New Program Offers Reimbursement for
Hospital-based Health Education Classes

Many hospitals offer classes on topics that can help members optimize their health, such as pregnancy, parenting, heart health, weight loss, nutrition, and fitness. Beginning January 1, 2007, members can participate in classes offered by their local hospital and receive reimbursement as part of their PacificSource coverage. We will reimburse up to $50 per hospital-based health or wellness class, class series, or program, up to a total of $150 per eligible member per plan year. Covered dependents are also eligible for this benefit. Only health and wellness classes offered by hospitals are eligible for the reimbursement.

Members can check with their area hospital or visit our Web site for more information. Our new payroll stuffer and member flier, containing details about eligibility and a reimbursement request form, are available on the For Members/Forms & Materials section of our Web site.

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Congress Passes Last-Minute HSA Changes for 2007

Last weekend, Congress passed the Tax Relief and Health Care Act. This act includes many new provisions for health savings accounts (HSAs) and extends many important tax provisions. The new provisions apply for taxable years beginning after December 31, 2006. At a glance, the act:

• Allows one-time transfer of funds from health flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) into HSAs regardless of annual contribution limits. The transfer may not exceed the lesser of either the balance in the FSA or HRA as of September 21, 2006, or the balance in the FSA or HRA as of the date of the distribution.
• Provides that a zero balance in a health FSA as of the last day of a plan year will not preclude HSA eligibility during any grace period.
• Increases deductible HSA contributions to the statutory limit regardless of a qualifying high deductible health plan's deductible level. In 2007, with these changes, the maximum aggregate annual contribution will be $2,850 for individual coverage and $5,650 for family coverage. The deductible is not considered in determining the contribution amount.
• Requires an earlier release of annual HSA cost-of-living index amounts. For tax years beginning after 2007, adjustments to HSA limits and high deductible health plans for a calendar year will be based on the Consumer Price Index changes as of March 31, instead of August 31.
• Allows members who become HSA-eligible during the year to make a full HSA contribution rather than have a prorated maximum contribution.
• Allows employers to make higher contributions for “non-highly compensated” employees than for “highly-compensated” employees. An employer can make a contribution to just the non-highly compensated employees, but all the non-highly compensated employees must receive the same contribution based on coverage.
• Allows members to make a one-time, direct trustee-to-trustee transfer from an IRA to an HSA. Such distributions are subject to annual contribution limits, but not subject to the ten percent additional tax on early distributions.

If you have questions about how these changes could affect your clients, you're welcome to contact Manley Services President Stan Manley. Stan and his staff are experts on FSAs, HRAs, and cafeteria plan design, and are knowledgeable resources on HSAs as well.

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Making Changes? Let Us Know

Any time your agency has a change in staffing, business assignments, or contact information, please let us know. It is important that our records are accurately maintained for many reasons, including to ensure correct commission payment and reporting, document sharing, and customer service. The following changes need to be reported:

• Agents moving between agencies
• Agencies relocating
• Retiring agents
• Changes in group assignments

Please have an officer or principal of your agency provide a notice of the changes in writing, along with the name of the person who is leaving, the name of the person assuming their groups (when appropriate), and the effective date. You can mail your letter to: PacificSource Health Plans, Attention: Shawndel Lindfors, PO Box 7068, Eugene, OR 97401, fax it to (541) 485-0915, or e-mail Shawndel Lindfors. Thank you for helping ensure that we maintain accurate records for you and your agency, and that our members receive the best possible service.

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Opinion Poll: How Do You Use Our Sales Materials?

We are always looking for ways to make it easier for you to do business with us, and we appreciate your feedback and suggestions. From time to time, we'll invite you to take brief anonymous e-surveys and polls on new products or services, administrative matters, or other issues affecting our industry.

We would like to know if our sales materials are of value to you, how you use them, and what suggestions you might have for improving them. Simply click on the survey link below and respond to the brief questions. We appreciate your comments and will use them to make our materials more useful to you. Thank you!

Please take our agent survey.

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Nancy Louris Leads an Industry with SBA

Nancy Louris, President of Select Benefit Administrators, Inc. (SBA), has the experience and dedication to help agents and their clients establish self-funded plans that meet their goals and objectives. She and her staff provide a broad range of quality administrative services to employers who opt to self-fund their employee health benefits. Nancy founded SBA in 1998 and has built it into a service leader among third party administrators. In 2003, SBA joined our PacificSource companies.

Nancy Louris, President of Select Benefit Administrators

We think Nancy gets her ability to wrangle a lot of tasks and her can-do attitude from growing up in a rural, agricultural area. “I know how to drive a tractor and start a generator,” she says. “My parents instilled a very strong work ethic in all of their children. We played hard, but only after chores were done — and done well.”

Nancy has been in the insurance industry since 1985 and is a member of the Society of Professional Benefit Administrators (SPBA), Oregon Association of Health Underwriters (OAHU), and Portland Association of Health Underwriters (PAHU). Her first industry position was risk and benefits analyst for a large county in California. She also worked as an account manager with regional and national brokerage firms. Since 1989, she has been in the self-funded industry exclusively. “I established SBA in 1998, after working for the two largest third party administrators in the country for nine years,” she says. “When SBA joined PacificSource, I was pleased to continue serving as SBA President.”

“My favorite role at SBA is educating employers and brokers about self-funding.” Nancy's tip for the day: “Self-funded single employer plans are governed by the Employee Retirement Income Security Act (ERISA) and are, therefore, exempt from state health insurance regulations. This is a key benefit of self-funding for employers that have employees in several states.”

You can learn more about Select Benefit Administrators and their services by visiting www.selectadmin.com.

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Eugene
(541) 687-7047 or toll-free (877) 657-9797
fax (541) 485-0915
Troy Kirk, Vice President Sales and Marketing
Doug Sheffer, Eugene District Manager

Bend
(541) 330-8896 or toll-free (888) 877-7996
fax (541) 330-8948
John Wright, Bend District Manager

Medford
(541) 858-0381 or toll-free (800) 899-5866
fax (541) 858-0486
Fred Cornett, Medford District Manager

Portland
(503) 699-6561 or toll-free (877) 657-9797
fax (503) 697-1075
Dennis Reed, Portland District Manager
Julie Doran, Marketing Representative

Manley Services
(541) 485-7488 or toll-free (800) 422-7038
fax (541) 681-8792
or toll-free (800) 575-1109
Stan Manley, President

Select Benefit Administrators
(503) 598-8908 • fax (503) 598-0197
Nancy Louris, President