SOURCE: Novus Acquisition & Development Corp

Novus Acquisition & Development Corp

June 06, 2017 09:34 ET

Novus Strengthens its Position as Many Major Insurers Exit ACA Marketplace

MIAMI, FL--(Marketwired - Jun 6, 2017) -   Novus Acquisition and Development Corp. (OTC PINK: NDEV), the nation's first healthcare insurance carrier/aggregator in the medical cannabis sector, announced today its new benefit plan, Cannabis Health Savings Account ("CHSA") to its insurance arsenal.

NOVUS
Health |Life | Liability

Many of the nation's major health insurers are exiting the healthcare.gov market place, known as ("InsurExit"). It is nothing short of chaos, and for the Novus MedPlan it's a great time, because in the midst of this chaos there is opportunity. For example:

The Certainty of Chaos
Federal lawmakers from both sides of the aisle will never be happy on healthcare regulation. With the Senate being two votes away from continuing this quagmire for months to come, one thing is certain: with major insurers such as Aetna and Humana continuing their InsurExit from many states, this leaves tens of millions of Americans with little or no coverage at all this coming November.

The Certainty of Opportunity
At Novus after months of careful review on the uncertainty of healthcare we've come to the conclusion that in Washington it's about controlling the budget, whether it's called Affordable Care Act (ACA) or American Healthcare Act (AHCA). One thing is certain: all signs point from a repeal and replace to a reform, packaged under a different name. The opportunity is inherent, with many Americans with little or no healthcare benefits; the Novus MedPlan will step in and fill the gap to bridge consumers and small business employers with tailored healthcare packages that are affordable.

Novus Target Audience
Currently, the casualty rate of the InsurExit is approximately three million enrollees. Those who wait until they are sick or let policies lapse to purchase coverage will incur an extra 30 percent increase of premiums, weighing a hefty price to an already expensive healthcare environment. How does Novus contribute to the lowering healthcare cost with their cannabis medplan packages?

Unveiling Of Cannabis Health Savings Account
As we develop our cannabis health insurance infrastructure, one area of expansion is a tax-free Cannabis Health Savings Account (CHSA). Coined from the Health Savings Account "HSA" is a tax-advantaged medical savings program where the taxpayer(s) who is enrolled in a high-deductible health plan (HDHP) will get relief from first dollar expenses. Consumers contribute funds through their employer to an account that can be applied towards special medical needs that are covered by the Novus MedPlan.

This will be particularly advantageous to the American worker adding $2,750 to $13,000 to the wages of a typical worker with individual or family coverage, respectively. Congress is considering its own HSA plan, Sen. Jeff Flake (R-AZ) and Rep. Dave Brat (R-VA) have introduced legislation to create government sponsored HSA. However with our experience, the legal cannabis medical users would prefer the private market to handle such a task rather than the government.

Novus HSA Helps The Insured With High Deductibles
Employers can place an employee that has a high deductible in CHSA, since Novus is approved for sale of annuities this would comply as long as it's institutional. Some other reasons why Novus is implementing CHSA:

  • Advantageous if the primary income generator succumbs to catastrophic situation(s),
  • Maximum out-of-pocket expense can be less than that of a traditional health plan,
  • CHSA gives flexibility not available in some traditional health plans, which may include dental, orthodontic, vision, and other approved expenses, which Novus has currently established,
  • Novus CHSA is rolled over for future medical expenses or may be used to reimburse qualified expenses,
  • Provides discount and/or first-dollar coverage for preventive care such as cannabis meds and other in network healthcare services.

In Closing
Since it was proposed during the Reagan Bush Administration HSA's have witnessed steady growth. With Novus tailored benefit packages targeting cannabis and the needs of healthcare for the consumer, this provides an attractive, savings option for Americans who want their healthcare more affordable. The CHSA plan will be geared to 20 million lives covered, and continued enrollment with the proposal of new healthcare reform, which Novus will continually monitor for new opportunities.

References And Third Party Research:

http://kff.org/health-reform/issue-brief/preliminary-data-on-insurer-exits-and-entrants-in-2017-affordable-care-act-marketplaces/

https://www.ahip.org/wp-content/uploads/2017/02/2016_HSASurvey_Draft_2.14.17.pdf

About Novus
Novus Acquisition & Development Corp. (OTC PINK: NDEV), through its subsidiary WCIG Insurance, provides health insurance and related insurance solutions within the wellness and medical marijuana industries in states where legal programs exist. Novus has positioned itself to gain market share within many lines of insurance business within and outside of the MMJ sector.

Novus will work as outside developers and will not cultivate, handle, transport grow, extract, dispense, put up for sale, put on the market, vend, deliver, supply, circulate, or trade cannabis or any substances that violate the United States law or the Controlled Substances Act, nor does it intend to do so in the future and will continue to follow state and federal laws. The statements made about specific products have not been evaluated by the United States Food and Drug Administration (FDA) and are not intended to diagnose, treat, cure or prevent disease. All information provided on these press releases or any information contained on or in any product label or packaging is for informational purposes only and is not intended as a substitute for advice from your physician or other health care professional. Once a push notification is competed the transaction is solely between the state-licensed dispensary and the registered patient. The information provided in this press release is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state and all plans proposed or implemented can be changed or modified according to compliance issues by Novus' management.

The state laws are in conflict with the federal Controlled Substances Act. The current administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state designated laws, allowing the use and distribution of medical marijuana. However, there is no guarantee that the current administration, nor any future administration, will not change this policy and decide to enforce the federal laws strongly. Any such change in the federal government's enforcement of current federal laws could cause significant financial changes to Novus Medical Group. While we do not intend to harvest, distribute or sell cannabis or cannabis related products, we may be harmed by a change in enforcement by federal or state governments.

Forward-Looking Statements
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. Novus Medical Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Corporate:
    Novus Acquisition & Development Corp.
    Chairman and CEO
    Frank Labrozzi
    frank@ndev.biz
    855-228-7355

    Investors:
    Hayden IR
    hart@haydenir.com
    917-658-7878