Insurance Newsletter

1. Wellness Program: With the rising costs of health care, both employers and employees can take responsibility for their own health by participating in a wellness plan.

2. Company Discounts: Although often overlooked, employee discount programs can be a very popular benefit to staff. This gives employees the chance to buy brand-name products or services at a discount.
3. Education Plan: Today’s work force requires lifelong learning to keep pace with the changing demands of employment. You can consider varying levels of support, from paying the full tuition costs of an MBA program to a partial reimbursement or contribution to the cost of a community college course.

4. Commuter or Parking Benefits: Depending on employee commuting needs, you can consider covering the cost of a monthly city transit pass or paying an amount of pre-tax payroll dollars for vehicle parking.



Cafeteria plans create a great opportunity for employers to enhance the benefits package they offer their employees.  In addition, they offer tax saving advantages for both the employer and employee.  Employees' pretax contributions are not subject to federal, state, or social security taxes. Employers save on the employer portion of FICA, FUTA, SUTA, and workers' compensation insurance premiums. Both parties save on taxes and therefore increase their spendable income. (The rules that define “taxable wages” may vary by state.)




Cafeteria plans include Health Savings Account (HSA), Premium Only Plans, and Flexible Spending Arrangements.  Below are brief explanations of cafeteria plan options. 

Health Savings Accounts are available for individuals on certain high deductible health plans.  These accounts are funded by the employee or by the employer.  Similar to the FSA, Health Savings Account funds can be used to pay for certain medical expenses for eligible individuals and their spouses and/or tax dependents. 

The Premium Only Plan is an option that was created in an effort to make benefit programs more affordable for employees.  Under a Premium Only Plan, an employee may choose to pay for qualified benefit premiums with pre-tax dollars.  The qualified premiums (if offered by the employer) include:
   

• Health
• Accident
• Dental
• Vision
• Prescription
• Cancer
• Hospital indemnity
• Medicare supplement
• Disability (although not recommended)
• Employee group term life (up to $50,000)

A Flexible Spending Arrangement (FSA), commonly known as a flexible spending account, allows an employee to set aside a portion of his or her earnings to pay for qualified expenses.  Qualified expenses can include medical and dependent care costs.  Two common types of FSAs include the Medical FSA and the Dependent Care FSA:

• Medical FSA:  used to pay for medical expenses not paid for by insurance.  This typically includes deductibles, copayments, and coinsurance for the employee’s health plan, but it may also include expenses not covered by the health plan, such as dental and vision expenses. 
  
• Dependent Care FSA: can be established to pay dependent care expenses you incur while at work.  This includes child care for children under the age of 13 as well as adult day care for senior citizen dependents, such as parents.  

Beginning in July of 2010, employees with health problems  who have been uninsured for 6 months may be eligible to obtain coverage through a new high risk pool program. A temporary reinsurance program will help employers who provide coverage to their retirees in maintaining this coverage.

Beginning in plan years on or after September 23, 2010, pre-existing condition exclusions are prohibited for children under 19; dependents up to age 26 will be able to obtain coverage through parents’ health plans; routine preventive care will be covered without cost-sharing; and limits on lifetime coverage will be eliminated along with other changes.

In 2014 individuals and small businesses will be able to purchase coverage through state-based exchanges regardless of health status.  Premiums cannot vary because of health status. Individuals will be required to purchase health insurance or pay a penalty. Subsidies will be available on a sliding scale to help individuals or families with incomes up to 400 percent of the federal poverty level to purchase insurance through new state-based exchanges.




While some health care payers may look to consolidate assets and begin planning for market exits, other private and public payers will look to try out new payment systems, reduce administrative costs, and pilot new strategies to improve the health of populations while lowering the cost of care. Enterprising providers will find partners and strategies that create and capture value and will assume more accountability for outcomes than ever before.

Included in this landscape of change will be the reaction of employers in handling insurance for their employees.  One of the largest adjustments with PPACA* will be the nationwide pressure for employer-sponsored coverage.  Both small and large businesses will approach employer-based insurance differently now. 

Here are some basic elements from the health care reform that every business should know:

• It is important to note that the law does not require employers to provide health insurance coverage. 
• The law considers employees working more than 30 hours to be full-time employees in regards to providing insurance. 
• If an employee of a non or insufficient insurance providing employer obtains insurance through a state insurance exchange and receives a premium credit, the employer will be fined.
• New employees of companies with more than 200 employees must be automatically enrolled into the employer sponsored plan within 90 days of hire.
• Fines for employers can be larger for employers that provide “unaffordable” coverage than those who simply provide no coverage.
• The summation of hours that part-time employees work will be calculated into the formula evaluating business size.

*PPACA is the Patient Protection and Affordable Care Act, signed into law on March 23, 2010.

 

 

Ergonomics is the science of designing the job, equipment, and workplace to fit the worker. Proper ergonomic design can prevent repetitive strain injuries, which can develop over time and can lead to long-term disability. Here are some important tips to keep in mind:

• The top of the computer monitor should be at or just below eye level
• Head and neck should be balanced and in-line with torso
• Shoulders should be relaxed
• Elbows should be close to the body and supported
• Lower back should be supported
• Wrists and hands should be in-line with forearms
• There should be adequate room for the keyboard and mouse
• Feet should be flat on the floor

Source:  www.osha.gov

Group presentations and individual consultations can be one of the most effective ways to communicate.  Open conversation engages employees and allows them to ask questions relevant to their needs. 

Customized Employee Benefits Website
Benefits manuals can easily be lost or misplaced.  Offering employee benefit information online allows employees to quickly get answers to their questions.

Benefits-at-a-Glance Summary Sheets
Lengthy manuals can be overwhelming to an employee trying to understand offered benefits.  A “frequently-asked questions” sheet with concise answers can save employees unnecessary frustration.

Employee Newsletters
An employee newsletter with articles reviewing benefits, addressing questions, or announcing changes will remind employees of what is being provided.

*Source:  www.humana.com

We all know the holidays often come with feelings of stress given the high expectations for the season.  Here are some helpful hints to keep your employees productive and healthy throughout the holidays:

Set Work Expectations:  Set clear and reasonable goals with your employees as to what work should be completed prior to holiday time off.  Encourage time management in daily tasks to manage the workload.

Encourage Physical Activity:  Create incentives to maintain your wellness program throughout the season.  Post healthy holiday tips, like drinking plenty of water and exercising regularly.
Communicate Holiday Pay:  If a holiday bonus is not in the budget this year, be sure to let your employees know so that they can budget their holiday expenses.  Communicate paid holidays so employees can schedule time off accordingly.




Create a Harassment-Free Workplace

Harassment and discrimination can cause disruption in the workplace, lower employee morale, and could even result in a costly lawsuit.

The US Supreme Court has held that employers can be found liable for harassment and discrimination claims, even if the employer wasn’t directly aware that harassment and discrimination were occurring in the workplace. 

Harassment can include any verbal, written, or physical act that makes employees uncomfortable at work or interferes with their ability to perform their jobs. It can include jokes, emails, cartoons, drawings or other material that is suggestive or reflects negatively on a protected class. It can include slurs or offensive language.

As an employer, you can be held accountable for all forms of unlawful discrimination and harassment, so it pays to have a proactive policy to protect your business and your employees. Here are some ways you can begin to address the issue:

• Create a harassment and discrimination prevention policy:  Make sure employees know that you will not tolerate harassment or discrimination. Distributing a formal written policy outlining your commitment to a harassment and discrimination-free workplace is a good way to start.  Make sure you and
your managers demonstrate that you believe the policy
is important.

• Outline steps employees should take: Your policy should also include a reporting procedure for employees who feel they are being harassed or discriminated against. It is important to make sure the method is clear, easily accessible, and confidential.


• Conduct a thorough investigation: An immediate investigation is imperative to protecting your employees and business.  Once a complaint has been submitted, an objective and confidential investigation should be completed.  Retaliation should not be tolerated.  If it is determined that unlawful harassment has taken place, disciplinary action commensurate with the severity of the offense should be taken.

Are your employees contributing to their retirement fund?

Have your employees continued to contribute to a retirement savings plan despite the recession? If so, they are not alone. In the second quarter, more workers contributed to their retirement plan than reduced their contribution, according to a Fidelity Investments study. This is compared to the previous three quarters. In fact, the average account is up 13.5 percent from the first quarter due to the stock market rally and contributions.

Workers in their 30s and 40s continue to save and have a higher percentage of contribution in workplace plans than workers in their 20s – even though those in their 20s stand to benefit tremendously by investing early.

Tips for employees saving for retirement:

• Start saving early in your career
• Make wise investments
• Look beyond immediate gratification
• Save, even if it’s a small amount
• Use banks for your emergency funds

Will this flu season affect your business?

The coming flu season will likely include the H1N1 flu, which the World Health Organization has declared a global pandemic. They estimate that one-third of the world will be infected with H1N1 within the next two years. While it is hard to predict the severity of this flu strain, recent reports suggest
H1N1 will affect about 50% of Americans.

If your employees get the flu, have a plan in place for operating with a reduced workforce. Also take measures to prevent the spread of the flu among your employees. Consider being more flexible, such as not requiring written proof of illness and allowing telecommuting. Also, provide additional cross-training among employees, and recommend they get flu shots for the H1N1 and seasonal flu. Keeping workplaces as clean as possible can help in avoiding contamination. The flu can spread quickly, and a person infected with the virus can be contagious before any symptoms are noticed. If your employees show signs of flu symptoms, don’t hesitate to send them home.

Publicize these everyday prevention steps at work

• Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
• Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.
• Avoid touching your eyes, nose or mouth to prevent spreading germs.
• Try to avoid close contact with sick people.

If you are sick with a flu-like illness:

• Stay home for at least 24 hours after your fever is gone, except to get medical care.

Is Your Wellness Program in Compliance?

With wellness programs increasing in popularity in the workforce, it is important that employers ensure their programs are in compliance with federal regulations. There are multiple laws impacting wellness programs, depending on the type of plan you implement (e.g. voluntary or mandatory; participation-based or goal-based incentives). Appropriate incentives for wellness programs can include:

• Reimbursement for the cost of a gym membership
• Rewards for attending a monthly health education seminar
• Cash incentives for participating in a cholesterol or blood screening
• Reimbursement for weight loss or smoking cessation programs

Make sure your plan is non-discriminatory. In particular, goal-based plans have several requirements for compliance, including providing eligible employees with an opportunity to qualify for incentives at least annually, and offering an alternative to employees whose circumstances would make participation difficult. Wellness programs encourage your workforce to stay healthy, which ultimately will keep your healthcare costs down. It is advisable, however, to work with legal counsel when designing a wellness program due to the compliance requirements and the variations in program design.




Keeping Employees Happy
While Tightening the Benefits Budget



Within any business, the Human Resources (HR) department faces unique challenges during trying economic times. The benefits budget may be cut in order to help overall company finances leaving HR tasked to motivate employees who feel the squeeze of any cuts.

What can an HR department do when faced with such a challenge? Consider the following ideas for containing benefits costs and easing the additional financial burdens today’s employees face.

• Offer qualified transportation benefits. Commuting costs are becoming more burdensome for many employees. You can offer qualified transportation benefits at little cost to your company through a reimbursement arrangement funded with employee pre-tax dollars. Qualified transportation benefits can include transit passes, qualified parking, and rides to and from work in a commuter highway vehicle (also known as vanpooling). This type of arrangement can save employees money on federal, Social Security, and (in most cases) state taxes, making it less expensive for them to commute to work.

• Consider implementing flexible work schedules, if this is an option for your type of business. For example, consider four 10-hour work days per week. This saves the business on energy costs and employees on transportation costs. Plus, many employees will appreciate the additional free day, whether it gives them a three-day weekend or a day during the week for running errands or relaxing.

• Add voluntary benefits to your benefits package, or expand the voluntary benefits choices you currently offer. Voluntary benefits are paid in full by the employees who choose to enroll. They offer advantages to employees over purchasing these benefits in the open market: Employees typically enjoy some savings and convenience, since they are purchasing the benefits at a group rate and paying for them via payroll deduction.

• Coverage summary for employees. Surprisingly, many employees don’t realize the extent to which their employers are paying for these benefits; they only know their own out-of-pocket costs. A brief, to the point “Capsule of Your Benefits” can summarize coverage for employees, and include the price tag being shouldered by the employer.

HIPAA changes: What you need to know

The recent stimulus package will affect many aspects of the healthcare system. One area where you will see significant changes is in regard to HIPAA, or the “Health Insurance Portability and Accountability Act.” Some of the key changes include:

• Certain privacy rules will apply directly to covered business associates.
• New security breach rules will require notification to each affected individual in certain instances.
• Some HIPAA-related penalties have increased.
• Changes will be needed to HIPAA forms to comply with new regulations.

The Department of Health and Human Services (HHS) is expected to provide additional clarification on many changes. We will be watching carefully as additional information is made available. We recommend business associates and covered entities contact us to review these changes carefully.