Archive for the ‘Insurance Needs’ Category

The Medicare Coverage Trap

July 25th, 2017 No comments

Do not fall into the Medicare coverage trap!

Let’s look at a hypothetical situation. You find yourself retiring and your employer has a very good medical plan. Rather than signing up for Medicare (Part B) which covers the cost of healthcare services like regular physician visits, outpatient surgeries and diagnostic procedures, you decide to go on COBRA to keep your employer’s great health care benefits.

Eventually you notice that your employer’s plan has begun to reject your medical claims.  Since you have religiously been paying your COBRA premiums in full and on time each month, you call the employer’s health care provider to inquiry why it is not paying your medical claims. You learn Read more…


PA Filial Law and Long-Term Care Insurance

July 18th, 2017 No comments

With the demographically large baby boomer generation moving into retirement, we may see an increasing number of people without the financial resources to support themselves in their golden years. What if these “retirees” do not have the financial resources to pay for the cost of health care, long-term care, or nursing care?

As we discussed in our July 2, 2012 post, YOU may be liable for your relatives’ unpaid bills.

How is this possible? You can become liable for the health care bills of your family members due to Read more…


Small Business Sponsored Health Reimbursement Accounts Now Allowed

March 28th, 2017 No comments

Prior to tax years beginning January 1, 2017, employers who reimbursed employees for the cost of premiums for individual and family health coverage were subject to the Patient Protection and Affordable Care Act (ACA)’s excise tax. This is because the IRS took the position that group health plans that reimbursed or paid employee premiums for individual coverage were subject to an excise tax (up to $100 per affected individual per day) for violating the group plan rules. Under transition relief, small employers were temporarily exempted from excise tax from January 1, 2014, to June 30, 2015.

Under the pre-2017 rules, if an employer desired to help employees pay for health care coverage and avoid the onerous excise tax, those monies had to be paid to the employees and included in their W-2s as compensation. The employees could then use those “reimbursement” monies to pay for health care coverage or for any other purpose.

For tax years beginning after December 31, 2016, Read more…


How to Avoid a Geriatric Surprise Bill

March 21st, 2017 No comments

Erin Arvedlund of recently wrote an article alerting consumers about health care providers and “bed hold” charges. We believe that many persons are unaware as to what a “bed hold” charge is and can potentially incur significant unexpected charges.

What is a “bed hold” charge? An example would be when a resident at an assisted-living facility has a mishap and is transferred to a hospital for medical treatment. The assisted-living facility can charge its residents Read more…


COLI-The ABCs of Company-Owned Life Insurance

February 7th, 2017 No comments

“Officer’s life insurance premiums” are not allowed as a deduction on a corporation’s tax returns. Why is this? Is this one of those unfair tax rules?

Well, when a corporation takes out a life insurance policy on one if its key employees — and the corporation is both the owner and beneficiary of the policy — the proceeds paid to the corporation upon the death of the employee are generally tax-exempt (I.R.C. §101). Because I.R.C. §101 serves to exclude life insurance proceeds from income, I.R.C. §264 prevents a second tax benefit by disallowing a deduction for any premiums paid on a policy on which the payor is the beneficiary. That way, the taxpayer doesn’t get a deduction for premiums AND tax-exempt proceeds when the policy is paid out.

The rules regarding COLI are complex. Did you know Read more…


Married Couples Need to Do What?

November 1st, 2016 No comments

Although we live in the information age and the world of convenience, there is yet another task that newly-married couples need to address after writing their thank you cards and perhaps the bride changing her maiden surname to her husband’s surname with the Social Security Administration.

The new task to complete is a health insurance review if you are enrolled in coverage through the Health Insurance Marketplace and you receive premium assistance in the form of advance payments of the premium tax credit. Don’t forget that your premiums were based on your family composition and household income.  This could all change due to the change in your marital status and household income.

It is important Read more…

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August 23rd, 2016 No comments

Under the Affordable Care Act, large employers must either offer “minimum essential coverage” that is “affordable” and that provides “minimum value” to their full-time employees and their dependents, or potentially make an employer shared responsibility payment to the IRS. The employer shared responsibility provisions are sometimes referred to as “the employer mandate” or “the pay or play provisions”.

If you are an employer who had less than 50 full-time employees, including full-time equivalent employees, on average during the prior calendar year (2015), you are Read more…



June 28th, 2016 No comments

If you are like most people, you detest the daily rate that the car rental companies charge for their insurance coverage.

I wish to share a personal experience with you. The last time that I traveled and reserved a rental car online, a pop up appeared on the car rental website offering me insurance coverage. The rate was reasonable so I purchased full coverage. On the day of my arrival to my airport destination, when I finally reached the rental counter to sign the paperwork, I was asked Read more…

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FREE Health Care Coverage for Your Adult Child

March 22nd, 2016 No comments

The Affordable Care Act allows a dependent child to be covered by their parent’s health insurance plan until the child reaches age 26. Once the child reaches age 26, the child will need to seek his/her own health care coverage. What happens if your child is a graduate student and has very little income?

One option may be to purchase health care coverage through the school’s health care plan. Perhaps the child could seek coverage under Cobra from the parent’s plan. Another option is for the child to procure health care coverage on the on the marketplace. If the latter option is used, the child will likely not have sufficient income to meet the minimum earnings to qualify for a subsidy on the marketplace. Consequently, under all 3 options, the student finds that the premium cost is very expensive and the child likely cannot afford to pay it. Another option is that the child requests the parent to pay the premium. This is not a premium savings, simply a transfer of where the source of the funds comes from.

What if the child could receive health care coverage for FREE (or for a substantially reduced cost)? Read more…

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October 13th, 2015 No comments

Effective in 2016, health insurance companies will be required to provide to every individual who received minimum essential health care coverage in the 2015 calendar year with Form 1095-B, Health Coverage. Since a copy of this form must also be sent to the IRS, The Affordable Care Act (ACA) requires the insured to provide the health care provider with his/her social security number (SSN), as well as the SSNs of the spouse and any dependents. If any person fails to provide the health care provider with the requested SSNs, it is very likely that the IRS Read more…

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