Past Issues
-October 2006Contact us:
Edward Bates
952.944.5044
Peter Thoresen
952.225.0344
Mary Bates
952.942.8355
Jereme Bates
952.944.2919
Did you know?
Strength training regularly, particularly in older adults, can reduce signs of arthritis, diabetes, osteoporosis, obesity, back pain and depression.
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“No one can make you feel inferior without your consent.”-Eleanor Roosevelt
In the News
MPR: INSURANCE FOR ALL BY 2011
St. Paul, Minn. — The proposal would achieve
universal coverage through a mixture of insurance and market reforms,
state subsidies and purchasing pools.
It would follow one being tried in Massachusetts, where every resident must have insurance starting July 1 or face tax penalties. Those who can't afford private policies can get subsidized coverage. California is also considering a health insurance mandate.
The Healthy Minnesota Partnership, a group of physicians, hospitals, health plans, and educators, helped craft the legislation. Dr. Donald Jacobs, who chairs the group, says the sooner the state gets all of its citizens insured, the sooner it will save money on health care costs.
"What you get when everybody is in is a more equitable distribution," says Jacobs. "You make sure that for individuals who have been outside the system that they don't have to enter our system when it's too late, they don't have to enter at advanced stage of disease, and they don't have to enter in our emergency departments which are often most expensive resources."
Jacobs says achieving universal coverage in Minnesota will be daunting. But he says the state shouldn't wait any longer to tackle the problem.
"We all believe that this is a long-term process and we have to get started, that what we have right now is not sustainable, at least as we're defining affordability in America right now," says Jacobs. The bill would also create an income tax credit for health care costs, and extend dependent coverage for non-students up to age 25.
Minnesota has the nation's lowest rate of uninsured people, measured at 7.4 percent in 2004. State leaders have said universal health coverage is an attainable goal, but plans from Republican Gov. Tim Pawlenty and Senate Democrats don't include an insurance mandate.
Pawlenty has questioned such an approach, noting that a state law requiring all vehicle owners to have car insurance still leaves many uninsured drivers on the road.
DFL Sen. Linda Berglin, the Senate's top health care policymaker, has said she would prefer to couple an individual health insurance mandate with a requirement that all employers cover their workers. The Minnesota Business Partnership wasn't on the list, but would be open to a Massachusetts-style individual insurance mandate as long as employers weren't required to cover their workers, said Charlie Weaver, the group's executive director and a former chief of staff to Pawlenty.
By Lorna Benson, MN Public Radio March 8, 2007 (The Associated Press contributed to this report)
Employment
Practices Liability Insurance
Written by Jereme Bates
Did you know that nearly 75% of all litigation against today’s corporations involve employment suits? Are you aware that only 30% of business owners carry protection against such a lawsuit? Statistics like this can be frightening, especially when looking at the types of small business scenarios where an Employment Practices Liability claim becomes a reality.
According to a study conducted by the EEOC, (Equal Employment Opportunity Commission) of the 75,428 private sector charges filed in 2005, almost 65% of all charges filed were race and gender related. Other claims possibilities include retaliation, age, disability, national origin, religious and equal pay discrimination suits.
A nice part of my job is getting to know each of my clients. I particularly enjoy seeing each employer’s work environments, and how my clients interact with their employees. But sometimes in these close knit employment settings ,when discussing EPL Insurance, I hear “we take care of our employees and we’re almost like a big family...” Unfortunately, statistics are showing us, that because we as employers think of our employees as “family,” it doesn’t mean our employees share that same feeling.
My statement rings true when considering that it is now more likely to have an Employment Practices Liability claim, than it is to have a General Liability claim or Property loss. Insured members carry millions in protection against Property and General Liability losses but tend to pass on a coverage that protects the lifeblood of our businesses.
Why are small businesses more reluctant to purchase management liability coverages such as EPLI? Typically it has to due with where the premiums have been set in the past, the lengthy application process and a vague understanding of the real exposure that every employer faces.
In effort to correct these past deterrents, a number of insurance companies have started offering 1,000,000 of EPLI coverage for $750 to $1,500. (based on underwriting) The applications process has been streamlined and computer automation has made the submission process a snap.
Now that you know a bit more about the exposures that every employer faces. be sure to spend some time discussing this topic at your 2007 renewal. This product can be purchased on a monoline basis, so if you have an immediate need, please feel to contact us for a quote.
We are always interested in the protection of our clients, so even if you aren’t a commercial client of ours, please feel free to call with questions.
Jereme
Information collected from:: CNA Insurance Company, PLUS Div; Equal Employment
Written by Ed Bates
Modern businesses deal with modern risk exposures. Many of these risks have been uninsurable until recently. A good example of this is Cyber Liability Coverage. Many modern businesses rely on electronic data, computers and networks to support critical operations and better serve customers. You need to ask yourself, do you store data, including private information on computers; use e-mail; generate revenue online; or use your network to control production, manufacturing, inventory or a supply chain? If so, you are at risk of someone breaching this system causing a loss to a third party and ultimately you.Today we have insurance companies offering coverage for third-party claims related to privacy injury, identity theft and network damage. This coverage provides, among other things, protection against unauthorized disclosure of others’ private information due to a network security breach; provides for costs of notifying others of a breach; for costs to comply with privacy regulations; cost due to damage to information residing on your network, whether yours or someone else’s; for costs of your network interruption; etc…
In today’s modern world, a business owner needs to assess risk that didn’t exist 20 years ago. Cyber claims are one of these areas. If you feel you are at risk of a Cyber claim, we now have insurance companies stepping forward, at very reasonable costs, to provide protection against these exposures. Please feel free to contact me for further clarification or if you would like to explore this protection for your organization.
Ed
Assest Allocation - A Balanced Diet
Written by Pete Thoresen
With just the utterance of these words, “a balanced diet”, a couple of possible impressions may come to mind. The first might be a picture of some health fanatic’s diet of grazing on raw vegetables and grains while peddling away on the stationary bike. A second might be the picture of the ‘food pyramid’ à the six food groups; after all it’s now posted on every food item in the grocery store. While we may not fully get it, most of us “super sized American’s” have come to accept that a balanced diet, beyond burgers and fries, really may have some meaningful long-term medicinal benefits.It doesn’t have to be that hard either. Of course, we can make it hard by dissecting and counting calories, and grams, and compartmentalizing everything into food groups, and so on and so on. Yet, in the end a balanced diet can be a rough targeting of the foods groups so that one’s intake of food and drinks contain appropriate types and adequate amounts of nutrition and energy.
The same is true of Asset Allocation. We all have heard the term, and know its something we may need. After all of the headlines and lessons learned from company scandals of a few years ago, and world events, such as 9-11, we all know asset allocation is something we may need to address. Yet, horrid images may come to mind – slaving over a pile of papers; endless data, followed by those dreaded, “annual reports”. It really doesn’t need to be that hard. Intuition tells you that if most of your assets are made up of just a couple of investments (i.e. home, gold, company stock or a single mutual fund) you may not be allocated enough. Conversely, if you have so many investments that you have a hard time keeping track of it all, you may be overly allocated. Either way – you may be out of balance with respect to your risk tolerance and timeframe.
While investors need to be aware that no investment plan / asset allocation / diversification can eliminate the risk of fluctuating prices and uncertain returns, your allocation, like a balanced diet, needs to be diverse, yet work for you (fit your complexity level), and make you feel good or fit your level of safety (time horizon and risk tolerance).
If you haven’t reviewed your allocation in a while, maybe you should give it some thought. If you can give your investments the same consideration you put in to your weekly grocery shopping, you may find a couple of ‘healthy’ adjustments are in order.
Pete Thoresen
Financial Advisor
Focus Financial Network, Inc.
1000 Shelard Parkway, Suite 400
Minneapolis, MN 55426
Securities offered through Royal Alliance Associates, Inc., Member NASD, SIPC. Advisory services offered through Focus Financial Network, Inc., a registered investment advisor.
IRS and Congress Improve HSA Guidelines
Written by Mary Bates
It just keeps getting better! President Bush’s December signing of The Tax Relief and Healthcare Act of 2006 provides exciting new opportunities for employers and employees beginning January 1, 2007. These changes make HSAs more attractive than ever while they simplify the rules and maximize potential tax savings. The 7 enhancements are:
Increase annual HSA contributions. Now, anyone with a qualified HDHP (High Deductible Health Plan) can contribute the maximum amounts for single or family, which in 2007, the statutory amounts are $2850 for single and $5650 for family. Even if you have a lesser deductible HDHP plan, you can fund your HSA account to the maximum level.
2. Allow full annual HSA contributions mid year. No more pro-rating contributions or the need to set up the program January 1st. One can fully fund their HSA account to the annual limit, regardless of when their plan begins. Penalties may apply if HSA compatible coverage does not continue for 12 months.
One time rollover from FSA or HRA. A one-time rollover from a current FSA and/or HRA. Members must have a health FSA or HRA on 9/21/06, to qualify. This rollover of funds does not count against the annual contribution limit. The maximum contribution is the balance in the FSA or HRA as of 9/21/06, or if less, the balance as of the date of the transfer. Again, penalties will apply if HSA compatible coverage does not continue for 12 months.
Allow a one-time transfer from an IRA to an HSA. A one time irrevo-cable transfer from an IRA to an HSA is allowed. The amount transferred does count towards the maximum HAS contribution for the year, and the amount contributed is not allowed as a deduction. The same penalty rules apply as stated above.
Earlier indexing of cost of living adjustments. HDHP index amounts including minimum deductible, maximum contribution and out-of-pocket maximums will be published in June rather than November.
FSA grace period relief. Participants may now make HSA contributions during the FSA grace period if the FSA balance is $0 or the one-time rollover option is utilized.
7. Allow greater employer contributions for lower-paid employees. Employers may now contribute more to the HSAs of non-highly compensated employees. Highly compensated employees are currently defined as one of the following: a 5% owner during the previous year, an employee whose compensation is greater than $100,000 or an employee in the top 20% of employees ranked by compensation. This provides an exception to the comparability rules and gives employers more options for compensation. It’s always wise to consult your accountant regarding the special transfers and varying contributions options.
These changes are huge, and just
make HSA plans more enticing. It’s worth thinking about, and it may be
time for you to consider…
Mary