Health Care Forecast Remains Partly Cloudy

The forecast for health care benefit administration in 2007 calls for continued cloudiness with more clouds on the way. New Congressional leadership, rising health care costs, an expanding number of benefit options and the accompanying compliance issues are all factors that create problems for administrators. Solving those problems and helping administrators navigate through the clouds requires expert research, advice and service. Founded as COBRA Compliance Systems, Inc. in 1986, Infinisource enters its twenty-first year and continues to build upon its reputation for providing all three.

In 2007, Infinisource will continue to use its legal and research departments, along with its extensive contacts in Washington, D.C., to ensure clients have access to needed information. The best estimate right now is that there will be gridlock on new health care legislation over the next two years of the new Democratic Congress. It still bears watching however, because of its affect on existing laws governing Health Savings Accounts (HSA), Health Reimbursement Accounts (HRA), Premium Only Plans (POP) and Flexible Spending Accounts (FSA). These expanding benefit options are key tools for plan administrators to use in combating rising health care costs.

Depending on which survey you read, or who conducted it, the use of HSAs will either greatly increase in 2007 or sputter along. Conflicting surveys indicate both employee acceptance or employee disdain for the high deductible consumer driven plans. What has been vastly undersold is the viability of HRAs to mitigate employer and employee concerns about the transition to a consumer driven health plan. FSAs and POPs continue to provide additional benefits and savings to an employee with cost savings to the employer as well. Infinisource uses these options in conjunction with individual consultations to ensure a plan design that fits the employer’s business needs.

Meanwhile, dealing with benefit compliance issues has been, and will always be a dark cloud over plan administrators. COBRA in particular has been described as threatening, difficult, time-consuming and confusing. A COBRA failure can most often be described as costly. Researching case law and the penalties paid by employers can predict the outlook for COBRA administration in 2007. Numerous employers will pay legal bills; court costs, ERISA fines and potentially devastating medical claims while making the same mistakes others have made for the past 20 years. Infinisource’s expertise and administration has helped over 25,000 employers avoid these costly COBRA failures over that period of time.

Infinisource has the technology and expertise to clear up the cloudy forecast on these issues as well as others such as HIPAA and Enrollment and Eligibility Services provided by a powerful human resource engine. But, more important than technology and knowledge are the people of Infinisource. Recognizing the value of people is the foremost factor in our ability to solve benefit problems for employers. Infinisource in 2007 reaffirms its commitment to its core values that recognizes the importance of respect for the individual. It is this respect that guides every interaction with our customers and each other.

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