May 14, 2012
What’s new for 2013? HSA contribution limits, HDHP minimum deductibles and out-of-pocket maximums will increase.
HSA Contribution Limits:
- Individual (self-only HDHP): $3,250($150 increase from 2012)
- Family: $6,450 ($200 increase from 2012)
Limits for catch-up contributions (for persons over age 55): $1,000 (unchanged from 2012)
HDHP Minimum Required Deductibles:
- Self-only: $1,250
- Family: $2,500
HDHP Out-of-Pocket Maximum:
- Self-only: $6,250 (a $200 increase from 2012)
- Family: $12,500 (a $400 increase from 2012)
For more information view the IRS change or contact us at (520) 721-4848.
March 13, 2012
- 53% of small businesses have little or no knowledge of how self-insured groups work
- 41% of current and former SIG (self insured group) members are unaware they are responsible for member-company claims
- Many are unaware of the legal/financial risks
“While large global corporations today continue to report strong profits on increased productivity, America’s small businesses continue to face challenges to growth, remain wary of hiring and naturally must closely evaluate business expenses,” said Douglas D. Dirks, president and chief executive officer of EMPLOYERS. “While close and continuous examination of costs is smart business, many small businesses are lured by self-insured groups’ promises of lower costs, which unfortunately expose them to increased risk. It’s important that small business decision-makers understand the collective financial risk and liability they inherit should other group members default, leave the group or if the group is forced to close.”
The following are questions businesses should ask when selecting workers’ compensation coverage and if they are already a member of or are considering leaving a self-insured group.
Nine Questions Businesses Should Ask Their Self-Insured Group Administrator:
1. How well funded is my self-insured group?
2. How many claims have occurred while my company has been a member?
3. What is the expected lifetime cost of each of these claims?
4. What does “joint and several liability” mean to my business?
5. What is my company’s exposure if another member of my self-insured group has a claim?
6. Can a claimant sue my company for the full cost of a claim?
7. What liabilities does my company have if I leave my self-insured group?
8. What are the legal requirements of leaving a self-insured group?
9. Will I need to reinsure any costs related to claims that occurred while I was part of the self-insured group?