GNYADA Insurance Brokerage Brief

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Oxford Exit Affects 2017 Health Insurance Renewals

Oxford Health Plans (NY) recently announced their decision to leave the commercial market. Impacted groups and members will be those enrolled in “small group OHP New York HMO” and “large group OHP New York POS” products, as of January 1, 2017. The withdrawal will not affect Oxford’s OHI platform, which includes PO, PPO, Metro and HSA plans. Affected groups and members will receive a notice form Oxford approximately 180 days prior to their 2017 coverage end-date. This means notices could be received any time between now and June of 2017, depending when that renewal-date is, and will outline any actions to be taken as well as other available coverage options. Individual employees obtaining their Oxford OHP coverage through the New York State Department of Health must enroll in a new plan to have coverage in 2017. The last day of coverage for these individuals is December 31, 2016. This would be considered a qualifying event which would permit an employee to sign up for their employers’health insurance plan, which will likely be their best coverage option, as opposed to waiting for open enrollment.

If your dealership is being affected by this Oxford change and you would like to look into alternative products from the GNYADA Insurance Brokerage, please call the Brokerage at 718.746.8100.

Health Savings Accounts Benefit Dealers and Employees

A Health Savings Account (HSA) allows individuals or families to save money for medical expenses and reduce their taxable income. If you enroll your employees in a high-deductible health insurance plan (HDHP), those employees qualify for an HSA. Increasing numbers of dealerships, both large and small, are offering HSAs because they bring the following benefits: • They are less expensive than tradition plans. Employees set aside pretax dollars for medical expenses, which reduces cost for both them and their employers. • Employees are more empowered and knowledgeable about their healthcare plan. They typically become more cost-aware in selecting medical treatment and healthcare providers, for example.

The IRS recently released updated guidelines on the maximum contributions for Health Savings Accounts (HSA) in 2017: • In 2017, individuals will be able to contribute $3,400 to a Health Savings Account, and families can contribute $6,750. • The minimum individual deductible for a HDHP is $1,300 and $2,600 for a family. (Most common deductibles are $5,000 for an individual and $10,000 for a family.) • The maximum out-of-pocket limit for an individual in a HDHP is $6,550 and $13,100 for a family.

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