Gray & Troy Pleased to Announce Merger with Morris & Garritano

Exciting News!
Gray & Troy and Morris & Garritano have decided to merge and become one company. While the company will operate under the name Morris & Garritano, the exceptional service and relationships that you and your employees have come to expect and rely on from Gray & Troy will remain the same. Our team is working hard to ensure a smooth transition with minimal client impact.  All Gray & Troy staff will be retained and clients will keep the same day-to-day contacts.

Gray & Troy team members will not be transitioning to Morris & Garritano’s office until later this year. Clients will be notified as any contact information is updated. This includes phone numbers, email addresses and physical addresses. For the time being, be assured that you and your employees can reach us how you always have.

Who is Morris & Garritano? 
Most of you are already familiar with Morris & Garritano and they might even provide other services for you. Founded in 1885, Morris & Garritano is a full-service insurance agency focusing on business insurance, workers compensation, employee benefits, personal lines, surety and life insurance.  This includes services in the areas of loss control, compliance, claims management and human resources.

Why did Gray & Troy decide to merge?
Morris & Garritano has demonstrated a dedication to integrity and an unwavering commitment to customer service. Like Gray & Troy, they focus on relationships coupled with a philosophy of exceeding client expectations. It was this alignment of core values coupled with our ability to provide a new and broader set of services to our clients that led us to our decision to partner with Morris & Garritano.

It has always been the partnership with our clients and the ability to bring knowledge, expertise and exceptional services that has driven us to excel. The joining of our two organizations allows us to bring a broader range of resources to our clients while also expanding our ability to educate and prepare clients as they navigate through the challenging legislative changes brought on by the Affordable Care Act.

Our Commitment to you and your employees going forward 
This is an exciting change for us at Gray & Troy and for you, our client. However, we would like to stress what will not change and that is the level of service and relationships that you and, importantly your employees, expect and rely on.  Be assured that you will continue to receive the same exceptional service from the same people.  

We will continue to guide and advise you through the upcoming renewal process and be a presence for you and your employees through open enrollment. You and your employees should continue and are encouraged to call our office with your questions, concerns and issues. Gene, Dan, Steve and the rest of the Gray & Troy staff are here to advise and support you and your employees.

Please feel free to contact us if you have any questions.

Gray & Troy Insurance Services, Inc.

1540 Marsh Street, Suite 230
San Luis Obispo, CA 93401
Tel (805)540-7010 | Fax (805) 546-6199

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Nationwide Health Care Subsidies Upheld by Supreme Court

In a 6-3 decision today, the U.S. Supreme Court ruled that consumers will continue to have the ability to qualify for health care subsidies based on income, whether through a federal or state exchange.  The ruling in King v. Burwell upholds a challenge to the Affordable Care Act that could have erased premium tax-credits and cost-sharing subsidies in the 34 states that operate federally facilitated marketplaces.

Gray & Troy Insurance continues to closely monitor and provide updates on the Affordable Care Act to help you stay informed.

Please feel free to contact us if you have any questions.

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IRS Sets 2016 Health Savings Account (HSA) Plan Limits

Recent Changes to Federal Legislation  

2016 IRS Plan Limits for HSA

Health Savings Account contributions are indexed annually for inflation and updated by the IRS.  Key changes to the HSA plan limits include the following:

2015 2016
Health Savings Account Contribution Limits
HSA Maximum Annual Contribution Limit
$3,350 $3,350
HSA Maximum Annual Contribution Limit
$6,650 $6,750
HSA Catch-up Contribution Limit $1,000 $1,000
Health Savings Account Compatible Health Plan Limits
HSA Minimum Annual Deductible
(Self only)
$1,300 $1,300
HSA Minimum Annual Deductible
$2,600 $2,600
HSA Maximum Out of Pocket
(Self only)
$6,450 $6,550
HSA Maximum Out of Pocket
$12,900 $13,100
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Anthem Enrollment in Identity Protection Services for Current & Former Members Starts Today

Today, Anthem provided information on how to immediately enroll in credit protection services to all members who are potentially impacted by the Cyber Attack. Starting today at 11 a.m. PT, current and former Anthem members can visit to learn more about credit monitoring and identity theft repair services provided by AllClear ID, a leading and trusted identity protection provider. All services are available for two years. Details of the services and instructions on how to enroll are included in the press release below.

If your company was or is an Anthem client, you may wish to share this information with your employees. We will continue to monitor and provide updates as we receive further guidance so you and your employees can stay informed.

Anthem Press Release – How Members Can Access Identity Protection Services
Please feel free to contact us if you have any questions.

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Important Update and Guidance Regarding Anthem Data Breach

As we communicated last week, Anthem suffered a significant cyber-attack during which the personal information of Anthem members was compromised. Gray & Troy Insurance has been closely monitoring the situation to keep you informed. Below is the latest information we have received from Anthem. If your company was or is an Anthem client, you may wish to share this information with your employees. We will continue to monitor and provide updates as we receive further guidance so you and your employees can stay informed.

Cyber Attack Communications Update

Anthem Cyber FAQ

Please feel free to contact us if you have any questions.

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Anthem Data Breach Impacting Members

We want to let you know that we have just become aware that Anthem, Inc., the parent company of Anthem Blue Cross, is the victim of a highly-sophisticated cyber attack. Anthem has informed us that its member data was accessed, and information about our clients could be among the data.
We are working closely with Anthem to better understand the impact on its members. Here is what we do know:

  • Once Anthem determined it was the victim of a sophisticated cyber attack, it immediately notified federal law enforcement officials and shared the indicators of compromise with the HITRUST C3 (Cyber Threat Intelligence and Incident Coordination Center).
  • Anthem’s Information Security has worked to eliminate any further vulnerability and continues to secure all of its data.
  • Anthem immediately began a forensic Information Technology (IT) investigation to determine the number of impacted consumers and to identify the type of information accessed. The investigation is still taking place.
  • The information accessed includes member names, member health ID numbers/Social Security numbers, dates of birth, addresses, phone numbers, email addresses and employment information, including income data. Social Security numbers were included in only a subset of the universe of consumers that were impacted.
  • Anthem is still working to determine which members’ Social Security numbers were accessed.
  • Anthem’s investigation to date shows that no credit card or confidential health information was accessed.
  • Anthem has advised us there is no indication at this time that any of our clients’ personal information has been misused.
  • All impacted Anthem members will be enrolled in identity repair services. In addition, impacted members will be provided information on how to enroll in free credit monitoring.

We are continuing to work closely with Anthem to better understand the cyber attack and the impact on our clients. Anthem has created a website –, and a hotline, 1-877-263-7995, for its members to call for more information.
We will continue to monitor this situation and will provide you updates as they become available along with suggestions on how to take action.

Please click on the following link to review a memo we have prepared for you to distribute to employees. Employee Memo

Please feel free to contact us if you have any questions.

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Understanding Preventive vs. Diagnostic Services


Seeing your provider for regular checkups and exams is an important part of staying healthy. Under health care reform, many preventive care services and screenings are covered at no cost to you when you visit a doctor in your health insurance network. Diagnostic services, on the other hand, may be subject to your plan’s deductible, copayment or coinsurance, and will usually apply to your annual out-of-pocket maximum.

Preventive Services Keep You Healthy

No-cost preventive services such as routine screening tests, immunizations, well-woman visits and children’s well-check exams are intended to maintain your health and identify potential health issues before they become serious. During your preventive care visit your doctor will determine which tests or screenings may be beneficial based on your age, gender, general health and family health history.

Diagnostic Services Diagnose, Treat or Manage Health Conditions

Diagnostic services are intended to treat ongoing or already identified health conditions or issues. For example, lab services may be ordered due to current symptoms that require further diagnosis, or to clarify previous abnormal test results.

Examples of When Services May be Billed as Diagnostic

If you visit your physician for a routine physical exam (preventive) but mention during the appointment that you have been experiencing abdominal pain, your appointment and resulting services may be billed as diagnostic and applied to your deductible, increasing your percentage of the cost.

If you receive a screening test that is sometimes covered as a preventive benefit, such as a colonoscopy, but your physician ordered it because of ongoing symptoms you have experienced, it may be billed as diagnostic.

Although health insurance carriers use the same guidelines for preventive care coverage, they may be explained differently in your benefits summary. See below for examples of preventive care guidelines.

Anthem Blue Cross Guide to Preventive Care

Blue Shield Guide to Preventive Care


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Employer Reimbursements and the IRS

In a recently published Frequently Asked Questions (FAQs), the IRS addressed the deductibility of employer-sponsored reimbursements for individual health insurance premium policies. Read the full Q&A here.

What does it mean?
Beginning January 1, 2014, employers are no longer permitted to reimburse employees for insurance premiums for the purchase of an individual policy – whether the policy is purchased on- or off-exchange – as a tax-free benefit. Instead, any employer-reimbursed insurance premiums for individual health insurance policies are subject to all applicable federal and state income and payroll taxes that would otherwise apply.

The IRS does not prohibit employers from increasing employees’ salaries to contribute to the cost of purchasing individual policies. However, pre-tax reimbursements to employees for individual policies are no longer allowed. Reimbursements now must be treated as taxable compensation for the receiving employee and included in all income reporting.

What is the penalty for providing tax-free reimbursements for individual health insurance plans?
Per the IRS: “such an arrangement fails to satisfy the market reforms and may be subject to a $100/day excise tax per applicable employee (which is $36,500 per year, per employee) under section 4980D of the Internal Revenue Code.”
Read the full IRS Notice 2013-54 notice here.


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Term Life Insurance – What Happens When Your Policy Expires?

Boy and Grandfather
Term life insurance provides coverage for a predetermined amount of time to fit your needs. But what happens when your term nears its expiration date? You have a few options to consider.

1. Pay the new premiums. Don’t assume that your term policy will cancel automatically when the term ends. Depending on your policy, it may continue at a significantly higher premium. This is especially important to note if you have the premiums automatically drafted from your bank account. Premiums may continue to increase annually until you reach 95 or 100 years of age. This is not a feasible option for many individuals due to the high cost. However, it may be a viable option for an individual who needs to continue coverage and is no longer insurable due to health conditions.

2. Purchase a new policy. If you determine that your loved ones would still benefit from financial assistance, you may consider purchasing a new term policy or a permanent policy.

3. Convert your term policy to a permanent policy. Some term life insurance policies include an option to convert to a permanent policy – universal life or whole life – without having to answer health questions or undergo a medical examination. This may be helpful to those with health conditions that would make obtaining a new policy impossible or prohibitively expensive.

4. Let the policy expire/cancel the policy. If you’ve determined that your need for life insurance has passed – due to personal savings, grown children or a spouse who no longer needs financial support in the event of your death – you may decide that the best option is to allow your policy to expire (or cancel it when the term ends).

Need guidance on your life insurance policy options?


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Covered California Announces Special Enrollment Period for COBRA Enrollees


Covered California today announced a special enrollment period for individuals with Federal COBRA or Cal-COBRA coverage who would like to switch to an individual health insurance plan purchased through the Covered California exchange.

Those who currently have COBRA (Consolidated Omnibus Budget Reconciliation Act) healthcare coverage can shop for and buy coverage on the Covered California website during a two-month special-enrollment window, beginning May 15, 2014 and ending July 15, 2014. Gray & Troy Insurance has a team of certified Covered California agents ready to assist you should you have any questions regarding your health insurance coverage options.

Click here for the full article from Covered California.


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