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Updated 4/2/2010 |
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HEALTHCARE REFORM
We recommend that now is the time for
employers to begin a dialogue with their employees about the impact
of healthcare reform in order to counter widespread misinformation
and to quell anxieties about the availability, quality and cost of
future healthcare.
Even though some components of the
legislation won't take effect for several years and regulations
implementing the reforms have yet to be promulgated, employees need
the assurance that their benefits will remain intact.
For your reference we have listed below
the key components of the healthcare reform legislation.
Details include changes in the companion budget reconciliation bill.
Note - Changes become effective six months after passage.
2010
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$5 billion federal reinsurance fund
set up to reimburse employers with retiree health care plans 80%
of each claim between $15,000 and $90,000 for retirees ages 55-64. |
2011
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Group plan coverage extended to
employees' adult children up to age 26 if no other employer plan
is available. |
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Elimination of plan lifetime dollar
limits |
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Non-prescription drug costs no longer
reimbursable through flexible spending accounts. |
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Coverage required of pre-existing
medical conditions of children younger than 19. |
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Tax on non-health care distributions
from health savings accounts increases to 20% from 10%. |
2012
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Cost of employer provided health
coverage reported on W-2 income statements. Requirement
begins for 2011 W-2s distributed in 2012. |
2013
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Maximum FSA contribution capped at
$2,500. Future increases linked to annual rise in Consumer
Price Index. |
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Employer tax deduction for
prescription drug coverage provided to Medicare-eligible retirees
ended for amounts equal to federal subsidy to employers whose drug
plans are at least equal to Medicare Part D. |
2014
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Period before new full-time employees
can receive coverage limited to 90 days. |
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$2,000 penalty on employers with 50+
employee for each full-timer not offered coverage, excluding first
30 employees. |
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$3,000 penalty on employers with 50+
employees for each full-time worker whose premium contribution
exceeds 9.5% of family income and receives subsidized coverage
through state insurance exchanges. |
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Annual dollar limits on healthcare
expenses eliminated. |
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Exclusions for pre-existing medical
condition barred. |
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Increases cap on wellness program
incentive rewards at 30% of employe-only coverage and give
regulators authority to raise the cap to 50%. |
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Coverage must be offered to employees'
adult children up to age 26 even if other coverage is available. |
2018
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40% excise tax imposed on health
insurance premiums exceeding $10,200 for single coverage and
$27,500 for family coverage. Cost thresholds slightly higher
for plans covering retirees or employees in certain high risk
industries. In 2019, thresholds rise to match the increase
in the Consumer Price Index, plus one percentage point. In
2020 and succeeding years, thresholds match percentage rises in
the index. |
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HUMAN RESOURCE RISK
MANAGEMENT SERVICES AVAILABLE
As part of the
ABA-endorsed insurance program, Employment Practices Liability
Insurance policyholders are entitled to a comprehensive package of
risk management products and legal service at no additional cost
to their institutions. The services are provided by the
largest employment and labor law firm in the nation - LITTLER
MENDELSON, P.C. They include:
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Free Employment Law
Hotline Advice |
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Human Resources Form
Library |
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Model Employee
Handbooks |
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Employment Law Email
Alerts |
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Discounts on
Employment Law Training |
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Wage and Hour
Compliance Manual |
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Employment Policies
for Banks |
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Employment Law
Reference Manuals |
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Hire & Fire Manual |
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Respect in the
Workplace Booklet |
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Employment Law
Policies |
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Preventing Unlawful
Harassment Guide |
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Sixty Members Share
$277,296 in Profit Distributions from ABA Insurance Program
Sixty New Jersey Bank members that
purchase D&O and fidelity bond insurance from the ABA Insurance
Program will share $277,296 in profit distributions this year from
the program's reinsurer, American Bankers Mutual Insurance LTD.
Insured banks that are ABA members are automatically members of the
company.
This year, American Bankers Mutual
Insurance has declared a distribution of $4 million in underwriting
profits to 1,012 banks nationwide that participate in the program.
This is the program's 20th consecutive profit-sharing distribution -
$71,500,000 has been declared since the first distribution in 1991
based on the mutual program's success and profitability. The
total distributed to New Jersey banks is over $31,000,000.
Participating banks nationwide will receive checks this year ranging
up to $50,000 with $3,900 being the average amount.
The program offers directors &
officers' liability, financial institution bond, internet banking
liability, employment practices liability and other related
insurance products to community banks.
Bankers Cooperative Group, Inc, the
affiliated brokerage facility of the New Jersey Bankers Association,
presently brokers these coverages for 28 of the aforementioned 60
New Jersey financial institutions receiving profit distributions.
For additional information on how your institution can take advange
of BCG's services and qualify for future distributions, please
contact Rich Siderko at (908) 272-8500 ext. 616
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NEW FOR
2010
Supplemental Medicare Coverage for Retirees and Directors
Full
Medical and Rx Coverage
Effective
January 1, 2010, Medicare-eligible retirees/directors and their
eligible dependents of New Jersey Bankers Association member
employers, are being converted to the UnitedHealthcare Senior
Supplement group retiree plan and the UnitedHealthcare® MedicareRx
for Groups (PDP) plan to replace their current coverage.
These plans will provide comparable and, in some cases, a better
level of benefits compared to current NJBA sponsored Medicare Plans.
UnitedHealthcare Senior Supplement Plan Highlights
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Allows
you to see medical care from any physician and hospital that
accepts Medicare |
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Membership in a fitness program designed for seniors - at no
additional cost to you |
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OptimumHealthSM Programs that include 24-Hor NurseLineSM |
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EvercareTM
Solutions for Caregivers |
UnitedHealthcare MedicareRx for Groups (PDP) Highlights
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Includes
100% of the drugs covered by Medicare Part D |
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More
than 60,000 pharmacies in the network, including national,
regional and local chains, as well as independent neighborhood
pharmacies |
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Customer
Service available 24 hours a day, 7 days a week |
The new
program is priced significantly lower than existing NJBA sponsored
Medicare plans. The new lower rates will help reduce FASB
liabilities for employers presently contributing towards the cost of
their Medicare eligible retirees and directors.
SINGLE
MONTHLY RATE = $362.00
HUSBAND/WIFE (Both 65+) RATE = $724.00
The new
program is available to all NJBA member employers (subject to
minimum employer contribution levels) regardless of whether they are
participants in the NJBA sponsored Oxford healthcare program.
All
currently covered Medicare eligible retirees and directors are being
sent information on Monday, October 19, 2009 to detail the new
program and invite them to one of several informational meetings
being held at four locations throughout the State during the month
of November.
Human
Resources representatives are also being sent invitations for
training sessions.
Please
contact
Janice Besso-Tamecki at (908) 272-8500 ext. 608, for
additional information on the new program that can reduce premiums
for you and your Medicare eligible retirees and directors.
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2009 Employee Contribution Survey
Bankers Cooperative Group, Inc. (BCG) is pleased to provide
you the results of the 2009 Employee Contribution Survey. The results
were tabulated from the responses received from fifty (50) New Jersey
Bankers Association member institutions during the month of August 2009.
You will find the results presented in both the aggregate for all
institutions and further categorized according to six asset groupings.
Comparisons are also made where appropriate to the 2008 Employee
Contribution Survey. The number of respondents by asset category is as
follows:
Less than
$100M 8
$100M -
$199M 8
$200M -
$299M 9
$300M -
$499M 7
$500M -
$1B 7
Greater than $1B
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The 2009 Employee Contribution Survey was expanded from the
prior year to also include contribution levels for both retiree and
director classifications. Additionally, the survey results also provide
insight into base medical plan types offered by respondents, the minimum
number of works hours required for medical plan eligibility, the offering
of cash compensation for waiving medical coverage, and the popularity of
flexible spending account (FSA) offerings.
Please contact us with any questions. We would appreciate
any feedback so that we may build upon the current structure and improve
next year’s survey.
BCG is the leading provider of employee benefit programs
and administration for New Jersey’s financial institutions. Please see
the enclosed brochure for a complete listing of BCG’s products and
services.
Thank you to all institutions who participated in the
survey.
We appreciate and look forward to servicing your future
insurance needs.
Sincerely,
Richard Siderko
President/CEO
Click
here to see the survey results.
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Effective July 1, 2009: Memorial Sloan-Kettering Cancer Center (MSKCC)
becomes participating provider for both UnitedHealthcare and Oxford
platforms
We are pleased to announce
that as of July 1, 2009, Memorial Sloan-Kettering Cancer Center (MSKCC)
will become a participating provider for both UnitedHealthcare and Oxford
platforms. This includes MSKCC’s facilities in New York City and its five
outpatient facilities on Long Island, in Westchester County and in New
Jersey and its physicians.
Memorial Sloan-Kettering
Cancer Center
As one of the world's
premier cancer centers, Memorial Sloan-Kettering Cancer Center (MSKCC) is
committed to exceptional patient care, leading-edge research and superb
educational programs. The close collaboration between their physicians and
scientists is one of their unique strengths, enabling them to provide
patients with a highly-regarded level of care as they work to discover
more effective strategies to prevent, control and ultimately cure cancer
in the future.
What does this mean for
participants in the NJBA sponsored Oxford healthcare program?
Beginning July 1, 2009,
members and their dependents in either the Oxford Freedom or Liberty
networks will be able to seek care from MSKCC on an in-network basis.
Copayments, coinsurance and/or deductibles will be applied as with any
other medical service provided by a network provider.
What if members are
currently receiving care, or are scheduled to receive care from MSKCC
through another program?
Beginning July 1, 2009, if
members are currently receiving care from MSKCC, or are scheduled to
receive care in the future, they will be able to utilize MSKCC on an
in-network basis.
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