Also in this issue:

• Employees seeking “one-stop shop” for traditional and non-traditional benefits
• Health Care Reform Update
• You’re not getting older, you’re getting better…
• Stephanie Cohen Featured in 2011 Smart100 Book
• Golden & Cohen Encourages Letters to be Sent to Council members on health exchanges
• Thanks for your support
• Next Maryland Women Ambassadors for Business Leadership Luncheon

Also in this issue:

• Cobra Administration You Can Count On!
• Nothing Makes Employees Feel Better Than an Employer Offering Money Saving Options
• Healthcare Reform Notification – Action Required
• Golden & Cohen President to Participate in Health Insurance Exchange Meetings
• Introducing the One-Stop HR Resource Every Business Needs: HR360.COM!
• Self-Funded Plans for Groups as Small as Five Employees
• Putting Health Policy in Clear Language
• News You Can Use From Golden & Cohen’s HR360 Portal
• COMING SOON!!!
• Here to help you…

FOR IMMEDIATE RELEASE
April 13, 2011

CONTACT INFO
Stephanie Bennett
(240) 780-3605
stephanie.bennett@golden-cohen.com

Stephanie Cohen named Smart100 CEO by SmartCEO magazine

Elite list comprised of premier business leaders in Greater Washington area

Lanham, MD – On April 1st, Stephanie Cohen was selected to be one of Washington SmartCEO magazine’s Smart100 CEOs. Made up of an exclusive group of 100 CEOs chosen for their leadership, strategic vision and character, the list is highly anticipated each year.

Stephanie, along with the other selected members of the Smart100, will share the stories of their successes, leadership philosophies and character with thousands of readers in the Greater Washington region. The Smart100 serves as a source of education and inspiration for Washington SmartCEO’s 16,000 readers month after month, year after year.

As co-founder and CEO of Golden & Cohen, Stephanie has helped her company grow into a highly successful female-run health care benefits firm, making her a finalist for the Ernst & Young Entrepreneur of the Year Award.

“It is a privilege to be part of such a prestigious group of leaders that are all improving their industries, creating jobs and serving the people of Greater Washington,” said Stephanie. “I look forward sharing my expertise while at the same time learning from others to continue to grow my company and positively impact the business community as a whole.”

The Smart100 CEOs will be profiled in the 13th issue of Washington SmartCEO, the Smart100 book. The Smart100 book is a timeless resource for business leaders seeking inspiration from successful local CEOs.

The Smart100 companies represent a range of industries, including catering services, information technology consulting, travel services, transportation, personal care, government contracting and software development. Each company boasts revenues of at least $5 million.

“SmartCEO is proud to be the only company producing a publication of this magnitude that features such a high-caliber and charismatic group of CEOs. The 2011 Smart100 showcases the best of the best: 100 CEOs with incredible business minds who have grown their companies to unrivaled levels of success in Greater Washington,” says Jaime Nespor-Park, group publisher of SmartCEO.

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About Golden & Cohen
Golden & Cohen (www.golden-cohen.com) is a top rated health benefits consulting firm in the Washington, D.C. metropolitan area providing access to the full spectrum of insurance products available in the marketplace today.

About Washington SmartCEO
Washington SmartCEO magazine is a regional publication for growing companies. SmartCEO believes that a “growing company” is really determined by the spirit, drive and dynamics of a company’s owners and managers, rather than by the size of its building, the number of its employees, or its sales volume. Each month, C-level readers across the Mid-Atlantic turn to the pages of SmartCEO magazine for features, case-study advice and trend analysis, all with a uniquely local flavor. SmartCEO magazine is read by more than 45,000 business owners in Baltimore, Philadelphia and Washington.

First, the CBO (Congressional Budget Office) now estimates that the program will cost more than it originally thought. In terms of subsidies, the CBO initially estimated the cost at $1.04 trillion. Now the new number is $1.13 trillion. This is an underestimate of 8.6% based on new revised assumptions. It is likely that there will be many more new and unfavorable assumptions which will further increase expected costs. This news, coupled with the change in the political environment, might cause compromise and revision to the law moving forward.

Second, there now have been five lawsuits as to the constitutionality of the individual mandate. For those who are scoring, it is Administration – 3, Objectors – 2. The final word will be handed down by the Supreme Court; the question is when and what decision.

Third, most people still do not understand the bill. My opinion is that many politicians do not either. What is striking is that public opinion has not changed much since the birth of the new law. The Administration has attempted and continues to attempt to promote the benefits, however, there is an equal and opposite effort on behalf of the detractors of the bill to talk about the negatives.

Fourth, there seems to be more of a push to protect the broker function, as there is some degree of understanding that brokers serve as consumer advocates for their clients. We thank our clients for understanding our role and hope that you support efforts to allow us to continue to help you. There is a pending bill to address our concerns sponsored by both Democrats and Republicans; an impressive bipartisan effort that signals that there really must be something important to protect.

For now, not much has changed in the system except for a few minor benefits that have been mandated, but costs seem to be going up the same as in previous years.

Stayed tuned as there is bound to be more action to follow…

Also in this issue:

• Happy First Birthday Health Reform (Obama Care)
• Premium Financing Idea: Use other people’s money to benefit yourself!!!
• As FMLA Absences Mount, the Employer Must Lay Down the Law
• Stephanie Cohen Recognized by SmartCEO Magazine
• Scott Golden Quoted in AskMen.com article on staying healthy
• You Gotta Laugh: Life in the Trenches of the Health Insurance Business
• Golden & Cohen now on Facebook and Twitter!
• Next Maryland Women Ambassadors for Business Event

What will happen next?.

Last month the House voted to repeal the bill, but it will likely die in the Senate, and if it doesn’t it will almost certainly face a presidential veto. This is expected, but does mean the end of the debate, rather it only signals the beginning. You will see that there will be bipartisan agreement in areas that will create an undue administrative burden on businesses, such as sending out a 1099 for any payment in excess of $600 to all parties to include corporations. Also, it will be required to report all health insurance premiums to the government on each employee’s W-2 form. But these are considered the easy changes. There will be much more difficult issues both sides of aisle will attack and defend.

Each party views the delivery of healthcare from two different perspectives. The Democrats believe in heavy governmental intervention with numerous subsidies and the Republicans believe in more of a free market approach with limited subsidies.

There is some agreement between legislators, however, primarily in the areas of expanding insurance coverage to as many people as possible and establishing general consumer protections. The politicians will build on these points of consensus but will have to compromise in other areas. And all this will occur at a time when both parties are gearing up for the 2012 elections, making health reform a toxic political hot potato.

I cannot wait to see how it all unfolds.

Also in this issue:

• Golden & Cohen Featured in Bisnow!
• You Gotta Laugh: Life in the Trenches of the Health Insurance Business
• Maryland Women Ambassadors for Business Launches New Web Site!
• Disruptive Women in Health Care Interviews Stephanie Cohen

Lastly, there is a lawsuit filed by Virginia and other states questioning the constitutionality of the individual mandate requiring people to have health insurance. A similar lawsuit has been dismissed in Michigan, but the Virginia case has a much better chance of prevailing. If that happens, the issue will likely go to the Supreme Court as there will be a conflict between Federal Courts. The result is unclear, but this will be very interesting.

As things transpire, we will be reporting back to our clients.

Also in this issue:

• Golden-Cohen Now NFP/Golden & Cohen
• You Gotta Laugh: Life in the Trenches of the Health Insurance Business
• New HR Resource for Clients
• New BCBS Product

The polls will be closed, the votes will be counted and the future will be a whole lot clearer — Join us at the National Press Club for a morning of analysis and insight. Hear what the experts on the front lines of business, insurance, policy, politics and the media have to say about the future of health insurance in the 111th Congress.

Wednesday, November 3, 2010 (the day after the election)
8:30—9:00am: Registration and Breakfast
9:00—11:30am: Program

Washington DC | National Press Club | Murrow Room

Register Here: http://healthreform2010.eventbrite.com/

Welcome and Overview: Robin Strongin, President & CEO, Amplify Public Affairs;
Creator, Disruptive Women in Health Care Blog

Inside the Beltway: Health Reform & the Election: An Analysis
Nancy Johnson, Former Congresswoman; Senior Public Policy Advisor, Baker Donelson, PC
Dan Gerstein, Forbes Columnist
Fran McMahon, Editor – The Hill, Moderator

In the States: The Future of Health Insurance
Jim Slattery, Former Congressman; Partner, Wiley Rein
David Reynolds, President & CEO, Coventry Health Care in Maryland and Delaware
Larry Mirel, Former DC Insurance Commissioner; Partner, Wiley Rein
Cynthia de Lorenzi, CEO, Success in the City, Moderator

In the Trenches: Who Will Buy What From Whom
Janet Trautwein, CEO, National Association of Health Underwriters;
Leslie Norwalk, Former CMS Administrator; Partner, Epstein Becker Green
Robert Bender, Partner, Aronson & Company
Kristina Bouweiri, CEO, Reston Limousine, Moderator

On August 3, Agent’s Sales Journal reporter Heather Trese published an article featuring my comments about the future of Medicare.

She wrote: Some people, including Scott Golden, chief financial officer of the health benefits consulting company Golden & Cohen, predict that Medicare plans — such as original Medicare with a Part D or Med supp addition — will start to become more attractive as Medicare Advantage loses its luster.

I said: “Whenever you make one product less attractive, you’ll make the other product more attractive. So it does work to an advantage for those who work in the indemnity market.” Click here to read Heather’s entire article.

This issue is incredibly timely. In fact, back in March our monthly newsletter focused on Medicare — an important topic, especially if you or a loved one is nearing age 65. The process is complicated, and try as you might, don’t be surprised if you can’t get all the information you need to understand how to apply, what benefits you will receive, and a myriad of other questions you are likely to have. Click here for details.

Also in this issue:
• You’ll find an article by our accountant Eric Cohen, who asks, “Is it time for a Roth conversion?”
• And check out the 10th chapter in our upcoming book, “You Gotta Laugh: Life in the Trenches of the Health Insurance Business.” In this month’s insurance issue, my wife and business partner Stephanie Cohen and I explain why you need to carefully track and pay your premiums at the same time each month.

From all of us at Golden & Cohen, here’s to your good health!

Stephanie Cohen, CEO, stephanie@golden-cohen.com
Scott Golden, CFO, scott@golden-cohen.com
Jack Cohen, COO, jack@golden-cohen.com

Health care reform made some drastic changes that left many agents wondering about the future of one of their most popular products.

BY HEATHER TRESE

Some major changes are coming to the Medicare Advantage program, thanks to the Patient Protection and Affordable Care Act (PPACA).

These changes, which include a shorter selling season, plan adjustments, and cuts to physician and plan reimbursements, mean that soon, selling Medicare Advantage could be a lot more difficult for many agents. So is it time to throw in the towel? Or is this merely another blip on the radar of a rapidly evolving insurance industry?

The changes

According to Chuck Moore, chief financial officer of the Premier Agent Group brokerage, the biggest change is that the Medicare selling season will be shorter than usual. This fall, the selling season will only run from Nov. 15 to Dec. 31 (during the annual election period); in the past, there were an additional three months at the beginning of the year during which beneficiaries were able to make one more change (the open enrollment period, or OEP). In 2011, the annual election period will last from Oct. 15 to Dec. 7.

“What agents are going to have to do,” said Moore, “is make very good use of their time and spend very long hours if they want to see the same number of people they’d normally see during an OEP. They’ll have a very narrow 45-day window in which to see all of their clients and prospects and finalize their plans.”

Rusty Rice, president of the Texas Association of Health Underwriters, is concerned about the trickle-down effect that reduced doctor reimbursements will have on Medicare Advantage beneficiaries.

“Physicians will start exiting Medicare Advantage at a huge rate,” said Rice. “Here in Texas, in the last two years, 300 physicians have exited the program. Fifty have exited in the first half of 2010 alone. Physicians just can’t be profitable at the new rates.”

And if a client’s favorite doctor stops taking MA — or worse still, if no doctor in their area accepts the plan — the client will want to explore their options.

Furthermore, beginning in 2012, carrier reimbursements will be restructured and made uniform to bring payments closer to the average county-by-county costs of Medicare beneficiaries,. Reimbursements will gradually be reduced to levels closer to the costs of enrollees in traditional Medicare in each county, with lower reimbursements in counties with higher fee-for-service Medicare costs, and higher reimbursements in counties with lower fee-for-service costs.

This means that carriers will be even more selective about where they market their products. Additionally, plans that perform well on certain quality measures will receive modest bonuses, which will be used, in part, to provide richer benefits.
(To compare plan ratings, visit Medicare.gov and look up the quality ratings published by the Centers for Medicare & Medicaid Services under “Find & Compare Health Plans.” Plans that receive higher than 3.5 stars will be rewarded.)

The reaction

Independent agent JoDella Sickles said that even though Medicare Advantage might completely change, she’s not worried at all.

“Regardless of what it’s called or what it’s not called, there’s always going to be a need for something for senior citizens,” she said. “It’s not a ‘get to,’ it’s a ‘have to.’ It might not be called ‘Medicare Advantage,’ but you can’t take away something without giving them something. So whatever it’s called, I will know it like the back of my hand to be able to help [clients] to the best of my ability.”

*Some people, including Scott Golden, chief financial officer of the health benefits consulting company Golden & Cohen, predict that other Medicare plans — such as original Medicare with a Part D or Med supp addition — will start to become more attractive as Medicare Advantage loses its luster.

“Whenever you make one product less attractive, you’ll make the other product more attractive,” Golden said. “So it does work to an advantage for those who work in the indemnity market.”*

Moore added that the phasing out of the Part D doughnut hole could add to the attraction of the alternative plans, although he doesn’t see this as a major factor.

Sickles said, however, that the sentiment among clients — who may not be as plugged in to the changes as are agents — is much less calm, cool, and collected.

“They’re scared,” she said. “They’re scared that they won’t be able to afford Medicare; they’re scared that it’s going to go away. There’s a lot of confusion. A lot of times, when things change, it’s not put in layman’s terms. I get calls daily from a lot of clients; they’re worried, they can’t sleep, and whenever that happens, I just let them know that we’re going to get through it — not alone, but together.”

Rice agreed that there’s a lot of uncertainty among consumers as everyone waits to see how the changes will affect their policy or their doctor.

“My mother-in-law is on a Medicare Advantage policy, and she’s undergoing cancer treatment. It’s one of the most expensive treatments you can undergo. It’s changed, so her deductible is going to increase, and she can barely afford it now, let alone if it increases again,” he said. “Who this is really going to affect is people who are in a financial situation that can’t afford the higher premiums of a Med supp plan.”

The future

For now, the future of Medicare Advantage seems uncertain. The program isn’t going away — at least, not for now. But thanks to the PPACA, there is no doubt that it has changed forever.

“I think it’s going to change, but I don’t think it’s going to go away,” said Rice. “I think it’s going to be a lot more buy-in or pay-in. It just won’t be the benefits the members are used to seeing. I think there will be some markets that Medicare Advantage will have to exit completely.”

And while only time will tell how sales will be affected, Moore is confident that the market will thrive. As the baby boomers age, he said, agents will find new ways to communicate with the latest Medicare beneficiaries — who will be aging in to the program at a rate of nine per second — by using new strategies.

There may still be more legislative changes on the horizon; Rice, however, thinks we may be headed in the wrong direction.

“When you talk about Medicare Advantage or Medicare, there are a couple of different directions the government could go in. We know there’s a tremendous amount of waste in Medicare. And Medicare Advantage has the ability to monitor that.

“I think it’s a situation where we shouldn’t really look at reducing the fees for Medicare, but we should look at where we’re reducing the fees for Medicare — fraud, abuse, where beneficiaries will receive quality care,” he said. “I think we’re not taking a look at how we can save Medicare and Medicare Advantage — we’re looking at the quick fix. If it costs too much, we’re reducing the fees; we’re not looking at how we can solve the problem.

“I think we’re barking up the wrong tree. And the person that’s going to hurt in the long run is the consumer.”