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2014 Tax Provisions of the Affordable Care Act

With the enactment of the Affordable Care Act and Health Care and Education Tax Credits Reconciliation Act of 2010, comes new provisions and changes to the US tax code, creating tax implications for individuals and businesses.

Healthcare Exchanges (Marketplaces) are now open – some are run by the state you live in, while others are run by the federal government.  Please visit the ClaimLinx Exchange for more information.

Related Post: 2014 Tax Changes Checklist

2014 Health Care Reform Law & Tax Provisions:

  • Individual health care minimum essential coverage mandate/penalties/subsidies.
  • Individuals may be eligible for the new advance Premium Tax Credit that will lower your monthly premium.
  • In 2014, the basic penalty for individuals not adhering to the mandate is $95 or 1% of your yearly income (whichever
  •   is higher), with substantial increases in subsequent years.
  • Exchanges are available to individuals and small businesses.
  • Small Employer Health Care Tax Credit
  • No annual limits on coverage in grandfathered individual and group plans.
  • No preexisting condition exclusions for individuals.
  • Employee awards for wellness programs permitted
  • Annual fee on health insurance providers (for net premiums written after 2012).
  • Increases in required estimated tax payments for large corporations.
  • Flexible Spending Arrangements (FSA) contributions are limited to $2,500 per year starting in 2013 and indexed for inflation after that.

Related Post: US Health Spending Expected to Grow 5.8% Annually

For more information please visit the Health Care Reform section on our website.  For a free brochure, please email service@claimlinx.com.

If you have additional questions, please feel free to contact us at 513-677-6262; (800) 858-1772 or service@claimlinx.com  – we would be happy to help.

Making the Most of Customer Complaints

No company is perfect. It’s simply a fact, not an excuse.

That is why it is important for businesses to realize that the way they handle customer complaints is just as important as trying to provide great service in the first place.

Customers and clients are constantly judging companies for service failures. First, they judge the company on how it handles the issues and then on its willingness to make sure similar problems don’t happen in the future.

Related Post: Overburdened IRS Expected To Reach Record Low Customer Service

Most companies limit service recovery to the staff that directly deals with the customer. Often customer service sorts out the immediate problem, offers an apology or some compensation and then assumes all is well.

But in the end this approach is damaging because it does nothing to address the underlying problem, ultimately guaranteeing similar issues will arise.

What businesses should be doing is looking at service recovery as a mission that involves three parties: customers who want their complaints resolved; managers in charge of addressing the concerns; and the frontline employees who deal with the customers. All three must be integrated into addressing and fixing service problems.

Here are some quick strategies for real resolutions when it comes to improving service recovery:

  • Create and apply a “service logic” – This should be a mission statement or summary of how and why your business provides its services. It should integrate the goals of the service, customers and employees. The result should serve as a guide both for delivering service and for help with service recovery.
  • Draw attention to success – You can use in-house publications, intranets or training programs to share stories that emphasize your company’s values and culture. Just don’t forget to highlight the heroes of service-recovery stories.
  • Collect and share data – Companies must gather more feedback about poor service, record it and make it accessible. This will help equip managers and other employees with strong information to be effective at resolving disputes.
  • Measure employee performance – Positive reinforcement and incentives should be offered for solving problems and pleasing customers. Likewise there should be disincentives or demerits for poor handling of customer complaints.

Related Post: Millions Of Anthem Customers’ Information Exposed In Massive Hack

To learn more about how to improve service recovery, read the article by Stefan Michel, David Bowen and Robert Johnston this information was taken from.

Hiring in November and December Bolsters Job Picture

November and December surveys indicate hiring in both service and manufacturing sectors has increased when compared to the previous year, according to the Society for Human Resource Management’s (SHRM) Leading Indicators of National Employment (LINE) survey.

In November, both the service and manufacturing sectors saw significant increases compared with 2012. A net of 34.1 percent of service-sector companies expanded payroll in November, and a net of 40.4 percent of manufacturers added jobs.

Related Post: 2014 Ends With Strong Employment Numbers

“Our survey shows the highest net hiring rates of November in both sectors in four years,” said Jennifer Schramm, manager of the SHRM’s workforce trends and forecasting, in late October upon interpreting the survey information for November 2013.

While December projections for service-sector hiring were not as bright – it is the first month since July 2012 that hiring will not increase compared to the previous year – manufacturing job creation continued to increase compared with a year ago.

The LINE report not only examines employers’ hiring expectations but also new-hire compensation, difficulties in recruiting top-level talent and job vacancies.

Results indicated a net of 18 percent of manufacturing respondents had a tougher time recruiting in October, an increase of 6.1 points from the previous year. And a net of 17.4 percent of service-center HR professionals found recruiting more challenging, up 5.9 points from a year ago.

Related Post: How Employer-Paid Benefits Affect Your Bottom Line

This trend continued with the following month’s LINE report. In November, a net of 13.6 percent of manufacturing respondents had difficulty recruiting, an increase of 0.2 points from the previous year. And a net of 18.7 percent of service-sector HR professionals had more trouble recruiting, up 8.5 points from 2012.

Schramm noted in November that “new-hire compensation also inched up slightly in both sectors, suggesting that employers are starting to feel at least some pressure to increase the compensations packages on offers for hear-to-fill positions.”

For more information on hiring projections, read the articles in the November and December reports this information was taken from.

Health Coverage Premiums Rise Slowly Again this Year

Despite a relatively slow rise in costs again this year, premiums for employer health coverage reached above the $16,000 mark for the first time, according to a major survey.

The 4% increase in the cost of a family plan represents the same rate of growth as last year, rising from a cost of $15,745 in 2012 to $16,351 this year. The slowed rate likely reflects employees’ continued tendency to limit the use of health care, said Gary Claxton, vice president of the Kaiser Family Foundation, which performed the annual poll.

Related Post: Why Insurance Rates Are So High and How to Start Cutting Them

However, the exact reason for the relative lull in the continued upward march of health care costs is a topic of debate among health care economists. Some people believe that it is largely a result of the recession, and the effect will likely end when the economy rebounds.

Other economists prescribe to the idea that the downshift may be more tied to permanent changes in how health care is being purchased. For example, higher deductibles and increased efficiency among health care providers overall may be slowing the rise in costs.

Claxton said this year’s results showed minimum impact from the federal health law. Most of the major provisions take effect next year, and other, smaller conditions, such as the addition of children up to the age of 26 to their parents’ plans, have already been incorporated into the cost of coverage.

Related Post: ClaimLinx saves small businesses $4.5M on health care in 2018

The survey also showed that higher-deductible plans are retaining popularity. The share of employees enrolled in plans that have an annual deductible of $1,000 or more for single coverage hit 38% in 2013, an increase from 34% last year.

For more information on 2013 health care costs, see the article by Anna Wilde Matthews this information was taken from.

ClaimLinx is proactively ready for the many changes of Health Care Reform. For more information, please contact Tom Quigley at tquigley@claimlinx.com or (800)858-1772 X 25.

ClaimLinx Publishes “How to Beat Obamacare”

CINCINNATI–(BUSINESS WIRE)–ClaimLinx recently published a timely new book entitled, “How to Beat Obamacare.” The book briefly covers the most important parts of the Patient Protection and Affordable Care Act signed into law in 2010 by President Obama. It gives individuals and employers a framework for making smart choices in the new healthcare environment. The book also reveals the secret to saving money on individual health insurance plans for employers.

The authors, Edward A. Lyon, JD CTC, Michael J. McCormick, CPA, ETC, Thomas J. Quigley, Jr. and Christy A. Quigley have over 80 years combined experience in the tax and insurance industry.

In writing the book, Ed Lyon makes it clear that “we’re not here to debate the merits of the law, but we can help by outlining what the law means for you, for your healthcare, and for your taxes.”

Related Post: ClaimLinx Launches Podcast Digging Into Traditional Health Insurance

Back In 2010, President Obama signed the “Patient Protection and Affordable Care Act” and companion “Health Care and Education Reconciliation Act of 2010.” Together those two acts, better known by Republicans and Democrats alike as “Obamacare,” represent the biggest change in how we finance healthcare since Medicare was created in 1965. They also include some of the most significant tax changes in a generation. Polls show even today most Americans are confused and concerned about how the Affordable Care act directly affects them – what it is and how much it’s going to cost. Michael McCormick adds, “One poll taken in August of 2013, revealed that four out of ten believed the law was repealed, overturned, or were unsure if it was still law.”

Related Post: Breaking Down The Employer Mandate Tax Penalties

The book outlines a plan which takes advantage of a 55-year-old tax law, Internal Revenue Code Section 105b, that allows employers to reimburse their employees for medical costs incurred by themselves, their spouses, and their dependents. This, in turn, lets employers buy less expensive, higher-deductible insurance coverage – then reimburse their employees directly for the difference between the old deductible and the new. Average yearly savings per employee are $2,000. This program is available in all 50 states and can be implemented and administered fully by ClaimLinx consultants.

For more information about “How to Beat Obamacare,” please visit amazon.com or www.claimlinx.com.