Tag Archives: North Carolina

Commuter Benefits Spending Accounts

If your employees pay for parking, the Railroad, a bus, or pool in a van – you can help them save money with a Commuter Benefit Spending Account.

State and Federal tax law, under Internal Revenue Code (IRC) § 132, allow employees of the employer to save taxes on parking at work and transit or vanpooling expenses incurred to get to work. Employees save by setting up a pretax payroll deduction that reduces taxable income. Qualified expenses are exempt from Federal, State and FICA (Social Security and Medicare) taxes. Tax savings for the employee is based on their income bracket; the employer benefits by lowering their covered salary for purposes of FICA and Workers Compensation costs.

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Obamacare Pummels Blue Cross Blue Shield Of NC–What Can We Learn From This?

Forbes posted an article on January 30, 2016 with this title.  Very scary stuff-

According to this morning’s News and Observer, “The dramatic deterioration in Blue Cross’ ACA business is causing increasing alarm among agents and public health officials.”  In response to its bleak experience with the Obamacare exchange, the company has decided to eliminate sales commissions for agents, terminate advertising of Obamacare policies, and stop accepting applications on-line through a web link that provides insurance price quotes–all moves calculated to limited Obamacare enrollment.”

The losses incurred by Obamacare policies has caused the company to have an overall loss of $50.6 million dollars.  They have not lost money in more than a decade.  Considering that they are the largest carrier in North Carolina, and with United Healthcares’ announcement that they are likely leaving Obamacare as well, this does not bode well for individuals looking to get coverage next year.

Nor does it bode well for the United States’ ability to pay for this law, which has always been in question, and for the future of the law itself.

Read the full article here.

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Reeve Conover is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/dealer member FINRA/SPIC. Cambridge and Conover Consulting are not affiliated. Licensed in SC, NC, NY, CT, NJ, and CA.
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