With the holidayseason almost upon us and 2010 quickly approaching we wanted to take this opportunity and address some insurance related issues that a new calendar year always brings up. Whether you have an individual or employer sponsored Health Insurance plan, a Life insurance policy, Dental and Vision plan, or some combination thereof, here are a few things to keep in mind as we close out 2009 and usher in 2010.

Health Insurance:
For most policies, your Medical plan’s deductible (or copay maximum amounts for HMO plan holders) and maximum out-of-pocket limits are based on a calendar year regardless of when your coverage became effective. All deductibles, copays, and out-of-pocket maximum amounts will therefore be renewed on January 1, 2010. If you are unsure about your policy please refer to your policy booklet or call our office.

Dental and Vision Insurance:
If you have Dental insurance, your deductible and annual benefit maximum(s) also most likely follow the calendar year and will reset January 1, 2010. If you have Vision insurance this is the only set of benefits that track to your last date of service. For example, if you visited a provider on March 15th of 2009, and your plan provides for an exam every 12 months, you would be eligible for another exam after March 15th 2010.

Health Savings Accounts (HSA):
As set forth by Congress and the IRS, the annual HSA contribution maximums will be changing for 2010. Individual contribution maximums will increase by $50 and Family contributions by $200. If you are age 55 or older your catch-up contribution will remain $1,000. Please refer to the table below.

For some, being laid off from a job and in turn losing Group Health Insurance benefits can hurt as much as not receiving a paycheck. If this has happened to you or someone you know it’s important to understand all of the options that are available to you in order to maintain coverage.

In 1986 The United States Congress passed The Consolidated Omnibus Budget Reconciliation Act (better known as COBRA). In essence this law gives workers and their covered dependents the right to continue their current group coverage for a limited time period due to certain life circumstances such as job loss (either voluntary or involuntary), divorce, a reduction in hours causing a change in eligibility, or over-age dependent status among other things.

If you are covered by an employer’s Group Health, Dental or Vision plan, and you’re laid off or choose to leave your position, by law you will be offered COBRA continuation. The cost of coverage varies from 102% of the premium amount if your employer is only subject to Federal COBRA but can be higher if your state has its own COBRA laws. For example, here in California if your employer is subject to California COBRA laws the rate can be as high as 110% of the premium amount.

For a lot of people who are losing coverage and have little or no money coming in, paying 102% or more in order to continue their Health Insurance coverage is just not an option. Congress and the President have tried to address this issue with a limited subsidy provision as part of The American Recovery and Reinvestment Act of 2009. While helpful if you qualify for the subsidy, once it has been exhausted you are still responsible for the full COBRA premium.