Getting to the bottom of the ACA

Transcription

1 Getting to the bottom of the ACA Presented by: Liliana Salazar National Practice Leader Employee Benefits Compliance Wells Fargo Insurance February 10, Wells Fargo Insurance Services USA, Inc. All rights reserved. No reprints without permission.

2 Disclosure The material is provided for informational purposes only based on our understanding of applicable guidance in effect at the time of publication, and should not be construed as ERISA, tax, or legal advice. Customers and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Although care has been taken in preparing and presenting this material accurately (based on the laws and regulations, and judicial and administrative interpretations thereof, as of the date set forth above), Wells Fargo Insurance Services USA, Inc. disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it, and any responsibility to update this material for subsequent developments. To comply with IRS regulations, we are required to notify you that any advice contained in this material that concerns federal tax issues was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding taxrelated penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any matters addressed herein. 1

3 Agenda ACA Updates Key challenges faced by employers Pay or Play mandate Measurement periods New IRC Reporting Requirements Exchanges/Marketplaces Cadillac Plan Tax 2

4 Affordable Care Act Updates 3

5 Judicial Challenges King v. Burwell- Legality of subsidies in federally facilitated marketplaces U.S. Supreme Court has agreed to hear the King v. Burwell, hearing for oral arguments is scheduled for March 4, 2015 Case questioned the validity of IRS regulations that allow access to tax credits for eligible individuals who obtain coverage through federally operated marketplaces A literal reading of the statute indicates subsidies should only be available under state-operated exchanges Without tax credit subsidies, individual coverage is unaffordable to most individuals in 26 states with FFM, which would undercut both the individual and employer mandates with respect to individuals living in those states 4

6 Legislative Challenges H.R.30/S. 30- Bills intended to modify the current definition of a full-time employee under the ACA from 30 hours per week to 40 hours per week COB scored the bill estimating change to increase cost by $54.2 billion in the form of subsidies to individuals and a decrease in penalties assessed against employers S American Job Protection Act - Bill that intends to repeal the Play-or-Pay mandate, modify the pre-existing condition exclusions and increase the thresholds under the Cadillac Plan Tax Highly unlikely either bill will pass in the Senate, as GOP only controls 54 seats and they need 60 seats to avoid a filibuster; even if it passed in the Senate, the GOP lacks 2/3 majority votes (67 votes) to override a Presidential veto S. 40- American Liberty Restoration Act - Bill introduced in the Senate to repeal the individual mandate which became effective on 1/1/14. Highly unlikely it will pass both chambers as it would encourage insurance companies to flee Exchanges/Marketplaces due to adverse selection 5

7 Legislative Challenges H.R Bill to repeal the ACA in its entirety, this is the fourth attempt by the House to repeal the ACA. Passed the House on 2/3/15 by a vote. Bill will go to the Senate for review. A date has not been set yet for the bill to be heard by the Senate. Provides a six month delay on its effective date to allow Congress to implement an alternative plan It may pass the Senate via the budget reconciliation process as it only requires 51 votes rather than the traditional 60, (GOP has 54 votes) It is highly unlikely the bill will become law as President Obama will veto the law and the GOP lacks the 67 votes to override a Presidential veto 6

8 ACA Updates Summary of Benefits and Coverage (SBC) Distribution New SBC templates and glossaries applicable to plans renewing 9/1/15 or later Shorter 5 pages double sided vs. 8 includes a third example (fracture) and 15 new definitions Employer to certify to carrier distribution of SBC (file report) SBC may serve as an SMM if distributed to participants W-2 Reporting Requirements Report the annual value of benefits provided to employees and their dependents during the 2014 calendar year by 1/31/15. Include total annual cost of medical coverage, certain medical voluntary supplemental plans paid for on a pre-tax basis, and integrated dental and vision plans. Notice of Exchange Availability For any new hires no later than 14 days from Date of Hire May be advisable to distribute it prior to open enrollment if the employer s plans have changed as to MV, affordability and MEC or are now offering coverage to certain employees. Some state exchanges require employers to complete notices Cash-out option and impact on affordability calculations Opt-out moneys may not be used to purchase coverage from an Exchange or the individual market Cash-out incentives that are taxable will be included in the cost paid by the employee for employee only, uncertain on flex dollars 7

9 ACA Updates Individual Mandate For 2014 employees will self-report on tax returns if they and their dependents were insured for a full 12 months in 2014 Check box in Line 61 to report coverage for a full year (employer is NOT required for 2014 to provide any report or proof If employee or tax dependents of employee were not insured during the 12 month calendar year employee must complete Form 8965 to calculate penalty exposure Complete Line 69 if employee was a recipient of tax credits to purchase coverage from an Exchange/Marketplace and complete Form 8962, employee or dependents would have received a Form 1095-A for the Exchange Employee and tax dependents would be exempt from individual mandate penalty is cost of employer sponsored coverage for a tier of coverage other than employee only coverage was greater than 8% of the employee s household income Claim exemption when filing tax returns Refer employees to Publication 5187 for additional information on what to do with their 2014 tax returns 8

10 Affordable Care Act Key Issues 9

11 ACA timeline Community rating Exchanges and SHOP (only SHTC; 35%NP/50% FP) Medicaid expansion 90-day waiting period from DOH Individual mandate* Deductible limits and OOP max Elimination of preexisting conditions and annual dollar limits on EHB Health Plan ID Transitional Reinsurance and Carrier Fee Play or Pay mandate for employers with >100 or employers with <100 employees that do not qualify for relief Automatic enrollment (?) Payment of reinsurance fee Report value of benefits on W-2 Form Exchanges available to employers with less than 100 employees ALE reporting 6055 and 6056 ALEs with less than 100 FT (50-99)employees subject to play or pay mandate Payment of individual penalties Imposition of penalties for employers under ACA (100+ FTE) Non-discrimination tests for fully-insured plans (?) ALE reporting requirements reports due on 2/1/16 for 1095C forms and 1094 Form by 2/29/16 (paper) or 3/31/ 16 electronic Exchanges available to employers of all sizes 2018 Cadillac Plan Tax * Extension may apply to individuals working for employers with non-calendar year plans 10

12 Play or Pay Mandate Overview No minimum essential coverage (MEC) for substantially all full-time employees (and dependents ) Applicable large employer 50 or more full-time (including FTE) employees Determined on an IRC controlled group basis Offers MEC but it is either unacceptable or unaffordable $2,000* annually ($ per month) per total number of full-time employees Exclude first 30 FT Employees (for 2015 only offset is 80 if ALE has 100 or more FT employees) Penalty will not apply if MEC is offered to 70% of FT employees in 2015/95% of FT employees in 2016 $3,000* annually ($250 per month) per each fulltime employee that receives federal assistance from a public exchange Penalty capped at MEC penalty * Adjusted for medical inflation after 2014 (est. $2080 and $3120 for 2015) 11

13 Play or Pay Mandate Overview Step 1 Fair Employee Access Offer MEC to employees working >30 hrs/week (130 hrs./month) Step 2 Acceptable Health Insurance Minimum Value (60% Actuarial Value) Step 3 Affordable Employee Contributions Insurance Exchange < 400% of Federal Poverty Level (FPL) *< 9.5% of Household Income (or one of three safe harbors) * Amount indexed in

14 Play or Pay Accessibility to MEC Step 1 Fair employee access Offer MEC to full time employees >30 hrs/week (130 hrs/mo) 90 days from Date of hire (DOH) *An employer contribution to a union plan will be deemed to be an offer of MEC All of the following constitute MEC : Employer- sponsored coverage that is not an excepted benefit plan* Grandfathered plans Small or large group insured plans Self-insured plans VERY BROAD!! Including preventive care only plans Other types of MEC employees may access: TRICARE, VETS Medicare, Medicare Tribal plans, governmental plans Individual policies COBRA and retiree coverage *Union plans Spouse s or parent s plan Student insurance 13

15 Play or Pay Identify full time employees Rules to identify FT employees Full time employees >30 hrs/week (130 hrs/mo) Offer 90 days from Date of hire (DOH) Traditional Employee Workforce Full time employees (> 30 hrs./wk.) Seasonal employees (<6 months) Part-time (<30 hrs./wk.) Variable hour employees FT employee- At time of hire scheduled to work 30+ hours per week on a regular basis= FT must offer benefits no later than 90 days from DOH (60 days in CA if plan is insured) Seasonal - not more than six months per year hired during same time and similar duration each year= MAY BE MEASURED UNDER LOOK BACK PERIOD (Up to 12 months from start date/doh), no benefits need to be offered until end of measurement period if deemed to be a FT employee Part-time- hired to work less than 30 hours per week=may BE MEASURED UNDER LOOK BACK PERIOD (Up to 12 months from DOH), no benefits need to be offered until end of measurement period if deemed to be FT employee Variable hour - hours fluctuate week to week over and under 30 hours per week=may BE MEASURED UNDER LOOK BACK PERIOD (Up to 12 months from DOH), no benefits need to be offered until end of measurement period if deemed to be FT employee 14

16 Identifying full time employees Two ways to measure hours: Monthly measurement method Look-back measurement method Employer must measure all employees hours Employer may use Monthly method for some employees and Lookback method for others, but only in these categories: Salaried/Hourly Different U.S. states Collectively bargained/non-collectively bargained Covered by different collective bargaining agreements Remember that you need to report to the IRS who is a full time employee or not Measurement periods are the only approved method to track hours for employees 15

17 Identifying full time employees Employees experiencing a change in status during the measurement period- Part-time/variable or seasonal to full time Coverage must be offered no later than the earliest of end of waiting period (90-days) or commencement of stability period Full-time to part-time/variable or seasonal to full time Employee s hours must be credited and counted towards to measurement period available under the new employee classification Employees experiencing a change in status during the stability period- Part-time/variable or seasonal to full time Status as full-time employee is retained during the stability period regardless of the change in employment status, if not full time during SP then coverage must begin no later than 90-days Full-time to part-time/variable or seasonal to full time Measure employee as if FT employee was parttime/seasonal/or variable and treat employee as FT or PT based on prior measurement period for the duration of the stability period 16

18 Counting hours of service Employees paid on an hourly basis: count actual hours of service for which employee is owed payment Employees paid on a non-hourly basis (e.g. salaried): count actual hours of service for which employee is owed payment days-worked equivalency 8 hours per day in which employee credited with at least one hour weeks-worked equivalency 40 hours per week in which employee credited with at least one hour NOTE: Equivalency method not allowed if it would substantially understate employee s hours ISSUES Must limit days worked by part-time exempt staff to three days a week otherwise they would be treated as FT employees, or require PT exempt employees to report hours worked Cannot treat hourly supervisory differently from other hourly employees 17

19 Monthly measurement method Count employee s hours of service in each month (exclude all unpaid hours, e.g. unpaid FMLA,USERRA and jury duty) If employee works 130 hours, is treated as full-time for that month Recommended for employees who commonly work 30 hours or more per week Must use for counting full-time employees for ALE status May use for determining who is a full-time employee for purposes of offering coverage to and for determining and computing penalties under IRC 4980H Optional weekly rule: Employer chooses day to start week For months with 4 weekly periods full-time equals 120 hours/month For months with 5 weekly periods full-time equals 150 hours/month 2014 Wells Fargo Insurance Services USA, Inc. All rights reserved. No reprints without permission. 18

20 Monthly Measurement Method-Sample Scenario 2- On-going employee who has been a full time employee who experiences a reduction in hours of employment. Employee is measured under the monthly measurement method (130 hours per month= FTE). Employee Hours Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Status FT Not FT Not FT FT FT FT FT FT FT Not FT Not FT 4980H Penalty if Benefits Not Offered? Yes No No Yes Yes Yes Yes Yes Yes No No COBRA COBRA 2014 Wells Fargo Insurance Services USA, Inc. All rights reserved. No reprints without permission. 19

21 Look-back measurement periods Ongoing Employees (employed for one full measurement period): Standard Measurement Period (SMP) Admin Period Standard Stability Period 3-12 months up to 90 days Generally equals SMP (must be at least 6 months) Newly Hired Part-time/Variable Hour/Seasonal Employees Initial Measurement Period (IMP) Admin Period Initial Stability Period 3-12 months up to 90 days Must equal standard stability period Must be < 13 months + fraction (from date of hire, including any portion of Admin Period used prior to start of IMP 20

22 Process flow ACA Measurement Periods and Reporting requirements Data Employer systems (can be outsourced) HRIS Payroll Time and attendance Spreadsheets Benefits administration systems Demographic (SSN, contact info, etc.) Dates (hire, rehire, LOA, termination, status changes etc.) Job/work status Hours scheduled and/or worked Pay data Leave data (FMLA leave/userra, volunteer, jury duty, PTO, sick time, etc.) Benefits administration system Benefit coverage data Covered employee data Employer Employee Covered dependent data The possibility of more than one source system for each system type (i.e., multiple payrolls) may exist 21

23 Play or Pay Minimum value Step 2 Acceptable health insurance Minimum Value (60% actuarial value) Required Action Assess Actuarial Value (AV) of benefit plan(s): HHS calculator Actuary Healthcare reform modeling tool Determine if plan consolidation is required Cost of insuring more employees Complexity of communicating plan options Maximizing Medicaid expansion Nondiscrimination rule exposure 22

24 Pay or Play Affordable coverage Step 3 Affordable contributions for employee only coverage < 9.5% of household income Required Action Box 1 of W-2 Form (times 9.5%)- MUST use 2015 projected income and employer may not use another method of assessing affordability of coverage in a calendar year Rate of pay (times 130 times 9.5%)= rate of pay can change only for hourly employees, cannot use rate of pay if rate of pay decreases for salaried employees 100% of Federal Poverty Line (FPL) times 9.5% = $93.18 for 2015, must use 2014 FPL of $92.39 if the plan is a calendar year plan 23

25 Employer Play or Pay Mandate-2015 Penalties are triggered only if: Employer fails to offer Minimum Essential Coverage to at least 70% for 2015/95% for 2016 of the employer s total full-time employee population Or Employee only coverage is unaffordable and/or coverage fails to meet minimum value (60% Actuarial Value) AND Receives a subsidy for premiums and/or out-ofpocket expenses 24

26 New reporting requirements under the ACA 25

27 IRS Reporting Step 1 Do you offer Minimum Essential Coverage under a self-insured plan? Yes No Step 2 Are you an Applicable Large Employer or ALE Member? Are you an Applicable Large Employer or ALE Member? Yes No Yes No Step 3 To satisfy sections 6055 and 6056 reporting requirements employers must submit: To satisfy section 6055 reporting requirements employers must submit: To satisfy section 6056 reporting requirements employers must submit: No reporting is due Form 1095-C to employees by 1/31. optional for nonemployees Form 1095-B Form 1094-C and copies of all 1095-Cs to IRS by 3/31. May use1094-b and 1095-B for nonemployees Form 1095-B to employees by 1/31 Form 1094-B and copies of all 1095-Bs to IRS by 3/31 Form 1095-C to employees by 1/31 Form 1094-C and copies of all 1095-Cs to IRS by 3/31 26

28 ACA reporting requirements IRC Section 6055 (reporting offer of MEC coverage) Applicable to all providers of MEC coverage (carriers and self-funded medical plans regardless of size) Report to IRS all participants (employee, dependents and others) covered by self-funded medical plan that offers minimum essential coverage Collect all SSN or TIN for plan participants, when coverage is offered and months individuals are covered (calendar year reporting regardless of plan year) Issue certificate of coverage to each covered employee by 2/1/16 (Form 1095-C), may block SSN and only report last four digits Self-insured plans report to IRS via transmittal Form 1094-C, a 1094-C Form accompanies each 1095-C Form Filed, one 1094-C Form must be the Authoritative Transmittal Form (aggregate information of all forms) Form 1095-C (Parts I, II and III even if employee is not FT). If employee is not a FT employee for the entire calendar year, the employer must complete Part II and on line 14 enter code 1G and must not complete lines 15 and 16. Forms must be filed by February 28 (March 31 if filing electronically). 27

29 ACA reporting requirements-6055 IRC Section 6055 (reporting offer of MEC coverage) Electronic filing available to employers who issue 250 or more Forms (1095-C/1094-C or 1095-B/1094-B). Employers who issue less than 250 forms have the option of filing electronically or in paper If self-funded plan is not sponsored by an ALE, small employer must file Forms 1094-B and 1095-B. Multi-employer plans to report on union plan coverage using Forms B and 1095-B as well as insurance carriers for insured plans. CalPERS to complete Forms 1094-B and 1095-B for employees covered under the CalPERS self-insured plans Employer is still responsible for completing 1094-C and1095-c for its employees (Part II of 1095-C Form) and not complete Part III, must not indicate plan is self-insured Optional to report retirees, COBRA QB or non-employees receiving coverage under plan using Forms 1094-B and 1095-B 28

30 ACA Reporting Requirements Form 1094-C- Complete Parts I-IV Information to be reported to IRS 1. Name, address, employer identification number (EIN) for reporting entity 2. Enter information on employer s contact 3. Identify total number of 1095-C Forms being filed 4. Determine if the 1094-C is the aggregator form and if employer is part of a controlled group. If not a member of a controlled group leave Part III, column (d) and Part IV blank. 5. Certify the offer method of coverage: a. Qualifying offer- offer MV and affordable coverage (100% FPL) during the year, do not complete Part II, line 15 of 1095-C From, Enter code 1A on line 14 of 1095-C Form b Qualifying Offer Transition Relief Method- Offer of qualifying coverage to at least 95% (70% 2015) of its full-time employees (employees under measurement periods are not counted). Do not complete Form 1095-C Part II, line 15. Use code 1A for line 14 (Qualifying offer) or Code 1L (no offer/not MV/affordable) c. 4980H Transition relief- Identify which form of relief the employer qualifies for and complete Part III, column (e); (Code A) relief or non-calendar year plan (Code B) d. 98% Offer Method- Employer offered to at least 98% of its employees affordable coverage that was MV, employer not required to complete Part III, column (b) 29

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34 ACA reporting requirements ALE Reporting C Parts I and II Information to be reported to IRS under general reporting method (statutory requirements, as modified by final regulations) 1. Name, address, employer identification number (EIN) of ALE 2. Name and phone number of ALE s contact person (which can be an employee or agent of the employer) 3. Calendar year for which the information is reported 4. Certification as to whether the ALE offered to its full-time employees (and their dependents) the opportunity to enroll in MEC under an eligible employer-sponsored plan, by calendar month 5. The number of full-time employees for each calendar month during the year, by calendar month 6. For each full-time employee, the months during the calendar year for which MEC was available 7. For each full-time employee, the employee s share of the lowest cost monthly premium for self-only coverage providing MEC offered to that full-time employee, by calendar month- not required if using 1A on line The name, address, and TIN of each full-time employee during the calendar year and the months, if any, during which the employee was covered under an eligible employer-sponsored plan (note that the TIN of spouses or dependents not required) 9. Any other information required on reporting forms or subsequent guidance 33

35 ACA reporting requirements ALE Reporting C Parts I and II Information expected to be reported to IRS under general reporting method using indicator codes for each calendar month 1. Line 14- Minimum value MEC was offered to: (1A) full-time employees, spouse and dependents, employee contribution was no more than 9.5% of 100% of FPL; (1B) MEC offered to employees only; (1C) MEC that is MV to employee and MEC to children, not spouse; (1D) MEC that is MV to employee and MEC to spouse, not children; (1E) MEC that is MV to employee and MEC to spouse and children; (1F) MEC that is not MV to the employee, spouse and /or dependents; (1G) Offer of coverage under a self-funded plan to a non-ft employee; (1H) No offer of coverage or not MEC; (1L) Transition relief (no coverage or not qualifying offer or offer for not 12 months) 2. Line 15- Only to be completed if codes 1B,1C,1D,1E is entered in Line 14. Enter lowest cost plan available to the employee including cents, if cost is $0, enter If amount was the same under the year enter amount in all 12 months, only enter employee contribution for employee only coverage even if a different tier of coverage was used. 3. Line 16- Use one of the codes to explain relief applicable to employer: 2A- Employee not employed during month; 2B-Employee no a FT Employee and did not have MEC; 2C- Employee enrolled in coverage offered; 2D- Employee was on a waiting period, or measurement period; 2E- Employee covered under a Multiemployer plan (union trust); 2F-W-2 Safe Harbor; 2G- 100% of FPL safe harbor;2h- Rate of pay safe harbor; 2I- Non-calendar year relief applies to employee (non-calendar yr. plans) 34

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40 Process flow ACA Measurement Periods and Reporting requirements Data Employer systems (can be outsourced) HRIS Payroll Time and attendance Spreadsheets Benefits administration systems Demographic (SSN, contact info, etc.) Dates (hire, rehire, LOA, termination, status changes etc.) Job/work status Hours scheduled and/or worked Pay data Leave data (FMLA leave/userra, volunteer, jury duty, PTO, sick time, etc.) Benefits administration system Benefit coverage data Covered employee data ACA management tool Eligibility data Employer/IRS Reporting Provides information to employer to comply with 6055 and/or 6056 reporting requirements Covered dependent data The possibility of more than one source system for each system type (i.e., multiple payrolls) may exist 39

41 Medicaid and Exchanges 40

42 Subsidized exchange accessibility 2015 Tax Credit Guidelines Federal Poverty Levels (2015) Federal Poverty Level Max Premium as % of AGHI Estimated Plan Actuarial Value Family Size Medicaid 100% FPL* Medicaid 138% FPL Exchange Subsidy up to 400% FPL 0% - 133% 2.01% 100% 134% - 150% 3.02% % 94% 151% 200% 4.02% % 87% 201% 250% 6.34% % 73% 251% - 300% 8.10% % 70% 301% - 400% 9.56% 70% >400% Unlimited * 60% * Not eligible for subsidized exchange coverage 1 $11,770 $16,243 $47,080 2 $15,930 $21,983 $63,720 3 $20,090 $27,724 $80,360 4 $24,250 $33,465 $97,000 5 $28,410 $39,206 $113,640 6 $32,570 $44,947 $130,280 7 $36,730 $50,687 $146,920 8 $40,890 $56,428 $163,560 * For family units of more than 8 members, add $4,160 per additional person See Rev. Proc and HHS Notice of Federal Poverty Guidelines at 41

43 Cadillac Plan Tax Cadillac Plan Tax Requires imposition of 40% excise tax on annual cost of coverage that exceeds federal thresholds $10,200 for single $27,500 for non-single coverage Includes employer contributions to HRAs, health FSAs (also employee-pretax deductions), HSAs as well as hospital and critical illness benefits paid by employers or employees on a pretax basis, integrated dental and vision plans Assess cost by using COBRA rates (minus 2%) Higher threshold for high risk professions (police and fire) and qualified retirees (age 55 and not entitled to Medicare) $11,850 for single $30,950 for family Risks 2018 adjustment to limits based on increase to standard cost of the Standard BC/BS plan under the FEHB program minus 55%, plus 100% Healthcare trends rising faster than COLA for 2018 and later years Healthcare premiums continue to rise at double digits exceeding COLA increases Aging population that requires more care (high claims utilization) New ACA mandates and limits on plan design curtail employers ability to control costs Solutions Control healthcare trend increases and utilization by implementing an integrated health and productivity strategy Pursue defined contribution strategy that incentivizes healthy behaviors 42

44 Are you ready to comply? Assess applicability and effective date of Play or Pay Mandate Analysis is based on number of employees, not type or tax-status of employer Determine if use of six-month period will mitigate Play or Pay exposure Determine if transition relief applies and if plan qualifies for 70% relief Identify and quantify financial risks under the ACA Implement and manage measurement periods Review systems to confirm management of hours and measurement periods Assess financial impact of Play or Pay mandate on business operations including new reporting requirements Assess changes to be implemented to plan designs, contributions, and eligibility criteria Determine actuarial value of plans Determine affordability of plans Identify newly eligible employees Determine if reclassification of employees is required Develop implementation and communication strategy 43

45 Questions? The material is provided for informational purposes only based on our understanding of applicable guidance in effect at the time of publication, and should not be construed as ERISA, tax, or legal advice. Customers and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Although care has been taken in preparing and presenting this material accurately (based on the laws and regulations, and judicial and administrative interpretations thereof, as of the date set forth above), Wells Fargo Insurance Services USA, Inc. disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it, and any responsibility to update this material for subsequent developments. To comply with IRS regulations, we are required to notify you that any advice contained in this material that concerns federal tax issues was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any matters addressed herein. Products and services are offered through Wells Fargo Insurance Services USA, Inc. and Wells Fargo Insurance Services of West Virginia, Inc., non-bank insurance agency affiliates of Wells Fargo & Company. Products and services are underwritten by unaffiliated insurance companies, except crop and flood insurance which may be underwritten by their affiliate, Rural Community Insurance Company. Some services may require additional fees and may be offered directly through third party providers. Banking and insurance decisions are made independently and do not influence each other Wells Fargo Insurance Services USA, Inc. All rights reserved. No reprints without permission. 44