What to expect for individual plans in 2022?
Rates are increasing/decreasing and benefits decreasing. Expect higher deductibles and copays. Expect to pay at least 8.5% of your income toward your plan premium. Open enrollment will be from 11/1/2021 to 1/15/2022 - a little longer this year.
Individual options are available with Ambetter, BCBS, Bright Health, Cigna and Oscar. Aetna will be back and Medica will be a new option. All carriers offer coverage via the Exchange and are eligible for subsidies. Off exchange options are available with a few carriers for those who aren't eligible for a subsidy. There will be no tax penalty for not having coverage.
IRS sets new 2021 and 2022 limits for HSA contributions
The Health Savings Account limits for 2021 are $3600 for self only coverage and $7200 for family coverage. The limits in 2022 will be $3650 for self only coverage and $7300 for family coverage. The annual "catch-up" contribution for individuals age 55 or older will remain $1000.
Effective 1/1/2019: Mini Cobra
On April 10, 2018 Governor Ducey signed legislation (S.B. 1217) enacting Arizona's Mini Cobra law. This law applies to all group health benefit plans issued or renewed after 12/31/18. This allows employees and dependents with a qualifying event to continue their coverage for up to 18 months. The rules are very similar to those applying to groups with over 20 employees. We have a solution for our clients to manage this new law. Contact our office for more details. Read the bill at: https://apps.azleg.gov/BillStatus/GetDocumentPdf/461873 or click on Cobra in the left hand column above for a brief explanation.
Group Plans
Medical plans are available with Aetna, Bright Health, BCBS, Humana, United Healthcare, Cigna by Oscar and a few more! Ancillary coverage for dental, vision, life, disability and more is available with numerous carriers.
Many clients are returning to small group coverage. Group coverage provides PPO options, Health Savings Account options, and for many clients, lower premium. ACA forbids insurance companies from issuing a group contract to an owner only group or an owner & spouse group. However, a one life group is still available to your W-2 employee. A Micro Group fee may be required.
Level Funded Plans - self funded arrangements for groups of 2 or more enrolled. These plans offer similar or richer benefits than the ACA plans and are usually less expensive as they are exempt from some of the ACA requirements and taxes. They require medical information, from the groups with less than 10 enrolling, in the form of an employee health history form.
To be a small group:
- you must file a quarterly wage and tax report,
- in addition to yourself, have one full-time W-2 employee, not a spouse, working 30 hours/week and
- the W-2 (non-spouse) employee must enroll. Even if the W-2 employee is the only one enrolling, you can offer group coverage.
Catherine M. Barto, RHU, REBC, LPRT
CB Benefits, LLC
5641 W. Megan St., Chandler, AZ 85226
480-940-3711
cathy@cbbenefits.biz