There Ought to be a Law
By Staff -- Gifts & Decorative Accessories, 6/18/2007 8:59:00 AM
Legislation pending in the House of Representatives would make it easier for Association Health Plans (AHPs) to operate. It would address what Marshall calls the “one primary difficulty that insurance companies face in creating a real insurance plan for an association. Each state has its own set of requirements, requiring the plan to be registered in every state and basically include any requirement mandated by any state.”
The Department of Labor estimates that small businesses save an average of 13 percent through AHPs, and as much as 25 percent on premiums. Should the legislation become law (President Bush supports the concept), the Congressional Budget Office forecasts that as many as two million more small firm employees and their dependents could get insured. However, passage is not guaranteed: the House has several times passed such bills, but none has yet cleared the Senate.
On the advice of a consultant, the GHTA delayed implementing a health insurance program until such legislation passes. However the organization offers an associate member category so independent contractor salespeople will qualify for insurance once it becomes available.
One downside of AHPs is that they are not subject to the same regulations as group health plans – as such, they can raise premiums, charge different amounts for different members, or choose not to cover certain conditions. But they are often cheaper for the same reasons.
RETIREMENT FAQS
The Small Business Administration suggests asking the following questions before adopting a retirement plan:
- Is it a qualified plan? If so, employer contributions are tax-deductible and employees' investment grows tax-deferred.
- Does the plan offer a number of investment options? They should include a stock, bond, money market and balanced fund.
- Can the employee transfer money from one fund to another?
- Does the plan provide daily valuations?
- Is there a toll-free number employees can call to get valuations and transfer funds?
- Is local service provided?
- Does the plan come with enrollment support?
- Is the company solid, with a good reputation and ratings?
