HDF 322 Lecture 17 Outline of Last Lecture I Health Insurance Outline of Current Lecture II Managed Care Plans 80s and 90s III COBRA IV HIPAA V Hassle Factor VI The Disability Disconnect VII Disability Income Needs VIII Disability Income IX Taxation of DI Benefits X DI Coverage Sources XI DI Provisions Clauses Current Lecture I Managed Care Plans 80s and 90s a in 80s and 90s and currently we have managed care we have physicians that group themselves into associations like in networks and they give cut price breaks to employers if their employees will use them you can do it with a PPO HMO or POS II COBRA These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute this came in 68 this budget had COBRA that said if you were fired if you were let go if you quit your job you would be able to go on to COBRA AND receive the same group plan you were using only you had to pay 100 and another 2 you had a timeline and only employers with 20 or more employees had to follow and said you had to do this within first 60 daysAfter enrolling in HDF Jimmy is full time student too old to be covered he may be eligible for COBRA Which would he be eligible for 1 Parents health insurance is group offered through company of only 30 days III HIPAA came about in late 90s and what it did is that it said if you have preexisting condition it must be covered when you go from one employer to another at this time people could switch jobs when they had preexisting conditions couldn t move to better employer bc health insurance wouldn t cover pre existing condition this is very important law credible coverage once you lose you cannot be un inusred for more than 63 days COBRA and HIPA work together for college students now we have ACA and we will see that COBRA is still gonna work and HIPA is for pre existing conditions and for adults its not supposed to matter as is for children in 2014 IV Hassle Factor one thing you need to do in new health plan is call physicians and get an appointment get physician make appointment get bookwork done so when you need coverage you have a doctor and you wont have to go to a clinic V The Disability Disconnect Came from CPA magazine about disability less than 1 3 of workers have long term coverage less than 1 3 in private 2 3 of adults working see home savings and investments more valuable more than earning power discount their ability to earn income about for less than one year was adequate 42 said rely on savings VI Disability Income Needs What is a disability Something that prevents you from doing normal things and getting normal income What s the probability of becoming disabled 1 3 people will have disability in your life for over 3 months or more VII Disability Income 14 in TEXAS have a mental or a physical disability see slides don t need to know the stats exactly but a lot of people do live pay check to pay check VIII Taxation of DI Benefits If you pay own premium out of your pocket that money has already been taxed for tax purposes so benefit payments are not taxable income But if 3rd party pays premiums for you then that money is a deduction write off for business and has not been taxed so your payments are taxable depends on who pays the premium you pay payments not taxed 3rd party your DI payments are taxed IX DI Coverage Sources THIS IS IN ORDER OF PREFERENCE OF WHAT YOU CAN CONTROL Individual very expensive you set provisions you have control Employer Group what a lot of people have the employer decides the way you carry it yes more reasonably priced but not control Association Group certified financial planners CPAs engineering an association like the ex students but not very good policies change often Social Security very tough to get about 50 who apply get it Worker s Compensation have to be on the job to get worker s comp but 300 dollars a month doesn t cover much its limited in time and scope X DI Provisions Clauses THIS IS IN ORDER OF PREFERENCE OF WHAT YOU CAN CONTROL Individual very expensive you set provisions you have control Employer Group what a lot of people have the employer decides the way you carry it yes more reasonably priced but not control Association Group certified financial planners CPAs engineering an association like the ex students but not very good policies change often Social Security very tough to get about 50 who apply get it Worker s Compensation have to be on the job to get worker s comp but 300 dollars a month doesn t cover much its limited in time and scope