As you may have heard, the State of Minnesota recently expanded its definition of who is considered eligible for fully insured medical and dental benefits. Our goal is to ensure that you are aware of this new state mandate and provide you with useful information on the impact it will have on your clients, as well as suggestions for mitigating its effect.  Effective January 1, 2008, as coverage is sold or renewed, the dependent definition includes all unmarried dependents through age 24 regardless of student status. Prior to this, dependents age 19 through age 24 could only be covered if they were full-time students.

Impact to Your Clients
There are three ways this mandate affects your clients:

1. Plan administration – Since this mandate is a “new” benefit for employees, they are now able to add additional dependents to their coverage. This would require additional administration by clients.
2. Price impact – The cost of this mandated benefit change will be taken into account during the underwriting rating process. We estimate that this mandate will increase rates by a total of 1.7% over the next two years. Rate increases will go into effect based on renewal dates. This change applies to all groups including those with rate caps and rate guarantees.
3. Tax implications – The state and federal definitions of a dependent do not match. The federal definition classifies a dependent as a full-time student through age 23. When employees receive benefits for family members that do not meet the federal definition of dependent, these benefits are considered taxable income for the employee. Additionally, when an employer allows pre-tax contributions to premium and contributes to the premium, the contributions attributed to the dependent who meets the state, but not the federal, definition should not be pre-tax.
   
   Also, if your client offers employees a health reimbursement account (HRA) or a flexible spending account (FSA), and the added dependent does not meet the federal definition, additional restrictions apply. These dependents are not eligible for HRA or FSA reimbursement and must opt out of automatic claims submission from the medical plan. We recommend that your clients consult with an attorney or tax advisor regarding what steps they will need to take to handle these issues.

Ways to Mitigate the Price Impact
There are a variety of strategies your client could implement to mitigate the financial impact of this change. Some options include:

1. Change the employer’s contribution formula
2. Change the employer’s rate structure from single/family to a structure that breaks out dependents (example: single + 1 child, single + 2 children, single + 3 children, etc.)
3. Change plan benefits to neutralize the cost impact

You can count on HealthPartners to support you in implementing this new mandate. Please contact your HealthPartners Sales Executive if you need additional information or want to learn more about the rate structures available to your clients.

To learn more please contact your broker or your HealthPartners Sales Executive.

Do you want to help your clients create a better life for their employees?  You can – and you don’t have to do it alone! HealthPartners can help your clients’ employees achieve exceptional health. Healthy employees are happier more productive employees, which directly impacts your clients’ bottom line. HealthPartners has the plans, programs, coverage and care members need to get healthy and stay healthy.

This fall, as most of your clients head into open enrollment, we're kicking off our new exceptional health campaign that's all about helping employees live their best life. From late August to mid-September, you'll see more of HealthPartners on billboards and buses – you'll even hear us on the radio. Our goal is to raise awareness about the difference HealthPartners can make in the health and lives of our members. While the media campaign will only run for a few months, this program is here to stay. It's part of our philosophy and our mission to improve the health of our members.

So if you stop, look and listen, there’s no way you’ll miss it. Let HealthPartners get you and your clients’ employees on their way to a better life.

To learn more please contact your HealthPartners Sales Executive.

Health care reform is already in the news nearly every day, and the 2008 election is still more than a year away.  Everyone in our industry will need to be up-to-speed on all the nuances surrounding this important issue. The Professional Resource Group is offering a seminar that you may find of interest.  Not only will you receive two CE credits, but more importantly, you will learn how we can all make a difference to help shape this debate in the coming months.

Seminar details:
“Agents: The Solution or the Problem?”
Monday, September 24
8:30 a.m. to 1:30 p.m.
Marriott Minneapolis West

Seminar topics:
– Transparency, It’s the Law
   by Mark Fisher and Terry Hauer
– MN Department of Human Services – MNCare Ins & Outs
   by Susan McDonald
– The Uninsured-The Real Problem and Real Solutions
   by Greg Dattilo

For more details or to register, please visit freemarkethealthcare.com.

Our Frequent Fitness program continues to grow. With more than 230 clubs, your clients are one step closer to better health. New clubs as of September 1, 2007, include:

• Anytime Fitness (Ramsey, Minn.)
• Hastings Uptown Fitness (Hastings, Minn.)
• Maplewood Community Center (Maplewood, Minn.)
• Cumberland Hospital Wellness Center (Cumberland, Wisc.)

Learn more about Frequent Fitness.

As our client base and membership continues to expand, so does our network. In fact, we’ve recently added a large number of providers – especially in North Dakota. We’re committed to providing access to the providers your clients demand – nationwide. No matter where your clients live, work or travel, we’ve got them covered. Recent additions include:

Medical – North Dakota
Prime Care Network – 31 clinic locations including Beach, Beulah, Bismarck, Bowman, Coal, Dickinson, Elgin, Garrison, Halliday, Hazen, Hettinger, Kildeer, Lemmon, Mandan, McClusky, Minot, Mott, New England, Richardton, Scranton, Steele, Turtle Lake, Underwood and Washburn
Red River Family Medicine – Fargo

Medical – Minnesota
MeritCare East Grand Forks-Central – East Grand Forks
Montgomery Medical Clinic – Montgomery
New Spirit Women’s Clinic, P.A. – Grand Rapids
Windom Family Medical Center – Windom

Medical – South Dakota
Sanford Clinic Family Medicine Huron – Huron

Medical – Wisconsin
Krohn Clinic, Ltd. – Black River Falls
St. Joseph’s Family Clinic –  Elroy
St. Joseph’s Family Clinic –  Hillsboro

Dental – Minnesota
Bluff Creek Dental, PLLC – Chanhassen
Jeffrey L. Anderson, DDS – Eagan
John Shand, DDS – Minneapolis
North Shore Dental, LTD. – Duluth

Try out our new search function so see just how easy it is to find a network provider quickly and simply. Provider Search.

Important Contacts
Our Group Medical Plans
Our Group Dental Plans
Our Individual and Medicare Plans
Our Achieve ^SM Health Improvement Programs
Our CareSpan ^SM Disease Management Programs
Direct Connect to Broker Portal