Covering CPAs: clearing up some issues surrounding health care's future.

• Position: Insuranceupdate - Interview

It's a guessing game as to what will happen with health insurance these days, To demystify the issue, we asked Group Insurance Trust Executive Director Susan Young a few questions about health insurance and what the impending changes might mean for CPAs.

Is there any way to estimate the future costs (premiums, out-of-pocket, etc.) of health care?

Many factors weigh into the overall costs of insurance. As new mandates come into play, these impact the costs of the plan. Other factors that may drive costs up are loss experience (loss ratios), trend, increased utilization of prescription drugs, rising costs of prescription drugs, non-emergency visits to emergency rooms and provider fee schedules. Another contributor is providers' practice of defensive medicine, such as ordering all conceivable tests in hope of avoiding possible malpractice claims if things don't 2:0 well.

Will the proposed changes increase costs/ change benefits for those with insurance?

The proposed health care changes will most certainly increase the cost of insurance. The new mandates and the taxes imposed will impact both consumers and employers.

I'm a 65-year-old sole proprietor with no employees, and I'm retiring. My spouse is 60 years old and a dependent on my policy. What can I expect to happen?

You will need to factor the age of your spouse into your retirement planning. Retiring with a younger-age spouse may limit your options for spousal coverage if your spouse is not eligible for Medicare. Upon retirement your group plan wall end, and COBRA or Gal-COBRA will not be available to your spouse. Your spouse would need to apply for an individual policy which is subject to medical underwriting and can be denied or surcharged based upon medical history.

Do I need to keep working to keep health insurance for my spouse?

Continuing to work will ensure coverage is available for your spouse. Under the CalCPA ProtcctPlus program, CPAs may work a minimum of 20 hours per week or 1,000 hours per year and continue to be eligible for benefits in die plan.

How much should I plan to set aside to cover medical expenses and premiums for my spouse?

You should plan for monthly premiums and out-of-pocket costs, such as deductibles and coinsurances. For someone aged 60-64 and enrolled in an average co-pay plan, such...