Question of the Month

Question: What is the Pre-Existing Condition Insurance Plan (PCIP)?

Answer:   PCIP is the Pre-Existing Condition Insurance Plan. PCIP was created under the Affordable Care Act for people who have been unable to get health insurance due.  To be eligible for PCIP, you must have been uninsured for at least the last six months, and have a pre-existing condition or have been denied coverage because of your health condition.  As of July 1, 2011, rates have been lowered in Texas and are much more affordable.

Past Questions of the Month

Question: What is Healthy Texas?

Answer:    Healthy Texas is specific to small employers in Texas as the program leverages public & private funds.  Healthy Texas is a statewide health insurance program designed for currently uninsured small business owners and their employees to access quality health plans at an affordable price.  Healthy Texas plans are provided by two private carriers at a significant cost savings.  The Texas Department of Insurance has contracted with Celtic Insurance Company and United Healthcare to be the participating health plans in the Healthy Texas program with limited plan design options.

 

Question: What are the ERISA Bonding Requirements for our 401k plan?

Answer:   The Employee Retirement Income Security Act (ERISA) provides that all plan Trustees who "handle" the plan funds or other property must be bonded.  A fidelity must be obtained at the start of each reporting year from a surety insurance company in the amount of at least 10% of the amount of the plan funds handled from the previous reporting year ($1,000 minimum and no deductible).  It must provide for a discovery period of one year.  A blanket bond, either multiple-penalty or aggregate penalty, is acceptable.    If you invest in certain types of so-called "Non-qualifying Assets" such as real estate, limited partnerships, or other non-marketable securities and items not regularly traded on an established market, your bonding requirement may be increased or an an audit may be required. 

Question: Can mileage for trips to the doctor be reimbursed from my FSA/HRA/HSA? 

Answer:   Yes. You are eligible to be reimbursed for mileage expenses incurred for a medical reason. Higher gas prices have prompted the IRS to make an unscheduled midyear increase to the standard mileage rate.   The rate for driving for medical purposes rose to 23.5 cents per mile for the second half of the year of 2011 from 19 cents in the first six months of 2011.