TASC CEO Blog

As I wrote in my last blog, I recently sat on a panel of healthcare experts to discuss the impact of recent legislation and regulation. The legislative phase of healthcare reform may be over for now, but the implementation phase shows no sign of letting up. Meanwhile, astute employers are constantly evaluating and revaluating what healthcare reform means to them and how they will be impacted. Previously, I looked at the impact of this legislation on employee benefits accounts. In this post I focus on the new documentation and notice requirements created by the Patient Protection & Affordable Care Act of 2010 (PPACA) and other related regulatory actions.

Now mandated by the new regulations is the requirement—imposed on various benefits Plans—that certain notices be distributed to employees directly or disclosed to them in written Summary Plan Descriptions (SPDs).  Compliance is even more challenging and confusing because some notices must be distributed only once, and some must be distributed annually. Because the Public Health Service Act (PHSA) amended the Health Insurance Portability and Accountability Act (HIPAA), failure to comply can be quite costly for an employer/Plan Sponsor. For example, failure to comply with these reforms—much like failure to comply with HIPAA portability rules under ERISA—is punishable with a $100/day penalty per employee (for every employee who is affected by the violation)  until said violation is corrected. In addition, such noncompliance also requires self-reporting, and even after the violation is corrected any failure to self-report may result in additional fines/penalties.

Beginning in 2012, all healthcare plans and insurers must create and distribute a document summarizing benefits to plan enrollees and policyholders. To be separate from the SPD, this document must include the following:

• Definitions of standard medical and insurance terms.
• A summary of the coverage provided, including any cost-sharing provisions.
• A description of any exceptions to or limitations on coverage, and the renewability and continuation of the plan/policy coverage terms.
• Examples of common benefits scenarios to illustrate coverage.
• A statement clarifying whether the plan or policy provides minimum essential coverage.
• Contact information for consumer convenience.
• The Act prescribes specific formatting requirements for this summary document.

Who is responsible for ensuring that documentation and notice requirements are met? Per the regulations, health insurers of fully insured plans are responsible for providing notification. But the requirement doesn’t stop there…  As also spelled out in the regulations:  it is the ultimate responsibility of the Employer Plan Sponsor to ensure Participants receive Notices. Yes, that’s right, ultimate responsibility again falls on the employer.

Of course, this comes down to just one question: Where do employers go for assistance? They can look to their broker or agent. They can seek legal counsel. They can resolve to stay on top of this issue—and to avoid the inevitable pitfalls—all by themselves. The healthcare scene is constantly developing and transitioning, and I certainly wouldn’t advise any of those options. Instead, of course, I’d suggest they put their trust in TASC, an administrator which is already all over this! As always, stayed tuned for future updates.

Recently, I was on a panel with other healthcare experts brought together to discuss the impact of recent legislation and regulation, including the Patient Protection & Affordable Care Act of 2010 (PPACA). Moderated by Barbara Zabawa of Whyte, Hirschboeck, Dudek S.C., other panelists included Laura Brown from the Office of the Commissioner of Insurance, Pete Frittitta of R&R Insurance Services, Inc., and Randy Pinnow of Kolb+ Co. The panel discussion was part of a day long workshop on Human Resources (HR) issues.

One part of the discussion focused on the impact this legislation continues to have on benefits accounts. For example, over-the-counter drugs not prescribed by a doctor are already excluded from reimbursement through a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Arrangement (HRA). This exclusion continues to challenge employees who may no longer purchase these necessities tax free.

Coming soon are limits for medical FSA contributions. Effective January 1, 2013, employees will be able to contribute no more than $2,500 to a medical FSA in a Plan Year. Of course, a husband and wife with access to separate FSAs can each max out their Plan and increase their family’s limit to $5,000.

Coming in 2018, an excise tax will be imposed on high-cost insurance plans. This will affect plans with aggregate expenses that exceed $10,200 for individual coverage and $27,500 for family coverage. There are lingering questions regarding this provision…  Will the portion an employee runs through an FSA count toward that total?  Stay tuned for more.

Of particular concern to HR personnel are the administrative actions that need to be taken to comply with the new rules. Again, for example, TASC quickly updated our Plan Documents to accommodate the federally mandated extension of healthcare coverage to dependent children through age 26. Further, while delayed twice already, the new W-2 reporting requirement is now scheduled to take effect in 2014. The formula for determining the amount to report is complicated and employers are well advised to leave this calculation to administrators like TASC.

Of course there are opportunities for gains as well. One that comes to mind is the Small Business Tax Credit. To get the credit, a business must have fewer than 25 full-time workers or the equivalent (for example, two half-time employees equals one full-time employee), must pay an average annual wage of less than $50,000, and must cover at least half the cost of health insurance premiums for their workers. Through 2013, the tax credit covers up to 35% of the amount a qualifying business spends on its health insurance premiums. In 2014, the top tax credit bumps up to 50%. The credit is available for up to six years. Employers should consider how this credit plays against the traditional deduction (Section 162) and choose the most advantageous route for their circumstance.

In the future we will see grants to help small businesses provide wellness programs to their employees. Eligible employers will be those without a workplace wellness program who employ fewer than 100 individuals who work 25 hours or more per week. Other than that, the details of this program have not been worked out. TASC will step in to help facilitate the grant competition process for our participating employers.

Clearly, many of these new provisions are still very much in play. TASC continues to watch these developments to determine the best course of action for our customers.  In my next blog, I will look at the new notice and documentation requirements.

Although you may not be seeing it in the papers or on the internet every day, and although the economy and jobs have replaced it as the hot topic among candidates, the healthcare reform bill is still very relevant to our industry. Provisions of the bill-known as the Patient Protection and Affordable Care Act (PPACA)—continue to come into law and modifications and clarifications of the bill continue to be released. Court cases regarding portions of the bill remain very much in play.

For example, here are some recent PPACA-related updates that we are following:

• The deadline has passed for submitting a waiver request to the annual HRA Plan limits. This provision prohibits health plans from imposing annual “caps” on the reimbursement of essential health benefits. The deadline to submit a waiver request ended on September 22, which means applications are no longer being considered.
• Another provision we are watching is CLASS, the Community Living Assistance Services and Supports program.  According to various sources, the Obama administration is putting a financially troubled part of the 2010 healthcare reform law on hold, leaving in doubt whether the benefit for disabled Americans will ever be implemented.
• The Department of Health and Human Services recently rolled out the initial regulations regarding the establishment of State Health Insurance Exchanges under PPACA. Exchanges are state-based competitive health insurance marketplaces through which individuals and small businesses (with fewer than 100 employees) can purchase private health insurance.
• The Obama administration chose not to ask a federal appeals court for further review of a ruling striking down the centerpiece of the president’s sweeping healthcare overhaul—the mandate that individuals must purchase health insurance if they have none. The decision makes it more likely that the U.S. Supreme Court will hear the case during the court’s current term.

Needless to say, there continues to be a lot of movement with these regulations – and a lot to review, research, and analyze. For that reason, we made the move earlier this year to create a new position on our TASC corporate roster. Designed specifically to help us keep up with the ever-changing governmental landscape, our new Legislative Analyst position is held by Jason Westphal. Jason spends his days reviewing, analyzing, and interpreting Internal Revenue Service rulings and clarifications, governmental and healthcare related blogs, industry opinions, and upcoming trends. His efforts are another example of how TASC makes the investment to ensure we’re offering the most up-to-date and innovative services possible, how TASC strives to leave no stone unturned when it comes to protecting the compliance of our services.

We have made it easy to follow the efforts of our new Legislative Analyst.  Just visit TASC’s Capital Connection website (www.tasccapitalconnection.com). The Capital Connection will keep you updated on all the latest legislative action that affects our Plans. As is our custom, TASC is ready to adapt and capitalize on any change that affects our industry. You can count on it.

I don’t think it’s immodest to say that here at TASC we have won our fair share of awards.  The Better Business Bureau, Benefits Selling Magazine, and Ernst & Young’s Entrepreneur of the Year program have all bestowed awards on TASC.  While each honor is certainly gratifying, a recent award we received is especially so.  I am pleased to announce our newest achievement and recognition as Dane County’s Best in Business.

What makes this award so special?  It’s the fact that it was selected by an independent panel of community business leaders who are right in our hometown.  To be recognized by those who know you best is a pretty strong statement and one we take very seriously.

Since 1987, the Best in Business Award has been presented to outstanding Dane County businesses to showcase their business achievements as well as their commitment to customers, employees, and the community.  Specific awards criteria are used, including growth, the recipient’s standing among its competitors, its adaptation to changing markets, response to customer needs, and commitment to the community, and the company’s workplace environment.

I speak on behalf of TASC’s management, Board of Advisors, and team of employees when I say we are extremely proud to be recognized and honored in this manner.  We strive to provide the best quality and service to our customers, to foster a creative and fun work environment for our employees, and to be a productive and charitable member of our community.  It’s sure rewarding to have been recognized for the very attributes we attempt to achieve!

High marks for TASC

It shouldn’t come as too much of a surprise that other business leaders appreciate what we have going here at TASC.  For years we have been hearing the same message from our business customers.  In our latest Participant Satisfaction Survey, FlexSystem received a high approval rating—with 93% of the respondents saying they are Very Satisfied or Satisfied with TASC.  And in a mid-year Client Pulse Study, AgriPlanNOW and BizPlanNOW also received a high approval rating—with 86% of the respondents saying they are Very Satisfied or Satisfied.  Such fine customer approval ratings beat winning awards any day!

And why are our customers so satisfied with TASC?  They tell us it’s because TASC listens and TASC responds.  In striving to maintain this high esteem we have created our new Voices Carry program; it’s in place to help us better listen to our customers so we may respond more swiftly than ever.  With customer feedback as our guide, we are able to continuously improve our services to better meet the evolving needs of those we serve—improving their overall experiences with TASC. With a program like Voices Carry, who knows?  There may even be more awards in our future!

Back when I was traveling about, repeatedly trying to convince accountants and tax preparers to offer AgriPlan and BizPlan to their Clients,* invariably I would be asked, “Why should my Clients pay you to do this, when I can do it for them myself?” Along with my replies of “Not quite,” and “Not by a long shot,” of course I would talk with them about our expertise, our technology, and our experience. But the clincher? All I really needed to mention was our industry-exclusive Audit Guarantee. Case closed. Recently, we had a situation that reinforces the value of TASC’s Audit Guarantee.

Milo and Sharlyn Shellito operate a family farm in Kansas. Milo is the owner and operator of the farm, Sharlyn assists with many tasks related to the farm operations. In 2001, the Shellitos implemented an AgriPlan, and through the years they followed our Plan procedures very stringently. In 2004, the Internal Revenue Service (IRS) audited the Shellito’s Plan, questioning whether Sharlyn was a bona fide employee of the farm. On the advice of their AgriPlan Provider, the Shellitos rejected the IRS’ ruling and took the case to a local tax court. Unfortunately the local tax court agreed with the IRS. At this point, the Shellitos called on TASC and our Audit Guarantee.

Without hesitation or reservation, TASC appealed the case. Not once, but twice. Recently, the Tenth Circuit Court of Appeals unanimously reversed the Tax Court’s decision. It didn’t like the twisted reasoning the Tax Court had used to determine Sharlyn’s employee status. To be clear, the Tenth Circuit didn’t officially state that Sharlyn was Milo’s employee, instead it reversed the earlier decision that she was not Milo’s employee.

This case, as with others, clearly illustrates the value of TASC as a third-party administrator. Without our support, the Shellitos would have been railroaded into giving up their legally obtained deductions. Sharlyn Shellito put it perfectly when she said that without our support the case wouldn’t have gone as far as it did. “It meant a lot. Because we would have had to hire an attorney on our own and that would have cost us a lot of money, probably a lot more than we owed,” says Sharlyn.

Tax expert Vern Hoven takes it even further. “In Milo’s case, the reason he did so well in the Court of Appeals is due to the instructions, advice, and support from TASC,” he noted. “Most importantly to Milo, TASC also provided the legal defense of this IRS audit. This tax case didn’t cost Milo a dime!”

We back our Plan. We support our Clients. And we don’t give up. Add these three to the many other reasons to put your trust in TASC.

*Newly revamped as AgriPlanNOW and BizPlanNOW.

At TASC we are always thinking up new ways to deliver fast, accurate and accessible services to our customers.  I can’t express how satisfying it is when one of our innovations begins to take off.  Already over 2,000 TASC customers have downloaded the new MyTASC Mobile App and are enjoying the convenience it offers!

With MyTASC Mobile, Participants can use their mobile device to easily stay current with their FlexSystem account balances from anywhere at any time.  MyTASC Mobile App is secure and available as a free download to a smartphone, or other mobile device.  It is easy to login with a current MyTASC username and password, and access to account information is secured through Secure Socket Layer (SSL) encryption.  Coming soon, Participants will be able to submit requests for reimbursement and substantiation documents, and view account transactions.

The need to check an account balance can happen at any time.  Is there enough money to pay for a child’s braces?  Is there enough in the account to cover the prescription the doctor just wrote? With the MyTASC Mobile App, Participants hold right in the palms of their hands all the information they need to make informed decisions.

Since its release, we have been averaging about 45 downloads a day from the Apple Store alone.  Through August 18^th, the MyTASC Mobile App has been downloaded 1,406 times through Apple and 746 times via Android.  One of the first to download the MyTASC Mobile App is Jeanne LaFountain, Principal of the Lee County School District’s Early Childhood Learning Services in Fort Myers, Florida.  Jeanne sent us this message regarding the App.

“Can I just tell you that you guys are the BEST!?!  I love all the things you do in insurance and benefits to keep us informed and make things easier,” wrote Jeanne.  “Love this (MyTASC Mobile App) feature!!!  Love it! Love it!”

Wow.  Thank you Jeanne.  There’s more where that came from!  For example, TASC Mobile also offers text messaging and email notification. Once again, Participants can use these mobile services daily to obtain account balances, request reimbursements, and receive account status alerts.

Customers are downloading TASC Mobile every day.  Download the TASC Mobile App today at either the Apple Store or the Android Market.  Don’t be the last in your neighborhood to go mobile with TASC!

Whoever came up with this old saying—the more things change, the more they stay the same—never worked at TASC!  I’m not exaggerating when I tell you that the quantity of enhancements and innovations we are working on is truly remarkable, even by our standards.  We have never worked on so many big projects at the same time.  All of these developments directly relate to one of our key corporate initiatives for 2011: improving our customers’ experience.  Let’s take a brief look at the innovations that TASC has already released or plans to release very soon.

MyBenefits. MyCash. MyWay.
After years of anticipation, the TASC Card cash account—called MyCash—is scheduled to go live soon for FlexSystem Participants! When MyCash is activated, all reimbursements (where the TASC Card is not used) will automatically be made to the employee’s MyCash account.   As many already know, the TASC Card streamlines the reimbursement process by qualifying and paying for eligible medical expenses on the spot.  No more need for reimbursement request forms and receipts.  No more waiting for reimbursements!  And with funds in the MyCash Account users can pay for healthcare and general expenses with just one swipe of the card!

MyServiceCenter
For all TASC Plans, the MyService Center provides a comprehensive summary of Plan activity, showcasing service requests, reports, and service activity for each of our products. It’s all about creating more visibility, transparency and accountability. Only TASC gives Clients this kind of unparalleled control and power over their Plans.  At MyService Center Clients can submit secure and private requests for assistance, and then track their requests and receive personal communication from TASC.  In addition, Clients can review their feature and additional service utilization to ensure they’re optimizing their Plan.

Claims ConneX
Claim ConneX will streamline and simplify the request for reimbursement process, reducing the workload for all concerned.  Available at no additional cost to Client or Participant, when established for a DirectPay Plan, coordination and integration between the health insurance carriers and TASC means claim payments will be timelier and the risk of fax transmission and reception failure will be eliminated.  Paperwork will be reduced, saving everyone time and money!  And with less paperwork, privacy of personal health information will be further protected.

TASC Mobile
Even texting is quickly becoming old school! When launched, TASC Mobile will provide FlexSystem Participants with fast access to TASC on any web-enabled mobile device wherever an Internet connection is available.  TASC Mobile will allow employees another way to securely check balances, view transaction details, transfer funds, make a claim, submit substantiation, and more.  Designed for popular phones like iPhone or Android, TASC Mobile protects against fraudulent activity by verifying user identity and using advance encryption technology to prevent unauthorized access.

Microbusiness Web Enhancements
TASC has enhanced the web experience for our valued AgriPlanNOW and BizPlanNOW Clients. This upgraded website is designed specifically for small business owners and features some great tools, including the ability to track expenses, manage bank account information, and request a Year End Report. In addition, Clients can access account summaries, training materials, and request service through a MyService Request.  Future enhancements will include the ability to view/edit/print all Plan reports and statements, payroll functionality, conversion to the TASC Card, age 26 tracking, and more!

As you can clearly see, the pace at TASC never slows!  Watch for updates on these and future innovations throughout the rest of 2011.

I talked about it at our Annual TASC Company Meeting.  I talked about it again during the Provider Incentive Program convention in San Antonio, Texas.  It’s a topic that is very near and dear to my heart: philanthropy. I know that many of you are philanthropists in your local communities.  I am sure you think as I do, that giving back to the community makes you feel good, helps you feel connected, that you are part of something bigger, something deeper.

With the assistance of several members of TASC’s Board of Advisors, I developed the concept of Active Philanthropy, which is how I describe my involvement in the community as a business executive/owner. Active Philanthropy is not just writing a check; it’s showing up, contributing resources and getting engaged in the process.  This includes giving not only your money, but also your time, your mind, and your heart.

It’s true that most of us do not become involved in philanthropy for business reasons, yet there is a business aspect to philanthropy.  Being active in your community creates business opportunities, builds brand awareness, and increases networking opportunities for your business. In addition, philanthropy is part of the personal development path for many executives and business owners.  Through philanthropy you encounter opportunities for formal and informal learning from other business leaders, and through philanthropy you will develop relationships with other business people that could benefit your company.

Roughly five percent of TASC’s profits are available to contribute to philanthropic efforts. This commitment is manifested in many ways, with the largest component going to agency and volunteer development and healthcare related directives. Examples of this at TASC include a policy that permits our employees to take up to four paid days a year to volunteer, and a program through which we offer free administrative services to small non-profit organizations.

For TASC’s part, the strategic intent of our philanthropy continues to evolve.  We continue to seek answers to many questions… What population should our efforts target? What results do we seek? What resources will we commit? I have developed some guiding principles regarding philanthropy, although these are in no way final. I believe that TASC’s philanthropy will be related to health and financial issues, and will be aligned with a vulnerable population and the strategic intent of TASC. Besides being entrepreneurial in nature, innovative in its approach, and tolerant to risk, TASC’s philanthropy will produce a beneficial impact or create value within our community.

Using those guiding principles, I developed this possible hypothesis: In the future we will see less employer and government involvement in an individual’s healthcare access and education. As a result, the younger– future generations or a subset of this population will be vulnerable.  If this hypothesis proves to be true, perhaps our future philanthropy will focus on fostering health and financial literacy, specifically as these relate to the access and management of health related resources for the young and vulnerable consumer.

Will this hypothesis and focus come to fruition? Obviously it remains to be seen.  What is certain is that TASC will continue to look for ways to help with our money, our time, our minds, and our hearts.

Happy New Year!  Another year—albeit a challenging one—has passed into history, and we stand together with a bright New Year before us once again.  Have you made any New Year’s resolutions?  Have you thought about what you will do with the next twelve months?  Will you move forward?  Or will you attempt to cling to the past?

We continue in 2011 with an initiative we started last year: to make adapting to change a top priority throughout TASC.  Change is a constant in the business world, no matter the industry.  Those of us involved with the healthcare/employee benefits industry were nearly buried at times by an avalanche of change last year.

Take for example the Patient Protection and Affordable Care Act (PPACA).  Passed into law last year, this Act is the reason behind many of the changes we implemented in late 2010.  And the changes seem to be nowhere near ending.  If you read the papers or watch the news, you know that the lawsuits, repeal efforts, revenue rulings, and government notices are appearing at an astounding rate.  Just last week, Wisconsin’s new Governor asked the state’s Attorney General to join in a lawsuit against the nation’s Healthcare Reform Act.

In a world of uncertainty, one thing is certain: this issue is far from settled.  And that stark reality leaves many business owners feeling very unsettled.  With so much chatter, how do you know who to trust?  How do you know who is simply posturing one way or another because they have a political axe to grind?  It gets harder every day to navigate the information highway, harder to tell the truth from fiction.

Here are three things upon which I will not budge in 2011.  (1) I won’t waste time or energy fighting the Healthcare Reform Act.  There are plenty of people who will rail against every page of this bill.  I won’t be one of them.  (2) I won’t get caught up in the battle of rhetoric playing out right now, and will not allow any squeaky wheel to get me all worked up.  (3) I will spend my time and energy ensuring that we serve our Clients to the best of our ability.  In my estimate, doing so is the best use of my time in the New Year.

By now, if you are a Microbusiness Provider or Client of TASC you know that the game has changed.  Or at least the rules of the game have changed.  The nation’s healthcare reform legislation signed into law earlier this year means significant changes for small businesses and the tax and financial professionals who serve them.

Needless to say, these sweeping changes have required adaptation—and sometimes even transformation—at TASC, as well.  We have spent the last few months re-thinking, re-tooling, and re-inventing just about every service we provide, because these new laws have impacted the nuts and bolts that hold together just about every Plan we provide.

It’s no overstatement to say that attending to these changes has been one of the biggest challenges of my professional career.  Meanwhile, of course I know that I am not alone when it comes to facing difficulty.  Most likely no niche is more challenged by these new rules than our small “mom and pop” businesses.

These small businesses are facing new compliance requirements and healthcare-related provisions that are absolutely unparalleled, in my opinion.  And while failure to comply with specific provisions could jeopardize the tax savings aspect of their medical reimbursement accounts, at the same time other new provisions offer real benefits to their businesses and families.

How many small business owners have time to sift through a 2,000 page document to learn all the ins and outs of the new law?  Not many.  And with the small business in mind, TASC is proud to introduce AgriPlanNOW and BizPlanNOW.  These revamped services are specifically designed to comply and to ensure Clients the maximum benefit possible.  And that’s a key point.  Besides helping Microbusiness Clients maintain the tax savings they currently enjoy, these Plans do more.  They provide the know-how, and include features established specifically to help businesses benefit as much as the new laws allow.  Whether deciding to participate in the CLASS Act or to continue with the traditional long term care insurance, AgriPlanNOW and BizPlanNOW are ready to help Clients find the answer that’s right for their family.  We can help Clients navigate the new web portal.  Or access funds for Wellness Grants.  Or track their Adult Children.  The list goes on.

Although AgriPlanNOW and BizPlanNOW carry a higher price tag than AgriPlan and BizPlan, this fee is locked in through the 2014 Plan Year.  And that lock-in is guaranteed, no matter the unforeseen challenges or rules that come our way between now and then, no matter the need for us to revamp to comply.

As our nation’s mid-term election results suggest, this legislation could very well be in play for quite some time.  Provisions and portions may change, and may change again and again.  TASC will keep on changing, too.  And no matter how we might need to change the Plan over the next four years, we won’t raise our fees.  This guarantee goes hand in hand with our pledge to take care of our Clients.  That’s what we do.

I wish all of you the happiest of holiday seasons!