Newsletter

Patient's Bill of Rights

New regulations issued June 22nd

On June 22nd the Departments of Labor, Treasury and Health and Human Services issued regulations to implement a new Patient's Bill of Rights as part of the Health Care Reform Act. The goal of the Patient's Bill of Rights is to "Put American consumers back in charge of their health coverage and care." The new Patient's Bill of Rights applies to health coverage issued on or after September 23, 2010.

The major initial provisions include:

Pre-Existing Condition Exclusions for Children under age 19. Insurance plans can no longer deny coverage to children based upon a pre-existing condition. This limit applies to both specific coverage denials (because of a pre-existing condition) AND banning benefit limits (refusing you a policy). Note: This pre-existing condition right will apply to all Americans beginning in 2014.

	Elimination of Arbitrary Rescission of Coverage. Insurance companies may no longer retroactively cancel your policy when you become sick or because of an "unintentional" mistake on your paperwork. The only exception is if the case involves fraud or intentional misrepresentation of the facts. Note: It is not yet clear who holds the burden of proof on this provision.
	No Lifetime Limits. Effective for all policies issued after September 23, 2010 and those renewing after this date, there can no longer be lifetime limits placed on health care plans.
	Annual Dollar Limits. There is a phase out of annual dollar expenditure limits on health plans over the next three years: Minimum annual limit Beginning September 23, 2010: $750,000 2011: $1,250,000 2012: $2,000,000 After January 1, 2014: none
	Protect Your Choice of Doctors. Health plan members are able to designate any available participating primary care provider. This includes pediatricians for your children and OB-GYN providers. An important provision in this area is the prohibition of requiring a referral prior to seeing an OB-GYN for care.
	Removing Insurance Barriers to Emergency Services. Insurance providers may no longer place barriers or differentiate payment for using emergency services that are outside a plan's network versus other out of network providers.

The "grandfather" loophole?
Many of the provisions in the new Patient's Bill of Rights have a "grandfather" clause included. The clause means different things in different parts of the Bill, but generally allows for current health plans and insurers to be partially excluded from the Patient's Bill of Rights. What should you do? Ask your employer or health insurance provider if they plan to be fully compliant with your new rights.

The "cost" question.
All these new provisions will logically cost health insurance providers more money. The statisticians are estimating up to 1% in added cost will be incurred with these changes. There is also hope that by providing more appropriate coverage for more Americans that overall health costs can go down. Unfortunately, no one is really sure what the true financial impact will be.

If interested in more information please review the "Fact Sheet" at www.healthreform.gov. This website will also provide ongoing updates as the Health Care Reform Act is implemented.

New Tax for Tanning Services

10% excise tax begins July 1st

Beginning July 1, 2010 indoor tanning services will be subject to a 10% federal excise tax. What you need to know: For those using tanning services, be prepared to see your fee for these services increase to include this new tax. Also be aware that the person receiving the payment and/or providing the service has the obligation to pay the tax. So if your tanning service provider is not collecting the tax, it is almost always going to be their responsibility for remitting the fee to the government. For those running tanning services this is what you need to know:
	Make sure you have an EIN (Employer Identification Number). You will need this number to file the new excise tax.
	Collect and remit the taxes quarterly using Form 720. The first return is due October 31, 2010.
	Indoor tanning is defined as using an electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers to induce skin tanning.
	Qualified fitness centers that provide access to indoor tanning facilities as part of membership may, in many cases, be excluded from this tax. Special qualifications apply.
	Phototherapy services that use wavelengths of light for other medical related purposes (dermatological conditions, sleep disorder, neonatal jaundice etc.) are generally exempt from this tax.

Job Ideas for 'Retirees'

Great Ways to Supplement Your Income

As a retiree, perhaps you plan to spend retirement golfing and spoiling your grandchildren. Unfortunately, the recent stock market setbacks took a large chunk out of everyone's nest egg. Even though the current job market isn't great, there are still jobs out there for retirees (or anyone else for that matter) looking to supplement their income.

Pet-sitter. If you like pets and have a flexible schedule, pet sitting or dog walking can be a great part-time job. Many young working couples look for a dog walker who can walk the dog during the day, or be on call if they are forced to work late. Also, consider advertising around graduate school campuses. Many graduate students do not know people in the area who can watch their pet for them.

Handyman. If you have some basic handyman skills, you can help people who just don't have the time to get to their to-do list. People need help with tasks such as fixing a leaky sink, painting, wallpapering, yard work and more.

Personal assistant. Go grocery shopping or run errands for others, or help with wrapping Christmas presents or gardening. Use your imagination. What tasks do people in your neighborhood need help with?

Childcare. Babysitting isn't just for teenagers! In fact, many parents prefer older people with more experience to look after their children. You can also offer "shuttle" services--kids are involved in so many activities these days and sometimes mom or dad just can't be there to pick kids up from soccer practice and take them to their music lessons.

Retail. Look for work in a retail store, particularly around the holiday season. Retail work offers lots of opportunity to interact with others and you often receive a discount at the store, which can save you money!

Tax Alert

New Tax Laws on the Horizon

There is currently a tax law passed by the House of Representatives and the Senate (American Workers, State and Business Relief Act of 2010) that has not yet been finalized and signed into law. However, given the importance of some of the key provisions in the law, you should at least be aware of the possible changes. Key among them are:
	State and Local Sales Tax Deduction. You may opt to deduct either state income taxes OR the state and local general sales taxes paid in 2010 on your Federal Tax Return as an itemized deduction.
	Teachers Classroom Expense. Qualifying teachers may once again deduct up to $250 of qualified out-of-pocket expenses for unreimbursed purchases of qualifying classroom supplies and materials.
	New Energy Efficient Home Expenditures. Many of the expiring credits to make your home more energy efficient have also been extended through 2010.
	Property Tax Standard Deduction. The additional standard tax deduction for state and local real property taxes (up to $1,000) for non-itemizers is allowed once again for 2010.
	Direct IRA contributions to Charity. The tax-free distribution directly from individual retirement accounts (IRAs) to qualified charities has been extended through 2010.
	Qualified Tuition and Educational Expense Deduction. The qualified tuition and educational expense deduction (up to $4,000) has also been extended through 2010.

Caution: Remember, these tax provisions are not yet approved. It is important, however, to save all related documentation to ensure you are prepared to substantiate these possible tax-breaks at the end of the year.

Business Tax Extensions