Hornet Business "BEE" Informed!

News and notes from the desk of Tom Keeley

It's "Section 125" time!

Yes folks, that means insurance. I know what you're thinking....OH JOY!! But, do you know what it's all about, why we do it and what your options are? I want to help you figure out cost savings and select coverages that you really need! Let's start thinking about maximizing your take-home pay and only choose options that we need. Sounds like the old "Discount Double Check to ME! Well, it is!

Read along, watch the videos and follow these tips to make wise choices before you spend too much and perhaps not know what coverages you have.

ALSO: 2016 will be a short "Section 125" plan year: Beginning March 1 through December 31st. Beginning in 2017, all insurance coverages will begin January 1 and run through the calendar year. Everyone will be asked to review all of their choices each November!

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Flex Spending Plan

Flexible Spending Account (FSA)

Don't get confused, and listen close! The Flex Spending Plan is just 1 part of the entire Tax Provision for pre-taxed deductions considered "Section 125"! Many employees think this account is called Section 125. You can withhold up to $2500 in a calendar year in the Flex Spending Account (FSA). The FSA account balance must be used or the money is lost. Make sure you know what you will need to set aside and be sure to spend it!

Plan 4 people! Listen carefully: You can only have a limited Flex (FSA) for vision, dental or child care if you have your own personal Health Savings Account (HSA)! You are not allowed to contributed for medical reimbursement in 2 different accounts in the same year!! Be careful or when you file your the information from your W2 in your taxes, you may be notified that 1 of the accounts requires you to be taxed! The IRS is watching!!

Aflac commercial: "Fore! Days"

Why choose accident coverage?

Accident coverage can help you if you choose Plan 4 Medical. Your plan is a High Deductible Health Plan (HDHP). This plan does not have an emergency room benefit like Plans 2 and 3. Those plans maximize the out of pocket expenditure at $175 for the emergency room visit and $100 for Urgent Care visit/minute clinic appointment. Accident coverage can help reimburse dollars when you have to use your deductible. Accident coverage can also be beneficial for Plan 2 and 3 participants by reimbursing for the cost of those visits and follow-up care.
Aflac - Pidgeon Commercial

Do I need Short-term Disability coverage?

You may not! Make sure you know how many days you have accumulated and can use for a medical issue. If you have over 60 days of paid time off for personal illness or "sick" days, you may be able to forego the short-term disability cost while receiving full pay when you are off for longer than 2 weeks continuously. However, there are some other benefits like travel expenses that may warrant consideration of this benefit. If you do not have accumulated days, this is an excellent way to receive 60% of your pay while you cannot work for medical reasons.

Is Critical Illness coverage and Cancer insurance a good option?

Maybe! A HUGE benefit with carrying critical illness insurance is the ability to choose the lump sum dollar amount. Remember, the cost is specific to the pay-out you select. This benefit covers 9 other major medical issues besides cancer. Through AFLAC there is a another benefit called Cancer Care. This benefit covers chemotherapy, transportation, hospital stays, and surgeries. Cancer Care will provide insurance coverage for ongoing treatment expenses. Critical illness coverage alone can be the least expensive option; however, you will not receive payments as you are going through treatment. Also, each coverage will provide dollars back for wellness visits. Check it out!

Group Life Insurance, Health, Dental and Vision

Remember, even though these coverages were listed on your deductions review sheet, Health insurance coverage, Dental coverage and Vision insurance are elections that happen in November with a Plan Year of January1st to December 31st. Your current elections along with a Health Savings Account (HSA) for Plan 4 members are already in place for this year and require a qualifying event to drop or add participants or move health plans. Your next opportunity to make open elections of coverages will be in November.

Now that you know all you can about "Section 125"; in the insurance world, you are considered a "MAJOR ROCK STAR!!!" Enjoy this clip:

MAJOR Rock Stars!