CAHU Asks for Action

We’re helping CAHU out by relaying this message:

“CAHU wants to make you aware of a recent California Supreme Court ruling, Dynamex Operations West Inc. v. Superior Court (Dynamex) that could require many 1099 independent contractors to become W-2 employees. This could directly impact you as an agent/broker and affect independent contractors you hire.

Dynamex created a new worker classification standard referred to as the “ABC Test,” to determine whether a worker is an independent contractor or an employee. Under this new rigid “ABC test,” every person will be considered an independent contractor only if the hiring entity can PROVE ALL THREE of the following:

(A) That the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;

(B) That the worker performs work that is outside the usual course of the hiring entity’s business; and,

(C) That the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

CAHU is alarmed because agents could be required to become a W-2 employee for every single insurance carrier they contracted with or are appointed.

You should be aware that Dynamex will not be appealed, and is the law now. The court has refused to rehear the case which is unclear in terms of impact and retroactivity. The new standard could potentially reach back four years which could financially destroy an agency/company that was fully compliant in operating under the previous standard of an Independent Contractor. This is because California’s Labor Code Private Attorneys General Act provides statutory penalties.

CAHU has partnered with over 100 other associations to seek a legislative solution but key decision makers need to hear from you! This could negatively affect your commissions, ability to serve clients, ability to work independently and impact your tax reporting and deductions. For more information or to sign-up and have your voice heard please visit https://imindependent.co to help stop this overreach from directly affecting your independence and ability to serve your clients!”

HEALTHCARE

Want to Hear an Actuary with a Sense of Humor?
Of course you do. Dickerson’s Anil Kochhar is presenting at 8am tomorrow (Thursday, August 16) at the LAAHU meeting in Encino.  He’ll walk you through large group trends, tips and opportunities.  Register Here. If you have any questions, please direct them to info@cahu.org

Oscar Health To Enter MA Market in 2020
Oscar Health is getting an infusion of about $375 million from Google’s parent firm Alphabet. The New York City-based health insurer said it intends to use the money to enter the Medicare Advantage market in 2020 and expand its presence in the individual and small-group markets. Oscar has focused on tech to improve the consumer experience and contain costs, with more than 60 percent of interactions between the health care system and members occurring on a virtual basis. Find out more by attending Oscar’s September broker events.

CMS Calls on Insurers to Make Claims Data Easily Accessible

Healthcare IT News reported that CMS Administrator Seema Verma has urged health insurers to follow the lead of the Centers for Medicare and Medicaid Services and make claims data more readily available. At a recent conference, Verma asked insurers to release claims data in an API format. CMS is creating a new type of patient profile by making the agency’s massive amounts of claims data available to the public via the Blue Button 2.0 application programming interface (API). Major players from the private sector – Amazon, Google, IBM, Microsoft, Oracle and Salesforce – have already pledged to work together to leverage APIs and other interoperability specs to break down barriers to health data exchange. Verma said that the potential of what the data could mean for our country is “unimagineable.”

Hospitals Say Focus Should Be on Advances Under ACA
Charles Kahn III, president of the Federation of American Hospitals, which represents investor-owned and managed community hospitals, told the Washington Examiner that lawmakers should be  “…focusing on the advances that were made under the Affordable Care Act” instead of focusing on single payer/Medicare for all. Kahn expressed concern that some legislators are reportedly signing onto single payer — making the government the only payer of healthcare services – and he said they will face a mighty adversary in the hospital industry. Hospital organizations say they support “universal coverage,” in which everyone has some way to pay for medical care, but they don’t want a state or federal government to be the only one funding it. During the past year an increasing number of politicians have backed the Medicare for All Act, which would insure everyone in the U.S. through Medicare. Kahn says hospitals, however, don’t welcome the idea of the government ditching private insurers.

LIFE INSURANCE

FASB Aims at Life Insurance Transparency; Industry Not Thrilled
The Financial Accounting Standards Board (FASB) completed new accounting rules that could give the public a better idea about what’s going on inside life insurance companies. Industry insiders, however, worry that this may mean fewer insurance and annuity products to sell.

FASB has published the new standards in Accounting Standards Update (ASU) 2018-12 — Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. The standards, which are based on a draft released in September 2016, will impact life insurer financial reports prepared using U.S. Generally Accepted Accounting Principles (GAAP). The ASU 2018-12 drafters contend they aim to offer investors timely info about what’s happening to the projected value of the long-term benefits and guarantees insurers sell. Life insurers argue that the new financial reports could scare investors away from the life insurance sector, and that complying with the rules will be difficult. Read more at Think Advisor.

ANNUITIES

NAFA Still Looking for a Prez
The Board of Directors for  NAFA, the National Association for Fixed Annuities, announced that it is continuing the search for a new President/CEO.  The Association’s long-term goals are to focus on growth, expanded advocacy and engagement on behalf of fixed annuities and the annuity industry. NAFA say it will continue to actively pursue a candidate who can execute the Board’s strategic vision for the organization, enhance the membership experience and advocate for the value of fixed annuities. Individuals interested in the President/CEO position can submit a resume and a cover letter via email to nafacareer@gmail.com until Sept. 15. View candidate requirements here.

EVENTS

Golden Gate Association of Health Underwriters
4th Annual NORCAL Medicare Summit
August 16-17, DoubleTree Hotel, Pleasanton, More info at ggahu.org.

LAAHU- Growing Your Business in a Dynamic Marketplace/Large Group Trends
August 16, 8-10a.m., Monterey at Encino Glen, 16821 Burbank Blvd., Encino

Join Anil Kochhar, chief actuary ASA MAAA of Dickerson Insurance Services, an Alera Group Company, as he discusses Large Group Trends that impact and shape 2019’s Open Enrollment. Kochhar will address these four major drivers in the large group marketplace:

  • ACA: compliance, removal of underwriting restrictions, private exchanges
  • Networks: ACOs and Telemedicine
  • Pharmacy:  Specialty Rx – the cure versus the cost
  • The aging population

Register Here

Oscar Broker Events
September 6 (Costa Mesa),7 (Warner Center, Woodland Hills) & 13 (Skirball Center, L.A.)

In June, Oscar launched small group products. For Q4, the company is positioned for growth. Also, Oscar is committed to serving and growing the individual market. Learn what the company is doing to help you grow your IFP business, on and off-exchange.  Ask your small group GA, or register here for one of the three dates.

CAHU Foundation Gala
September 14, Fairmont Grand Del Mar, San Diego
Please join CAHU for a Masquerade Gala to revitalize the CAHU Foundation. Festivities begin at 5:30pm at the famous Fairmont Grand Del Mar. Formal attire is requested.  Gala tickets and hotel reservations can be purchased here. Or call (800) 322-5934.  More info at the CAHU Foundation website. 

DCAHU 2nd annual Medicare Summit
Thursday, September 20, 8:30am – 2:30pm

Villa Portofino Clubhouse, 4001 Via Portofino, Palm Desert

Hear Ryan Dorigan from Applied General Agency at 11:30am speak on working with providers and medical groups and Margaret Stedt at 1pm discuss helping your senior clients maximize their drug plan and options. 2 CEs available.

Advance tickets $30 or $60 at the door. More info and registration here.

LAAHU and VCAHU Medicare Summit
September 20-21, Pickwick Gardens Conference Center, Burbank
September 20- certifications and product training (including SCAN)
September 21- C.E. Courses and breakout sessions! Theme is “Get Ready to Rock and Roll with Medicare.” Click here to register.

IICF Week of Giving 2018: October 13-20
The Insurance Industry Charitable Foundation announced the 2018 Week of Giving will be October 13-20. Registration for nonprofits and volunteers is now open. Check out IICF Week of Giving for more info. 

NAILBA 37
November 1-3, Gaylord Palms Resort and Convention Center, Orlando, Florida
Detailed information about NAILBA 37 will be available soon. Exhibit hall and sponsorship opportunities available here.  Or contact etoups@nailba.org for more info.