In This Issue:

• Health Savings Accounts: An option for employers to dramatically reduce health insurance premiums

• Reverse Mortgages: Something They Never Taught You In School

• Business Security: Cameras Make It Easier

No small employer has been immune to double digit increases as they look to renew their group medical plan each year. In dealing with these increases, many have had to strip their benefits along the way and have had to switch from one insurance carrier to the next on the annual group health insurance carrousel.

More premiums + less benefits + nothing to show for it at the end of the year = major problem.

A new plan with an old twist is becoming an increasingly more popular option in today’s group health insurance marketplace, the Health Savings Account (HSA) and the High Deductible Health Plan (HDHP).

As its name indicates, a Health Savings Account (HSA) is an account that allows consumers to put away a certain amount (up to $2,850 for individuals and $5,650 for families per year) of money to be used on qualified medical expenses. These contributions can be made on a pre-tax basis while allowing the employer to reduce their payroll taxes.  In addition, should you spend the money on qualified medical expenses, it would be tax-free. Many employers have been looking to these accounts to curtail dramatic premium increases in the workplace as they do provide an attractive option to offer alongside a more traditional health plan.

What happens if you don’t spend all of the money by year-end? No problem, unlike other accounts you may have had in the past as part of your benefits package, you will be allowed to carry the remaining balance forward from year to year. Another attractive feature is that should you change employers, the account is portable and can come along with you. You could use it to pay for hospital expenses after an accident. You could also use it to pay for long-term care, continuation of coverage while you are unemployed, eyeglasses or dental work. To be eligible to participate in an HSA, you must be enrolled under a High deductible Health Plan (HDHP). 

Most of the major health insurance companies have developed and begun marketing their respective HDHPs. You will be able to choose a plan with a minimum deductible of $1,100 for individuals or a $2,200 deductible for families.  (A deductible is the portion you must pay before the insurance kicks in.). You could choose higher deductibles, which would result in policies with even lower premiums.  After you reach your deductible, the insurance company would pay a significant portion (in some cases all) of the remaining expenses (there are preventive services that could be covered at no cost to you before the deductible is met however, the majority of services will be covered after).  

In exchange for you agreeing to pay the first $1,100 or $2,200 of your medical bills, you will get a significant discount on your premiums. These premiums have been significant, ranging from 20-50% depending on the type of plan that is chosen.  The expectation is that because you will be spending your money to meet the deductible, you will be much more careful about the health care services you use. You will go to the doctor only when absolutely necessary. You will demand much more of an explanation on why a test is necessary. You will compare the charges for the same planned procedures at various hospitals/facilities. The generic brand of drug at a fraction of the price could be more appealing. The health insurance claims data has shown that most employees will not come close to meeting there deductible; thus allowing the insurance companies to offer these discounted premiums.

At InSource, Inc., one of South Florida’s largest independent insurance agencies, we continue to keep up with the new rules and regulations surrounding these plans.  Our agents are prepared to explain the technical aspects and details to businesses who are interested in providing these benefits to employees. If you would like to find out more, please call or e-mail me as I can be reached at (305) 670-5371 or jking@insource-inc.com.

Remember Mortgage Burning  Parties?  Chances are, you won’t be throwing one any time soon.

More than 25% of married adults age 65 and older are homeowners with mortgages, according to the Center for Retirement Research at Boston College. That percentage is sure to rise as baby boomers retire. Low interest rate and a hot housing market prompted millions of boomers to refinance their mortgages, extending the terms of their loan for years.

One way to deal with the debt is to use part of your retirement savings to pay off your mortgage. But unless you have a sizeable nest egg, that’s probably not a good idea. You might need to make that money last for a long time, and taking a large withdrawal would reduce the amount available to you for later years. Besides, withdrawals from a regular IRA or 401(k) are taxable; a big withdrawal could push you into a higher tax bracket.

Another alternative is a Reverse Mortgage. A Reverse Mortgage is a loan against your home that doesn’t have to be repaid until you move, sell or die. You and anyone else on the title to your home must be at least 62 to qualify. You can use a reverse mortgage to pay off your existing mortgage. The balance can be taken in a lump sum, line of credit, lifetime monthly payments or a mixture of the three.

For further information on how a Reverse Mortgage can improve the quality of life for you, or a loved one, call today. There is no cost or obligation. Cindy Ingersoll, Reverse Mortgage Specialist, 305-677-7119 or Cindy@ChoiceOne.us.
 

Make a progressive move from analog to network video on your existing IP networks, such as LANs or the Internet, for transporting information, rather than dedicated point-to-point cabling, such as that used in analog video systems.

Progressive scan capability is found in only network cameras, but not all network cameras have this functionality. Progressive scan involves exposing and capturing the entire image simultaneously, as opposed to analog interlaced scanning which it the exposing and capturing of only half of the lines in the image and the other half of the lines 17msec later. With interlaced scanning, if an object is moving the image will become blurry. In a progressive scan image all the lines are scanned in perfect order so there is virtual no “flickering” effect.

While interlaced scanning may be sufficient under certain conditions, progressive scan technology allows for far better image quality on moving objects. Consider a person running away or the license plate on a moving vehicle.

When cameras capture moving objects, the sharpness of the frozen images depend on the technology used, and progressive scanning consistently produces the best results clarity and recognizing important details.

By selecting a network camera that has open interfaces (an API of Application Programming Interface) it will increase your choices in software applications and will ensure that you are not tied to a single vendor.

For more information on Remote accessibility, Video Management, Wireless Networking  call Bill Meiklejohn 305-934-0340 or Bill@Meiklejohn.us.