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 Summer 2010
RHS client reports go online Want to know how much money you’re saving by using health plans from RHS? Answering that question just got a lot easier, thanks to our new and improved website. All monthly client reports are now posted on our password-protected, secure server at www.rhs.org. Clients and brokers can access reports and other materials by clicking the “Client Login” link in the upper right-hand corner of the home page and entering their username and password. “The monthly reports display the savings,” says Sandy Sylvers, director of claims for RHS. She notes that a typical report shows exactly how much money employers spent on their employees’ health benefits during the month. The report then compares that amount to traditional health plan costs and displays the percentage savings. Typical savings range from 20% to 30% or more. For RHS health plans that include claims processing, the reports show the claims turnaround time. “The claims turnaround is a report card for how well RHS is doing,” says Sylvers. “It shows the number of days we take to process claims.” For RHS health plans that are linked to debit cards, additional reports show debit card transactions and account balances. Reports aren’t the only items posted on the secure server. Clients can also access their summaries of benefits and modify their company settings, such as their e-mail and street addresses. Complete instructions for accessing client reports were e-mailed to clients and brokers earlier this year. If you have any questions about your reports, contact Sandy Sylvers at ssylvers@rhs.org or 800-548-7677, Ext. 116. Employers need to claim 65% COBRA subsidy on payroll tax forms Under the American Recovery and Reinvestment Act of 2009, the federal government is subsidizing 65% of the COBRA health coverage for terminated employees and their families via a payroll tax credit. These “assistance-eligible” individuals pay the remaining 35% of their COBRA premium. Employers who receive COBRA payments from former employees need to claim the 65% COBRA subsidy on their quarterly payroll tax report, also known as Form 941. “Many employers are not getting their COBRA subsidy from the government because they simply aren’t claiming it,” observes Nancee Mertens, director of human resources for RHS. Employers need to claim the subsidy on line 12a of Form 941, explains Mertens, and then subtract the amount from the taxes due. If employers don’t claim the subsidy, they will end up paying 65% of their former employees’ COBRA premiums. The COBRA subsidy applies to employees who were involuntarily terminated at any point between Sept. 1, 2008, and May 31, 2010. Employers can claim the 65% subsidy only after the former employee has paid his or her 35% share of the COBRA premium. Fortunately, if employers fail to claim the subsidy in a particular quarter of the year, they can still claim it in a subsequent quarter. Mertens recommends that employers visit the Internal Revenue Service website at www.irs.gov or the Department of Labor website at www.dol.gov for more information about COBRA. Or you can contact her directly at nmertens@rhs.org or 800-548-7677, Ext. 101. Small businesses may be eligible for health coverage tax credit The new health law, known as the Affordable Care Act, encourages small businesses to provide health coverage by offering them federal tax credits. For-profit companies that pay at least half of their employees’ health coverage costs may be able to claim up to 35% credit on their tax returns. Nonprofit organizations may be able to claim up to 25% credit. “This new credit is intended to help small companies who are struggling to pay for their employees’ health coverage,” says John Nacol, chief executive of RHS. “It’s definitely worth a look.” The credit, explains Nacol, applies to companies or nonprofits with fewer than 25 full-time-equivalent employees and with an average annual wage of less than $50,000 per year. Companies with more than 25 employees may still qualify for the credit if some of their employees are part-time. For example, a company with 20 full-time and 8 half-time employees would still be eligible because the number of full-time-equivalent employees is 24. Nacol cautions that the actual amount of credit given depends on several factors. Firms with fewer employees and lower wages, for example, will probably get more credit than firms with more employees and higher wages. Employers can begin claiming the credit on their 2010 tax returns. In 2014, the rate increases to 50% for small businesses and 35% for nonprofits. After 2014, the credit will be gradually phased out as employees begin to receive coverage through the new state-based Health Insurance Exchanges. The IRS offers the following example to show how an auto repair shop would benefit from the health coverage tax credit. The shop has 10 full-time employees, and their wages average $25,000 per year. The shop pays for more than half of its employees’ health coverage, at a total cost of $70,000 per year. Starting in 2010, the shop can get a tax credit for 35% of that amount, which comes to $24,500 per year. By 2014, when the rate increases to 50%, the shop’s tax credit will be $35,000 per year. For more information about the health coverage tax credit, visit www.irs.gov or contact John Nacol at jnacol@rhs.org or 800-548-7677, Ext. 121. RHS offers many affordable health coverage options In the current economic climate, companies large and small are scrambling to provide health coverage for their employees. The cost of coverage continues to increase, even as corporate income declines or stays flat. What’s worse, the available coverage is often lacking, with many “one size fits all” health plans that can’t be tailored to individual companies. Redwood Health Services offers an alternative. We feature flexible, affordable health plans that can be custom designed to meet specific needs. Many of our plans can be coupled with a debit card to reduce paperwork and increase ease of use. Our plans include: · FSA (flexible spending arrangement). Employees can use this tax-saving plan to pay for medical expenses that aren’t covered by their company health insurance. · HRA (health reimbursement arrangement). This plan allows employers to give employees access to tax-free funds for qualified medical expenses. · POP (premium only plan). This plan lets employees pay their share of company health insurance premiums on a pre-tax basis. The plan can also be coupled to a tax-free HSA (health savings account). · Dental and Vision plans. These plans offer flexible benefits, monthly claims activity reports, and access to most dentists and eye doctors. RHS also provides a range of third-party administrative services for employers, including COBRA administration, claims administration, monthly experience reports, trust accounts, and employee benefit documents. For more information about RHS health plans, or to request a quote, visit www.rhs.org or contact John Nacol at jnacol@rhs.org or 800-548-7677, Ext. 121. Obtaining customer service from RHS RHS prides itself on superior customer service. Our expert staff can assist you with questions about your current health plan and provide suggestions about the various products and services available through RHS. Select the correct department from the list below for whatever questions you might have. Customer Service Sales and
Administration Accounting and
Billing Claims Operations COBRA Administration Enrollment Provider Network About RHS Redwood Health Services, founded in 1976, provides employee benefit plans and third-party administrative services to both large and small employers. © RHS 2010 |
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