Medical Savings Account - Maryland Update

The State of Maryland has expanded its coverage of Medical Savings Accounts (MSA) to include small employers under the Comprehensive Standard Health Benefit Plan. Beginning with the June 1998 open season, small employers (1 to 50 employees) can offer the Medical Savings Account health insurance plan as a health plan option. Currently, the MSA was only available to one person Schedule C or one person Corporations.

The following restrictions and/or additional benefits have been placed on the MSA:

1. Only health insurance carriers working in the group market can offer an MSA.
2. Contributions for funding the savings account may be made by the employer or employee, not by both.
3. Minimum contribution levels to the savings account are established.
4. No medical underwriting.
5. Well child care and immunization subject to $10 copay and not subject to the overall deductible.
6. A carrier may not impose a minimum participation requirement for a small employer group if any member of the group participates in a medical savings account.

To date, we have not received any information from current health insurance carriers on what MSA plans will be available in June.

For more information, contact Del Conte, CFP at (301) 248-2078 or (800) 861-1239.

Delaware - Small Group Health Insurance Reform

The State of Delaware has enacted legislation to make coverage available to small employers and their employees. This law requires health insurers that market to small employers (with 1 to 50 employees) to offer, on a guaranteed-issue basis, a basic or standard health insurance policy that includes hospitalization, out-patient care, primary care and preventive care.

Any health insurance plan sold to a small employer must also be guaranteed-renewable and it must limit waiting periods for pre-existing health conditions to no more than 12 months. Additionally, for employees who go from one insured small employer to another, the coverage must be portable.

For more information, contact your local Delaware insurance broker/health carrier or Del Conte, CFP at (301) 248-2078 or (800) 861-1239.

April-May, 1998 - Page

NOTICE!

Self-Employed (1 Person) Group Health Insurance

Open Season - June, 1998

Availability:

• All Self-Employed Individuals
• Sold Proprietors
• One Person 1120/1120S Corporations

Note: LAW CHANGE - Expansion of law to include Group Medical Savings Accounts (1 to 50

employees).

Group Rates - No Medical Underwriting

Enrollment Periods: June 1998, coverage effective July 1, 1998

December 1998, coverage effective January 1, 1999

Guidelines: Schedule C or F Filers, One Person Corporations Must file Form 1040 and Applicable Schedule C or F, or Form 1120/1120S with Carrier

CHANGE IN MARYLAND LAW: SENATE BILL 69 (passed April, 1997) clarifies the definition of a self-employed individual for purposes of obtaining health insurance during the two mandated open enrollment periods. Health insurance issued during these open enrollment periods are guaranteed issue (no medical underwriting required).

A self-employed individual is one who: "lives, works, or resides in this state; and is an individual or sole proprietor or is organized in any other legally recognized manner that a self-employed individual may organize such that a substantial portion of the individual's income is derived from a trade or business through which the individual or sole proprietor has attempted to earn taxable income and for which the individual has filed the appropriate IRS form or forms and schedule for the previous taxable year."

For More Information, stop by the M.S.A. Insurance Booth, or contact Del Conte, CFP at (301) 248-2078, (800) 861-1239 or Fax - (301) 248-9251.
April-May, 1998 - Page