Insurance News

  • Reminder: Form 5500 Is Due by Aug. 1, 2022 for Calendar Year Plans June 28, 2022
    Employers with employee benefit plans that operate on a calendar year basis must file their annual reports (Forms 5500) for 2021 with the Department of Labor (DOL) by Aug. 1, 2022.
  • Key Judicial Decisions Affect California Wage Payment Claims June 23, 2022
    The WinCo And Viking Decisions Set Limits On Wage Payment Claims In California Two federal courts—the U.S. Supreme Court and the 9th Circuit Court of Appeals—recently ruled on cases involving wage claims by employees. These decisions set
  • Colorado Expands Safety and Health Whistleblower Protections June 23, 2022
    Employer Retaliation Is Now Prohibited Regardless Of Whether There Is A Public Health Emergency  On May 31, 2022, Colorado adopted Senate Bill (SB) 22 97 to expand whistleblower protections for workers. Before this law was adopted, state
  • Illinois Expands Employee Bereavement Leave Requirement June 15, 2022
    Illinois has amended the state’s Child Bereavement Act and renamed it the Family Bereavement Leave Act. The amendments provide additional reasons for bereavement leave, including for the deaths of employees’ family members and for reasons relating to failed pregnancies, fertility treatments and adoptions.
  • IRS Raises Standard Mileage Rates for Second Half of 2022 June 9, 2022
    For the first time since 2011, the IRS has made a mid-year adjustment to the optional mileage rate used to calculate the deductible costs of operating an automobile for business and certain other purposes. The agency said the change is in recognition of recent gasoline price increases.
  • Connecticut Adopts Data Privacy and Online Monitoring Act June 9, 2022
    The Act Regulates Data Collection, Storage And Usage Of Personal Information And Creates New Consumer Privacy Rights  On May 10, 2022, Connecticut adopted the Data Privacy and Online Monitoring Act (the Act) to regulate the collection, storage and usage of
  • Maryland Extends Data Breach Notification Requirements to Genetic Information June 9, 2022
    Employers That Own Or License Personal Information Of A Maryland Resident Must Implement Reasonable Security Procedures And Practices On May 29, 2022, Maryland amended its Personal Information Protection Act (PIPA) to include genetic information in the definition of personal information.
  • Connecticut Issues Model Notice for Employee Leave June 8, 2022
    The Connecticut Department of Labor has published a model notice of employee rights under the Connecticut Family and Medical Leave Act (CT FMLA) and the Connecticut Paid Leave Act (CT PLA). Employers may use the model notice to satisfy the notice requirement taking effect on July 1, 2022.
  • Illinois Amends Meal Period Requirements June 1, 2022
    The Bill Also Creates New Employer Notification Requirements On May 13, 2022, Illinois adopted Senate Bill (SB) 3146 to amend meal break provisions of and create notification requirements under the Illinois One Day Rest In Seven Act (ODRISA). The amendments
  • California Supreme Court Rules Employers Must Properly Pay Meal and Rest Period Premiums June 1, 2022
    Employers Need To Accurately Identify And Account For Missed Meal And Rest Periods On May 23, 2022, in Naranjo v. Spectrum Security Services Inc. (Naranjo), the California Supreme Court unanimously held that meal and rest period premium pay is subject to the

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In 2014 it’s the law that with few exceptions everyone must maintain insurance that meets minimum essential coverage. While for the most part insurance rates have not come down the good news is there are significant subsidies available that both help with paying for coverage and for helping to meet up front and out of pocket expenses.

Who is eligible for the premium tax credit?
An individual is eligible for the premium tax credit if he or she meets all of the following requirements:

  • Purchases coverage through the Marketplace.
  • Has household income that falls within a certain range.
  • Is not able to get affordable coverage through an eligible employer plan that provides minimum value.
  • Is not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE.
  • Files a joint return, if married.
  • Cannot be claimed as a dependent by another person.

Glandon Insurance has their FFM Certification and can help you purchase coverage through the exchange.

To find out if you may be eligible to receive either premium or cost sharing subsidies: Subsidy Calculator

 

Who is subject to the individual shared responsibility provision?
The provision applies to individuals of all ages, including children. The adult or married couple who can claim a child or another individual as a dependent for federal income tax purposes is responsible for making the payment if the dependent does not have coverage or an exemption.

When does the individual shared responsibility provision go into effect?
The provision is effective as of January 1, 2014 and applies to each month in the calendar year.

In order to provide transition relief during the first year the penalty tax applies to individuals, an employee (or an individual having a relationship to the employee) who is eligible to enroll in a non-calendar year eligible employer-sponsored plan with a plan year beginning in 2013 and ending in 2014 will not be liable for the penalty tax for certain months in 2014. The transition relief begins in January 2014 and continues through the month in which the 2013–2014 plan year ends.

What counts as minimum essential coverage?
Minimum essential coverage includes employer-sponsored coverage (including self-insured plans, COBRA coverage and retiree coverage), coverage purchased in the individual market, Medicare Part A coverage and Medicare Advantage, Children’s Health Insurance Program (CHIP) coverage, and certain other types of coverage.

Calculating the Payment
The penalty in 2014 is calculated one of 2 ways. In general, individuals will pay whichever of the following amounts is higher:

  • 1% of the individual’s yearly household income above his or her applicable filing threshold (the amount of gross income that triggers the requirement to file a federal income tax return). The maximum penalty is the national average yearly premium for a bronze plan.
  • $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

The fee increases every year. In 2015, it increases to 2% of income or $325 per person. In 2016 and later years, the fee is 2.5% of income or $695 per person. After that it is adjusted for inflation.

If an individual is uninsured for just part of the year, 1/12 of the yearly penalty applies to each month the individual is uninsured. (If an individual is uninsured for less than 3 months, the individual does not have to make a payment.)