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105(h) Non-Discrimination Rules for
Fully-Insured Plans are Delayed The most recent development, welcomed by most employers who sponsor fully-insured health plans, is that the implementation of Section 105(h) non-discrimination rules contained in the Patient Protection and Affordable Care Act (PPACA), as applied to fully-insured plans, has been delayed. The IRS has released Notice 2011-1, which delays the application of the 105(h) non-discrimination rules to fully-insured plans until after the release of regulatory guidance. A copy of the notice can be found on the IRS website.
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| Key Findings from the Kaiser Family Foundation's December Health Tracking Poll |
As 2010 draws to a close, the latest tracking poll shows the public still divided in their views of the health reform law, a sentiment largely unchanged since the law's enactment in March. Forty-two percent of Americans say they have a generally favorable view of the law, while 41 percent have a generally unfavorable view of it.
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IRS Issues Withholding Details for Payroll Tax Cut
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 The Internal Revenue Service recently released instructions to help employers implement the 2011 cut in payroll taxes that were included as part of the tax cut legislation passed by Congress, along with new income-tax withholding tables that employers will use during 2011. Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a 2 percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2% to 4.2% of wages paid. Read Full Article
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| No Health Mandate Means Skyrocketing Costs |
 A federal judge's ruling striking down a health-law mandate that all Americans buy insurance would cause "skyrocketing costs" if affirmed by higher courts, says a group that represents health plans in Washington.
Eliminating the mandate undercuts insurers' ability under the law to guarantee coverage for people with pre-existing conditions and to lower cost for those who can't afford to buy plans, said Robert Zirkelbach, a spokesman for the Washington lobby group America's Health Insurance Plans.
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| Consumer-Directed Health Enrollment Reached 22 Million in 2010 |
Those in high-deductible or consumer-directed plans were more likely to factor costs into their decisions
 The ranks of Americans enrolled in high-deductible health plans (HDHPs), which are often linked to account-based consumer-directed health plans (CDHPs), reached 22 million in 2010, according to a December 2010 report by the not-for-profit Employee Benefit Research Institute (EBRI).
With CDHPs, plans with deductibles of at least $1,000 for employee-only coverage are linked to tax-preferred savings or spending accounts that workers and their families can use to pay their out-of-pocket health care expenses.
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 Compliance Matters
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| PPACA Will Affect Post-Termination Medical Benefits |
 Before the Act, no benefits-related, non-discrimination rules applied to fully insured group health plans. The reasons for this are historical. Congress was originally of the view that insurance underwriting considerations generally preclude or effectively limit abuses in insured plans. As a result of advances in insurance underwriting and increasing competition in the health insurance markets, however, Congress had a change of heart. The Act, for the first time, extends nondiscrimination rules similar to those that already apply to self-funded group medical plans to fully insured arrangements for plan years beginning after Sept. 23, 2010. These include a bar on discrimination based on "eligibility" or "benefits." It seems that the new insurance non-discrimination rules generally prohibit employers from providing special health insurance coverage to their executives whether on a pre-tax or after-tax basis, with perhaps the following exceptions:
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 Risk Management & Insurance
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Disgruntled Employees - A Cyber Risk
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A former information technology director was sentenced to 27 months in prison for hacking his former employer's website. The man pleaded guilty to one count of intentionally damaging a protected computer without authorization.
 The employer terminated the IT director in June 2008. He admitted that in July 2008, he used a personal computer and an administrator account and password to access the computer that hosted the employer's website. Once he accessed the host computer, the former employee knowingly issued a series of commands that intentionally caused damage to the computer. He admitted causing the damage and deleting approximately 1,000 files related to the website because he was angry about his termination. He is ordered to pay $6,700 in restitution in addition to serving the two years and three months prison term. "Virginia Information Technology Director Sentenced to 27 Months in Prison for Hacking Former Employer's Website," www.justice.gov (Oct. 29, 2010).
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Eight Crisis Management Lessons from the Chilean Mine Rescue
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 The whole world let out a collective sigh of relief after the last of the miners was rescued in Chile. With a safe recovery behind us, we can now look back on the crisis management lessons learned during the 69 days that 33 men feared for their lives while trapped a half-mile underground. The Chilean government showed not only leadership but remarkable communications savvy throughout the ordeal. In many ways, it is quite similar to the BP disaster.
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Forecaster Sees Very Active 2011 Hurricane Season
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As several regions of the country have recently experienced severe weather this winter, it's never too early to start forecasting the 2011 hurricane season.
 Next year's Atlantic hurricane season will be more active than normal, according to a forecast issued Wednesday by the Tropical Meteorology Project at Colorado State University (CSU).
The team forecasts 17 named storms will form next year in the Atlantic basin. Nine of the storms will grow into hurricanes, with five of those growing into major hurricanes with sustained winds of at least 111 mph, according to the forecast.
In an average hurricane season, which runs from June 1st to November 30th, 9.6 named storms form, with 5.9 growing to hurricane strength, of which 2.3 will become major hurricanes, the CSU team said. The team also said there is a 72% probability that a major hurricane will make landfall in the United States next year.
The CSU team predicted that 18 named storms would form this year. According to the National Oceanic and Atmospheric Administration, 19 named storms formed during this year's Atlantic hurricane season. Twelve became hurricanes, with five reaching major hurricane status. The storms, however, caused little damage to the United States.
Business Insurance, December 8, 2010, by Mark A. Hofmann
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The McCart Group Property & Casualty Division addresses the complex risk management issues and property & casualty insurance needs of public and private companies. Our risk management services include workers' compensation programs, risk control, safety, and claim management.
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| The McCart Group News Briefs |
McCart Prepares to Celebrate 40th Anniversary!
 As we reflect on the successes of the past year at The McCart Group, we are also looking ahead to our 40th year of service to many organizations in Georgia and nationwide.
Established in 1971 in Atlanta, as The Joe McCart Insurance Agency, The McCart Group has grown to be one of the largest privately held insurance and risk management firms in the southeast.
We have now been providing Group Benefits Brokerage Services in the Atlanta market for 20 years.
For more information about The McCart Group, please visit our website at www.mccart.com.
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 The McCart Group is proud to be the exclusive Assurex Global Partner in Georgia. Assurex Global is an international insurance, risk management, and financial services enterprise of independent broker partners, combining the experience, expertise, products, and services of professionals around the world. |
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Please contact The McCart Group at 770-232-0202 with any questions you have about our services for Benefits, Payroll Administration, Risk Management, Property & Casualty Insurance, Safety and Loss Control.
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