Dealer Benefits Network, LLC

To give U-Haul Independent Dealers and their employees ready access to the basic facts on the U-Haul Dealer Benefits Program, the benefits staff has compiled the following Frequently Asked Questions and answers.

Q: What is the U-Haul Dealer Benefits Program and when does it become available to dealers?

A: The U-Haul Dealer Benefits Program is a national program of affordable medical and dental insurance, vision, hearing, Rx and voluntary benefits for dealers and their families. Dealers and their employees are eligible immediately upon activating their dealership, with no waiting period. (In Canada, only the Vision plan is currently available.) The program was established in 2000 in response to dealer requests and we are continually evaluating benefits and insurance services to broaden and improve the program. Our goal is to provide a wide selection of quality insurance and benefits so the different needs of employees' of your various businesses -- even part-time and 1099 people -- can be met. We know one size does not fit all when it comes to insurance and benefits.

A: No. All coverage is voluntary and portable. Each person in the dealership and the dealer's other businesses can select the combination of insurance and benefits that is right for themselves and their families. In other words, there is no obligation to get covered under the program, but once covered, the dealer and employees can keep their coverage as long as they pay for it, even if they should leave the dealership, because it is portable.

A: The program is designed to let dealers and employees sign up online using our secure and private benefits website and choose their own effective dates. Simply visit the Comparison Shop section of the dealer benefits website. Or, call the Benefit Center at (888) 551-9801 for assistance.

Q: Is it possible to arrange for a representative to come out to the dealer's workplace and explain and enroll employees for the benefits each person wants?

A: In many states we provide on-site benefit communication and enrollment services when the dealer wants to establish a payroll deduction program for voluntary supplemental benefits. We will arrange an appointment with a licensed local representative who will take time to explain the benefit choices to employees in a professional, no-pressure way. These benefits supplement the "core" health insurance available through the program's online Comparison Shopping Tool. Simply call the Benefit Benter at (888) 551-9801 to make arrangements.

A: The dealer or employee can simply go directly to the proprietary dealer benefits website and go to the section titled "Comparison Shop for Medical." This is our convenient online Comparison Shopping Tool for medical and dental insurance. It is easy to use: It is pre-selected for medical. Just put in your zip code (either home or business), put in the dates of birth of all family members you want to cover, select your own effective date and click the "Get Quotes" button. In most areas, several dozen plan options will be shown, giving the carrier, benefit design details and the monthly premium. You can even look up a doctor or hospital to make sure they are in the plan you like. Then, click the "Apply" button for the plan you like and complete your information securely and in private online. You will be asked to give your email so you can get status updates, and a credit card for the first premium. You can be billed after that and you will get your ID cards and policy in the mail directly from the plan you choose. It's about as easy as we can make it, without having an agent come out and fill out paperwork.

A: Yes. We specialize in the new tax-favored Health Savings Account (HSA) major medical insurance plans and our benefits center staff is happy to explain them and help you get started. Over 10 million Americans now have their own HSA major medical insurance plan since the Federal tax law changed in 2004 to provide this important benefit to small businesses and individuals, according to Americas Health Insurance Plans.

The Internal Revenue Service has issued guidance that for 2010, HSA contributions are tax-deductible up to either:

An HSA is a bank account set up separately from your qualified health insurance plan and normally requires a minimum monthly deposit of $25. You get access to the account like you do with any bank account, including a debit card to use for doctor, dentist and pharmacy visits when you want to pay for health care expenses not covered by your insurance, for example an expense coming under your deductible. Unused amounts in your HSA roll over at interest each year.

Q: Is there an easy way for dealers to help employees pay for the medical insurance and other benefits they select under the U-Haul Dealer Benefits Program?

A: Yes. Dealers can direct deposit the pay of employees of their U-Haul and related businesses onto the Dealer Benefits Network Payroll Card, through our affiliation with Load-N-Go, Inc. and MasterCard®. All your employees qualify for this secure and convenient payroll card because there is no sign-up cost or credit qualification. Simply sign up employees online at the Payroll Card Service section of the dealer benefits website. Dealers simply follow standard direct deposit procedures to periodically load employees' pay onto their payroll cards and eliminate paper paychecks. Employees use the card just like a regular MasterCard® and can use it to pay for the insurance and benefits they choose through the U-Haul Dealer Benefits Program. If the Dealership is going to help employees with the cost of benefits, using the Payroll Card makes it easy for the Dealer to set up a defined monthly contribution.

Q: Is this group coverage with uniform benefits and rates, so everyone can get covered without giving health information?

A: No. Dealers across the U.S. have told us "one size does not fit all," so we set up the program on a "cafeteria" basis to give you many choices of coverage design and monthly cost. We do not have one national, uniform group health plan that is the same for everyone and takes everybody regardless of their health condition. Instead, our goal is to provide many choices and options and we are continuously negotiating plans and prices with high-quality carriers in each state to find the best deals for our dealers. No medical exam is required, but health insurance presently requires some health information be given when applying.

Our "cafeteria" program is rated for a normal, healthy employed population, so most people are approved at the premium rate illustrated. It is possible that someone who has significant medical issues may not be approved, but this is the exception. Each carrier makes its own underwriting decision on covering or excluding pre-existing conditions, so you may want to try more than one insurer. Choices vary by state, due to state regulations.

In many states, we provide the option of a "traditional" small business group health plan, that may provide guaranteed coverage, if the dealership qualifies under its state insurance department rules and commits to the carrier's program cost contribution, reporting and participation requirements. Call the Benefits Center for more details at 888-551-9801.

Under the federal health reform rules, however, all medical coverage is scheduled to be sold without regard to health status or pre-existing conditions starting in 2014. Between now and 2014, people with serious health conditions can get coverage either through their state's health risk pool or the federal health risk pool. All health insurance carriers in our program are complying with the new federal health reform rules as they take effect. See the Section on "Health Reform and You" for more details.

COBRA is the federal law that allows former employees and dependents to remain on their previous employer's group health plan for up to 18 months (longer in certain cases) by self-paying the total monthly premium for the cost of coverage under that plan plus a small administration charge and without providing a health questionnaire to requalify. Many people, including many new U-Haul Dealers, find COBRA is a convenient but expensive way to assure they have continuous health care coverage for a temporary period after leaving an employer. By paying COBRA premiums, you learn the true total cost of health coverage under a previous employer's plan and you have a valuable benchmark for making an informed comparison shopping decision for your own coverage.

June 1, 2010 marked the end of the eligibility period for the temporary federal COBRA subsidy, which covered 65% of monthly COBRA premiums for up to 15 months for laid off workers and their dependents. June 1, 2010 was also the date on which many of the subsidy's first recipients (those who began receiving the subsidy in March 2009) officially exhausted their 15 months of assistance.

With each succeeding month after June 2010, more and more COBRA enrollees will roll off the subsidy. Dealers who feel they can do better by shopping for their own health plan can turn to the U-Haul Dealer Benefits Program. Using the Dealer program's convenient online shopping tool, you can compare the wide range of available plans from the highest rated carriers, make an informed choice and select the best health plan for your needs. Those with pre-existing medical conditions who believe they would have difficulty obtaining coverage on their own might opt to continue COBRA for an additional three months at their own expense beyond the 15-month subsidy, or else turn to government-sponsored coverage. The Dealer program links to government resources for those who are interested.