Okay, good morning, everyone. My plan of action today is to do two things. So let's watch a VA in the queues at the same time, maybe this by, because I don't know if we're gonna get anything tomorrow, and I don't know if we're gonna get anything Friday, and remember this is a slow week, but today we have like a million things. So we might do two things today. We're not gonna be over anxious here, but we might. We just might. We won't have time to talk today about the market, but we'll probably have plenty of time to do that. Before the end of the week. Before the end of the week. Okay. So let's do, stop's gonna be 80, 180, 80. Don't have the entry yet. Don't have the entry yet. Don't jump the gun, wait. Let's do 50 by 80. If I change the numbers, I'll let you know. Let's do 60 by 80. This is gonna hit. What a nice read of this market. I was telling one to believe that we would fall again. Actually, that's not true. A friend of mine that I've been talking to believed the two. 60, and get that stop in. Get the stop in. Okay, let's wait. Wait on that. Here, BNBA, we're gonna do something else today. I know that we will. I know that we will. So let's just let this play on down and wait for another set up here. Okay, but it'll be the spy. It's gonna be the spy. Okay, stop's gonna be 448, 20. Let's do 60 by 20. As if you wanna do two things. So you could do two things at once. This is setting up before the queues. We're gonna roll over today. We gotta do what we have to do because I don't know if we're gonna get anything tomorrow and anything the next day. And yesterday ended up being a good day if you trade it all day, which I swear to God, we are not doing this month starting next week. Here we go, P.A. Dream target on this today is 170. I'm not saying it gets there, but I'm saying for sure that the market's gonna sell off. It was a great call. We lost in options trades last week. I lost in trades the week before that, but I never lost conviction. We will talk about it another day. I'm very good at what I do. I just am. It doesn't mean that you can make money in every trade. You can't, nobody does. Not even the people that are great at what they do. That's why I have to set a risk. Otherwise I'd risk my whole account every day I trade. You can't do that. Nobody can. Nobody. All right, here we go, P.A. You make me nervous when you say that, Jeff, because it tells me that you're in this without any risk. When you ask me where the stop is after the trade is three minutes in, it's over 448. 448.20, I think, is good enough. But if you were already in the trade and you don't know where the stop is, then you didn't size yourself. Here we go, P.A. The only things we wanna do today, it is completely insane that I did trades last week that were completely upside down that are probably gonna go on to work and I'm probably the only one in them.  And when trades go against you overnight, it's pointless to kill them because it's just pointless because they're down so much anyways.  Some of these trades are crazy. That we're gonna look at Netflix next. Your brain is slower than mine, that's okay. I was up super duper early today. Super duper early. Super duper early. Netflix under 370. So nice to have some volatility here, momentum and everything together and the FOMC minutes are this afternoon but I don't think that's really why we're down because nothing happened yet with that. That's two o'clock. We started selling off yesterday. Again, you can say Ukraine, Russia, duper duper duper. It's neither here nor there. All right, now if you wanna get out of this for the fast move, you could. No one's telling you have to hold it. No one at all. You could be out of this town in here right now. You could be out. Ooh, did you just see that invisible tech? You could be out of B.A. You could, you could, you could. Just wanna look at something else here. Jackie's out. Jackie's out, okay. Okay. What was it we talked about? We talked and talked and talked and talked and talked and talked and talked about this market specifically. And don't forget, what should we call it? Next Friday the market's closed. Don't forget that, people. Don't forget that. I'll send out a reminder. And I decided what we're gonna do is Friday after this room, our regular room, we're going to do a test of the new room for Monday just to make it less stressful. Okie-dope. I'll send out a reminder for that, for that. So we'll do Friday's room here, then we'll jump to the new room as a tester before Monday. Okie-dopes. So let's see if we can get this down as a push through 178, through 178. And of course you know the people, all the people in the world that are, I mean, is any, the fact that anyone would even attempt to buy this market today is so, so silly. But no one should be surprised. No one in the world. I was listening back to a video that I made yesterday. Does anyone remember what I said yesterday? I said it Monday and yesterday. I said earning season is until next week. It's nine days away. It's a long time for the market to not do anything at all. If we're gonna sell off, we're gonna sell off this week. Or we're not gonna go anywhere, or we're gonna trade in the range. We're not gonna make a new high before earning season. That's exactly what I said. I said, but nine days is a long time for earning season to start. So if we're gonna sell off, I said we're gonna sell off this week. Here we go, BA, let it drop. We're back on the BA train. We're on the wagon. We're on the BA wagon. I was trying to think of a song. What's a song that, a wagon song? I can't think of any.  What's a good wagon song? We need a good wagon song. 446, 12, I don't know any good cowboy songs. We're talking to myself. Okay, we broke 178, 177, 58. Anybody get out of this? Here, we gotta pay attention to this now. Let's get one more push in this and get out. Oh, Jackie, I thought you did get out of it. I'm so confused. Who got out of what and who did what with their lives? Nobody knows any good wagon songs. Nobody has any good wagon songs. I actually did a video last night in the market. I forgot to send it. So tired. So tired. Extremely tired. Organized with a couple of things here. Only trucker songs come to mind. What's a trucker song? Eastbound and Down, never heard of it. Roy Rogers back in the saddle. I knew there was a Roy Rogers song. Yeah, we could play that one. You wanna do it? Crap, hold on. Smoky and the Bandit? Oh my God.


Well, today we're very fortunate to have an expert from Cox Smith to speak about the compliance side of the Affordable Care Act, what you can get away with and what you can't get away with, and then all the penalties that might come about, if not done correctly. And from a chamber standpoint, we continue to hear many comments from our small and medium-sized businesses about how they might get around the Affordable Care Act and what creative changes that might occur or could occur in order to maybe opting out. And so I think when we think about policies and regulations at the government level, we probably think about, well, okay, does it really have to be done that way? Well, I think that goes through all of our minds when we file our taxes every year. How much into the gray area do we go before saying, well, we don't want to go any further because we might in fact actually get caught? Well, I think a lot of that has to do, I think a lot of that thinking is going to be a part of the Affordable Health Care Act. And so it's good to have some legal advice about what you can and can't do. And so Joshua is here to talk about that legal side of this new health care environment and what your businesses really should be thinking about when dealing with the HCA. And as a leader of Cox Smith's employee benefits, Arisa and tax practice groups, Josh assists clients with really difficult tax and employee benefit issues and challenges facing businesses today, including employee benefit plans, tax exempt organizations, and business tax planning. And he also helps clients understand the legal conundrums commonly encountered while helping, while dealing with the Internal Revenue Service and Arisa. And then also developing practical strategies about how to meet the obligations around those organizations. And additionally, and I'm very, really happy to say this because I've known Josh for some time. He's been named by best lawyers as a San Antonio Employee Benefits Law Lawyer of the Year in 2013. And I've had the good fortune to work with Josh in some non-for-profit organizations. And the thing that I really, truly am impressed about Josh on an ongoing basis is his ability to make the language understandable. And it's certainly you've heard a lot of language already today that might not be as understandable as you'd like it to be. And Josh has this talent for bringing it into sort of common vernacular that we either can understand enough to ask a question about or we truly do understand it. And that's a gift. And when I talk about interaction, be mindful, and Josh will tell you this as well, that this is an interactive session. I don't think Josh will have any problem with you raising your hand and asking a question at any time. Because if we're really truly going to benefit from his intelligence and his experience, then you should be prepared. And please do ask questions throughout the presentation. And so it's my, indeed my very sincere pleasure to welcome Josh to the microphone. So I would like to jump right in. But honestly, I have to do my disclaimers. As Joanne warned you, of course it has to be a very small print and hard to read because no good lawyer should give you anything unless it's got a good disc on it. And this disclaimer says, I'm not your lawyer today. I'm here in an educational capacity to help you with healthcare reform. But don't get me wrong, I would love to be your lawyer. So feel free to call me at any time. But for today, this is meant to be educational. Jeff's right. I love questions. If you ask me a question, it really helps me to articulate the issues and it shows me, you know, that probably somebody else in the room has the same question. So you're helping me. I'm the teacher in a formal life. So to me, questions are really the best educational tool out there. But most people don't like to ask questions in a public setting. That's okay. That's why I put it on a screen. You should.   But if you hear it and see it, something usually stays. The other caveat I have, as you can see that our colors at Copsmith are blue. Don't take that as meaning we're a blue state or a red state. Don't take any of my comments today to be anything other than trying to project what I think the law is. So if you feel like I'm being political one way or the other, I apologize. It's not intentional. Don't take it that way. However, if you buy me lunch or even better, if you buy me drinks, I would tell you about getting ready to face Bill and Lee. So on that note, I jump right in. And I'm going to kind of, I'm going to go with the flow on this one because that's how I want you guys to do it. Seriously, throw me any questions you want. If it's about health care reform, I'll probably answer it. If I can't, I'll send you an email in your court. If it's about any other law or anything else, I'll give my off the cuff response and we'll go get there. But seriously, ask me any questions you want, but I'm going to kind of just throw you in the left field because I was told this is compliance. And so I have to make you guys understand the compliance, the legal compliance of health care reform. So I'm going to totally leave health care reform behind and jump to what came in in 1974, the Employee Retirement and Income Security Act of 1974, which brought the new share of duties, the highest duties under the law, on every employer whose function is a group health plan. So wow, we've had these and you've been under them for a long time, but I'm going to tell you that if you follow Orissa's duties and you follow those legal standards that we know a lot about, we have a lot of case law on, we've had it for more than 30, 40 years now, but I'm almost 50. Let me tell you, that's a great body of knowledge and law for us to look to and help you comply with what Joanne absolutely said to you perfectly. We're on a road, but we've never been on this road before. So from a compliance side, that scares the, you know what happened, right? I like to sleep well at night, and I like my clients to sleep well at night. So I like to get into something that we all feel very comfortable with. And so in health care reform came, I had to make a lot of trips to my doctor. Over the anxiety and the worry that it was causing me. And I realized that everybody in this room is probably had a little bit of that anxiety and worry along the way. And so my recommendation is not to use medication, but to use Orissa. And how so? Orissa says this, generally, if you're prudent, if you're careful, you're loyal, and you're reasonable, most likely the law will protect you. Remember what I said? Orissa calls you a fiduciary. So if you're responsible for your adult plan, or any other risk plan, then you're already supposed to do these things. But I'll tell you, if you do them, it is going to help your lawyer defend you if anything goes wrong. Okay? And I said that because fiduciaries, by the way, in my mind, you have a big red target on your back. And as a target, why is that? Because you have the highest duty under the wall. What's a duty? You owe something to someone else. So don't only think about your duties, but think about who your duties belong to. And it is not you individually. It is not the company you work for. The czar is that you work for a company or an agent of that company, you have duties in that company, but fiduciary duties trump your agency duties to your employer. Fascinating to me, the lawyer. So I want you to focus that way as we get into it. And I'm not really going to spend a lot of time on my slides. And the reason why is what I've got for you is a chronological order. Let's start out here with what's in exchange. Again, you're going to get so much detail you already have from Joanna. She has a better job than I do. The breakout sessions are where you can really get into the mid-grade. So I'm going to save about 30,000 feet. And I'm going to go through all of the things chronologically that I want you to think about. And it's a bullet form, which makes my presentation fairly easy. Why? Because as a fiduciary, I don't think there's any possible way you can spend just three hours today listening to us and meet those duties. I think it's a process. I think it's a long, continually process that you do day in and day out. Right?  What's doing your homework? It's not my 11-year-old last night at 11.30 telling me he has 10 pages of things that he needs to do before his morning. It's getting the assignment. And we're giving it to you. It's been given to us. We know what the assignment is. And start now and take the first thing. Might want to start with something easy. Might want to start with something hard. But go through it and study it. And how do you study it? We heard the breakout sessions this afternoon. You're going to have the best experts in the land, might believe, give you, spoon feed you all the information for each one of these. Okay? So you're already on the black track. Congratulations. Everybody should pat themselves on the back because you're already doing the right thing and heading the right direction as a fiduciary. So what are the things that I want you to look around? You know what? I joined it. Did it perfectly. The marketplace is supposed to look like Travelocity. And the one question that you all have in your flip-open brochure that was put here, and it's right above my ugly mugshot, is if I have 50 employees or less, let's just make it really easy, 49 employees or less, does this apply to me? And I think Joanne and I are looking at you and say, what's this? What do you mean by that? But I thought, you know what, that's not going to do the work. I've been a lawyer before and it depends.  So I'm going to do Michael and Joshua Sutton said. And the answer is no. This does not apply to you, but this is the employer penalty and the employer shared responsibility, which we'll get into today. That one sliver of healthcare reform that is the penalty that will hit an employer. So you don't have to offer health insurance at all. And if you're truly under 50 and Joanne said it perfectly, you need to understand what 50 is and what ALE is and make sure that you really are not an ALE. So I'm assuming that you can truly tell me I've done the analysis. I worked with Joanne. She has proven to me, we've done her chart. We've done our AT&E, everything. I am not an ALE. And if you tell me that, I will tell you you are not subject to those penalties, the employer penalty, the sled chamber, the tax hammer, 49, 88, HD, whatever you want to call it. But that's just one sliver of healthcare reform. You still have to understand everything else about it because there are other parts that will apply to it. And by the way, I'm not one to believe in the ostrich method. The ostrich method is you stick your head in the sand and hope it goes away. On the opposite, even if you are under 50, my belief is no, you still need to study the entire thing. Why?  And if you don't understand it as you grow and go over 50, what happened? Or what about all those other slivers of healthcare reform, or mandates, or I could call chapters in the book. So no, I can answer that question like a bad lawyer and say the answer is no, it will not apply to you for that little mugshot question. But I would not get out of your cell phones. I wouldn't get out until we eat your breakfast now because I think you really want to hear and study and learn the rest of it. I think Joanna did a great job on that. If you guys have specific questions about the exchange, let me know. For most of us in this room, I believe I could be wrong, or employers who have health insurance. So it's really going to be your employees who are out there looking at the exchange. But as an employer, I would tell you, you better be very careful and you better understand the exchange. Here's why. Is unless you do what Joanna said, so here's your compliance tip. If you can show me that you as an employer have a group health plan that offers minimum essential coverage, it is minimum value, it is affordable, and you offer it to all full-time employees. That's what Joanna told you on her slides, just what you're going to get later this afternoon. If you can tell me that's your plan, none of your employees will be able to get subsidy in the exchange. But if you don't offer that, or even if you do, there is a ton of information that your employees and the federal government will need from you in order to get this test done. Whether they get a subsidy or not, whether you offer insurance or not, you are going to have to deal with the exchange. How? The first one is our notice. Joanna told you about it. I've got it somewhere on here. October 1st of this year, whether you offer insurance or not, and as long as you have two or more employees, the Fair Labor Standards Act says you need to send a notice out to your employees. Go look at that notice because if you have not, you are behind the evil. Because there's a lot of information that you need to put on that form that you can't just pick up out of thin air. You have to understand minimum value. You have to understand affordable because you don't pretend to know that.  How many people here who are responsible for a group health plan can tell me that they can go and pull the group health plan out right now and read the definition of eligibility? Give me a show of hands. You can pull your plan off that. A bit is for you. You're brave boy.  But doing it is even if some of you were going to raise your hand and it was a small number, that is a breach of your fiduciary duties. Why? Because one of my fiduciary duties is you've got to follow the plan document. Right? So I already pointed out to you that just by the fact that you need to do your notice, you now have a great question to take back to your HR team and to talk to who your fiduciaries are and say, where's the plan? And for you 50 and unders, you have it even worse. The health insurance companies are not motivated economically to help you in this compliance area. You're on your own. Your best bet are your worthlessness of the world. Your brokers who are motivated to help you get through this and comply.  Look, what's a fiduciary duty? Careful, reasonable proof to me going out from your little area of world and finding experts and asking them questions, getting their knowledge and bringing it back into your circle and studying it. Is there no better way to prove to me you're being a fiduciary? I'd say no. But don't jump to the lawyers. We also, another fiduciary duty is reasonable costs. I don't want you to go out and spend a million dollars to conform with health care reform. I would tell you to be bridging your fiduciary duty. But how much does it cost for you to pick up the phone and call Joanne and say, hey, what does this mean and why can you send me information on it? She listed for you at the end of her presentation some amazing resources. If you do not take this back to your HR department and make sure they have studied that, I think you have failed with the fiduciary duty. It's not that hard. It really isn't. It's not hard to ask a question, get the answer, and file it away. So here is, you can leave after this one right here. Document, document, document. I can see some faces in here, I'm sorry for the repetition. I apologize, but thank you. Document, document, document. What does that mean? It means you show me why you're doing it. You show me what you did to figure out why I'm doing it.  This is how great I am for doing it. Because that's what a fiduciary does, right? So what is it? I need to understand health care reform.  We must start asking questions. But it's in the interest of your participants. So the questions should not be coming from Joshua Sutton, shareholder of COPSFED. How much is this going to cost me at the end of the year? Now don't get me wrong, there's business to this, and I'm not saying you ignore the business side, but your first fiduciary duty is not to your pocket money. And it is not to your fellow shareholders. That's really hard for me as a lawyer knowing I was going to be my own shareholder. My duty is to plan participants. It's a fiduciary duty. Okay? So when you're asking those questions and when you're documenting, the questions should be, how am I going to offer health care reform to our participants, to our employees? And what is in the best interest of the employees when I do this? Now I know it's Pollyanna to say all decisions would be made that way, but I'd sure like to see you document it that way to start out. Now does these come into it? Absolutely. Do I want you to lie, cheat, or steal when you're documenting? Absolutely not. That defeats the purpose. So I'm not asking you to make it up, and I'm not asking you to do something that is wrong. I'm just saying, click down when you do it right. Document. Okay? Why? Because if I have to defend you in a lawsuit, or more likely, if I have to help you through an audit by HHS at your plan, or VOL, or IRS, all three would easily come in at any day and ask to see your plan document. So for all of you who did not raise your hand when I said where is your plan document, your real fear should be when the IRS sends you a letter and says I want to see all of these documents in my office within a week. And let me tell you that if you cannot produce everything perfectly, you're already on the wrong track.  First is a confiduciary, looks at an IRS, or a DOL, or an HHS audit and says bring it on.  That's how I want you to prepare for an IRS, EOL, HHS.  Easy. All right, so my timeline, you see I started in 2013, and it's really because I'm not going to worry about the past, we've been doing this through 2010. And if you need a timeline from 2010 up to today, you're really behind the A-ball. So the first thing you should do is again call your broker, but let me know and I can send you the bullets for everything after today. That what I want you to go back and do today are these things. And when you're in your breakout sessions today, it's what I want you focused on, even though a lot of it is going to be on the employer penalty, you need to do these things in preparation for the employer penalty. We lucked out, they gave us a whole year to deal with the taxes on employers who don't offer good enough coverage or don't offer it at all. That's the way I look at it.  Look what I call it. Now back to the employer share responsibility, the tax that will hit each employer, a non-deductible penalty each year if you don't offer sufficient coverage. Okay? And if you really offer junky junky or nothing at all, there's what we call a huge sledgehammer penalty. But everybody's out there calling you play or pay or pay or play. And I think that's a misnomer. Because I think you could pay or you could play and you would still hit the outside tax. But my point is, is that coming back to what I need you to do is that that's in 2015 now.  And by being here today, you're not. So congratulations. But I do need you to focus on these as well. Sorry, wrong words. There we go. My timeline. So starting out, you actually have until the end of 2014 to fix this new limit from healthcare reform on your cafeteria plan. So I'm actually off and I'm back over on cafeteria plans. But in healthcare reform, and healthcare reform is not just your group health plan. Even though this is a lot of other things. But for employers who sponsor plans, you need to go back and amend your cafeteria plan. So take this back to HR and say if we amended our flexible spending arrangement only, FSA, so that it's only $2,500 a month. Different plan, but that flexible spending arrangement should you have one is also subject to a risk. And therefore you're also a fiduciary over that plan. So now I go back instead of you just going back and say, can you show me where your group health plan is? The next question should be what? What's your cafeteria plan? Do we have one? So what does it say? I would say that every single one of you who are an employer and help employers who sponsor group health insurance, you have to have a group health plan. It participants pay for part of their premium. It's called the premium only plan, cafeteria plan. Okay, so everybody has to have at least that POP. But under that premium only plan, cafeteria plan, you can sponsor this flexible spending arrangement. And that's where that limit is. Okay, but if you don't know, if you can't tell me right now exactly what it is, that's one key that we need to ask you to pull out the plan document. Okay, we have a number of fees that are coming. PCORI just hit us in July. If you're not paying a PCORI fee, you need to tell me why. Okay, so go back and ask your group, are we paying a PCORI fee? And if so, how much where and why? And understand what that fee is. There are many fees in healthcare reform that are helping to pay for various aspects of this huge system. Okay, third, the exchange notice October 1st we talked about, then the exchange is open. And I talked about this 12 month measurement period. That to me, again, is going back to the penalties. The employer share responsibility penalties that we will be talking about. Your guys this afternoon are going to really educate you on how to count employees for that purpose of that tax. And in part of counting those employees and in part of understanding how you're going to implement your way of tracking those employees, right? You heard Joanne talking about variable employees, part-time employees, full-time, all of that is tracking and measurement periods. And if you can't show me all of your documentation on how you're doing it, then you to me have failed as a fiduciary. And honestly, what really worries me is you're not going to be able to defend when the notice comes from the exchange saying, we think you owe this employer penalty. Right? You're going to get a notice that all of a sudden says, oh, you have a thousand employees. Guess what? Your penalty is almost $2 million non-inductible. How are you going to pay for it? When you get that notice, what are you going to do? If you panic, we have failed. But if you say, hand this to HR, they tracked it, we're under a safe harbor. And if I use that safe harbor, I already documented exactly how to do it. And I can immediately respond back to that notice and say, this is why we do not offer that penalty at all. You exchange IRS, have good. And why do I know what they're going to do? They're going to do what? Why? It is so comfortable. Somebody said they want money. I don't know if I do that. I tend to agree with you, right? I tend to agree with like more dollars. But what I was going to say, although I think that's a good point, is it's so complicated. It is, you know, the inner chart that Joanna showed us of all the eight organizations, that all that I saw right there was actually up to, you know, I mean, to have eight different organizations have to feed into that exchange, back out up to individuals. These individuals will typically be lower income, lower socioeconomic. I don't think people in this room will be going to the exchange. That is not a comment politically, but just think about it. And so because of that, out of this chaos, you will most likely get a notice is wrong in my image. Which is why I'm telling my clients, let's be right here for you. And if I understand the safe waters that you guys are going to teach you this afternoon, and I implement them now, I'm a year ahead. What a great fiduciary. A head, a year ahead. You guys are already thinking about the measurement periods, how this tax is going to impact you, how you're going to react to it, and how you're going to protect the employees, right? It's a penalty that hits the employer. But I don't want you thinking about this is just to avoid a penalty for tax purposes. I know that's the reality. But when you're documenting for me, you're saying we're doing this to make sure we run the most efficient, reasonable fees, carefully run, administered, provenly run in an administered point. You can see, I guess that nausea would be able to apologize if I tried. But I see a dirt of people doing what they're supposed to be doing, when it relates to the group health plans. Now it used to be that all I did was pension work. VSOPs, 401k plans. Have you noticed that the Congress has not been focused on our pension plans much lately? Where is all the shifts going to? Healthcare reform. So that's why all of a sudden my pension clients are on the back burner. I don't have any plan amendments. Those have been running smooth for a while. We sell out our issues. We don't go get it wrong. But I'm really, I'm not focused on anything much. I'm focused on the welfare plan. And I have been my whole career. And the reason why is we were always the stepchild in the benefits world that we care about the welfare plan. Why? We have a money pocket of money like the pension plan, right? Your 401k plan can have millions of dollars sitting in that trust. People react when they see millions of dollars. And their fiduciary duties are up the wazoo because they see that pot of money. Nobody sees that with welfare plans. So my belief is that 99.99% of the welfare plans ensured or self-insured are absolutely out of compliance.  There's my pledge to you. And I will be honored. I will not bill you a single dollar. I will come to your facility and I'll let you walk through the whole thing. And if I can't poke one hole, a nice, and I'll let you buy that Japanese steak. Right? Now, for you to do that, that's really the goal I want you to be able to do. I would go out for something to take me up on that challenge. And honestly, I'd love for them to beat me. But as you can tell, I don't think any one of you in this room can do it. So I've laid out the gauntlet.  Okay. I'm now to 2014. And look at all the things that hit us in 2014. Okay? So I start up here, your annual limits are prohibited. So go back, make sure you're playing as absolutely no annual limits. What's that? You can only pay for major medical coverage up to $1 million a year. Gone. $100,000 a year for this benefit only. Gone. Okay? We used to have lifetime limits. Those have been gone since 2010. Thank you. But for something, we got some waivers, but for most of us, they're gone. So go look at your plan. What a great way for you to document that you are being a good fiduciary in the best interest of participants. Thank you. Right? What are you going to do? You're going to go, you're going to read your plan document thing. There's one fiduciary thing. Two, you're going to look at it and say, we do annual limits. This is bad for employees. The best interest is employees. What is the law? We're pulling it out and make sure we pull it out. Now, my hope is it's not there. It's easy. It takes you 10, 15 minutes. But then what are you going to do? You're going to go document it. Whoever said that, I haven't followed it. Okay? So just a great example of how each one of these can be used very quickly, very efficiently, very easily for me to defend you against anyone, individual or government. Cost-sharing limitations. This is a huge one we're going to see, but you can only charge participants so much, deductibles, copays, and all that stuff. Make sure you understand this. This is huge and it is very complicated. 90-day waiting period, Joanne, you got you. The exchanges come up. Pre-existing condition exclusions go away. We've already been gone for the youngers, but now all of us will no longer have to worry about the excluded recovery for pre-existing conditions, whether it's employer plan, exchange plan, any other governmental plan. Okay? And this is fascinating to me. See, I always broke things up into ERISA, to think most of you are, and not ERISA, church funding, my governmental entities. Help your reform blind to governmental church distinction, and you guys. Help your reform hits the governmentals, it hits the churches. Fascinated from a legal perspective. Wonderful. Here now, I can only, my governmentals would always have some kind of ERISA language to their plan, and I'd scream at them, how dare you? Why would somebody who's not subject to ERISA pull it in and give people the argument that you are covered? Get that out. Now, I have to go back and invest all of it in reform plans. Why? Healthcare reform ripped the claims procedures out of ERISA and stuck it on all my governmental and churches. So now, in my legal world, it blows me away. Actually, governmentals and churches are subject to these years of law. Sorry, ERISA, I love it, but it's fascinating to me. You need to be aware of it. Re-insurance fees, here we get more fees, these are expensive, the individual mandate comes in, so if you're not getting coverage, Joanne hit this well, there's a tax. Non-discrimination. There are now lawsuits, hit me with five minutes well whenever you see me.  You're discriminated against me because of a healthcare factor. Every one of you are now subject to a whole new area of plagiarist litigation. Now, the only one I've seen so far is the organization now has sued certain plans that do not provide for pregnancy. Makes sense for me, right? There's a clear discrimination against women and it hasn't resolved itself yet, but it's fascinating. So be aware of that. Okay, these HIPAA electronic rules, absolutely nobody knows about them and it's something that I would want you to go look at and research. We actually had to be up to a certain level last year, this is the second round, there will be a third and fourth round over the years. Go figure out HIPAA and not just HIPAA electronic operating rules, what you will really find is high tech and our privacy security breach notification rule and if you do not understand HIPAA as it relates to your group health plan, you got a lot of homework to do and get going. In September 23rd, you need to be completely compliant with the final Omnibus rule. Yes ma'am? I have a question. Thank you. Thank you. Thank you. I'll explain it later. I'm coming. Yes ma'am? I'm an HR and I'm already dishing out the exchange notice to our new hires, which I didn't feel was a bad thing to do. But I have a creative acknowledgement for and instead of providing them with a copy of our thick plan, I say that it's going to be an HR or on a web page or somewhere where they can go and view it. Is that going to be okay? Good, you've opened up a whole Pandora's box of notice requirements. Let me try to answer yours, but this is great. This woman has just given you another home fiduciary issue that you need to think about. Do not blame the messenger. She's only trying to help us. By answer to you, I think is, I'm not, I think you're saying the plan document that you, instead of giving a plan document, you have decided the acknowledgement with the notice and say if you want the plan, come and inspect it in our office. I think that's fine. So long as you meet the SPD, this is ERISA, requirements for the disclosure. And I would tell you that as long as you gave the STD for free on new hire, that you promptly are okay. I want you to do more facts from them and really, you know, flush it out. But you don't need me. Go back and breathe, go back and think through, ask your brothers, ask your Google searches. And why do people come to me? So I think I'm going to try to answer your question. I think you're okay. I would prefer that you not letter that consent to individuals. I love getting signatures and acknowledgments. I haven't consents getting electronically. Because you're already going to that work. You can have a consent and say, yeah, you can send it to me electronically. And you can tell them if they want it, mark out me, they can request it. But by doing that, then you can just email it out or put it on an internet. Now people don't have access to a computer. We got to probably get it to them physically. I prefer that, because I know it works. Hey, there's my five. Let me really hit you with the big stuff. You guys can do your homework. My job is just to give you the assignment. I know you all hated your teachers. But if really, we're trying to help you. But if we do the work, you don't learn it, right? The best teachers are the ones that get their students to become teachers. That's what I'm hoping I do for you today. I want all of you by the end of today to begin the education so that eventually you will be able to teach this. Okay, look that up. You'll get a plethora of knowledge. Okay, we'll have reporting issues. This will fall on you. You'll need to help with it. So you've got another tax return and then the employer mandate. You guys will get plenty of that. This is my cost sharing slide. By the way, if you want this, just let me know and we'll get it to you. Still on my timeline, or sorry, the cost sharing. This is my pay or play. So I give it to you. Listen to the experts this afternoon. Joanna does a great job. They're going to get you more. After that, come let me know. Here are the other things I want you focused on. Is it relates to your group health plan? Why do people come by me? And when they usually call me, I'll usually stop and tell them what I told you. But that is you from your home. If you've gone and researched this, you've got to a point where you're stuck. Don't come to me and tell you're stuck.  There is no ultimate way through the fiduciary is reasonable rather than having an outside professional get it through. And lawyers get the benefit of privilege and confidentiality and we also get the legal requirements under the internal revenue code to get you out of penalties. So I'm sorry that we have an elitist system, but I joined it. And so it's helpful to me. I'm not saying you need to hire lawyers, okay? It's that if you do your job so well, you may not need to hire me. But when you're on that road and it's the first time that we're going down a path, you're going to have to make guesses. And if the guess is big enough, like a $2 million non-inductible penalty, I have a lot of people come in and say, Josh, what do you think? And we go into a dialogue. And my clients, you're getting what my clients get. I walk through with them and we talk about what is the law, but what is the most practical way we get through this? Because if you're spending too much on me, I have failed you as a fiduciator. You're spending too much time with your CPA. Same thing.  But now I really get it. Practical advice for the real world. It's very easy for me to get in a lecture and be at the ivory tower, but I found when I did that, people went to sleep and I was not being effective. And as a teacher, before my life, what gives me the greatest success in my own personal feeling is to know that I've sent you out and you now have a better understanding. You know what your path is, and you can go get that kind of stuff. So I really believe that that's why I try to get you guys stuff that is practical. Now you go do it. And when you get to the point where you feel like you really got it, and if you want me to come help you through it, I would be honored to do so. All right. Any last questions before they kick me out? Wow, guys. I really must have talked way, way too much and too fast. I'm not sure if that's a good sign. I think it is. Politically or not, I want to believe that we're in a world where there are a lot of people in our city, in our state, in our country, who are not getting adequate medical coverage. Okay, so whatever your belief is politically, I'm trying to appeal to both the left and the right. I believe that we failed society if we are not giving the basic fundamental right of decent health coverage. Okay. And the reason why I say that is I'm trying to argue both ways politically is that I look at my only beautiful children. No matter what happens to me, I have so many beautiful children. And I look at my kids and I've been getting blessed that I am able to provide them with a lot of people struggling in this country. And we owe it to their children to get them off that. So thanks, guys. I appreciate it, Japanese. Thanks, guys. Well, excellent as always. And, you know, if I had to take just two words away from Josh's presentation, it would be obviously knowledge and discipline. And that's knowledge of everything that you really need to know about the Health Care Act and then discipline to follow through virtually everything that you need to follow through on to make sure you're safe.


All right, our next question comes from Gary, a Bitcoin key metrics. Hey, aside from the interesting graphs, is there a specific purpose for including these metrics, particularly price in the course material? And just for reference, what Gary is talking about is the slide that includes the total bitcoins in circulation, the major cryptographic currencies and their names, prices, capitalization, and the overall capitalization of the Bitcoin market value, as well as the networking hashing power path. Yeah, there is a point beyond these being interesting graphs, and that's to see how certain metrics may or may not correlate with each other. So looking at, for example, hash power and then comparing that to prices is very interesting, because of course, hash power is influenced by price because it changes the economics of mining. Given that miners spend their reward to pay for electricity, and the electricity is paid for in their local currency and therefore needs to be exchanged for their local fiat currency, their dynamic economy, the economics of mining, is heavily influenced by price. Also, it's important to understand that it's not just Bitcoin, of course. There are many different cryptocurrencies and they all play different roles and have different prices and capitalization. So yeah, that's why those charts are in there. George asks, the BTC hash rate dropped 36% between the 23rd and 24th of September. How do you interpret this drop and which can be the reasons behind it? Well, first of all, it's actually very difficult to measure the hash rate over short periods of time. Some of these drops may be due to widespread electrical problems in a region where there are a lot of miners. Some could be due to various other geopolitical reasons and things like that. In this particular case, I think we found out shortly thereafter that a warehouse with over $100 million worth of equipment burned down, and as a result that hash power went offline. It was quickly replaced, and most of that recovered almost immediately because the rate of growth exceeds that quite substantially. So I think that might be one explanation. But one of the beauties of having anonymous miners that we don't know where they are and who they are, is that when you observe these things from the outside, it's difficult to pinpoint the exact cause. That actually means the counter to that, of course, is that if you don't know who the miners are, you can't coerce them, or governments can't coerce them to make them do something or not do something. So that's an advantage. These two kind of balance each other out. Eric asks, I understand that the exchange rate between Bitcoin and Fiat, or really any cryptocurrency in Fiat, is determined presently by the forces of supply and demand. However, what was the initial criteria to determine the ask price of USD in BTC terms? Well, the initial criteria to determine the ask price for USD and BTC terms was again by the forces of supply and demand. So in the first exchange that allowed people to exchange Bitcoin and Fiat, someone would have to go there and offer Bitcoin for sale and ask for a specific amount of Fiat by placing a sell order. And someone else would have had to go and place a buy order and ask for a specific amount of Bitcoin in exchange for Fiat at a specific price. And as various orders got closer and closer together between the ask and bid prices, at some point they reach equilibrium and somebody says, yes, I'll make that order. And the engine that runs the exchange does the order matching where it finds two orders where the buyer and seller agree on price. So basically the initial criteria to determine the price of any asset, but also, of course, Bitcoin in terms of any currency, were also supply and demand. You need an open market. Now, because this was an exchange between crypto and Fiat on an exchange system, that set the initial price for crypto in terms of Fiat. The first commercial transaction that we know of was in fact the famous pizza bought by Laszlo Hanyak back in 2010. And that is celebrated as a Bitcoin pizza day. And if you know that story, Laszlo paid 10,000 Bitcoin for two domino pizzas to be shipped to his house. So that established a value in terms of a real commercial transaction for actual goods, rather than simply exchanging one currency to another. So one is an exchange rate, the other one is a price, which is slightly different from an economics perspective.


Infrared, Infrared radiation IR is electromagnetic radiation EMR with longer wave lengths than those of visible light, and is therefore generally invisible to the human eye although IR at wave lengths up to 1050 Nm from specially pulsed lasers can be seen by humans under certain conditions. It is sometimes called Infrared light. IR wave lengths extend from the nominal red edge of the visible spectrum at 700 Nm frequency 430 ThZ to 1mm 300 GHz. Most of the thermal radiation emitted by objects near room temperature is Infrared. Like all EMR, IR carries radiant energy and behaves both like a wave and like its quantum particle, the photon. Infrared was discovered in 1800 by astronomer Sir William Herschel, who discovered a type of invisible radiation in the spectrum lower in energy than red light, by means of its effect on a thermometer. Slightly more than half of the total energy from the sun was eventually found to arrive on Earth in the form of Infrared. The balance between absorbed and emitted infrared radiation has a critical effect on Earth's climate. Infrared radiation is emitted or absorbed by molecules then they change their rotational vibrational movements. It excites vibrational modes in a molecule through a change in the dipole moment, making it a useful frequency range for study of these energy states for molecules of the proper symmetry. Infrared spectroscopy examines absorption and transmission of photons in the infrared range. Infrared radiation is used in industrial, scientific, military, law enforcement, and medical applications. Night vision devices using active near-infrared illumination allow people or animals to be observed without the observer being detected. Infrared astronomy uses sensor-equipped telescopes to penetrate dust origins of space such as molecular clouds, detect objects such as planets, and to view highly red-shifted objects from the early days of the universe. Infrared thermal imaging cameras are used to detect heat loss in insulated systems, to observe changing blood flow in the skin, and to detect overheating of electrical apparatus. Active uses for military and civilian applications include target acquisition, surveillance, night vision, homing, and tracking. Humans at normal body temperature radiate chiefly at wave lengths around 10 meter micrometers. Non-military uses include thermal efficiency analysis, environmental monitoring, industrial facility inspections, detection of grow ops, remote temperature sensing, short-range wireless communication, spectroscopy, and weather forecasting.