Does anyone know what insurance companies are currently wrirting Group

[Guest kjlamb]

Does anyone know what insurance companies are currently wrirting Group Executive Medical policies (Section 105(h)) plans?

[Guest Paul]

I am not sure exactly what your question is. If you are going to provide coverage for select executive on a self funded basis you are going to have discrimination issues under Code § 105(h). There is a company called Exec-U-Care that markets a product for select employees that they say is insured and, therefore, exempt from Code § 105(h).

I have the telephone number at work. If you want the number e-mail me at pr2222@aol.com and I can call or send it to you.

[Guest KGibson]

I have found a fully insured executive product that may be what you are looking for. It is Exec-U-Care mentioned above. Their number is 1-800-552-1213. Because it is fully insured, you don't have the discrimination issues, and it is not taxable income to the employee. The company pays a premium of $250 per year plus 110% of the claims. For most "C" corporations, the $250 premium is tax deductible. This product also gives them $100,000 of AD&D coverage, plus Global travel assistance. I had a group that did a lot of global travel, and they will help coordinate medical claims from another country and even translate during medical care and emergencies. They also can provide a gold card for prescription coverage and the covered person goes to the pharmacy and has 100% coverage, no copay, at the point of sale. It's a pretty neat little product.

[Kirk Maldonado]

I have reviewed the product and I think that it is very aggressive. I certainly would not recommend to any client that the arrangement will qualify for favorable income tax treatment. My view is that anybody who is endorsing that product to their clients is taking on a lot of risk.

[Guest KGibson]

After extensive research, I put the Exec-U-Care product in with a company where I was the Corporate Benefits Director. The execs absolutely loved it, it worked great for our group, and they are still using the product 2 years later. It may not work for every company, but it certainly did for us. It is underwritten by Guarantee Life Insurance Company and KPMG Peat Marwick LLP has issued a tax opinion letter on this coverage, and as I mentioned, not ALL companies can take a tax deduction, and it is not necessarily the right choice for all groups. I found it to be a very good product however, and do highly recommend it for the right client and situation.

[Linda]

Do you happen to know the scope of the KPMG opinion?

[KIP KRAUS]

I seem to recall, but my memory is getting foggy lately, that providing executives with increased medical benefits on an insured basis was done years ago. I seem to recall that Met. Life would write these benefits back in the 80s. as an insured product. Back then it was my understanding that such plans were taxable. What has changed since then?

KGibson. Is KPMG Peat Marwick's(I believe now known only as KPMG)opinion used in Guaranty Life's marketing materials, or did your company request the opinion?

[Guest KGibson]

The opinion letter is used in their marketing materials, and is available upon request. I also have a copy and will gladly fax it to anyone wanting to read the letter. And, as I mentioned previously, this is NOT a product for EVERY group, simply an option out there.

[Guest KGibson]

UPDATE: I just spoke to Chuck Roeder, Executive Director for Exec-U-Care. He also informed me that Ernst & Young will be issuing a tax opinion letter also on the plan. If anyone would like to contact him directly for more information, his number is 1-800-365-3932.

[Guest ftaormina]

The opinion letter is used in their marketing materials, and is available upon request. I also have a copy and will gladly fax it to anyone wanting to read the letter. And, as I mentioned previously, this is NOT a product for EVERY group, simply an option out there.

Do you still have a copy of their opinion letter from KPMG I have been looking everywhere for one and have been unsuccessful. I have only been able to find their Ernst and Young letter which dates back to 2000. I have heard that there was a new one put out by KPMG back in 2005 does anyone have a copy I can get my hands on I am very curious to see what it says. Thanks

[Ron Snyder]

The fact that you are telling me that a tax opinion letter is "used in their marketing materials" is of considerable concern. As a tax professional, I believe that dissemination of a tax opinion to be used for promoting a transaction is a violation of the Circular 230 requirements and can subject the issuer to harsh sanctions. It is doubtful that KPMG wants to be subject to those penalties, and the abuse is likely the result of misguided sales people like yourself.

BTW, the Exec-U-Care website lists Scot Wilkins as Executive Director and Larry Jurkens as Associate Director. No mention of Chuck Roeder.

[david rigby]

The company pays a premium of $250 per year plus 110% of the claims.

Hey, I'm not a health actuary, but this does not look like an insured premium. Looks more like some type of stop-loss arrangement.

[oriecat]

Do you guys realize this thread is like 10 years old?