Davis

When we get our license, there are suggestions for all kinds of tools – a cell phone, business cards, a nice pen..the list goes on and on.  However, as the world looks toward the Internet for everything from wacky cat videos to yes, insurance, it is now essential to have a website.  Read that again – Essential!  The good news for the technically-challenged, it can be had in under 20 minutes and there is tons of support when you get stuck.  A self-managed site is yours for as little as $10 a year or for a bit more, you can have it built for you…seamless!

With staggering rates of websites and blogs created every day, the programmers of said technologies have made it nearly dummy proof.  Plus, when the relatively intuitive systems do not jive with our thinking, there are hosts of free resources to figure things out.  Support forums host a wealth of community knowledge and their members always seem to be willing to lend a hand.

Where does one start? There are two ways to go -

Self-hosted – You will manage your website and configure it yourself.  Don’t worry, it’s less daunting than it sounds.

1.     Register a domain name – Visit godaddy.com or register.com to reserve your address on the web.  Cost – $10 or less

2.     Pick a host – AFMU.com provides free websites and your registrar may as well. Cost – Free

3.     Install a template or blog software. I like to use WordPress to manage all of my sites, because they are so dang easy, but you may opt for Joomla or Typepad.  Cost – Free

Hosted - Tthe site will be hosted and managed by a third party

1.     Register with a hosting site – WordPress.com or Blogger.com. Cost – Free

- Or -

2.     Register with a premium agent website hosting company – Agent Methods has a superior product! Cost – $39 and up

What should it include?

1.     Welcome page with your message and instructions to find other resources

2.     Contact page with all of your contact details.  A lot of folks like to include phone numbers, mailing and office address, email addresses, links to other profiles such as Facebook and Twitter, and perhaps a contact form

3.     Information page(s) – This should include information about you, your company, and the products you provide.  It can be as brief or robust as you choose.

That just about sums it up.  Not so bad, huh?  Remember, it can be as simple as a business card or incredibly complex with calculators and multimedia.  The point is that as a professional salesperson, it is essential to reserve a place for you and your business on the web.

If you need a hand setting yours up, please do not hesitate to ask.  I am happy to help.

Onward and upward!

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If you appreciate these ideas, it’d be swell for you would share them (button below) or subscribe via the feed.

Click here for 5 reasons why you should subscribe!

Interested in sales?  Perhaps Insurance, Real Estate, or Finance is your calling..  Click here to get licensed.

Need your Insurance Continuing Education?..Click here to take your continuing education classes online.

Aaron Loring Davis is the CTO of InternetCE.com , provider of insurance continuing education, and Editor of this blog.  He holds a Bachelor or Science in Business Administration from the University of North Carolina at Wilmington and enjoys just about anything that can be done outdoors. Visit Aaron’s personal website at www.aaronloringdavis.com.

Model for Suitability in Annuity Transactions Adopted

By Cathy Miller, Business Writer

For many consumers, the bitter taste of investment fraud and a bad economy lingers. The times encourage increased scrutiny on investment products and advice. On December 21, 2009, the Life and Annuities “A” Committee of the National Association of Insurance Commissioners (NAIC) unanimously adopted a revised annuity suitability model.

Where It Started

With a goal of providing better protection for consumers, the NAIC organized a Working Group that reports to the Life Insurance and Annuities Committee. To improve the regulation of annuity sales, the Group worked on changing the 2003 version of the Suitability in Annuity Transactions Model Regulation.

By reviewing an individual’s risks and financial objectives, “suitability” measures if specific insurance products are an appropriate choice. The Working Group used many of the suitability requirements of Rule 2821 of the Financial Industry Regulatory Authority (“FINRA”). Rule 2821 requires a “reasonable basis” for concluding a variable annuity transaction is suitable and “reasonable efforts” in evaluating assets and the intended use of the annuity.

The following are some of the more notable changes made to the 2003 Model version and how those changes affect insurers and insurance producers.

Suitability Information

Much of the required information mirrors the requirements of FINRA Rule 2821, including age, existing assets, liquidity needs, liquid net worth, tax status, and the “intended use of the deferred variable annuity.” Something included that is not part of FINRA Rule 2821 is a requirement for information on the “financial resources used for the funding of the annuity.”

Impact of Change: At a minimum, the additional requirement may mean insurers need to change forms for recording all required information. The bigger question for insurers and insurance producers is if a securities license is required for annuity transactions.

Recommendations

Under “Duties of Insurers and of Insurance Producers,” the new Model adds requirements for recommending the purchase or exchange of an annuity. It adds disclosure requirements that “the consumer has been reasonably informed of various features of the annuity…” The revised model includes evaluation of the benefit to the consumer, the suitability of the annuity or an exchange of an annuity.

Impact of Change: The model requires a “reasonable basis” for recommendations. Insurers and insurance producers must determine how they will establish compliance with disclosure and evaluation requirements. Supporting evidence for regulatory audits is a major consideration.

Compliance Oversight

Provisions of the new model include requirements that prohibit an insurer from issuing “an annuity…unless there is reasonable basis to believe the annuity is suitable…” and notes “an insurer is responsible for compliance…”

Impact of Change: The model requires insurers to have a tighter rein on annuity sales including a review of recommendations prior to issuing an annuity, and training and compliance oversight of insurance producers. It transfers much of the ultimate responsibility of insurance producers’ actions to the insurer. Individual states may have different interpretations of the responsibilities of insurers and insurance producers.

What’s Next

The next step for the Model is a final vote by the full NAIC at its spring meeting in March. If finalized, each state must adopt the Model for it to be effective in that state. Considering the impact on insurers, insurance producers can expect administrative and process changes when selling annuities. Unless (or until) required to do so, the decision for obtaining a securities license is an individual one. Stay tuned to the actions of individual states in determining what’s next in annuity transactions.

The amended model and additional information is on the NAIC’s website.

Cathy Miller, Business Writer/Consultant has over 30 years of professional writing with a specialty in health care, employee benefits and wellness. Cathy also has an active Life/Accident/Health insurance license. Visit Cathy at her business writing blog, Simply stated business to Keep it simple, clear & uniquely yours.

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While representatives from the House and Senate work on merging their two health care reform bills, one major sticking point is the Senate’s proposed tax on “Cadillac” health plans. Supporters view the proposed tax as vital to controlling health care costs. Opponents include House members that proposed an income tax on high earners as an alternative for paying for health care reform. The strong opposition of labor unions is behind a scheduled meeting this week between the President and union leaders who oppose the tax.

What Makes a Cadillac

Health plans with high premiums are what create a Cadillac health plan. Specifically, the senate bill defines the high-premium plans as those with a total cost of $8,500 or more for individuals and $23,000 or more for a family. Included are total premium costs for health and dental benefits and total contributions (employer and employee) to flexible spending accounts (FSAs) or health saving accounts (HSAs). The bill proposes a 40% excise tax on the amount over those individual or family costs.

Typically, plans with high premiums have lower deductibles, lower copayments and higher benefit levels; thus, the name “Cadillac.” Opponents of the bill argue, however, that there are other reasons for higher premiums, such as the demographics in a group plan. Groups with older employees or employees with ongoing health issues generally have higher premiums.

Unions Assemble Opposition

According to the October 2009 Notes issue of Employee Benefit Research Institute (EBRI), union workers are much more likely to have employer-sponsored benefits (83%) than non-union members (58%). Union leaders see a threat to their long-fought battle for better benefits that they say were in lieu of higher wages. They contend the tax will not hurt the intended target of high-paid executives as much as it will older workers and employees of small companies. Since health care costs outpace inflation, opponents of the excise tax warn of an increasing number of employer-sponsored plans qualifying as Cadillac health plans.

Early reports indicate resistance from the administration to back off on the excise tax. Union representatives hope for a compromise with, at a minimum, a higher limit for qualification as a Cadillac health plan.

Employers Bracing for Change

Although the excise tax is on insurers, at least some of the costs are likely to be passed on to the employer. Other employers self-insure their health plans in which an excise tax would directly impact the employer.

According to a recent Mercer analysis of 3,000 employers, up to 19% of the health plans would qualify as a Cadillac health plan when the tax goes into effect in 2013. Employers predict future changes to their health plans to avoid the tax. Possible fallout includes the elimination of contributions to FSAs, HSAs or termination of dental plans.

In addition to employers and union members, insurers and agents watch not only the President’s meeting on this issue but the entire health care debate. It is far from being over.

But we also deliver solid private classes, tailored specifically for your office’s needs.

[vimeo 8561289]

Would it help you office’s efforts for us to simply to come to you?  Perhaps you know of a group of other agents or another office you’d be keen to hook up with to make it even cheaper?  We are happy to discuss further

Call us at 800-835-5314 or visit us at www.internetce.com for more details.

Thanks again and take good care!

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By Cathy Miller, Business Writer

More than likely you received this information throughout the year in one form or another. The following is a snapshot of 2010 limits for various employee benefits including defined benefits, 401(k), Health Savings Accounts and Medicare.

IRS Dollar Limitations on Benefits & Compensation

Defined benefit annual limit – $195,000

Defined contribution annual limit – $49,000

401(k) elective deferrals – $16,500

Catch-up contributions (age 50 or older) – $5,500

Qualified plan annual compensation limit – $245,00

Highly compensated employee limit – $110,000

Health Savings Accounts (HSAs) Limits

Self-only contribution annual limit – $3,050

Family contribution annual limit – $6,150

Annual additional catch-up contributions (age 55 or older) – $1,000

Minimum deductible for self-only High Deductible Health Plan – $1,200

Minimum deductible for family High Deductible Health Plan – $2,400

Maximum annual out-of-pocket for self-only – $5,950

Maximum annual out-of-pocket for family – $11,900

Medicare

Part A deductible – $1,100

Part B deductible – $155

Part B premium (maximum – based on income) – $110.50

Cathy Miller is an independent writer/consultant with broad experience in all aspects of health care and employee benefits including communication, wellness, legislative, carrier performance and financial management. Cathy currently holds an active life/health agent license.

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By

While the battle on health care reform rages on, there are a lot of individuals out there who need your help. The following are 10 critical timelines for health insurance. Missing them or not planning for alternatives after they occur can screw up your customer’s health insurance.

60-day COBRA election period – Employees have 60 days to decide if they want to continue their former employers’ health coverage by electing Consolidated Omnibus Budget Reconciliation Act (COBRA). The clock starts ticking after the coverage terminates.

45-day initial COBRA premium payment – The initial premium payment for COBRA is due within 45 days. After the initial payment, payments are due the first of the month, with a 30-day grace period.

18 months limit for COBRA benefits – Former employees, their spouses and dependents have up to 18 months of coverage if there is a loss of coverage under the employer plan. Some states, like California, offer an extension to federal COBRA coverage, usually at a higher cost to the covered person.

29 months limit for COBRA benefits – Former employees disabled during the first 60 days of COBRA coverage have coverage for themselves and qualified dependents up to 29 months.

60 days notice of disability determination – Disabled individuals who qualify for the 11-month extension described in #4 could lose that extension if receipt of notification to the plan administrator is not within 60 days of the date of disability determination.

36 months limit for COBRA benefits – Qualified spouses and dependent beneficiaries have up to 36 months of coverage if there is a loss of coverage due to the death of the employee, a divorce or legal separation and other certain qualifying events.

Nine months federal subsidy for COBRA – Employees involuntarily terminated are eligible to receive a 65% federal subsidy for COBRA coverage. After the nine months, employees pay 100% of the COBRA premium for continuation of coverage.

63-day break in coverage – An insured with more than a 63-day break in coverage is subject to pre-existing condition exclusions and limitations. An important note – insureds eligible for COBRA coverage must exhaust COBRA coverage first to be eligible for the waiver of pre-existing exclusions and limitations if purchasing an individual health insurance policy.

November 15 – December 31 – This is the enrollment period for Medicare health or prescription drug coverage.

January 1 – March 31 – If eligible for a Medicare Advantage plan, individuals can join a Medicare Advantage plan during January 1 – March 31 each year.

The sheer volume of data in our personal and professional lives makes it is far too easy to miss critical deadlines. With health insurance, the result could be a tragic loss of coverage. Make sure you and your customers know critical deadlines and prepare for continuous health coverage. Don’t let those dates pass you by.

Cathy Miller is an independent writer/consultant with broad experience in all aspects of health care and employee benefits including communication, wellness, legislative, carrier performance and financial management. Cathy currently holds an active life/health agent license.

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