Answer posted in Teams: Yes, some insurance carriers, especially those part of the Blue Cross Blue Shield network, allow enrollment with an Individual Taxpayer Identification Number (ITIN) accompanied by naturalization documentation or a U.S. passport. Answer from ChatGPT: Yes, it is possible for insurance carriers to allow enrollment using an…
FAQs
How should eligibility for group insurance be determined if some employees are part of a union?
Answer posted in Teams: When determining eligibility for group insurance in a company with unionized employees, it might be possible to exclude the union workers as an eligible class. The eligibility would then be based on the non-union employees. Answer from ChatGPT: When determining eligibility for group insurance in a…
What considerations should be made for a small group seeking voluntary life and LTD insurance with high limits?
For small groups seeking high-limit voluntary life and LTD insurance, individual policies might be more suitable than group coverage, especially if the group desires benefits beyond the typical scope of small group plans. The guaranteed issue limits and even the maximum limits with underwriting might be relatively low for groups…
If a company’s employee works in a different state than the business address, do they need to choose only PPO plans?
Answer posted in Teams: For an employee living in a different state than the business address, choosing a PPO plan might be advisable due to the broader network coverage, which is beneficial for out-of-state employees.
Are there specific state regulations that impact health insurance plans for businesses operating in multiple states?
Answer posted in Teams: Yes, state-specific regulations can significantly impact health insurance plans. Businesses operating in multiple states must be aware of and comply with these regulations, including network availability and state-specific insurance laws.
Can an employee with a valid waiver be counted towards minimum participation requirements for group insurance?
Generally, employees with valid waivers (those who decline coverage due to having insurance elsewhere, for example) are not counted towards meeting the minimum participation requirements for group insurance. Insurance carriers typically calculate minimum participation rates based on eligible employees who are not covered by another plan. However, this can vary…
Is it possible to switch to a different health plan with the same carrier mid-year?
Answer posted in Teams: Switching plans mid-year with the same carrier is generally not allowed unless the carrier permits it under certain conditions. Any changes in plans would typically happen during renewal periods or special enrollment events.
Can a business change its health plan mid-year?
Answer posted in Teams: Generally, businesses cannot switch health plans mid-year with an existing carrier unless the carrier has a special event or provision that allows it. The last notable instance of such an event was the “Grandmothering” event around 2014-2016.
If a small business owner’s spouse works at the company, should they be listed as a spouse or an employee for insurance purposes?
Answer posted in Teams: If a business owner’s spouse works at the company and there are several W-2 employees, the spouse can be enrolled either as an individual employee or as a dependent, depending on their preference and the specifics of the insurance plan.
How can a small business owner with only one employee determine eligibility for group health insurance?
Answer posted in Teams: Eligibility for group health insurance typically requires a minimum number of employees, often more than one. In the case of a sole employee working fewer than 20 hours per week, they would generally not be eligible for group benefits. Eric’s answer: To be eligible to set…
How can a Broker of Record (BoR) transfer be initiated for ancillary benefits like STD and voluntary life insurance?
Answer posted in Teams: To initiate a BoR transfer for ancillary benefits like short-term disability (STD) and voluntary life insurance, a transfer letter signed by the group is required, which should specify the new broker, the preferred effective date, policy numbers, and the carrier’s name. Answer from ChatGPT: While the…
Do HSAs require an employer contribution?
Generally, Health Savings Accounts (HSAs) do not require employer contributions. HSAs are designed to be flexible savings accounts for individuals with high-deductible health plans, allowing for pre-tax contributions to be used for qualified medical expenses. While employers can choose to contribute to HSAs, it is not a mandatory requirement. However,…
Can unused FSA funds be rolled over to the next year?
An employer can choose to offer a two-and-a-half month grace period to spend FSA funds or allow employees to roll over a limited amount of unused funds to the next plan year, but not both. For FSAs that permit the carryover of unused amounts, the maximum 2024 carryover amount to…
Can an employer contribute to an employee’s Flexible Spending Account (FSA)?
Yes, employers can contribute to an employee’s Flexible Spending Account (FSA), and the employer contribution does not count toward the maximum FSA contribution for the year (in 2024, the maximum contribution is $3,200). Instead, the employer contribution cannot exceed $500 or whatever amount the employee contributes to the account, whichever…
What are the FSA contribution limits for 2024?
For the year 2024, the contribution limit for Flexible Spending Arrangements (FSAs) has been set at $3,200. This represents a $150 increase from the 2023 limit. This adjustment allows employees to contribute more to their FSAs through payroll deductions, and these contributions are not subject to federal income tax, Social…
What are the HSA contribution limits for 2024?
The Health Savings Account (HSA) contribution limits for 2024 have been set as follows: For self-only coverage, the limit is $4,150. For family coverage, the limit is $8,300. Additionally, individuals who are 55 years and older are allowed a catch-up contribution of an extra $1,000. These limits are increased from…
Can Broker of Record (BoR) transfers be done for ancillary benefits like dental and vision?
Yes, Broker of Record (BoR) transfers can be done for ancillary benefits like dental and vision insurance, in addition to more traditional health insurance policies. The process of changing the designated agent or broker for these types of policies typically follows the same general procedure as it does for health insurance.
What steps are involved in a Broker of Record (BoR) transfer?
A Broker of Record (BoR) transfer is a process used in the insurance industry to change the designated agent or broker on an insurance policy. This process typically involves the following steps: Decision to Change Brokers: The policyholder decides to change their broker. This decision could be due to various…
What are the tax implications of employer contributions to an HSA?
Employer contributions to a Health Savings Account (HSA) have several tax implications, which are beneficial to both the employer and the employee: For the Employee: Pre-tax Contribution: Employer contributions to an HSA are not included in the employee’s gross income. This means these contributions are made pre-tax, reducing the employee’s…
How do employer HSA contributions affect employee plan selections?
Obviously, an employer that would like to contribute to the Health Savings Accounts (HSAs) of the company’s employees needs to offer an HSA-qualified High Deductible Health Plan (HDHP) as part of the benefits package. But the decision to make an HSA contribution can significantly influence employees’ selection of health plans…