Carbon Monoxide Safety

Update - Health Care Reform Implementation for Nonprofits

Henry Bogdan, Director of Public Policy, Maryland Nonprofits

Maryland is moving forward with health care reform.  Open enrollment for the individual health insurance exchange begins October 1 and "connector agencies" are doing outreach and promotion across the state.

The small employer ("SHOP") exchange will not open for enrollment until Jan. 1, 2014, and the coverage mandate for large employers (50 or more) has been delayed until 2015.  But small nonprofit employers may be eligible for tax credits even now if they provide qualifying coverage to employees, and the Affordable Care Act ("ACA") has notice and information requirements for most employers that take effect this Fall.

By October 1, all employers subject to the Fair Labor Standards Act ("FLSA") must provide a notice to their employees about the new Health Insurance Marketplace (the Exchange), informing employees that they may be eligible for a premium tax credit if they purchase coverage through the Marketplace, and advising employees that if they purchase a plan through the Marketplace, they may lose the employer contribution (if any) to any health benefits plan offered by the employer.

The U.S. Department of Labor has prepared alternate models for this notice, one for employers who offer, and one for those who do not offer an employer sponsored plan.  There is no coverage mandate for small employers with 50 or fewer full-time equivalent employees. The Maryland Health Benefit Exchange is also preparing models that will be tailored for Maryland employers.

Employers are also required to provide employees with a standard Summary of Benefits and Coverage ("SBC") form explaining what their plan covers and what it costs. The purpose of the SBC form is to help employees better understand and evaluate their health insurance options.  There is also a model for this at the Department of Labor website.  Employers should contact their group plan issuers, who should compile and provide these SBC's.  This may be similar to, but is a different form and requirement,  than the 'summary plan description' that insurance plan administrators are already required to provide under ERISA.

The Maryland Health Connection is organizing a series of information forums for small employers about the pending launch of the SHOP exchange.  Enrollment scheduled to open on Jan. 1, 2014 with policies taking effect March 1, 2014 or later.  The forums will be held in each of the six "connector" regions, with dates being planned between mid-October and mid-November.  Maryland Nonprofits will be a partner in promoting these programs. We have asked a number of potential conveners of local groups to join with the Exchange to assure that all nonprofit employers have an opportunity to learn more from the Exchange itself about how it may benefit their organizations and employees.  Contact Henry Bogdan for more information.

The six listed connector agencies are also hoping that local nonprofits will assist them in getting information about the individual exchange to any of their clients or others they serve who may be uninsured or eligible for subsidies through the exchange.  

A short listing of web sources for more information on Health Reform and health exchanges:

Maryland Health Connection - http://www.marylandhealthconnection.gov/

National Council of Nonprofits - http://www.councilofnonprofits.org/resources/resources-topic/affordable-care-act-faqs#now

Small Business Administration - http://www.sba.gov/healthcare

Department of Labor - http://www.dol.gov/ebsa/healthreform/index.html 

Internal Revenue Service - http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home

Marty's mother named 2012 Woman of the Year

Irene Spatafore, mother of Marty Spatafore, CSR here at Gorges & Company, has been named the 2012 Woman of the Year by the Baltimore County Commission for Women in a special ceremony held at the Confetti's Event Center, Towson, MD.

Mrs. Spatafore has made it her duty to help others, whether that be by lending a helping hand to the members of her community or making miracles in the lives of our military. "While I am active in five ministries, my biggest challenge is Angels Supporting Your Troops, Inc., " noted Spatafore. "Our organization name was given to us by the Secretary of Veteran Affairs, Edward Chow. We are a 501c3 non-profit organization, meaning all of our supplies and shipping costs are possible from donations." Angels Supporting Your Troops, Inc. which currently operates out of Sonshine Fellowship Church on Sollers Point Road, was recognized at the Fallen Hero's Ceremony of the General Assembly in Annapolis in February of last year. "The demand is strong in the war zone for supplies. Our military are in harm's way to protect the citizens of the USA. The least we can do is to make an effort and purchase items for our 'goodie' care packages to put a glow and a smile on their faces as they open the box," Spatafore commented. Spatafore added that she is sincerely appreciative for Sacred Heart of Mary, Graceland Park, which has been extremely devoted to assisting the Angles on their journey.

In addition to the churches, organizations and politicians, Spatafore's son Marty also stands strong in supporting the Angels. "He decided to hold a silent auction at his workplace on York Road. Marty baked two mouth-watering Jewish apple cakes at Thanksgiving time, which netted $88 - a big surprise!"

At age 70, Spatafore is more determined than ever to make a difference. Helping others is something she has done her whole life and she doesn't plan to stop anytime soon. "I cant stop, I don't know how to; this is who I am," she affirmed." I would like to give a special thanks to my daughter Valerie, for nominating her mom as Woman of the Year, and to my husband John who gave me three beautiful children, for standing by me as I have set up and worked tirelessly to organize this work dedicated to the troops, " said Spatafore. "The men and women who serve us are so thankful for all that we do. I receive so many letters of gratitude," she explained. "SSG Larry Posey wrote 'I want you to know that I appreciate you supporting the military...I want to let you know what you did was special.'"

In order for Angels Supporting Your Troops, Inc. to continue to provide soldiers with a little piece of comfort from home, they will need postage and supply sponsors. If you would like to support his cause, please send donations to Angels Supporting Your Troops, Inc c/o Irene Spatafore, 7914 Diehlwood Road, Baltimore MD 21222. For more information call 410-284-5274.

By:  Lena Sala

Towing Scams

At first glance, a friendly tow truck happening by after an accident or breakdown can seem like a godsend. But if you didn't call for a tow, there's a good chance it's what authorities call a "bandit" tow truck, which means you'll get your tow and an eye-popping bill.

There are a couple of easy ways to protect yourself. If you have AAA or belong to another roadside assistance program, that's where you should turn when you need a tow because you'll benefit from lower pre-negotiated rates.

Or, your auto insurance policy may offer roadside assistance. If you use it when an accident renders your vehicle undriveable, it's a good idea to ask about the policy's limits on towing and storage before you leave the scene.

If you must use an independent tow truck, it's best to call for one rather than go with a truck that's just passing by. It's also critical that you read the fine print before signing any towing contract. Experts say you should get a printed price or invoice of all towing and storage charges and any miscellaneous fees. The contract also should specify to where your vehicle is being towed.

Small Business Health Care Tax Credit

Small employers that have 25 or fewer full time employees (FTEs) may be eligible for incentives from the federal government to provide their employees with health coverage.  Unfortunately, a very low percentage of employers are taking advantage of this credit.

Which Expenses Qualify?

The expenses that an employer may count toward the tax credit include the health insurance premiums paid for each employee.  Contributions to self-insured plans such as Health Reimbursement Arrangements (HRAs), Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are not eligible for the credit.

What Are the Qualifications?

To qualify for the Small Business Health Care Tax Credit, employers must meet the following criteria.

1. Firm size:  A employer must have less than the equivalent of 25 full-time workers when totaling all individuals' hours of employment.

2. Provide health care coverage:  The employer must confirm that it pays at least 50% of the cost of health care coverage for employees.

3. Wages paid: Employers must pay their workers an average of less than $50,000 per year.

Any employer that satisfies all three of these requirements is eligible for the tax credit; however, the smaller, lower wage employers will receive a larger tax credit than those employers who just barely meet the criteria. Click below to view the IRS instructions for the Credit.

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Calculating the Tax Credit

The Small Business Health Care Tax Credit currently offers a maximum benefit of 35% of an employer’s premium contributions (25% for nonprofits) to a health insurance plan. Only the employer contribution is counted toward the credit—not the entire premium cost. In order to qualify for this maximum credit, an employer must have 10 or fewer FTEs who have average wages of $25,000 or less. The benefit becomes slowly less generous as employers reach the $50,000/25 FTE.

In 2014, the tax credit will increase from a maximum of 35% of premium costs to 50% (35% for nonprofits). The credit will be available only to those who purchase insurance through the Small Business Health Options Program (SHOP) Exchanges. Employers will be able to claim this credit for only two years.

Below is the link to the worksheet that will generate a report for employer size and eligibility for a tax credit. 

https://compliance.benefitmall.com//?bid=m/foUrpuJi2HdHQUG8bRJQ==&fk=1

Nothing About Health Care is Simple

By: Rob Cannon

Maryland enacted small group health reform in 1993 and introduced some of the same provisions as the new national Health Care Affordability Act.  For example, in Maryland, there is no medical underwriting for small employer groups.  When the Maryland law was first enacted, small employer groups had to have two people enrolled in the health benefits program.  Maryland Nonprofits was instrumental in pushing through a change that reduced the requirements to only one full-time staff person for a nonprofit organization.  Maryland Small Group legislation eliminated pre-existing condition exclusions.  This has benefited nonprofits that employ differently-abled people, HIV positive individuals, people who are controlling mental health issues through medication, or other individuals with chronic disease.  Maryland’s legislation has guaranteed coverage, but at a price.  

The increased health insurance costs come at a time when most nonprofits are seeing flat or decreased revenues.  Many organizations have been forced to keep salaries at 2008 levels while absorbing health care cost increases of 20-30 percent per year.  Over the last decade, the cost of providing medical care has risen far more rapidly than most other costs.  You see plenty of ads for drugs on television and in print that may make us feel better, but aren’t a necessity.  People are living and working longer, increasing medical expenses.  The quality of life for most has increased in later ages, but some come at a significant cost, which is why you see more people talking about Long Term Care Insurance.  Yet, despite the wonderful advances in medicines, we are engaging in destructive behaviors like over-eating and under-exercising that result in expensive medical interventions.  Ask any Maryland Nonprofits member that fights cancer if annual mammograms or colonoscopies should be eliminated to reduce the cost of health care… the answer is going to be no.  Ask an advocate for mental health if the drugs enabling a schizophrenic to hold a job should be excluded from health insurance… the answer is going to be no.  All of this (and more) contributes to the double digit rise in health care costs.

This year has seen the introduction of the new Federal Health Care Affordability Act.  In the months since its passage, medical personnel, policy analysts, and lawyers have poured over it trying to figure out how it all will be implemented.  The document has some of the best and brightest minds in DC scratching their heads.   It is difficult for the Executive Director of a small nonprofit who is dealing with fundraising, program evaluation, and balancing the budget to also stay on top of all the new health care rules and regulations.

Since Maryland Nonprofits was founded almost twenty years ago, members have been asking why a health insurance pool for nonprofit employees doesn’t exist. Under Maryland small group law, health insurance pools are prohibited.  Even if a pool were allowed, Maryland Nonprofits members have possibly the worst demographics for such a pool.  The staffs of nonprofits, both large and small, tend to be older, more educated, and more likely than the general population to have on-going medical needs.  Older workers tend to need more medical attention.  More education leads workers to know and seek out the full range of available medical services including lifestyle improving drugs and mental health services.  Nonprofits are more likely to hire individuals that may have on-going medical needs, for example, a cancer support group hires a cancer survivor to head the organization.  This type of employee increases the costs of providing health care to nonprofit staff greater than the general public.  Most nonprofits, however, benefit from the community rates ensuring coverage for all eligible employees regardless of their medical needs or history.  

One of the benefits of membership with Maryland Nonprofits is a partnership with Gorges and Company, Inc., an insurance agency that has worked with nonprofits for almost two decades. Gorges understands the current Maryland law and is staying abreast with the constant changes in the federal law. Gorges can assist you in designing the best possible program for your staff.  Some points to consider:

• In Maryland, health care rates are based on the ages of your staff upon renewal.  Changing the date of a new hire or termination can dramatically impact your rates for a full year.  Gorges can help you calculate the right time to do staff changes to minimize your annual health insurance costs.
• Increased deductibles reduce costs to the employer significantly.   A $1,200 deductible may save $1,500 or more in premium per employee.   Gorges can help you design a program that will enable you to fund the deductible while reducing the overall cost of health insurance.
• We moved a group with a traditional PPO to a new PPO (with the same company) and reduced the doctor copay from $20 to $10 and reduced the prescription deductible from $250 to $100.  The monthly individual premium went from $960 to $877.  The group with 6 employees will save almost $6,000 a year.

For smaller nonprofits, please be aware that you may be eligible for the new health care credit for 2010.  If you have fewer than 25 staff with average salaries less than $50,000, you may be able to collect up to one-third of the premiums paid. 

For more information on calculating the credit, contact Rob Cannon from Gorges at 410.561.8280, 800.449.8280 or robc@gorgesco.com .  To help you save time, Gorges also handles other insurance products for nonprofits like Long Term Disability, Directors and Officers Liability Insurance, and more.  Please talk to Rob about other insurance products on which Gorges can help you save money!

Basic Insurance Issues for Students Attending College

Leaving Home for college can be a exciting experience. In the excitement, parents may overlook the fact that college students encounter insurance issues which haven't been considered. Before there's an auto accident, a fire in, or theft from, a dorm or off-campus apartment, or an unexpected trip to the "ER", its important to review your, and your child's, insurance needs to make sure you have the necessary coverages.
Some key things to consider are:

Q: Does my Homeowners Policy (HO Policy) cover my son or daughters property if he/she lives in a dorm?
A: Most HO Policies cover personal belongings up to a certain percentage (usually 10%) of the personal property limit stated in your HO policy. Because of this limitation, and the possibility your student may bring high priced electronics and valuables to school, its important to check the coverage limits of your policy. If you think you aren't adequately covered, consider increasing your policy limit, or purchase a renters policy to ensure no coverage gaps exist.

Q: Do these coverages and limitations apply if my children live in off-campus housing?
A: Most HO Polices will NOT cover personal belongings for students living in off-campus housing. Nor will the landlord's insurance. In this case, you are encouraged to purchase renters insurance, AND, whether your children reside in a dorm or off-campus housing, compiling a list of possessions, to include purchase prices, model numbers, etc., will assist when filing a claim, with deciding how much renters insurance will be needed, or how much to increase your HO Policy limits. (Taking pictures or videos is also encouraged).

Q: Are there auto insurance issues I should discuss with my agent?
A: Inform your agent if your children go away to college. If they don't take a car, you may be entitled to a premium discount, but still be able to retain coverage should they come home for holidays, or borrow a car while away at school. If they do take a car, premiums may increase or decrease, depending on the location of the school. In addition, maintaining a certain GPA may entitle you to a "good student discount", whether they bring a car to school or not.

Q: Are there health insurance issues to consider?
A: Children attending college who are younger then 26 may maintain coverage on your insurance, as long as they're not offered coverage through their own employer. If your child attends college in another state, your plan's network of hospitals and preferred doctors may not extend there. However, your student will likely have coverage for emergency care, but need to travel to a preferred doctor or hospital for routine care. Check your plan's provisions, or contact your provider to find out what benefits are available.

Q: What if my children don't have insurance, or it's limited by network service issues?
A: Consider purchasing a "student health care plan". Such plans are sold by insurers who have contracted with the college. Contact your child's college for more detailed information. Another alternative would be to purchase an individual health insurance policy through your agent.

Q: Are there other issues to consider?
A: There are several to discuss with your agent including:

• Tuition Refund Insurance
• Life Insurance
• Identity Theft Insurance

Q: How do I know what I should do?
A: Making such a decision about your options is yours- and yours alone under the law. As your independent insurance agent, we can help explain these options. Our agency's job is to help provide your with information, so you can make informed decisions. Please call our office with any questions at 410-561-8280.

Crash Course In Rental Car Insurance

By: Robert Cannon

Memorial Day weekend brings the unofficial start of summer and the accompanying travel season. As Americans set off on their vacations, we offer insight on rental car insurance.

Rental car companies offer Collision Damage Waivers (CDW).  There are a lot of misconceptions about what a CDW covers compared to a personal auto policy or a credit card company’s rental car insurance.

Q. Does my personal auto policy extend coverage to a rental vehicle?
A. Most auto policies will pay for actual repairs to a rental car. The policyholder will remain responsible for the deductible – and for any additional items included in the rental car agreement. Personal auto policies without comprehensive or collision coverage will not cover a stolen or damaged rental car.

Q. Is it true that my credit card company will provide insurance coverage for vehicle rentals?
A. Many, but not all, credit card companies offer rental insurance and will pay for damage to a car if you pay for the rental with that card. A credit card company’s coverage is secondary to your personal auto policy, which means it may pick up whatever your personal auto insurer does not pay – such as your deductible.

Q. If I have a personal auto policy and credit card coverage, am I fully covered?
A. While these may provide sufficient coverage in some situations, they will not cover costs and fees such as towing, loss of use (the period of time the rental car is out of service due to repairs), diminished value and administrative fees tacked on by a rental car company. The renter is always responsible for any loss or damage to a rental vehicle, regardless of who is at fault.

In the end, deciding whether or not to purchase a CDW depends on the coverage included with your existing policy and through your credit card company.  Call your insurance agent and credit card company to understand what you already have and where gaps may exist.

Spring Maintenance Tips

Spring cleaning and spring maintenance tips go hand in hand. Take a cue from the tips below and spruce up your gutters as you spruce up your rose garden.

• Inspect your smoke detectors, and make sure that there is one on each floor of your home. Test them monthly, and change the batteries annually or as needed.
• Check the light bulbs in all your fixtures to be sure they are the correct wattage as recommended by the manufacturer.
• Replace all high-intensity bulbs (such as incandescent) with fluorescent bulbs that don't produce as much heat.
• Check your electrical outlets for potential fire hazards such as frayed wires or loose-fitting plugs. Be sure not to overload electrical outlets, fuse boxes, extension cords or any other power service.
• Keep a multi-purpose fire extinguisher accessible, filled and ready for operation.
• Have your air conditioning system inspected by a professional as recommended by the manufacturer.
• Check for damage to your roof, and clean gutters and downspouts to keep debris from accumulating.
• Check water heater for leaks and corrosion.
• Clean or replace your furnace filter.
• Clean the clothes dryer exhaust duct and space under the dryer. Remove all lint, dust, and pieces of material.
• Remove all dead trees in your yard, and keep healthy trees and bushes trimmed and away from utility wires.
• Safely store oil and gas for lawn equipment and tools in a vented, locked area.
• Repair cracked, broken or uneven driveways and walkways to provide a level walking surface.