DataPath Connections 2007

Connections 07 has come and gone - be sure to mark your calendar to attend Connections 08 May 7-9 at The Hotel Contessa in San Antonio, TX.

In addition to the following conference highlights, we also enjoyed informative and thought provoking presentations on SAS70 audits, Identity Theft and the HSA market place.

Highlights from presentations on being in the COBRA business:

Perceived TPA barriers to the COBRA business:

• Fear of liability: actual liability rests with the Employer.
• Fear of not knowing how to stay current enough to do COBRA administration: DPICOBRA system is automated and regulatory compliant, the expertise is built in to the system for you.
• Assumption that the carrier provides COBRA: major medical carriers do not offer COBRA for FSAs; employers are left on their own. Your existing clients have gaps where COBRA is not being provided correctly or not at all.

COBRA is an easy benefit to sell. All employers with 20 or more employees are required to offer COBRA. Selling COBRA administration will bring you new prospects and offers cross-selling opportunities with your existing clients.

DPICOBRA is a very intuitive system that will make you an expert.

Highlights and comments about CDHC, where it’s headed and educating employees on benefits of CDHC:

CDHC is not a passing phase as some will tell you. We either make CDHC work or we face a single payer system. TPAs have knowledge… Leverage it! Become an expert; knowledge builds credibility. Educate your staff and educate consumers.

How does media relations equal $ales?
• Publicity = Name Recognition
• Name Recognition = Respect and Credibility
• Respect = $ales

Free Publicity Options
• Press releases
• Op-eds
• Letters to the editor
• Google

The more you utilize the tools available, the more your name is out there...
The more your name is out there, the more powerful we will all be...
The more credible you are, the more your profits will soar!

Highlights from Benefit Stacking and Plan Design:

Faced with medical insurance increases every year, Employer choices include:

• Ingest the increase, keeping benefits and costs the same for employees
• Decrease Benefits to employees
• Charge employees more in contributions

Alpha Benefit Administrators began offering the MERP Plan High Deductible Health Plan solution in early 2004. Currently, they administer 150+ groups and have renewed every plan since inception with 90% of clients buying less coverage upon renewal.

These plans have worked and saved their clients money.

• Real scenarios were shared with us illustrating reduced Employee cost from the previous years using MERP and HSA combination, many times allowing the Employer to fund significant amounts into Employee HSA accounts that would have otherwise gone to the insurance carrier in premium payments. We also saw real examples of HSA MERP claims significantly lower than previously experienced.

• By offering the innovative ideas made possible by the DataPath Administrative systems, they are able to achieve significantly lower costs over multi year time frames for their Employers.

What’s Coming?

Industry Wide Standard IIAS system.

An industry wide group was formed to determine a uniform methodology for implementing IIAS. The group consists of DataPath and other major card vendors, the 3 card networks (e.g. MasterCard), Discounters (e.g. Wal-Mart, Target), the Food Marketing Institute representing national grocers (Kroger’s, Safeway), National Association of Chain Drug Stores (Walgreens, CVS, Riteaid), Bank processors (e.g. Fiserv) and Acquiring banks (Bank of America, Fifth Third Bank).

IIAS is a system whereby the items being purchased are substantiated prior to the completion of the purchase.

Highlights from John Hickman’s presentation:

Massachusetts Health Care Reform Act – “we can expect to see more of this from other states.”

Per the IRS, the Employer must allow participants to change HSA contributions made through their cafeteria plan at least monthly.

If the plan provides high deductible health information to the HSA custodian, then they will need a HIPAA authorization from participant to do so.

Some state laws require participant to affirmatively agree to allow the employer to withhold from pay check the amounts owed for ineligible debit card swipes. The employer should ask their State if the signed Card Holder Agreement satisfies the affirmative agreement requirement.

Non-compliance with debit card rules as of 1/1/08 for one expense will mean the entire Plan for the entire plan year will be considered out of compliance. Ineligible means: card swipe was for an ineligible expense or at a non-health care merchant without the IIAS in place.

Q&A with John Hickman:

OTC questions:
Q1. Would the IRS throw out all claims for an entire year for a participant or for the entire plan for 1 bad OTC expense?
A1. I do not think so.

Q2. Is stockpiling of OTC items allowed?
A2. No, it is not allowed.

Q3. If a prescription is filled on 7/14 but not picked up until 7/16, is it okay to use the date on the register receipt 7/16 as date of service?
A3. It is okay to use the date on the register receipt as the date of service.

Q4. How do I, the participant, or TPA know if the merchant is a participating merchant in the IIAS system?
A4. The IIAS CO sponsored website will have a list of participating merchants.

Q5. How does the health debit card know if the merchant is a participating merchant?
A5. The health debit cards won’t work at non-participating merchants.

If you know someone who would like to receive our newsletter, email subscribe-path@dpath.com with their name, company name, telephone number, and email address and they will be added to the mailing list.

If you want to unsubscribe, send a blank email to unsubscribe-path@dpath.com.