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Educate Employees on the Importance of Life Insurance

Educate Employees on the Importance of Life Insurance (click here for the full article)

Although life insurance is one of the most common employer-provided benefits, many employees do not appreciate its value. As an employer, you are well-positioned to educate employees on the importance of this coverage.

 

What’s in it for you? Educating employees about life insurance can yield higher enrollment, greater appreciation for your benefits package and increased loyalty to the company. Many employees are not financially savvy, but are interested in learning. Financial education from their employer can foster a stronger company-employee relationship.

 

Why It’s Important

Many employees have never considered life insurance, or think it is an unnecessary expense at this time in their lives. However, having life insurance is important for people of all ages and a few probing questions can help your employees think more clearly about their needs and benefits of coverage, such as:

  • Are you the primary household income?
  • Do you have a mortgage, college loans or other substantial debt that is unpaid?
  • How would your family support themselves if you died?
  • Could you (or your family) afford tens of thousands of dollars in medical bills and/or funeral costs?
  • Who would have the burden of paying any debt or other financial responsibilities that you leave behind?

Educate Employees on the Importance of Life Insurance (click here for the full article)

White House to Announce a One Year Delay in Implementation of the Pay or Play Rules

Around 3:00 P.M. Pacific Daylight Time, the Department of Treasury posted a bulletin on its blog announcing the White House’s decision to delay the full implementation of the Pay or Play Rules.

The Treasury report states that employers and insurers will be exempt from the reporting disclosure requirements on welfare plans and eligibility rules until 2015, effectively postponing the Pay or Play requirements under IRC Section 4980H for 2014. These reporting requirements are the tool employers are to use to demonstrate compliance with the Pay or Play requirements. The Treasury report also indicates that the official guidance will be issued later this week!

The driving force behind the delay is feedback from employers on the issues they have to meet the original 2014 implementation deadlines.

It also appears that all other Patient Protection and Affordable Care Act (ACA) provisions, including the PCORI fees remain in effect.

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HSA Limits Will Increase for 2013

The Internal Revenue Service (IRS) issued Revenue Procedure 2012-26, which increases limits for health savings accounts (HSAs) effective for calendar year 2013. The following HSA limits will increase for 2013:

  • Annual contribution limits for single and family coverage;
  • Maximum out-of-pocket expense limits for coverage under a high deductible health plan (HDHP); and
  • Minimum deductibles for HDHPs.

HSA contribution limits

For 2013, the annual HSA contribution limit for an individual with self-only coverage under an HDHP is $3,250 (up from $3,100 for 2012).

For 2013, the annual HSA contribution limit for an individual with family coverage under an HDHP is $6,450 (up from $6,250 for 2012).

hdhp Out-of-pocket expense limits

The maximum out-of-pocket expense (deductibles, copayments and other amounts, but not premiums) limit for self-only HDHP coverage for 2013 is $6,250, which is up from $6,050 for 2012.

For family HDHP coverage, the maximum out-of-pocket expense limit for 2013 is $12,500, which is up from $12,100 for 2012.

hdhp deductible limits

For 2013, the deductibles under an HDHP must be at least $1,250 for self-only coverage (up from $1,200 for 2011 and 2012) and$2,500 for family coverage (up from $2,400 for 2011 and 2012).

effective date

These new limits are effective for calendar year 2013.

more information

For a copy of IRS Revenue Procedure 2012-26, see www.irs.gov/pub/irs-drop/rp-12-26.pdf.