Supreme Court rules in favor of same-sex marriage

Posted on Jun 26, 2015 in Industry & Legislative News

Today the Supreme Court released its decision in Obergefell v. Hodges, a 5-4 decision. The Court ruled in favor of same-sex marriage, holding that the Fourteenth Amendment requires states to issue marriage licenses for same-sex couples. The Court also held that states must recognize same-sex marriages that were lawfully licensed and performed out of state.

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Supreme Court rules health premium subsidies legal in all States

Posted on Jun 25, 2015 in Health Care Reform, Industry & Legislative News

The Supreme Court released their ruling on King v. Burwell today. The vote was 6-3 in favor of upholding health premium subsidies in all States, including States that have a Health Plan Exchange run by the Federal Government.

Now that the decision is made, we will most likely see action in Congress to clean up parts of the Affordable Care Act.

Here is a link to the Supreme Court’s Opinion: http://www.supremecourt.gov/opinions/14pdf/14-114_qol1.pdf

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How much coverage do I need for Key Person Insurance?

Posted on Jun 24, 2015 in Success ideas

Valuing a Key Employee

It can be hard to put an exact monetary value on how important a key person is to a given business. The goal when valuing a key person for life and disability insurance is to get the correct amount of coverage based on the specific needs of the business, but that also corresponds to the realistic loss associated with the death or disability of the key employee from the insurance company’s viewpoint.

In many cases the amount of key person insurance requested is dramatically higher than is available from the life and disability insurance companies. For example, just because a firm is borrowing $10,000,000 for a project expansion doesn’t mean the insurance company will willingly write $10,000,000 of key man life or disability insurance. Specific details will be required by the insurance company to justify the insurance amount requested.

There are several valuation methods commonly used to determine the proper amount of key person insurance needed from both the business and insurance companies perspective. These valuation methods include: the replacement cost method, the contribution to earnings method and the multiples of income approach. A brief explanation of each valuation method follows below.

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What is a Long Term Care Partnership Program, and why should I care?

Posted on Jun 18, 2015 in Industry & Legislative News, Success ideas

Many people mistakenly believe government programs, like Medicare and Medicaid, will provide all the long-term care services they need. Unfortunately, this may not be the case. Failing to plan how you’ll pay for long-term care services may place you at serious financial risk.

Medicare

Medicare generally does not pay for long-term care services. Instead, it’s designed to help get you back on your feet following an illness or injury.

  • Medicare pays only for “skilled care” you receive in a nursing home, but only if it’s medically necessary and only for a limited period of time
  • Medicare does not pay for “custodial care” services many people receive in their homes – services like assistance with dressing, bathing and using the bathroom. Medicare also does not pay for care received in an assisted living facility

Medicaid

Medicaid provides long-term care assistance to individuals who have exhausted their personal resources.

  • Medicaid pays for both “skilled care” and “custodial care” received in a nursing home, but only after you spend down your assets to meet eligibility guidelines in your state
  • In some states, Medicaid may pay for some services received at home or in an assisted living facility

What is a long-term care partnership program?

It’s a partnership between your state government and private insurance companies. Insurance companies voluntarily agree to participate by offering long-term care insurance policies that meet specified criteria. The state agrees to provide Medicaid asset protection to people who purchase partnership-qualified policies.

How does Medicaid asset protection work?

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New EEOC Ruling affects Workplace Wellness Programs

Posted on Jun 10, 2015 in Health Care Reform, Industry & Legislative News

The proposed rules on use of financial incentives within workplace wellness programs were published by the Equal Employment Opportunity Commission (EEOC) on April 16, 2015.   These rules align the wellness provisions of the Affordable Care Act (ACA) and the Health Insurance Portability and Accountability Act (HIPAA) with the nondiscrimination rules in the Americans with Disabilities Act (ADA).

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