Extended Coverage Rights for Pregnancy‐Related Disability

California Employers Must Now Provide Health Benefits for Four Months for Pregnancy Disability

On October 8th, 2011, Governor Jerry Brown signed into law Senate Bill 299, requiring California employers with 5 or more employees to continue group health coverage for up to 16 weeks for employees on pregnancy disability leave. Existing state and federal laws such as FMLA, CFRA, PDL, and others allowed various periods of leave for pregnancy disability, but for many workers, there is no right to continue healthcare coverage on the employee’s group health plan during the pregnancy disability leave.

2012 HSA Updates

The IRS announced that the contribution limit for an individual would increase by $50 in 2012, from $3,050 to $3,100. The family contribution limit is increasing from $6,150 to $6,250 (+$100).

The annual catch up amount for individuals over the age of 55 and who are not enrolled in Medicare is $1,000 per person on the plan. However, if the person who is making the catch up contribution is not the primary subscriber on the plan he or she will need to open a separate HSA account to hold the funds. For more information on this please see U.S. Department of the Treasury HSA FAQ.

2011 HSA Updates

For the 2011 tax year the IRS has opted to keep the HSA contribution maximums the same as they were for 2010. An Individual can contribute up to $3,050 and someone who is covering one or more dependents can contribute up to $6,150.

The annual catch up amount for individuals over the age of 55 and who are not enrolled in Medicare is $1,000 per person on the plan. However, if the person who is making the catch up contribution is not the primary subscriber on the plan he or she will need to open a separate HSA account to hold the funds. For more information on this please see U.S. Department of the Treasury HSA FAQ.

The most notable change to the 2011 HSA regulations have to do with the removal of over the counter (OTC) drugs as eligible expenses. Starting January 1, 2011 you may no longer use your HSA account to purchase common OTC medications like pain relievers, sleep aids, allergy and antihistamines, or acid relievers. The only exception to this rule is of your doctor has written a prescription for an OTC medication then it would still be considered an eligible expense.

If you have any questions regarding your HSA account or would like to find out more about HSA compatible Health Insurance plans please send us an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call us at 831.459.9140.

Individual Health Insurance Basics – How to Compare and Choose a Plan Using Five Important Features

When shopping for an individual health insurance plan for yourself or your family there are many plan and carrier options to choose from. In fact, the choices can seem overwhelming. However, if you know what to look for when comparing plans it can make the task of choosing a plan much simpler.

The first benefit feature to compare between plans is the annual deductible. This is the amount you will need to pay before some or all of the other plan benefits start. Deductible amounts can range anywhere between $400 and $10,000 and are usually broken down between individual deductible (one member on the plan) and family deductible amount (two or more members on the same plan). There can be differences between how charges are applied towards the plan deductible so read the fine print so you are not surprised. The general rule is the lower the annual deductible the higher the monthly premium.

End of the Year Insurance Reminders

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.

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