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How New Transparency Regulations Are Shaping Health Plan Costs in 2025

eliezer@zupnickassociates.com (Eliezer Zupnick) — Tue, 28 Jan 2025 13:19:10 GMT

The healthcare industry in 2025 is undergoing a seismic shift, driven by new transparency regulations aimed at demystifying health plan costs. These regulations promise to empower employers and employees alike, promoting informed decision-making and potentially reducing overall healthcare expenses. But what does this mean for businesses, and how can they adapt to this evolving landscape?
The Push for Transparency

In recent years, the rising cost of healthcare has prompted both consumers and policymakers to demand greater clarity in health plan pricing. Enter the new transparency regulations—policies designed to ensure that insurers and providers disclose detailed pricing information. From upfront cost estimates for medical procedures to detailed breakdowns of premiums, these measures aim to provide a clearer picture of where healthcare dollars go.

Key Features of the 2025 Transparency Regulations

1. Real-Time Cost Estimation Tools: Health plans must now offer tools that provide real-time estimates for out-of-pocket costs. Employees can check the cost of services like MRIs or surgeries before committing, enabling them to make cost-effective choices.

2. Mandatory Price Disclosures: Insurers are required to publicly share negotiated rates for in-network providers and allowed amounts for out-of-network care. This information fosters competition among providers and insurers, which may drive prices down.

3. Enhanced Employer Reporting: Employers sponsoring group health plans must receive detailed reports on claims and utilization trends. These insights help businesses identify cost-saving opportunities and negotiate better terms with insurers.

4. Prescription Drug Transparency: Detailed reporting on prescription drug spending is now mandatory, shedding light on factors driving costs and helping employers manage this significant expense.

The Impact on Health Plan Costs

These regulations are already starting to reshape the healthcare marketplace in profound ways:

- Increased Competition Among Providers: With pricing information more accessible, providers are incentivized to offer competitive rates to attract patients.

- Greater Accountability for Insurers: Insurers face mounting pressure to justify premiums and other costs, potentially leading to more affordable health plans.

- Empowered Consumers: Employees now have the tools to make informed healthcare decisions, potentially reducing unnecessary spending.

- Challenges for Employers: While transparency offers long-term cost-saving potential, employers may face initial challenges in navigating and implementing the new requirements.

Strategies for Employers to Adapt

1. Leverage Technology: Invest in user-friendly platforms that help employees understand and compare healthcare costs. Partnering with benefits providers that offer intuitive tools is crucial.

2. Educate Your Workforce: Transparency is only effective if employees know how to use the information. Conduct workshops or provide resources that explain how to interpret cost data and choose wisely.

3. Optimize Plan Design: Use the data provided under the new regulations to identify inefficiencies in your current health plans. Consider adopting value-based insurance designs that prioritize high-value care.

4. Engage in Direct Contracting: Direct Primary Care (DPC) and other direct contracting models can bypass traditional insurance, offering transparent pricing and substantial savings.

Looking Ahead

The transparency regulations of 2025 mark a turning point for healthcare in the U.S. By fostering greater clarity and accountability, they have the potential to curtail rising costs and enhance care quality. However, adapting to these changes will require proactive strategies from employers and benefits advisors.

For businesses, this is an opportunity to not only reduce expenses but also enhance employee satisfaction by offering plans that are easier to navigate and understand. With the right approach, the transparency era can be a win-win for everyone involved.

The Role of Mental Health Benefits in Employee Retention

eliezer@zupnickassociates.com (Eliezer Zupnick) — Mon, 06 Jan 2025 13:40:12 GMT

The Role of Mental Health Benefits in Employee Retention

In today's competitive job market, companies must offer more than just a base salary and traditional benefits like health insurance and retirement plans to attract and retain talent. Employees are increasingly prioritizing their mental health, and businesses that provide comprehensive mental health benefits—including therapy, Employee Assistance Programs (EAPs), and wellness initiatives—see higher employee satisfaction and retention rates.

This blog will explore the critical role mental health benefits play in retaining full-time employees, supported by data that shows how companies offering fringe benefits and mental health support outperform others in maintaining a satisfied workforce.

Why Mental Health Matters for Full-Time Employees

Mental health issues, such as anxiety and depression, are increasingly common in the workplace, impacting employee well-being and company productivity. The World Health Organization (WHO) reports that 12 billion working days are lost every year due to mental health-related issues, which costs businesses and the global economy close to $1 trillion annually.

For full-time employees, mental health benefits like therapy and disability insurance can make a substantial difference in their quality of life. Companies that offer these benefits packages demonstrate that they value employee well-being and work-life balance, leading to higher job satisfaction and loyalty.

A study by the American Psychological Association (APA) found that 89% of employees at companies that provide mental health support would recommend their employer as a good place to work. This is a stark contrast to the 17% at companies without these types of fringe benefits.

How Mental Health Benefits Improve Employee Retention

Offering mental health benefits has a direct impact on improving employee retention. Companies that include these resources as part of their benefits packages create a supportive environment, helping employees manage stress, avoid burnout, and maintain high levels of engagement.

Increased Employee Satisfaction
When mental health benefits are included, employees feel valued and supported. According to the Society for Human Resource Management (SHRM), 76% of full-time employees consider mental health benefits a top priority when deciding whether to stay with a company. Offering common employee benefits like therapy, wellness programs, and flexible work options increases job satisfaction and lowers turnover rates.
Preventing Burnout and Absenteeism
Providing access to mental health services such as EAPs or therapy can help prevent burnout. Employees suffering from burnout are 2.6 times more likely to leave their current job, according to a Gallup study. Mental health support not only improves employee well-being but also reduces absenteeism and ensures employees can manage their workload without feeling overwhelmed. For companies with long working hours, addressing mental health becomes even more crucial in preventing turnover.
Loyalty and Engagement
Employees who feel mentally supported are more loyal to their employers. Research from the APA shows that 79% of employees who feel supported by their company’s mental health programs are more likely to stay long-term. Employers that invest in fringe benefits like student loan assistance, retirement benefits, and mental health services show employees they care about their overall well-being, boosting both engagement and retention.

Types of Mental Health Benefits That Boost Retention

For companies looking to retain their top talent, it’s essential to provide a variety of common employee benefits that include mental health support. Some key benefits include:

Therapy and Counseling Services: Companies can offer therapy through health insurance or Employee Assistance Programs (EAPs). Free or discounted therapy sessions can greatly reduce the mental strain on employees, leading to higher retention.
Wellness Programs: Flexible work options, mindfulness training, and stress management workshops help employees stay mentally healthy and balanced. These programs are particularly valuable for those with high-stress jobs or long working hours.
Flexible Work Arrangements: Offering options like working from home or flexible hours shows a commitment to work-life balance. Full-time employees who have the flexibility to manage their personal lives alongside work responsibilities tend to stay with their company longer.
Comprehensive Benefits Packages: Including disability insurance, life insurance, student loan assistance, and profit sharing can set a company apart from others. Offering these alongside mental health benefits helps employees feel more secure, both financially and emotionally.

The Competitive Advantage of Mental Health Benefits

Companies that offer comprehensive fringe benefits and mental health programs not only improve employee satisfaction but also gain a competitive edge in the marketplace. As job seekers increasingly prioritize mental health, businesses that offer these benefits packages are better able to attract and retain talent. Neglecting mental health benefits could result in higher turnover, lower morale, and a loss of top talent to competitors.

In addition to higher retention, companies offering mental health support benefit from lower absenteeism, higher productivity, and a healthier work environment. As mental health awareness continues to grow, businesses that invest in employee well-being are ensuring their long-term success.

Conclusion

The role of mental health benefits in employee retention is clear. Companies that provide full-time employees with access to therapy, wellness programs, EAPs, and flexible work options see higher levels of satisfaction, loyalty, and productivity. By including these benefits in their benefits packages, companies not only attract and retain top talent but also create a healthier, more engaged workforce.

As more employees seek out employers who prioritize their well-being, offering comprehensive mental health benefits has become essential. Whether it's reducing turnover or fostering long-term loyalty, investing in mental health is a win for both employees and businesses.

Is your company offering the right mental health support to keep employees engaged and satisfied?

2025 Vision: How Employers Can Optimize Employee Benefits for Open Enrollment

eliezer@zupnickassociates.com (Eliezer Zupnick) — Mon, 06 Jan 2025 13:20:56 GMT

2025 Vision: How Employers Can Optimize Employee Benefits for Open Enrollment

Employers are constantly seeking ways to attract and retain top talent, and one key way to do so is by offering a comprehensive benefits package. With open enrollment for 2025 on the horizon, it's crucial for employers to understand how to maximize employee benefits to meet the needs of their workforce. By staying up-to-date on trends, communicating effectively, and ensuring legal compliance, employers can create a benefits package that not only meets the needs of their employees but also helps to differentiate them in the competitive job market.

Understanding Employee Needs

One of the first steps in maximizing employee benefits for open enrollment 2025 is understanding the needs and preferences of your workforce. Conducting surveys or focus groups can provide valuable insights into what benefits are most important to employees. By gathering feedback directly from employees, employers can tailor benefits packages to better meet the specific needs of their workforce.

Updated Benefits Options for 2025

As the workforce evolves, so do employee benefits. Employers should stay current on trends in benefits offerings for 2025 to remain competitive in the market. Some new benefits options for 2025 may include mental health support, student loan repayment assistance, and flexible work arrangements. By offering a range of benefits that cater to different employee demographics, employers can ensure their benefits package is attractive to a diverse workforce.

Communication Strategies

Effective communication is key when it comes to open enrollment. Employers should clearly communicate updates and changes to benefits offerings to employees, providing resources and support throughout the decision-making process. Whether through email, in-person meetings, or digital platforms, ensuring that employees understand their benefits options can lead to higher engagement and participation in open enrollment.

Maximizing Employer Contributions

Employers can further enhance their benefits package by maximizing employer contributions. Offering a matching program or incentives for employees to participate in certain benefits can increase employee engagement and satisfaction. By investing in their employees' well-being, employers can create a positive work environment that fosters loyalty and commitment.

Legal Compliance and Regulations

While offering employee benefits is important, it's crucial for employers to stay up-to-date on legal compliance and regulations. Failure to comply with laws related to benefits offerings can result in costly fines and legal consequences. Employers should regularly review their benefits package to ensure it aligns with legal requirements and seek legal counsel if needed to stay compliant.

In conclusion, maximizing employee benefits for open enrollment 2025 is essential for employers looking to attract and retain top talent. By understanding employee needs, staying current on benefits trends, communicating effectively, maximizing employer contributions, and ensuring legal compliance, employers can create a benefits package that sets them apart in the competitive job market. Taking these steps not only benefits employees but also contributes to a positive and thriving workplace culture.

Navigating Insurance Market Instability: Strategies for Employers

eliezer@zupnickassociates.com (Eliezer Zupnick) — Wed, 11 Sep 2024 18:40:11 GMT

The insurance market has always been a dynamic landscape, but recent economic shifts, regulatory changes, and unpredictable healthcare costs have led to increased instability. For employers, this volatility can create significant challenges, from rising premiums to reduced coverage options. However, by implementing strategic approaches, employers can navigate these fluctuations, ensuring stability and cost-effectiveness in their insurance offerings.

Understanding the Current Insurance Market

Before diving into strategies, it’s essential to understand the factors driving instability in the insurance market. Economic downturns, shifts in healthcare policy, and the increasing costs of medical care are all contributing to unpredictability. Additionally, the post-pandemic landscape has further complicated the market, with insurers adjusting their models to account for new risks and uncertainties.

Strategies for Managing Insurance Market Fluctuations

1. Diversify Your Insurance Portfolio

Just as with financial investments, diversification is key to managing risk in the insurance market. Employers should consider offering a range of insurance options to employees, including traditional plans, Health Savings Accounts (HSAs), and alternative funding arrangements like level-funding or self-insurance. By diversifying, employers can spread out risk and avoid being overly dependent on any single insurance provider or plan.

2. Leverage Data Analytics

Data is a powerful tool for predicting trends and making informed decisions. Employers should utilize data analytics to monitor healthcare utilization, claim patterns, and employee preferences. This data can help in negotiating better rates with insurers, identifying cost-saving opportunities, and tailoring benefits packages that align with employee needs while managing costs.

3. Focus on Employee Wellness Programs

Preventive care and wellness programs are not just beneficial for employees; they’re a strategic tool for employers to manage healthcare costs. By investing in comprehensive wellness initiatives, employers can reduce the incidence of chronic conditions, leading to lower healthcare claims and, subsequently, more stable insurance premiums. Wellness programs that focus on mental health, physical activity, and preventive screenings can make a significant impact.

4. Consider Alternative Funding Models

Traditional fully-insured plans may not always be the most cost-effective option in a fluctuating market. Employers should explore alternative funding models like self-insurance or level-funding, where they pay claims out of pocket up to a certain limit, with stop-loss insurance to cover catastrophic claims. These models offer greater transparency and control over healthcare costs, allowing employers to adapt more swiftly to market changes.

5. Engage in Strategic Partnerships

Partnering with a knowledgeable insurance broker or consultant can provide employers with valuable insights and guidance. These professionals stay ahead of market trends and can advise on the best strategies for managing costs and maintaining coverage stability. They can also assist in negotiating with insurers and exploring innovative solutions like captive insurance arrangements or consortiums.

6. Implement a Multi-Year Strategy

Rather than approaching insurance renewals on a year-to-year basis, employers should develop a multi-year strategy that accounts for potential market fluctuations. This approach allows for long-term planning, smoother budgeting, and more strategic decision-making. It also gives employers the flexibility to adapt their benefits offerings as market conditions change.

Staying Ahead of the Curve

Navigating insurance market instability requires employers to be proactive, informed, and flexible. By implementing these strategies, employers can not only manage fluctuations but also position themselves as attractive employers with robust, cost-effective benefits packages. In an unpredictable market, those who plan ahead and adapt to changes will be the ones who thrive.

Conclusion

The insurance market’s instability doesn’t have to be a barrier to offering quality benefits. With careful planning, strategic partnerships, and a focus on data-driven decisions, employers can maintain stability and cost-effectiveness in their insurance offerings. By staying informed and proactive, businesses can weather market fluctuations and continue to provide valuable coverage to their employees.

The Role of Transparency in Reducing Healthcare Costs

Thu, 22 Aug 2024 20:48:06 GMT

Healthcare costs are a big worry for employers and employees. The healthcare system is complex, often leaving people confused about what they’re paying for and why. However, transparency tools like Sage Transparency™ are helping change this. These tools make healthcare prices, quality, and outcomes clear, allowing people to make informed decisions and save on medical bills.

What is Healthcare Transparency?

Healthcare transparency means sharing clear information about healthcare costs, quality, and outcomes. When this information is easy to find, consumers can make better choices about the medical services they receive. Traditionally, healthcare providers have kept prices hidden, which can vary a lot for the same services. Price transparency breaks down these barriers, helping to reduce health care costs.

When patients and employers have access to this information, they can make decisions that fit their health needs and budgets. This shift towards price transparency regulations is key to lowering healthcare spending in the United States.

The Impact of Transparency Tools

Tools like Sage Transparency™ are vital for navigating the healthcare system. These tools collect and present healthcare data in a way that’s easy to understand. They offer valuable insights in several important areas:

Pricing Information: Users can compare healthcare prices for different procedures and treatments across various providers. This helps them find more affordable options without sacrificing high quality care.
Quality Metrics: Transparency tools also provide data on the quality of healthcare services, including patient outcomes and provider performance. This allows consumers to choose providers that offer the best value for both price and quality.
Network Comparisons: Employers can compare different health plans and healthcare networks, selecting options that offer cost-effective and high-quality care for their employees.

How Healthcare Transparency Reduces Costs

Introducing transparency in healthcare brings several benefits that help cut costs:

Better Decision-Making: When consumers have access to clear price information and quality data, they can make smarter choices. This might mean choosing lower-cost providers who still offer high-quality care, reducing overall health care prices and out-of-pocket expenses.
Increased Competition: As more price information becomes available, healthcare providers are pushed to compete on both price and quality. This competition can drive down the cost of healthcare services as providers work to attract more patients.
Improved Efficiency: Employers can use transparency tools to design better health plans. This might involve steering employees toward high-performing providers or encouraging them to choose more cost-effective options.
Stronger Negotiation Power: With transparency data, employers can negotiate better rates with healthcare providers. These insights give employers the leverage to push for fairer pricing, leading to savings on medical bills for both the company and its employees.

Real-World Impact: Sage Transparency™

Sage Transparency™ shows how these tools can make a difference. By providing comprehensive data on healthcare prices, costs, and quality, Sage Transparency™ helps users navigate the healthcare system with ease. Employers can create cost-effective benefits plans, and employees can make better healthcare decisions, leading to better outcomes and lower costs.

For example, an employer might find that a certain procedure is much cheaper at one provider compared to another, with no difference in quality. By guiding employees toward the more affordable option, both the employer and employee can save on healthcare costs, making healthcare spending more manageable.

Why Transparency in Healthcare is Essential

Healthcare transparency isn’t just a trend—it’s a necessity. As health care costs continue to rise, tools like Sage Transparency™ are essential for everyone. By making price information, quality data, and outcomes easy to access, these tools help people make informed decisions that can lead to significant savings on healthcare services and prescription drugs.

How Transparency Benefits Consumers

Consumers are often overwhelmed by the complexity of healthcare services. Without clear price information, it’s difficult to know if they are getting a fair deal. Transparency tools make it easier for people to compare prices and choose the best option for their needs. This helps reduce out-of-pocket costs and ensures they get high quality care.

For instance, someone needing a medical procedure can use transparency tools to compare healthcare prices from different providers. By finding a provider that offers the procedure at a lower cost without sacrificing quality, they can avoid unnecessary expenses and keep their medical bills in check.

How Transparency Helps Employers

Employers also benefit from healthcare transparency. They can use the information to design better health plans for their employees. This might include selecting providers who offer both affordable and high-quality care or implementing cost-sharing strategies that encourage employees to choose cost-effective options.

By leveraging transparency tools, employers can negotiate better rates with private insurers and healthcare providers. This helps them manage healthcare spending more effectively, reducing costs for both the company and its employees.

Transparency and the Future of Healthcare

Transparency will shape the future of healthcare, creating a system that is more efficient and fair for everyone. As more organizations adopt transparency tools, the potential for cost savings and better health outcomes will continue to grow. This makes transparency a key part of modern healthcare management.

With real-time access to healthcare costs and quality information, consumers and employers alike can make better decisions. This will drive a shift in the healthcare system, pushing providers to offer better services at fairer prices.

Conclusion

Healthcare transparency is essential for reducing costs and improving care. Tools like Sage Transparency™ are leading the way by providing easy access to important information on healthcare prices, quality, and outcomes. By using these tools, consumers and employers can make informed decisions that lead to significant savings on medical bills and healthcare services.

As transparency continues to evolve, it will play a crucial role in shaping a more efficient, fair, and affordable healthcare system in the United States. Adopting transparency tools is not just a smart choice; it’s a necessary step toward a better future for healthcare.

Care Pays Off … Pssst, We're Talking About Caregiving Benefits

mwangielton@gmail.com (Elton Mwangi) — Tue, 06 Aug 2024 16:47:00 GMT

Consider this: the path to enhanced profitability and a committed workforce is paved with the support you offer your employees.

And far from the cliché of the distracted, barely coping parent, data shows that caregiving employees, when adequately supported, harness their roles to drive meaning and efficiency in their work.

However, sustainable working parenthood has long been seen as a privilege rather than a fundamental right. But if the pandemic and the rise of a diverse, caregiving-embracing workforce taught us anything, it would be that caregiving benefits are an urgent need for workers.

Why? An overwhelming 73% of the workforce shoulder caregiving responsibilities, meaning most of your workers might be caregivers. So, by supporting your caregiving employees, you aren't just making them happy; you're also enhancing motivation and effectiveness in the workplace.

This means it's high time to reframe the cultural narrative around caregiving from a 'benefit' to a 'necessity.' Because in an era where employees are increasingly evaluating potential employers through the lens of benefits, being smart means supporting the caregiving needs of your employees.

Besides, the economic argument for caregiving benefits is robust, making implementing supportive policies a potent business strategy. Think about it: policies like unlimited paid parental leave are becoming business savvy because they foster loyalty and attract top talent.

These policies signal a company's commitment to its employees' holistic well-being, which, in turn, drives retention and engagement . Now it's become clear: supporting working parents is a relay race that requires corporate endurance and commitment.

What Does This Mean for Your Return On Investment?

The line between work and personal life is increasingly blurred. Just pay a little attention, and you'll see how stress, exhaustion, and burnout are escalating at an all-time high. This means that the need for comprehensive caregiving benefits has never been more critical because employees' well-being directly affects the business's health.

The good news is that when employers genuinely support caregiving, they lay the foundation for a culture that retains talent and elevates productivity and engagement. Here's how:

67% of employees have contemplated leaving their jobs within the past year, yet 42% chose to stay, driven by their employer's proactive support of their caregiving roles. What does this tell you? There is a direct correlation between caregiving benefits and employee retention.

If that is not enough, 59% of employees would likely remain with their current employer for at least four more years if provided with backup or subsidized childcare - extending their tenure well beyond the average.

And you know the cost savings in retention – losing an employee costs up to 213% of their salaries for top earners .

Additionally, caregiving benefits unlock parents' leadership potential and catalyze organizational growth. Technically, parents also harbor robust professional ambitions, and with access to reliable childcare support, 57% of them would willingly embrace higher-level responsibilities.

Their career goals are intricately linked to their caregiving roles, with aspirations not just to stay within a company but to ascend its ranks. This is good for your bottom line because promoting from within ensures quicker adaptation and greater loyalty, reducing onboarding time and turnover costs - internal hires are 18% less costly and exhibit 21% lower turnover rates.

As a bonus, companies that foster an environment supportive of caregiving see a higher representation of women in leadership, correlating with a 34% higher return to shareholders. Also, gender-neutral caregiving policies promote equity, essential for attracting a diverse workforce.

One last thing: creating a culture where the needs of caregivers are met and openly accepted fosters a sense of belonging, authenticity, and equity within the workplace. Feeling valued in the workplace increases productivity and reduces turnover because:

Employees thrive when there is no pressure to hide their personal lives.
Employees are more motivated when they know they have adequate caregiving support.
Employees are more focused and less absent when they know they can take time off to care for their loved ones.

This broader significance in employee roles has been shown to increase work hours and satisfaction, contributing an additional average of $9,078 per employee per year.

In summary, caregiving benefits do more than just help employees manage their personal lives; they transform them into more engaged, motivated, and productive workforce members, creating a ripple effect of positive outcomes across the organization.

Conclusion: Make the Case for Caregiving Benefits

Research consistently demonstrates that well-supported employees deliver their most productive, innovative, and profitable work. This is why benefits and culture supportive of all caregiving roles - be it for children, aging parents, or others - are transforming from "nice-to-have" perks into essential strategies for boosting productivity and profitability.

Caregivers are fundamentally reshaping productivity metrics within the workplaces that support them. So, if you're ready to transform your workplace and boost ROI through inclusive caregiving policies, contact Zupnick Associates today to design a caregiving benefits strategy that supports your employees and drives your business forward.

Let's make your company a beacon of support and ambition for all employees.

You Can Master Retention – Just Get It Right

mwangielton@gmail.com (Elton Mwangi) — Mon, 15 Jul 2024 14:01:46 GMT

Sounds simple, right? Just get it right! Simple, yes, but easier said than done, considering:

Entry-level employees are no longer clueless about what they want and where to work.
Because they know what they want, they will prepare positively for it.
But this also means they have high expectations regarding development opportunities and salary expectations.

Still, the worst might be that you can offer a competitive salary package and still struggle with hiring and retaining employees. Why? Your culture and what you stand for are even more important, especially for the incoming Gen Z workforce.

So, they'll walk into the interview ready to ask you questions that determine if you are the right employer for them. Oh, how the tables have turned.

But this is good because if you get it right, you have a pool of talented and innovative individuals who will stick to the landing for a long time. This is what you want to aim for, and this is how to do it:

Uncover the Hidden Potential of Gen Z Talent

To attract and engage Gen Z talent effectively , you must shift their focus from conventional recruitment metrics such as GPAs and formal qualifications to a more holistic understanding of a candidate's potential.

This generation brings a wealth of untapped capabilities that may not be immediately evident through traditional screening processes. So,

Explore beyond conventional metrics: Engaging with potential hires on a deeper level can reveal qualities and skills that traditional metrics might overlook. For instance, a candidate's active participation in online communities, side projects, or personal ventures can showcase their ability to lead, innovate, and collaborate - traits crucial in today's dynamic work environment.

Initiate meaningful conversations: Encourage dialogue beyond the resume to uncover how candidates apply their skills and interests in real-world scenarios. Discussions about their roles in community service, startup endeavors, or even complex hobby projects can provide insights into their problem-solving skills, creativity, and resilience.

By focusing on these broader aspects of a candidate's experiences and interests, employers can uncover the rich, diverse talents that Gen Z offers, aligning recruitment strategies with the complex, multifaceted nature of modern business challenges.

Harness the Digital Prowess of Gen Z Talent

As Gen Z infiltrates the workforce, they bring a fresh, digital-first perspective that is reshaping how businesses operate. Their intrinsic understanding of the latest technologies is not just an asset but a necessity for companies aiming to stay relevant and competitive in a rapidly evolving digital landscape . So,

Embrace their tech fluency: Recognize the unique advantage that Gen Z's tech-savvy nature provides. This generation has grown up with digital technology at their fingertips, making them inherently proficient in emerging tools and platforms, especially those that boost productivity and fortify cybersecurity measures.

Capitalize on innovative skills: Actively seek out Gen Z candidates with cutting-edge technology expertise. Their familiarity with digital innovation can significantly enhance your company's operations, streamline communication processes, and safeguard sensitive data. By understanding and harnessing their technological fluency, you position your organization at the forefront of industry advancements.

By integrating Gen Z's digital competencies into your strategic operations, you not only leverage their tech-savviness but also foster an environment well-suited to navigate the challenges and opportunities of the digital era.

Align Benefits with Gen Z Priorities

Understanding and catering to the evolving preferences of today's younger workforce is pivotal in attracting and retaining top talent. Gen Z workers place significant value on benefits that enhance their professional growth, personal well-being, and work-life balance. So,

Customize benefits to meet modern expectations: To resonate with Gen Z, offering a benefits package that goes beyond the basics is crucial. Focus on integrating comprehensive mental health support, expansive learning and development opportunities, and lifestyle perks such as gym memberships and flexible work arrangements. These benefits should reflect a deep understanding of their priorities, emphasizing personal growth, wellness, and flexibility.

Promote a holistic approach to employee welfare: By tailoring your benefits offerings to include components that support professional and personal aspects, you position your company as a forward-thinking employer that genuinely values its workforce. This strategy enhances your appeal among young candidates and fosters a culture of care and respect, which is crucial for long-term employee retention and satisfaction.

Incorporating these tailored benefits can profoundly impact how young talent perceives your organization, significantly increasing your ability to attract and retain the innovative minds of Gen Z.

Enhance Recruitment Through Effective Communication

Effective communication is the cornerstone of a positive recruitment experience, setting the initial tone for an employee's journey with your company. A streamlined and transparent approach to communication during the hiring process boosts the candidate's perception of your organization and lays the groundwork for a relationship built on trust and respect.

Optimize recruitment communications: To elevate the recruitment experience, it is crucial to implement tools and strategies that ensure swift and clear communication with potential hires. This involves providing timely updates about their application status and next steps, which demonstrates your company's commitment to transparency and respect.

Cultivate a responsive hiring culture: By prioritizing prompt responses, you mitigate the common frustrations associated with the hiring process. This approach enhances the candidate's experience and reflects positively on your company's operational efficiency and respect for individuals' time. This practice is particularly important in today's fast-paced market, where top talent often has multiple options.

Adopting these communication strategies will improve the candidate experience and strengthen your company's reputation as an employer that values and respects its workforce from the very first interaction.

Conclusion:

To truly attract and retain Gen Z talent, employers must align their recruitment strategies with the expectations and values of this new generation. This means offering competitive financial compensation and fostering a work environment that values transparency, rapid technological adaptation, and comprehensive benefits that address both professional and personal growth.

So, sold on the idea of doing recruitment the right way? Talk to us today . We can help you get the right talent and retain them with a benefits offering package tailored to your employee needs.

Use The SECURE 2.0 Provisions to Boost Employee Loyalty & Productivity

mwangielton@gmail.com (Elton Mwangi) — Wed, 12 Jun 2024 14:20:00 GMT

SECURE 2.0 is for small employers who want to enhance their retirement offerings. Yet less than half of employers know how to take advantage of SECURE 2.0 to offer retirement solutions to their employees. A lost opportunity to enhance employer satisfaction, engagement, and productivity and to solidify yourself as an employer of choice.

However, with SECURE 2.0 carrying more than 90 provisions, it stands to reason that you, as an employer, don't know how to fully take advantage of its offerings. So, here is an important question to ask:

Do You Know How to Capitalize on Its Provisions?

Leveraging SECURE 2.0 is more than just offering retirement benefits; it's about creating a culture that values long-term employment and financial security. By enhancing your retirement offerings, you improve your employees' financial outcomes and build a workplace that attracts and retains top talent.

For example, SECURE 2.0 gives small businesses a starter 401 (k) or a 403 (b) plan that employees can automatically enroll in. And instead of the $23,000 yearly contribution limit for traditional 401 (k) and 403 (b) plans, this starter kit has a $6,000 annual cap – you offer a retirement plan your employees can afford.

Employers can also enroll their employees into an emergency savings account where up to 3% of the employee's salary is deposited into their savings account linked to their retirement plans. Employees can save up to $2,500 and then deposit the rest of the money into the retirement account – you ease their financial worries .

You can also match contributions for student loan payments. Student loans burden many employees; SECURE 2.0 allows employers to make matching contributions to retirement plans based on the amount employees pay towards their student loans. This provision is desirable to younger workers who may struggle to save for retirement while paying off debt. And this type of commitment to your employee's financial well-being fosters greater loyalty.

There is also something for those employees nearing retirement. SECURE 2.0 increases the limit on catch-up contributions for those aged 60 through 63. By informing and encouraging your older employees to take advantage of this benefit, you help them maximize their retirement savings during their peak earning years, which can be a crucial factor in their decision to stay with your company longer.

You Win Too!

Available tax credits could offset administrative costs for implementing SECURE 2.0 provisions to a point where you spend low to no cost. These include:

1. Startup Costs Credit:

The credit for small employers that start new retirement plans, including 401(k)s or SIMPLE IRA plans, previously covered 50% of the administrative costs, up to a maximum of $500 per year.

Under SECURE 2.0, this credit has been significantly increased to cover 100% of the administrative costs for businesses with up to 50 employees, with a maximum credit of $5,000 per year for the plan's first three years.

2. Automatic Enrollment Credit:

A new tax credit has been introduced specifically for small employers that add automatic enrollment to their new or existing retirement plans. This credit is $500 annually and is available for three years after adding the feature.

This credit is designed to encourage employers to adopt automatic enrollment, which has been shown to increase employee participation rates in retirement plans.

3. Credit for Small Employer Pension Plan Startup Costs for Joining an Existing Plan:

SECURE 2.0 provides a new credit for small employers that join a multiple employer plan (MEP) or pooled employer plan (PEP). This provision aims to make it more affordable for small businesses to offer retirement benefits by sharing administrative duties and costs across multiple employers.

4. Credit for Contributions to Employee Accounts:

SECURE 2.0 introduces a credit for specific employer contributions to retirement plans, such as matching or non-elective contributions. The credit is available for up to three years and specifically targets small employers.

It is calculated as a percentage of the contribution, up to a certain cap, and is intended to incentivize employers to contribute more to their employees' retirement savings.

These tax credits are designed to help small businesses reduce the financial burden of offering a retirement savings plan to their employees. They are also designed to make your retirement offerings more competitive so you can attract and retain top talent.

Understand then Leverage

Comprehending the nuances of new regulations, technological advancements, or market trends can significantly enhance how effectively you meet your business goals and support your team. So, first understand and then leverage the over 90 provisions of SECURE 2.0 to boost employee satisfaction, engagement, and productivity.

Find this challenging. That's why we are here. We can help you embrace the opportunity that SECURE 2.0 presents, educate you on its benefits, implement strategic changes, and watch as your organization reaps the rewards of enhanced loyalty and improved operational efficiency.

Ready to enhance your retirement benefits and become an employer of choice? Contact us today to discuss how you can integrate the SECURE 2.0 provisions into your benefits offerings and make a lasting impact on your employees' lives and loyalty. Let's ensure that your company meets and exceeds employee expectations with a forward-thinking benefits strategy.

These Benefits Make You an Employer of Choice

mwangielton@gmail.com (Elton Mwangi) — Mon, 06 May 2024 11:55:51 GMT

American workers are unhappy.

And no, increased wages, choice over where to work, or paid time off benefits are not helping to alleviate this feeling of stress and disengagement at the workplace. Just look at the current workplace narrative:

Workers are burnt out
Workers are quiet quitting
Workers are stressed about their financial well-being

And it goes on and on.

Then there's you, the employer, trying every strategy to boost engagement, reduce turnover, and become the employer of choice for top talent in your industry. The challenge is that belief has become more powerful than fact, meaning you need an incentive that changes your worker's belief system where their job satisfaction is concerned.

The good news is that workers still find contentment in the right benefits. And because it's complex and expensive to focus on providing benefits for a diverse workforce, the key lies in delivering benefits that are essential throughout your entire organization.

So, what are these benefits?

1. Mental Health Benefits

Let's start by declaring that effective mental health benefits are a win-win strategy for employers because:

Mental health benefits are a universal demand among working employees. Younger employees like Gen Z and millennials appreciate hands-on support such as workshops and access to mental health professionals. Baby boomers value tranquillity through physical spaces like meditation rooms. The demand for mental health benefits spans all ages.

Additionally, every working person spends a significant part of their life working, profoundly impacting their mental well-being. This means that the state of mental health in the workplace will affect the organization's productivity level. Therefore, employers can tackle issues like burnout and stress by offering mental health benefits, thus increasing employee satisfaction.

Keep in mind that offering robust mental health benefits is not just about support—it's a strategic move. These benefits are crucial for retaining talent, especially those who may otherwise leave due to inadequate support.

But remember, the diverse nature of your workplace acknowledges the need for preferential mental health support benefits that vary across the board. This underscores the need for a comprehensive approach that includes various mental health services tailored to diverse needs. With that in mind:

Engage with your employees to identify the most valuable mental health resources. This engagement can be facilitated through surveys, suggestion boxes, or town hall meetings. By involving employees in the decision-making process, you tailor the benefits to their needs and enhance their commitment to and satisfaction with the workplace.

Ensure your health insurance plans cover a broad spectrum of mental health services, including therapy sessions, psychiatric consultations, and potentially long-term counseling. This coverage is the bedrock of any mental health initiative.

Incorporate designated wellness spaces within the office environment to provide a sanctuary for employees to decompress and manage stress during work hours. Additionally, having a dedicated workplace counselor available can address immediate concerns and foster a supportive atmosphere.

Remember, a workforce that feels supported in every aspect of their health is more engaged, loyal, and productive.

2. Flexible Work Schedule Benefits

According to a comprehensive Forbes Advisor survey, 79% of employees identified flexible work options as the most crucial benefit an employer can provide. This demand spans across generations, with 66% of Gen Z and 65% of Gen X prioritizing flexible parental leave. At the same time, millennials are particularly keen on flexible paid time off and vacation policies.

So you see, in the quest to become an employer of choice, especially among the Gen Z top talent pool , offering flexible work options emerges as a critical strategy. And the core of a successful flexible work policy is trust – trusting your employees to manage their responsibilities on their terms.

This trust fosters a sense of ownership and loyalty, which boosts productivity and satisfaction. For instance, by allowing employees the flexibility to attend to personal matters or family events, you demonstrate a commitment to their well-being and work-life balance, solidifying their commitment to the organization. Therefore:

Define what flexibility means in your organization. Whether it's the ability to start and end the day at times that suit individual needs, work from home, or take time off for personal reasons, ensure these policies are communicated and understood.

Engage with your employees to understand how these policies impact their work and personal lives. Use this feedback to make continuous improvements to your flexibility policies.

Provide the tools and technology necessary for employees to work effectively from anywhere. This might include secure remote access to company networks, collaboration tools, and a responsive IT support system.

Ensure flexible work options are available to all employees, not just a select few. This inclusivity prevents any feelings of resentment or inequality within the workforce.

Embrace flexibility in your organizational culture and see your appeal as a progressive and empathetic employer grow among current workers and top talent looking for places where they feel supported.

3. Training and Development Benefits

Like flexibility, the thirst for professional growth transcends the entire working generation, from the ambitious Gen Z and millennials to the experienced baby boomers. And with the increasing adoption of AI and its subsequent innovations, there is a universal appeal to upskill.

The key to effectively understanding and meeting your employees' upskilling needs is directly engaging with them. Solicit feedback on your employees' professional development needs, then tailor your offerings to meet said needs.

The goal here is to remain updated and informed on what matters to your employees and then create development programs that resonate deeply with your employees' career objectives, whether they aim to ascend the managerial ladder or excel as skilled individual contributors. So:

Continuously update and adapt training programs based on employee feedback to keep them relevant and aligned with employee aspirations and business needs.

Encourage ongoing education by providing stipends or reimbursements for courses relevant to their roles. This not only boosts their current skills but also prepares them for future advancements.

Investing in your employees pays dividends in enhanced job satisfaction, increased productivity, and, critically, heightened company loyalty. After all, by championing a culture of continuous learning and development, you enhance your workforce's capabilities and signal a commitment to their personal and professional growth.

Conclusion

To become an employer of choice and reduce turnover, you must offer benefits that genuinely impact employees' lives. Mental health support, flexible working conditions, and substantial development opportunities do not just meet immediate needs—they foster a long-term commitment and enhance overall workplace satisfaction.

Implement these strategic benefits to transform your workplace into a nurturing environment that attracts and retains top talent. Or contact us – our work is to help employers like you become an employer of choice among top talent in their industry.

More Than Half of Employees Experience Mental Health Challenges

mwangielton@gmail.com (Elton Mwangi) — Mon, 18 Mar 2024 18:16:18 GMT

What Can You Do As An Employer?

Your employees are still struggling with mental health, and it's affecting your bottom line.

Just last year, the work of two-thirds of employees was affected because of mental health challenges. 7% of employees have also missed work because of mental health challenges. And it's getting complex, these mental health issues that make it continually harder for employees to work at their optimal.

For instance, substance use disorder cost employers billions in 2023 – this is a mental health condition. The financial stress of dealing with today's harsh economic reality is not helping much either. Now, you might be among the 77% of employers that offer mental health benefits and resources.

But are you hitting the nail on the head where your unique employee needs are concerned? Besides, your mental health initiatives might be robust, yet your organizational culture might be further inducing stress and anxiety among your employees.

So, what can you do?

Look At Your Workplace Culture

Now, you've probably spent hours creating a culture of wellness in the workplace that fosters open communication and reduces stigmatization surrounding mental health challenges. And it is working. You are addressing mental health issues in the workplace by providing comprehensive mental health benefits ( Like SSI), telehealth services, and resources.

Is it enough? Not really, because the best mental health initiatives will not suffice if your employees are still overworked. Creating a culture of wellness in the workplace might look good on paper, but if your managers are not trained to handle employees dealing with mental health needs while they are/might be dealing with their mental health challenges, then it is all for not.

If employees are dealing with unclear expectations, bullying, or harassment every day, then mental health challenges will continue to rise in the workplace. And guess what? You, the employer, are responsible for adequately addressing all these issues.

Think about it this way: employees miss work yearly because of stress, totaling 12 billion workdays yearly. The cost of this type of absenteeism is $1 trillion . And the more you deal with absent employees, the more you contribute to this statistic. So yes, mental health challenges affect your bottom line. And this is what you can do:

Train Your Managers

This is what Dr. Joe Grasso, VP of workforce transformation, said about managing mental health challenges in the workplace:

"Managers who practice key skills, such as managing workload capacity, fostering career growth, and providing greater job control, can improve well-being, job effectiveness, and engagement across the team in the report. These are all learnable skills, but first, managers need to be motivated."

Strategically start with your managers, and everyone else in the workplace will follow. Why? Enhancing awareness and understanding of mental health challenges among leaders and managers helps them learn about the various forms of mental health issues, their symptoms, and the impact they may have on an employee's performance and overall well-being.

This foundational knowledge is crucial for creating an empathetic and informed management approach that recognizes the importance of mental health in the workplace. So, mental health initiatives like manager training on mental health management and providing the necessary resources should become a priority in this case.

Equip your managers with early identification of mental health challenges skills to aid in quicker support and intervention, potentially mitigating more severe mental health crises. Recognizing these signs early can prompt timely discussions and support, fostering a proactive approach to mental health care.

Develop the skills necessary for sensitive and effective communication. This includes learning to initiate conversations about mental health, listen actively, and provide reassurance and support. Effective communication fosters a culture of openness, encouraging employees to speak up about their mental health challenges without fear of judgment or reprisal.

Talk to your benefits advisor or broker about providing suitable workshops or programs as part of your mental health benefits . This might include flexible working arrangements, mental health days, access to counseling services, and a clear process for seeking help. Training ensures managers understand how to apply these policies fairly and consistently, enhancing their effectiveness.

Managers should also learn strategies for creating a workplace wellness culture. Remember, your managers are directly handling your employees. Therefore, they are your first line of defense against mental health challenges.

Empower them to handle minor and complex mental health challenges, even if it means recommending PTO to get proper treatment, and your mental health challenges will start to deteriorate. And don't forget that managers, too, can experience mental health challenges.

So, provide them with strategies for managing their mental health, including stress management, work-life balance, and self-care techniques. Besides, a mentally healthy leadership team is better equipped to support employees and advocate for mental health initiatives.

Change Your Workplace culture.

Heavy workloads, unclear expectations, bullying or harassment, and a lack of managerial support are all mental health risk factors. As employers, recognizing and addressing these risk factors can lead to a healthier, more productive working environment.

Start with clarifying roles for your employees. Clarity in roles, expectations, and feedback mechanisms eradicates ambiguity, reducing employee stress and anxiety. Establish open lines of communication where employees feel valued and heard.

Regular check-ins for transparent dialogue bolster confidence and a sense of belonging. Then, champion for work-life balance among your employees. You underline the importance of rest and recuperation by advocating for a work-life balance, offering flexible working hours, and encouraging employees to take their full leave entitlements.

This enhances productivity, employee satisfaction, and loyalty. Beyond reactive measures, offer proactive support through accessible mental health resources. Consider offering Employee Assistance Programs (EAPs), mental health days, and resources for stress management, counseling services, and mindfulness programs.

These mental health initiatives underscore your commitment to employee wellness. Speaking of creating a culture of wellness in the workplace, ensure your workplace doesn't tolerate bullying or harassment and supports its employees in times of need.

Implementing strict policies against workplace harassment and providing channels for employees to report concerns safely and confidentially are vital steps. Managerial training should also emphasize empathy, support, and constructive feedback, ensuring leaders can nurture and protect their team's mental health.

Foster a sense of belonging by encouraging a supportive community within the workplace to reduce feelings of isolation. Team-building activities, inclusive events, and groups focused on wellness and mental health can strengthen bonds among employees, creating a supportive network that recognizes and addresses mental health challenges together.

Conclusion: Lead By Example

Cultivating a healthy workplace culture starts at the top. When leadership exemplifies the values of empathy, respect, and support, it sets a precedent for the entire organization. Leaders who openly prioritize their mental health and respect boundaries encourage their employees to do the same, fostering an environment where well-being is paramount.

As an employer adept at addressing your team's mental health challenges, you understand the crucial link between nurturing a culture of well-being and achieving stellar performance. In an era when the demand for mental health support in your workplace is at its peak, your employees look to you to make their mental well-being a priority.

By meeting these calls with enhanced support through comprehensive benefits and healthier workplace practices, you're not just boosting employee wellness but also directly contributing to the financial strength of your organization. This dual victory underscores your role's importance in fostering a healthy workplace and a robust bottom line.

With that in mind, contact us to explore tailored mental health benefits and initiatives designed to cultivate a thriving, high-performing workplace culture.

How Can I Navigate Health Insurance Trends Successfully?

mwangielton@gmail.com (Elton Mwangi) — Mon, 11 Mar 2024 20:51:08 GMT

This economic climate has immense financial stress, further burdened by the rising cost of health insurance solutions . And the increasing need for personalization, which is forcing employers to seek insurance plans that align with every employee's unique needs, is additionally making it necessary for employers to leverage innovative tech when employing benefit offerings.

But this comes with its plethora of options in health insurance trends and the more choices there are, the harder it becomes to choose one that fits. So, how do you navigate health insurance trends successfully?

Leverage Broker Expertise

Staying ahead means more than just keeping pace; it involves strategic foresight and customization. And regular consultations with your broker can keep you abreast of the latest health insurance trends and legislative changes that might affect your benefits package.

The healthcare landscape is perpetually evolving, with new policies and regulations emerging that could impact your benefits offering. By staying informed, you can proactively adjust your benefits strategy to maintain compliance, optimize coverage, and ensure your benefits package remains competitive.

This ongoing dialogue with your broker ensures you're always one step ahead, ready to adapt to changes that could affect your organization and its employees. Also, insurance solutions today need to be as diverse as the workforce they aim to cover.

With a broker's insight, you can explore various plan designs offering the right coverage options, from traditional health insurance to newer, innovative wellness and mental health supports.

Flexibility and choice are also paramount, allowing employees to feel valued and understood. So, work with your broker to tailor health insurance solutions that align with your budget and your employees' needs, emphasizing flexibility and choice.

Besides, customized plans not only cater to the immediate health needs of your employees but also demonstrate your investment in their overall well-being, enhancing loyalty and satisfaction.

This approach ensures your benefits package evolves with health insurance trends, securing your position as an employer of choice. Because your employee benefit solutions will be thoughtful, comprehensive, and responsive to the changing healthcare environment.

Leverage Technology

Integrating technology into your employee benefit solutions can significantly increase engagement and satisfaction in our digital age. Platforms that simplify benefits administration and analytics tools that provide insights into utilization are just the tip of the iceberg.

These insurance solutions are critical in aligning your benefits strategy with current health insurance trends, ensuring your offerings meet employee needs accurately and efficiently. Also, technology facilitates direct engagement with benefits, offering employees 24/7 access to their information through mobile apps and online portals.

These tools can provide personalized recommendations, decision support, and educational resources, empowering employees to make informed choices about their health and wellness.

The convenience and accessibility of digital tools meet the expectations of a workforce accustomed to managing various aspects of their lives online, particularly appealing to tech-savvy generations like Millennials and Gen Z.

Keep in mind as well that effective communication is critical in ensuring employees understand and appreciate the full value of their benefits. Digital platforms offer innovative communication methods, from personalized emails and text messages to interactive webinars and virtual benefits fairs.

These technologies can disseminate information more effectively, ensuring that employees are informed about their benefits, how to use them, and any changes or updates that may affect their coverage.

By leveraging technology in your employee benefit solutions, you align your strategy with the latest health insurance trends and significantly enhance the employee experience. In doing so, employers can ensure their benefits offerings accurately and efficiently meet the evolving needs of their workforce, fostering a culture of well-being and support.

Prioritize Employee Wellness Education

Employee benefits solutions have shifted focus towards holistic wellness, addressing everything from physical health to mental well-being. So, integrate wellness programs that pre-empt health issues and foster a culture of wellness.

For instance, wellness programs that encourage preventative care should be incorporated, reducing long-term costs associated with chronic diseases. Also, given the growing focus on mental wellness, ensure your health insurance covers comprehensive mental health services.

However, the true value of your employee benefit solutions is realized when your employees fully understand and utilize them. Education is key in this respect. Regular informational sessions, whether workshops, seminars, or webinars, along with easily accessible online resources, can dramatically increase benefits literacy among your workforce.

Such educational initiatives ensure that your employees are well informed about the benefits available to them, understand how to access these services and know the preventive measures they can take to maintain their health.

This clarity boosts appreciation for the benefits package and encourages a more proactive approach to health and wellness among employees. Accessible resources, such as user-friendly portals, FAQs, and one-pagers on key benefits, can significantly bridge the knowledge gap.

These resources should be designed to answer common questions, provide clear service access instructions, and explain the benefits in simple terms. By demystifying the process of utilizing health and wellness benefits, you empower your employees to take charge of their health, leading to better health outcomes and reduced long-term healthcare costs.

This strategic pivot also ensures you adhere to current health insurance trends since your employees stay updated while showcasing your commitment to your employees' overall health.

Conclusion

To navigate health insurance trends successfully, the partnership between employers and insurance brokers is more crucial than ever. By adopting a proactive, informed approach and leveraging brokers' expertise, employers can manage healthcare costs effectively and enhance their value proposition to current and prospective employees.

The future of health benefits is dynamic and demands agility, foresight, and a deep understanding of the needs of the modern workforce. Employers who rise to this challenge will secure their position in the marketplace and foster a healthier, more engaged, and productive workforce.

So, begin your journey to navigating health insurance trends with confidence. Contact us today to discuss strategies tailored to your unique business needs and unlock the full potential of your employee benefits package.

This is How to Tap into The Gen Z Top Talent Pool

mwangielton@gmail.com (Elton Mwangi) — Mon, 04 Mar 2024 20:33:44 GMT

Adopt Employee-Cantered Benefits

Why Gen Z?

Gen Z is slowly taking over the US workforce , which means every employer should be looking to change their benefits offerings to attract top talent in this pool. The challenge here is that Gen Z are very different people compared to their predecessors:

They prefer employers with a social impact.
They want creative opportunities in the workplace.
They crave upward mobility.
They value employee wellness and work-life balance.
They want to be heard, and so they expect vocal leadership.

Here’s another truth about Gen Z: they don’t mind job hopping until they find employers and company culture satisfactory.

So, as an employer, you have your work cut out for you if you want to recruit and retain top talent among the Gen Z pool. But there is an easy way out: offering employee-centred benefits.

Why Employee-Centered Benefits?

Traditional yet seemingly modern employee wellness ideas like retirement plans and healthcare are essential but not all enticing to the Gen Z workforce. The expectations of younger workers are different.

They want benefits that support their idea of a healthy lifestyle just as much as they want fair compensation for their work, hence, employee wellness and work-life balance. In a word, wellness program ideas with a holistic approach to it appeal more to top talent in the Gen Z pool.

Think about it this way: to be a productive organization, you must focus on individual wellness program ideas. The challenge, however, is that you might still hold on to the belief that it is essential to offer benefits that meet your industry benchmark to stay abreast of competition.

Notwithstanding, more than offering what is trending or seems appropriate in the market, the key to providing the best workplace wellness programs is to gather and assess data from your employees and organization, figure out what matters, and then come up with effective employee wellness ideas.

Why? Because what is trending is not necessarily what is useful to your employees. If it were, there would be no issues of underutilization of current organizational employee wellness ideas. The dismal participation rate for employee benefits plans is 20% .

As such, it is crucial to understand that your employees are unique to your organization, making this the basis for creating wellness program ideas that you can leverage to attract and retain Gen Z top talent.

The next question then becomes how?

Let Your Employees Lead

The challenge of creating the best workplace wellness programs is that you must develop benefits offerings that support the life employees have outside your organization while offering value or a quality work experience within the organization without messing up your bottom line.

The good news is that employee wellness and work-life balance programs that also attract and retain top talent inspire productivity, and peak productivity is suitable for your bottom line. And yes, it starts by letting your employees lead you when curating your wellness program ideas.

For instance, burnout and mental health issues are on the rise in the workplace. As such, prioritizing the well-being of your employees in these areas makes you an employer of choice for Gen Z top talent because they are issues they are dealing with often.

And you can offer support for mental health, employee wellness, and work-life balance by making your workflow easy and efficient and providing self-help resources to encourage an inclusive internal culture that is equally non-toxic.

Remember, one of the most prevalent causes of employee turnover is poor management and leadership – fostering a healthy and non-toxic work culture will retain your top talent more. Your employees leave your managers, not their jobs, in most cases.

Another example is the provision of long-term disability benefits. These are considered more important than short-term disability benefits because they can replace income and offset medical bills. So, this looks better in your benefits offering, especially if you combine it with worker’s compensation, state disability insurance, or paid family medical leave.

The key is to take a human-centered approach when determining what needs your top talent Gen Z workers have and then creating wellness program ideas that meet these needs. However, you need data and analytics to do this so that you can meet individual employee needs.

That means studying to understand your employees’ persona, how they relate to their work, and their benefits utilization . Then, identify gaps in your benefits strategy from employee feedback and curate new wellness program ideas that meet the direct needs of your employees.

Keep in mind that you are dealing with workers in their 20s. Their needs are much different to millennial employees or boomers close to retirement.

For example, where boomers are more concerned about their financial wellness after retirement, Gen Z employees might be more inclined to choose employers with a robust pet insurance policy with an added bereavement benefit.

Additionally, Gen Z is more tech-savvy, so solutions like AI therapy chatbots and health wearables contribute significantly to the ease of accessing employee wellness and work-life balance offerings.

Younger employees are also likely to find companies that share their eco-friendly values, which means they might look at a company’s sustainable practices more than they might look at their traveling benefits.

Conclusion: Celebrate and Support Your Employees!

When it comes to collecting the best workplace wellness programs to attract and retain Gen Z top talent, put your employees’ needs first, investing in satisfying your employees requires you to think about their financial, social, mental, physical, and spiritual health.

Offer wellness programs that cover these areas, boost your top talent’s overall wellness, and see your productivity soar and your turnover rates reduced. Don’t let this scare you, too; employee wellness ideas and services like mentorship or volunteer opportunities can help you offer a holistic wellness program without necessarily breaking the bank.

Be creative, think about what top talent Gen Z employees need, and commit to offering what suits them best – it will work in favor of your company.

If you need help curating benefits that attract and retain top talent Gen Z workers or workers that appeal to your organization, talk to us.

What Are the Best Employee Benefit Plans for a Company of Our Size and Industry?

mwangielton@gmail.com (Elton Mwangi) — Mon, 26 Feb 2024 15:11:13 GMT

In an era where talent acquisition and retention have become battlegrounds for companies, the importance of a robust employee benefit plan cannot be overstated. The challenge is in attracting and retaining the modern discerning worker who prefers purpose and a better quality of life to a bigger paycheck.

But it doesn't stop there: you also need an attractive employee benefit plan to stop your top employees from hopping between industries in non-traditional roles to keep them for the long haul. Think giving your employees an elevated experience in your organization that makes you stand out.

This is where offering robust employee benefits solutions comes in. Your industry, employee preferences, company goals, and company size influence the employee benefits solutions you rely on. So, how do you choose the best employee benefits services for your company – ones that fit your industry and size?

It Depends on The Type of Employee Benefits Services You Need

We say NEED here because, just because an employee benefits solution falls under the top offerings to consider for your company , it does not necessarily mean that it will fit your organizational and employee needs. So, consider what you should get based on your desired employee benefit plans.

There are Mandatory Employee Benefits Services

These are benefits you must have because they are required by law. They may change based on your state or region, but the three mandatory employee benefits solutions you must have include:

Workers Compensation Insurance

Apart from Texas, every state in the United States requires employers to provide workers' compensation insurance. It takes care of medical expenses and out-of-work care plus wage contribution when an employee is injured on the job.

Social Security and Medicare Contributions

The law requires employers to provide social security and Medicare to ensure employees with disability, the elderly, survivors, or retirees have medical and financial protection through FICA.

Unemployment Insurance Contributions

This ensures that employees who lose their jobs through no fault of their own have something to tide them over until they get employed again.

Of the three, unemployment insurance is the only contribution made by the employer. Employees and employers contribute to Medicare, Social Security, and workers' compensation. In other states like New Jersey, New York, and California, it is also mandatory for employers to provide disability insurance.

Other states also require employers to provide Family and medical leave as per the Family and Medical Leave Act or Health Insurance as per the Affordable Care Act.

Some Meet Your Industry's Standard

Several employee benefits are not mandated by law but have become industry standards, especially in competitive sectors aiming to attract and retain top talent. They have become benchmarks in many industries for companies seeking to stand out as employers of choice.

They reflect a commitment to employees' well-being and satisfaction, directly impacting recruitment, retention , and overall company culture. Here are examples of such benefits:

Health and Wellness Benefits

Beyond basic health coverage, offer comprehensive health insurance plans that cover dental, vision, and mental health services. Corporate wellness programs have also become significant for creating a competitive edge. This can include initiatives such as gym memberships, fitness challenges, on-site wellness activities, or stipends for personal health and wellness use.

Retirement and Financial Planning

Contributions that sometimes include employer-matching, like 401(k) Plans or Similar Retirement Savings Plans, fall under this category. As part of your financial planning services, offer access to financial advisors or planning tools that help employees manage their finances, including retirement planning, investments, and savings strategies. If your budget allows, make your contributions exceed the minimum requirements.

Work-Life Balance

Allow employees to adjust their working hours to suit their personal lives better. Provide the technology and support for employees to work from home or other locations as a permanent option. Also, incorporate generous PTO policies, including vacation days, personal days, and sick leave, that go beyond legal requirements.

Professional Development

Programs to support employees who wish to pursue further education related to their field of work, like tuition reimbursement, give an organization an edge in recruitment. Don't forget training and development programs: On-site or online courses, workshops, and seminars contributing to professional growth and skill development.

Then Others Are Perks to Retain Your Modern Discerning Worker

Known as fringe benefits, these are extra perks that you can add to your traditional employee benefits solutions to set yourself apart from competitors. Typically, fringe benefits are holistic, meaning they cover every employee's mental, physical, emotional, and social aspects.

Over the years, some fringe benefits have made it to the list of employee benefits solutions considered industry standard. Some of these include work-life balance benefits, health and wellness benefits, and personal development or educational benefits.

So, this is where tailoring your employee benefits solutions to meet your immediate employee needs becomes critical. Focus on benchmarking benefits when considering what to include in your industry standard benefits. But here, really hone in on what your employees need and what your organization requires to be one step further in being an employer of choice.

For instance, if you provide corporate wellness programs, go a step further and provide paid leave for new parents, including adoptive and foster parents, which is more extensive than the FMLA requirements (where applicable).

Add daycare and eldercare programs for mothers and caregivers in the office. To support mental health initiatives, offer weekly counseling employee benefits services. Have a monthly program dedicated to health discussions like addiction or chronic illness, etc. You can also add benefits such as on-site childcare, child care expense reimbursement, or flexible spending accounts for dependent care.

The Strategic Advantage of Partnering with Employee Benefits Brokers:

The strategic selection of employee benefits services cannot be underestimated. This is where the advantage of Employee benefits brokers comes in: a broker's insight into employee benefits solutions can identify plans that scale to your size and resonate with industry-specific challenges, ensuring every dollar invested in benefits works harder for you.

Employee benefits brokers also bring a wealth of knowledge and expertise that allows them to offer invaluable insights that can help tailor a benefits package that not only meets the diverse needs of your workforce but also aligns with your organizational goals and budget.

Employee benefits brokers additionally have experience dealing with employee benefits companies and different employee benefits providers. One of the critical roles of employee benefits brokers is to provide businesses with access to a broad spectrum of employee benefits providers.

Brokers maintain relationships with numerous providers, from insurance companies offering health and dental plans to organizations specializing in retirement savings and wellness programs. This extensive network enables brokers to present multiple options, ensuring employers can compare and select the most suitable benefits offerings.

But maybe the most crucial benefit of using employee benefits brokers is that they understand every company is unique with its own challenges, demographics, and industry-specific needs. As such, employee benefits brokers excel in customizing benefits packages that address these unique characteristics.

They work closely with employers to understand their specific requirements and leverage their connections with various employee benefits companies to personalize a package that resonates with the employees' needs.

Whether it's incorporating flexible working arrangements, mental health support, or unique wellness perks, brokers can facilitate a customized approach that stands out to current and prospective employees.

And because the cost of benefits packages is a significant concern for many businesses, employee benefits brokers play a crucial role in ensuring cost efficiency without compromising the quality of benefits offered.

They possess the negotiation skills and market knowledge necessary to secure competitive rates from employee benefits providers. Brokers can often achieve more favorable terms and pricing than a company could on its own, thanks to their understanding of the market and their relationships with providers.

Therefore, employee benefits brokers can and will help you set up the perfect employee benefits solutions for your employees and organization based on your company size and industry. And because employee benefits brokers are not liable to one or specific employee benefits companies, you can be sure they will provide the employee benefits providers that suit your needs.

Conclusion

The right benefits package can significantly influence your position as an employer of choice. Additionally, the size of your company and the sector it operates within are crucial determinants of your benefits needs. This is where the strategic advantage of partnering with employee benefits brokers comes into sharp focus. By leveraging their expertise, employers can unlock a pathway to choosing the right benefits and ensuring these benefits provide a competitive edge in the talent market.

A broker's role extends beyond mere selection; they align your benefits offerings with your overarching organizational goals. Whether you aim to enhance employee satisfaction, improve retention rates, or attract top-tier talent, brokers can tailor their approach to meet these objectives, providing a clear path forward in a complex landscape.

So, for employers looking to refine their benefits strategy or overhaul their current offerings, the call to action is clear: reach out to us today for a comprehensive benefits review and consultation.

Leverage DEI, Combat Retirement Anxiety, Gain A Strategic Advantage

mwangielton@gmail.com (Elton Mwangi) — Mon, 19 Feb 2024 14:54:05 GMT

Let's start by saying retirement anxiety in the current economy is influenced by DEI, and if handled properly, it can give employers a strategic advantage over competitors. Think about it: For the past six years, preparing for retirement has been a major concern for many workers in the US, according to EBRI studies.

Yet, in 2018, only 4 in 10 workers had retirement savings because of limitations like education level, Identity, access to employer-sponsored plans, and time needed to accrue funds for savings, which was influenced by individuals' sense of well-being.

Today, the retirement savings gap is largely influenced by an individual's income.

Here Are the Facts

47% of employees who make at least $200,000 have saved enough for retirement.
34% of employees who make between $100,000 and $190,000 have saved enough for retirement.
20% of employees who make between $50,000 and $99,000 have saved enough for retirement.
12% of employees who make less than $50,000 have saved enough for retirement.

And because lower-income earners have fewer funds left over to save for retirement, they also participate less in employer-sponsored retirement plans, so they rely more on Social Security. That is:

52% of employees who make less than $50,000 plan to rely on Social Security for retirement.
34% of employees who make between $50,000 and $99,000 plan to rely on Social Security for retirement.
20% of employees who make between $100,000 and $190,000 plan to rely on Social Security for retirement.
9% of employees earning at least $200,000 plan to rely on Social Security for retirement.

Additionally,

Only 59% of employees use employer-managed retirement plans.
85% of individuals in the $100,000- and $ 199,000 income brackets participate in an employer-managed retirement plan.
76% of individuals in the $50,000- and $ 99,000 income brackets participate in an employer-managed retirement plan.
The comfortable retirement magic number is $1.27 million .

This shows that individuals participate in retirement plans as their income increases. So, the lower the income, the less likely individuals are to save for retirement. And the problem with this finding is that demographic disparities put certain individuals at risk of leaving work without secure retirement savings. Why is that?

Here's an Excellent Example

Men have a better chance of reaching the retirement magic number because they are technically paid more than women for the same position. For instance, the median household income for women is $59,000, while for men it is $82,000.

That is why, on average, women still at work have about $20,000 in retirement contributions, while men have about $70,000 in retirement contributions. And suppose you look at the wage gap between individuals in rural areas and those in urban centers. In that case, rural workers tend to have lower household incomes (While 27% of urban workers are confident they can retire comfortably, only 17% of rural workers can say the same).

But Why DEI?

Many employees from marginalized communities face systemic barriers to financial stability, including lower average incomes, higher unemployment rates, and less access to financial education. DEI initiatives focusing on equitable pay, promotion practices, and access to financial planning resources can help level the playing field, allowing these employees to contribute more towards retirement.

Also, different groups have varying levels of trust in financial institutions and knowledge about retirement planning. Tailored financial wellness programs that respect cultural nuances and provide education in accessible formats can empower employees with the knowledge they need to make informed retirement planning decisions.

Remember, too, that traditional retirement plans might not meet the needs of all employees. For instance, some might prefer investments in ethical funds, while others might value plans that allow for early withdrawals in cases of financial hardship without penalties. Designing retirement benefits with diverse needs in mind ensures that more employees can participate meaningfully in these plans.

How to Turn This into a Competitive Advantage

Start with benefits education. 9 in 10 of your employees want to understand their employee benefits and how they can utilize them, especially for retirement purposes. And they want their managers to be involved in the educational process.

Include training courses on savings investments for every employee in the organization regardless of rank – diversity without inclusion is a waste of time . Give your employees insight into alternative savings streams. If you have an opportunity for overtime in your organization, distribute them equally.

You can also consider adding benefits like deferred annuity to act as an additional income stream for your employees, but only if it makes sense for your organization and bottom line. Another benefit option would be to pay off your employees' student loans or match their contributions .

Additionally, reinforce meaningful employment for your employees and expand your retirement package. Work on reducing the wage gap for your employees. Create a culture where women and men have the same probability of achieving secure retirement because they both have access to better pay, employee benefits plans, and wellness initiatives that meet the needs of both men and women.

For instance, you can provide paid leave days for caregiving or parenting since these are roles dominated by females, and they go unrecognized in the office. Review and enhance your employee benefits package to ensure it meets the needs of a diverse workforce, including health care, retirement plans, and wellness initiatives.

Continuously monitor the effectiveness of your strategies to reduce wage gaps and ensure equitable retirement security. Be prepared to adjust policies as needed based on feedback and outcomes. Create channels for employees to provide feedback on pay equity, benefits, and workplace culture, ensuring their voices are heard and considered in decision-making.

But most of all, cultivate an organizational culture that values and respects diversity, encouraging input and participation from all employees. Actively increase diversity in leadership positions, reflecting the organization's commitment to equity and inclusion.

Some Initiatives to Consider

Targeted Support for Women:

Given the wage gap and career interruptions many women face due to caregiving responsibilities, DEI strategies can include specific measures such as catch-up contributions to retirement accounts for employees returning from parental leave, helping to mitigate the impact of time out of the workforce.

Support for Lower-Income Employees:

DEI policies that advocate for living wages and provide access to emergency savings accounts or low-cost loans can help lower-income employees manage financial emergencies without dipping into retirement savings, preserving these funds for their intended purpose.

Engagement and Representation in Retirement Planning:

Including employees from diverse backgrounds in discussions about benefits design ensures that retirement plans are more reflective of the entire workforce's needs. This representation can lead to higher engagement rates and greater ownership and satisfaction with retirement planning processes.

Conclusion

Creating a culture where women and men have equal opportunities for secure retirement requires ongoing effort, commitment, and willingness to change. By addressing wage gaps, enhancing benefits, and fostering an inclusive culture, employers can build a workplace where all employees have the tools and support they need to achieve financial well-being and security.

And if your employees are less worried about their finances, they will be more inclined to plan for their retirement savings and be more engaged and proactive within your organization. And guess what? DEI initiatives also make for an excellent top-talent attraction and retention strategy.

If you want to make your business more DEI-centred or enjoy a step-by-step guide on how to make your benefits package more DEI-focused, talk to us today.

What Should Employers Know About the New 2024 HSA And FSA Contribution Limits?

mwangielton@gmail.com (Elton Mwangi) — Mon, 12 Feb 2024 14:37:03 GMT

This is what you should know about the new 2024 HSA and FSA contribution limits:

For 2024 FSA limits:

The employee contribution cap has been increased by 5% from $3,050 to $3,200.
As an employer, you can permit your employees to carry over their FSA balance.
The carryover for 2024 FSA limits has also increased from $610 to $640.
You can give your employees a grace period of 2.5 months to use unused FSA funds the following year.

For HSA 2024 limits:

The HSA 2024 limits have reached a record high , with an increase of 7%.
The HSA 2024 contribution limits are $4,150 for individuals and $8,300 for families.
The catch-up contribution limits have remained the same at $1,000.

Why Is This Important?

FSAs and HSAs provide an excellent option for your employees to manage their medical expenses better . And with the rising cost of healthcare in the USA, it is prudent that the health of your employees is comprehensively protected.

Therefore, keeping abreast of the new limits is essential because it ensures your employees are taking advantage of the tax-saving benefits of FSAs and HSAs. At the same time, it provides that they can, at the very least, afford part, if not all, of their healthcare costs – which is vital amidst the continuously rising cost of healthcare .

The flexibility these two accounts offer ensures that your employees can strategically contribute to take care of their immediate health needs. And with the increase in the 2024 HSA and FSA contribution limits, they can account for more treatments or medical expenses .

And with the FSA, employees can enroll in a Dependent Care FSA to ensure their children and adult dependants are cared for and still enroll in an HSA. On the other hand, employees can roll over their HSA funds to the following year and accrue interest to use them as an investment or a savings account.

In a medical emergency, they can use the HSA funds to boost the FSA to ensure medical costs are adequately covered. Therefore, there is no waste of money here. HSAs also allow employees to spend on healthcare expenses, reducing out-of-pocket costs.

Besides, There are Perks for You as an Employer as Well

Knowing how to leverage both can help you provide your employees with a benefits package that meets their needs. And by demonstrating this kind of employee support, you are likelier to increase your employee satisfaction and retention.

Additionally, HSA and FSA contributions allow you to provide your employee's coverage without compromising your bottom line. Your contributions should not surpass the 2024 HSA and FSA contribution limits when added to your employees' contributions.

So, you give your employees control over their medical coverage, protect your bottom line, and enhance satisfaction and retention.

What can You Do?

Empower your workers with information. But with the dissatisfaction employees have felt about their work and employers, you must go beyond basic knowledge to sustain satisfaction and retention at work. Don't settle for ensuring your employees know about their 2024 HSA and FSA contribution limits.

Instead, tell them how to determine eligibility and how they can reduce their taxable income using the 2024 HSA and FSA contribution limits. Don't forget the nitty gritty, like ensuring they know how the individual and family limits differ if they choose an FSA or an HSA.

Give them tips on how to maximize use of the accounts. For instance, if married partners have individual FSA accounts through their employers, they can choose the maximum $3,200 limit and have combined 2024 FSA limits of $6,400. And keep the conversation about the new 2024 HSA and FSA contribution limits going throughout the year until open enrollment.

Conclusion

If your employees worry about their financial health, then you can bet that your productivity and sustainability will also suffer. And among the financial stressors that give your employees sleepless nights is increasing healthcare costs.

So, like it or not, you have a responsibility to your employees to ensure they make the most informed decisions about their benefits and health insurance coverages. To that effect, the new year came with new 2024 HSA and FSA contribution limits that give your employees a chance to better manage their medical expenses.

Consider offering tools or consultations for personalized planning assistance. By actively engaging in these steps, you enhance your employees' financial well-being and foster a culture of care and support within your organization. Contact our team today for resources and expert advice on implementing these changes effectively.

Employees Trust Employers to Choose Reputable Insurance Providers

mwangielton@gmail.com (Elton Mwangi) — Mon, 05 Feb 2024 14:25:27 GMT

Ever stopped to wonder why offering holistic employee benefits solutions at the workplace makes so much sense these days? Everyone wants what's convenient, and your employees are no different. But for your employees, this convenience goes much further than having access to the best employee benefits consultant or employee benefits packages.

Your employees want you to choose the best provider and trust you to make that choice, too!

A 2023 survey done by MassMutual determined that 68% of your employees prefer enrolling in insurance offerings provided by their employers compared to the 65% that would consider provider insurance reviews for ethically responsible brands when using their purchasing power.

Your employees want you to research and choose the best insurance provider. This trust is built on the foundational belief that employers have their employees' best interests at heart. Therefore, fulfilling this trust is paramount, as the repercussions of choosing poorly can significantly impact employee satisfaction, retention, and overall workplace morale.

Why This Trust is Important

Trust is becoming the cornerstone of the employer-employee relationship. When choosing employee benefits solutions, this trust becomes crucial for the success and sustainability of an organization. Here's why:

In an era marked by a fiercely competitive job market, an employer's benefits package is not just a perk but a pivotal factor influencing potential and current employees' decisions.

For current employees, the assurance that their health and welfare are in trusted hands increases their loyalty to the company. This trust reduces the likelihood of turnover, as employees are more inclined to stay with an employer who demonstrates a genuine concern for their well-being.

An employer known for meticulously selecting high-quality employee benefits solutions is more likely to attract top talent - Job seekers today increasingly prioritize companies that offer comprehensive health benefits, viewing them as a reflection of the company's culture and values.

The ripple effect of trust in employer-selected insurance benefits extends into the very atmosphere of the workplace. Knowing their health and well-being are acknowledged and actively valued by their employer contributes significantly to a positive workplace environment.

This acknowledgment fosters a sense of belonging and appreciation among employees, which, in turn, enhances overall job satisfaction.

Employees who feel secure in their health benefits are more focused and engaged. The peace of mind that comes with knowing they have reliable health coverage enables them to dedicate more energy to their tasks and responsibilities.

A culture that prioritizes employee well-being through trusted employee benefits solutions fosters a positive company image internally and externally.

Internally, it cultivates an atmosphere of mutual respect and care where employees feel valued and supported.
Externally, it positions the company as an employer of choice, attracting individuals who value transparency and employee welfare.

Employees' trust in their employers to select reputable insurance providers reflects the company's ethos and commitment to its workforce. This trust is instrumental in attracting and retaining talent , fostering positive workplace morale, and, ultimately, ensuring the organization's long-term success.

By understanding and prioritizing this trust, employers can build a resilient, satisfied, and productive workforce, ready to face the challenges of the modern workplace together.

What Employers Can Do!

Beyond looking at insurance provider reviews to determine the best fit for your organization and employees, you must also ensure the employee benefits solutions you choose meet your legal requirements. So, what can you do to ensure you don't mess up your employees' trust in you to pick the best insurance provider?

Conduct Thorough Research

The foundation of a trusted insurance program lies in your commitment to vetting potential providers comprehensively. Investigate the financial health of insurance providers to ensure they can reliably meet claims. This includes checking your insurance provider reviews for ratings from independent agencies and financial reports.

Also, check the speed and fairness with which a provider processes and settles claims. In your research, ensure your preferred insurance provider offers high-quality customer service, including accessibility, responsiveness, and support. Consider conducting test calls or seeking feedback from current customers to evaluate this.

Solicit Employee Feedback

Engaging employees in the insurance selection process can significantly enhance their trust and satisfaction with the benefits package. So, conduct surveys or hold focus group meetings to understand employees' priorities, concerns, and preferences regarding health insurance.

Ensure you establish open channels for feedback on current insurance offerings to provide insights into areas for improvement or change. Understanding your employee needs ensures that your chosen insurance plans are beneficial on paper and valued and utilized by your workforce.

Educate and Communicate

Transparent communication about insurance options, benefits, and forthcoming changes is vital for building trust. That said, as an employer, you should:

Hold regular sessions to educate your employees about their insurance benefits, how to utilize them effectively, and any changes to policies or providers.

Provide easily accessible, clear, and comprehensive documentation on employee benefits solutions, including FAQs, to help your employees understand their coverage.

Regularly Review and Adapt Benefits Offerings

The dynamic nature of both the insurance market and employee needs necessitates ongoing evaluation and adaptation of employee benefits solutions:

Conduct annual reviews of the insurance landscape, considering new products, changes in laws and regulations, and shifts in the market.

Reassess employee needs regularly to ensure the insurance offerings remain relevant. Changes in workforce demographics, feedback, and industry trends should inform this process.

And if You Want Convenience, Involve an Insurance Broker Throughout This Entire Process!

One thing is sure: you need an employee benefits consultant. This is where an insurance broker comes in - the expertise of professional insurance brokers bridges the gap between employers' intentions and employees' expectations of trustworthy, beneficial insurance coverage.

An insurance broker will fortify this trust by offering:

Expert guidance on selecting the right provider for your business and employees.
Risk management strategies to safeguard your business and employees.
Insight into investing in customized solutions specifically tailored to meet your unique needs.

Besides, the partnership between employers, brokers, and insurance providers creates a foundation of trust and satisfaction, contributing to a positive workplace culture where employees feel valued and protected.

Conclusion

The trust employees place in their employers to select reputable insurance providers is both a privilege and a profound responsibility. When done right, employers can demonstrate their commitment to their workforce's well-being and fortify their organization against the challenges of talent retention and satisfaction.

Ultimately, the effort invested in selecting reputable insurance providers and tailoring benefits to meet employee needs pays dividends in building a resilient, engaged, and loyal workforce . And by partnering with knowledgeable insurance brokers, the result is a healthier, more engaged workforce that feels valued and protected, underpinning the company's broader success and resilience.

Ready to elevate your company's employee benefits solutions and solidify the trust your team places in you? Contact us to partner with a seasoned employee benefits consultant who can guide you through selecting reputable insurance providers tailored to your unique organizational needs.

Elevate Your Managers and Master Employee Engagement and Retention

mwangielton@gmail.com (Elton Mwangi) — Mon, 29 Jan 2024 13:59:46 GMT

Do you know more than a quarter of your employees might be ready to leave their jobs? This is one of the greatest talent retention challenges in 2024: keeping your employees happy and engaged in the workplace. But why is this still a challenge for employers even though the importance of employee retention is clear? What is making employee engagement and retention challenging for many businesses?

Challenge: Your Company Culture is a Mess!

You've offered salary increments, workplace benefits, comprehensive insurance covers, and an employee package to die for, yet you're still dealing with high turnovers or difficulties retaining your employees. Why is that?

"A big reason people leave companies is leadership."

Your innovative employee retention strategies might work on paper, but if your company culture is still lacking, your talent retention challenges in 2024 will remain. Think about it: employee needs are changing.

While many employees prioritized financial benefits in the past, most currently want their emotional needs met, such as respect and workplace motivation. If this need is unmet, they leave for another company that offers an employee-friendly and supportive culture, even if they get a pay cut.

And who can meet this need in the organization? Not your well-thought-out innovative employee retention strategies. No. Your employees' interaction with other employees and mostly your managers determines whether they feel respected, valued, and understood.

Managers especially have a significant influence over your employee engagement and retention rates. Great managers know how to make your employees feel like they are part of the team and an important contribution to the overall success of your organization.

They also understand the importance of inclusion and diversity in the workplace and its importance on employee retention, so they will champion it and support it wholeheartedly.

Read about the connection between retention and diversity here.

Great managers understand the role of motivation in employee retention, so they keep your employees engaged and motivated, even amid uncertain economic times.

Fact: great managers lead to a 72% reduction in employee turnover.
Fact: great managers increase employee motivation at least 3.2 times.
Fact: great managers increase employee job satisfaction by 13.9 times.

You consider your managers great because they are well-trained and experienced. So, where are you missing the mark? Well, great managers are emotionally intelligent. This separates managers who ensure tasks and organizational checklists are met from managers who understand the role of motivation in employee retention.

By emotional intelligence, we mean managers who understand and manage their emotions and recognize and influence the emotions of others. The ability to influence the emotions of others is a skill many find hard to adapt.

That is why, even though all managers understand the importance of employee retention in the workplace, many don't have the emotional intelligence to enhance employee engagement and retention because it requires soft skills related to emotional awareness, empathy, interpersonal communication, and stress management.

As your first challenge, emotional intelligence boards well on self-awareness and the complexity of emotions. Developing self-awareness is challenging because it requires honest self-reflection and the willingness to acknowledge and work on one's weaknesses.

Additionally, emotions are complex since they are influenced by various factors, including past experiences, cultural norms, and personal values. Understanding and managing this complexity in oneself and others can be challenging.

Beyond this, it is equally important to know how to interpret and respond to the emotions of others accurately. This requires practice and can be particularly challenging in diverse or conflict-prone environments like a workplace.

What You Should Do!

Upskill your managers. It sounds simple, but it is not because the key to beating this talent retention challenge in 2024 is improving your manager's emotional intelligence. That means giving your managers great attention while incorporating training and coaching sessions to enhance their emotional intelligence.

Part of this employee turnover solution is to enhance your manager's soft skills to help them build relationships with your employees that foster employee engagement and retention through increased reliability, well-being, and satisfaction. That means:

Teaching your managers to be empathetic
Teaching managers how to empower employees.
Teaching managers how to inspire engagement and workplace connection.
Teaching managers how to develop their employees' skills.
Teaching managers how to listen to employees.

Conclusion

One cornerstone of talent retention lies in the hands of our managers. And so, the talent retention challenges in 2024 require a leadership team equipped with emotional intelligence, empathy, and the ability to connect with employees genuinely.

By fostering a culture of understanding, support, and genuine engagement, businesses can unlock unprecedented employee satisfaction and loyalty levels. The future of talent retention hinges on our ability to elevate leaders who can inspire, motivate, and retain the very best of our workforce.

What are the best mid-sized business insurance options for 2024?

mwangielton@gmail.com (Elton Mwangi) — Mon, 22 Jan 2024 13:04:02 GMT

If you own a mid-sized business, one challenge you have is balancing your significant yet finite resources - It’s prudent to come up with strategies that safeguard your bottom line. This is where mid-sized business insurance options come in.

But it’s more than getting the best mid-sized business insurance. The decision to pick an insurance option for any employer is pivotal because:

Selecting the right business insurance options cements a foundation of resilience.
Miss the mark and you expose your business to vulnerabilities that threaten its very core.

Making the right Mid-sized business insurance options choice:

Gives you a bulwark against a range of potential legal, operational, and financial risks, securing the company's future.
Ensures your business remains operational even in the face of unexpected disasters or legal challenges.
Shows your dedication to your team's welfare, which is crucial for attracting and retaining top talent.

On the other hand, making the wrong Mid-sized business insurance options choice:

Leaves your business vulnerable to potentially crippling legal actions and financial liabilities.
Can leave your business vulnerable to minor mishaps that spiral into major disruptions with severe implications for your business's continuity and profitability.
Can tarnish your reputation, eroding trust among customers and demoralizing employees.

You have no choice but to get it right by making informed, strategic insurance choices. So, what are the best mid-sized business insurance options for 2024?

Read about our choice of carriers for mid-sized to large businesses here .

Liberty Mutual Insurance

When it comes to choosing the best Mid-sized business insurance options, Liberty Mutual Insurance becomes the premium choice because:

It has established itself as a leading provider in the insurance industry, particularly for mid-sized businesses seeking comprehensive and flexible insurance solutions.
Its reputation for delivering a broad spectrum of mid-size business insurance options makes it an ideal partner for businesses aiming to navigate the complexities of today’s market with confidence and security.
It offers an extensive range of insurance products tailored to mid-sized businesses including property, casualty, and specialized risk coverage.
It commits to providing customizable insurance solutions.
It offers products and services that go beyond mere risk protection, services perfect for mid-sized businesses like:

Risk Assessment and Management Services
Claims Support
Global Reach with Local Expertise

Liberty Mutual Insurance emerges as a top choice for Mid-sized businesses looking for an insurance provider that offers a comprehensive range of coverages, customizable solutions, and a deep understanding of their unique needs in 2024.

Chubb

Chubb is a global leader in employee benefits and professional liability coverage. That means, for your mid-sized business employee insurance options, Chubb takes the win .

Besides, with its robust global presence and deep-rooted expertise, Chubb offers employee benefits solutions that are both comprehensive and reliable, tailored to meet the diverse needs of today's dynamic business environment.

This is what you can expect from Chubb:

Employee benefits solutions that stand out for their comprehensiveness and designed to support businesses in attracting and retaining top talent.
Professional liability coverage is designed to protect businesses against the risks associated with the delivery of professional services.
A global footprint that gives mid-sized businesses operating in or expanding into international markets access to localized professional liability and employee benefits solutions with cross-border expertise and additional risk management services.

Chubb offers a competitive range of employee benefits solutions that create a supportive environment that values employee well-being and security, which include health and wellness programs, life and disability insurance, and travel and accident insurance.

With professional liability coverage, Chubb covers claims of negligence, errors, omissions, and the financial repercussions of legal action, making it excellent for mid-sized businesses in consulting and financial services, technology and media, and healthcare.

The Hartford

With a history that spans over two centuries, The Hartford has developed a deep understanding of the unique challenges and needs of small to mid-sized businesses, offering a robust portfolio of business insurance coverages that cater to a wide spectrum of requirements. Expect:

An extensive range of mid-sized business insurance options that provide holistic protection through worker’s compensation, general liability insurance, and commercial property insurance.
Specialized mid-sized business insurance options to address the nuanced risks faced by different industries, from technology and professional services to retail and manufacturing.
Tailored solutions for mid-sized businesses, like customizable insurance packages, risk management, and loss control services, and dedicated claims services.

Besides its focus on mid-sized business employee insurance, The Hartford also focuses on customer service and support by offering expert guidance and industry-specific solutions.

CNA Insurance

For high-risk business insurance, consider CAN insurance, which caters to the needs of mid-sized businesses across a variety of sectors with heightened risk profiles. Its extensive portfolio of commercial insurance products, combined with deep-rooted expertise in risk management, positions CNA as the insurer of choice for mid-sized businesses facing complex risk environments. You will get:

A broad spectrum of commercial insurance products like property and casualty insurance, professional liability insurance, worker’s compensation, and cyber liability insurance.
An insurance provider with expertise in high-risk business insurance and risk management.

Each of CNA’s offerings is designed to address the specific challenges faced by businesses operating in high-risk sectors, ensuring comprehensive protection against potential threats. The provider identifies and assesses risks, implements risk management strategies, and customizes insurance solutions for mid-sized businesses.

With a focus on tailored, industry-specific coverage, CNA empowers businesses to operate confidently, knowing they are prepared for and protected against the risks inherent to their operations.

Conclusion

For mid-sized businesses aiming to thrive in 2024 and beyond, selecting the right insurance partner is pivotal. The landscape of business risks continues to expand, making the need for comprehensive and customizable insurance solutions more critical than ever.

Providers like Liberty Mutual, CNA Insurance, and Chubb stand at the forefront of this need, offering a blend of innovation, expertise, and reliability. Ultimately, the best mid-sized business insurance options for 2024 are those that align closely with your company's specific needs and growth ambitions, ensuring a stable and prosperous path forward.

Get it wrong, and you may face vulnerabilities that could jeopardize everything you've worked hard to build. Ready to secure your business's future with the perfect insurance coverage for 2024? Don't navigate the complex world of business insurance alone.

Let us guide you through the process, ensuring your mid-sized business is matched with the best insurance options tailored to your unique needs.

How Rising Healthcare Costs Implicate Employers

mwangielton@gmail.com (Elton Mwangi) — Mon, 15 Jan 2024 12:25:07 GMT

Inaction for any employer is not an option.

Just look at the landscape of healthcare recently. It is characterized by a significant trend: the relentless rise in healthcare costs. In 2023, the average cost of employer-sponsored health insurance increased by 5.2% per employee, which amounted to $15,700.

This year, medical benefits are expected to cost 8.9% more . And if that's not worrisome, prices of numerous drugs are expected to increase despite the Medicare drug price negotiations . This trend presents a national economic concern and a pressing issue for businesses and employers.

Small business employers are especially facing potential significant volatility and higher healthcare cost increases since their average per-employee cost of health insurance is $16,464, making it harder to plan and budget for medical benefits.

So, what can employers do to face these challenges in healthcare? Understand the effects of rising healthcare costs and implement healthcare cost management strategies.

THE IMPLICATIONS OF RISING HEALTHCARE COSTS FOR EMPLOYERS

IMPLICATION 1: INCREASED FINANCIAL BURDEN

Cost containment in healthcare has become a crucial aspect of financial planning for businesses because one of the most immediate effects of rising healthcare costs is the increased financial strain on employers. Think:

Increased Healthcare Expenditures: The escalation in overall healthcare spending is one of the fundamental drivers of rising costs. This includes higher charges for medical services, pharmaceuticals, and medical devices. As healthcare providers face increasing costs, these expenses are passed down the chain, ultimately impacting insurance premiums.
Advanced Medical Technologies and Treatments: The continuous development of new and advanced medical technologies and treatments, while beneficial for patient care, often comes with a high price tag. Integrating these innovations into standard healthcare practices increases healthcare costs, which insurers reflect in their premium calculations.
Chronic Diseases: The demographic shift towards a rise in chronic diseases has increased the demand for healthcare services. Physical health is especially on the decline, and individuals with chronic conditions typically require more frequent and intensive healthcare interventions, contributing to overall healthcare spending and, consequently, higher premiums for employers.
Profit Margins and Risk Pooling: As healthcare costs rise, insurers adjust premiums to ensure profitability and maintain their ability to cover the claims of their policyholders. This adjustment often results in higher premiums for employers who provide health insurance to their employees.

These challenges in healthcare necessitate a strategic approach to healthcare cost management like:

Exploring Alternative Insurance Plans: In 2023, 60% of large employers offered at least three plan choices to workers at their largest departments. That is because providing alternative plans becomes affordable for the employer. For instance, transitioning to HDHPs coupled with Health Savings Accounts (HSAs) can be cost-effective. These plans have lower premiums but higher deductibles, encouraging employees to be more mindful of their healthcare spending.
Implementing Wellness Programs: Offering programs that focus on preventive health can reduce long-term healthcare costs. This includes regular health screenings, flu vaccinations, and health education. For employees with chronic conditions, specialized programs can help manage their health better, reducing the frequency of expensive treatments or hospitalizations. Encourage healthy behaviors through company-wide challenges focused on physical activity, healthy eating, or smoking cessation.
Leveraging Tax-Advantaged Health Accounts: For employers offering HDHPs, HSAs are a great way to provide employees with a tax-advantaged way to save and pay for qualified medical expenses. Flexible Spending Accounts (FSAs) also allow employees to set aside pre-tax dollars for healthcare expenses, reducing their taxable income and the employer's payroll taxes. Employers can additionally use Health Reimbursement Arrangements (HRAs) to reimburse employees for qualified medical expenses up to a certain amount. This is particularly beneficial for smaller businesses looking for flexible options.
Employee Education: Educating employees about their healthcare options and how to use their benefits efficiently can lead to more cost-effective healthcare decisions.
Telemedicine Services: Offering telemedicine can reduce the need for more costly in-person visits for non-emergency medical advice.
Direct Contracting with Healthcare Providers: Negotiate directly with healthcare providers or local clinics for better service rates.

IMPLICATION 2: EMPLOYEE SATISFACTION AND RETENTION CHALLENGES

Another critical impact of escalating healthcare costs is on employee satisfaction and retention. As healthcare expenses rise, employers may be forced to pass some of these costs onto their employees, which can lead to dissatisfaction and, consequently, a higher turnover rate.

For instance, employees may face substantial out-of-pocket expenses with plans with higher deductibles and co-pays. This can lead to financial strain, especially for those requiring regular medical care or those with chronic health conditions.

In worst-case scenarios, affordable plans for employers and businesses might mean reduced coverage and value for the employee, leading to dissatisfaction, reduced morale, and engagement. And if preventative measures are thrown out of the window, delayed treatment can cause absenteeism and retention challenges.

So, employers must balance managing healthcare costs and maintaining a benefits package that meets employee needs and expectations. Effective healthcare cost management involves investing in employee education about healthcare benefits, exploring flexible benefits packages that cater to diverse needs, and promoting a culture prioritizing health and wellness.

And if changes in benefits offerings must occur, then transparent communication about any changes in healthcare benefits, efforts to provide affordable options, and investing in employee health and wellness can help mitigate the negative impact of rising healthcare costs on employee satisfaction and retention.

These efforts not only aid in cost containment in healthcare but also enhance employee engagement and loyalty.

IMPACT ON SMALL BUSINESSES

The effects of rising healthcare costs are particularly pronounced for small businesses. Small businesses typically have less negotiating leverage with insurance providers than larger organizations. This limitation often results in higher premiums and less favorable terms, making it difficult for small businesses to secure affordable health insurance options for their employees.

Due to their smaller size, the per-employee cost of providing health insurance is generally higher for small businesses. They lack the economies of scale that larger companies enjoy, which can spread the risk and administrative costs over a more extensive employee base.

Additionally, small businesses often operate with tighter profit margins. The increasing costs of healthcare benefits can significantly eat into these margins, leaving less capital for business growth, investment, or basic operational costs.

So, what can you do as a small business? Get an insurance broker to help you navigate the challenges in healthcare costs. A broker will help you:

Get reputable Professional Employer Organizations (PEOs) that align with your specific needs and assist in the negotiation process. PEOs enable small businesses to pool together to negotiate better health insurance rates.
Identify appropriate Association Health Plans (AHPs) for small businesses and facilitate the joining process, ensuring compliance with state and federal regulations. AHPs can lower premiums due to a larger pool of insured individuals and greater bargaining power.
Select the right HDHPs and set up HSAs, explaining their benefits and tax implications to employers and employees. HDHPs often have lower premiums than traditional plans. When combined with HSAs, they offer tax advantages and savings on medical expenses.
Understand your eligibility for tax credits, which can offset the cost of providing health insurance and guide you through the application process.
Gain access to multiple insurance providers, explore different insurance options, and obtain and compare quotes, saving time and resources for your small businesses.

CONCLUSION:

From increased financial burdens to the delicate balance of maintaining employee satisfaction and retention, the road ahead requires strategic navigation and informed decision-making. By exploring alternative insurance plans, implementing wellness programs, leveraging tax-advantaged health accounts, and embracing employee education, employers can pave a way forward that is both financially viable and beneficial for their workforce.

With the guidance of skilled insurance brokers, businesses facing these unique challenges are not without options. Besides, the objective is clear: to foster an environment where employees' health and well-being are upheld and businesses, big and small, can thrive without being overburdened by the weight of healthcare costs.

So, don't let the burden of rising healthcare costs undermine the health of your business and employees. Reach out to us : we'll help you make informed decisions.

With Form w2 and 1095 Deadlines Just Around the Corner, What's Changed?

mwangielton@gmail.com (Elton Mwangi) — Mon, 08 Jan 2024 12:06:11 GMT

The New Year has brought plenty of issues impacting the benefits industry that every employer should know about. The new IRS regulations and transparency requirements are at the precipice of these issues. So, what has changed, and what remains?

WHAT’S NEW : THE IRS TAX FILING HAS A NEW THRESHOLD

While the new IRS instructions for prepping, distributing, and filing the 2023 Forms 1095 B/C and 1094 B/C remain mostly the same, the electronic threshold for filing has changed.

Where employers were required to file electronically if they had at least 250 aggregate forms, now employers with ten forms in aggregate are required to file electronically.

You must file electronically if you cumulatively submit at least ten forms to the IRS tax filing system, including ACA Forms 1094.1095, w2 forms, and 1099s.

Here is an example: Suppose you have;

Three 2023 Form w2's to file
Six 2023 Forms 1095 B to file
And one 2023 Form 1094 B to file

In that case, you must file all of them electronically with the IRS.

Another example: Suppose you have;

Three 2023 Form w2's to file
Five 2023 Forms 1095 C to file
One 2023 Form 1099 to file
And one 2023 Form 1094 C to file

In that case, you must file all of them electronically with the IRS.

The IRS tax filing has an established Affordable Care Act Information Returns System (AIR) for electronically filing your forms.

WHAT CAN YOU DO AS AN EMPLOYER?

Determine how many aggregate forms you must file to the IRS and then do it electronically if they pass the new ten-form threshold. Here is a link to an in-depth IRS guide on the filing requirements. Reach out to us if you need guidance on filing your ACA forms.

Large business employers with 50 or more full-time employees should offer any employee who worked full-time for a month a Form 1095 C. Don't forget to file your Forms 1095 C and 1094 C together with the IRS.

If you need 1095 C codes or 1095 C instructions, visit the IRS tax filing website or contact us for a detailed but simplified guide.

Don't forget to confirm whether your state requires an additional annual filing – states like Massachusetts, Rhode Island, The District of Columbia, California, and New Jersey do.

WHAT ABOUT SELF-FUNDED PLANS?

For small business employers offering level-funded, self-funded, or an alternative method of funding, check with your vendor and confirm how this change affects you and whether you will incur charges for completing your annual returns.

Use Form 1095-B for self-funded employees and your IRS report for individuals with minimum essential coverage. Also, ensure you provide Form 1095 C and 1095 B to every employee in the self-funded plan, whether full-time or part-time, as you file with the IRS.

HERE ARE YOUR DEADLINES!

FILING WITH THE IRS

If you are submitting Forms 1094 and 1095 by mail, the deadline is on 28th February 2024.

If you are submitting electronically, the deadline is on 31st March 2024.

PROVIDING YOUR EMPLOYEES WITH THEIR RECORDS

Employees who worked full-time for at least a month should receive their Form 1095 C by 1st March 2024.

The Form 1095 deadline for giving copies to your employees is also on 1st March 2024.

STATE 1095 DEADLINES

State 1095 deadlines start on the 31st of January and go up to the 30th of April 2024.

LACK OF FILING RESULTS IN PENALTIES

Failure to meet 1095 deadlines or the 1095 C instructions, or if you report incorrect information, will result in IRS penalties. For instance, the penalty for failing to file a 1095 C form is $310 but with a cap of $3,783,000.

Failing to follow the 1095 C instructions follows a similar penalty structure.

Note: If you have reasonable cause for failing to file, a tax professional can help you get a waiver for the penalties.

CONCLUSION

Don't spend 80 hours of your year worrying about ACA compliance . Depend on us to help you get through this burdensome process with ease. We help you collect adequate and accurate employee data, show you how to report to the IRS tax filing system, and notify your employees about their ACA enrollment and eligibility. Let us help you manage your ACA compliance. Contact us today.

Why You Should Prioritize Pre-Tax Voluntary Benefits Over Core Benefits

mwangielton@gmail.com (Elton Mwangi) — Mon, 01 Jan 2024 11:48:29 GMT

You offer your employees medical coverage, life insurance, dental coverage, and other benefits, but it’s rare we get the chance to save them money. Pre-tax benefits allow you to save your employees and the company money.

Once certain legally required benefits are offered, you can prioritize pre-tax voluntary benefits over core benefits.

LEGALLY REQUIRED BENEFITS

The U.S. Department of Labor Statistics categorized employee benefits into two categories:

Voluntary Benefits

Short-term disability

Pet insurance

Group life insurance

Tuition reimbursement

401(k) savings plan

FSA & HRA accounts

And many more

Legally Required Benefits

Social Security & Medicare

Unemployment insurance

Worker’s Compensation Insurance

Paid Family Medical Leave (FMLA)

Legally required benefits are meant to help employees if they experience a loss in wages due to a workplace injury, loss of work, a disability, or because an immediate family member fell ill.

Disability insurance is required in certain states like New York, New Jersey, Rhode Island, Hawaii, California, and Puerto Rico. Applicable large employers (ALEs) are required to offer adequate and affordable employer health coverage.

Applicable Large Employers (ALEs): Employers with 50 or more full-time or full-time equivalent employees.

What’s considered to be “affordable” is adjusted by annual inflation. Giving access to a network of specialists and providers allows you to meet the minimum value standard of adequate medical coverage.

Check with your benefits administrator if you have questions regarding your particular state’s requirements.

WHAT PRE-TAX BENEFITS DO FOR YOU

Pre-tax benefits are deducted from the employee’s paycheck before state and income taxes are deducted, in turn reducing the taxable income amount.

What Are Pre-Tax Voluntary Benefits?

By lowering your employee’s taxable income, you also lower the amount you pay in employee-related taxes.

Employee Related Taxes

Federal Unemployment Taxes (FUTA)

Federal Insurance Contributions Act (FICA)

State Unemployment Insurance Tax (SUI)

It’s great to be able to save money, but will employees want the pre-tax fringe benefits you’re offering?

FRINGE BENEFITS EMPLOYEES WANT MOST

To stay competitive in the job market as an employer, you might have to beef up your benefits package. The pandemic made employees really consider which benefits matter the most and which ones were just okay.

An employee benefits survey was done last year in 2020 by Fractl and they asked employees which benefits they wanted most. Here are some of the top fringe benefits employees are looking for in 2021.

BETTER MEDICAL & DENTAL BENEFITS

Better medical and dental benefits ranked the highest, 88% of employees would take this into consideration before selecting the job. 54% would even strongly consider before making their choice.

STUDENT LOAN DEBT & TUITION ASSISTANCE

With student loan debt constantly growing, employees placed these two benefits at numbers 6 & 7 on the survey. As the cost of college and related debt continues to rise, more employees will seek employers offering student loan debt and tuition assistance.

FREE MEALS, SNACKS, & BEVERAGES

Surprisingly, free food still made the list. This benefit may not be a defining factor when it comes to an employee selecting a job, but employees do consider it as a nice benefit to have.

PET INSURANCE

During the pandemic, many people adopted pets to combat the feeling of isolation, even without the pandemic 106.1 million Americans own either a cat or a dog. It’s no wonder employees are looking for this voluntary benefit more often.

Especially since 45% of employees will spend about the same or more on their pet’s medical care than on their own.

PERKS & OTHER BENEFITS

We’ll close out this list with a couple of perks that employees want.

Flexible work hours

4-day workweek

Flexible work hours are only second to better employer health coverage with 40% of employees wanting flexible work hours and 37% of employees wanting the option to work remotely.

WHAT’S MOST ECONOMICAL FOR EMPLOYERS

Trying to figure out which benefits to offer employees can be difficult, you want to satisfy your employees without breaking the bank. Don’t worry it is possible.

Once you’ve covered the bases of the legally required benefits, you can begin prioritizing pre-tax benefits to help the employee and the company potentially save money.

The most economical benefits for employers are:

Student Loan Debt Assistance

Student loan debt assistance isn’t pre-taxed, but it is tax-exempt. You can contribute a maximum of $5,250 per year and it is not counted toward the employee’s overall gross income. You’ll be able to pay less in employee-associated taxes.

Free Snacks & Beverages

Free meals, snacks, and beverages are 50% tax-deductible until 2026, even for remote workers during virtual meetings, virtual happy hours, and work-related recreational activities.

Flexible Work Hours & 4-Day Work Week

These perks aren’t pre-tax or tax-exempt, but they are worth it. If it’s feasible for your company and your industry, flexible hours and a 4-day workweek don’t cost a lot of money to initiate.

FSAs & HRAs

Federal Spending Accounts and Health Savings Accounts are pre-taxed and will lower the employee’s taxable income. You’ll pay less in employee-associated taxes yet again.

FSAs and HRAs are great to help counterbalance expensive co-pays, prescription costs, and high deductible health coverage plans.

These are just a few possible options to make your employee benefits package more economical for you, while giving employees what they’re asking for. There are many other options to choose from ranging in cost and flexibility with different features.

Speak with your benefits administrator to find out what fits your company and employees the best. If you’re located in New York, Zupnick & Associates can answer any questions regarding legal requirements, core benefits, fringe benefits, and pre-tax benefits.

Reference-Based Pricing Is Reducing Healthcare Prices For Business Owners

mwangielton@gmail.com (Elton Mwangi) — Mon, 25 Dec 2023 07:23:31 GMT

According to AHA, while hospital prices are growing at an average of 2.1% annually, health insurance premiums are growing much faster, about twice the average annual increase of hospital prices. So, if you're like most business owners, you're probably grappling with the ever-rising healthcare costs that seem to be spiraling out of control.

But what if we told you there's a game-changing strategy redefining healthcare as we know it? Enter Reference Based Pricing (RBP), a concept that's not just a buzzword but a revolutionary approach to healthcare affordability.

What is it, and How does Reference Based Pricing Work?

Simply put, RBP is a transformative approach that sets payment caps on healthcare services based on a reference point, usually the Medicare rate. This innovative model redefines healthcare costs by making them more transparent and, most importantly, affordable.

There are three key players in this new landscape: healthcare providers, insurers, and patients. Healthcare providers offer medical services, insurers negotiate and pay up to the capped amount, and patients are responsible for any balance remaining.

This triad creates a more transparent ecosystem where everyone knows the game's rules upfront. That is why understanding and adopting reference based pricing can be a game-changer for business owners.

It offers a viable solution to control expenses while still providing quality healthcare options. For insurance brokers and companies, this could mean more competitive pricing models and increased customer satisfaction, which is a win-win for employers, too.

How Reference Based Pricing is Changing Healthcare

Unlike traditional models, reference based pricing sets a cap on how much will be paid for a particular service, usually based on what Medicare or another benchmark would pay for the same service.

By setting these caps, Reference based pricing aims to make healthcare costs more manageable and understandable for everyone involved, from patients to providers to insurers. This brings transparency and predictability that's been sorely lacking in the healthcare industry.

One of the most significant ways reference based pricing changes healthcare is by controlling and reducing costs. Healthcare systems that have adopted this pricing model have seen an average reduction of 20% in overall healthcare costs.

This is a monumental shift considering the ever-rising healthcare expenses burdening employers and patients for years. One notable example is the California Public Employees' Retirement System (CalPERS), which adopted reference based pricing for hip and knee replacement surgeries.

The result? A remarkable 30% reduction in costs for these procedures, without compromising the quality of care. This case demonstrates that even large, public-sector healthcare systems can benefit from adopting this pricing model.

But it's not just about the numbers; it's about the people. Employers also appreciate the transparency in healthcare costs that make employees feel more empowered to make informed decisions about their care.

This has led to increased employee satisfaction and a greater sense of control over their healthcare decisions. So you see, reference based pricing is a practical solution already delivering tangible benefits across organizations.

So why should Employers Consider this Model?

While there are reference based pricing pros and cons to consider, the benefits are lucrative for employers.

• First, it offers a viable solution to control escalating healthcare costs, a significant concern for any business.

• Second, it enhances employee satisfaction by providing a more transparent and predictable healthcare pricing model, which can be valuable in employee retention and recruitment.

In a nutshell, reference based pricing offers a win-win scenario for employers, delivering both cost savings and increased employee satisfaction. Its growing adoption rates underscore its effectiveness and potential as a transformative healthcare pricing model.

Think about it: Healthcare costs are a significant burden for employers, often ranking as one of the most substantial operational expenses. Reference based pricing allows employers to set a cap on healthcare costs, which helps control expenditures without compromising the quality of care provided to employees.

Reference based pricing also provides transparency by clarifying how much a particular medical service will cost. This can lead to higher employee satisfaction rates, positively impacting retention and recruitment efforts.

Let's not forget that offering a healthcare plan that is both cost-effective and transparent can give a company a significant competitive advantage. It can make the employer more attractive to prospective employees while lowering staff turnover rates.

And the growing regulatory support for reference based pricing, especially in states like California, makes it easier for employers to adopt this model without worrying about legal complications.

So, by adopting Reference based pricing, employers in the insurance sector can achieve cost savings, improve employee satisfaction, and gain a competitive edge, all while aligning with current trends and regulations in healthcare pricing.

Besides, integrating Artificial Intelligence (AI) and machine learning into healthcare analytics is expected to make reference based pricing even more precise and efficient. These technologies can help set more accurate pricing caps and predict healthcare utilization, further optimizing costs.

Additionally, consumer-driven healthcare is a rising trend, and reference based pricing fits perfectly into this paradigm. As consumers become more educated and demand more transparency in healthcare costs, adopting reference based pricing will likely accelerate.

Here is a summary of reference based pricing pros and cons to keep in mind:

Benefits of reference based pricing for employers:

Cost Savings for Patients and Employers: Companies that switch to reference based pricing see a reduction in their healthcare costs within the first year. Employees also report lower out-of-pocket expenses, making healthcare more accessible and affordable for everyone involved.
Increased Transparency in Healthcare Pricing: With reference based pricing, patients, employers, and insurers know the cost of medical services upfront. This level of transparency is unprecedented in traditional healthcare pricing models, where costs are often hidden or confusingly presented.
Potential for Better Quality of Care: Does this cost-cutting affect the quality of care? Interestingly, no. Reference based pricing encourages healthcare providers to offer high-quality services at competitive prices. When providers know they must stay within a particular cost framework, it incentivizes them to optimize their services, potentially improving the quality of care.

The potential downsides employers might face:

Limited Provider Networks: Not all healthcare providers accept reference based pricing, so employers may find their choices restricted. This could mean traveling further for care or not having access to a preferred specialist, which can be particularly problematic for those with specialized medical needs.
Upfront Costs: While reference based pricing aims to make healthcare more affordable in the long run, there may be instances where patients are required to pay the balance if the healthcare provider's charges exceed the set cap. This could result in unexpected out-of-pocket expenses, negating some cost-saving benefits.
Criticisms from Healthcare Providers: Healthcare providers have also raised concerns, arguing that the capped rates may not adequately cover the cost of high-quality care. Some experts worry this could decline the service quality, as providers may cut corners to stay within the pricing limits.

You can also get some reference based pricing answers from our FAQs for business here.

Conclusion: Let's face it: Healthcare in the USA is Expensive and Worsening.

Reference based pricing is emerging as a viable solution to this crisis. But how does reference based pricing work? It's a model that caps healthcare costs based on a reference point, often Medicare rates, bringing much-needed transparency and fairness to the healthcare landscape.

Still, its impact is more important. This means that the role of top reference based pricing companies and their vendors cannot be ignored. Nevertheless, patients, providers, insurers, and reference based pricing vendors all play a vital role in harmonizing a future where healthcare is not just a service but a right, accessible, and fair for all. And reference based pricing is the key.

So, if you need any help adopting reference based pricing for your business, talk to us , Zupnick & Associates.

Your Broker Should Help You Streamline Your Benefits Communication

mwangielton@gmail.com (Elton Mwangi) — Mon, 18 Dec 2023 15:05:56 GMT

In today's fast-paced business environment, the challenge in providing employees with competitive benefits packages lies in ensuring that these benefits are clearly communicated, understood, and, most importantly, utilized. And yet, 50% of your employees don't fully understand your benefits offerings.

When not addressed, this communication gap can lead to underutilization and missed opportunities that cause increased healthcare costs, a loss of productivity, and unsatisfactory employee support.

The cost of miscommunication is even more dire because when employees don't know or understand the full range of their benefits, it diminishes their overall job satisfaction and perception of their employer, leading to increased turnover.

AND SADLY, A WIDE GAP EXISTS BETWEEN EMPLOYER AND EMPLOYEE PERCEPTIONS AND EXPERIENCES.

Two-thirds of your employees believe you are not doing a good job communicating their benefits, and at least half of them don't see the value you place on the benefits you offer. Yet, if asked, you would have outstanding things to say about your offerings and benefits communications.

You are right, benefits are good for business, but do you know what your employees think about your specific offerings?

In 2022, the University of Phoenix reported that while 89% of employers thought their learning and development offerings were sufficient, only 61% of their employees agreed. This is one example of the disparity between employer and employee perceptions of benefits communication.

And your employees want to engage with your benefit offerings. Take the 2022-2023 Aflac workforce report as an example. 82% of employees, primarily millennials, consider the ability to manage their benefits online very significant.

Still, only 67% of employers offer digital benefit management, and even now, the best benefits engagement comes from integrating communication with technology tools or elements that provide practical yet educational solutions to every employee.

So while you are working on providing benefits, you leave a gap if you don't communicate with your employees to determine their exact needs, how to access those benefits, and the right way to use them.

So, to streamline your benefits communication, you need two things:

1. In-person support, this is where we come in.

2. Technology support, we offer suitable recommendations.

The goal is to find the perfect balance between the two.

HOW WILL A BROKER STREAMLINE YOUR BENEFITS COMMUNICATION?

Create a blend between in-person and technology support where benefits are concerned. A broker uses their expertise and technological tools to elevate the benefits communication process by making it more interactive, personalized, and efficient.

First, a broker will facilitate or guide employee surveys to gauge the most desired benefits. This ensures that the final package aligns with employee preferences and needs.

The broker then conducts educational sessions in person or via webinars to explain the nuances of benefits, answer questions, and address any misconceptions your employees might have. Once this is clear, they provide customized communication materials and digital content tailored to the specific benefits you offer.

And in most cases, the broker has access to or partnerships with technology platforms that offer benefits administration tools. These tools help personalize employee communication to further enrich engagement and benefits utilization.

An excellent example is offering access to mobile apps that allow employees to access their benefits information on the go. Using the apps, your employees can view their benefits, understand their coverage, and make changes during open enrollment or qualifying life events.

The apps also have features like chatbots that can answer common queries, thus enhancing engagement and understanding. Mobile apps are also good at offering automated reminders for important dates like open enrollment, health screenings, or wellness challenges.

And with the right features, you can send your employees notifications about upcoming wellness programs they might be interested in.

If your employees still find your benefits complex, the broker will provide resources and FAQs related to the benefits you offer. For instance, they can provide calculators to help employees understand things like retirement contributions and out-of-pocket costs.

The broker also knows how to integrate your benefits communications tools with your existing system. And you'll need a seamless integration to ensure your employees have a one-stop solution for all HR-related queries, including benefits. You can even request a benefits portal to centralize access for your employees.

WHAT AI HAS TO DO WITH YOUR BENEFITS COMMUNICATION

In the world of benefits communication, AI can serve as a bridge between employers and their workforce, ensuring clear, consistent, and personalized communication. For instance, employers that take advantage of developments like telehealth and health monitoring apps give employees the tools to take charge of their health.

Instead of employees trawling through dense benefits manuals or waiting for HR to respond, AI-powered chatbots can answer their queries immediately, ensuring employees engage more in conversations about their benefits, leading to better understanding and utilization.

And instead of static benefits information, provide an interactive dashboard where employees can visualize and interact with their benefits. Also, use AI-driven surveys to collect feedback on your current benefits offerings and analyze the results to determine what's working and what you must remove from your benefits package.

You can also analyze individual employee data and recommend benefits that best suit each employee's needs to ensure higher utilization rates. The aim is to use AI to enhance strategies that value your employees' needs while providing them with the tools they need to lead healthy, productive lives.

CAN YOUR EMPLOYEES REALLY ENGAGE WITH YOUR BENEFITS COMMUNICATION?

Yes. Listening is key. But you must actively listen to your employees and use technology to help you finesse your communication strategies. Think of it this way; employers are responsible for nearly half of the U.S. population's access to healthcare.

So how you design your benefits communication strategy will determine the level of employee engagement you get in return. For instance, your younger workers expect digital health solutions like apps and benefits cards.

But they can't utilize them fully unless they have a benefits advisor to help during healthcare decision-making. And with AI acting as your ears, you can ensure every employee question is answered, and every benefit you offer is utilized.

So talk to us if you crave a better benefits communication strategy.

Pet Insurance: The New Frontier in Employee Benefits

mwangielton@gmail.com (Elton Mwangi) — Mon, 11 Dec 2023 14:50:02 GMT

Employers, listen up! The battle for talent is fierce.

And in this modern corporate landscape, you must constantly seek innovative ways to attract and retain top-tier employees. And forward-thinking organizations are recognizing the value of more unique offerings.

Enter pet insurance, a benefit rapidly gaining traction and proving to be a game-changer in employee satisfaction and retention. And it makes total sense, what with:

• Almost 70% of US households owning at least one pet, making about 90.5 million homes

• Americans spending about $30 billion annually on pet care

• And 94% of pet owners considering their pets part of their family.

And guess what: Millennials, who make up the biggest portion of the labor force in America, happen to be the most significant portion of individuals who own pets. It's clear that this benefit has a broad appeal.

And it's not just startups or pet-centric companies jumping on the bandwagon. As early as 2016, a staggering 34% of Fortune 500 companies were offering pet insurance, according to Forbes. Without a doubt, pet insurance is not just a trend; it's the new frontier in employee benefits.

But Why is Pet Insurance an Important Employee Benefit?

Today, the emotional well-being of employees is as crucial as their financial stability. Often considered family members, pets play a significant role in providing emotional support and companionship. However, the unexpected costs associated with their care can be a source of stress.

This is where pet insurance comes into play, offering financial and emotional relief. Consider this: the cost of a pet scan without insurance can be prohibitively expensive, often running into thousands of dollars.

Typically, the average vet visit can cost between $50-$400 for just a single visit - an emergency vet visit costs between $800 to $1,500 on average, according to CareCredit. So, if a pet needs medical attention, the bills can quickly add up, leaving many pet owners in a financial bind.

But, if the employee has pet insurance as part of their employee benefits, they would be relieved of a significant financial burden, and their emotional well-being would be safeguarded. See, it's not just about the numbers; it's about understanding the deep bond between people and their pets.

By acknowledging and supporting this bond, businesses can foster a more positive, loyal, and productive work environment. And for employees with breeding pets or those planning to expand their furry family, this can be a game-changer.

Advantages of Offering Pet Insurance to Employees

Companies that have embraced this new frontier in employee benefits have reported a 28% lower turnover rate, as per Employee Retention Statistics. Why?

Benefits like pet insurance demonstrate a company's commitment to the holistic well-being of its employees. It sends a message that the organization cares not just about the employee but also about what the employee cares about - in this case, their beloved pets.

Besides, in a job market where multiple companies might offer similar salary packages, unique benefits like pet insurance can be the deciding factor for potential employees. It sets a company apart and can be why an employee joins or stays with an organization.

Adding unique offerings like pet insurance that covers pregnancy can also be the unique selling point that sets you apart. Pet insurance can be your golden ticket to improving employee retention and satisfaction.

So, How do you Offer Pet Insurance as an Employee Benefit?

1. Understand Employee Demand

Start by considering the diverse needs of your workforce. That is, engage with your employees. Understand their needs and the kind of pets they have. Organize feedback sessions or focus groups to delve deeper into your employees' specific needs and preferences regarding pet insurance. Some might prioritize comprehensive coverage, while others might be more concerned about affordability.

2. Conduct Market Research

Begin by researching the top pet insurance providers in the market. Look for those with a solid reputation, positive reviews, and comprehensive coverage options. Some providers may offer plans tailored to the specific needs of your workforce.

This customization can range from coverage types to payment options. Engage with providers who offer group rates. These rates can provide up to a 10% discount on premiums, making it a cost-effective option for businesses. Other providers may provide tiered plans based on the size of your workforce. The larger the group, the bigger the potential discount.

3. Comprehensive vs. Basic Options?

Some plans might cover only accidents and illnesses. Others might offer comprehensive coverage, including routine check-ups, preventive care, and even specialized treatments. Also, explore plans that offer unique benefits, such as pet insurance that covers pregnancy or alternative therapies.

4. Engage with Providers

Schedule meetings with shortlisted providers to discuss terms, coverage options, and pricing in detail. Ensure you understand all aspects of the coverage, from exclusions to claim processes. This will help you make an informed decision and address your employees' queries.

Based on your research, feedback, and negotiations, select the provider that best aligns with your employees' needs and your company's budgetary constraints.

5. Communicate with Employees

Once you've finalized the provider, communicate the new benefit to your employees. Offer informational sessions or workshops to help them understand the coverage, the enrollment process, and the advantages of the new benefit.

Maintain an open communication channel with your employees to gather feedback on the pet insurance benefit. This will help you make any necessary adjustments or improvements.

Important Point to Note:

The pet insurance industry, like all sectors, evolves. Regularly review your chosen plan to ensure it remains competitive and meets the needs of your employees.

What Would be the Cost of Adding Pet Insurance to Employee Benefits

Now, let's talk numbers. Offering pet insurance might seem like a significant investment, but it's more affordable than you think when you break it down. The average monthly premium for pet insurance hovers between $20-$50, as cited by Insurance Premiums.

This cost can vary based on factors such as the type of coverage, the breed and age of the pet, and the geographical location. Depending on your provider and group size, you can secure discounts that reduce the average monthly premium.

Your coverage options will also affect the cost of pet insurance. Comprehensive plans that include preventive care, wellness checks, and specialized treatments will naturally be priced higher than basic plans covering only accidents and illnesses.

Don't forget about your contributions. It directly impacts the overall cost to the company based on whether you're covering a fixed percentage of the premium or offering a set dollar amount. Additional charges might include administrative fees for managing the pet insurance benefit.

Nonetheless, it's a no-brainer when you weigh this against the potential for increased employee satisfaction and retention.

Conclusion: It's Thinking Outside the Box

Pet insurance, the new frontier in employee benefits, offers a unique opportunity to do just that. It's not just about the numbers; it's about showing your employees that you care about them and their furry family members.

So, consider jumping on this trend whether you're a startup or an established firm. Your employees and their pets will thank you.

Ps: If you need help implementing pet insurance as part of your employee benefits, talk to Zupnick & Associates .

Why An Insurance Broker Is Still Better Than Your Online Resources

mwangielton@gmail.com (Elton Mwangi) — Mon, 04 Dec 2023 14:36:27 GMT

Let's play devil's advocate for a second. Without an insurance broker, you have direct control over your insurance policies and a plethora of online resources to help you navigate the entire insurance process. And what is it with technology making our work easier day by day?

But how confident should you be to successfully acquire and implement not just the insurance coverage options that make sense but those that meet the needs of your employees and your business? Again. How confident are you?

Well, I'll tell you what, an insurance broker carries this level of confidence, and then some, into every business meeting, negotiation, or system they use for their clients. This is the superior level of expertise you want when dealing with insurance companies.

EVERY INSURANCE COMPANY NEEDS TO MAKE A PROFIT!

You must always assume the insurance company will prioritize its bottom line over your business needs. How often have you heard insurance companies denying claims or offering low settlements even when the policy covers the loss?

Just early this year, Allstate Insurance was sued by Lee for breaching provincial employment standards (you can read more about the case here). In 2022, the Supreme Court ruled that State Farm was to pay the Federal government $100 million for Hurricane Katrina claims. We rest our case!

Most businesses and individuals fall prey to lousy insurance representation because the insurance process is complicated and confusing. Additionally, policies are often filled with legal jargon and fine print, making understanding what you are buying laborious.

This lack of understanding can lead to frustration, especially when you realize you are not covered for a loss you thought was covered. And when it is time to make a claim, the claims process can feel long and frustrating, sometimes feeling like the process is intentionally challenging to discourage you from making claims. Sounds familiar?

THIS IS WHERE AN INSURANCE BROKER COMES IN!

What will an insurance broker do? Insurance brokers bring expertise and personalized service that online resources can't match.

1. AN INSURANCE BROKER ALREADY UNDERSTANDS COMPLEX INSURANCE PRODUCTS

Insurance products can be complex, with various terms, conditions, and exclusions. Still, an insurance broker has the expertise to understand these complexities and can explain them in a way that's easy to understand. An insurance broker guides you through every decision, explaining the pros and cons of each option based on your specific needs and circumstances.

2. AN INSURANCE BROKER HAS YOUR NEEDS TOP OF MIND

Your insurance broker works for you, period!

Every business is unique, and so are its insurance needs. An insurance broker knows this and will/should conduct a thorough risk assessment of your business to determine what types of coverage you need and how much it costs.

Online resources can provide general information but can't offer this level of personalized advice. Moreover, if you have any questions for your broker, they will give first-hand answers all the way.

3. AN INSURANCE BROKER KNOWS HOW TO NAVIGATE THE CLAIMS PROCESS THE SMART WAY

If you need to make a claim, an insurance broker can guide you, ensuring your claim is handled correctly and efficiently. Your insurance broker serves as a guide, helping you navigate the intricacies of claims and calamities to ensure you receive the full benefits when you file a claim.

They help you understand what information you need to provide, liaise with the insurance company on your behalf, and advocate for you if there are any disputes.

4. AN INSURANCE BROKER PROVIDES ONGOING SUPPORT

Your broker reviews your coverage regularly to ensure it remains adequate as your business grows and changes. They also keep you updated on changes in the insurance market or regulations that may affect your coverage. If a policy is no longer adequate, the broker can help the business find a new one that better fits its needs.

5. AN INSURANCE BROKER PROVIDES CUSTOM DESIGN INSURANCE PACKAGES

The construction industry is different from the software industry. For instance, unlike businesses in physical labor services, software developers face fewer on-the-job personal injuries and property damage claims.

So for a construction company, coverage like workers' compensation might be top of the list, while cybersecurity insurance will suffice more for the software company. So to obtain the most suitable insurance coverage for your business, get the help of expert insurance brokers.

6. AN INSURANCE BROKER KNOWS HOW TO MITIGATE RISK IN YOUR INDUSTRY

An insurance broker can help you reduce your risk profile, which, in turn, lowers insurance premiums and makes it less likely for you to need a claim. They can assist you in implementing preventative measures and steering clear of risks that your insurance might not cover.

They play a crucial role in helping you comprehend the liabilities your business might face. A seasoned insurance broker also possesses the knowledge to effectively mitigate risks specific to your industry, location, and budget.

For instance, insurance policies may include an "act of God" clause. This clause is designed to safeguard insurers from having to compensate for damages inflicted on your business by natural disasters such as floods, hurricanes, or earthquakes. Insurance brokers can provide the best strategies to shield your business from such unexpected events.

7. AN INSURANCE BROKER WILL GET YOU THE BEST INSURANCE RATES

Based on your company's history and coverage requirements, your broker might be able to negotiate lower rates for your entire or partial corporate insurance plan. Large businesses have a unique advantage as they may be eligible for group discounts.

An insurance broker is skilled in assembling protection packages that capitalize on these discounts. Moreover, insurance brokers stay informed about incentives available to loyal businesses. Numerous plans offer reduced premium rates for returning customers.

A diligent broker will inform you about these additional discounts and will advocate on your behalf to secure them. Besides, your business may be eligible for special discounts by enhancing workplace safety and reducing claims.

Brokers can assist your business in utilizing safety training, signage, existing safety features in your infrastructure, and renovations that can further decrease your overall premium costs. And if what you want is to hire a small insurance broker, a local one will have the insurance regulation expertise you need.

ALWAYS CHOOSE THE BROKER

While online resources can provide valuable information, an insurance broker offers personalized, expert advice based on a deep understanding of the insurance market and your specific needs.

These are some benefits of working with an insurance broker: they lead to better coverage, cost savings, and peace of mind.

Want to try a trusted and expert broker for your business? Talk to us, Zupnick & Associates.

Effective Mental Health Benefits Are A Win-Win Strategy for Employers

mwangielton@gmail.com (Elton Mwangi) — Mon, 27 Nov 2023 13:58:24 GMT

Today, more than ever, mental health is a critical aspect of employee wellbeing. However, many employers, like yourself, are struggling to provide comprehensive mental health services that meet employee needs without straining the company's finances. The good news is that creating a win-win situation is entirely possible.

Here's how:

In the United States alone, the National Institute of Mental Health reports that nearly one in five U.S. adults live with a mental illness (51.5 million in 2019). These statistics underscore the importance of addressing workplace mental health.

And yet, recent studies indicate that employers are dissatisfied with the current state of mental health benefits in their workplaces. Traditional methods, such as employer-sponsored health plans and Employee Assistance Programs (EAPs), often fall short due to their cost (considering the cost of inflation), complexity, and lack of specialized providers.

Moreover, they frequently involve long wait times, deterring employees from seeking their needed help. This impacts productivity:

The World Health Organization estimates that depression and anxiety cost the global economy $1 trillion annually in lost productivity. Employees struggling with mental health issues may find it difficult to concentrate, make decisions, or interact effectively with colleagues, which can affect their performance and, by extension, the company's bottom line.

A stressful work environment can also contribute to the onset or worsening of mental health conditions. Conversely, a supportive work environment can help prevent mental health issues and facilitate recovery when they do occur.

BUT THIS REQUIRES A TAILORED APPROACH TO MENTAL WELLNESS

To overcome these challenges, we need to shift our approach. Instead of a one-size-fits-all solution, consider a tailored strategy that focuses on the unique needs of your workforce. This could involve a range of benefits, from teletherapy and stress-relief tools to financial coaching benefits and flexible work schedules.

You can provide impactful and well-utilized benefits by understanding your employees' preferences and needs.
For instance, consider a young employee who is struggling with student loan debt. Such financial stress could be a significant contributor to their mental health issues. In this case, offering financial coaching as part of your benefits package could be a game-changer for this employee. Helping them manage their financial stress will, in turn, improve their mental well-being.

Then there is that employee caregiver who wants more time at home to care for their loved ones. In this case, offering caregiver benefits like flexible work schedules would be more beneficial. In fact:

41% of workers want flexible working hours
34% want a workplace culture that respects time off
33% want the ability to work remotely
31% want a four- day work week

As part of the mental health support their employer offers. So, find out your employee's unique needs and then curate benefits tailored to meet those needs.

ACCESSIBILITY IS ANOTHER CRUCIAL FACTOR TO CONSIDER:

Traditional EAPs often yield low utilization due to their complex navigation and access. To combat this, consider implementing more comprehensive, third-party solutions that span the spectrum of mental health needs by making mental health support accessible.

Teletherapy services are an excellent example of comprehensive mental health solutions directly accessible to employees. For instance, an employee can talk to a licensed therapist through text, phone, or video on their break at work or in the comfort of their home.

Mental health apps also offer a wide range of resources for stress management, cognitive therapy techniques, and mindfulness. Others offer community support where employees can connect with people sharing similar mental health challenges.

These solutions are typically easier to navigate and offer a broader range of services, making them more appealing to employees.

PROMOTING MENTAL HEALTH LITERACY IS ANOTHER VITAL STEP TO TAKE:

This involves educating employees about the risk factors and signs of mental distress, self-help techniques, and how to access mental health resources. By improving mental health literacy, you can empower your employees to take charge of their mental health and utilize the resources available to them effectively.

Start by breaking down your health benefits plans for your employees. Then create a culture where open dialogue about mental health is welcome – encouraging open discussions can help normalize the conversation and reduce stigma.

Regular workshops or webinars can be instrumental in educating employees about common mental health conditions, their symptoms, and the importance of seeking help. A good example is implementing a monthly "Mental Health Awareness Day" with mental health professionals-led workshops.

Let these professionals share resources on their intranet and encourage employees to share their experiences and strategies for maintaining mental well-being.

Leadership involvement is another crucial component for mental wellness in the workplace. Train your leaders to recognize signs of mental health issues and respond appropriately. They can also set an example by openly discussing mental health and sharing their experiences.

Take advantage of EAPs for finding and providing counseling services, mental health assessments, and referrals to mental health professionals for employees who need them.

TAKE IT A STEP FURTHER BY BUILDING A CULTURE OF EMPATHY AND INCLUSION:

Fostering a workplace culture of empathy and inclusion can go a long way in supporting mental health. Employees who feel valued and understood are likelier to be satisfied with their jobs and less likely to experience burnout.

This not only enhances the well-being of your workforce but also contributes to the overall success of your organization.

Train your leaders to listen to employees and show understanding and compassion actively. Let them create safe spaces for employees to express their thoughts, feelings, and concerns without fear of judgment or retaliation.

Leaders in the organization should also champion diversity and inclusion initiatives and ensure they are a strategic priority. For instance, provide regular training to help employees understand the value of diversity and the importance of empathy in the workplace to challenge biases, break down stereotypes, and promote understanding and respect among team members.

DON'T FORGET THE LEGAL ASPECT OF MENTAL WELLNESS IN THE WORKPLACE

Providing mental makes good financial sense, but there is also a legal aspect to consider in many jurisdictions. Laws such as the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA) in the U.S. require employers to provide reasonable accommodations for employees with mental health conditions.

At the very least, your health insurance benefits should implement the Mental Health Parity and Addition Equity Act. You can ensure compliance with these laws by including mental health support at work, especially in your benefits package.

SOMETHING TO LOOK FORWARD TO!

A study by the World Health Organization found that for every $1 put into scaled-up treatment for common mental disorders, there is a return of $4 in improved health and productivity. Furthermore, companies prioritizing mental health have reported improved employee morale, work-life balance, and positive company culture.

MENTAL HEALTH WELLNESS IS GOOD FOR BUSINESS

It leads to increased productivity, improved employee morale, and compliance with legal requirements. As a business owner, it's an investment that can yield significant returns regarding financial performance and your workforce's overall health and well-being.

Remember, re-strategizing mental health services in your employee benefits package doesn't have to be a zero-sum game. By adopting a tailored approach, making mental health support accessible, promoting mental health literacy, and fostering a culture of empathy and inclusion, you can create a win-win situation.

You'll provide your employees with the support they need while contributing to your organization's overall success and productivity. Investing in your employees' mental health is not just good for them—it's good for business.

If you need help incorporating mental health services in your employee benefits package, talk to us @ Zupnick & Associates.

Earn Your Employees' Trust And Reduce The Cost Of Your Benefits Plan

mwangielton@gmail.com (Elton Mwangi) — Mon, 20 Nov 2023 10:45:00 GMT

Your employees think you are out to get them. It doesn't matter how sweet your employee benefits plan deal is; they will always fear that being too liberal and honest with their treatment needs might lead to layoff, reprisal, or judgment.

You want to banish this problem from your work culture because untreated health problems have dire effects on your productivity and bottom line. Think increased sick days, treatment and healthcare costs, and lack of office morale and innovation (all factors you cannot compromise on in this competitive environment).

The kicker here is that as an employer, you can find alternatives to unleash the power of care for your employees and protect your bottom line. But your biggest challenge is ensuring your employees fully utilize their benefits packages. So, what do you do?

You Build Trust with Your Employees.
Employees that trust their employers aren't scared of open communication. They are more likely to be transparent about their health needs, which allows employers to understand the specific treatments they require.

In turn, you can design a more tailored and effective benefits package. And by understanding the health needs of your employees, employers can negotiate better with healthcare providers and insurance companies, potentially leading to cost savings.

Trust can also encourage employees to take advantage of preventive care benefits, leading to early detection and treatment of potential health issues. This not only improves the workforce's overall health but also reduces the costs associated with treating advanced-stage diseases.

Once employees become more likely to seek treatment promptly and manage their health conditions effectively, the time they need to take off work for treatment reduces. That is, absenteeism is reduced.

And if your employees are not taking sick days or time off work to recover from illness often or are not worried about their health or the financial implications of seeking treatment, they can focus better on their work. This leads to increased productivity, which benefits the organization.

Let's not forget that a robust health benefits package, backed by a trusting relationship with the employer, can increase employee satisfaction and loyalty, which reduces turnover and the associated costs of hiring and training new employees.

LOOK AT PREVENTATIVE CARE AS AN EXAMPLE!

reventative services like regular check-ups, screenings, and vaccinations are designed to catch potential health issues early when they are typically easier and less expensive to treat. When employees underutilize these services, they may miss out on early detection of health issues, which can lead to more severe and costly health problems down the line.

Consider an employee who skips regular cholesterol screenings, a preventive service often covered by health insurance. Over time, this employee may develop high cholesterol, which, if left untreated, can lead to severe and costly heart disease.

The cost of treating heart disease, including medications, surgeries, and hospital stays, can be significantly higher than the cost of regular cholesterol screenings and early interventions like lifestyle changes or medication.

Now, let's consider the example of unnecessary surgeries, specifically in the context of musculoskeletal (MSK) conditions. According to a report by Sword Health, 36% of MSK-related surgeries are deemed unnecessary, costing the workforce around $90 billion annually.

These surgeries often incur high costs, including surgery, hospital stays, medication, and physical therapy. Additionally, recovery from surgery usually requires time off work, which can lead to lost wages for the employee and productivity loss for the employer.

A potential solution to this problem is to promote and provide access to alternative treatments like physical therapy. Physical therapy can often effectively treat MSK conditions at a fraction of the surgery cost.

For example, an employee with back pain might opt for physical therapy sessions over a costly and invasive back surgery. Not only can this save the employee and employer money, but it can also lead to a quicker recovery and less time off work.

So conclusively, promoting and utilizing preventive care and alternative treatments can lead to significant cost savings for employees and employers. It's a proactive approach to healthcare that focuses on preventing and managing health issues early on, leading to better health outcomes and lower healthcare costs.

Employee Benefits Insurance: Understand How it Can Protect Your Employees and Help Your Business Succeed

mwangielton@gmail.com (Elton Mwangi) — Mon, 13 Nov 2023 10:45:09 GMT

Insurance provides financial protection for employees in the event of an unexpected illness or injury. This type of insurance typically covers medical costs, disability income, and death benefits. It can ensure that employees receive the care they need during difficult times and that their families are financially secure if something happens to them.

What does the employee benefits insurance cover?

Employee benefits insurance may include other coverage, such as vision and dental, life, long-term care, and even pet insurance. These types of policies can be tailored to the specific needs of employees and their families.

With the right plan in place, employers can provide peace of mind to their workforce by ensuring that they are covered in case of an unfortunate event. Additionally, offering employee benefits insurance can help attract and retain talent, as well as improve morale in the workplace.

Ultimately, this type of coverage is an essential part of any comprehensive employee benefits package.

How Do Employee Benefits Work?

Employee benefits insurance is generally employer-sponsored, meaning that the employer pays for part or all of the premiums. The amount and type of coverage depending on the plan selected.

Typically, employers will offer several different plans from which employees can choose. Employees may also be required to pay a portion of their premiums through payroll deductions.

Employees can use their insurance coverage to pay for eligible medical expenses, such as doctor visits, prescription drugs, hospital stays, and more. Depending on the plan selected, the policy may cover some or all of these costs.

Additionally, many policies provide additional benefits like disability income and death benefits in the event that an employee is unable to work due to an illness or injury or if they pass away.

A 401(k) option is also available as part of an employee benefits insurance plan. This type of retirement account allows employees to save for the future and enjoy potential tax advantages. Employers often offer an employer match on 401(k) contributions as well, which can boost employees' savings.

By providing employee benefits insurance, employers can ensure that their employees are taken care of when life throws them a curveball. This type of coverage is essential in helping protect employees and their families from financial hardship.

Additionally, it can provide peace of mind knowing that they have the coverage they need in the event of an unexpected illness or injury.

What are the Different Types of Employee Benefits?

Employee benefits insurance policies can vary greatly, so it is essential to select a plan that meets the needs of your employees. Some popular types of coverage include health and dental, vision, life insurance, long-term disability, and pet insurance. The specifics of each plan will vary based on the options chosen by the employer.

Health and dental plans provide coverage for medical costs associated with doctor visits, hospital stays, prescription drugs, and more. Vision insurance pays for eye exams and glasses or contacts.

Life insurance provides death benefits in the event of an employee’s death, while long-term disability pays in the event that an employee is unable to work due to an illness or injury. Pet insurance reimburses veterinary costs associated with a pet's medical care.

Employee benefits can be a great way to provide financial security and peace of mind to your employees. By selecting the right plan, you can ensure that your employees are covered in case of an unexpected illness or injury and that their families are taken care of should anything happen. Employers can attract and retain top talent with the right benefits package while showing that they value their workforce.

What are the advantages of employee benefits insurance?

The main advantage of offering employee benefits insurance is that it helps protect employees and employers in an emergency. Employees can rest assured that they will be taken care of if something happens to them, while employers gain peace of mind knowing their workforce is protected.

Additionally, providing employee benefits insurance can also help employers save money in the long run; with an effective plan in place, employers can minimize their risk and avoid costly medical bills or disability claims. Finally, offering employee benefits insurance is a great way to attract and retain top talent – something that’s essential for any business’ success.

Importance of Employee Benefits Insurance

Employee benefits insurance is an essential part of any comprehensive employee benefits package. It can provide financial protection and peace of mind and help employers save money in the long run.

When choosing a policy, it’s essential to consider the needs of employees and their families and the overall cost. With the right plan in place, employers can ensure that their workforce is taken care of in case of an unexpected illness or injury.

With a comprehensive employee benefits package, companies can provide employees with the security they need and drive long-term success.

How Much Does Employee Benefits Insurance Cost?

The cost of employee benefits insurance can vary greatly depending on the type and amount of coverage needed. The plan's cost may also depend on the size of the business and the number of employees enrolled in the plan.

Generally, employee benefits insurance will cost a few hundred dollars per month per employee, although this amount can increase depending on the type and amount of coverage chosen.

Employers should review their options to determine the best plan for their employees’ needs and budgets. Zupnick & Associates can help employers explore their options and find the right plan for their business.

Employee Benefits Provider

Selecting the right employee benefits provider is key to ensuring that your employees have the coverage they need in case of an unexpected illness or injury. At Zupnick & Associates, we provide comprehensive employee benefits packages that are tailored to meet the needs of your business and employees.

We understand the importance of financial security in helping attract and retain top talent, which is why we offer a wide range of options so you can select the right plan for your team. Contact us today to learn more about our employee benefits insurance solutions.

Conclusion

In conclusion, providing employee benefits insurance is crucial to any successful business. It’s essential to choose the right plan for a company’s needs and budget so that employees can know they will be financially secure if something happens to them.

Employee benefits insurance provides financial protection, attracts and retains top talent, and can save money in the long run. With the right insurance plan, employers can ensure their workforce is taken care of and that their business will continue to thrive.

Employee benefits play an essential role in providing financial security for workers and creating a positive work environment that promotes productivity, engagement, and loyalty. Employee benefits insurance provides employees with access to financial protection in the event of accidents, illness, or death while also helping employers reduce their risk and save money in the long run.

Employers need to choose a plan that meets the needs of their employees and budget so that they can provide the right level of coverage. With the right benefits provider, employers can ensure their employees are taken care of and that their businesses will continue to succeed.

Can Prescription Optimization Reduce Your Business Healthcare Costs?

mwangielton@gmail.com (Elton Mwangi) — Mon, 06 Nov 2023 14:41:09 GMT

The short answer is yes. But how? That's the big question.

Think about it this way; where there is waste, there is loss. And when the Journal of the American Medical Association surveyed the waste caused by unnecessary healthcare spending, they discovered that healthcare and medication waste amounted to $200 billion annually.

Another study by Pacific Business Group on Health and Integrity Pharmaceutical Advisors explored the potential benefits of adopting a waste-free formulary in prescription programs. The study analyzed 71 drug groups and identified 868 wasteful drugs, representing 6 percent of the claims reviewed.

While this is saddening, identifying these wasteful drugs presents a significant opportunity for savings for self-insured employers and healthcare payers. For instance, replacing low-value drugs with more cost-effective alternatives achieves a substantial cost differential.

And from the Pacific study, the average savings per wasteful drug ranged from $180 to $2,448 annually. Without a doubt, reducing wasteful spending on medications can reduce the cost of premiums without affecting the quality of your benefits packages.

This is where optimization comes in. Let's talk about prescription optimization.

WHY PRESCRIPTION OPTIMIZATION?

A lack of adequate communication is a recurring barrier to proper employee benefits utilization. And because of it, many employees are less aware of the healthcare options available and how to utilize what is at their disposal.

Additionally, employers focus more on providing employee benefits that "make sense" instead of creating a benefits package that meets the direct needs of their employees. This mismatch results in waste, where employers spend on premiums employees do not use.

Take pharmaceutical spending as an example; it accounts for at least 25% of your employee healthcare costs. And about 28 to 40 percent of the total drug spend is on unnecessary prescription drugs.

Yet, most employees are not acutely aware of appropriate prescription medication methods. And while your broker might negotiate a significant contract with your insurance provider, there is no harm in adding a layer of protection for your bottom line.

So why prescription optimization? The strategy allows you to identify and reduce prescription drug spending that results in waste. Its primary purpose is to supplement the cost-saving measures you already have for your business and employees.

For example, most RX optimization programs have active physicians that empower policyholders with the correct information, which ensures they receive practical and effective medication at the best price.

In essence, optimization programs empower employees with suitable data to ensure they adhere to prescriptions with better health outcomes. The butterfly effect is:

Healthier policyholders, which reduces further healthcare costs down the line
A reduction in wasteful spending that automatically results in costs savings
The return on investment in prescription optimization programs is higher than the cost of implementing said programs

And to sum it up, prescription optimization programs are like API's. They work well with your already set healthcare systems without causing disruptions. They complement what is already there and then help you reduce your healthcare costs.

Prescription optimization is especially valuable for self-insured employers looking to lower their healthcare expenses while maintaining the quality of care provided to their employees.

HOW DOES IT WORK?

You can use tactics like promoting generic drugs, exploring alternative medication options, negotiating favorable terms with pharmaceutical manufacturers, and encouraging medication adherence to identify missed savings opportunities.

The basic principle behind it is to analyze medication utilization patterns and negotiate and leverage cost-saving opportunities. Keep in mind that prescription optimization also prevents the use of inappropriate medications.

Through formulary and medication therapy management programs, employers can ensure that members receive the most appropriate and cost-effective drugs for their medical conditions, reducing the risk of adverse effects and ineffective treatment.

For example, one key aspect of an Rx optimization program is working with pharmacy benefit managers (PBMs). These professionals specialize in managing prescription drug benefits and can negotiate with pharmaceutical manufacturers to secure better pricing and rebates.

By leveraging the expertise of PBMs, employers can reduce prescription drug costs without compromising on the quality of care provided to their employees. That is, high-cost specialty drugs could be replaced with more affordable alternatives and achieve significant cost savings without compromising the quality of care for its members.

And because an Rx optimization program focuses on addressing chronic conditions, which are often associated with higher healthcare costs, using alternative medications and generic substitutions significantly lowers prescription drug expenses for employers.

THE WAY TO BE SUCCESSFUL WITH YOUR PRESCRIPTION OPTIMIZATION PROGRAM IS THROUGH:

Engaging employees with information about the program's benefits, safety, and efficacy. Through educational resources and communication platforms such as emails, newsletters, and online portals, employers can effectively communicate the value and appropriateness of the program. This helps alleviate concerns and build trust, increasing participation and adherence.
Enhancing program participation and adherence by implementing proactive outreach strategies. Regularly sending reminders and notifications, such as refill reminders or prescription cost-saving tips, can help employees stay on track with their medications. Personalized support, such as one-on-one consultations with pharmacists or care managers, can further encourage adherence to recommended drug therapies.
Regularly reviewing and updating the drug formulary based on clinical evidence, cost-effectiveness, and patient outcomes to promote the use of lower-priced medications without compromising the quality of care. Additionally, incentivizing recommended drugs through lower copayments or other financial and employee benefits perks encourages employees to choose more cost-effective options.

These strategies can reduce prescription costs and promote a more balanced pharmaceutical market.

CONCLUSION

Amidst the unsettling news about insurance claims issues and ever-rising premiums that have got you worrying about your bottom line, we're working harder on the back end to find alternative coverage options that save on costs without compromising the quality of your business and employee healthcare protection.

So if you've been wondering what an insurance broker can do about these soaring premiums, besides finding coverage alternatives that save on cost (ultimately keeping you from reducing your health plan benefits), we can offer additional protection strategies that optimize your health plans. This is where prescription optimization comes in.

Our recommendations for reducing employer costs with prescription optimization include employee engagement through education and communication platforms, proactive outreach and timely reminders, and prioritizing formulary changes.

These recommendations provide employers with practical strategies to reduce costs associated with prescription drugs while ensuring the health and well-being of their employees.

By optimizing prescriptions, you, as the employer, can lower your healthcare costs, improve patient outcomes, and reduce the financial burden on your employees and organization. So, if you need help managing your premium costs, talk to Zupnick & Associates .

Mastering the Interactive Process: Timing is Everything for Effective Workplace Accommodations

mwangielton@gmail.com (Elton Mwangi) — Mon, 30 Oct 2023 13:31:20 GMT

The current business landscape doesn't allow any employer to settle on merely offering competitive benefits packages to attract and retain top talent. What you must aspire to is offering the most effective, diverse, and inclusive work environment.

That includes ensuring all your employees can perform essential job functions without discrimination, especially employees with disabilities. A key aspect to consider is the interactive process which provides adequate workplace accommodations.

And to master the interactive process, timing, as you'll see, is everything.

WHY THE INTERACTIVE PROCESS?

Engaging in the ADA Interactive Process is crucial to comply with Title I of the Americans with Disabilities Act (ADA). It involves working collaboratively with an employee with a disability to identify and provide reasonable and practical accommodations that allow them to perform the essential duties of their job.

This process identifies the limitations of the disability and potential reasonable accommodations that could overcome those limitations.

WHEN DO YOU INITIATE THE INTERACTIVE PROCESS?

As the need arises.

Usually, it begins when an employee with a disability requests an accommodation from their employer. The employer must recognize this request and initiate a conversation with the employee to gather information about their needs.

But employees are not required to use specific words or phrases to request an accommodation. And sometimes, they fail to communicate the need for accommodation because of fear of discrimination or embarrassment.

This heightens the need for mastering the interactive process so that managers and employers become steadfast in identifying the need for an interactive process.

STEP 1: LEARN TO RECOGNIZE THE REQUEST

An accommodation request comes in any form. The quickest way to identify such a request is by staying alert to any indication that a problem is related to a medical condition. For instance:

A statement from an employee finding it hard to work because of a medical condition
A request for a leave of absence because of a medical condition
A request for a change in equipment because of a medical condition

All these are examples of accommodation requests that start the interactive process.

You can also determine whether it is wise to have an employee assistance program here.

STEP 2: GATHER APPROPRIATE INFORMATION

It's your responsibility to determine the employee's job's essential functions, while the employee must provide relevant medical documentation and participate in the interactive process. This allows you to gather the information you need.

That is information about the employee's medical condition and job requirements. Discussions with the employee's healthcare provider may be necessary to gather appropriate information about their medical history and prognosis.

Maintain confidentiality during this process and only share information with HR or other managers on a need-to-know basis.

STEP 3: EXPLORE ACCOMMODATION OPTIONS

This is a two-way Process!

Both parties must work together, communicate and coordinate, to exchange information and discuss different options for the most appropriate accommodations. As you think of your employee, consider also factors such as the accommodation's effectiveness, cost, and impact on your operations.

Here's why:

Offering accommodation may include modifying work schedules, providing assistive technology, changing the physical work environment, or reassigning the employee to a different position based on their qualifications.

For example, install a ramp or lift to accommodate an employee who uses a wheelchair or provide braille or audio instructions for employees with vision impairments. Assistive technology solutions may include screen reader software, voice recognition software, or specialized keyboards.

Check-in with your employees regularly to ensure that accommodations are effective and make any necessary adjustments. Document everything you do during the accommodation process to help you track requests, identify patterns, and demonstrate that you engage in the interactive process.

Such initiatives might not merely be costly, but they will impact other employees in your organization. So you must remain mindful of the options you consider and how you communicate your final decision to the rest of the workers.

Remember, the key is to be effective, diverse, and inclusive. With that in mind, work with the employee to identify accommodations that meet their needs without creating undue hardship for you and your business.

If an accommodation would pose an undue hardship, work with the employee to identify alternative options.

THIS REQUIRES THE POWER OF PERCEPTION.

Perception allows you to step out of your "ideal" mindset and perceive every employee, whether differently-abled or not, as having the ability to perform at their optimal best. So, where the interactive process is concerned, perception helps you determine an employee's rights.

If you know these rights, you can offer access to reasonable accommodations that impact career opportunities and advancement. That is, you can objectively engage in the interactive process. As such, you will look for solutions that do not presume or assume you know what your employee needs.

For instance, you can recommend an individualized assessment before determining whether an employee cannot perform specific duties to gain appropriate insight.

And by doing so, you remain compliant, avoid discriminatory practices, and offer every employee the ADA protection they need.

BUT WHY IS TIMING SO CRUCIAL?

Here are a few reasons:

Legal Compliance: The sooner you begin the interactive process after an accommodation request, the better your compliance with ADA regulations. Delaying this process could lead to legal consequences.
Employee Productivity: Addressing accommodation requests can minimize work disruptions and maintain productivity. The longer employees wait for necessary accommodations, the more their work may be affected.
Employee Satisfaction: Quick responses to accommodation requests show employees that their well-being is a priority. This can boost morale and job satisfaction, leading to higher retention rates.
Cost Savings: By promptly addressing accommodation needs, you can avoid more costly solutions. For example, providing an ergonomic chair could prevent expensive medical bills and lost productivity due to a worsening condition later.

Mastering the interactive process involves more than just timing, though. It requires open communication, flexibility, and a commitment to finding solutions for employees and the business. It's about creating a culture of inclusion where every employee feels valued and supported.

Remember, every employee's needs are unique. What works for one person might not work for another. That's why the interactive process is so important—it allows for personalized solutions that respect the individual's needs while also considering the business's operational needs.

Overall, proactive communication, flexibility, and creativity are essential in navigating the accommodation process and ensuring that employees with disabilities have equal access to employment opportunities.

NOT A ONE-AND-DONE SITUATION

Effective workplace accommodations are a crucial part of any business structure. By mastering the interactive process and understanding the importance of timing, you can ensure that your employees receive the support they need when they need it.

This contributes to a positive work environment and positively impacts your bottom line. If you need additional tools and resources, check the ADA's Interactive Process Guide on websites like https://www.ada.gov/ and https://askjan.org/.

Remember, when it comes to the interactive process, timing is everything. Start the conversation as soon as needed and keep it going until a suitable accommodation is found.

Your employees, and your bottom line, will thank you.

The Impact of the Student Loan Bill on Employee Benefits: A New Landscape for Employers

mwangielton@gmail.com (Elton Mwangi) — Mon, 23 Oct 2023 14:40:54 GMT

For any employer, one significant business goal is attracting and retaining the best talent, and a crucial part of this is offering a competitive benefits package.

The Student Loan Bill permits businesses to contribute up to $5,250 tax-free yearly towards their employees' student loans. This benefit not only aids employees in managing their student loan debt but also gives businesses a unique opportunity to stand out in a competitive job market.

Let's not forget that providing employee benefits also makes good financial sense. You can read our take on that here.

Besides, integrating student loan repayment assistance into your benefits package allows you to appeal to a broader range of candidates, especially among younger generations heavily impacted by student loan debt. And this is where the Student Loan Bill comes in.

PRESIDENT BIDEN'S STUDENT LOAN BILL

President Joe Biden is dedicated to finding ways to alleviate the financial burden of student loan debt for borrowers struggling to make monthly payments. Thus, he recently issued a fact sheet outlining his actions to provide relief to the most vulnerable borrowers.

As part of the debt ceiling deal Congress approved, Biden's proposal from last fall, 2022, would erase up to $20,000 in student loan balances. These efforts will help ease the financial stress of struggling borrowers and open up opportunities for them to seek better employment and improve their quality of life.

But as the U.S. Supreme Court deliberates the fate of the Biden administration's student debt relief proposal, a new legislative package has emerged from Congressional Republicans that could significantly reshape the landscape of employee benefits.

The Lowering Education Costs and Debt Act, a series of five bills, aims to address the root causes of escalating higher education costs and the mounting debt burden shouldered by students.

According to Senator Tim Scott, a cosponsor of the bill, the package seeks to attack the root cause of skyrocketing student loan debt, drive down the cost of education, and set all students up to succeed.

While the specifics of the five bills within the package have not been fully disclosed, the overall objective is clear: to make education more affordable and reduce the burden of student loan debt.

WHY THIS IS IMPORTANT:

The average cost of college in the U.S. has skyrocketed in the last few decades, leaving many students with staggering amounts of debt to repay. Student loan debt has become a significant financial burden for over 45 million American borrowers.

The amount of student loan debt owed by borrowers currently stands at around $1.7 trillion. This debt has significantly impacted borrowers' lives, mainly when saving for retirement.

Graduates face the challenge of balancing their student loan payments with their efforts to save for the future. This can prove difficult, as loan payments can consume a significant portion of their monthly income, leaving little room to put money away for retirement.

The long-term impact of this trend on employees' savings cannot be overstated. Add to this stress the current uncertainty and cost of living as impacted by rising inflation, forcing many to live check by check.

Paying student loan debt is now more than ever a burden many employees struggle to manage.

WHY YOU SHOULD BE CONCERNED

These financial burdens lead to stress and anxiety, impacting employees' productivity and overall job satisfaction.

Financial stress can lead to physical health problems like headaches, stomach issues, and even more severe conditions like heart disease. This can result in increased absenteeism and healthcare costs for businesses.
Employees under financial stress may be less satisfied with their jobs, leading to lower morale and engagement. Financially stressed employees may be more likely to leave the company for higher-paying jobs, leading to higher turnover rates, which can be costly for businesses.

As an employer, you can help alleviate these burdens by offering comprehensive benefits packages that include student loan assistance. This can involve offering an employer-sponsored student loan repayment program or other financial resources to help employees manage their debt and prepare for a secure financial future.

Additionally, with over 45 million Americans carrying student loan debt, this benefit can potentially attract and retain top talent in a competitive employment market. Employers who become early adopters of this benefit will have a strategic advantage in attracting highly skilled workers who increasingly prioritize benefits related to financial wellness.

The proposed SECURE Act 2.0 also offers tax incentives for employers who provide employee student loan repayment benefits. This legislation allows employers to extend 401(k) matching contributions to employees making student loan repayments instead of contributing to a retirement account.

The act also allows employers to make direct contributions to employees' student loan accounts, which would reduce the employer's tax burden.

In summary, employers can benefit significantly from implementing student loan repayment benefits for their employees. They can attract and retain talent while reducing their tax burden through the SECURE Act 2.0. Employers who act quickly may have an edge in this tight labor market.

IMPLICATIONS FOR EMPLOYEE BENEFITS

For employers, this legislative package could necessitate a reevaluation of their employee benefits, particularly those related to education and student loan assistance.

Many companies have recognized the burden of student loan debt on their employees and have responded by offering student loan repayment assistance as a part of their benefits package. These programs have become attractive for prospective employees, especially among younger generations most affected by student loan debt.

The Student Loan Bill, a groundbreaking piece of legislation, allows you to contribute up to $5,250 tax-free yearly towards your employees' student loans. While this benefit primarily aids employees in managing their student loan debt, it also gives businesses a unique opportunity to stand out in a competitive job market.

This is a new avenue to support your employees if you offer student loan repayment assistance as part of your benefits package.

KEEP IN MIND:

While the potential reduction in student loan debt is undoubtedly positive for employees, it presents a challenge for employers using student loan repayment programs as a competitive advantage in attracting and retaining talent.

For instance, if the burden of student loan debt is reduced, employees may shift their financial focus to other areas, such as saving for retirement, purchasing a home, or starting a family. Employers could respond by enhancing their retirement savings programs, offering financial wellness resources, or providing benefits related to childcare or housing.

Employers must proactively identify other areas of financial stress for their employees and consider how their benefits packages can be adapted to address these needs. And as the situation develops, employers should monitor the progress of the Lowering Education Costs and Debt Act and consider how its potential enactment could impact their benefits strategy.

By doing so, they can ensure that they continue to provide a benefits package attractive to prospective employees and supportive of their current workforce's needs.

LOOKING AHEAD

The Lowering Education Costs and Debt Act is a reminder that the landscape of employee benefits is not static. As societal issues evolve, so too must the benefits that employers offer. While the act is still under consideration and its final form is uncertain, it represents a potential shift in the focus of employee benefits.

Employers who stay informed about these changes and adapt accordingly will be best positioned to meet the needs of their employees and remain competitive in the marketplace.

We can help you maintain an updated and relevant employee benefits package for your business. Contact us at Zupnick & Associates to help you remain competitive.

Creative "First-Dollar" Coverage: Is It Really Reducing Costs?

mwangielton@gmail.com (Elton Mwangi) — Mon, 16 Oct 2023 11:43:45 GMT

You're familiar with the myriad of insurance coverage options available to protect your business and employees. So, what intrigues you most is finding the coverage that offers the perfect balance between effectiveness and cost.

That is, you want insurance plan options that meet the needs of your business and employees but reduce your overall costs. And a little birdie mentioned something about first-dollar coverage.

Nothing new, but now you can't stop but wonder, how can it reduce my costs? The answer lies in being creative with how you implement first-dollar coverage. Let's take a look.

As the name suggests, it is an insurance policy feature where your insurer begins to cover expenses from the first dollar without any deductibles or initial cost-sharing required from the plan participant.

In other words, your insurance kicks in immediately, covering costs from the outset. So if a claim arises, your employees won't have to reach into their pockets to cover a deductible before their insurance kicks in.

This is a departure from traditional insurance plans, where you typically must meet a deductible before your insurance coverage begins.

THE PROMISE OF FIRST-DOLLAR COVERAGE

The primary allure of first-dollar coverage is its simplicity and immediate cost savings for policyholders. With traditional health insurance plans, employees must pay out-of-pocket until they reach their deductible.

This can be a significant financial burden, especially for those with high-deductible insurance. First-dollar coverage eliminates this hurdle, providing immediate coverage and peace of mind. It can also be particularly beneficial for businesses looking to provide comprehensive health insurance benefits to their employees, as it can help attract and retain top talent.

But while it's a fantastic feature, it's not always affordable for every business. Eliminating deductibles can reduce out-of-pocket costs for employees but may lead to higher premiums since the insurer is taking on more risk.

If premiums are high, you and your employees will incur some of that cost, especially if you are big on providing employee benefits packages. And sometimes, first-dollar coverage is not tax-deductible.

That's where the 'creative' part comes in. Creative first-dollar coverage is a strategy that combines different insurance policies to create a comprehensive coverage plan that effectively acts as first-dollar coverage.

It's about strategically layering your insurance policies to ensure coverage from the first dollar of loss without needing a traditional first-dollar coverage policy. For example, some insurers offer plans to cover certain services or treatments from the first dollar, while others require a deductible.

This allows for more flexibility and can be tailored to the specific needs of your business and employees.

SO, HOW DOES FIRST-DOLLAR COVERAGE WORK? LET'S BREAK IT DOWN.

Firstly, you'll need a primary insurance policy. Depending on your business needs, this could be an employee benefits package policy, a general liability policy, a commercial property policy, or a workers' compensation policy.

This primary policy will have a deductible, which your employees must pay out-of-pocket before the insurance coverage kicks in. Next, you'll need a secondary policy, often called a 'buy-down' policy. This policy is designed to cover the deductible of your primary policy.

In other words, if a claim arises, your buy-down policy will cover the deductible, allowing your primary policy to kick in immediately. This effectively creates a first-dollar coverage scenario.

Now, you might wonder, "Won't the premiums for the buy-down policy be high?" Not necessarily. Because the buy-down policy only covers the primary policy's deductible, it's often much cheaper than a traditional first-dollar coverage policy.

But does this creative approach to first-dollar coverage reduce costs? The answer is: it depends. Creative first-dollar coverage isn't a one-size-fits-all solution. The right strategy will depend on your business's unique needs and risk profile.

Therefore, it's crucial to carefully consider the trade-offs and work with an experienced insurance broker to find the best solution for your business.

For instance, New Yorkers considering first-dollar coverage for business should work with a knowledgeable insurance broker in the state because they understand the local market. Zupnick & Associates can help you navigate the various options and find a plan that offers the right balance of coverage and cost.

USING HEALTH SAVINGS ACCOUNTS AS AN EXAMPLE

An HSA is a type of savings account that allows individuals to set aside money on a pre-tax basis to pay for qualified medical expenses. By pairing an HSA with a high-deductible health plan, businesses can offer their employees a way to manage healthcare costs effectively.

Pre-Tax Contributions: Contributions to an HSA are made pre-tax, reducing your taxable income. This can result in significant tax savings, especially for high earners.
Tax-Free Withdrawals: Withdrawals from an HSA for qualified medical expenses are tax-free. This includes payments for deductibles, copayments, and other out-of-pocket healthcare costs.
Investment Opportunities: The funds in an HSA can be invested, like a 401(k) or IRA. Any interest, dividends, or capital gains earned are tax-free, providing an additional opportunity for savings.
Roll-Over Benefits: Unlike a Flexible Spending Account (FSA), unused funds in an HSA roll over from year to year. This allows you to save for future healthcare costs and can be particularly beneficial if you have a high-deductible health plan .

PAIRING HSAS WITH FIRST-DOLLAR COVERAGE

Using an HSA can offset some of the costs of a high-premium, first-dollar coverage plan. The HSA allows employees to pay for routine healthcare costs with pre-tax dollars, while the first-dollar coverage protects them in case of a significant health event.

However, it's important to remember that HSAs come with their own rules and requirements. For example, to be eligible to contribute to an HSA, an individual must be enrolled in a high-deductible health plan. Therefore, consulting with a financial advisor or insurance professional is crucial to understand how best to use an HSA for your specific situation.

CREATIVE FIRST-DOLLAR COVERAGE: A COST-EFFECTIVE SOLUTION?

The concept of creative first-dollar coverage is a creative approach that can be a game-changer for your business. It allows your employees to enjoy the benefits of first-dollar coverage without the hefty price tag.

Plus, it provides peace of mind, knowing that if a claim arises, they won't have to scramble to cover a large deductible. However, it's important to remember that these potential savings must be balanced against the potential for higher premiums.

Still, while first-dollar coverage can lead to higher premiums, tools like Health Savings Accounts can help manage these costs. By strategically layering your insurance policies, you can enjoy the benefits of first-dollar coverage without breaking the bank.

As a business owner, it's worth exploring this option to ensure you get the best possible insurance coverage. After all, your business is your livelihood, and it deserves the best protection available.

With creative first-dollar coverage, you can rest easy knowing that your business is well-protected, from the first dollar of loss to the last. So, why wait? Start exploring the possibilities of creative first-dollar coverage today and give your business the protection it deserves.

As always, reviewing your insurance options regularly is essential to ensure they continue to meet your business's needs. You can provide excellent employee benefits while protecting your bottom line with the right approach.

Level The Playing Field By Modernizing Ancillary Benefits

mwangielton@gmail.com (Elton Mwangi) — Mon, 09 Oct 2023 12:06:57 GMT

Back in 2013, at least 12,000 U.S. employers viewed ancillary benefits as a differentiator for their business. According to the Preliminary Ancillary Products Study, these employers believed their ancillary benefits were the key to attracting job candidates and retaining top-performing employees. They were not wrong.

And yet, large companies were likelier to offer ancillary benefits. Take voluntary benefits as an example. While 8% of employers with more than 1000 employees offered voluntary benefits like pet insurance, only 0.5% of employers with less than 200 did the same.

Fast forward to 2023. The world is fast-paced and competitive, meaning you cannot leave any wiggle room because you will lose. And the one area ripe for innovation and can significantly differentiate your business is the realm of ancillary benefits.

The non-core benefits you offer your employees, such as dental, vision, life insurance, and more, are the cherries on top of the essential benefits sundae. And modernizing them means aligning said benefits with the evolving needs and expectations of the modern workforce.

But Why Modernize?

It is always hard to straddle that line of giving people what they want versus what they need. And when you start considering the things that customers might want 10 years from now vis a vis the things that might not change, finding the balance between want and need becomes even more challenging.

This is why modernization is essential: it profoundly impacts your business now and in the future. So. If you look keenly, employers are more willing to reappropriate some of their cash flow into benefits that live with their employees.

It inevitably helps employers attract the talent they need, retain their incredible talent, and ultimately keep their team productive. An example is offering a life insurance policy that stays with the person whether they are a hybrid or in-office workforce because it helps employees keep doing their best work no matter where they are or what they're doing.

Ultimately, the goal is to achieve something more important than checking the health insurance box right by creating an approach to benefits that is intentional, strategic, and tied to the company culture.

Remember, what employees experience when they work for a company determines the future success of that business. That is why more employers are becoming intentional about explicitly teaching and emphasizing and reemphasizing what the ancillary benefits package is.

Small businesses, in particular, must be very intentional about articulating these benefits and educating employees with one goal in mind: the employee experience. To that end, modernizing your ancillary benefits doesn't just exist at the benefits level but across the spectrum of the employee experience.

It helps attract top talent in a competitive recruitment market because it signals that your company is forward-thinking and cares about overall employee well-being.
It boosts your company's reputation and brand image. A company offering comprehensive benefits to meet today's needs is viewed as a great workplace to attract more high-quality candidates and clients.
It also boosts employee satisfaction and retention. If your workforce feels valued and cared for since you cater to their diverse needs and lifestyles, they're less likely to jump ship.
Moreover, a healthy, financially secure, and satisfied workforce is likelier to be more productive and engaged. They'll be ready and eager to navigate any business storm together.

In other words, modernizing your ancillary benefits can be a win-win for your employees and your business. For instance, flexible working arrangements can help employees achieve a better work-life balance, while professional development opportunities can help them grow and advance in their careers. Both benefits can significantly increase employee satisfaction and retention.

Modernizing ancillary benefits also involves leveraging technology and data. With the advent of AI and machine learning, it's now possible to analyze large amounts of data to gain insights into what benefits employees value most. This helps you tailor your benefits package to meet the specific needs of your workforce, further enhancing its appeal.

So, how do you modernize these ancillary benefits, and how can they impact your business? It involves leveraging technology, data, and innovative strategies to deliver personalized, flexible, and comprehensive benefits. Let's dive in.

EMBRACE THE DIGITAL WAVE

Today's technology is as ubiquitous as the air we breathe. It's transforming how we live and work; employee benefits are no exception. Offering digital access to benefits information, online enrollment systems, and telehealth services is no longer a luxury - it's a necessity. It's like upgrading from a paper map to a GPS; it's more efficient, user-friendly, and reliable.

Technology streamlines the benefits administration process, making it easier for employees to understand and access their benefits. This can lead to higher utilization of benefits, further boosting employee satisfaction and retention.

PERSONALIZE THE BENEFITS

Never assume that your employees have the exact needs. The young deckhand might value tuition reimbursement, while the seasoned employee might appreciate a robust retirement plan. Offering a one-size-fits-all benefits package is like serving the same meal to your kids every day - it's bound to cause rebellion. Modernizing ancillary benefits means personalizing them to meet the diverse needs of your workforce.

FOCUS ON WELLNESS

The pandemic has underscored the importance of health and wellness. So, modern ancillary benefits should go beyond traditional health insurance to include mental health support, wellness programs, and preventive care. It's like ensuring your crew has both the wind in their sails (physical health) and a clear star to navigate by (mental health).

OFFER FINANCIAL WELLNESS

Financial stress can significantly impact your employees' productivity and morale. Modern ancillary benefits include financial wellness programs, access to financial advisors, and retirement planning services. It's giving your employees the tools to keep their finances shipshape so that they can focus on their duties without distraction.

FLEXIBILITY IS KEY

The future of work is flexible. This includes flexibility in where, when, and how work gets done. Your ancillary benefits should reflect this trend. This could mean offering benefits that support remote work, flexible working hours, or job sharing. For instance, flexible spending accounts allow employers and employees to meet and work together for the company's good.

ANCILLARY BENEFITS STEER YOUR COMPANY INTO THE FUTURE.

The journey might require effort and investment, but the destination - a thriving business with a loyal, satisfied workforce - is well worth it. After all, your business is only as successful as its employees.

So, remember, the future of work is not just about what you do—it's also about how you care for your people. Hoist the sails, chart the course, and modernize your ancillary benefits. Your employees, and your business, will thank you for it.

If you need guidance on offering your employees ancillary benefits, contact Zupnick & Associates .

Whom Should You Choose? An Insurance Broker or An Insurance Agent?

mwangielton@gmail.com (Elton Mwangi) — Mon, 02 Oct 2023 17:06:53 GMT

An insurance broker will represent you as their client. An insurance agent will represent the insurance company they work for. So, even though both will help you get the insurance policy you want, their fundamental focus is different.

With insurance brokers their fiduciary duty is to their clients. To such a great extent, the broker is the advisor to the client throughout the insurance process. A benefit in itself because the broker's obligation is to their client, meaning they are likelier to remain objective in their recommendations.

But with an insurance agent, their first responsibility is to their company. So, expect an insurance agent to follow guidelines provided by their insurance company. If they have specific products to sell to reach their quota, they will sell. And the lot of them only offer comprehensive insurance information without the advice.

Here's the deal, though, both insurance brokers and agents can help you get the insurance coverage you need. Your business's unique nature and preferences are what you use to determine who suits you and your business best.

This is where understanding where brokers and agents differ comes in because it clarifies who complements your business needs.

WHAT'S THE BIG DIFFERENCE?

Here is an overview of their differences:

An agent is a company representative, while a broker is a client representative.
An agent works for the insurer, while a broker works for the consumers.
An agent gives options provided by the insurer(s) they work for, while a broker assesses options offered by multiple insurers.

This means that an insurance agent is a connoisseur of the offerings provided by their company. You can bet that their knowledge is a one-stop shop for any policy you need, but from the company they represent.

But because an insurance agent that works for one company might be limited to information about their company policies, offering a comparison with competitors or policies in the broader marketplace becomes a challenge.

You might also find an independent agent who works for multiple insurance companies. In that case, they can compare policies between the companies they represent and help you choose one. An independent agent can offer additional services like advice, policy reviews, and claims support. Still, their duty to the company or companies they represent limits their reach.

Remember that an agent will always focus on selling the policies the insurance companies allow them to sell. That means they follow the stipulations of their contracts with insurance companies with issues like how much money they can make from the policies they sell.

On the up and up, an agent has permission to bind the insurer into the policy they sell to a client. This privilege is typically given to a company's internal underwriters and underwiring systems.

Now this is the big difference between a broker and an agent. A broker builds relationships with different insurance companies and agents. It allows them to immerse a wealth of knowledge and expertise in the insurance industry.

And because their knowledge is not limited to one or multiple insurance providers, they have the know-how to make the best decisions for their clients when choosing coverage options. Brokers have admirable skills in comparing policies between multiple providers.

This is not the best part yet. Brokers' aptitude to build a wealth of healthy relationships with insurance carriers gives them an upper hand - they can get the best insurance covers at the lowest premium rates for their clients.

So with an insurance broker, you maximize your savings without compromising the insurance coverage. Another broker's advantage is that they are motivated to get you a cover that will sustain your needs for the long haul.

And did you know some states require your broker to act in your best interest? So, you can expect your broker to guide you through the insurance process from start to finish. A broker will meet with you or your company representative to get acquainted with your business.

The sole purpose is to understand your business risk intimately so they can provide coverage solutions that mitigate you where it matters. However, they cannot bind the insurer to the policy they recommend and must get it through an agent.

WHOM SHOULD YOU CHOOSE?

Assess your situation before deciding whether you need a broker or an agent. Picture this: You don't have the time to scheme through pages of information about insurance companies and the different clauses in the policies you need.

In that case, you'd be better off with a broker because they already have this information at their fingertips. The broker will give you a comparison of the different insurance companies you want to consider as well as the nitty-gritty of their policies.

This leaves you with one responsibility: choosing the right broker for your business or individual needs. And knowing the right questions to ask your broker will help you make the right decision.

But if you already know the exact policy you want and the company you want to work with, then by all means, get yourself an insurance agent. Since there is no need to compare policies here, they can enroll you in the policy successfully.

Suppose you are on a budget and want to see quotes and policies from different insurers before settling on a plan. In that case, a broker is a sure bet since their work is to compare various insurers and their policies with cost savings in mind.

THINGS TO KEEP IN MIND

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BOTH ARE EXPERTS. ONLY ONE IS IDEAL

Both insurance agents and brokers can save you time and money. Both can give you the peace of mind and convenience you need by taking care of the legwork for getting insurance coverage. Yet only one can meet your exact and unique needs.

The trick is to make an educated decision, or rather, a better decision for your business. That means considering the role of an agent (representing and distributing the products of one or more insurance companies) and that of an insurance broker (representing the client's needs).

Hey. Did you know that Zupnick & Associates is a health insurance broker for small to mid-sized companies? Get in touch with us for all your insurance needs.

Unleashing The Power Of Care In The Digital Age

mwangielton@gmail.com (Elton Mwangi) — Mon, 25 Sep 2023 17:19:58 GMT

The rise in digital health care is igniting a transformative era with profound implications for patients, providers, and employers. So, as we navigate the ever-evolving landscape of health and wellness, it becomes paramount for you, as the employer, to comprehend the significance of embracing these digital innovations to optimize employee well-being and organizational success.

CONTEMPLATE:

Employees struggle to prioritize their health because of the working, caregiver, and life demands of this fast-paced world. So, digital solutions provide a convenient, empowering, and readily accessible solution to deal with wellness proactively.

To that end, 77% of internet searches comprise patients trying to understand their symptoms or find appropriate treatment facilities and doctors. 9 out of 10 smartwatch users use them for health and fitness reasons, and in 2022, the number of wearable medical devices was at least 1 billion.

So you see, the harmonious convergence of digital technologies, like artificial intelligence, mobile applications, wearables, and healthcare, is necessary to accommodate the needs of today's modern lifestyle, where personalization, efficiency, and convenience are key.

The digital health symphony is important because it empowers every individual to take charge of their health while ensuring providers deliver high-quality care timely. For instance, employees can monitor their sleeping patterns and nutritional habits with wearables and mobile applications.

This data is important in cultivating practices that help employees get enough rest and eat the right foods to boost energy, motivation, innovation, and productivity at work. Ultimately, this reduces sick leaves and absenteeism in the workplace too.

AS EMPLOYERS,

Embracing this symphony can foster an environment where employees access imperative healthcare resources more efficiently and cost-effectively. Telemedicine, for instance, reduces healthcare expenses by reducing in-person consultations, unnecessary tests, and emergency room visits, all factors that add to healthcare premium costs.

Telemedicine is also excellent for unlocking productivity overture because it enables employees to access medical consultations from the comfort of their homes, reducing unnecessary absences and streamlining healthcare access. And you achieve these benefits without compromising on exceptional care.

And maybe the most exciting trend in the digitization of healthcare solutions is the willingness of insurance companies to provide discounts if insured parties agree to wear devices like fitness trackers to monitor their health. Some insurers offer up to 20% discounts per wearable device.

A company like Blue Cross Blue Shield has partnered with Fitbit in its Blue365 health and wellness initiative program. Policyholders get 22% off a Fitbit device and free shipping. For employers, Blue365 offers Fitbit devices in bulk for group insurance policies at a subsidized price.

Others include perks like free devices to help monitor and promote heart health and other issues like diabetes. For example, Aetna has the Attain by Aetna program that rewards its members with points for using their smartphone app. The rewards can be exchanged for devices like Apple watches or gift cards.

The Attain app monitors an individual's calorie targets during walking, swimming, or yoga. When set targets are achieved, the individual gets the points. The app can also enhance health and wellness by notifying users of essential issues like doctor's appointments or prescription filling dates.

NEW TECHNOLOGIES TO KEEP TOP OF MIND

1. TELEMEDICINE, IOT, AND WEARABLES

We've already brushed up on the benefits of telemedicine for employees and employers. The accessibility of medical services through devices like video chats, mobile applications, and messengers makes healthcare convenient for workers. This, in turn, makes work more productive and effective.

On the other hand, telemedicine also reduces the burden of legacy healthcare systems by simplifying work for practitioners. For example, practitioners have the proper environment to offer exceptional care without stressful waiting lines.

And healthcare becomes generally effective when devices like drones are added to the mix to make medicine and supply delivery faster, especially in remote or disaster regions.

IoT and wearables also complement telemedicine because they remotely monitor cardiac and chronic diseases, employee stress levels, and remind patients to take medicine.

2. VIRTUAL AND AUGMENTED REALITY

Virtual and augmented reality is becoming a staple in employee training. These immersive technologies transport individuals into a world where learning becomes an adventure and reality is a stage for extraordinary learning experiences.

Think about it; virtual reality captivates employees with its ability to create lifelike simulations and transport them to far-flung realms. So, no matter how complex the subject, virtual reality allows the learner to navigate easily because there is no real-world risk, and mistakes can be made without fear of consequences.

Augmented reality then enhances this digital workspace with captivating visuals, interactive elements, and real-time instructions, making the learning process more engaging. This is a surefire way to build health and wellness skills in your organization and build a workplace that is confident of its health protocols.

Training your employees on workplace safety, emergency response, and occupational hazards becomes a walk in the park. Health and wellness promotion is also made easy by providing VR and AR training on matters that pertain to mental health, nutritional wellness, and stress management.

And when your employees are having a hard time understanding their company's healthcare benefits or how to navigate the requirements, make it simple with VR and AR.

Do you know that VR games can be an effective painkiller and just as effective as drugs? Something to consider for your office breakroom.

3. BIG DATA ANALYTICS

Data is crucial for healthcare because it monitors trends in health concerns, track disease symptoms, and provides insights on the right mitigation strategies for these issues. In an organization, big data analytics gives employers the right insights for optimizing and personalizing employee healthcare benefits.

For instance, data tells employers the personalized needs of employees through employee behavior, patterns, and satisfaction levels. Behavioral insights for wellness programs are significant for organizations that desire evidence-based wellness programs for healthier outcomes.

Organizations can use this information to choose employee benefits or tweak their wellness programs to meet immediate employee needs. A data-driven decision-making process creates the right environment for employee engagement, efficiency, and productivity.

Note: If you provide wearables as part of your organizational wellness program and use them to collect data, ensure you comply with data collection regulations and policies.

UNLOCKING A HEALTHY FUTURE

So, in summary, the medical ecosystem is now intertwined with the new concept of digital health, where digital healthcare solutions are reshaping the whole healthcare industry.

Employers must recognize that understanding the importance of the rise in digital healthcare solutions is like having a secret key that unlocks a treasure trove of employee well-being, productivity, and cost savings.

Embracing digital healthcare solutions is vital for orchestrating a thriving workforce. Employers wise to this rise become the conductors of a symphony that resonates with their employees' needs and the organization's goals.

That said, if you need help navigating your insurance coverage options, let us know.

Let's Flip The Script And Get Retention Right This Time Around!

mwangielton@gmail.com (Elton Mwangi) — Mon, 18 Sep 2023 20:35:29 GMT

Here is a hard pill to swallow – your best employees can leave your organization for whatever reason and at any time. The only thing keeping them around might be your work culture, colleagues, or boss. This is clear, so why are organizations and HR departments getting retention wrong?

Many organizations leave the responsibility to the HR department.
Numbers now paint retention strategies. There's nothing to cater to the changing demands of the new generation of employees.
Retention feedback is collected during exit interviews when it is too late to change.

What needs to change? Employers must develop methods that keep touch with employees and build one on one trust with leaders and the organization. And this is how:

KNOW YOUR EMPLOYEES' MINDS!

To know your employees' minds, you must foster a healthy communication culture from the bottom up and vice versa. This is especially vital now that employees struggle to balance work, caregiving duties, and personal care.

Look at 2022, for example. 69% of working caregivers changed their work schedules to balance their duties, while 70% experienced work challenges. For this reason, at least 61% of caregivers made an employment shift.

And do you know that the number of Google searches that target excuses to miss work increased by 630% in 4 years? Your employees are not okay, and active communication allows you to assess the state of your employees, their wellness, and their willingness to continue working for your organization.

Creating a working culture that makes it easier and less stigmatizing for employees to communicate challenges makes it likelier that they will prefer to stay. That is, practice active leadership to offset quiet quitting.

Start with your leaders. Are they active in their management styles? Are they creating a culture that builds relationships with their subordinates? Is there an open line of communication where employees can share their challenges without stigmatization?

Teach your leaders how to be present to understand employees better. If your leaders have experienced issues like mental health because of work or work and caregiver responsibilities, let them share their experiences.

Once you know what your employees are thinking and going through, offer the proper support. This is where offerings like employee benefits that cover caregiver and mental health come in.

Hire health workers and organize teambuilding workshops to address working challenges occasionally and offer on-demand educational content or in-person therapy sessions.

BAD BOSSES MAKE EMPLOYEES QUIT

MAKE THEN STAY WITH INTERVIEWS

Employees now expect more from employers than in prior years. Offers like remote or hybrid working, upskilling opportunities, and trust are no longer options for most employees.

So, how do you know whether you are satisfying this new drive for autonomy, flexibility, and growth? Stay interviews. They make you a problem solver by helping you identify what's working for your employees and what isn't.

But to get it right, give the responsibility to your leaders (let your human resource representatives take the bench on this one). It's psychological warfare where you want employees to see this as a care strategy and not a performance assessment so that they can offer authentic responses and suggestions.

Ask the right questions too. For instance:

Don't hesitate to ask if your employees look forward to coming to work. Let them give reasons that support their answer.
You know growth and development are essential for employees. So, ask them whether they are learning or growing in their positions.
Find out why your employees are still in your organization and if they've ever considered leaving. What are their reasons?
And for the kill, ask if you can do anything to make their working experience favorable.

EMPLOYEES WANT APPRECIATION AND RECOGNITION

It's human nature to want to be appreciated. Your employees are no different. So don't wait for them to have the highest sales score for you to appreciate them. Create a culture of appreciation that is effective and sustainable.

And to get it right, don't assume you know what your employees want (more money is not always the answer).

Picture this: Mary has worked for your company for 3 years. She's never been late, is always smiling, and offers your customers excellent service. Her colleagues know this, but because of her introverted, quiet nature, your manager doesn't.

In that case, a recognition program where peers recognize each other is perfect for Mary. Then ask yourself how Mary would like to be recognized (public recognition might take her further into her shell). The reward can be anything, from:

Upskilling her career path
Letting her choose her working hours
Adding bonuses
Offering full payment for higher education
Offering an excellent retirement plan
And if she wants, make her a company representative within the firm.

The bottom line, different employees want to be recognized differently. Also, different employees have different abilities that serve your organization properly. So, create a recognition program that appreciates every employee's contribution.

Pro Tip: Before developing your recognition program, create goals to govern what is being recognized. Make this matter and align it with your organization's values, mission, and objectives.

BUILD YOUR TRUST

The bread and butter of employee retention strategies are now plain vanilla to a generation of employees whose demands keep changing. To successfully break the mold, you must transfer the issue of employee retention to significant parties like organizational managers and leaders. And then assess the makeup of your workforce.

Different employees experience different challenges. Therefore, they need different support solutions that meet their needs. The key to identifying struggling employees is to foster an environment of freedom of expression with adjacent support and care practices. So, build your trust!

As far as offering suitable employee benefits is concerned, let Zupnick $ Associates help. We know how to create the perfect packages to boost retention.

Cybercriminals' Newest Target Is Healthcare Vendors

mwangielton@gmail.com (Elton Mwangi) — Sun, 10 Sep 2023 21:02:48 GMT

The healthcare industry has a history of facing some of the most severe cyber security attacks.

Look at the example of Anthem Inc, now called Elevance Health. When hackers used a phishing attack to break the company, they obtained patient information that affected 78.8 million people.

Anthem paid $2.5 million in consultation costs, $31 million to notify those affected and the public, $112 million in credit protection for those affected, and $115 million to improve their security.

Still, amidst this undeniable evidence and the massive cost of cyberattacks, the healthcare industry remains a target because of its wealth of data on individuals. And healthcare institutions are not fully prepared.

Why Are Cyber Criminals Targeting The Healthcare Industry?

What's better? Targeting an individual or an organization with significant financial value and numerous sensitive data on people? This is primarily why many hackers target the healthcare industry.

And the truth is that hackers gain access to sensitive information by simply hacking any hospital or healthcare facility's electronic medical record (EMR) systems. And the sadder truth is that hacking into medical facilities is easy for hackers too.

Consider that the average cost of a phishing attack for healthcare facilities is $14.8 million annually. This amount has drastically increased from 2015's $3.8 million, so employees are not diligently trained to spot and mitigate phishing attacks.

Additionally, healthcare focuses more on patient care than data security, making these institutions vulnerable. So, if the software is not updated regularly, and employees are not trained to identify and avoid activities like phishing emails consistently, it presents an easy target for cybercriminals.

Keep in mind that cybercriminals are continuously upping their game by inventing new attack methods and software. So, by refusing to disrupt the daily care practices of a hospital in the name of cybersecurity training and development, hospitals continue to be at high risk.

Why Vendors Now?

Because targeting vendors is like getting multiple giggles from one hack for cybercriminals. Think about it, in our current healthcare system, many healthcare facilities use the same vendor's EMR system because using vendors is a cash-aware alternative to handling certain events in-house.

And since it is more challenging for healthcare facilities to invest in cybersecurity, they rely on the proficiency of their vendors. But vendors are not always forthcoming about their cybersecurity safeguards. Some are not precisely proactive about it, either, and no matter their claims, every firewall is susceptible to hacking.

And if hacking one vendor means gaining access to more than enough information, sensitive data, about patients' medical records, why focus the energy on just one facility? As Lauren Berryman explains, targeting vulnerable vendors helps cyberattacks get around the safeguards of healthcare providers, facilities, and insurers.

This is why hacking incidents involving EMR systems in 2022 increased by 20 incidents between late 2021 and early 2022, marking an 8% rate of total hacking breaches.

And because vendors are consolidated into the healthcare industry, the number of individuals affected by a breach is higher compared to a breach directly targeting a healthcare facility. To be precise, healthcare providers experience about 59,000 records per breach, while vendors experience 97,000 records per breach on average.

Vendor micro-segment services (those offered to hospitals or health facilities with a smaller bandwidth) experience an even greater breach rate, with vendor systems taking a close second. A good example is the mega breach that occurred in December 2021 on Eye Care Leaders. The company specializes in providing EMR systems to more than 9,000 physicians nationwide. The single breach exposed more than 2 million records.

What Can Businesses Do?

Make cybersecurity a primary concern for your healthcare facility. Besides, it is legally required by HIPAA to protect patient information and privacy from any attack or exposure if you handle protected health information (PHI).

This means investing in the market's most influential and updated security technologies to secure patient data. Besides implementing the right technology, business leaders must ensure that their entire organization is aware and prepared for said attacks.

Therefore, every healthcare facility and vendor requires a risk manager who can develop and run a tabletop exercise with comprehensive discussions on the signs and mitigating strategies of a cyber-attack.

The insurance industry is especially susceptible to liable costs and losses caused by a cyberattack. Therefore, it is prudent for every insurance company to determine what their significant risk is in case an attack occurs.

Once the risk scenario is determined and outlined, an appropriate mitigation strategy can be formed in its wake. Write a list of the essential things in a breach based on priority and create policies or step-by-step guidelines for handling every situation.

For example, do you have the financial capacity to pay a ransom? How can you distribute your cash flow to pay the ransom when needed? What guidelines should you follow? How will you compensate or cover your clients?

Remember, any member of your organization can easily be a target or the gateway to a cyberattack in your organization. It is imperative to make all your employees aware of your risk scenarios, train them on the proper mitigation strategies to implement, and then practice with drills to make sure the risk is reduced significantly.

For instance, consider the risk caused by vendors being targeted, outline secure vendors employees can use if an attack occurs, and provide guidelines for using said vendors.

Work As a Team

One of the most significant shortcomings of creating your cyberattack management guideline is forgetting to work as a team. An attack on an individual is an attack on the entire organization.

Therefore, you must consolidate every department, leader, and worker in your organization to make your cyberattack mitigation strategies successful. But most of all, do not forget to include the expertise of your risk team.

Having your risk management, IT, and CSO work together will provide the best mitigation results. And, like it or not, with today's cyber environment and internet use, you need working cybersecurity strategies in place.

Then Prepare Like Your Business Depends on It

Do you have a cyber liability insurance cover? Getting one will give you the cover you need for a data breach and subsequent claims when it happens. Outwardly ask your insurer whether their general liability coverage covers cyber liability.

If not, get one that covers an array of coverages for unauthorized exposure of confidential data, hacking events, intellectual property infringement, vendor liability breach, social engineering breach, and improper equipment disposal. Protect your assets, your company, and your employees.

PS: this is the time to get an employee benefits package that secures your employees in your organization. Let Zupnick & Associates help .

Top Insurance Carriers For Mid-Sized To Large Businesses

mwangielton@gmail.com (Elton Mwangi) — Mon, 04 Sep 2023 17:51:59 GMT

The United States Insurance industry is massive, with insurance premiums exceeding one trillion dollars annually. To be precise, the SME insurance market size is expected to reach $26.6 billion by 2030 because small businesses rely on insurance plans to safeguard against unexpected outcomes.

This gives insurers the impetus and opportunity to expand the SME insurance market. And with this expansion, there is an increasing need to stay competitive and gain the upper advantage. Having said that, here is a list of the top insurance carriers for midsized-to-large businesses.

1. CyberPolicy – Best Business Insurance Marketplace

This is the marketplace to be in when fishing for the best insurance coverage for your small business. CyberpPolicy has a network of insurance carriers that offer different quotes and coverage options under the CyberPolicy umbrella.

Therefore, you can find the best coverage and quote for your business in one location. The best thing about CyberPolicy is that it partners with the best insurance companies, such as Liberty Mutual, Hiscox, and Nationwide.

And because insurance quotes are offered for free, you can take time to find the one that suits your business needs and budget. The company also provides a licensed insurance advisor to help you choose your coverage.

Covers you can get from CyberPolicy include employment practices liability, fidelity and crime, liquor liability, and lessor's risk only (LRO).

Pros:

The company offers discounts when companies buy multiple policies in bundles and use the same or cross-carrier.
The company offers multiple quotes.
You can sublime online claims.
Coverage starts 24 hrs after application.
The company is available nationwide.

Cons:

Policies vary based on state.
You must submit your policy directly through the claims department.

2. Thimble – Best For Micro Businesses

This industry-specific insurance company is ideal for small business entrepreneurs that want customized, affordable, and mobile-friendly policies. Thimble also offers insurance coverage to self-employed personnel like personal trainers, freelancers, event planners, beauty professionals, and photographers.

Micro businesses also benefit from Thimble's flexible terms, like the ability to purchase a cover for a specified period and as required by the business. The Thimble app allows Micro businesses to cancel, modify, or extend their policy on demand.

With Thimble, you will get professional and general liability insurance and added coverages like event and drone insurance.

Pros:

Offers the most flexible coverage options with terms that cover you hourly, daily, or weekly.
You get your insurance certificate in one minute.
Thimble has insured more than 100 types of small businesses.

Cons:

Doesn't offer chat or call options.
A different insurer writes your policy.
The policies are not available in Washington and New York.

3. Nationwide – Best For General Liability Insurance

Nationwide's general liability coverage is very flexible, allowing businesses to add other insurance products. This means no coverage limits exist for companies that want to supplement their general liability insurance with other options.

These include auto liability, fire legal liability, employment practices liability insurance (EPLI), and an umbrella policy. Small business owners can also get specialized coverage that includes commercial property, workers' compensation, business liability, and commercial property insurance coverage.

Pros:

You get cybersecurity advice and social media support.
Businesses with annual revenue of at least $5 million get BOP insurance.

Cons:

Has no online chat support.
Doesn't offer significant medical insurance or disability insurance.
Almost half of its subsidiaries have a high NAIC complaint index.

4. Travelers – Best For Workers' Compensation

Travelers are well known for being the leading underwriter of workers' compensation policies. It is also excellent at offering the best commercial auto insurance.

The company offers very flexible services. For instance, Traveler's risk control consultants can attend to your needs virtually or in person. It also has excellent billing solutions that are adaptable to meet any business needs.

Other additional coverage options the company offers include professional liability, data breach, commercial general liability, employment practices liability, and commercial general liability, to mention a few.

Pros:

It is the largest workers' compensation insurer in the nation.
It has agents across the nation.
Its financial position is robust.
It offers commercial auto and trucking cyber coverage.

Cons:

Types of coverage vary by state.
You must call to file a claim.

5. Progressive – Best For Commercial Auto Insurance

Progressive has made the list of the top insurance carriers for midsized-to-large businesses because its auto insurance covers almost every commercial vehicle. These include business cars, military vehicles, commercial trucks, emergency vehicles, trailers, buses, trucks, tractors, vans, and SUVs.

The company is also present in all the states making it very accessible. Progressive also offers its policyholders the benefit of enjoying an unlimited travel radius in many states. And if you need to adjust your coverage, you can do it free of charge.

So, Progressive stands out because apart from offering one of the best commercial auto insurance covers, it also covers physical damages, uninsured motorists, hired auto and non-owned coverage, liability, and medical payments.

You can also get coverage for professional liability, general liability, BOP, workers' compensation, cyber insurance, and health insurance.

Pros:

It is the second-largest business auto insurer in the country.
Its auto insurance policies cover numerous risks and different types of vehicles.
It offers a discount when businesses bundle insurance policies.

Cons:

Not all states offer discounts.
Does not have online live chat support.

6. State Farm – Best For Customer Satisfaction

State Farm has held its position as one of the best SME insurance companies where customer service is concerned. With ratings of 865 out of 1000, small businesses agree that State Farm is excellent at services like billing and payments, provider interaction, cost, claims, and policy offerings.

So, if you are a restaurant, retailer, independent contractor, or professional services business that handles autopay or paperless options, State Farm will serve you well. Specialized coverage for commercial insurance comes with surety and fidelity bonds, BOP bundles, and farm and ranch insurance.

If you want extra liability coverage, you can get insured for errors and omissions liability, professional liability, employment practices liability insurance, and not-for-profit liability insurance with EPLI, among other coverage options.

State Farm has no coverage limits. It also offers other covers like retirement plans, commercial auto, and workers' compensation.

Pros:

State Farm has insurance policies you can customize.
The company insures more than 300 companies.
You have access to live chat support.

Cons:

You must call to file claims.
Not all agents can cross state lines.

Bottom Line

The insurance industry is full of industry-specific companies offering coverage to small and medium-sized businesses. However, every business faces numerous risks requiring insurance with the proper coverage limits. Therefore, the only option is to choose top insurance carriers for midsized-to-large firms. And this is what this list provides.

If you need assistance choosing a suitable insurance carrier for your business, let us help you. Reach us at Zupnick & Associates.

Is COVID Officially Over?

mwangielton@gmail.com (Elton Mwangi) — Mon, 28 Aug 2023 01:00:23 GMT

Is COVID officially over? No. It might look like we have won, seeing as the majority have stopped paying attention to the pandemic and covid-19 cases. But it's not over until it's over. So, the plausible answer to this question is not yet, and here's why:

No One Really Knows What Must Happen for it to be Over.

March 11th, 2020. This was the day the World health organization declared COVID-19 a pandemic following 4,291 deaths and 118,000 cases in 114 countries. And while the start of the pandemic is determined, identifying when it ends builds a conundrum.

It is an assessment wrought with political, scientific, and social influences, each spicing the other to form a complex agenda without a definite ending. Think about it:

Socially,

A pandemic is considered over if society is willing to accept that it is over like we might have been in recent months. And by people returning to what is regarded as the new normal pattern of living, we can agree that the pandemic is indeed over.

Yet, remnants of covid-19 cases make specific groups of people argue that COVID is not officially over. For instance, COVID overhaulers are still dealing with the remaining effects of the viral infection.

The evolution of the viral infection into new variants like the delta and the omicron variants also fails to strengthen the position of individuals that claim COVID is officially over. Look at cases where businesses claim coverage for losses resulting from the pandemic.

Despite Federal courts across the nation rejecting the plaintiff's claims seeking compensation, it is a sign that the looming effects of COVID-19 are still with us. And when asked if the pandemic was over, 51% of Americans said COVID isn't over yet.

Correspondingly, people are making decisions based on where they fall politically.

Politically,

The Biden administration believes that, as a nation, we have made significant strides in containing the spread of the virus and its deadly effects. COVID deaths have reduced by almost 90%, and most states have expired their state of emergency health orders.

As such, the federal coronavirus emergency is set to expire on the 11th of May. However, the increasing vaccination rates and antiviral therapy and the reduced mortality rates should not blindly deter the nation from accommodating the effects of the pandemic.

This is why the Biden administration still champions COVID funding. But what do the scientists think?

Scientifically,

Scientists are just as divided in the matter. Eric Topol, an epidemiologist, believes the pandemic is over because it is in its endemic stage. In this stage, a virus remains present, but it acts more like the flu than a viral infection that kills thousands of people at a go.

An endemic outbreak is also more prevalent in regions or countries and not worldwide. So if Topol's opinion is to be believed, it would mean that mutations of the COVID-19 virus, like the unexpected delta variant later followed by the omicron variant, might not pose a significant threat in the future.

The availability of vaccinations, vaccine boosters, and stronger immunity also give us a fighting chance against COVID mutations. Still, he leaves the possibility of a mutation coming into play, one that is antigenically distant from our immune system or severely affects those with a compromised immune system.

But overall, there will be fewer COVID-19 cases of adverse infections. On the other hand, Dr. David Dowdy, another epidemiologist, thinks the pandemic is in a new phase, one that is still killing at least 300 people daily in the US.

So, while it might no longer be the most significant health issue in the country, it is still a matter of concern.

According to WHO,

WHO stated in January that the pandemic is still a public health concern, although it has reached its turning point. The International Health Regulations Emergency Committee (IHR EC) for COVID-19 stated that the pandemic has not yet reached the threshold needed to determine that it is officially over.

So, while vaccines provide that severe illness and death rates reduce, the overall effect of the pandemic is not good. There is cause for concern in places where vaccination rates are low. COVID funding is also straining taxes and health systems, making spreading vaccinations and antiviral therapy more challenging.

COVID-19 cases in regions with little access to mitigation tools like vaccinations show a prevalent risk inequality. And if that continues to exist and people continue to die, COVID might never be officially over.

Global gaps where immunity to the virus is not assured also allow the occurrence of other vital mutations that we might not be ready for. In addition, the compliance rate with mitigation strategies is declining as people continuously seek to return to what is normal.

To that effect, there is an unpredictable pattern that makes it more challenging to develop a specific date when COVID-19 can be officially over. Notwithstanding, if and when the declaration of the COVID emergency is called to an end, it will remain clear, according to WHO, that COVID-19 is not necessarily over.

As Dr. Tedros, the Director General at WHO, said:

"My message is clear – do not underestimate this virus, it has and will continue to surprise us, and it will continue to kill unless we do more to get health tools to people that need them and to comprehensively tackle misinformation."

Well, is COVID officially over?

Not really. Granted, human behavior is not a reliable determinant of conclusively determining whether the pandemic is over. Political affiliations are too biased to act as a relying force of reason in deciding whether the pandemic is over.

And since scientists cannot seem to come to a compromise, the directive of WHO stands to be the apparent option to follow. And WHO believes that the COVID-19 virus still carries the potential to deliver unexpected viral activities with severe consequences.

So, in conclusion, the pandemic is far from over. But not all hope is lost. Since the pandemic is at its inflection point, it is possible to find that we are soon in a state that's no longer identified with a global health emergency status.

And PS: if you are wondering how to navigate the intricacies of offering health plans to your employees concerning COVID cases, reach us at Zupnick & Associates.

Furlough Vs. Layoff

mwangielton@gmail.com (Elton Mwangi) — Mon, 21 Aug 2023 01:12:29 GMT

Companies like Google, Amazon, and Silicon Valley Bank are making clear in 2023 that no organization is immune to financial difficulties. So, whether you are considering a reduction in force (RIF), layoffs, or furloughs, it is imperative to do it correctly.

It starts by knowing beforehand that furloughs are not the same as layoffs: they have different effects and requirements. So when choosing either for your organization and employees, you must understand their motivations and implications.

After all, making a suitable choice might mean the survival or downfall of your business after the fact. Without further ado, this is the difference between a furlough and being laid off.

Understanding Furloughs

A furlough is temporary. It is a strategy that companies use to protect their bottom line by reducing costs without losing employees. In a furlough:

A company can reduce the working hours of its non-exempt employees.
A company can temporarily reduce the pay of its exempt employees.
A company can put its employees on a zero-hour schedule, whether non-exempt or exempt.

For example, suppose you have a new project that requires additional funds but doesn’t have an additional source of revenue. In that case, you can furlough your employees, divert their salaries to the project, and then put them back on the payroll once the project is complete.

Notwithstanding, specific laws govern furloughs that any business must follow. For instance, furloughs are not supposed to last more than a year. It is also illegal for employees to work (no matter how small the task might seem) when furloughed.

Any task given, including replying to an email, is grounds for payment. Moreover, a furlough will exempt you from paying employee salaries, but it keeps you liable for paying their employee benefits, like life insurance and health insurance.

These laws might differ from one state to another but are still consequential for your business and employees if not adhered to. This has a double-edged effect on your organization and employees:

While you save on salary expenses, your employees lose their primary income. Your employees can also collect unemployment benefits, which are not always guaranteed.
Because a furlough is temporary, you don’t entirely lose your employees since you can hire them back once your situation is stable. However, keeping them in limbo without guaranteeing you’ll take them back might push them to find employment elsewhere.

With that in mind, laying off your employees or opting for a reduction in force might be a better option if the furlough progresses for a long time. So before settling for a furlough:

Determine the positions and individuals that will be affected
Determine the best communication strategy to use when sharing your decision with your employees
Determine the timeline for your furlough

And when you choose a furlough, ensure you communicate with your employees beforehand and offer a plausible timeline for things to return to normal. Address the implications of the furlough, like ensuring that the employee does not work.

Let your employees know that they will keep their benefits. In cases where working hours are reduced because of the furlough, some employees might become ineligible for certain employee benefits.

And if they are eligible for unemployment, let them know and guide them on how to file for unemployment.

Understanding Layoffs

Layoffs, on the other hand, are permanent. It happens when companies have no work or funds to keep operations as they are. Employees, in this case, should have no fault, making them eligible for unemployment.

But unlike furloughs, employees don’t receive employee benefits even though they can maintain their group health benefits from the company health care plan if they cover their premium costs.

Still, companies can offer their employees a severance package to help them transition into new employment. So with layoffs, the organization saves costs on benefits and gives its employees the freedom to start looking for alternative employment immediately.

On the flip side, the company loses skilled workers, incurs unemployment costs, and carries the burden of training new and possibly unskilled workers when it gets back on its feet.

However, some companies, like seasonal companies, have been known to conduct temporary layoffs that take about 6 months. Here, companies will lay off employees (albeit permanently) but hire them back once the new season begins.

So, if layoffs are inevitable for your organization:

Assess your state and federal regulations where layoffs are concerned to ensure you remain compliant. Look for regulations like the Older Workers Benefit Protection Act and the Worker Adjustment and Retraining Notification Act.
Consider offering your employees a severance package. While the law does not mandate it, it shows your outgoing and remaining employees that you care for their well-being. You don’t have to be glamorous; you can offer a one-time payment or continued benefits for a period. Some companies provide placement services and counseling sessions to help former employees cope with losing work.
Let employees know that layoffs are underway. Be honest, clear, and concise. Help them file for unemployment and COBRA benefits if they are eligible. And let them know when they will get their severance package and how they can access your assistance programs.
Explain why the layoffs happened to help your remaining employees have peace of mind. Then reassure them that work will continue as usual.

What About Reduction In Force (RIF)

Unlike furloughs and layoffs, reduction in force constitutes the permanent removal of positions. So, in some respects, layoffs will turn into a reduction in force if the business doesn’t pick up. One thing to remember is that a reduction in force comes with a negative connotation.

In most cases, RIFs have unplanned but expected errors that leave a bad taste in the remaining employees. For example, when a company considers certain positions redundant and requires that they go, the remaining employees will feel unsafe.

And even if the company allows the leaving employees to resign willingly or take early retirement, the remaining employees will still feel unmotivated. On the other hand, RIFs can be suitable for organizations because they eliminate redundancy, streamline operations, and save on costs.

Nonetheless, a reduction in force is a last resort for businesses. And if it is your chosen option, ensure you know your laws and regulations, communicate with employees, avoid disparate impact, and consider offering a severance package to your employees.

So, To Furlough Or To Layoff?

Now that the difference between a furlough and being laid off is clear, the question remains, which option is better for your business? The answer is never genuinely particular but can be determined based on the impact of the choice.

For instance, seasonal businesses are better off with furloughs than layoffs. Companies that are restructuring can opt for layoffs instead of furloughs. The bottom line is that the choice boils down to business needs in the present and future.

Whether you choose to furlough, layoff, or RIF, let us, Zupnick & Associates, help you prepare the right severance package and employee benefits.

All About The Senior Benefits Market

mwangielton@gmail.com (Elton Mwangi) — Mon, 14 Aug 2023 01:31:40 GMT

In 20 years, the employment of workers aged 65 and older has grown by 117%. And now, individuals aged 55 and above are among the fastest growing group in the workforce. Age is seemingly the new gold driving many companies towards a preference for older workers, albeit the value sought in millennials and Gen Z.

The working premise is that 75% of people aged above 65 years are acclimated towards excellent work ethics through hard work, stability, respect, and discipline, unlike their younger counterparts.

Sure, the learning curve, in this case, is longer, but the long-term benefits of hiring and retaining senior workers seem to be worthwhile. Well then, it stands to reason that employers would offer senior benefits driven toward fulfilling work and support for later life.

That said, this is all you should know about employee benefits for seniors.

What The Employee Benefits For Seniors Look Like

The best employee benefits meet the needs of every demographic in the business. That means a company that performs well on the employee benefit scale will offer benefits that meet the needs of older and younger staff members.

The problem is that most companies only focus on benefits that fit the general mold of their ecosystem. This, in most cases, is subpar for older workers. Why? The needs of your senior workers are not the same as those of their younger counterparts.

Think about it. Older workers have more financial responsibilities to worry about. Therefore, concerns about retirement plans, education costs for their children or grandchildren, and financial debts, like education debts, are at the top of their minds.

Additionally, your senior workers no longer think they are invincible, which makes health care a staple in their benefits package. And aside from the two, most senior workers return to work because they crave meaningful work with valuable social connections and interaction.

So, companies that appreciate the value of older workers understand that they must customize senior benefits that keep this asset motivated and committed. And you need senior workers in your organization because:

Senior workers have expertise and experience in your industry or company that younger employees cannot match. They have a fluent knowledge of your products and services (don't forget the history behind them), which gives them the insight to ask the right questions, find the right solutions, and build towards success.
Rarely will you find a group offering the same work ethic as senior workers. They show up on time, take fewer breaks or off days, and are more willing to extend if it means reaching targets on time.
Senior workers have a wealth of networks they use to facilitate operations for your business. Their network can get you into certain doors faster or get you loyal and repeat customers for generations.
And you can put them in charge of training younger workers, thus passing down essential skills to the next generation.

So, you see, building successful and competitive employee benefits for seniors is non-negotiable. But what that means is that you must adopt strategies that:

Offer flexible cultures and professional development opportunities for career advancement.
Offer autonomy while supporting social interaction and contact.
Offer occupational health and wellness support.

After all, older workers require more assistance meeting financial needs and training as they assimilate into a world of work with automation and other technological innovations.

Benefits That Appeal To Senior Workers

1. Health Care Benefits

It goes without saying that your senior employees need a robust health care benefit plan. They are more susceptible to medical, mental health, and burnout issues, thus, making them more eligible for health care benefits.

As such, offer access to physical and private medical care. Add unique health care plans like menopause support and wellness programs like yoga which can help improve the life of your senior employees.

2. Caregiver And Senior Care Benefits

Senior workers are privy to caregiver responsibilities. But they also have senior care responsibilities that dig into their financial, mental, emotional, and physical well-being. Consider a 55-year older employee taking care of an 85-year-old parent and still paying student fees for their youngest.

In any case, give your senior workers added benefits to the FMLA, like paid leave and additional senior care service benefits like the employee assistance program (EAP). For instance, the dependent care assistance plan (DCAP) caters to childcare and senior care needs where applicable.

That is, if the senior who requires care is mentally and physically incapable of self-care and lives with the employee, they can qualify for DCAP. Dependents under 12 years living with the employee automatically qualify.

Another example of the benefit to offer is respite care to give your employees short-term relief when they need rest from the care they give others. Care subsidies are also invaluable to employees caring for elders in their families because they cover direct or backup care costs, like prescription drug costs.

Offer onsite caregiver support groups for your employees to help them deal with the mental stress and fatigue of caring for loved ones. Opening up about their experiences can help boost workplace morale.

3. Flexible Working Benefits

For older employees, having the leeway to work while meeting other vital obligations like eldercare, childcare, and health care is essential. Therefore, most older workers will look for companies that allow flexible working schedules.

Flexible programs like hybrid and remote working allow older employees to work longer because they work with less commute. Flexible working schedules like 4-day working schedules also provide ample time for productivity since it has reduced burnout, fatigue, and anxiety.

This increase in productivity provides better results for the organization. Besides, benefits programs that help senior workers remain motivated, committed, and engaged in the workplace are an added advantage for organizations that wish to stay competitive. And offering flexible work schedules is one key to staying competitive.

4. Professional Development Benefits

Older employees need training and learning programs that help them assimilate into a work culture imbued with technological solutions. Professional development benefits empower senior employees with the right skills to work efficiently.

Non-professional development opportunities also encourage personal growth, allowing your employees to work longer, which benefits organizations. Add financial coaching benefits to help employees better manage and invest their finances. This also helps them prepare for retirement beforehand.

5. Retirement Planning Benefits

Retirement planning benefits are among the most sort after employee benefits for seniors because they increase the financial stability of older workers. This is especially critical for employees returning to work to unburden the challenges brought by the increasing living costs.

Keep in mind that retirement planning requires proof of age to determine monthly contributions, meaning the cost of coverage, in this case, is higher. Also, older employees are likelier to retire than their younger counterparts.

Therefore, contributing to your older employees' pension plans relieves a heavy burden that improves their wellbeing and peace of mind.

6. Student Loan Repayment Benefits

Help your employees repay their student loans with a repayment plan package. Offer regular monthly or yearly payments to ease their financial burden and give them financial freedom.

You can also help your employees pay for their children's or grandchildren's college fund with a savings program where you match the amount they contribute. Some organizations even offer full scholarships to their employees' children based on specified qualifications.

Make It An Employee Choice

As an employer, you must hold your senior employees responsible for their jobs but also provide them with the support and resources they need to work optimally. This is where senior benefits come in.

Yet, it is not enough to provide senior benefits; you must provide your employees with the most competitive and suitable benefits. Remember, senior workers offer businesses a wealth of information and experience that benefits the company and younger employees in the workforce.

So, if you need help figuring out the employee benefits for the seniors in your organization, let us help you. Reach us at Zupnick & Associates .

Legalities Of Insubordinate Employees – What To Know

mwangielton@gmail.com (Elton Mwangi) — Mon, 07 Aug 2023 16:17:31 GMT

Once you offer any employee a contract, there is an implied expectation for mutual trust and confidence. So, when insubordination occurs at work, it logically makes sense that termination is the first thing that crosses your mind.

Besides, you cannot risk keeping an insubordinate employee because the threshold for loss is high – lost trust and morale among workers, no respect for authority figures, and damaged employee engagement. You cannot risk harming your working culture, data integrity, and productivity.

Still, keeping your head while you navigate the steps for legally terminating an insubordinate employee is your margin of safety. Think about it, the legal implications of summary dismissal can result in lost time defending your actions in court and making massive buyout payments at the expense of your company's cash flow.

Not to mention, a bad reputation threatens your buy-in capacity, be it from investors, customers, or top-talent employees. So, no matter how justified your reasons are, first, plead your case through proper investigation and documentation, seek legal counsel, and look for better disciplinary actions before deciding on termination. This is how you can do that:

Get Down the Brass Tacks of Insubordination

Top of mind, insubordination occurs when your employee refuses to follow a supervisor's instruction or directive intentionally and after acknowledgment. By and large, there is more to insubordination than meets the eye.

For example, company policies, HR laws, and employee rights protect some instances of insubordination. Say a supervisor gives employees instructions that violate the company policy. In that case, any employee who refuses to adhere to the orders is not insubordinate.

Certain laws also protect employees from insubordination, like when they act under collective action. OSHA and the government equally protect whistleblowers. Additionally, the Occupational Safety and Health Administration protects employees accused of insubordination if the work or the instructions provided put the employees' health in danger.

Therefore, you must determine the realities of individual incidences before citing insubordination. For example, if cursing is commonplace at your office, then a cursing employee is not insubordinate.

Behaviors of insolence (verbal intimidation, cursing, mocking, eye-rolling, and argumentative behaviors) are also insubordinate: they are especially critical because, if left unchecked, they become a cancer that slowly infects your workplace, thus, altering the supervisor's ability to manage or lead.

Notwithstanding, issues like insolence are not clear-cut. And in other cases, employees might act insubordinate because of underlying problems like stress, unfavorable working conditions, or pushing back against unfair treatment.

Let this be an incentive to pursue other solutions other than termination. Keeping that in mind, these are the steps to terminate an insubordinate employee legally.

Steps of Legally Terminating an Insubordinate Employee

Step 1: Investigate

When cases of insubordination are challenged legally, the employer is asked to prove that a direct order was issued, which the employee received and understood. The employer is also requested to show that the employee refused to obey through nonperformance or a statement of refusal.

Therefore, your first step should be to determine whether insubordination occurred and how severe it is – remember to document everything. Start by assessing how the order was issued (orally, face to face, or written) and who gave the order. Was the order appropriate?

Then determine whether the employee understood the order (were the instructions clear, what would compliance look like?). Look for evidence of refusal (were there witnesses in this case?) to strengthen your case.

If there is evidence of refusal, check whether the employee communicated about it with plausible reasons (in this case, the insubordination is likely a pushback). In instances of insolence, determine the impact of the insubordinate behavior.

Finally, if there is evidence of insubordination, confirm that the employee is well-versed in your office policies. Additionally, check their records to determine whether this is a first-time offense or repeat behavior.

Step 2: Conduct a Hearing

At this juncture, it would be myopic to determine a disciplinary action without talking to the employee first. Remember, the goal is to focus on fairness and problem-solving more so than termination – unless it is absolutely necessary.

So, talk to your employee to determine the root cause of their actions. Listen actively without judgment, be objective, and offer your support. You might find that differing orders from different managers or bulk work are causing unexpected stress among your workers or that your new HR laws are daunting.

Or maybe your mid-level manager is championing his team, and what they think is pushback comes off as insubordination. And before formally starting the hearing, give your employee a notice.

Address their right to have a representative in the hearing; it could be a witness from work or a trade union representative. And finally, be mindful of the fact that your employees are fallible.

Step 3: Outline the Consequences

Use what you learn in the hearing to determine the best cause of action based on the policies in the employee's contract, HR laws provided, or the company's disciplinary policy. Typical disciplinary outcomes in order include:

Verbal warning
First written warning
Final written warning
Termination

For instance, if the employee refuses to follow orders for the first time and your policies dictate that termination is only tenable after the third offense, settle on warning them.

However, serious insubordination that causes irreparable damages warrants summary dismissal. Examples include fraud or theft, physical violence, and tarnishing the business name in the media.

But even when gross misconduct is evident, never act outside the governance of your company policies. Always objectively deal with insubordination at work. Once you arrive at a decision, document it, and notify the employee at your earliest convenience.

The written document should clearly outline the facts of the case and the reasons that justify your decision. If the final decision is to terminate, ensure you give the employee ample notice per your HR laws.

Aim for Prevention

Insubordination is bound to happen in any working environment. Therefore, be proactive and work on prevention by setting clear limits (make this especially clear for insolence, subtle sabotage, and avoidant behavior since they are not apparent behaviors).

Use a progressive discipline model, one that documents multiple instances of rebellion before arriving at termination. Listen to your employees' concerns and follow ethical standards and company policies.

And remember, mistakes happen, and employees have reasons for acting insubordinate. And unless you have addressed these issues before, your goal should be to work with the employee to rectify their challenges.

Consequently, this protects you from lawsuits later because insubordination is wrought with claims from both sides. And the law can protect employees from cases of insubordination. That said, always aim to terminate an insubordinate employee legally.

Basic Care You Should Expect From Your Broker After Open Enrollment

mwangielton@gmail.com (Elton Mwangi) — Mon, 31 Jul 2023 16:37:47 GMT

They say it's never done until it's done, and your broker sure does owe you some residue of responsibility post-open enrollment. Because, like it or not, enrolling your employees in the best employee benefits packages is not the last of it. When that calendar finally turns, it'll come with its challenges. So, you need a broker that understands that their crunch time season for open enrollment goes beyond the start of the new year.

And knowing the post-enrollment duties of a broker should help you set suitable standards beforehand, consequently ensuring you stay equipped pre and post-open enrollment. That said, this article covers the post-enrollment duties of a broker, meaning what you should expect from your broker. But first, let's look at how open enrollment works for companies and brokers.

Open Enrollment for Companies

The Affordable Care Act (ACA) specifically dedicates the open enrollment period to companies and individuals that need to change, renew, or enroll in proper health coverage. This yearly practice allows every company to update its health package, including the employee benefits package.

So as an employer, you can choose to engage in the open enrollment season either through the federal marketplace – which runs between the start of November and the 15th of December – or using the state-recommended dates – which can differ from state to state as long as the deadline for submission remains the 15th of December.

And for individuals or employees, the Affordable Care Act provides what is known as a special enrollment period to give leeway to cases where enrollment was not possible within the open enrollment season.

Usually, this requires a life event trigger, like having a baby, in which case, the special enrollment period gives an individual 60 days to enroll in a health plan after the said life event. The extension is awarded on a case-by-case basis.

All the same, the Affordable Care Act open enrollment season is a time for employers to assess whether their benefits package is prudent for attracting and retaining top-talent employees.

Open Enrollment for Brokers

As for the broker, the open enrollment season starts long before November. Metaphorically, the broker is the company informant, meaning they must be articulate where health insurance and employee benefits for companies are involved.

As such, the broker hitherto learns about current trends in employee benefits, common barriers employers are likely to face when sourcing and enrolling in health insurance, and health options that form the best benefits package for employees.

Once the broker immerses in this information, they must create a personalized benefits package option for their client. The goal here is to ensure employers and employees alike access the benefits they need while reducing costs and improving satisfaction levels.

It requires an acute understanding of the health insurance options and how they affect different groups and individuals in the workplace. This cannot happen unless the broker prepares themselves beforehand to conduct the best open enrollment season for companies and their employees.

And yet, the broker's work is not done once the 15th of December rolls over. An avid broker offers basic care services post-enrollment to enrich the company and its employees further.

After Open Enrollment Basic Care Essentials

Once open enrollment is complete, your broker should provide these basic care tasks before and after the season ends:

Ensure You Have the Necessary Resources

One thing your broker can do better than you is ensure you have the right resources to enact your health insurance adequately throughout the year. That means ensuring you have all the necessary resources at hand and on time.

For example, employees should receive new ID cards for their benefits packages after open enrollment. And sometimes, the administration in charge of distributing these cards might delay or make delivery mistakes. Your broker should ensure the carrier gets the IDs to each employee successfully.

Also, remember that health insurance benefits change year over year regardless of whether you keep to the same policy or carrier. Preserving the dignity of your benefits package means staying informed of any changes and how they impact employee benefits packages.

To that end, your broker should collect and distribute insurance literature that informs all your workers of updated health insurance nitty gritty.

Examine your Employee Accounts

It is in your best interest and that of your broker that every employee is adequately onboarded and proficient in managing their benefits package because that is their responsibility. However, some of these packages are too complex for employees to understand.

And others find the use of modern technology and online accounts intimidating. As such, your broker should, at the very least, provide the right onboarding program to support your employees and check on the employee accounts regularly.

The check-up should continue until your employees can easily access, maneuver, and manage their accounts. Another thing, every employee should know how to check their pay stubs. That means knowing the deductions incurred on primary health insurance options or any additional plans in their employee benefits package.

If and when withholding mistakes occur, your employees should be prepared to handle the terms of withholding without breaking a sweat. A suitable broker will teach your employees to check their pay stubs and follow up effectively when mistakes occur.

Offer Year-Round Availability for Assistance

Within the year, you are bound to face specific challenges when managing your health insurance details. For instance, consistently keeping up with compliance and tax issues can be challenging, especially for small businesses with minimal resources and support staff.

Your broker's support can help you make essential strides in keeping up with tax and compliance obligations for the sake of your business and employees. And since they are well-informed about the intricacies of navigating such issues, their support will make your work easier and give you peace of mind.

Audit your Open Enrollment Process

Just because something works appropriately doesn't mean it cannot be improved. Therefore, expect your broker to assess and audit your open enrollment process once the season ends. The wisdom of hindsight allows them to identify workflows and spaces that need more proficiency and efficiency.

For instance, some materials can be carried forward to the next season, thus, saving small businesses money. Or the broker can recommend an update to outdated systems to improve efficiency well into the future.

Keep in mind the value of employee feedback in the audit process. It will help you narrow down your health insurance to needed benefits and not merely wanted ones, ultimately saving you costs in the long run.

Let your broker create a survey for your employees to fill out every quarter throughout the year. And use this information to improve your employee benefits choices.

Secure the Right Kind of Broker

You can never go wrong with extra care and support. So, find a broker that cares for your business and workers post-enrollment as much as they do during the season. Ergo, you must articulate the post-enrollment duties of a broker when choosing the right one for your business. Because once the open enrollment season is over, you will need someone to champion the success of your benefits package. And this requires a diligent broker that follows up with your employees, keeps an eye on insurance updates, and keeps your carriers on their toes post-enrollment.

Insurance Doesn't Help Your Business Thrive, It Helps It Survive

mwangielton@gmail.com (Elton Mwangi) — Mon, 24 Jul 2023 15:07:46 GMT

Even the shrewdest business owners are not safe from devastating business risks. An unforeseen accident, a simple mistake, or even changing tides in the market are all factors that can take down the efforts of a vaunted business. That is why, regardless of stature or experience, business insurance helps your business survive.

Look at the case of SVB bank as a recent example. Cited as the most significant bank failure in the United States since the global financial crisis, the SVB bank was brought down because:

It had the second-highest ratio of uninsured deposits among large banks in the US
It invested half of its assets in hold-to-maturity (HTM) securities for ten years

All welcome strategies for a bank that was performing reasonably. SVB did not anticipate the collapse of the tech boom that resulted in many of its clients withdrawing their deposits. And while the increasing withdrawals exhausted the bank's cash reserves, the rising inflation rates caused the low-interest HTM securities to lose value.

Though your business might not be cut from the same SVB cloth, business insurance helps your business by providing a safety net that mitigates unexpected risks. Yet, it's not merely enough to have business insurance; you must choose the right approach to business insurance to meet modern risks.

Here are the types of business insurance that will help your business the most. We'll also tell you why you need them. Let's get started.

1. Cyber Insurance

Cybersecurity threats are becoming something to lose sleep over. Businesses, regardless of size or industry, are increasingly targeted. Reported vulnerabilities are increasing as hacking software becomes more sophisticated with technological advancements.

And more than anything, hackers are becoming greedier and more malicious. As a result, cyber breach attacks in the open-source world, like the SolarWinds attack, spread the risk to global organizations.

And even when the attack is locally targeted, the cost is still significantly high, with US companies paying, on average, $9.44 million in 2022 for data breaches. And get this, 47% of US businesses experienced a cyber-attack in 2022.

Ergo, this is the value of cyber insurance for your business (especially if your business accepts credit cards prone to most hacks). A cyber insurance policy allows you to transfer the first-party and third-party costs of a data breach or a cyber-related attack.

These include the cost of computer forensics, data breach notification, card payment penalties, remediation, crisis management, and public relations. Your insurance broker should recommend policies offering complete coverage for these attacks.

That is, cyber insurance should cover first and third-party costs and combine that with traditional business insurance and your E&O policy to offer full coverage.

2. Business Liability Insurance

Employees come with enormous risks because they make decisions and implement actions that directly affect your business. For instance, an employee driving a business vehicle needs coverage in case of an accident that causes harm to pedestrians, public and business property, or the employee.

Apart from your employees, your business relationship with your customers, creditors, or other third parties can also result in a costly legal dispute, in addition to settlement payments for damages. Therefore, you need business liability insurance coverage to protect your business from potential liability risks. These are:

Workers Compensation

Workers’ compensation insurance helps your business employees get compensation if they are injured on the job. It is mandatory insurance coverage for any business with employees.

Commercial Liability Insurance

Commercial liability insurance protects your business from third-party lawsuits involving bodily injury and associated costs like settlement, medical, and legal expenses.

Employment Practices Liability Insurance (EPLI)

When employees claim wrongful termination, discrimination, sexual harassment, and failure to promote, this business insurance will cover your costs.

3. Property Insurance

The risks to your business property are many. They can range from property damage caused by natural disasters like floods and hurricanes to theft by your employees or outside parties. Damages to your vehicles, buildings, inventory, and equipment stall business operations. and dig into your cash flow.

You need business insurance to help your business mitigate these losses quickly and at reduced costs. The best property insurance to consider in this case includes:

Commercial Property Insurance

Generally, property insurance covers your entire business property and the assets inside the property. Therefore, this business insurance covers assets, personal property, and equipment lost to natural disasters, theft, or fires.

Your insurance broker can also extend this coverage to protect you from the loss of income after said property risks. Ask your broker for coverage that insures your property against total replacement value, not just the market value, to ensure you get any recent property improvements during compensation.

Commercial Crime Insurance

This insurance protects your property from crime-related losses, sometimes not covered by commercial property insurance. It covers losses of security, money, and property lost to criminal activities, whether instigated by your employees or outside parties.

Commercial Auto Insurance

This coverage extends to auto insurance for your business vehicles.

Business Interruption Insurance

Other indirect events like supply chain breakdowns or technological failure can interrupt business operations. You must, therefore, provide your business with the right coverage to help you remain cash flow positive as you rebuild since commercial property insurance doesn't cover lost revenue.

This is the work of business interruption insurance. The policy covers the lost profits and revenue that result from uncontrollable business interruptions. It is an excellent policy for businesses that have limited capital reserves.

4. Professional Liability Insurance

Service providers are just as liable for legal disputes because some customers might have differing ideas on what quality services entail. And in some cases, the legal argument might have merit, like in the case of a tax preparer making an error while filing client taxes or technology service providers offering solutions that don't meet the desired qualifications.

Still, even when unwarranted, you need protection from customers seeking legal recourse for your services. And professional liability insurance covers you from defense costs and service damages to a limit, usually $1 million.

A coverage option like Errors & Omissions (E&O) gives your business coverage if you offer professional services to third parties like consultants, accountants, and lawyers.

What to Consider Beforehand

Owning or running a business exposes you to risk. Therefore, you need the right insurance coverage to safeguard against property damage and data breaches, among other business risks. Ultimately, the business insurance that helps your business the most is the one that meets your unique needs. Additionally, the risks your business encounters will differ from those of a similar competitor in your industry. That requires you to consider:

Your revenue and insurance budget
Your projected business growth
Your products and services and the risk profile in your industry
The type of property you own or the ones you've leased
The number of employees you have

The possibility of insurance risk is also a critical element to keep in mind as you find the right coverage for your business. For instance, many business owners fail to consider the risks of international manufacturing and transit issues.

In such a case, insurance like business interruption insurance would provide the proper coverage to keep business operations flowing as mitigation strategies are implemented.

Determining your business's most significant insurance risks and buying insurance coverage that protects you is imperative. Also, remember that some business risks require a custom insurance program.

An example is damage caused by natural disasters like earthquakes. Usually, insurance companies don't offer coverage here because it wouldn't be financially viable. If the impact of damage is also unpredictable, it is also likely that many insurance policies will not cover the risk.

Nonetheless, if you are prone to these risks, your insurance broker can arrange for specialized coverage for your business.

So, Become Adaptable with the right Insurance Coverage

An insurance policy indirectly contributes to the growth of your business (like in the case of getting cash flow from a business interruption insurance coverage). Still, primarily, its core value is to help your business survive by providing a safety harness when the unexpected occurs. So, instead of liquidating your assets or going bankrupt as you try to mitigate insurance risks, get the right business insurance to help your business beat the long and short-term odds.

Is Corporate Consolidation Good For Employee Retention?

mwangielton@gmail.com (Elton Mwangi) — Mon, 17 Jul 2023 15:18:17 GMT

Corporate consolidation is an exciting opportunity for any C-suite executive on the verge of exploiting opportunities promising new heights, more profitability, and increased talent acquisition.

But for employees, it is a constant tug of war between worry and anxiety because, more often than not, the human element is lost to the "big picture objective" of corporate mergers and acquisitions.

So, you'll find that employee retention after a merger is challenging due to factors like the fear of inevitable layoffs, culture shock, manager apprehension, and poor communication that reduces employee morale.

And, like it or not, retaining key employees is imperative to maintaining a successful organization post-merger. So, is corporate consolidation good for employee retention?

It Depends!!

Corporate consolidation is, at its core, a marriage of convenience. But in it, you're asking employees from different organizational cultures, corporate missions, and values to find a way to work together.

Keep in mind that this is a large group of individuals with differing ambitions, personalities, and working preferences. Therefore, if the value of human capital is not put at the forefront of the consolidation strategy, employee retention after the merger will be nearly impossible.

On the other hand, aggressively honoring employee rights, whether you lay them off or not, during the merger ensures that your employees will be more invested in making the merger work.

So, the goal is to definitively understand corporate consolidation's positive and negative effects and how they contribute to retaining employees and then build a retention agreement around that.

So, How Do Consolidations Affect Employees?

A study by AON/Hewett showed that a change event in an organization causes a 23% increase in employee disengagement even if they retain their jobs. And to get back to pre-merger engagement levels, the consolidated entity takes about three years. In summary, the disruption caused by mergers causes employee anxiety because:

Mergers tend to overlap existing roles making it imminent that some employees will be removed to create a budding new workforce – and your employees know this too.
The change in the social dynamics in your "new" organization throws your employees into disorientation as they try to find a new way to work with a new group of individuals. And if the "change" requires them to upend their lives, the most probable option will be to resign.
Change in leadership roles might cause frustrations among managers who lose their positions to other leaders, causing unrest that trickles down to subordinates. Also, if valued managers or leaders leave the organization, their subordinates might jump ship in tandem.

This fear of the unknown causes employees to look for work elsewhere, motivation to dim, and the value in the workforce to deteriorate.

Make Corporate Consolidation Good For Employee Retention

A Harvard Business Review report sort to determine why 70% to 90% of corporate consolidations fail. The report showed a lack of a clear strategy for open communication and effective project management as reasons for these failures.

In a word, problems concerning employee retention after a merger are primarily caused by miscommunication and poor communication. Vague communication is also a recipe for reduced employee productivity and morale because your employees don't feel protected or respected.

So, in a merger, over-communication is not a thing. Instead, working on your communication strategy helps you win the hearts of your key employees, and retaining them might not be soo difficult. Here's how you can do that:

Create, Implement, and Share your Change Management Strategy

It gives you a chance to communicate with your employees about the nitty gritty of the merger and how it will affect their roles and responsibilities. Engaging your employees throughout the changes empowers them to add value and advocate for the consolidation. That said, in your strategy:

1. Show You Understand The Importance of Organization Culture

An organizational culture enforces shared beliefs and values that reinforce employees' attitudes toward an organization. And assuming that a merger will create a suitable alliance between key employees organically is myopic.

Besides, your business is only as good as its key employees. Therefore, resolving the cultural differences in a merger is imperative. This harmony should segue from obvious issues to obscure ones like feedback styles.

For instance, figure out how employees interact, their personal preferences, and how communication is broken down between individual employees. Understand how employees from both organizations interact with problems and processes individually and in a group setting. Then curate a complementary culture for key employees post-merger.

The challenge is that mergers and acquisitions are shrouded in secrecy. As such, the organization can set a new direction, advocate for employee buy-in for this new direction and create a supportive channel for implementing these changes.

That is, define desired processes, systems, and behaviors clearly. Once you've created a brand that all your employees can relate to, develop realistic goals for your new business culture. Give your employees time to adjust to the new normal and offer training to those who need it.

Your new senior managers also need a channel defining their role in the new organizational culture. Gaining credible leadership requires the organization to provide clear communication consistently, which, in turn, appraises the consolidation and secures employee loyalty.

2. Make Consolidation Benefits Clear

While some employees might not want to upend their lives, others would be thrilled by opportunities that allow them to go abroad, upskill, or work for a more prominent company.

Therefore, share the ambitions of the merger with your employees and how they create opportunities for employees to uptick their careers. Include better salaries and other benefits in your benefits package if available.

3. Honor Employee Rights

Respect the rights of the employees you choose to lay off by providing their severance pay where applicable and other benefits outlined in their employee-employer agreement, like giving them ample notice before letting them go.

If you retain employees, clearly communicate any changes in the employee-employer contract in the retention agreement.

For instance, benefits packages and employee roles change in an acquisition, and employees have a right to know. It'll also reassure your remaining workforce that their welfare is top of mind for the organization.

4. Provide a Feedback Channel

Use this channel to answer your employees' questions and provide obvious and comprehensive answers. If you cannot communicate this strategy to your employees face to face, leverage technology to reinforce your message consistently. Include a support system where employees can feed and get answers.

The Human Element Is Not To Be Trifled With

As Catherine Hawkes, a senior employment associate at RWK Goodman, once said, cultural integration is critical in an organization because it determines workplace collaboration, leadership style, and decision-making.

Yet, it is often overlooked in merger integration in favor of the legal and financial implications of the acquisition. And when employees feel left out, they experience increased unrest, contributing significantly to the failure of most mergers.

Well then, is corporate consolidation good for employee retention? The simple answer depends on your overall merger integration strategy and retention agreement. You must contemplate whether a merger integration suits employee retention post-merger.

C-suite executives, management teams, and the buyer's board must conduct due diligence concerning human capital and its contributing value to the merger integration. It requires open communication, employee recognition, and outstanding leadership where buyers become curious about the culture and values of their incoming employees pre-merger.

And from this information, the organization can create a new culture that provides a middle ground between the two companies that support employee retention.

Can A Broker Help with Workers’ Compensation? – The Silver Bullet

mwangielton@gmail.com (Elton Mwangi) — Mon, 03 Jul 2023 15:01:27 GMT

Yes, a broker can help with workers’ compensation insurance. If you decide to look for an insurer without the help of a broker, you might incur a cost that hurts your bottom line.

According to research, workers’ compensation insurance is most expensive in New York and California. It costs 1.2% of total compensation for private industry and civilian workers.

But brokers don’t just help you find the best price and negotiate rates with insurers, there’s more.

FIDUCIARY RESPONSIBILITIES TO THE EMPLOYER

A workers’ comp insurance broker acts as the employer’s fiduciary and protects the employer’s financial well-being. This does not only mean finding the best insurance price for the employer. The broker recommends the best financial safeguards of the employer’s assets for the short-term and the long-term.

For instance, if insurer A provides a lower initial price but the broker knows the company offers poor claim service, resulting in injured employees staying at home longer than necessary, leading to considerably higher claim costs and more administrative challenges for the employer, then insurer A would be a bad recommendation.

The broker should recommend insurer B. Insurer B costs a bit more initially but offers excellent customer service and lower than average claims expense.

DESIGNING, IMPLEMENTING, AND MANAGING SAFETY AND LOSS PREVENTION PROGRAMS

If you don’t reduce claims frequency, workers’ compensation claims can cost an arm and leg. You need well-designed safety and loss prevention programs that are effectively implemented and aggressively managed to reduce direct claims costs.

The same programs also help eliminate indirect costs of workers’ compensation claims, including:

Administrative expenses
Lost productivity
Hiring temporary help

Workers’ compensation coverage brokers make a significant difference in this arena. They’ve taken the responsibility of designing safety programs and implementing and managing them. They work with capable engineers, risk control specialists, and safety professionals to enhance safety in your business and mitigate losses.

What has led to this service evolution? Many insurance carriers have reduced and eliminated loss prevention programs and personnel as it’s not profitable. Insurers that still offer loss prevention services use inexperienced personnel.

TRAINING CLAIMS MANAGEMENT TEAMS

How the employer’s management team responds to employee injuries at the workplace has a critical effect on the disposition of the claim. A poor response can mean failure to preserve evidence, investigate the incident, and report the claim, resulting in:

Relinquishing medical control
Increased litigation
Adverse employee relations
Fines
Penalties

Since supervisors know about claims first before other executives, they must be trained to direct and manage events following the accident, investigate the claim and report it, and work well with injured employees. They also need to be trained to correct unsafe working conditions and practices that lead to claims.

Since insurers have other fish to fry, they will not be involved with aggressive claims management advocacy. They’ll only train on simple claims processing, which isn’t enough. That’s why business owners rely on workers’ compensation coverage brokers with teams of claims management advocates to train their claims management teams.

SELECTION AND MANAGEMENT OF MEDICAL PROVIDERS

Working with medical providers who don’t specialize in occupational medicine is a harbinger for inflated claims costs. Primary care physicians may take a more conservative treatment approach, which reduces medical expenses but extends the period of temporary disability. This escalates indemnity expenses and total claims costs.

Therefore, you must select workers’ comp medical providers who:

Focus on occupational medicine
Understand your operations and HR philosophies
Are willing to have a close working relationship with your broker and insurer

Experienced brokers will give medical provider selection guidelines and even help to interview, select, and monitor the effectiveness of medical providers for good measure.

They’ll also help set up effective referral processes and continual provider communication programs.

CONCLUSION

Can a broker help with workers’ compensation? Absolutely. A workers’ compensation coverage broker represents the employer and not the insurer; an insurance agent represents the insurer.

That said, brokers will look after the client’s financial interests regarding workers’ compensation insurance, both short-term and long-term. Over and above that, brokers will train your claims management team, select and manage medical providers, and design, implement, and manage safety and loss prevention programs.

Your favorite insurance broker, Zupnick & Associates, knows what’s best for you. Contact us today .

Retention Mistakes: Unattainable and Unusable Benefits

mwangielton@gmail.com (Elton Mwangi) — Mon, 26 Jun 2023 17:22:32 GMT

How to avoid employee retention mistakes is on the minds of many HR teams across the country, especially during ‘The Great Resignation.’ Employers are looking for ways to improve and it’s best to start with employee benefits.

Organizations that offer benefits that never come to fruition, whether by design or accident, will find their employees to be more disengaged, unproductive, and ready to look elsewhere for employment.

WHAT PROBLEMS ARE ORGANIZATIONS FACING WHEN OFFERING BENEFITS?

The problem for organizations comes when employees realize that the benefits that drew them into the organization are unattainable, invaluable, or simply a burden, which can seriously affect employee retention.

HERE ARE SOME EXAMPLES OF SUCH BENEFITS AT A GLANCE:

Health insurance with high-premiums and lousy coverage.
Discount programs that benefit the employer more.
‘Unlimited vacation days’ that come at the manager’s discretion.
Childcare vouchers for those without children.
Free gyms and free lunches for those who don’t use them.

It’s not that employees want to see critical benefits removed from their peers; they just want a fair deal and receive what they signed up for, without gimmicks they can’t or won’t use.

“WHEN EMPLOYEES FEEL CHEATED, THEY RETALIATE AND GIVE IT BACK TO THE COMPANY WHEN THEY GET THE RIGHT OPPORTUNITY” – SUNIL SINGH.

While comprehensive benefits look good on the surface, once employees begin to think about their overall package, they may realize it’s much more diluted than they initially thought. The last thing an organization wants is for its employees to feel duped!

AN EXAMPLE OF PROMISED BENEFITS THAT DON’T ALWAYS WORK OUT.

Using ever-increasing healthcare costs as an illustration, let’s explore how employer-sponsored healthcare may be inaccessible or a burden to some.

The average premium for a family health insurance plan in 2021 was $22,000, with many employers across the US fronting around 73% of the bill for a total contribution of about $15,000.

That said, many healthcare providers only require employers to contribute a minimum of 50%, and so some Americans will be left to come up with $11,000 out of their salary to ensure their families are covered.

That means many on the higher side of coverage are typically getting a great deal, but those whose employers aren’t contributing as much or offering enough coverage might be left in the dark.

SO, CAN BENEFITS BE A BURDEN?

Sometimes. Government healthcare subsidies typically only become available to individuals when their employer-sponsored healthcare plan is considered unaffordable.

Currently, the affordability rate is 9.61% of total household income, and that’s just for the employee, not their family. Furthermore, employers are only required to offer insurance that covers an average of 60% of medical costs, similar to bronze-level insurance.

This means the scope for individuals to find more suitable healthcare plans is diminished simply because their employer isn’t looking out for them.

AND DOES THAT AFFECT OVERALL RETENTION?

If you want to avoid these employee retention mistakes, it’s more important than ever to offer flexible health insurance that meets the needs of the individual, as premiums are getting more expensive than ever, and the minimum coverage is lousy.

Depending on the individual, it could make more financial sense to avoid the insurance plan offered by their employer, perhaps if they have better coverage from a spousal or family plan, which is unfortunate given tax advantages are non-transferable.

That’s bad news in an environment where many employees choose one job over another simply because of a better benefits package.

ARE ORGANIZATIONS COMMUNICATING THEIR BENEFITS CORRECTLY?

Communication issues relating to benefits can also affect retention rates. For example, when employers don’t know what they are getting, how their benefits work, or how they match up to their peers, they might feel they are getting a bad deal.

Consider implementing the following strategies if your organization is having communication issues when it comes to benefits:

Be clear about what you are willing to offer.
Don’t promise benefits that go unfulfilled or are gimmicky.
Keep up-to-date with benefit renewals and talk with your employees before renewing any contracts.
Don’t silence your employees from discussing their benefits package with their peers.
Gather and utilize feedback about benefits from employees.
Don’t be afraid to have conversations. It’s not awkward; it’s important.

Ready to Start an HR Department?

mwangielton@gmail.com (Elton Mwangi) — Mon, 19 Jun 2023 17:38:55 GMT

If you’re like 41% of small business owners who handle HR work by themselves, you probably feel like you’re ready to start an HR department. All those long days of you doing your company’s payroll and taxes will soon be a thing of the past for you.

We know adding a whole new department from scratch isn’t easy, so we compiled some key questions and answers that will make the process as seamless as possible.

HOW MANY EMPLOYEES DO YOU NEED BEFORE YOU NEED AN HR DEPARTMENT?

Despite being everywhere, the law doesn’t require that companies have an HR department. Still, as your business grows, your company will have to comply with an increasing number of laws, such as the:

Family Leave Medical Act (FMLA)
Obamacare (ACA)
Title VII of the Civil Rights Act
Equal Pay Act (EPA)
State and local employment laws

Although a ratio of 1.5 HR staff members for every 100 employees is considered enough for most businesses, starting earlier than that is highly recommended. While the FMLA compliance starts at 50 employees, other labor laws – such as the Americans with Disabilities Act (ADA) – kick in as early as 15 employees.

BENEFITS OF HAVING AN HR DEPARTMENT

As your business grows, hiring specialists who can take work off your hands is a logical business move. Among other tasks, creating an HR department will free you from having to take care of:

Payroll and benefit management
Meeting open enrollment deadlines
Hiring and onboarding new employees
Performance management
Employee training and development
Time and attendance tracking
Developing company culture and policy
Legal compliance – taxes, safety procedures, etc

Delegating these tasks to a qualified HR staff means you’ll have more time for planning your business operations. This in turn translates into:

Better qualified recruits
Fewer employee lawsuits
Higher employee retention rates
Increased employee satisfaction
Attractive employee benefits that meet market demand

In other words, the earlier you create an HR department, the easier that growing your business will be.

WHO SHOULD HIRE YOUR HR STAFF?

Hiring employees is a complex process that involves analyzing the market, managing budget management, and building an ideal candidate profile – among other tasks. It’s not as easy as publishing an online ad and hiring whoever made the first impression.

Your first step for starting an HR department, then, is hiring an expert HR manager who has the skills and experience needed to find and recruit top talent.

Your HR manager should have at least 3 years of experience (although 5 years or more is preferred), strong verbal and leadership skills, and an excellent grasp of federal, state, and local labor laws.

HOW MUCH DOES IT COST TO HAVE AN IN-HOUSE HR DEPARTMENT?

The costs of having an in-house HR department depend on many factors – office materials, internet and phone use, electricity, etc – but the biggest cost will always be your HR staff’s salaries.

According to the US Bureau of Labor Statistics, the average salary of an HR manager is $121,220 a year. And the yearly bill only gets higher the more you increase your HR staff.

Although secretaries, assistants, and other lower-level positions draw lower salaries, they still represent a substantial investment for many small businesses – especially because having in-house HR services isn’t always necessary nor cost-effective.

HOW MUCH DOES IT COST TO OUTSOURCE HR?

Unlike in-house HR, where HR staff are considered employees, outsourcing HR involves hiring contractors to provide a specific number of services, such as Zupnick & Associates own compliance and benefits management remote HR services.

Depending on the services you require and the number of employees in your company, outsourcing your HR tasks can cost anywhere between $45 and 1,500 a month.

This flexibility makes HR outsourcing a perfect fit for small business employers whose companies are growing but still don’t want the responsibility or costs that come with running a full-time HR department.

Outsourcing your HR will allow you to secure top talent, strengthen compliance, and improve employee relationships for a fraction of the costs of having an in-house HR department. So if you’re ready to take your company to the next level, contact us today.

What Is The Employee Benefits (Security) Administration?

mwangielton@gmail.com (Elton Mwangi) — Mon, 12 Jun 2023 17:48:26 GMT

When faced with the oft-asked question of “how does the government enforce workers’ rights when it comes to employee benefits?” a straight-forward response is the best; the Employee Benefits (Security) Administration, or EBSA.

Ensuring the well-being of the health and retirement benefits of American workers is the responsibility of the Employee Benefits Security Administration (EBSA).

WHAT IS THE EMPLOYEE BENEFITS ADMINISTRATION (EBA)?

The Employee Benefits Security Administration (EBSA) is a Department of Labor (DOL) agency that enforces the provisions of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) – Title II of ERISA is overseen by the IRS.

The EBSA’s role in the economy is massive as it tracks the running of more than 3 million plans (retirement, health, and others) which, when combined, amount to $10.7 trillion. The EBSA only oversees private employer-sponsored plans and isn’t in charge of supervising social security or public government-sponsored plans.

To protect the retirement assets of US workers, the EBSA invests in educating plan sponsors, members, participants, and service providers on their rights, responsibilities, and even cybersecurity best practices. In addition to education, the EBSA publishes guidelines and regulations that help plan sponsors to comply with ERISA regulations.

Although the EBSA doesn’t prosecute ERISA violators directly, it actively monitors every plan in America and assists the DOL in enforcing the law.

WHAT IS THE EMPLOYEE RETIREMENT INCOME SECURITY ACT?

The Employee Retirement Income Security Act (ERISA) applies to most private employers offering some type of group coverage. Among others, ERISA covers:

Medical insurance plans
Dental coverage
Voluntary benefits – such as disability plans
Profit-sharing plans
Group life insurance plans
401(k) retirement plans
Pensions
Individual Retirement Accounts (IRAs)

The EBSA monitors these plans and contacts any sponsor who is in violation of their rules.

WHAT ARE SOME COMMON ERISA VIOLATIONS ENFORCED BY THE EBSA?

ERISA violations occur when sponsors fail to either meet the obligations set in the plan or those imposed by federal law. Some common ERISA violations that are enforced by the EBSA include:

Breaking the terms of the plan
Not providing all the documents required by plan participants
Mishandling the plan or using it to benefit people other than its members and participants
Failing to provide and oversee the plan’s service providers
Misusing plan funds to benefit the plan sponsor, plan administrator, or other people related to them
Valuing a plan’s assets at any price other than their current market value
Punishing a plan member for using services covered under the plan
Not filing Form 5500

If you have any doubts about your employer-sponsored plan’s compliance status, the EBSA’s website provides useful information that will help you stay ERISA compliant.

HOW DOES THE EBSA PROSECUTE AN ERISA VIOLATION?

The EBSA employs a team of investigators and ben admin tools to probe for ERISA violations. When they find a plan that isn’t compliant, the EBSA will contact the plan sponsor and ask for them to make the necessary corrections.

If no solution is achieved, the agency will refer the case to the DOL for litigation. The DOL will keep any penalties earned and return all plan assets recovered to their legitimate owners.

Besides dealing with the DOL, the EBSA will also notify any other federal agency – like the IRS – that has a stake in the case.

Providing employee group coverage plans that both your employees and the EBSA will approve is a round-the-clock effort. So why not get expert help?

At Zupnick & Associates, we specialize in making our clients’ benefits programs ERISA-proof. Contact us today to learn how our services help you save money, time, and reputation.

What are 1094 and 1095 filings?

mwangielton@gmail.com (Elton Mwangi) — Sat, 10 Jun 2023 15:22:24 GMT

1095 and 1094 filings are tax forms used to report information about healthcare coverage under the Affordable Care Act (ACA).

Form 1095-B is used to report information about healthcare coverage provided by insurance companies, government-sponsored healthcare programs, and other providers of minimum essential coverage. It includes information about the individuals covered, the period of coverage, and the type of coverage provided.

Form 1095-C is used to report information about healthcare coverage offered to employees by applicable large employers (ALEs), those with 50 or more full-time equivalent employees. It includes information about the employee, the period of coverage, and the cost of the coverage offered.

Form 1094-B and 1094-C are transmittal forms that are used to summarize and transmit the information reported on the 1095-B and 1095-C forms, respectively.

These forms are used by the IRS to enforce compliance with the individual and employer mandates of the ACA and to verify that individuals have had minimum essential health coverage throughout the year.

Is Workers’ Compensation Considered an Employee Benefit?

mwangielton@gmail.com (Elton Mwangi) — Mon, 05 Jun 2023 18:00:53 GMT

No. Workers’ compensation is not considered an employee benefit. It’s required by law as a condition of employment, similar to unemployment insurance, social security, and disability insurance.

Workers’ compensation is an employer liability insurance type that offers monetary benefits to employees who become disabled or injured in employment. Without workers’ comp, your staff can sue you for illness, injury, or disability related to their work to cover medical costs and missed wages. It also covers funeral costs and ongoing care costs.

Some other types of liability insurance include business insurance and professional liability insurance.

HOW WORKERS’ COMP DIFFERS FROM EMPLOYEE BENEFITS

TAKING WORKERS’ COMPENSATION SERIOUSLY

Many employers don’t like to pay workers’ comp because it increases their insurance premiums. If the insurance company has to pay for surgeries, ongoing care costs, and lost wages, claims get expensive, which pushes premiums up. This also happens if many workers file workers’ comp claims in a short period.

Companies will fight legitimate claims to keep insurance premiums down. However, the Workers’ Compensation Act protects employees.

If an employer does not award an injured worker with workers’ compensation, they can be found guilty of a third-degree misdemeanor with a potential fine of $2500 and a one-year jail term.

In the case the court finds the company’s lack of compliance to be intentional, the employer can be found guilty of a third-degree felony with a potential fine of $15,000 and a seven-year jail term. The company will also have to deal with hefty claim damages.

WHAT IF…

Suppose an employer fails to cover its employees and an injured worker files a claim petition with the Bureau of Workers’ Compensation. In that case, the employer will not only pay medical costs and wage loss related to the claim. They’ll also incur the costs of hiring an attorney, penalties, and suffering damages from a suit.

Employees also have the protection of the Uninsured Employers Guaranty Fund. It offers benefits to injured employees whose employers lack workers’ comp insurance. The institution will then aggressively seek reimbursement from the employers, including attorney fees, penalties, interests, and litigation costs.

The cost and risk of not taking workers’ compensation are high.

Employers not only need to cover their employees, but they also need to give benefits to genuine cases. Otherwise, they’ll incur hefty penalties and a bad name, keeping top talent away.

HOW TO REDUCE WORKERS’ COMPENSATION CLAIMS

CREATE A SAFE WORKPLACE

Creating a safety culture at the workplace will reduce accidents resulting from slips and falls, lifting heavy items, and operating machinery. It’ll also boost enthusiasm, productivity, and retention.

Have workplace safety programs and train new employees on safety policies during onboarding. Also, carry out refresher training for experienced employees to keep the knowledge fresh in their minds.

Use posters, regular notifications, and meetings to communicate your safety culture. And remember to reward outstanding safety records.

IMPLEMENT AN INJURY PROCEDURE

This means having steps in place to manage injuries when they occur. The actions need to be immediate, and all parties need to know their job description so that the severity of the injury can be avoided.

When the process is smooth, employees are reassured that their colleagues know what to do if they’re injured. They’re also empowered to make decisions that reduce the severity of workplace accidents.

SET UP A RETURN-TO-WORK PROGRAM

According to research, companies that communicate with injured employees away from work have lower workers’ compensation costs.

The program encourages workers to return to work as soon as they feel they’re able to. They’ll start earning their paycheck, and employers will stop incurring the claim-related costs.

Workers’ compensation is not considered an employee benefit as it is government-mandated. Employee benefits are not required by law, but they differentiate average employers from exceptional ones.

Taking workers’ comp seriously by compensating the claims of genuine cases, creating a safe workplace, implementing an injury procedure, and setting up a return-to-work program will motivate employees, increase their productivity, and keep your costs low.

Get in touch with Zupnick & Associates to find the best workers’ compensation insurance for your budget.

How to Become an Insurance Broker

mwangielton@gmail.com (Elton Mwangi) — Mon, 29 May 2023 18:21:29 GMT

First, Know What You’re Up Against

If you googled “how hard is it to become an insurance broker”, instead of “how to become an insurance broker”, you may as well stop while you’re ahead. It ain’t for the faint of heart.

Becoming an insurance broker is not usually a childhood dream, and it certainly doesn’t hold the appeal of glory or fame, but what it lacks in allure it makes up for in gains… and not the kind you get in the gym. More like being part of $100 billion+ industry, and having significant growth potential.

Are you actively looking to become an insurance broker? Depending on how new you are to the world of selling insurance, the difficulty of your quest will vary. However, regardless of the category of insurance you sell, and regardless of your qualifications on paper, the one true – and quite unspoken – rule in the world of selling insurance is the same as selling anything, anywhere:

It’s about “relationships”. You gotta “know a guy”.

Think of the old adage about catching more flies with honey than vinegar, and think about the most successful salespeople you know (no matter the niche). Looking past their gold watches, and fancy cars, consider how they engage with all people (not just active sales). 9/10, we wager you’ll find them to be friendly and approachable.

Insurance is no different in tone – but quite more advanced in intensity. The position of broker, even more so. To be a successful broker, any dreams of being a reclusive and mysterious rich elite that rarely interacts with mankind, must be released, with joy.

Basic Qualifications

A great way to take on any industry is, of course, to be armed to the teeth with preparatory degrees, like a degree in financing, insurance, or tech.

However, it’s not mandatory.

To actually sell insurance, you only need to be certified through NIPR. The National Insurance Producer Registry is the one-stop-shop for all your insurance certification needs. If you’re already an insurance agent, you may be familiar with the process.

To go from an agent to a broker is the distance of a couple more certifications.

You will need certification in your state, and you will need for your niche. Beyond that, further needs will depend on either your state or your niche.

Get Even More Comfortable with Rejection

Being a producer is tough and being a broker is tougher, but in different ways.

As a producer, you usually have the “freedom” of being restricted by your broker’s goals. You’re given a single-minded goal, with a narrow demographic to work with, and you can focus on immersing yourself as deeply as you need to, to reach said goal.

As a broker, it’s you that now has to establish all the growth goals, supervise and manage producers that work with / for you, as well as maintain your own circle of networking.

So, pretty much everything you did or would do as a producer, times 10.

Basic Responsibilities of an Insurance Broker

Be fully up-to-date with all regulations and updates in the industry
Supervise and manage insurance agents
Establish new opportunities and skillfully delegate the sales
Maintain administrative needs for clients
Record-keep like your life depends on it
Stay compliant
Define Your SWOT

Understanding the technical steps of how to become an insurance broker is not what will help you succeed, though. You success will depend more heavily on your personality / ability to sell, and, crucially, your ability to run your business well. Remember, once you become a broker, you take on many more responsibilities than an agent.

Now you’re a business like any other, so start with your basic SWOT analysis – only, make it personal to you.

STRENGTHS

Begin with your strengths as a producer, then your strengths in insurance knowledge, especially your niche; continue to create lists of your strengths like that.

WEAKNESSES

We all like to believe we’ll be honest when listing our weaknesses, but the success of your career as a broker will depend on the extent of honesty you’re able to achieve with this list.

OPPORTUNITIES

You may have existing networking opportunities at your current stage, or upcoming ones you may not realize are opportunities. Write it all down.

THREATS

Staying on the precipice between paranoia and awareness, try to write list of threats to your success – that are not related to your character weaknesses listed before. Examples may include logistical trouble obtaining licenses, etc.

Be In Business

Once you’ve triple secured your licensing and necessary certification / training compliance, and you’ve established your SWOT analysis, you can proceed with building your business.

Go forth and conquer.

To Err Is Human: All About Errors & Omissions Insurance

mwangielton@gmail.com (Elton Mwangi) — Mon, 22 May 2023 18:37:27 GMT

You ought to take errors & omissions insurance from a commercial insurer for many reasons. We’ll give you two:

Celmatix filed a $100 million lawsuit against 23andMe, a genetic testing company, for breach of contract in 2019.

In the same year, car rental company Hertz sued IT consultancy Accenture for $32 million over a website they failed to deliver.

Without errors & omissions insurance, these companies would either file for bankruptcy or face severe financial challenges, crippling their growth.

That’s why errors & omissions coverage is central to the survival of your service business.

WHAT’S ERRORS & OMISSIONS INSURANCE?

Errors and omissions insurance is a kind of professional liability insurance that safeguards businesses, their employees, and other professionals against claims of negligent actions or inadequate work.

It falls under liability insurance (others are general liability and employer liability insurance covers).

The type of businesses that take errors & omissions insurance offer professional services to customers for a fee. But if you run your service business from home, this is not necessarily a crucial protection for you.

The types of businesses that require such insurance include:

Advertising firms
Consulting companies
Engineering firms and engineers
Marketing firms
Pet services (pet groomers and veterinarians)
Hair salons and barbershops
Educators
Publishing and printing companies
Real estate companies
Interior design firms
Hospitals

WHAT CLAIMS DO ERRORS AND OMISSIONS INSURANCE COVER?

Even the most distinguished pros make mistakes, namely doctors, accountants, dentists, surgeons, and real estate agents.

These mistakes can cost an arm and a leg if you don’t have errors & omission coverage and a client sues your business for millions of dollars for errors performed against them.

In addition to mistakes, errors & omissions insurance covers failure to meet a deadline in the performance of service to a client, professional negligence, breach of contract, and failure to adhere to particular standards of care.

Examples of claims your business could face include the following:

A client sues your marketing agency due to wrong advice they got from your marketing consultant, causing them to lose money.
A client could file a claim against you if your accountant offered the wrong financial advice.
A customer files a claim against your public relations firm after your communications strategy backfires and their reputation dwindles.
A customer sues you for breach of contract because your interior designer used the wrong colors when repainting their house.
A home buyer files a claim against your real estate company for negligence because your real estate agent forgot to include crucial details about the home.
A client business sues your accounting firm because your tax accountant made a calculation mistake that resulted in the client paying the penalty.
No one is perfect, so take errors & commission insurance for longevity in your business.

ERRORS & OMISSIONS INSURANCE COST

Some factors impact the amount of insurance premiums paid.

High-risk industries pay higher premiums. Case in point, a financial consulting company that advises clients where to invest millions of dollars will pay more premiums than an interior design company on average.

Higher coverage limits increase the cost of the premiums since you will get greater coverage compared with a similar business that picks a lower coverage limit.

Do you have a lengthy claims history? If so, expect steep premium costs.

Businesses in busy cities pay more than those in the outskirts.

Expect to incur about $500 to $1000 per year per employee and more if you have a history of myriad litigation issues.

WHAT COSTS ARE COVERED?

If your business is sued for a costly oversight by a client, and the court finds you guilty, errors & omissions insurance will cover particular kinds of settlement. For example, if the plaintiff incurred costs because of your wrongdoing, the insurance cover would cover the costs.

In the case of legal costs and attorney fees, it doesn’t matter whether you’re found guilty or not; the insurance policy will cover the costs.

GET ADEQUATELY INSURED

You now have a clear picture regarding what your business stands to lose without errors & omission coverage.

That said, at Zupnick & Associates, we safeguard you from financially draining and head-spinning lawsuits, through comprehensive errors & omission insurance.

Get in touch today .

HRA Compliance Checklist

mwangielton@gmail.com (Elton Mwangi) — Mon, 15 May 2023 10:37:57 GMT

There are many HRA Compliance Checklists to be found on the internet, but (likely) none as simple as are ours.

Staying up to date with constantly changing regulations within Health Reimbursement Arrangements (HRA) compliance can be very tricky, especially with global political tides directly affecting the proceedings. It is more important than ever for HR Personnel, CEOs, and benefits administrators to be prepared with as many resources as possible.

What Is An HRA?

A Health Reimbursement Arrangement (HRA), also known as a Health Reimbursement Account, is a tax-favored program that can be used in conjunction with a health plan. Individual coverage HRAs (ICHRA) and qualified small employer HRAs (QSEHRA) are the two basic kinds of HRAs.

HRAs can be used with any type of health plan. However, they are most commonly used in combination with a High Deductible Health Plan (HDHP). This combination allows an employer to fund individual Health Reimbursement Accounts for employees using premium savings realized by switching from a low-deductible health plan to a more cost-effective high-deductible plan. An HRA can be offered to employees by any type of firm, regardless of size.

There are some rules and regulations that guide HRAs. They help to ensure that all employees get equal and fair benefits from this health insurance, and below are the basics.

Benefits Of An HRA For Your Business

We know the benefits of HRA plans for employees but why is it important to you as an employer? Well, here are a few benefits.

When you go from a low-deductible health plan to a high-deductible health plan, you save money on your health insurance premium.
Your savings could be even greater if your employees have lower medical expenses than the amount you put into their HRA.
You may be able to save money at renewal because employees will be more motivated to make more educated decisions regarding their health care.
Tax deductions are available for reimbursements.
You do not need to fund your HRA account ahead of time. When medical expenses arise, reimbursements can be made from your company’s general account, giving you more control over your financial flow.

HRA Compliance Rules And Regulations

To prevent conflicts between employer and employee, these are the regulations in place:

To be eligible for an HRA, employees may need health insurance.
The HRA is owned by the company.
The HRA can only be funded by the company.
Employees who decline group health care coverage can participate in an excepted benefit HRA, but they cannot use the funds to purchase comprehensive health insurance.
HRA rollover is determined by the type of HRA and the company’s decision to enable it.
All workers in the same employee class must receive the same amount of funding. The amount of money put into the HRA is decided by the company.
However, employees with dependents can receive higher amounts. This means that HRA funds can be used to cover medical expenses for family members.
Interest is not paid on HRA money.
In IRS Publication 502, it is stated that HRAs can compensate for anything.
The maximum amount of reimbursement is determined by the type of HRA.
Unused HRA funds belong to the employer.
HRAs may not be funded indirectly through a cafeteria plan.

HRA Compliance Checklist

Now that you’re ready to draft a compliant HRA plan for your employees, note some of the most important areas that you and your employees must have an in-depth understanding of. Here are all the things that a compliant HRA must include:

Building An HRA Compliant Plan

The basic definition of the kind of plan you are making available to your employees. i.e Stand-alone HRAs, Integrated HRAs, or any of the likes
Explain the eligibility requirements. Remember, all employees are eligible except for some cases where some classes of employees are excluded
Discuss funding differences. i.e Employees with dependents are subject to a higher amount
Discuss individuals that are not allowed to participate in this benefit
Also, discuss what happens to used funds
Discuss the terms of reimbursement, clearly stating what is refundable and what is not.
Non-discrimination requirements
Carefully consider the impacts of federal laws on the agreement plan that you are choosing
Discuss implementation issues

Conclusion

This checklist will only help to serve as a guide on what your employee group health HRA plan must contain. You can contact your (new!) insurance broker to help you come up with a comprehensive HRA plan for your employees. State and federal regulations can sneak up on the best of us. Get in touch today.

5 Best HR TikTokers To Follow

mwangielton@gmail.com (Elton Mwangi) — Mon, 08 May 2023 10:57:05 GMT

We’ll start by apologizing right now for subjecting you to the world of TikTok, we know what you’re thinking, so please don’t make me do this. But we must admit, not all of TikTok is bad, there are a few relatable accounts worth taking a look.

We found some of the best HR TikTokers to follow right now. They’re not just random people, they have worked in the human resources industry for years as employees, managers, consultants, or employment lawyers.

You’ll find hilarious HR videos about what it’s like interviewing certain candidates and what it’s like to work in HR in general. There are some quick educational videos that explain employment law and what to do in certain situations.

So let’s start with…

HR MANIFESTO

TikTok Handle: @hrmanifesto

HR Manifesto is fairly new to TikTok, but she’s far from being new in the HR industry. The creator’s real name is Leigh and she started this TikTok account back in June this year, 2021, and it has taken off rapidly. She’s worked as an HR executive for 15 years for different Fortune 100 companies.

Followers send her other TikTok videos and ask if they are ‘HR Approved’, long story short, most of them are not. She also makes content about the sad and funny realities of working in HR with a real ‘no BS’ approach.

Outside of TikTok, she’s currently an HR consultant for her own company, HR Manifesto.

YOUR HUMAN RESOURCES BESTIE

TikTok Handle: @hanner_the_HR_lady

This account is also known as Hanner The HR Lady and it’s for those of us in the trenches of HR every day. If you’re a CEO, owner, or in upper management and want to know what your HR staff is going through, follow her.

She does go by Hanner and she’s worked as an HR employee for a few years now. She has a more satirical account that relates to what happens in the real life of HR, like when a manager wants to fire the same employee they just promoted.

PEOPLE CULTURE COLLECTIVE

TikTok Handle: @peopleculturecollective

The People Culture Collective is an Australian HR account that shows you the struggles of HR are everywhere regardless of the country. The creator is Veronica and she’s been in the HR industry for over 10 years as an HR leader and manager.

Her content shows what it’s like from all sides of HR: talking with managers, recruiting candidates, speaking with our peers, and overthinking everything we do. Her TikTok account has been around a little longer, so she has a lot of content to choose from and creates new content regularly.

YOUR HR FRIEND

TikTok Handle: @vicky.hr

The creator of Your HR Friend holds nothing back and says just about everything we wish we could. Her name is Vicky and she’s been an HR manager for over 7 years.

Vicky’s content is for our recruiters and HR staff looking for potential candidates, but she also has a lot of gut-busting content to go along with it. She shares relatable HR anecdotes and moments, the only thing that makes them funnier is how much truth comes from them.

Like how it feels when a new hire works out or when a manager likes your candidate, but still wants to see more candidates.

She also advises employees looking for work to help them with their resumes, interview tips, and how to answer certain questions.

THE LABOR LAWYER

TikTok Handle: @attorneyryan

Now, for the ones who are big on facts, we’d like you to meet attorney Ryan Styger. He’s the creator of the account The Labor Lawyer and he has specialized in employment law for the last few years.

His videos may not be as funny as the other creators listed, but his facts, knowledge, and experience more than make up for it. Ryan’s content gets right to the point and doesn’t miss a beat.

You’ll find videos on employment violations, stipulations, and laws. The content is directed toward employees, but they are good videos for managers, owners, and HR staff to watch. The situations he discusses in his content are HR mistakes we could run into and possibly avoid.

CONCLUSION

This is a shortlist of TikTok creators who make hilarious HR videos that provide a look into our HR lives. We hope these give you a break from the mundane and show you that you’re not alone in your HR struggles and that TikTok maybe isn’t all that bad.

Why You Should Prioritize Pre-Tax Voluntary Benefits Over Core Benefits

mwangielton@gmail.com (Elton Mwangi) — Mon, 01 May 2023 11:12:52 GMT

Once certain legally required benefits are offered, you can prioritize pre-tax voluntary benefits over core benefits.

LEGALLY REQUIRED BENEFITS

The U.S. Department of Labor Statistics categorized employee benefits into two categories:

Voluntary Benefits

Short-term disability
Pet insurance
Group life insurance
Tuition reimbursement
401(k) savings plan
FSA & HRA accounts

And many more

Legally Required Benefits

Social Security & Medicare
Unemployment insurance
Worker’s Compensation Insurance
Paid Family Medical Leave (FMLA)

Legally required benefits are meant to help employees if they experience a loss in wages due to a workplace injury, loss of work, a disability, or because an immediate family member fell ill.

Applicable Large Employers (ALEs): Employers with 50 or more full-time or full-time equivalent employees.

Check with your benefits administrator if you have questions regarding your particular state’s requirements.

WHAT PRE-TAX BENEFITS DO FOR YOU

Pre-tax benefits are deducted from the employee’s paycheck before state and income taxes are deducted, in turn reducing the taxable income amount.

What Are Pre-Tax Voluntary Benefits?

By lowering your employee’s taxable income, you also lower the amount you pay in employee-related taxes.

Employee Related Taxes

Federal Unemployment Taxes (FUTA)
Federal Insurance Contributions Act (FICA)
State Unemployment Insurance Tax (SUI)

It’s great to be able to save money, but will employees want the pre-tax fringe benefits you’re offering?

FRINGE BENEFITS EMPLOYEES WANT MOST

An employee benefits survey was done last year in 2020 by Fractl and they asked employees which benefits they wanted most. Here are some of the top fringe benefits employees are looking for in 2021.

BETTER MEDICAL & DENTAL BENEFITS

Better medical and dental benefits ranked the highest, 88% of employees would take this into consideration before selecting the job. 54% would even strongly consider before making their choice.

STUDENT LOAN DEBT & TUITION ASSISTANCE

With student loan debt constantly growing, employees placed these two benefits at numbers 6 & 7 on the survey. As the cost of college and related debt continues to rise,more employees will seek employers offering student loan debt and tuition assistance.

FREE MEALS, SNACKS, & BEVERAGES

Surprisingly, free food still made the list. This benefit may not be a defining factor when it comes to an employee selecting a job, but employees do consider it as a nice benefit to have.

PET INSURANCE

Especially since 45% of employees will spend about the same or more on their pet’s medical care than on their own.

PERKS & OTHER BENEFITS

We’ll close out this list with a couple of perks that employees want.

Flexible work hours
4-day workweek

Flexible work hours are only second to better employer health coverage with 40% of employees wanting flexible work hours and 37% of employees wanting the option to work remotely.

WHAT’S MOST ECONOMICAL FOR EMPLOYERS

Trying to figure out which benefits to offer employees can be difficult, you want to satisfy your employees without breaking the bank. Don’t worry it is possible.

Once you’ve covered the bases of the legally required benefits, you can begin prioritizing pre-tax benefits to help the employee and the company potentially save money.

The most economical benefits for employers are:

Student Loan Debt Assistance

Free Snacks & Beverages

Free meals, snacks, and beverages are 50% tax-deductible until 2026, even for remote workers during virtual meetings, virtual happy hours, and work-related recreational activities.

Flexible Work Hours & 4-Day Work Week

These perks aren’t pre-tax or tax-exempt, but they are worth it. If it’s feasible for your company and your industry, flexible hours and a 4-day workweek don’t cost a lot of money to initiate.

FSAs & HRAs

Federal Spending Accounts and Health Savings Accounts are pre-taxed and will lower the employee’s taxable income. You’ll pay less in employee-associated taxes yet again.

FSAs and HRAs are great to help counterbalance expensive co-pays, prescription costs, and high deductible health coverage plans.

CONCLUSION

What Happens if You Fail to Notify Your Employees?

mwangielton@gmail.com (Elton Mwangi) — Mon, 24 Apr 2023 11:24:00 GMT

With open enrollment right around the corner, this is the time for business owners to inform their employees about signing up for the new coverage plan. The federal open enrollment period is from November 1st to December 15th, requiring all employees to submit their documentation.

As an employer, you also are responsible for notifying your employees about the upcoming enrollment and their coverage options. You will need to distribute notices before or during the enrollment process.

However, you may be wondering, “what happens if you fail to notify your employees?” In this article, we will be going over any legal ramifications you may receive if you wait too late to inform your employees.

WHAT NOTIFICATIONS SHOULD BUSINESSES GIVE TO EMPLOYEES?

As part of the law in the United States, HR employees are required to give annual notices related to open enrollment and health insurance plans. There are three main notices that you must give, and some that are recommended to keep your employees up-to-date. These three notices are:

Medicare Part D Notice of Creditable Coverage

Notice of Women’s Health and Cancer Rights Act (WHCRA)
Notice of Children’s Health Insurance Program (CHIP)

The benefits administrators should send these notices to your employee’s emails and be put in a public place that all employees can view easily. Now, let’s explain the importance of these notifications for your employees and when they are due.

MEDICARE PART D NOTICE

Before October 15th, the notice of Medicare Part D is to give employees information on the plan’s prescription drug coverage. When notifying employees, they will receive information on the status of their prescriptions for the upcoming year.

The notice will also determine the person’s eligibility status, including active employees, disabled employees, and retirees. Due to most employers not knowing the eligibility of employees, this should be sent to all employees in the group plan—regardless of their status.

WOMEN’S HEALTH AND CANCER RIGHTS ACT NOTICE

This annual WHCRA notice has no required date to be followed, but it’s recommended that you notify employees during enrollment. The purpose of this notice is to inform employees of the coverage for procedures unique to women.

These procedures include reconstructive surgery and similar medical operations following a mastectomy. These notices should be delivered by letter or electronically following ERISA disclosure rules.

CHILDREN’S HEALTH INSURANCE PROGRAM NOTICE

The last required notification employers need to give is coverage for children’s health insurance programs. These programs are typically CHIP or Medicaid, helping families cover their children with health insurance.

There is no required deadline for notifying employees of this program. However, this program is commonly shared with other annual notices for employees. With all of these programs covered, there are a few other notices recommended.

WHAT OPTIONAL NOTICES SHOULD YOU GIVE TO EMPLOYEES

While there are only three primary notices you need to give employees, two others keep employees better informed. The first notice recommended is the HIPAA special enrollment notice.

The HIPAA notice informs employees that they can join an employer’s group healthcare plan outside of enrollment under specific circumstances. Some of the most common reasons you would need to update healthcare coverage is losing coverage from another plan or acquiring new dependents.

Another notice that would benefit your employees is the Patient Protection Notice. This healthcare notice will inform employees about their rights and they will need to designate a primary care provider.

WHAT HAPPENS IF YOU FAIL TO NOTIFY EMPLOYEES?

Notifying your employees of their health insurance enrollment and benefits is necessary for employers. When you forget to notify your employees before the deadline of required notices, you will be subject to fines.

According to the Department of Labor, you can expect to receive fines for each employee not notified every day after the deadline. When you fail to notify your employees about their Children’s Health Insurance Program, you will be fined $119 per day.

These fines are given per employee, resulting in hefty fine payments within the first few days of not delivering notices. If you do not notify employees of the Women’s Health and Cancer Rights Act, you will be fined $100 per day.

CONCLUSION

Keeping your employees informed on their health insurance plans is an essential part of being an employer. There are three main notices that you must give employees, with a few optional ones that are good to share. If you don’t give the required notices, you may be subject to fines until you do.

Important ACA Changes to Keep in Mind for Employers

Mon, 17 Apr 2023 12:14:01 GMT

After an unusually long development period, the Department of Health and the Department of the Treasury published the final version of their 2022 Notice of Benefit and Payment Parameters (NBPP) this past September.

The document, which updates the rules regulating the Affordable Care Act (ACA) and the marketplaces, brings some much-needed changes that will apply to everybody enrolling on a health plan in the upcoming open enrollment 2021. So let’s see what ACA will look like in 2022.

HIGHER HEALTH INSURER FEES / HIGHER PREMIUMS

Obamacare imposes an annual insurance provider fee (Provision 9010) on health insurance companies. This health insurer fee, which helps fund the state and federal marketplaces, is a fixed amount that insurers must pay based on their relative share of the marketplace.

The NBPP for 2022 will increase the costs of using the federal and state marketplaces for insurance companies from 2.25% and 1.75%, in 2021, to 2.75% and 2.25%, in 2022, respectively. Although this rule only applies to carriers, plan sponsors can expect to see these costs passed along to them in the form of higher premiums.

LOWER AFFORDABILITY THRESHOLD FOR EMPLOYERS

In an internal bulletin, the IRS reduced the affordability threshold for Applicable Large Employers (ALEs) from 9.83%, in 2021, to 9.61%, in 2022.

The affordability threshold, also known as the pay-or-play rules, requires that ALEs employing at least 50 full-time-equivalent employees provide at least one affordable health plan and offer minimum value to their members. ALEs who don’t fulfill this obligation can face steep penalties under ACA’s shared responsibility provisions.

Since the threshold went down, employers could end up providing an unaffordable plan in 2022. This is considered an Employer Shared Responsibility Payment (ESRP) violation and could lead to the company receiving an IRS letter informing them of the opening of a play or pay penalty assessment against them.

To protect themselves from penalties, ALEs must recalculate their cost-sharing amounts before they renew their coverage for 2022.

OUT-OF-POCKET COSTS CAPPED AT $8,700

Out-of-pocket costs have grown steadily over the years. In 2021 alone, out-of-pocket costs increased by a whopping 10%, and the trend is expected to continue until 2026.

While the 2022 NBPP hasn’t stopped the growth of out-of-pocket expenses, it slowed them down by setting the limit at $8,700 for a single person and $17,400 for a family.

Statistics show that, on average, employers cover 83% of the costs of health insurance for single coverage. So, even this small adjustment is expected to increase the burden of providing health insurance for plan sponsors in 2022.

WHAT PLANS ARE AFFECTED BY THESE CHANGES?

All qualified health plans sold through the Health Insurance Marketplace, or its state equivalents, must comply with these rules. Moreover, companies sponsoring group health plans or other health insurance arrangements that meet ACA’s definition of “minimum essential coverage” must also comply with these changes.

The 2022 ACA changes will affect both marketplace and non-marketplace plans such as:

Group health insurance plans
Health Reimbursement Arrangements (HRAs)
Health Savings Accounts (HSAs)
Health Flexible Spending Arrangements (FSAs)

Americans may sign up for any of these plans starting Monday, November 1, 2021.

WHAT DO THESE CHANGES MEAN FOR PEOPLE COVERED BY ACA?

The ACA 2022 rule changes will empower consumers to make better choices while also cutting back on costs as much as possible.

Although the higher insurer fees will bring a small rise in premiums, these funds will go towards training more ACA Navigators who have the knowledge that consumers need to pick the right plan for themselves and their families.

Meanwhile, the $8,700 cap put on out-of-pocket costs ($400 lower than expected) will bring a small increase in healthcare access for many covered people.

We still have to wait for 2022 to see how these changes look firsthand. For most Americans, these changes will take effect starting January 1 – provided they enrolled by December 15, 2021 – or on February 1 – if they enrolled after December 15.

So, if you are unsure about how the new ACA changes will affect your health insurance plan, talk with a trusted broker today .

How to Mitigate Risk in a New Business

Mon, 10 Apr 2023 12:25:54 GMT

Business owners face a number of challenges, but how to mitigate risks in a new business can be one of the most difficult to navigate. The actual number one risk is always financial, but what about the other risks that sneak up on you when you’re not looking.

20% OF NEW BUSINESSES FAIL WITHIN THE FIRST YEAR, AND 50% OF NEW BUSINESSES FAIL WITHIN FIVE YEARS

–BUREAU OF LABOR STATISTICS

These can be internal or external business risks, such as:

External Risks

Market conditions
Bad location
Sustaining a good reputation

Internal Risks

Labor shortage in your industry
Employee injuries
Insufficient technology

Let’s dig in, to find out how these risks can affect your new business and how to develop a risk mitigation plan to soften the impact if they occur.

EXTERNAL BUSINESS RISKS

External business risks can be factors within or outside of your control. Learning about the possible challenges you’re facing may help you get ahead of the issue.

THE MARKET DICTATES EVERYTHING

There are ups and downs in every industry’s economy; that’s a given fact.

It’s essential to know your industry trends and how they relate to the overall economy. This information may impact the sale of your product or service, so don’t underestimate the market you’re preparing to enter.

Do a market analysis to test the temperature for what you plan to offer. Find out the:

Product/service demand
Customer behavior
Target audience, etc.

You’ll then be able to decipher how to approach your prospective clientele, their buying behaviors, and how to bring value to them.

LOCATION, LOCATION, LOCATION!

In real estate, having a good location is a cornerstone to the sale of a property, which stands true in business. Businesses may be in environments with volatile weather, e.g., hurricanes, earthquakes, and tornadoes. There is property insurance to cover these situations, and it’s wise to have it because you don’t know what will happen in such an environment.

Your new office could be right in the middle of a violent neighborhood or war-torn country. It’s hard to stop the violence in certain areas, and you typically have to enlist the help of the local politician and police. There’s no guarantee that you can root out the violence even with that.

Research the neighborhood, city, state, or country where you plan to set up shop to discover if that’s where your business should be.

YOU HAVE A REPUTATION TO PROTECT

Like in a bad high school movie, it’s all about reputation. When you’re in business, word-of-mouth travels fast, and when something negative is released regarding your company, it travels even faster. A bad reputation can cause a loss of profits, clientele, and the possible demise of your business.

Manage your reputation by:

Under-Promising And Over-Delivering

It’s okay if your customer has low expectations, and then you blow them away with excellent results. That’s one way you can improve your reputation and increase customer satisfaction.

2. Monitoring Business Reviews And Comments

Keep an eye on what’s being said about your company. Take the feedback seriously and be readily available to reach out to customers to resolve their issues and concerns.

INTERNAL BUSINESS RISKS

Internal business risks are usually the risks that sneak up on you the hardest, because they’re so often packed with betrayal. We’re always looking for outside factors to get in our way, but it’s rare to think about the risks within your establishment.

GOOD HELP IS HARD TO FIND

By now, you’ve heard of “The Great Resignation” and how it’s plaguing employers all over the US, but that’s not the only problem working against new businesses. A lack of quality candidates is another issue, especially if your company requires skilled workers to maintain business operations.

But…

What if you hire the wrong employee?

A bad hire could cause more damage than not having anyone at all. Their mistakes are costly, and once you fire them, you’ll have to go through the hiring process again.

To attract better talent, take a look at your:

Company’s benefits
Company culture
Compensation
Job description
Policies and procedures

EMPLOYEES ARE AT RISK TOO

We never plan for it, but there’s a chance one of your employees could get hurt on the job. If it does happen, you have to cover their medical expenses, a portion of their lost wages, and rehabilitation costs.

First, ensure you have workers’ compensation to back you up and cover the costs of an injured employee. Second, be sure that you’re compliant with all state and national safety regulations, like the Department of Labor and OSHA.

DOES A SMALL EMPLOYER NEED WORKERS’ COMPENSATION?

YOU NEED TECHNOLOGY TO SURVIVE THIS GAME

Having the right technology can make or break business operations and sales.

You want something user-friendly for your employees and customers. If anything is running like a hamster and wheel is inside, you might want to upgrade for a smoother operation.

Look into the software or hardware you may need to achieve that. Once you find and install what your business needs, ramp up your cyber security. Companies are being hacked every day, and you have to protect your company’s and customers’ private information at all times.

RISK MANAGEMENT

Developing a risk mitigation plan is critical for risk management and your overall business planning. It identifies and accesses the possible damage each risk could have on your business. Once the risks are evaluated, decide which ones are acceptable risks and prioritize the rest with the least acceptable risk at the top.

From there, you can get a good look at what you’re facing from all sides and decide the best course of action.

NY General Liability Insurance for Business

mwangielton@gmail.com (Elton Mwangi) — Mon, 03 Apr 2023 12:35:15 GMT

General liability insurance safeguards your company from monetary loss if your employees, services, or business operations cause personal and advertising injury or property damage. It covers non-professional negligent acts.

Your business could be liable for paying costs such as legal costs, medical expenses, and punitive damages in the occurrence of a risk. Some examples of risk occurrence include:

A customer trips on a slippery floor and gets injured during a visit to your store
A staff member in your construction business leaves the water running, causing significant damage to a customer’s home.
Your business is sued for offering misleading information in one of your advertisements.

Some businesses that benefit from general liability insurance include contractors, small businesses, janitorial services, landscaping businesses, marketing firms, IT contractors, consultants, and real estate agents.

TYPES OF NY GENERAL LIABILITY INSURANCE COVERAGE

OCCURRENCE

This policy type protects a company from a risk that occurs during the policy period, not considering when the claim arises. So, even if the policy is canceled, your business will be covered, provided the incident occurred within the policy period.

CLAIMS-MADE

A claims-made policy protects a business from claims that occur and are reported within the policy period. Hence, if premiums aren’t paid or the policy is canceled, claims made after aren’t covered, even though risk occurred during the policy period.

WHAT’S COVERED UNDER NY GENERAL LIABILITY INSURANCE COVERAGE?

Lawsuits can cause considerable financial losses if you are not covered, making general liability insurance a business essential. The insurance will cover the legal fees and all damages if you’re found liable; that’s up to the policy limit.

BODILY INJURY AND PROPERTY DAMAGE

This coverage protects businesses against losses related to liability arising out of bodily injury or property damage to third parties as a result of non-professional negligent acts. It also covers liability resulting from their business operations or premises.

In addition to physical bodily harm, emotional distress and mental injuries are also considered bodily injuries.

Because this insurance cover is limited, high-risk businesses in New York City need additional coverage like pollution liability, workers’ comp, employment practices liability insurance, and others.

PERSONAL AND ADVERTISING INJURY

This kind of coverage safeguards your business from liability resulting from offenses like wrongful eviction, copying an advertisement, malicious prosecution, libel, copyright infringement, slander, and false arrest.

For instance, when you set up a website, you’d want protection against unexpected copyright infringement.

MEDICAL PAYMENTS

When a non-employee gets injured as a result of an accident on your business premises or exposure to your business operations in New York State, this coverage caters to medical expenses on a limited basis. Legal action is not required for the cover to be activated; hence litigation can be avoided.

These costs include nursing, hospital, surgical, ambulance, and funeral expenses to the injured or killed individual. If the business is sued, medical payment coverage does not cover legal expenses and damages resulting from the suit like in the previous two covers.

THE COST OF NY GENERAL LIABILITY INSURANCE

Many factors affect the cost of general liability insurance. When it comes to the business type, a high-risk business will pay higher premiums than a low-risk business.

Other factors affecting general liability insurance costs include years of experience, location, insurance claims history, size, condition of the premises, and policy details like coverage limits and deductibles.

Insurance will also vary between insurance providers.

REASONS FOR PURCHASING NY GENERAL LIABILITY INSURANCE

One of the main reasons for buying general liability insurance is that employers and clients require it before doing business with you. Therefore, you’ll need to provide them with a certificate of insurance.

You’ll also need general liability insurance when advertising your business and working on someone else’s property. Most companies use it as a safeguard against lawsuits, medical damages, attorney fees, and investigations.

WHAT GENERAL LIABILITY INSURANCE FAILS TO COVER

General liability insurance doesn’t cover employee injuries, which are covered under worker’s compensation.

Also, it doesn’t cover auto accidents, professional mistakes, and theft.

BUYING NY GENERAL LIABILITY INSURANCE

While you can buy general liability insurance by itself, combining it with business property insurance into a business owners’ policy is convenient. You can also buy it as part of a Commercial Package Policy.

If these covers don’t offer enough protection, consider buying a commercial excess policy for extra protection.

Zupnick & Associates can help you shop for the best general liability insurance in 2022. Contact us today!

How to Help Employees Cut Health Insurance Costs

Mon, 27 Mar 2023 12:44:04 GMT

As a business, helping your employees in their personal lives is an essential step for building a strong work culture. Healthcare coverage can be a personal struggle for many Americans, so helping is a big step as a company.

There are dozens of ways to cut health insurance costs for employees, from investing in preventative care to changing the funding structure. This article will cover fringe benefits that you can offer for employees to reduce health insurance costs.

EMPHASIZE WORKPLACE STRESS REDUCTION

Workplace stress is a common problem in workplaces in all industries. Stress can also contribute to serious health problems in the future. Developing a plan to combat stress in the workplace will result in happier, healthier, and more productive employees.

Fortunately, there are numerous things that you can do in the workplace to offer a less stressful atmosphere.

Offer paid time off if that is not a current option at your company. Time off from work is necessary for many people, as a change of pace can reduce their stress. According to several studies, there are even strong links between the frequency of taking time off and the rate of heart disease.

Office are meditation classes or encouraging more breaks throughout the day. The improvement in every employee’s mental health will also improve your retention rate.

Encourage suggestion boxes or weekly meetings to make sure everyone feels heard. Built up resentment is a strong source of stress we carry around.

INVEST IN PREVENTATIVE CARE

Avoiding chronic disease and illness is the single best way to reduce employee health costs as a business. While this doesn’t directly cut healthcare costs, when employees are healthier, they are less likely to seek extensive medical treatment.

One of the best ways to invest in an employee’s well-being is by encouraging them to get an annual checkup. Many health insurance providers offer this free for employees, but many don’t take advantage of it. Along with a standard checkup, employees should also do more specialized screenings depending on their risk. Women should get a mammogram done as part of their preventative care routine.

Creating counseling programs for employees can help them live healthier lifestyles. Whether it’s to quit smoking or eat healthier, health counseling gives employees the necessary knowledge they need for a healthier lifestyle.

TELEHEALTH AND COST REDUCTION

Since the COVID-19 pandemic, telehealth has become the main form of medicine that people use for non-emergencies. Telemedicine offers a real advantage to patients with lower costs and added convenience.

According to GoodRx, the average telehealth visit costs $40 to $50, with in-person visits costing $176. The convenience of telehealth visits is also a big benefit of choosing telemedicine over in-person care. You will not need to stay in a waiting room, and many healthcare providers will have more available appointments throughout the week. Many doctor’s offices have long waits before your appointment, which can take up to three weeks after scheduling.

However, some things cannot be done via telehealth, such as important screenings and urgent medical treatment. But, by incorporating telemedicine into their healthcare, employees can save more money each year.

CREATE INCENTIVE PROGRAMS FOR HEALTHY HABITS

People react best to incentives, with health-based programs being no exception. If you want to build a healthy culture in the office, a program that rewards employees for their healthy habits is an excellent way to do it.

A behavior-based wellness incentive program typically offers employees discounts on their insurance premiums, contributions to an HSA, or paid time off. The incentive should be great enough that it will make a significant impact on the employee’s life. Some of the most common activities that employees are incentivized to do are creating fitness goals, attending fitness events, and sticking to a diet. If an employee can do that for a set amount of days, they receive rewards.

CONCLUSION

With open enrollment 2022 coming to an end, you should help employees reduce healthcare costs. The first place you should start is improving the overall health of the workplace. By offering health counseling and focusing on preventative care, employees will be happier and healthier in the workplace.

Additionally, you can encourage preventative employee benefits like telemedicine to cut costs and recommend annual checkups.

5 Ways To Educate Your Staff About Coronavirus Vaccination

Mon, 20 Mar 2023 12:51:46 GMT

In the US, the Coronavirus immunization drive began on December 14, 2020. Sandra Lindsay, a nurse from the ICU of Long Island Jewish Medical Center, became the first person to receive the COVID vaccine shot.

Since then, about 140 million people have been fully vaccinated, which is 42.8% of the total US population. On average, about 1.12 million doses are being administered daily.

Currently, three vaccines are authorized for use by the CDC: Pfizer-BioNTech, Moderna, and Johnson & Johnson / Janssen.

To keep your company safe, you must promote the COVID immunization to your employees. After all, it’s the only way you can get rid of the COVID restrictions in the workplace.

The US government has taken a lot of steps to address questions about the safety of COVID vaccines. Still, hesitancy among the population remains a problem.

An online survey showed that about 22% of working-age adults were hesitant to get the COVID vaccine.

Educating your employees about the Coronavirus is the only way to get them to be more comfortable about the idea of getting vaccinated. To do so effectively, CDC recommends you to do the following things:

Design a Robust Communication Strategy

The COVID communication strategy of your organization should reflect the values and tone of your brand so your employees can better resonate with it. Remind your employees that the fight against COVID is a mutual one, and everyone is in this together.

Encourage frequent open discussions about the vaccines and let your employees express their doubts without any judgment. You can also create an online forum for them to ask questions about the vaccine.

Some key information about the immunization program is available on the CDC website. You can use this resource to provide your staff with daily or weekly updates about the vaccine.

Organize a COVID-19 Presentation

Presentations are a great way to convey important information through powerful words and images. They are also pretty effective in the corporate world.

In a COVID-19 presentation, you can include your workplace vaccination program details, address any misconceptions about the vaccine, and discuss the procedure to get vaccinated. You can also have a Q&A session by inviting an official from your local health department.

These presentations can be virtual or in-person, with strict COVID precautions.

CDC has a pre-made COVID presentation available on their website. You can download it from here and tailor it according to your brand image and tone.

Involve the Leaders of your Organization

It’s time for your organization’s leaders to step up and play their role in promoting the vaccination program of your company, as a Gallup survey found out that CEOs and senior managers have a great influence on employee engagement.

Invite your company’s senior executives to share their experience of getting vaccinated and about the side effects of the vaccines, if they experienced any.

Your company leaders can help your employees understand that their wellness is the company’s priority, and the vaccine is essential for keeping them safe. For credible information about the vaccine, you can use this resource.

Send out a Letter to your Employees

Sending out a personalized letter to each of your employees can be a unique part of your COVID communication strategy. It can have a positive effect on the perception of your company in the eyes of your employees.

The letter can contain important information about your organization’s steps to educate the staff about COVID vaccines and answer some of the frequently asked questions by your employees.

You can also let your employees know the procedure to get vaccinated at the workplace if that facility is available. CDC has published a template of this letter on their website and has recommended reviewing it thoroughly to make it appropriate for your company.

Utilize all Awareness Channels Effectively

You should use all available digital and print communication resources to educate your staff about the COVID vaccine.

Digital ads, social media posts, blogs, and infographics are all great ways to present content that is visually appealing and easy to understand. Encourage your staff to post their selfies after getting vaccinated and share those selfies on your official social media pages.

You can also print flyers, stickers, and posters from the CDC website and hang them in your workplace.

Conclusion

Educating your employees about their Coronavirus vaccination options is key to helping the U.S. and the rest of the world recover from the COVID-19 pandemic. Responsible employers encourage their employees to get vaccinated as soon as possible to prevent the risk of further infections.

Open Enrollment for New Employees

Mon, 13 Mar 2023 13:29:38 GMT

With the open enrollment period already here, it’s time for employers to educate new hires on how to make the wisest insurance choices for 2023.

The new year will bring some important ACA changes. That’s why your new hires should get all the information they need to pick the best plan for them without stretching your HR department’s already short human resources.

Keep reading below to learn how you can get your employees ready for open enrollment.

OPTIMIZE YOUR PRE-BOARDING PROCESS

The key to easing new employees on board, lies in giving them the materials and information they need ahead of time.

Whether it’s by sharing an information sheet, or onboarding them through a learning management system (LMS), there are many ways that companies can speed up employee benefits education while keeping costs to a minimum.

By having an effective pre-boarding process, employers can answer basic employee questions like:

Why do I need coverage?
What are my options?
How many of my family members can benefit from my plan?
How can I save the most money this year?
How much is this going to take out of my paycheck?

Answering these questions beforehand empowers new hires to learn outside office hours and allows them to make highly-specific questions during enrollment meetings that will help them choose the perfect plan for themselves and their families.

MAKE THE MOST OUT OF REMOTE ONBOARDING

Video Conferencing tools like Zoom and Microsoft Teams can ease the scheduling problems that arise during open enrollment.

Indeed, instead of getting bogged down by traffic or traveling restrictions, online onboarding allows your benefits advisors to explain all the coverage options that your new employees have available to them anytime, anywhere.

Moreover, new employees – who could otherwise feel anxious among a crowd – can feel comfortable asking questions to benefit advisors from the relative anonymity of a chat.

Remote onboarding has its drawbacks as well – such as requiring more documentation – but with more employees working from home than ever, remote onboarding offers a great way of educating new hires with minimal effort and redundancy.

OPEN MULTIPLE CHANNELS FOR FEEDBACK

Benefits education isn’t an overnight process. Your employees are unlikely to understand what are the new ACA changes for 2023 or what coverage suits them best on the first try.

Worse yet, some workers may overestimate their knowledge and not ask the questions they need on time. So unless you want your new hires to finish the enrollment process with more questions than answers you need to create a full feedback loop.

Regularly checking with your new staff and asking them for feedback will help you benefits advisor clear any doubt they have before moving forward.

There are many tools you can use to gather your employees’ opinions – such as surveys, quizzes, apps, etc. Using these tools to open multiple communication channels will ensure your employees can share ideas that you can use to improve your onboarding process on the fly.

USE DIFFERENT FORMATS TO PRESENT BENEFITS INFORMATION

Outside of the HR department, benefits still remain an unfamiliar subject for most workers. However, one way you can speed up your new employees insurance education is by using different media to present the information they need.

While some people might learn fast reading, others might get stuck in the first paragraph. Not everybody is the same but you can ensure that all of your new employees learn at the same pace by giving them multiple sources of information – printed manuals, interactive apps, etc.

Creating these materials requires much time and effort – two things that are scarce during the open enrollment period. One way to solve this issue efficiently is creating highly-customized videos that your employees can easily digest, and this is a service that many insurance brokers offer.

Whether it’s designing your employee benefits package or taking charge of your new employees onboarding education, having hands-on benefits advisors is the key to a smooth onboarding process. So if you are still struggling on your own, contact us today.

What Joe Biden’s 6-Point COVID-19 Plan Means for Businesses

Mon, 06 Mar 2023 13:40:36 GMT

To get the U.S economy back on track and combat the coronavirus, President Biden has introduced what he calls the ‘6-Point COVID-19 Plan’. This national strategy will help aid in economic recovery and increase the number of vaccinated Americans. The six points are:

Vaccinating the unvaccinated
Further protecting the vaccinated
Keeping schools safely open
Increasing testing & masking requirements
Protecting economic recovery
Improving care for those with COVID

As one of his main focuses, President Biden turned his focus on businesses as the driving force of this plan. There is the hope of a fast recovery by including economic assistance to small businesses and implementing new COVID-19 measures.

This article will break down the 6-point plan for businesses and what business owners predict will happen once implemented.

MANDATORY VACCINATIONS FOR EMPLOYEES

To increase the number of vaccinated workers, the Biden Administration has stated that businesses with more than 100 employees must have fully vaccinated workers. U.S workers who do not get vaccinated before December 8th will be placed on unpaid leave.

If businesses do not enforce this policy, they will be required to pay hefty fines and face legal ramifications. This mandate will put pressure on unvaccinated workers and allow them to get vaccinated.

The vaccination plan gives employees plenty of opportunities, with businesses even offering paid time off to encourage employees to get vaccinated. President Biden has made it his goal to make COVID-19 vaccines as accessible as possible.

This ruling has come into effect because the United States has not hit its goal of 80% of people being fully vaccinated. These regulations have been shown to work, according to The White House website.

After United Airlines introduced a COVID-19 vaccination mandate, more than half of the unvaccinated workers went out and got vaccinated. These mandates work, and the Biden Administration will be using its regulatory power to make vaccines mandatory for employees.

Vaccines in the United States are also free, not adding more costs to your health insurance plans. By simply signing up at the various vaccination sites throughout the country, you can quickly get vaccinated.

FINANCIAL HELP FOR SMALL BUSINESSES

There is no denying the negative impacts that COVID-19 had on countless businesses in the United States. An estimated 800,000 businesses shut down in 2020 after the peak of the pandemic was causing lockdowns.

While many businesses have closed up shop, others are still hanging on and waiting for better days. The Biden Administration has made it a goal to help small businesses with government assistance.

As part of the 6 point plan, financial help will be added in the form of low-interest business loans and streamlining the Paycheck Protection Program. The added support will help business owners recover from the pandemic and get back to stable finances.

The Paycheck Protection Program will also help increase confidence in employees that they can continue to work without fear of layoffs. This financial help will also increase the number of job openings and the employment rate.

WHAT DO BUSINESS OWNERS THINK OF THE SIX-POINT PLAN?

There have been mixed predictions of what businesses think will happen with this six-point plan. Some business owners believe mandatory vaccines are a good thing in keeping employees and customers safe. Other businesses think it will lead to negative impacts on the labor market.

However, most large businesses support the vaccination mandate and are prepared to enforce it. Large food provider Tyson Foods has set a vaccine mandate deadline of November 1st. Chief Medical Officer Dr. Claudia Coplien stated that:

“Getting vaccinated against COVID-19 is the single most effective thing we can do to protect our team members.”

Many experts believe these vaccine mandates will be here to stay for the foreseeable future. University of Virginia law professor Margaret Foster noted the importance of these vaccines, saying:

“One of the most influential factors in fighting vaccine hesitancy has been employer action.”

Once employment is tied to vaccination status, it will be increasingly difficult for those who decide not to get it. As a result, you will likely notice a fast increase in fully vaccinated Americans with this plan.

CONCLUSION

The Biden Administration’s 6-point plan will require businesses of more than 100 employees to have fully vaccinated workers. This requirement has been a topic of controversy among businesses but is seen as necessary by President Biden. With this policy, the workers and businesses will be protected, setting the U.S economy up for a strong recovery.

The Employee Rescue Plan Act & What It Means for Retention

Mon, 27 Feb 2023 13:52:46 GMT

The employee rescue plan act was extended by the American Rescue Plan. It helped employers and out-of-work employees. Partially or fully shutting down during COVID-19 menat being able to pay employees still.

Depending on how many employees you had, you could still pay them whether they provided services or not. That was the point Employee Retention Tax Credit, it was meant to reduce unemployment rates.

Programs were also established for unemployed workers:

Pandemic Unemployment Assistance (PUA)
Pandemic Emergency Unemployment Compensation (PEUC)
Federal Pandemic Unemployment Compensation (FPUC)
They could draw from their regular unemployment insurance as well.

The employee rescue plan brought a few concerns from both sides, though. What if employers decided to layoff or fire employees once the employer tax credit ended? Are unemployment benefits stopping unemployed workers from returning to work?

Either way, it boils down to: Was the Employee Rescue Plan really effective?

CHANGES

Well, it certainly highlighted some issues.

Did employers take advantage of this tax credit just to fire or lay off employees when the time period ended?
Were employers really able to retain employees?

While according to the Job Openings & Labor Turnover Summary, “the number of layoffs and discharges was little changed”, layoffs and discharges are apparently at a series low, coming in at 1.3 million. This is in comparison to what we saw in March of 2020, when the pandemic first hit, which was roughly 13 million layoffs and discharges. This indicates the Plan did help some employers retain their employees.

CONCERNS

The big concern was the amount of large employers taking advantage of the employee retention tax credit. With the guidelines offering sweet returns, many were questioned. If you retained 100 employees and were eligible for the tax credit, you could have received close to a $500,000 tax credit in 2020.

In 2021, the tax credit was increased. The number of employees increased to 500, more or less, and the maximum benefit increased to $14,000 per employee. Significant difference from the maximum of $5,000 per employee back in 2020.

If you were eligible for the employee retention tax credit and retained at least 500 employees in 2021, you could have claimed an even larger tax break at $7 million. The last effective date for the tax credit was June 30, 2021.

But what about other employers who lost employees to other reasons?

EMPLOYEES REFUSING TO COME BACK TO WORK

Then there’s the side of employees that are choosing not to come back at all. It’s no secret we’re facing a labor shortage. A large number of employers and business owners seem to believe it’s due to the amount of federal and state aid allotted to unemployed workers.

In some cases, employees are making more collecting unemployment benefits than they did working their full-time jobs. But that’s not the case for everyone.

PERCEPTION:

Unemployed workers would rather collect unemployment instead of going back to work.

An unemployed Gainesville, Florida travel agent, stated she used to earn $7,000 a month when she was working. Now she has to scrape by with $275 a week. Even with the extra $600 payment & extra $300 a week, she still only received $2900 for the month.

As we inched closer to September, those extras were cut off and she’s left with only $1100 a month. Not exactly enough to make someone choose to stay home.

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However, for lower income industries like:

Retail
Hospitality
Food
Leisure

Unemployed workers could have received more money from unemployment or pretty close to what they would make full-time. But the unemployment benefits aren’t what’s holding them back some say.

They’re looking for better wages, benefits, and for some, better work environments. We may not have seen a lot of employers laying off or firing employees, but we have seen an influx in employees quitting their jobs.

In the Job Openings & Labor Turnover Summary, roughly 3.9 million employees quit their jobs in June of 2021.

Are employees quitting for the same reasons unemployed workers aren’t coming back to work? Is there something that employers can do to improve their retention without the aid of the ending ERC? Perhaps this list of biggest reasons why many employees are quitting can help answer some of those questions.

Many employees report to be quitting to find more:

Flexible work schedules
Higher paying jobs
Better benefits
A better office culture
Improved work environments & conditions

Maybe we have the wrong idea. It’s possible we need to improve as employers before we place the blame on unemployment benefits. The employee rescue plan was effective in some areas, but it showed us how much we need to improve to increase employee retention.

Try This Sample Open Enrollment Notice To Employees

Mon, 20 Feb 2023 13:57:10 GMT

Here comes that glorious time of year when HR again wonders, “What’s it going to take to get employees thinking about what they need to do for enrollment this year?”

Human resources professionals know how important benefits communication is, especially during annual enrollment time when there are upcoming changes to plans and programs. But even with few or no changes, open enrollment (aka annual enrollment) is still the time for employees to think about their needs for the upcoming year, and make sure they have the right benefits and coverage in place.

Especially at smaller businesses, HR staff is often overloaded. That can translate into delaying open enrollment communication until the enrollment window opens, and then delivering all the information at once. Which gives employees only a week or two to start thinking about next year, understand the changes, and enroll.

This year, try kicking off enrollment season with a simple open enrollment notice, or announcement. It can help alleviate that last-minute fire drill by alerting employees in advance that open enrollment is coming.

If you’re thinking, “Oh, great, one more thing for my to-do list,” you’re in luck. Feel free to download this sample open enrollment notice to employees, customize it however you see fit, and get it into employees’ hands about three weeks before open enrollment begins.

Of course, you’ll want to adapt the sample notice to fit the benefits you offer, the changes you’re making (if any), and your company’s communication style or standards. But whatever form your open enrollment notice to employees finally takes, getting it to employees in advance of your open enrollment window will help get them thinking about their needs now, so there’s less scrambling (and frantic phone calls to HR!) during open enrollment.

Firing Etiquette – How to Fire ‘Well’ (if there’s such a thing!)

Mon, 13 Feb 2023 14:09:12 GMT

Etiquette comes most in handy when we’re in an uncomfortable position. It gives us something to fall back on when our brain farts. Like when we have to fire someone. You might have to let them go because of performance issues, violations, or another unsavory reason, either way, it never feels good for either party.

78% of supervisors feel guilty after firing an employee and 71.2% of supervisors didn’t even feel comfortable going through with the termination. Now imagine how it feels for the employee to lose their job.

Employees may have feelings of devastation, anger, worthlessness, guilt, and any other emotions we may feel as individuals. Luckily the concept of firing etiquette does exist and it plays a major role in the firing process.

WHAT’S THE PURPOSE OF FIRING ETIQUETTE?

The purpose of firing etiquette is to make sure we’re protecting everyone’s mental health, meaning certain things are done to help ease the feeling of being fired or firing someone.

But that’s not all.

Good firing etiquette may also help protect your company from legal liabilities that may arise and most importantly it makes sure we treat our employees as human beings. You’ll never be able to stop all of the emotions that come with the firing process, but you can negate the impact by using etiquette.

TIPS FOR A BETTER FIRING PROCESS

We compiled our top 5 tips on how to fire an employee and how to make your company’s firing process better. These are helpful tips for HR teams, supervisors, managers, and anyone looking to improve employee relations.

DON’T BLINDSIDE THEM

There should be warnings leading up to the employee’s termination, so the employee has an idea of what’s coming down the line. Warnings could be, but are not limited to:

Performance feedback
Verbal warnings
Counseling & training sessions
Write-ups

These warnings also give you a chance to speak with your employee about what’s really going on to cause their underperformance, behavior, or any other problem.

Counsel employees first and offer further training, if the issue persists, verbal warnings and write-ups should be next in line. This also creates a record of the problem and what’s been done to remedy the situation.

It’s nice to have if you ever have to refer back to it later or need it legally in the future.

ALWAYS HAVE A FACE-TO-FACE MEETING

Sending someone their walking papers via email, letter, text, or even a phone call is very impersonal. You should always hold the meeting in person and make sure your decision is kept private.

If possible, try to hold the meeting at the end of the workday or workweek to give the employee more privacy and a chance to collect their belongings.

We live in a world where a quick post or review of your company can be detrimental and the email you sent firing them could be put on display. It’s not worth it and it’s better to protect the employee’s dignity as much as possible.

18.2% of terminated employees posted a negative review of the company online in retaliation of being fired

THERE SHOULD ALWAYS BE A WITNESS

Never terminate an employee alone, there should always be someone else in the room with you, preferably someone from your HR team. The extra person is a witness to everything being said.

Without a witness present, it becomes your word against theirs if the employee decides to file a lawsuit. You’ll also have someone who can jump in to answer questions or fill in that awkward silence if it arises.

END WITH ENCOURAGEMENT

Give them encouragement for the future instead of continuing with negative feedback. If the proper steps were taken and warnings were given, they should already know what led them to this point.

The termination doesn’t necessarily mean they’re a bad employee altogether, they just may not be a good fit for your:

Company’s system
Customer base or clientele
Guidelines, rules, or regulations
Company mission
Workload
Company or workplace culture

But they might be the missing puzzle piece to someone else’s organization. Ideally, we want the employee to feel as close to this as possible considering the circumstances.

DON’T LET THE MEETING DRAG ON

There’s no need to keep going over what they did wrong. It’s okay to answer the employee’s questions and let them know they can file for unemployment if your company is okay with it.

You can also make them aware of any potential jobs or fields you think might be more suitable for them, otherwise, keep it short. The employee needs time to process their feelings and contemplate their next move.

FIRING REMOTE WORKERS

71% of Americans began working from home last year with 54% planning to stay remote after the pandemic, so there’s a chance you may have to fire a remote employee. If the occasion occurs, you’ll still be able to use all of these tips except the obvious one.

Having a face-to-face meeting.

Instead, you’ll use the next best thing, a virtual meeting with everyone’s camera on to facilitate a face-to-face feel. You’ll still need to:

Give warnings and track the issue
Have a witness present
Remember to give encouragement
Keep it short and not let the meeting drag on

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Firing someone is just as mentally damaging as it is to get fired. It takes a toll on everyone involved and rightfully so. Using firing etiquette helps to lessen the impact of these emotions.

It also helps with workplace morale because other employees pay attention to how we treat their peers and take note. Granted, no one will ever get fired and be okay with it, but we can treat them with some dignity and as humans.

FAQs About Healthcare Reform Subsidies

Mon, 06 Feb 2023 20:06:55 GMT

In March of 2010, President Barack Obama signed the Affordable Care Act (ACA). In this bill, there are healthcare reform subsidies that help eligible individuals pay lower premiums and out-of-pocket costs.

These financial assistance measures helped Americans afford quality medical care. However, it’s crucial that you know who is eligible before helping employees with the application process for these subsidies.

If you have questions about the basics of healthcare reform subsidies, this article will answer 10 of the them.

WHAT ARE HEALTHCARE REFORM SUBSIDIES?

In its basic definition, a federal subsidy is financial assistance provided by the government. For a healthcare reform subsidy, the government will assist in helping you pay for your health insurance costs.

The assistance provided will depend on various factors, such as your:

Income
Employer’s Offered Healthcare Plan
The Health Insurance Plan’s Cost

WHAT ARE THE TYPES OF HEALTHCARE SUBSIDIES?

There are two types of subsidies available to eligible Americans. The first option is cost-sharing subsidies which reduce your out-of-pocket costs. The second option is premium tax credits, reducing the cost of monthly health insurance payments.

Both of these subsidies can be used by eligible individuals to reduce the costs of health insurance significantly. The cost-sharing subsidy will be more strict on requirements, determined by the individual level on the Federal Poverty Guidelines (FPL).

DO YOU NEED TO PAY BACK SUBSIDIES?

Unlike loans, you do not need to pay back healthcare subsidies or HRAs. The government or your employer provides these subsidies based on your income. However, if you file your income less than you make, you may need to pay back the subsidy.

On the contrary, if your household income is close to $0, you should apply for Medicaid as soon as possible. Medicaid is a valuable program that will remove the requirements of paying for health insurance.

HOW DO YOU QUALIFY FOR HEALTHCARE REFORM SUBSIDIES?

Qualifying for a healthcare reimbursement is almost entirely up to your income level based on the Federal Poverty Level. To qualify for premium tax credits, there must be a household income ranging from 100% to 400% FPL.

If you have a two-person household, 100% FPL would be $17,420 per year in 2021. To qualify for cost-sharing subsidies, you must qualify for premium tax credits and have a household income of 100% to 250% of FPL.

WHAT ARE THE INCOME LIMITS FOR HEALTHCARE SUBSIDIES?

As the top of the Federal Poverty Line, 400% of the FDL is where most benefits end for subsidies. Once you surpass this income level, you will be ineligible for premium tax credits and cost-sharing subsidies.

In 2021, 400% of the FDL is:

1-Person Household: $51,520
2-Person Household: $69,680
3-Person Household: $87,840
4-Person Household: $106,000
5-Person Household: $124,160
6-Person Household: $142,320
7-Person Household: $160,480
8-Person Household: $178,640

DO HEALTHCARE SUBSIDIES AFFECT MY TAXES?

If you receive a healthcare subsidy part of the Affordable Care Act, you will not have to report it as income. However, if you receive premium tax credits, you will still need to report them on your taxes.

The exchange will keep track of how much assistance you receive in a tax year and send you a form 1095-A. When you receive cost-sharing subsidies, there is no additional reporting you need to do on your taxes.

CAN NON-CITIZENS QUALIFY FOR HEALTHCARE SUBSIDIES?

In the United States, naturalized citizens and green card holders can apply for healthcare subsidies. However, non-citizens or undocumented immigrants can not qualify for healthcare subsidies unless they meet immigrant requirements.

Non-citizens can receive healthcare subsidies based on humanitarian grounds, such as immigrants seeking asylum in the United States. Undocumented immigrants over the age of 65 may also be eligible in some cases.

HOW DO YOU CALCULATE HEALTHCARE SUBSIDIES?

There are numerous calculators that you can use online that will deliver an accurate estimate for you. Some of the most common calculations are your income, number of people in your family, and spouse’s coverage if you are married.

One of the most accurate calculators can be found on KFF, which will provide an estimated amount of financial help you will receive. You will also receive insights into what a plan would cost without financial help.

HOW LONG DO HEALTHCARE SUBSIDIES LAST?

Each year, you will need to report your income and determine if you are still eligible for financial assistance. In 2021, President Biden has made the Affordable Care Act more generous until 2022 for people of higher incomes. As long as you remain eligible for subsidies, you can continue to use them every year.

CAN MARRIED COUPLES RECEIVE SUBSIDIES?

Due to subsidies being based on household income, you must file a joint tax return to receive financial assistance. Separate tax returns may cause rejection from inaccurate filing from you and your spouse. If a spouse has suitable group coverage from their employer, you may also be ineligible for subsidies.

FINALLY,

… and as usual, if you need help with any of the information in this article, we can be reached at info@zupnickassociates.com .

Employer-Based Dental Coverage: Part Of The Cure For U.S. Dental Health Woes?

Mon, 30 Jan 2023 20:13:33 GMT

In 2018, between 27% and 56% of U.S. workers had access to dental coverage (depending on job and region). Yet, the most recent study of oral health by the Organization for Economic Cooperation and Development (OCED) ranks U.S. dental health 9th, below Mexico and ahead of France. (The top five were Denmark, Germany, Finland, UK and Finland.) Which begs the question: Can employer-based dental coverage help play a role in improving U.S. dental health?

WHY YOUR EMPLOYEES’ DENTAL HEALTH MATTERS:

As an HR leader, of course you care about all aspects of your employer-based health coverage. While dental benefits don’t get the same attention as medical benefits, they can be as important to your company as they are to your employees.

Good dental coverage keeps your employee benefits competitive. Dental benefits have become more valuable to employees over time. In fact, 82% of workers called dental coverage “very important,” while 54% saw it as a “must-have” in a 2018 study, up from 67% who called dental coverage important in 2014.

And employers are listening, with 97% of employers (small, large and in-between) offering some kind of dental benefits as part of their health plans, according to the Society of Human Resources Management (SHRM).

Dental health and overall health are connected. Recent studies show a link between poor dental health and a variety of serious medical conditions, including heart and cardiovascular issues, problems during pregnancy and childbirth, and mortality from multiple causes. Not to mention ongoing issues like muscle loss as older people lose teeth and the ability to chew properly. Regular dental care can also help detect medical conditions like diabetes that can contribute to dental health issues.

Of course, all the above can also have a direct impact on your company’s overall healthcare costs.

THE QUALITY OF YOUR EMPLOYEE DENTAL BENEFITS CAN MAKE ALL THE DIFFERENCE.

Dental coverage that’s never used helps no one. Employer-based health plans come in all shapes and sizes. The relatively low dental coverage premiums are attractive, but employees often suffer sticker shock when trying to use their dental benefits.

This can result in negative perceptions of both the plan and the company, as well as reluctance to use the plan in the future. The Society of Human Resources Management (SHRM) reports a quarter of U.S. adults don’t see a dentist even once a year, and 40% have delayed or skipped recommended treatments or procedures because they can’t afford the out-of-pocket costs.

Companies that want to offer dental benefits but choose plans that don’t offer any real financial relief to employees who enroll in them are missing the forest for the trees. It doesn’t take much to leave a bad taste in employees’ mouths if they feel they were misled about the value of their employee benefits, no matter how low the premiums were.

This year presents a unique window of opportunity for quality dental benefits. Along with all its other impacts, the COVID-19 pandemic has taken a toll on people’s dental health, too. A study conducted at the end of 2020 showed that COVID concerns caused more than half of adults in the U.S. to postpone professional dental care. Good dental hygiene and habits also took a hit as people increased their consumption of sweets and either skipped or reduced their brushing and flossing.

As the pandemic continues to subside, these people are and will continue seeking to make up for those missed appointments, treatments, and tests—and will look to their dental benefits to help. On top of that, it’s estimated a quarter or more of the U.S. workforce is actively considering whether to change jobs.

That means this fall during annual enrollment, employer-based dental coverage with high quality plan designs can not only help companies attract and retain workers, but may also help improve overall dental health in the U.S.

MAKE SURE YOU’RE OFFERING DENTAL BENEFITS THAT SHOW A DIFFERENCE.

There’s no time like the present to give your dental plan a checkup. Our exclusive new package of dental coverage can help you improve employees’ dental health as well as their perceptions of your employee benefits, plus positively impact company costs and retention. Plus, you can save a combined 20% on the premiums for the next three years. (Offer good until December 31, 2021.) Get started today!

What is a SHOP (Small Business Health Options Program) Registered Broker?

Mon, 23 Jan 2023 20:35:39 GMT

Being a small business owner can be tough when you want to offer your employees health insurance. There’s a lot to think about and for good reason, you want to give your employees access to healthcare and make the right decision for your company.

You may question if you can afford it, if there’s a plan to fit your particular situation, and is there anything to assist you in this endeavor.

And yes! Somewhere out there, there is a plan to fit your company’s budget and circumstances, there’s also someone to help you through the process. Before we tell you who the someone is, let’s go over the program set in place to help small businesses specifically.

This program is called SHOP for short.

WHAT IS SHOP?

SHOP is the Small Business Health Options Program. SHOP was established for small business owners to provide health insurance to their employees that’s more flexible and affordable than traditional health insurance.

At least one employee that is not yourself, spouse, or family member must be employed to qualify. If you have under 50 full-time employees you may qualify for the small business health options program.

Nice To Know: Your company can enroll in SHOP all year round.

You may be eligible for the Small Business Health Care tax credit if you have less than 25 employees and the employees make less than $50,000 a year. (Only qualifies for plans purchased through the SHOP marketplace.)

The best part about SHOP is the flexibility and the convenience it offers small businesses. You can offer one plan to all your employees or employees can choose from a few different plans. At the same time, you can decide when new hires are eligible for health insurance and how much you pay toward the employee’s premium.

There’s also the option to extend health coverage to your employees’ dependents. With SHOP, none of your employees can be excluded from the policy because of pre-existing health conditions, so more employees have access to health benefits.

It seems like a lot to digest and shopping for small business health insurance has its own set of challenges. You have the option to purchase healthcare plans from the SHOP marketplace through your current insurance carrier or through a SHOP registered broker. Either your insurance carrier or SHOP registered broker will help you navigate the complicated process from beginning to end.

However, there are benefits to using a SHOP registered broker.

WHAT IS A SHOP REGISTERED BROKER?

Like insurance brokers, SHOP registered brokers are licensed professionals who work with multiple insurance carriers to find what’s best for your company. The major difference, SHOP registered brokers have gone through hours of training to get certified to operate within the SHOP marketplace.

Registered brokers help you determine your eligibility status and apply for the Small Business Health Options Program. They understand the details of certain tax credits you may be eligible for, like the Small Business Health Care tax credit.

You typically won’t pay extra for their service, but you still get access to the benefits of using a SHOP registered broker. You don’t have to research and compare a variety of plans because the registered broker does it for you.

The registered broker goes over each plan’s specific feature and goes over the options available to you.

Flexible Options

Offer one plan or a selection of plans to employees

Determine when new hires are eligible for health benefits

How much do you want to pay towards your employees’ premiums

The choice to extend benefits to employees’ dependents

After you enroll, your SHOP registered broker continues to manage the plan and keep it up to date with any changes or renewals. They even do a little extra by helping your employees understand their health benefits and answering any questions they may have.

You can choose to use your current insurance carrier, but you’ll only be able to view the health insurance policies that specific carrier offers. A bigger variety of plans are available to you by using a SHOP registered broker and you might increase your chances of finding the right one for your company.

SHOP ELIGIBILITY

A SHOP registered broker will help you determine if you’re eligible or not, but there are a few requirements for the Small Business Health Options Program in general. You have to meet these 4 requirements in order to apply for the program:

Employ between 1-50 Full-Time Equivalent employees (FTEs)

You have to employ at least one employee that’s not your spouse, family member, business partner, or yourself. Some states may allow businesses with up to 100 employees to apply, but you’ll need to contact your State Department of Insurance to find out more.

If you have more than 50 employees and feel like you need the benefits of SHOP, you can reach out to the SHOP call center (1-800-706-7893) for details.

You must offer coverage to all full-time employees

You have to offer coverage to employees working 30 hours or more and you have the option to extend the benefits to part-time employees if you’d like to.

Must have an employee participation rate of at least 70%

The participation rate varies by state. You can check here to see what the rate is for your particular state, but most states have a 70% participation rate. If any employees receive medical insurance outside of SHOP it does not count towards the total participation rate.

This requirement isn’t enforced between November 15th- December 15th of every year. You have the option to enroll during this time without meeting the participation rate.

The employee office or worksite has to be within the same state you’re applying for SHOP benefits

You can only apply for SHOP within the same state as your office or employee worksite. If you have employees in multiple states, you can still purchase healthcare plans through the SHOP marketplace. Click here to find out how!

A SHOP registered broker is a great tool for small businesses trying to offer employee benefits without breaking the bank. You don’t have to be a Fortune 500 company to have access to health insurance resources and affordable benefits.

ICHRA Compared to Other Group Health Options

Mon, 16 Jan 2023 10:37:27 GMT

There are various health insurance options and ICHRA compared to other group health options offers more flexibility to you and your employees. Here’s a guide covering:

ICHRA (Individual Coverage Health Reimbursement Arrangement)
HRA (Health Reimbursement Arrangement)
HSA (Health Spending Account)
FSA (Flexible Spending Account)

You’ll find the most important facts for these group health options:

Employer eligibility requirements
What they cover
Minimum/maximum contribution amount
Tax Benefits

Let’s dive in!

ICHRA

ICHRA is part of the HRA family, but it offers much more flexibility for employers and their workers. It is a new face on the health insurance scene, but ICHRA will most likely be a top contender in employee benefits since the plan allows employees to purchase their own health insurance policy.

EMPLOYER ELIGIBILITY REQUIREMENTS:

ICHRA accounts are available to companies of any size, so you don’t have to worry about meeting ALE (applicable large employer) requirements as you do with some other account-based health plans. Another bonus, you’re not required to offer health insurance to go alongside an ICHRA plan.

Here’s something to keep in mind, you can not offer an ICHRA plan and a group health insurance plan to the same class of employees. Employees can not be placed in a position to choose between the two.

COVERS:

The employee must pay their insurance premium out of pocket and submit a claim to be reimbursed for their expenses.

Health insurance premium
Qualified medical expenses
The employer can opt to cover both of these as well

CONTRIBUTION LIMIT:

No minimum or maximum contribution limit. Only the employer can contribute to the monthly allowance and decide what to do with unspent funds at the end of the month or year. The company has a choice between letting the funds roll over or come back to the company.

TAX BENEFITS:

All contributions are 100% tax-free.

HRA

HRAs don’t allow employees to purchase their own health insurance plans as ICHRAs do. In fact, HRAs must be paired with a health insurance plan in order to offer it as an employee benefit.

EMPLOYER ELIGIBILITY REQUIREMENTS:

Companies of any size are eligible and they must offer a group health insurance plan to go with an HRA.

COVERS:

Employees must pay medical expenses upfront and are reimbursed after they submit a claim for their qualified medical expenses.

Prescriptions
Doctor’s visits
Hospital services
Deductibles

And other qualified medical expenses

CONTRIBUTION LIMIT:

No annual contribution limits. The employer decides if unspent funds are rolled over at the end of the year.

TAX BENEFITS:

All contributions are completely tax-deductible.

HSA

HSAs are a great employee benefit that can help employees with the high costs of medical expenses, however, HSAs are not for everyone.

EMPLOYER ELIGIBILITY REQUIREMENTS:

Companies of any size are eligible, but the employer must offer a qualified high-deductible health plan (HDHP) to employees. The IRS determines which HDHPs are eligible each year. Look for health policies that are specifically labeled “HSA-eligible” to ensure you have the right plan.

COVERS:

Employees can pay for medical expenses upfront and submit a claim to be reimbursed or they can use a debit card linked to the HSA account if the employer provides one. May also make a withdrawal for an upcoming qualified medical expense.

Copays
Deductibles
Coinsurance

And other qualified out-of-pocket and unreimbursed medical expenses

CONTRIBUTION LIMIT:

Both the employer and employee can contribute to the account. Annual contribution limits for 2022 are $3,650 for a covered individual and $7,300 for family coverage.

There aren’t any limits to the amount of unspent funds an employee can roll over each year. The funds belong to the employee at all times and they can take their account with them if they leave the company.

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FSA

A Flexible Spending Account is like an HSA, but you aren’t required to pair it with an HDHP.

EMPLOYER ELIGIBILITY REQUIREMENTS:

Companies of any size are eligible, but an FSA must be paired with a group health insurance plan, unless you’re going to offer a health care only FSA that’s limited to covering dental and vision costs.

COVERS:

Employees must pay medical expenses upfront and are reimbursed after they submit a claim for their qualified medical expenses.

Copays
Deductibles
Prescriptions
Qualified medical equipment and supplies: bandages, crutches, diagnostic devices, insulin, over-the-counter medications, etc.

CONTRIBUTION LIMIT:

The employee primarily contributes to this account and the employer may contribute, but they are not required. The annual contribution limit for 2022 is $2,850 per employee.

Funds must be used within the calendar year or they are forfeited unless the employer chooses to allow up to $500 to roll over to the next year. As the employer, you also have the option to allow a two-and-a-half-month grace period to give the employee the opportunity to use unspent funds.

The account is owned by the employer and can not be carried over to another organization.

TAX BENEFITS:

Contributions are deducted from the employee’s paycheck on a pre-tax basis lowering their taxable income. Funds withdrawn to pay for qualified medical expenses are tax-free for employees.

Employers are not charged FICA and Medicare taxes for the contributions.

For more details or information regarding your particular situation, Zupnick & Associates is here to assist you and your team. Connect with them to find out what else is available to you!

Short Term Health Plan: What Are They & Who Are They For?

Mon, 09 Jan 2023 10:44:46 GMT

A short term health plan is temporary medical coverage for employees who may not be eligible for the employer health insurance you provide. There are a few important details for you to know, e.g., it’s up to the employee to purchase the short-term health plan.

Discover:

What they are
Who they’re for
What they cover
And what they do NOT cover

WHAT ARE SHORT TERM HEALTH PLANS?

Short term health plans (STHP) offer temporary health insurance your employee can use when the health insurance you provide isn’t available to them. The plan gives your employee the ability to visit the doctor without the worry of expensive medical bills due to a lapse in medical coverage.

Depending on your state, plans are available for a duration of 3 months, 6 months, and up to 1 year. Some states allow for STHPs to be renewed for up to 36 months. The plans aren’t required to meet the Affordable Care Act’s requirements, so they may not cover the same benefits as traditional insurance.

There is an underwriting process and the insurance carrier may ask the employee a series of questions regarding their health, leaving space for them to be denied for pre-existing conditions. Don’t let that discourage your employees because these plans do serve a purpose and can be a feasible option if your employee is suddenly without health insurance.

WHO CAN USE THEM?

STHPs aren’t traditionally offered by employers, but your HR department can recommend this option to the appropriate employees when the need arises. Keep in mind, this is used when traditional health coverage isn’t available. Here are a couple of scenarios when you might reference this to an employee:

When you have a new hire and they’re not eligible for benefits until their probationary period has expired. This employee could purchase a short term health plan to bridge the gap until their eligibility kicks in.

There’s an employee that’s been working with the company for a while and they never signed up for the group health insurance you offered after their probationary period or they missed the open enrollment 2022 period. Your employee could buy their own STHP to carry them over until they’re registered for your company’s group health insurance.

There are a few other situations when you might suggest a short-term health plan to an employee, but these are the most common.

WHAT DO THESE PLANS COVER?

Short term health plans cover:

Routine doctor’s office visits
Emergency care
Hospitalization

An STHP is cheaper than traditional health insurance, but deductibles may be higher and copays may still be required. Some insurers may have indemnity policies that could restrict the policyholder to a set network. The insurance will cover up to a specified dollar amount and the policyholder is responsible for the remainder of the balance.

WHAT THEY DO NOT COVER?

Since short term health plans aren’t required to satisfy the Affordable Care Act mandate, there are some essential benefits that are not covered under the plan.

Essential Benefits NOT Covered:

Maternity care
Mental health
Substance treatment

STHPs don’t cover prescription drugs either, but some plans may offer a prescription drug discount card and/or cover prescriptions needed during hospital stays.

CHECK WITH YOUR BROKER…

To find out if short term health plans are available in your state because they are not available in all states. For instance, the state of New York prohibits the use of short term health plans. New York requires all health coverage plans to be renewable, offer comprehensive medical coverage, and cover essential medical benefits.

Most STHPs can’t adhere to these requirements, so they are not available for purchase within the state. Even though New York employers can’t recommend these plans to their employees, they can put more focus on the employer health insurance they want to provide.

Individual and group health insurance plans are always available and there’s a variety of options out there. Group health policies tend to be more affordable for you and your employees, click here to dig into more details.

If you or one of your employees missed open enrollment 2022 and wants to know where to go from here, connect with Zupnick & Associates for a consultation.

The Case For ICHRA

Mon, 02 Jan 2023 10:53:19 GMT

Why ICHRA? Healthcare costs are continuously becoming more expensive, but reasons for why ICHRA is important, include current staff retention.

We have to retain our current staff and attract new talent, but we also must stay ACA (Affordable Care Act) compliant to avoid hefty fines.

On the other hand, some ACA mandates cut into employee wages if you’re a large employer. To help mitigate those costs, we offer group health plans, but they may not meet the needs of all our employees.

So in June of 2019, a federal ruling was granted to help employers facing these problems. In the ruling, ICHRA would go into effect by January of 2020.

WHAT IS AN ICHRA?

ICHRA is an acronym for Individual Coverage Health Reimbursement Arrangement, and you may hear it pronounced as “IK-RUH” for short. It’s similar to an HRA and allows employers to give their employees a tax-free monthly allowance, but it’s much more flexible than a standard HRA. ICHRA offers employees the ability to customize and purchase their own health insurance.

Employees can also use ICHRA to cover out-of-pocket medical costs like prescriptions, copays, and other qualified medical expenses. If you have 50 employees or more, you don’t have to worry as much about ACA compliance.

ICHRA covers 3 ACA requirements:

Affordability
Minimum Value
Minimum Essential Coverage

IMPORTANT: IF YOU EMPLOY 50 OR MORE WORKERS, YOU’RE REQUIRED TO OFFER HEALTH INSURANCE. IF YOU DON’T WANT THE HEADACHE OF MANAGING THAT MANY EMPLOYEES’ HEALTH COVERAGE, ICHRA MAY BE THE BEST CHOICE.

HOW ICHRA WORKS

Employers speak with their benefits advisors to create a benefits plan that details which employees are eligible for reimbursements and how much the monthly limit will be. The employees can then purchase health insurance through the insurance marketplace, an insurance broker, or an insurance carrier.

Since this is a reimbursement plan, employees pay for these costs upfront. Employees can submit a claim for the monthly medical insurance premium and other out-of-pocket medical costs. Once the claim is submitted and approved, the employer can reimburse the employee for medical expenses up to the monthly limit.

ICHRA VS. TRADITIONAL SPENDING ACCOUNTS

Like FSAs and HSAs, traditional spending accounts are tax-free account-based health plans. They have annual contribution limits and the employer can decide if unspent funds can be rolled over. Only employers can contribute funds to the account and the funds are not counted toward the employee’s taxable income.

ICHRA is another account-based health plan, however, there are significant differences between them that put ICHRA a cut above the rest.

MUCH MORE FLEXIBILITY AND CONTROL

As an employer, you can contribute as much or as little as you’d like since there aren’t any minimum or maximum requirements. Contributions can be enough to cover an insurance premium on the marketplace, insurance broker, or carrier.

You also decide which employees are eligible and when new hires reach their eligibility. Since your monthly contribution is a set amount, there aren’t any more surprise rate hikes during the renewal period.

EMPLOYEES GET A SAY

If you offer an HRA, you have to pair it with a group health insurance plan and we know one size fits all doesn’t necessarily suit everyone. It’s rare that most group health policies offer more than 2 to 3 options, sometimes deductibles are high, and other times there aren’t enough services covered to be beneficial to your employee.

An ICHRA allows your employees to finally get the medical coverage they were looking for within a comfortable price range. The more you contribute to their monthly allowance may enable them to afford their health coverage premium and other qualified medical expenses.

LESS RISK

ICHRA is becoming very appealing to business owners because of the reduced risk in compliance and the overall management of the policy itself. Once you and your benefits advisor finish mapping out your policy, you can take a step back.

Since you don’t sponsor the health insurance plan, the employee is responsible for keeping their policy renewed and up to date. However, for employees to maintain ICHRA eligibility, they must remain covered under an individual health insurance plan.

Zupnick & Associates can answer any questions regarding HRAs, reimbursement accounts, or what else an ICHRA can do for your company specifically. Click here!

HR Tips – Hiring Your First Employee as an HR Rep

Mon, 26 Dec 2022 11:01:41 GMT

Hiring your first employee can seem like a daunting task where you’re just starting as an HR representative. Between handling the job listings, legal obligations, and (of course) lots of paperwork, you’ll have enough work to keep you busy for weeks. So just to ensure your efforts pay off in the end, here are some key HR tips for hiring your first employee as an HR rep.

FIRST THINGS FIRST: LAY THE GROUNDWORK

Success starts with good preparation. Once you post your ads and candidates start rolling through your office’s door, your free time will be limited. So try to get as much work done before you start scouting.

GET ON THE GOOD SIDE OF THE LAW

Start by understanding your company’s legal obligations. If the position is new, you must make sure it complies with employment regulations such as:

Fair Labor Standards Act (FLSA).
Federal and State discrimination laws.
OSHA safety regulations.

Having a trusted lawyer by your side will help you sort out common legal issues like how to hire part-time employees without breaking fair employment regulations or understanding what notices you need to send when hiring a new employee.

MAKE THE ONBOARDING PROCESS EASIER

Moreover, even if your candidates have experience in the same position they will fulfill, your company culture, practices, and etiquette will differ from what they know.

You can ease up the onboarding process by creating a detailed employee handbook or customized videos that explain things like:

The office code of conduct.
The benefits and perks that the company offers.
The rules concerning the use of company equipment.
The company’s overtime policy.

Putting everything that the job position entails in writing will help you find the best candidate as well as make for a smooth onboarding process.

CREATE A HIGHLY-CUSTOMIZED JOB POST

Sometimes new HR staff members can make the mistake of using other companies’ job posts as templates. Unfortunately, since your post won’t stand out from the competition the chances of it being seen by quality candidates are low.

Moreover, the vagueness of your job’s description will only make you waste more time weaving out unqualified candidates during the interviewing process.

Instead, what you should do is write a job post that:

Clearly outlines the duties and responsibilities that the job involves.
Lists the educational and experience requirements you’re looking for.
Highlight the company perks, with a special focus on medical benefits, that make your company attractive.
Celebrates having a corporate culture built around inclusivity and diversity.

As for where you should post your ad, there are many reputed online job markets to choose from. However, the best results usually come from posting on niche websites that restrict ads to the particular industry or career you’re interested in.

SCREEN YOUR CANDIDATES THOROUGHLY

Finding the best candidate for the position might require more than one round of interviews and background checks. Once you have a list of possible hires, you can pre-screen them by:

Checking their resumes and cover letters
Having them fill out a job application.
Scheduling remote Skype or Zoom interviews.

After weeding out the candidates that don’t meet your basic requirements, you can use longer interviews to gauge if their skills and personality are what you’re looking for.

DO BACKGROUND CHECKS ON YOUR REMAINING CANDIDATES

To learn more about your candidates, research things like their criminal record history, social security validation, and drug use history.

Background checks are sensitive, though, because depending on the state you live in you might not have the right to dig for certain information. So make sure you consult with your legal team beforehand to avoid bringing legal issues to the company.

SEEK EXPERT ADVICE ON HOW TO HIRE YOUR FIRST EMPLOYEE

Don’t hesitate to ask an expert for help at any point in the hiring process. Working for HR requires a complex set of skills that include accounting, labor law, insurance, and information sciences – among others.

Nobody becomes a Jack of all trades overnight – or maybe ever. Indeed, the sheer amount of skills involved in HR work plus the speed at which government regulations and market swings change the employment landscape means that you’ll always be catching up with these changes.

Conclusion

Why not hire expert advisers to help you navigate the hiring process?

At Zupnick & Associates, we have years of experience helping HR departments. With everything from hiring and firing, to recruitment optimization and benefits consulting, so whether you’re struggling with your first hire or need useful HR tips, contact us today .

How to Maintain Company Culture In a Remote Workplace

Mon, 19 Dec 2022 11:08:31 GMT

Today, more than 12 months have passed since the start of the pandemic. While many businesses are reopening, a recent survey showed that 82% of company leaders plan on letting their employees continue working from home.

There’s no doubt that allowing your employees to work from home has a lot of benefits. (A study conducted by Stanford University showed that working from home can increase productivity by 13%.)

However, there’s also the probability that working from home can cause your employees not to feel connected with the company, which may have a negative effect on their morale. You can prevent this from happening by taking steps to maintain your company culture, even in a remote workplace.

Before we discuss how to do that, let’s first understand why a nurturing company culture is important for your business.

WHY IS COMPANY CULTURE IMPORTANT?

Having a strong company culture directly impacts overall employee engagement, motivation, and productivity levels. A study showed that 73% of employees are more likely to exhibit their best performance in a positive work culture. If your team feels that they are making a significant difference with their work, they will be more passionate about what they do.

A well-functioning company culture allows you to hire the top talent in your industry. One survey showed that company culture is 24% important for job-seekers, and 15% of them will not proceed with a job offer if they do not like the organization’s ethos.

Nurturing a positive and supportive company culture is also important for employee retention. According to a study, if employees do not like their organization’s culture, they are 24% more likely to quit their job. If you want your employees to improve their decision-making, you should make sure that your company culture is well-aligned with your brand values. It will give them a framework to refer back to, while making a decision.

Developing a good company culture requires showing genuine appreciation for t your employees work, promoting self-care among them, reminding them of the purpose they are working for, and taking steps to make them feel connected.

STEPS YOU CAN TAKE TO MAINTAIN COMPANY CULTURE IN A REMOTE WORKPLACE

You can take the following steps to maintain company culture while your employees are working remotely:

Communicate your values more effectively. From the start, be very clear to your employees about your goals and expectations. Welcome any feedback they might have and encourage them to share their grievances. Provide a document that highlights your company values and communication guidelines and ask your employees torread it. This will ensure that they are on the same page as you, and they will work more effectively.

Reward employees who reflect your values. A little appreciation and reward during team meetings for employees who perform well will go a long way. According to a study conducted in 2018, recognition of your employees’ good performance has a positive effect on their overall engagement and productivity.

Organize virtual activities for your employees. Holding fun virtual events like happy hour or game nights will help your employees unwind from work-related stress and improve their focus and concentration. These events will also make them feel connected, and less isolated while working remotely.

Support and empathize with your employees. We all are going through unprecedented times. One study showed that employees who work from home may have higher stress levels.

Don’t forget how important it is to maintain a healthy company culture for employees who are working from home. If your remote workers are failing to deliver on their tasks, it may be because they feel their company is letting them down. Improve this, and you’ll see improved retention, as well.

What Will Employee Benefits Look Like in 10 Years?

Mon, 12 Dec 2022 11:19:42 GMT

Companies like Zillow, Dropbox, and Twitter have already decided to remain fully remote for most employees. 58% of workers are willing to quit their current jobs if they don’t have the option to work from home. So, we may see more companies following suit.

If this trend progressed, office culture, work schedules, and employee benefits would look very different in 10 years. Flexible schedules would be more common and employees could work wherever they are most productive.

Benefits like paid vacation would also become a minor player in your benefits package. We could see more fringe benefits geared toward your employee’s health, work-life balance, and wellness.

So, what will employee benefits look like in 10 years?

Here are the top 5 employee benefits we may see in the future.

FAMILY CENTERED BENEFITS

Childcare isn’t a new problem, but the pandemic made sure we couldn’t ignore it. Pew Research found that 52% of employed parents had a difficult time juggling their childcare responsibilities and work.

There were employees struggling to provide care to aging parents as well. Companies like Prudential and Carter’s children’s apparel have already taken the initiative to support their employees.

Last year, Carter’s held many sessions with their employees regarding problems and concerns with childcare. These sessions revealed many employees needed help. Carter’s already offered childcare benefits, but after this they decided to ramp up their childcare options.

They now offer back up childcare, tutoring for school aged children, discounts to childcare facilities, and discounts to camps & programs.

Prudential is assisting their employees with eldercare benefits for their loved ones. They connect their employees with resources for emergency caregivers, in-home nursing agencies, and geriatric physicians.

Other family benefits we may see:

Increased paid family & bereavement leave
Adoption credits & subsidies
Eldercare benefits
Childcare benefits

2. ACCESSIBLE & AFFORDABLE HEALTH INSURANCE

As of right now, health insurance is expected to outpace the rate of inflation. This means medical coverage could cost our employees more than it already does.

As employers, we can opt to help our employees by trying to make health insurance affordable and more accessible. For instance, offering income-based premiums to lower-income families may allow your employee and their family to go to the doctor when they need it.

Some companies are even offering to cover 100% of health insurance benefits for their employees, spouses, and dependents.

Jiff
Facebook
Campbell’s
GoDaddy covers 100% of the employee’s insurance premium and 50% of the premium for spouses & dependents.

Accessing medical professionals virtually and telephonically could be a staple for accessibility. Employee education of benefits may become more normal as well. Many employees aren’t aware of what’s available to them or how to initiate certain claims and services.

As time goes on, we’ll need to make sure they have all the information they need to make informed decisions.

3. MENTAL HEALTH BENEFITS

Over the next 10 years, mental health benefits could be included with your employee benefits package. Luckily, 53% of employers have started to provide mental health benefits.

Starbucks gives their employees 20 free counseling sessions to their employees and family. PWC provides their workers access to well-being coaches. They can discuss what’s stressing them out or how to have a better work-life balance.

Giving employees the option for in-person, virtual, and telephonic counseling would make it more accessible to employees. Investing more in mental health benefits could help prevent burnout and possibly increase productivity.

4. FINANCIAL WELLNESS BENEFITS

Financial wellness is more than offering employees access to loans or resources when they’re going through hardship. The financial uncertainty and job insecurity of 2020 made people rethink their finances.

Employers can offer their workers financial education and access to financial counselors & coaches. With education they can learn how to plan for emergencies and how to use all the benefits at their disposal.

Other benefits offered could be financial aid guidance, student loan counseling, a 529 college savings plan, or credit & debt counseling.

Prudential currently offers their employees access to interactive financial content, online tools, and other programs.

63% of employees are stressed out about money.

5. EMPLOYEE RESOURCE GROUPS

Employee Resource Groups (ERGs) may become more common in the remote work environment. These are employee-led groups to create a safe space for employees. ERGs help to increase inclusivity and build a sense of community within the workplace.

Each group is different and may share a certain characteristic, gender, religion, ethnicity, lifestyle, or interest. Employees can come together to provide support in career development, personal issues, or issues that arise within the workplace.

ERGs also help owners, managers, and leaders stay in the loop with specific issues, topics, ideas, and successes. As of right now, 90% of Fortune 500 companies have Employee Resource Groups.

Companies already using ERGs:

Hilton
AT&T
Aetna
Mastercard

The employee benefits we offer is a small piece to the puzzle of how to increase employee retention. What matters to our employees is changing and will continue to evolve.

However, we may be able to get ahead of the curve and start offering our employees fringe benefits that cater to their wellbeing and their families.

Top Voluntary Benefits That May Soon Be Mandatory

Mon, 05 Dec 2022 11:31:52 GMT

Voluntary benefits are constantly evolving. However, the Covid pandemic, the rise of remote work, and the labor shortage have kicked it up a notch.

Today, companies of all sizes are propping up their core benefits with new, exciting perks that will attract and retain the best talent. What’s more important is that many of these voluntary benefits might soon be mandatory, so let’s learn more about them.

PAID MATERNITY LEAVE FOR 12 WEEKS

The Family and Medical Leave Act (FMLA) guarantees 12 weeks of unpaid leave and job protection for new mothers. However, while this law gives moms time to recover and bond with their newly born or adopted children, qualifying for it is hard, and even those who get it still have to do three months without a paycheck and adequate health benefits. Luckily, though, this is starting to change.

MORE STATES AND EMPLOYERS ARE OFFERING 12-WEEKS PAID MATERNITY LEAVE

Although in 2018 only 17% of American workers had access to employer-based paid maternity leave, HR recruiting agents today understand it is a huge selling point and are rushing to meet the demand.

Moreover, paid family leave is already the law in nine states — California, Colorado, Connecticut, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Washington — plus the District of Columbia, so it’s only a matter of time until the federal government joins the line.

PAID MATERNITY LEAVE IS A CRITICAL PART OF BIDEN’S AMERICAN FAMILIES PLAN

Biden’s American Families Plan (AFP) has earmarked $225 billion for a national paid leave program. If approved, the AFP will provide new mothers with up to $4,000 a month, with at least two-thirds of their average weekly wages replaced. New mothers with the lowest wages could get as much as 80% of their prior wages.

PAID PATERNITY LEAVE

Traditionally viewed as the breadwinners, fathers often feel pressured to keep working after their child is born. Indeed, fathers will seldom take parental leave, even when they qualify for it. Thankfully, though, as studies highlight the importance that men have to the health of their wives and offspring, both the attitudes and legislation towards paid paternity leave are changing.

PAID PATERNITY LEAVE USE IS GROWING AROUND THE WORLD

Countries like Sweden have modified their parental leave programs to make it easier for new fathers to take time off. Even in the US, where childcare is still seen as a feminine role, there is broad support for greater access to paid parental leave. Yet, passing the legislation might be the easiest part.

FATHERS THEMSELVES MIGHT BE THE BIGGEST OBSTACLE FOR PAID PARENTAL LEAVE

Many have noted new fathers’ reluctance to take time off to care for their families. Whether it’s due to preconceived gender roles, nervousness about their families’ finances, or fear of criticisms from their male colleagues, some experts believe that making paid parental leave mandatory could be the only way to stop new fathers from prioritizing their jobs over bonding with their families.

4-DAY WORK WEEK

While the five-day, 40-hour work week has been our standard since the 1930s, the reality is it’s quickly becoming obsolete. The rise of remote work means that workers have more options than ever, leaving many companies critically short of labor. To solve their staffing issues and become an attractive location for employees, many businesses are experimenting with a revised four-day, 32-hour work week.

4-DAY WORK WEEKS ARE TAKING OVER THE CORPORATE WORLD

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4-DAY WORK WEEKS MIGHT BECOME A REALITY SOONER THAN YOU THINK

But the four-day workweek isn’t a ‘foreign’ phenomenon by any means. Indeed, many American companies – like Kickstarter or Elephant Ventures – are either implementing four-day work weeks or plan to do so in the near future.

The four-day work week has even made it to Congress, where a bill that would require employers to pay overtime for non-exempt workers who clocked more than 32 hours in a week could be the first step to the four-week nationwide adoption.

These voluntary benefits might soon fill the gaps that core benefits may leave. So instead of watching passively as your competitors rake the benefits of being early adopters, why not give them a try?

How to Let an Employee Go

Mon, 28 Nov 2022 11:42:32 GMT

Whether it’s motivated by an employee’s actions or a sudden contraction of the economy, letting employees go is always an uncomfortable task. Still, there are many things you can do to make the process run smoothly and avoid setting up legal complications in the future.

So whether you just started your HR career or are a veteran in your department, here are some useful firing tips that will ease the experience for both of you.

KEEP IT PRIVATE

Getting fired can be a humiliating experience. Indeed, studies show that being laid off can instantly trigger feelings of shame, self-pity, and cause depression in a person. Keeping the process behind closed doors will help both preserve the soon-to-be ex-employee’s dignity as well as your workplace morale.

The time and place you choose to fire an employee are just as important as the words you use. Find a conference room or office where you can talk privately and schedule a face-to-face talk during a lunch break or another time when business is slow. That way, the employee can have the space they need to grieve privately without worrying about what others will think.

GET EVERYTHING IN ORDER

Pick your words carefully. What you say to an employee you’re firing could either lead to an amicable termination or a lawsuit.

You shouldn’t attack the character of the person but you shouldn’t beat around the bushes either. If the employee was incompetent or unproductive, then write down what rules or industry standards (if any) the employee violated so you can go through them in your meeting.

Focus the discussion around the facts, have all the documentation you need at hand, don’t get personal with the employee and you’ll be surprised how smooth the meeting goes.

Make It Quick

Although there isn’t a perfect way of firing someone, it’s usually best to do it quickly. Instead of dragging out the conversation with explanations, try keeping the termination under 15 minutes.

Once you have given your reasons, take a couple of minutes to provide actionable advice and answer any questions your ex-employee may have about the last paycheck, unemployment benefits, job references, etc.

Say goodbye and let the person know you genuinely want to help them. Remember that this ex-employee might soon work for your competitor or even go seek legal help. So, it’s in the interest of your company to see your ex-worker employed again as soon as possible.

ENSURE A SPEEDY DEPARTURE

Once the termination process is over, everything should be in place for the ex-worker to leave your company building as soon as possible. Keep a checklist with you that includes everything the ex-employer will need to surrender or take before they leave, such as:

Keys or door passes.
Company-owned electronic devices – such as smartphones or USB security keys.
Personal belongings – if they can collect them after work or on the weekend, all the better.
Delete their company digital accounts so they can’t access your network or database.

Planning these steps will ensure that the termination process is quick, smooth, and protects your company at all times.

TALK WITH YOUR TEAM

Employee turnover is a fact of life in the office. Even so, a firing can make workers feel uneasy about their future.

If you aren’t transparent with other employers, they might start wondering whether they are next. Moreover, if the former employee was well-liked, the firing could damage the workplace morale and strain relations between workers and management.

To prevent gossip from adding fuel to the flame, remember that retention relies on understanding. So make time to discuss with your co-workers how this firing will affect them and make these reunions as fun as you can to reinvigorate your team.

Letting employees go always has the potential to bring complications – such as wrongful termination lawsuits or poor office morale. But if you are prepared and deal with the termination process tactfully, you can both walk away and still stay on cordial terms.

So make sure you put these termination tips to practice and if you need any help, you know where to contact us .

What Is the Women’s Health and Cancer Rights Act of 1998?

Mon, 21 Nov 2022 11:49:53 GMT

The Women’s Health and Cancer Rights Act (WHCRA) is a federal law administered by the Department of Labor that provides protections for women choosing to get breast reconstruction services after having a mastectomy.

The WHCRA requires that health insurance carriers – group health plans, insurance companies, and health maintenance organizations (HMOs) – provide coverage for breast cancer patients that goes beyond “drive-through” mastectomies. This means that carriers can no longer cut costs by limiting a cancer patient’s hospital stay but instead must provide adequate post-op reconstructive services.

BREAST CANCER COVERAGE IS CRITICAL TO WOMEN’S HEALTH

Breast cancer remains one of the most common types of cancer among American women. According to the American Cancer Society (ACS), American women have a 13% risk of developing breast cancer sometime in their life.

Breast cancer is the second deadliest type of cancer among women, after lung cancer, with 1 in 39 women (2.6%) dying from it every year – the ACS estimates that 43,600 women will die from breast cancer in 2021.

The Women’s Health and Cancer Rights Act of 1998 addresses this health issue by giving women the ability to check themselves and get mastectomy treatments if needed.

THE WHCRA EXTENDS BREAST CANCER BENEFITS BEYOND MASTECTOMIES

Despite improvements in care, breast cancer survivability still depends on the early detection and treatment of the disease. And, unfortunately, many women die of breast cancer because they lack the coverage to check themselves or get mastectomies if needed.

Moreover, since breast cancer treatments are so expensive, survivors may get into debt paying for breast cancer treatment and end up with no hopes of getting reconstructive surgery. And this is precisely why the WHCRA was passed.

The Women’s Health and Cancer Rights Act of 1998 addresses this issue by requiring that insurance carriers cover reconstructive surgery as part of their mastectomy benefits.

WHAT IS COVERED UNDER THE WHCRA?

The WHCRA applies to group health plans, health insurance companies, and HMOs with plans covering the medical costs for mastectomy surgery. According to the law, carriers must cover:

Breast reconstruction services to offset the changes made by the mastectomy.
Surgery costs for the other breast to ensure both look symmetrical and balanced.
The costs of external breast prostheses used before or during the reconstruction process.
Any complication that may arise during all the stages of the mastectomy – such as lymphedema, seromas, or infections.

Mastectomy benefits aren’t exclusive to breast cancer patients, though, so individuals who must undergo a mastectomy without having the disease are still covered under the WHCRA.

WHAT ISN’T COVERED UNDER THE WHCRA?

The law itself doesn’t require group health plans to cover mastectomies but the reconstruction services that follow the procedure. Unfortunately, this means that the WHCRA is far from perfect and still has coverage gaps – which many nonprofits are working to reduce.

Some carriers might resist covering the costs of medical tattooing, which creates realistic-looking areolas that help survivors feel better about themselves. Worse yet, women who would prefer “going flat” and opt out of reconstruction after their mastectomy to lower the risks of surgery complications aren’t given the same coverage under the act.

Whatever the case may be, carriers and self-insured employers have a responsibility of informing plan members about the benefits covered under the WHCRA.

CARRIERS’ HAVE A DUTY OF NOTICE UNDER THE WHCRA

The WHCRA requires that healthcare insurance carriers notify their plan members about their post-mastectomy benefits. According to the law, notice must be given to:

Participants and beneficiaries of a group health plan during open enrollment – as well as to policyholders when an individual health insurance policy is issued.

Group health plan members and beneficiaries, as well as individual policyholders, once a year.

As for the information included, the notice must include a detailed description of all the mastectomy-related employee benefits that are covered under the plan. Furthermore, the enrollment notice should also describe the deductibles and coinsurance limits of the plan.

The Women’s Health and Cancer Rights Act of 1998 plays a key role in helping breast cancer survivors on their way to a full recovery. Moreover, it outlines what responsibilities carriers and employers have toward plan participants in terms of coverage as well as the duty of giving them notice.

Benefits of Working with An Insurance Broker

Mon, 14 Nov 2022 08:58:22 GMT

Shopping around for health insurance for your employees can be tedious and complicated. Working with a health insurance broker gives you lower rates, the right plan for your company, and saves you time.

A health benefits broker is a licensed professional who works directly with insurance carriers. They work with multiple health insurance carriers to provide you a wide range of options that best fit your company.

Without a health insurance broker, you’re stuck wading through the research and comparison of different plans. What’s worse? There’s a chance you might not pick what’s truly beneficial for your employees.

Brokers use their knowledge and expertise to help you make well-informed decisions, but that’s not all brokers bring to the table.

The biggest advantage of using a benefits broker is the relationships they build with health insurance carriers. Because of these relationships you gain access to lower premium rates and various health coverage options.

Building relationships with various health insurance companies allows them to:

Work better for you
Give you options and comparisons
Save time and money

69% of business owners choose to use a health benefits broker

WHAT THEIR RELATIONSHIPS DO FOR YOU

BENEFIT BROKERS WORK FOR YOU

Since benefits brokers work with multiple health insurance carriers, they aren’t directly associated with anyone specifically. They build relationships with many carriers to give you benefits you wouldn’t get privately.

They represent you when they negotiate terms and costs, not the insurance company. This way, they look for policies that fit your particular set of circumstances.

As a business owner or decision-maker, we may not know all of the risks and liabilities within our organization. Health plans have varying limits, costs, guidelines, and exclusions. Each factor is taken into account before the broker presents any policies to you.

Using a broker reduces the burden of researching a myriad of companies offering various policies. Benefits brokers also build relationships with local markets. For instance, if you’re looking for Brooklyn health insurance, you would be able to find a broker within your area.

You would also receive the same level of expertise and access to connections within that market.

OPTIONS & COMPARISONS

When you approach a health insurance carrier directly, you can only choose from the healthcare plans they offer. A health insurance broker allows you to compare between many companies and different plans.

Versus an insurance company where you’ll be limited to a few choices. You think you’re choosing a good plan, but it’s not a suitable plan for your company’s needs. More options give you a little more control over what’s best for your company.

Take advantage of broker relationships and expertise to navigate through the red tape and complexity of health insurance.

BENEFITS BROKERS:

Advise you with the knowledge of your needs and what matches them
Help you avoid shopping around on your own
Offer a variety of options for you to compare

SAVES YOU COST & TIME

Signing up for healthcare plans with health insurance carriers isn’t always cheaper. Health insurance brokers build relationships with different carriers to offer you lower rates. Brokers offer rates from multiple insurers to find what corresponds with your budget, needs, and situation. One of the reasons insurance carriers offer brokers lower premiums is because the risk of filing unnecessary claims is decreased.

Benefits brokers are professionally trained in risk assessments, guidelines, and selecting the right amount of coverage. Which allows insurance carriers to give them discounts on coverage.

Using a broker saves you time as well. They make sure your policy is current, within legislation, and watch out for any tax changes. If you’re looking for a broker, it’s easy and quick to get a consultation and quote.

If you already have a broker, they assist you with what you need for your policy and get you through the claim process. Decision making can be a little faster, since you don’t have to worry about all the moving parts.

If you need help with health insurance, employee benefits, or any other business insurance, contact us here !

Retention Tactics for Remote Employers

Mon, 07 Nov 2022 09:03:32 GMT

The rise of remote work has helped countless businesses staff job positions during the pandemic but also created particular challenges of its own.

As employees ditch the office for the comfort of their homes, tracking their engagement has become more difficult. Even worse, the online nature of remote work means that your employees are only a few clicks away from other remote employers’ contact pages.

If you’re to retain top talent beyond the pandemic, you’ll need to revamp your company culture. So here are four retention tactics that will help you improve your remote employees’ retention rate.

HELP YOUR REMOTE EMPLOYEES FEEL CONNECTED

Working from home is more challenging than people think. Without colleagues around they can bond and socialize with, remote workers can easily feel unmotivated and disconnected from their job. Each day then seems like a repeat where any feelings of excitement or achievements are missing.

You can help your remote workers find purpose in their work by creating opportunities to communicate and submit feedback.

Managing remote workers is a science of its own. Creating smaller, highly-driven teams where managers set and check daily goals is a great way to recreate the atmosphere (and results) of the office.

But the meat of the matter relies on building solid channels of communication that tie your workers together. So whether it’s helping workers solve issues with a particular tool or routinely recognizing the best performers on a team Zoom call, it’s up to you to make your remote workers feel like they’re part of a team.

MAKE FLEXIBILITY THE CORNERSTONE OF YOUR REMOTE WORK POLICY

Remote employees love flexibility, and this is even more so for hybrid workers, as their job requires them to step into the office a few hours a week.

When remote workers are given the ability to choose when, how, and where they work they can excel in their job while also maintaining an excellent work-life balance.

The trick behind creating a flexible, remote work environment is basing your metrics on outcomes rather than on how many hours a worker spent in the office. If hybrid workers are given clear, achievable goals, they can attain them on their own without the need for being briefed/debriefed at the office.

Even so, hybrid workers should still want to go to the office for face-to-face meetings every now and then to avoid having their careers suffer from “proximity bias.”

CHOOSE THE RIGHT TOOLS FOR THE JOB

Working remotely adds a new layer of difficulty to office work. Something as simple as setting a meeting – which in the office could be done talking by the water cooler – could require logging into multiple accounts and exchanging dozens of emails.

When choosing your software stack, make sure your employees have a saying in your decision. Email them a poll and ask them what collaborative software – Kanban boards, desktop sharing applications, video conferencing tools, etc. – they have experience with. Better yet, instead of imposing them a one-size-fits-all solution from above, allow your teams to choose the tools that suit them best.

With the right tools on their hands, your company can streamline your communications and make for a more enjoyable and productive remote working experience.

MAKE EXPENSE REIMBURSEMENT PART OF YOUR EMPLOYEE BENEFITS PACKAGE

Employees working from home rely on themselves to furnish their home office. Whether it’s internet use or office supplies, like paper clips or pencils, all these little expenses add up and take up a small part of their earnings.

Instead of making them choose between bearing the costs or driving into work and raiding the office cabinet, why not use company funds to cover these expenses?

Establishing an expense reimbursement policy for remote employees will help keep their minds on their work.

Moreover, it will also save you the costs of litigating expense reimbursement lawsuits, since many states have laws requiring employers to reimburse workers for expenses incurred while carrying their employer’s business.

Now that your workers are out of the office, it’s important that your remote jobs are attractive, engaging, and have clear advancement opportunities. So make sure these retention tactics are part of your company culture and your employees will have plenty of reasons to stay!

Retention Relies on One Thing: Understanding

Mon, 31 Oct 2022 12:24:16 GMT

Employees are quitting their jobs or considering it every day.

In Microsoft’s survey they found 40% of employees are contemplating a change in occupation before the end of the year. This leaves HR to reconsider employee retention and what it truly means.

We’ve depended on employee benefits to pull us through, but it’s not always enough, alone. HR must focus on what can improve employee retention for the long run.

Understanding.

Over the years, HR coveted strict policies, rules, and work schedules. Essentially, leaving HR with the lack of understanding the individual. The following breakdown will help improve employee retention and strengthen the employee-employer relationship.

THE ELEMENTS OF UNDERSTANDING IN EMPLOYEE RETENTION

The Importance of a Flexible Work Environment

2. Employees Make Mistakes

3. Employees Have Lives Too

1. IMPORTANCE OF A FLEXIBLE WORK ENVIRONMENT

Gallup found that employees value a flexible work environment over having more benefits. Making it a must instead of a perceived perk. A flexible work environment allows the employee to have the ability to control when and where they work. Celebrating long hours and no breaks are becoming a thing of the past. Any companies still adhering to these old ways will be left behind and with less employees.

Some companies have a preconceived notion that flexible work environments aren’t as productive as traditional workplaces. This is not the case. The high productivity in traditional workplaces hid the reality of employee exhaustion and burnout. Investing in a work environment with flexibility & autonomy attracts new employees and helps you keep the ones you already have.

Which work environment best suits your company?

Hybrid Work Environment: Employees can split their time between the office and working remotely.
Remote Work Environment: Employees work primarily at home.
Flexible Hours or Condensed Work Week: Employees are allowed to work hours better suited for their personal schedules creating flexible hours for themselves. Or an employee can work three to four long days with an extended weekend.

2. EMPLOYEES MAKE MISTAKES

We all make mistakes and so do our employees. Depending on how we handle their mistakes can be a deal breaker for employee retention. When doing reviews, evaluations, or giving recognition there are a few things HR must keep in mind:

Don’t let problems build up and don’t wait too long for positive recognition.

If there is an issue with an employee don’t let their mistakes build up and continue. At the same time, don’t let too much time go by before giving positive recognition as well. 80% of employee recognition is negative and it hinders employee retention.

What was the motivation behind the mistake?

Your employee’s mistake could be an accident, intentional, or the result of trying something new. Understanding what motivated their mistake helps HR better connect with the individual.

For instance, the employee may have taken a chance on a new method, process, or system to complete a task. The mistake wasn’t on purpose or to harm the company. They took a risk that didn’t pan out.

You don’t want to discourage your employees from taking risks or being innovative. Discuss the mistake in a positive way. Let them know you appreciate their effort and initiative.

Be mindful of your tone and the words you use.

How we approach our employee’s mistakes is vital. HR should meet the employee with curiosity in their voice and a calm tone. Don’t use words like “you messed up” or “you failed to complete”.

What we say and how we say it can stick with an employee for a long time. It can even initiate the job search for some workers. If handled well, you can strengthen the employer-employee relationship.

3. EMPLOYEES HAVE LIVES TOO

Employees have children, family, and friends. They manage households, have extracurricular activities, and need to take care of themselves. The typical 9-5 work schedule may not be feasible for someone with children or other obligations.

Understanding they have lives outside of work helps you create a more flexible work environment.

Stop celebrating long work hours and little time off. Promote better work habits and a proper work-life balance. Encourage breaks and using vacation time. 53% of employees say an improved work-life balance and personal well-being is better than some of the employee benefits they currently receive.

Employee retention allows for fewer missed days, lower turnover rate, and a results-oriented work environment. Developing an understanding for our employees helps HR improve employee retention, productivity, and engagement. Understanding shows you care and are sincere about finding a suitable solution for the individual. Employee benefits are nice to have, but they’re not enough to keep a valued employee.

A flexible work environment and bringing understanding back to HR is the key to employee retention.

What to Know About PPE Equipment Being Payable Under FSAs, HSAs, and HRAs

Mon, 24 Oct 2022 12:32:33 GMT

Disclaimer: The information provided in this article does not and is not intended to constitute legal advice.

PPE COSTS

At the height of the pandemic, the cost of PPE increased by 1000% due to limited supply. Healthcare providers are required to wear PPE, and there have been reports of dental offices and assisted living facilities charging their patients a COVID ‘fee’ to cover the expense of face masks and other equipment.

These employees were not being provided reimbursement for COVID PPE by the CMS and private insurance companies.

There was a lot of ambiguity regarding the coverage of PPE by group health insurance providers. But, a recent announcement by the IRS cleared that up and provided clarification that PPE is a qualified medical expense.

THE IRS ANNOUNCEMENT 2021-7

On 03/26/2021, The IRS made an announcement 2021-7 to clarify whether money spent on buying PPE is considered a medical expense or not. According to the IRS, under § 213(d) of the Internal Revenue Code, all payments made to purchase face masks, hand sanitizers, wipes, and other PPE are treated as a medical expense.

This means: if a person has bought PPE for themselves, their spouse, or a dependent,

who is not compensated by insurance, the money spent will be deductible under § 213(a).

The only condition is that the total medical expenses of the person should exceed 7.5%

of their adjusted gross income.

The amounts spent on PPE can also be reimbursed under FSA, HRA, HSA, and Archer MSA. (Though, if someone has reimbursed those amounts under these health accounts, they’re not deductible under § 213.)

For group health plans, including FSA and HRA, which do not reimburse COVID PPE expenses, amendments may be made to reimburse amounts spent on COVID PPE after 01/01/2020.

REACTION FROM PROVIDERS

This announcement was very well-received by the providers of health plans.

For example, Health-Ecommerce, the parent company of FSA and HSA marketplaces for eligible products, applauded the IRS for changing rules about PPE expenses. The company said that they have been advocating this change for a year so that the 70 million Americans who use FSA and HSA can better protect themselves and their families against the pandemic.

In October 2020, a bill was presented in the US House of Representatives regarding this change. However, it did not pass.

REACTION FROM AMERICANS

The reaction of American workers who have to deal with a broken healthcare system and rising unemployment rates are not as enthusiastic. The US healthcare system is built in such a way that its high costs benefit private insurers and healthcare providers, executives of pharmaceutical companies, and medical equipment manufacturers. However, employees who contribute as much as $1,242 annually to a group health plan do not get to enjoy the same benefits.

Healthcare accounts such as HSA, HRA, and FSA make it a little easier for employees to manage their healthcare expenses and to cover any unexpected medical costs that might come up while also giving them tax benefits. Due to the pandemic, some employees are on the brink of losing that health coverage.

TODAY

Presently, millions of employees across the US are using these health plans. A study by Metlife showed that 61% of employees consider healthcare benefits to be the reason for their satisfaction at work. The inclusion of COVID-related PPE expenses in healthcare plan coverage will evidently bring down the quality of health benefits provided by the employer. This will increase the frustration of employees, who already deal with staggering medical costs.

Not only that, but it will also have negative effects on the turnover rate of your company. This article mentions that employees might quit a company if they are not offered a good number of benefits.

The Facts About the United Healthcare Emergency Room Policy

Mon, 17 Oct 2022 12:42:24 GMT

The never-ending conflict between insurance carriers, benefits administrators, and hospitals erupted several weeks ago with the announcement of United Healthcare’s mid-2021 emergency room policy revisions. The nation’s leading commercial health insurer by market share stated that as of July1, they would be carefully scrutinizing emergency hospital visits by their insureds to determine if their visits were for a “real” emergency.

The New Policy

UHC officials estimated the new policy would result in denial of coverage for 10% of emergency room visits. 90% of emergency visits would still be covered under the new guidelines.

The Reaction

United Healthcare’s plan to reduce overall ER compensation was quickly and publicly denounced by several hospital organizations. Hospital emergency rooms face major financial headwinds because the Emergency Medical Treatment and Labor Act (EMTALA) requires that anyone coming to an emergency department be stabilized and treated, regardless of their insurance status or ability to pay.

The Politics

Medicare and the EMTALA are classic examples of the federal government requiring an entity like a State or hospital to do something without providing the money necessary to fulfill that obligation. That’s known as an unfunded mandate.

In order to provide care to everyone who shows up in the ER, emergency physicians, according to one study by the College of Emergency Physicians (ACEP), provide an average of $138,300 of EMTALA-related charity care each year. One third of emergency physicians give more than 30 under-compensated or free hours of EMTALA-related care each week. Physicians in other specialties provide, on average, about six hours a week of care mandated by EMTALA, and on average, annually incur about $25,000 of EMTALA-related bad debt.

UHC’s proposed policy is a direct hit to the thin financial stability of all hospitals. The for-profit hospitals who traditionally operate on slim 8% profit margins, and the majority of hospitals which are nonprofits.

The UHC Response

UHC attempted to justified the new policy, stating that,

“Unnecessary use of the emergency room costs nearly $32 billion annually, driving up healthcare costs for everyone. We are taking steps to make care more affordable, and encouraging people who do not have a healthcare emergency to seek treatment in a more appropriate setting, such as an urgent care center. If one of our members does receive care in an emergency room for a non-emergent issue, like pink eye, we will reimburse the emergency facility according to the member’s benefit plan.”

But…

A June 10, 2021 open letter to United Healthcare’s CEO Brian Thompson from The Federation of American Hospitals, a group of 1,000 hospitals in 46 states, DC, and Puerto Rico; offers the hospital’s point of view.

The FAH letter asks,

“How will a patient in severe pain know whether a situation seems life threatening? And if the patient, out of confusion, determines not to visit an emergency room, how are they expected to address a potentially very serious risk to their health and life? And what if the emergency happens to occur on a weekend, evening, or “after-hours” when an alternative facility or physician office may not be available?”

President and CEO of The American Hospital Association, Rick Pollack, stated that, “Threatening patients with a financial penalty for making the wrong decision could have a chilling effect on seeking emergency care. This is exactly why federal law requires insurers to adhere to the prudent layperson standard, which prohibits insurers from putting up coverage roadblocks to emergency services, such as by determining retroactively whether a service will be covered based on the patient’s final diagnosis.”

It’s Happened Before

Conflicts around insurance carriers, patients and emergency room care happen frequently. In June 2018, ACEP and The Medical Association of Georgia filed a lawsuit when Blue Cross and Anthem instituted a similar policy of retrospectively denying payments and/or reimbursements for emergency department encounters deemed “non-emergent”. The lawsuit claimed the policy would be contradictory to the “prudent layperson” standard of the EMTALA, and that providers and patients alike would be operating in fear that payment by the insurers would be denied.

Currently:

United Healthcare has agreed to temporarily hold off on implementing their new 2021 emergency room policy, reiterating that even should they declare an ER visit to be non-emergent, if the hospital or health system attests that the patient’s visit met the prudent layperson’s definition of emergency, the claim would typically be processed according to the plan’s emergency benefits.

It appears the stage is being set for an uptick in legal and paperwork battles between hospitals, insurance carriers, and benefits administrators; with troubled patients caught in the crossfire.

Are Your Group Dental Benefits Helping (or Hurting) Your Employee Retention?

Mon, 10 Oct 2022 12:48:07 GMT

For obvious reasons to anyone who works in HR, dental benefits don’t usually get the same attention as medical coverage—especially when it comes to how workers perceive the value of their employee benefits. But if your group health plan offers dental benefits (or if you offer standalone dental benefits), have you considered how the quality of your dental coverage can impact employee retention—as well as your overall healthcare costs?

And if your company doesn’t offer dental coverage as part of your group health plan, you may be missing out a key attraction and retention tool. That’s especially true today as companies compete for workers in a post-COVID world.

WHY DO YOUR DENTAL BENEFITS MATTER?

There are three key reasons why offering dental coverage to your employees benefits both them and your company:

Employees want dental benefits. In a 2014 survey by the Employee Benefit Research Institute (EBRI), 67% of employees said they considered dental benefits to be very or extremely important. A more recent study by Lincoln Financial found that 82% of workers consider dental coverage “very important,” while 54% called it a “must-have.” And they’re getting more savvy about what the costs will be under group health plans.

Your competitors offer dental coverage. Employers are listening to what employees want. In their 2018 Human Resources study, the Society of Human Resources Management (SHRM) reported that 97% of employers of all sizes offered dental benefits of some kind.

Dental health is directly linked to overall health (and healthcare costs!). A dazzling smile is great, but according to the Mayo Clinic, poor oral health has been tied to cardiovascular conditions, complications during pregnancy and childbirth, and more. In addition, other health conditions, including diabetes, often reveal themselves by contributing to oral health issues.

WHY THE QUALITY OF YOUR DENTAL COVERAGE MATTERS:

There are lots of different types of dental benefit plan designs. Here’s why it’s important to choose wisely, especially this year.

Benefits must be used to be effective. When it comes to their employee benefits, HR has done a good job of encouraging workers to consider the total costs, not just premiums. Dental premiums are typically low compared to medical premiums, but major dental care can come with a hefty price tag. And if they’re forced to choose because of high out-of-pocket cost, employees will generally ignore dental care before medical care.

This SHRM article quotes studies showing that 25% of adults don’t see a dentist even once a year. The age group least likely to go twice a year is millennials, who say cost is the main reason. In addition, 40% of respondents reported delaying procedures—exams, X-rays, tests, etc.—because of their high out-of-pocket costs. If your dental coverage has low premiums but doesn’t make a real dent in employee costs, it’s not helping anybody.

COVID-19 has created a perfect storm of postponed dental care and restless workers. Many people who stayed home during the pandemic—working or not—didn’t pay a lot of attention to their oral health. According to the American Association of Endodontists, in 2020 more than 50% of U.S. adults said they put off dental visits because of COVID-19 concerns. Almost a third said they were eating more sweets, nearly a quarter said they skipped brushing in the morning, and nearly half flossed less or stopped altogether.

Couple that with the number of workers who are looking or considering looking for different jobs after the pandemic—estimated to be at least 25% or more of the workforce—and it’s easy to see how the availability and quality of an employer’s dental coverage could play an important role in improving employee retention.

MAKE SURE YOUR DENTAL BENEFITS BENEFIT YOUR EMPLOYEES.

Workers notice when you make a positive change to the employee benefits they care about. It may be time to send your dental coverage for its own checkup. We’ve created a new dental benefit package that will be a win-win BOTH for you and your employees. Plus, you can save a combined 20% on the premiums for the next three years. (Offer good until December 31, 2021.) Get started today!

What Happens if You Don’t Want to Be on Medicare?

Mon, 03 Oct 2022 12:53:08 GMT

Do you not want to be on Medicare? Why?

If you’re an American citizen, you know that you’re required to sign up for Medicare when you turn 65 years. However, what happens when you don’t sign up for Medicare? Are there penalties? Are there other insurance options?

In today’s post, we answer the question, “what happens if you don’t want to be on Medicare?”

Let’s get right into it.

IS MEDICARE MANDATORY?

If you’re 65 years and above or have a disability, you automatically become eligible for Medicare medical coverage. However, it’s not mandatory for you to enroll in Medicare.

You can decline to sign up for Medicare. However, the process is relatively complicated and could result in several negative implications, including lifelong penalties and loss of other benefits.

Keep reading to learn more

WHAT HAPPENS IF YOU DON’T SIGN UP FOR MEDICARE?

If you choose not to sign up for Medicare when you become eligible, you become liable to penalties depending on which part of Medicate you chose not to sign up for.

Failing to sign up for Medicare Part A when you become eligible, results in a 10% increase in your monthly premium for twice the number of years you didn’t enroll. So, if you wait until 67 years to sign up for Part A, you will pay the penalty until you’re 70 years.

Medicare Part B penalties last longer than Part A penalties. The Part B premium penalty increases by 10% every year you don’t sign up for Medicare. So, if you wait for one year, your premium price increases by 10% for as long as you remain enrolled. If you wait for three years, your premium price will have increased by 30% for as long as you’re enrolled.

What if you choose to decline Medicare all through? What will happen?

Well, for starters, withdrawing from Medicare results in you losing access to all other monthly benefits. If you opt-out of Medicare, you’ll no longer receive Social security or Railroad Retirement benefits.

You’ll also have to repay any amount you’ll have received from any of these two programs.

DOES HAVING EXTRA INSURANCE PROTECT ME FROM NOT SIGNING UP?

If you’re a senior citizen and still under your employer-sponsored group health insurance, or your spouse’s current employer plan, you may delay enrolling to Medicare without the risk of penalties.

You can also opt-out of Medicare if your workplace offers some sort of retiree insurance. However, some retiree insurance plans have Medicare membership as a requisite for eligibility.

But what if you choose private health insurance?

Well, at 65 years, private insurance premiums may be too high for you, and in most cases, they won’t cover all your needs. This is because most private insurance cover 80% of your medical expenses. With such private insurance companies, you may have to dig into your retirement funds to cover extra medical expenses.

WHY WOULDN’T YOU WANT MEDICARE?

Let’s be honest. Why wouldn’t you want Medicare?

If you’re like most Americans, you’ve probably been paying for it for decades. If Medicare taxes are withheld at your workplace, you automatically gain access to premium-free Medicare Part A.

You can choose to reject or sign up for Medicare Part B, which comes with a premium. For 2021, the standard monthly premium for Medicare Part B is set at $148.50. However, even with Medicare Plan B, you only get coverage for 80% of your doctor’s visits and outpatient costs. Medicare also doesn’t cover hearing aids, eye appointments, or dental fees.

For these, you may have to sign up for either private or Medicare supplemental insurance plans.

FINAL TAKEAWAYS

Whether to be on Medicare or not is a personal choice. However, it’s essential to stay prepared for the future. You wouldn’t want to spend your retirement savings on health care.

Which is why it’s vital to have health insurance coverage. If you don’t want to be on Medicare, you can choose private health insurance or another option.

Just make sure you’re insured.

The Employee Retention Tax Credit

Mon, 26 Sep 2022 13:05:45 GMT

The CARES and American Rescue Plan Acts were implemented to help the nation during the pandemic. There are a few tax credits included with the legislation.

The Employee Retention Credit (ERC). It’s a large tax break to take advantage of if you’re an eligible employer. Below you’ll find:

What is the Employee Retention Tax Credit?
Employer Eligibility
What are qualified wages?
How to claim your Employee Retention Tax Credit

1. WHAT IS THE EMPLOYEE RETENTION TAX CREDIT?

The Employee Retention Tax Credit (ERC) was initiated last year in March of 2020. It was established so employers could keep their staff on payroll and employees could avoid unemployment. Inadvertently, this made an employee rescue plan for employers.

What it actually is, is an employer tax credit applied toward the employment taxes you owe. Once approved, you can use the tax credit immediately. If the tax credit amount is more than your employment taxes, you may be eligible for a refund from the IRS. Below is the nitty gritty.

FOR 2020:

The tax credit is equal to 50% of qualified wages paid to your employees. Up to $10,000 per employee can qualify for 50% of qualified wages for the year. You can also include certain health coverage costs, with a maximum of $5000 for each full-time employee retained between March 13, 2020-December 31, 2020.

FOR 2021:

The ERC increased to 70% of qualified wages paid to your employees. Instead of the cap being $10,000 per employee for the year, it is now per calendar quarter. You can still include health coverage costs with qualified wages paid.

Maximum of $7,000 per calendar quarter for each full-time employee retained between January 1, 2021-June 30,2021.

* Subject to eligibility: 2020 & 2021

2. EMPLOYER ELIGIBILITY

FOR 2020:

Effective: March 13, 2020- December 31, 2020

You must have operated a trade or business within the dates mentioned above. Requirements:

Your business experienced a full or partial closure due government orders limiting business, travel, groups, and meetings because of COVID-19

Or you experienced a remarkable decrease in gross sales:

Decrease in sales begins on the first calendar quarter of 2020

Your gross sales are less than 50% compared to the same calendar quarter in 2019

The remarkable decrease in sales ends:

The first day of the first calendar quarter your gross sales are above 80% for the same calendar quarter in 2019

DO NOT QUALIFY: If you received a Small Business Interruption Loan under the Paycheck Protection Program. You are not eligible for the 2020 Employee Retention Credit.

FOR 2021:

Effective: January 1, 2021- June 30, 2021

You must have operated a trade or business within the dates mentioned above. Guidelines your company must fall in:

Your business experienced a full or partial closure due government orders limiting business, travel, groups, and meetings because of COVID-19

Or you experienced a remarkable decline in gross sales in a 2021 calendar quarter:

Gross sales dropped below 80% in comparison to the same calendar quarter in 2019

To use a 2020 calendar quarter for eligibility, gross sales must be below 50%

For employers that didn’t exist in 2019:

You may use the corresponding calendar quarter in 2020 to determine a decline in sales

You may also use the 1st and 2nd calendar quarters in 2020 to determine a decline in sales

Important: Employers who received a Small Business Interruption Loan under the Paycheck Protection Program can now claim the ERC for qualified wages.

*Restrictions Apply

3. WHAT ARE QUALIFIED WAGES?

Depends on the number of employees you employ. You can also include certain health care costs with qualified wages. Can only count qualified wages up to the amount an employee would have been paid for working within a 30 day period

Does not include wages for paid sick and family leave under the Families First Coronavirus Response Act.

FOR 2020:

If you employed more than 100 full-time employees in 2019

Wages paid to employees who are not providing services because of a lack in a gross sales, full business closure, or partial closure

If you employed less than 100 full-time employees in 2019:

Wages paid to employees whether they provide services or not due to a lack in gross sales, full business closure, or partial closure

Up to $10,000 per employee for the year.

FOR 2021:

If you employed more than 500 full-time employees in 2019:

Wages paid to employees who are not providing services due to a lack in gross sales, full business closure, or partial closure

If you employed less than 500 full-time employees in 2019:

Wages paid to employees whether they provide services or not due to a lack in gross sales, full business closure, or partial closure

Up to $10,000 per employee per calendar quarter.

4. HOW TO CLAIM YOUR EMPLOYEE RETENTION TAX CREDIT

Eligible employers can use their quarterly employment tax return to report the total of qualified wages with related health coverage costs. Most employers will use the Form 941. Consult your tax advisor to ensure you are using the correct forms.

The employer tax credit will be issued toward your portion of the employee’s Social Security taxes. It is a refundable tax credit. If there is any overage you may be able to request a refund. (*Subject to restrictions*)

With the expectation of claiming the ERC, you may also retain the amount of employment taxes you would have deposited:

Federal income tax withholding
Employee’s share of Social Security & Medicare taxes
Employer’s share of Social Security & Medicare for all employees
Up to the amount of the tax credit without penalty. It does not include deposits paid for paid sick and family leave.

The Employee Retention Credit has complex guidelines and regulations. Consult your tax advisor or consultant to ensure you are filing what’s right for your company.

EPLI Insurance – What It Is and When to Get It

Mon, 19 Sep 2022 13:52:36 GMT

Whether they are rooted in mismanagement or poorly-drawn office policies, liability claims alleging illegal employment practices (such as discrimination) are a rising threat to businesses of all sizes. Fortunately, though, companies can protect themselves from the financial consequences of an employee conflict by buying an EPLI policy.

WHAT IS EMPLOYMENT PRACTICES LIABILITY INSURANCE?

Employment Practices Liability Insurance (EPLI) is a policy that covers an employer’s legal defense costs – including settlements and damages – when an employment relationship ends on bad terms.

Unlike many Commercial Liability policies, which typically exclude claims involving employee-employer conflict, an EPLI policy will cover a company, its directors, and eligible employees if they are sued by an employee alleging discrimination, harassment, or wrongful termination.

WHAT DOES EMPLOYER PROTECTION INSURANCE COVER?

EPL Insurance helps cover the costs of claims alleging wrongdoing from the employer’s side during their employment relationship. The most common types of claims include:

Discrimination (whether it’s based on sex, race, age, disability, etc.)
Wrongful termination
Sexual harassment
Retaliatory claims
Unpaid internships
Illegal background checks
Failure to employ or promote

Other common claims also include:

Defamation
Invasion of privacy
Mismanagement of employee benefit plans
Wrongful infliction of emotional distress

What Does Employer Protection Insurance Exclude?

Although claim eligibility varies by state, the following claims are commonly not covered under EPLI policies:

Prior or pending claims
Fines associated with conduct that is criminal or malicious in nature
Contractual liabilities
Bodily injury
COBRA violations
Wage and hour claims
Perils covered by other insurance policies

HOW MUCH DOES EPLI COST?

The cost of an EPLI policy will vary depending on a company’s size and type, claims history, and the existence of a legally-compliant employee handbook detailing the company’s employment policies and procedures. According to Advisen, the premium price for a standard $1 million EPL insurance policy averages $4,900 a year.

Companies can also purchase additional coverage, such as third-party EPLI, to protect themselves against claims brought by vendors, clients, or other third-party members outside their organization – though this typically only covers harassment and discrimination claims.

HOW DOES EMPLOYMENT PRACTICES LIABILITY INSURANCE WORK?

EPLI is written on a claims made basis. This means that coverage is only available if the claim is made during the time period – usually a year – during which the policy is in force. So long as your policy is in force when the claim is made, it doesn’t matter if an incident happened before you bought EPLI coverage.

There are some notable differences between EPLI policies, though. For example, while the standard “claims-made” policy comes with no duty to notify, “claims-made and reported” policies require that you report the claim to the insurance company before the policy expires.

Some policies also include a ‘retroactive’ or ‘continuity’ date that limit coverage to incidents that happened after that date.

Finally, it’s important you understand how covered employees are defined in your EPLI policy – for example, some policies may exclude consultants or temporary workers.

WHEN SHOULD YOU GET EPLI COVERAGE?

Pretty much right now.

Employer’s liability claims are commonplace, expensive, and unpredictable – particularly when it comes to discrimination. That’s why every company needs EPLI to cover the costs of employee claims.

Large employees can hire excellent lawyers. However, without EPLI, the costs of liability claims could deplete their legal department’s budget. Small employers aren’t protected from employment claims either. Laws such as the Uniformed Services Employment & Reemployment Rights Act (USERRA) – which prevents veterans from discrimination – apply to businesses of any size.

Once a company reaches the 50 full time employee mark, most anti-discrimination laws – including the Civil Rights and Americans with Disabilities Act – will apply to them as well.Getting EPLI coverage adds an extra layer of protection that can cover the costs of a legal defense, as well as any settlement that your company may reach, for way less than it would cost if it weren’t there.

Furthermore, since insurers can provide sample HR policies, training, legal advice, and even pointers on things like how to throw a politically correct party, your chances of receiving claims will be drastically reduced once you buy EPLI coverage.

Employer Practices Liability Insurance offers an effective way to manage the costs of employee claims – but only if the policy is in place before the claim was made. So make sure you clear any doubt with your trusted broker before signing an EPLI, and if you don’t have one, reach out.

What Are Pre-Tax Voluntary Benefits?

Mon, 12 Sep 2022 12:42:49 GMT

Whether you’re looking for more information to offer pre-tax benefits or if you need to refresh yourself, it’s best to stay up to date with the basics.

Pre-tax benefits are beneficial for both the employee and employer. Before we discuss pre-tax deductions, we must touch on fringe benefits.

Fringe benefits are benefits or perks offered by an employer that do not fall under the obligatory core benefits like health coverage. Fringe benefits can be offered to non-employees as well (like independent contractors), and they are usually taxed.

Pre-tax benefits fall under the umbrella of fringe benefits.

But first…

PRE-TAX BENEFITS

Pre-tax benefits are deducted from the gross amount of your employee’s check before state and income taxes are deducted. The gross amount is decreased, lowering their taxable income.

An example of a pre-tax benefit would be a Federal Spending Account (FSA).

Let’s say your employee decides to enroll and they receive $1250 for their weekly gross earnings. They elect to contribute $50 a week to their FSA account. The employee’s taxable income will be $1200 each pay period.

For the year, the employee will gross $65,000. Their $2600 FSA contribution brings their annual taxable income to $62,400.

Using this pre-tax calculator, the employee would only have to pay $6,716 in taxes versus $7,288 if they didn’t contribute. This is how your employee can actually save money by opting for pre-tax benefits.

With Contributions Without Contributions

Tax Payable $6,716 Tax Payable $7,288

Effective Tax Rate 10.76% Effective Tax Rate 11.21%

The employee saves $572 in taxes for the year. They also pay less in Social Security and Medicare fees. There are many pre-tax benefit combinations and variations. This is just one possible scenario.

Employers are able to save as well. Since the employee’s gross amount is decreased, the employer pays less in employee-associated taxes. You pay less in Federal Unemployment Taxes (FUTA), Federal Insurance Contributions Act (FICA tax), and State Unemployment Insurance (SUI tax).

EXAMPLES OF PRE-TAX BENEFITS:

Commuter benefits
Federal Spending Accounts (FSA)
Health Savings Accounts (HSA)
Group Term Life Insurance
Certain health insurance plans
Dental Insurance

POST-TAX BENEFITS

Post-tax benefits are deducted from the employee’s paycheck after state and income taxes are deducted. There usually isn’t a set enrollment period, making it more flexible. You can also make changes at any time.

Examples: 401(k) contributions, Roth accounts, short term disability, long term disability, and most health insurance plans

CAN HEALTH BENEFITS BE PRE-TAXED?

Health benefits can be pre-taxed depending on your company’s insurance plan and provider. Speak with your insurance broker to find out what your current plan is and what options you have.

If you’re currently offering a high deductible health insurance plan, you can offer an HSA or FSA account to go along with it. FSAs and HSAs are always deducted as a pre-tax health benefit. Employees can use the funds from their HSA or FSA account to go toward their copays and other health-related costs.

PROS & CONS OF PRE-TAX BENEFITS

There are advantages for both sides: employees & employer. Both parties are able to pay less in taxes throughout the year. Pre-tax benefits can also increase the employee’s net income each pay period.

As an employer, you can improve employee retention and attract new talent. There are a few clarifications to keep in mind.

Pre-tax benefit costs are based on inflation and the current cost of living. They are adjusted every year depending on these factors. There is a yearly cap for pre-taxed employee benefits. Check with your benefits administrator to find out the limit for your contributions.

Employees must sign up for these benefits during the enrollment period at the beginning of the year. Changes cannot be made unless the employee experiences a qualifying event.

Qualifying Events:

Legal change in marital status
Change in employment status
Birth or loss of a dependent

For retirement plans, pre-tax deductions will help employees save money before they retire, but they will have to pay taxes on withdrawals during retirement.

On the other hand, post-tax deductions can be changed at any time during the benefit year. Employee benefit costs are taken out of the employee’s paycheck after taxes are deducted. For retirement plans, the employee will not be required to pay taxes on withdrawals during retirement.

There are many pre-tax employee benefits available for you to offer your employees. As always, consult your benefits administrator or insurance broker for your options. Your benefits administrator can also inform you of the rules and regulations of your pre-tax benefits.

Group Life Insurance: The Hottest Voluntary Benefit on The Market

Mon, 05 Sep 2022 13:10:55 GMT

Since the pandemic began last year, people have been searching for life insurance plans more than usual. In fact, Google Search traffic for “life insurance” increased by 50% since March of 2020.

Employees, young and old, were looking to enroll in life insurance plans. The Board of Labor Statistics found that 98% of employees specifically enrolled in group life insurance making it the hottest voluntary benefit on the market.

Between the financial and medical uncertainty of the pandemic, it’s no surprise why so many employees were eager to enroll. Wondering if group life insurance is the right voluntary benefit for your company?

Down below you’ll find:

What Is Group Life Insurance?
Types Of Life Insurance
The Benefits of Group Life Insurance
Why Group Life Insurance Is the Hottest Voluntary Benefit

WHAT IS GROUP LIFE INSURANCE?

Group life insurance is a voluntary benefit offered by the employer. It’s a single contract that covers an entire group of employees. As an employer, you can acquire a group life insurance policy through your insurance broker.

The insurance broker is able to sell the policy on a wholesale basis. Granting significantly lower rates to your company.

Coverage is usually between $10,000-$50,000 or one to two times the employee’s annual salary. Best to offer this group benefit as a perk rather than a benefit. You can also offer more coverage or a separate life insurance policy to supplement the group life insurance plan.

Your insurance broker can still offer added coverage at the discounted group rate.

2 MAIN TYPES OF GROUP LIFE INSURANCE

Term Life Insurance

Guarantees payment for the covered employee within a particular term or specified amount of time. Once expired, the policyholder can renew it for another term or convert it to a more permanent form of group life insurance.

Whole Life Insurance

Also known as permanent life insurance. This type of coverage can last the duration of the covered employee’s lifespan, hence the name permanent life insurance. Employees can accumulate a cash value on this type of policy.

The cash value accrual can be withdrawn or requested as a loan. Whole life insurance plans tend to offer 10-15 times more coverage as opposed to term life insurance and won’t expire after a specified time.

THE BENEFITS OF GROUP LIFE INSURANCE

Group benefits improve retention and make your company more competitive in the job market. Employees appreciate having a safety net for their children and family. Group life insurance is an appealing voluntary benefit because it gives your employees a peace of mind.

Both you and your employees benefit from group life insurance plans. Since you’re buying the policy wholesale through an insurance broker, you get access to low premium rates.

These savings are directly passed to eligible individuals within the company. In most cases, you can offer group life insurance plans for free or at little cost to employees.

Compared to individual life insurance, group life insurance is easier for employees to enroll. They can avoid the tedious underwriting process. Employees automatically enroll in the plan when they are eligible.

Underwriting Process: A process insurance companies use to calculate the potential risk to cover an individual. Usually involves a health examination for eligibility.

Group benefits are less risky for insurance companies to insure. The risk is based on the entire group or company rather than the individual. This gives your insurance broker the capability to give your company discounted premium rates.

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There’s a valuable reason why group life insurance is one of the most searched group benefits. Employees are expecting something extra from their employers.

As an employer, you can offer group life insurance as a voluntary benefit to increase your employee’s financial security. The low cost of group benefits tends to make the participation rate increase. The participation rate is higher not because of the discount alone, but the ease of enrolling.

In the event of the employee’s passing, their family can:

Still plan for their child’s educational future

Take care of daily living expenses

Pay off debts, bills, taxes, or funeral costs

Use the funds for the spouse’s or significant other’s abrupt loss of income

Something To Keep In Mind:

When you’re looking for group life insurance or thinking about offering it as a group benefit, there are a few things to keep in mind. It does not cover everything. These plans are cheaper and they only range from $10,000-$50,000 on their own.

Offer this voluntary benefit with the option to purchase more coverage if the employee chooses too. Your insurance broker will sell extra coverage at the group rate, so your employees can take advantage of this opportunity.

Providing group life insurance to your employees is essential to your benefits package. It costs you very little to give your employees some added financial security. The pandemic made people think about the “what if” and a few of them realized they weren’t prepared.

Take this as an opportunity to be there for your employees and improve your retention.

How to Deal with Overpriced Hospital Bills

Mon, 29 Aug 2022 13:56:23 GMT

Overpriced hospital bills in the United States have been a sore subject for many Americans throughout the years. According to The Commonwealth Fund, 79 million Americans struggle with medical bills or debt.

Expensive hospital bills have resulted in endless financial stresses for Americans–leading many to wonder how to deal with these bills. Fortunately, there are some steps you can take to reduce the burden of hospital bills.

This article will cover how you can educate employees on reducing the financial impacts of expensive hospital bills.

HOSPITAL BILLS IN THE UNITED STATES

Unfortunately, having health insurance isn’t the only thing you need to avoid large medical bills. An unexpected medical emergency can cost thousands for Americans with even the best health insurance coverage.

While there is no single answer to why hospital bills cost so much, there are some main claims for the high costs. The most commonly cited reason for the medical bill prices is the “administrative” costs.

U.S healthcare is a complex system that is made up of a lot of different sectors and arrangements. The cost of prescription drugs is also rising, as pharmaceutical companies expect insurance companies to pay the bill.

In the end, the average American is the one that is affected most by the healthcare system’s design. According to a study in 2020, there is an estimated $140 billion of medical debt in collections in the United States.

HR’S ROLE IN HELPING EMPLOYEES

While U.S healthcare costs are high, employees aren’t helpless in improving their situations. HR professionals can help employees reduce their overpriced hospital bills through various resources.

If you know that the employer’s healthcare coverage does not cover emergency room fees or drug costs, you can help them. Helping employees pay for expensive hospital bills will also improve retention. One of the best ways to help employees reduce costs is through education.

When you inform employees on their health insurance coverage and how to navigate the system, they will be more prepared. Giving them tips like using generic prescriptions over brand-name drugs is a minor adjustment, but it helps tremendously.

DR. JENAYA CALDRILLA’S MEDICAL BILL ADVICE

As medical bills continue to affect millions of Americans, some have taken helping others into their own hands. Dr. Jenaya Caldrilla is a (now famous through TikTok) is a physician who helps hundreds of thousands of people navigate the healthcare system.

With her experience being a physician, Jenaya has learned how the healthcare system works in the United States. She has amassed millions of views on her videos, each covering a topic about the U.S healthcare system.

One of her most popular video topics is the importance of negotiating your hospital fees after receiving a bill. Due to hospitals having no standardized fees, there is no set limit to what hospitals can charge you.

By negotiating with the collections agency the correct way, you can likely reduce the bill amount. Sometimes, the reduction in the costs can be drastic, as the hospital catches a mistake made in the charges.

Dr. Caldrilla is an influential figure in healthcare, providing hope for thousands suffering from a financial crisis. Her videos have given many the confidence to negotiate with hospitals for lower bills.

NEGOTIATING HOSPITAL BILLS

As HR representatives looking out for our employees’ best interests, Dr. Caldrilla’s method is a great tool to arm our employees with. It’s easy to share, and learning how to negotiate the price of hospital bills will have a direct impact on their lives.

There are three steps that someone should take to negotiate the price of a hospital bill, according to Dr. Jenaya Caldrilla.

These steps are:

Ask for an Itemized Bill: An itemized bill will display all of the charges relating to a bill. Call your hospital to ask for an itemized list in the mail.
Check the Bill for Accuracy: When you receive the itemized bill in the mail, look to see any changes and if the charges are accurate.
Call the Hospital Back to Discuss Options: If the bill is inaccurate, you can call the hospital to fix the mistakes. However, if the bill is accurate and you can’t pay the balance, you can speak to the billing department about better payment terms.

CONCLUSION

Overpriced hospital bills are a problem for millions of Americans with/without insurance. As HR reps, we should help employees reduce their bills, because it directly affects their lives. With this new knowledge, your employees will be happier and motivated to work effectively for the company.

How Can Startups Get Group Healthcare

Mon, 22 Aug 2022 14:26:43 GMT

Between polishing a product, attracting investors, and sticking to a budget, startup CEOs have a lot on their hands. Getting a group health plan to retain a strong employee base, as a small business, well that’s just one more straw on the camel’s back.

Don’t be discouraged, the struggle is worth it.

Fledgling companies can benefit greatly from setting up a group healthcare plan from the start. More than retention, group health plans can cut premium costs without reducing coverage, attract more highly qualified workers, come with favorable tax benefits, and even extend to workers’ family members and/or dependents.

Here is everything you should know about buying small business health insurance.

1. KNOW YOUR OBLIGATIONS: ARE YOU AN ALE?

According to the Affordable Care Act (ACA), only small employers with 50 or more full-time workers – a.k.a. Applicable Large Employers (ALE) – have a mandatory obligation to provide group health insurance to their workers.

Small employers that qualify as ALEs and offer a group health plan must cover at least 70% of their full-time employees and not cost more than 9.83% of an employee’s household income to avoid penalties.

Defining if you are an ALE is tricky, though, because it requires that you add the hours worked by both your full-time and full-time equivalent (FTE) employees. Use this easy tool to find out whether your startup qualifies as an ALE.

2. CHOOSE SMARTLY: THE RIGHT SMALL BUSINESS HEALTH INSURANCE PLAN FOR YOUR STARTUP AWAITS

Once they choose to implement employee benefits, startups can choose from a variety of small business health insurance options. To narrow your search, here are some of the best plans for small businesses:

FULLY INSURED PLANS

Traditionally, these have been the go-to solution for many small businesses. Fully insured plans require that employers pay an annual premium to the insurance company which, in turn, will take responsibility for the workers’ healthcare costs. Fully insured plans are renegotiated every year and the costs will vary depending on the number and average age of a company’s employees.

HEALTH MAINTENANCE ORGANIZATIONS (HMO) PLANS

HMO plans connect insured employees with a network of hospitals and specialists through which they can get medical services for a discount. This arrangement keeps premiums and out-of-pocket costs low as long as employees don’t go out of the plan’s network of providers.

PREFERRED PROVIDER ORGANIZATION (PPO) PLANS

Though more expensive than HMOs, PPO plans come with a bigger network of medical providers. Besides having more options, members can also receive care outside their network of preferred providers without needing a referral from their primary care physician. Even if members use a provider or service not covered by the plan, PPOs will cover a part of the expenses.

EXCLUSIVE PROVIDER ORGANIZATION (EPO) PLANS

Like HMOs, EPOs only cover services provided within the plan’s network. However, members aren’t obliged to pick a primary care physician or to get referrals to see a specialist. EPO premiums are lower than those of more comprehensive plans but come with a smaller network of providers.

POINT OF SERVICE (POS) PLANS

POS plans combine the best features of HMOs and PPOs. They are a great option for startup employers looking to give more flexibility to their workers. If a startup is located in a small town, chances are that your network of healthcare providers won’t cover all the bases.

By signing up with a POS plan, startups can give their employees the freedom to get services outside their plan networks and still have their health insurance cover part of the costs for the care they receive.

SMALL BUSINESS HEALTH OPTIONS PROGRAM (SHOP)

SHOP is an online health insurance exchange where eligible small businesses can buy health and dental coverage for their workers. SHOP allows buyers to choose between 4 different levels of coverage and pick how much of a worker’s premiums they can pay.

Although eligible employers fall in the 1-50 full-time equivalent (FTE) employees range, in some states companies with as many as 100 FTE can also apply.

3. DON’T REINVENT THE WHEEL (ON YOUR OWN). TRUST YOUR BROKER

Picking the right health insurance plan for your company can feel overwhelming – especially if you have a modest budget. Luckily though, startup CEOs can maximize their return-on-investment and ensure that their company continues to grow by investing in experience.

At Zupnick & Associates, we have the experience and knowledge you need to make your startup a magnet for young talent. Contact us today if you have any questions and let us pave the road for your success.

What To Expect In Employer-Funded Healthcare Costs Post-Pandemic

Mon, 15 Aug 2022 14:42:28 GMT

Every summer HR and benefits execs start playing the annual “I Wonder How Much Our Employer-Funded Healthcare Plan Will Cost Next Year?” guessing game. And this year, there’s heightened attention on where employer-funded healthcare costs are headed in the coming post-pandemic environment.

Bad news (but no surprise): They’re increasing.

Good news: They’re not increasing as much as in 2021. More good news: The amount spent on healthcare should return to pre-pandemic levels, with some adjustments for the “long tail” of the pandemic’s effects.

According to an annual report on healthcare costs, the U.S. medical cost trend (the projected increase in how much it costs to treat patients) will be about 6.5% in 2022. That’s down slightly from the 7% trend in 2021, but higher than it was from 2016 through 2020. (Of course, the cost of treatment is just one of a variety of factors that determines changes to your specific employer-funded healthcare insurance premiums, deductibles, copayments, coinsurance, etc.)

WHAT ARE SOME CAUSES OF RISING POST-PANDEMIC HEALTHCARE COSTS?

Deferred utilization — A lot of people put off going to the doctor during the pandemic, especially preventive care. (Employer spending on healthcare actually dropped in 2020.) But as the pandemic fades, more and more people will seek the care they deferred in addition to care for new issues.

The persistent costs of COVID-19 — Testing and vaccinations will likely continue well into 2022. A recent survey by Arizona State University and the Rockefeller Foundation found that almost 90% of U.S. employers plan to encourage or require employee vaccinations and almost 70% are already doing COVID-19 testing for their employees. In addition, booster vaccinations may be needed as variants emerge, and testing for SARS-CoV-2 (the virus that causes COVID-19) may become an annual cost each winter.

Overall health concerns, mental health issues, and substance use — All of these ticked up during the pandemic. Isolation, anxiety, poor nutrition, lack of exercise and other factors may contribute to an overall unhealthier population and increased costs for employer-funded healthcare insurance.

We’re already preparing for the next pandemic — We’ve seen what happens when we aren’t ready, and it’s not pretty. The health system is planning and already acting on improving processes, technology, staffing, and safety. It’s also investing in ways to address the inequities in healthcare, which may increase short-term costs but could result in significant long-term savings.

Investments in “digital care” — The pandemic saw a huge increase in “telemedicine” and other digital applications that streamline and improve the connection between patient and provider. Those technologies proved themselves invaluable (79% of those with employer-based insurance said they were open to using digital care options) and continued investments to provide access will likely increase utilization in 2022 and beyond.

WHAT’S HELPING TO HOLD THE LINE ON COSTS?

Sometimes it takes a pandemic to make a point. For years employers (with mixed success) have encouraged consumerism thinking with features and tools like centers of excellence, low-cost access to retail clinics, plan design innovations, navigation applications, etc.

Then, during the pandemic, out of necessity millions experienced care that they discovered was effective, but more convenient and less expensive. Now, more people are shopping around for care, often choosing alternatives to the doctor’s office or hospital when appropriate.

Emergency Departments (EDs) have become a lot less popular. Utilization of the ED, especially for non-emergency care, plummeted during the pandemic as patients became more aware of what truly constitutes an emergency. It seems unlikely that unnecessary ED visits will return to their pre-pandemic levels.

Health systems are finding new ways to provide quality care for less. Remote work, decentralizing processes, reexamining investments in real estate for administrative work, and increased reliance on automation and cloud technology are all ways that health systems are extending pandemic-driven changes to help control costs in a post-pandemic world.

As companies work to finalize their 2022 health insurance plans, it’s clear that 2022’s higher medical cost trend will likely result in some combination of increased premiums and/or adjustments to deductibles or other plan design parameters, but likely not massive hikes for either employers or members.

The U.S. healthcare system has presented a challenge to employer-funded healthcare plans for a while now. The pandemic—and now as it winds down—has taken that challenge to a completely new level. But it also has resulted in some innovative solutions, technologies and alternatives that may very well become part of the answer to holding the line on increasing healthcare costs post-pandemic—in 2022 and beyond.

How has Workplace Wellness Changed After COVID-19?

Mon, 08 Aug 2022 14:46:53 GMT

Besides ravaging the business operations of many different industries and causing a rise in unemployment rates, the COVID-19 pandemic has also forced companies to change their existing culture and protocols.

Due to lockdowns and social distancing guidelines, employers took a lot of steps to keep the workplace safe, and that has also changed the expectations of employees towards their job benefits.

Let’s examine how workplace wellness looked like before COVID-19.

WORKPLACE WELLNESS PRE-COVID-19

Before the shutdown of offices across the US due to COVID restrictions, workplace wellness programs included many perks and activities that focused on improving employees’ mental and physical health.

To design good wellness programs, extensive feedback was taken from employees by means of surveys and employee-based assessments. Employees then created a custom-made program to cater to the needs of their employees.

A well-designed workplace wellness program included on-site fitness centers, yoga classes, healthy lunch and snacks, wellness challenges, paramedical services, and smoking cessation plans.

To help their employees commute to work easily, different transit options were provided. Some companies went as far as to allow their employees to catch a quick nap while at work to help them improve their focus.

Different companies also offered some pretty cool perks that were popular among employees.

For example, PlayStation offered their employees perks like gaming areas, console discounts, vouchers, and some fun events like Happy hour, fruit Monday and game launch events at their studios.

Another company called Genentech had a campus community center, which included a health center and a rooftop garden. Their employees also had access to a visiting dentist’s office, childcare services, and concierge.

HOW COVID-19 AFFECTED WELLNESS PROGRAMS

Due to social distancing guidelines and lockdowns brought on by the COVID pandemic, employers had to shift towards virtual meetings and remote work options. With that, they also had to find unique ways to keep their employees connected and engaged.

Due to social isolation, the mental health of employees became a significant concern. According to a survey conducted by Aetna International, 74% of workers say that their poor mental health has had an impact on their productivity.

To help employees cope with increased stress and mental fatigue, employers have been offering access to telehealth services, usually through their employee assistance program.

Major health insurance providers will also cover telehealth services, enabling employers to include access to telehealth in their group health plan.

Telehealth services have been immensely popular during the pandemic. And the use of video telemedicine reached its peak in mid-2020. A 2020 Sykes telehealth survey showed that 60% of respondents are likely to continue using telemedicine services in the future due to COVID.

Apart from telehealth services, employers are also looking to offer free health screenings, access to nutrition programs, wellness challenges, and other virtual initiatives.

Since the beginning of the pandemic, a number of laws have been passed which ensure that employers support their employees in these difficult circumstances. One of these is the Families First Coronavirus Response Act, a federal law that requires employers covered under the act to provide 80 hours of paid sick leave to employees affected by the pandemic.

Employees can also get up to 12 weeks of unpaid leave under the expanded Family and Medical leave act, while it can be a paid leave if the employees are caring for their child who’s affected by COVID restrictions.

THE FUTURE OF WORKPLACE WELLNESS

Moving forward, it seems likely that mental health initiatives will become a major part of workplace wellness programs. Companies offering such incentives will undoubtedly attract talent and increase employee retention.

There may be an opportunity to customize wellness programs so that employees could choose benefits and wellness activities according to their needs.

After the rollout of the COVID vaccination program in the US, COVID vaccines may also be offered as a wellness option to keep the workplaces safe.

The COVID pandemic has caused employees great financial stress, which has a negative effect on their productivity. Employers could add some financial education opportunities in the workplace wellness program to manage and address this stress.

COVID-19 Restrictions in Workplaces Around the World

Mon, 01 Aug 2022 15:23:31 GMT

Keeping infections low during the pandemic is the goal for every business. An outbreak in the office could shut down operations, resulting in a total loss of productivity. Wherever in the world you are located, the main goal is to keep the virus from entering your workplace.

While some employees have the luxury of working remotely, many essential businesses need to stay open. These businesses have carried out strict COVID-19 policies to reduce the risk to workers.

But, how do workplaces around the world prevent the spread of the virus? Like restrictions outside of the office, each country has its own set of rules. In this article, we will be covering some of the COVID-19 preventative measures in global workplaces.

SINGAPORE

No country has enforced stricter COVID-19 workplace mandates than Singapore. From limiting occupancy numbers in the office to staggering work hours, they have gotten creative with their policies.

The foundation of COVID protection in every workplace in Singapore is the use of PPE. Employers must ensure that every person within the building is wearing a face mask. Along with wearing PPE, employers encourage their employees to wash their hands regularly and avoid touching their faces.

Because the coronavirus is highly contagious, workplaces are encouraged to limit physical interaction. When a conversation is required, there are physical barriers and spacing requirements.

In the unfortunate case that an employee is feeling unwell, employers are required to keep a strict removal plan. Employees will be sent to a clinic and must monitor their health before returning to work.

NEW ZEALAND

New Zealand has been praised for its effective response to the pandemic. The country’s businesses emphasized the importance of implementing workplace restrictions and preventative measures.

The primary strategy used by New Zealand’s employers is properly supporting their workers. Businesses must encourage workers to stay home if they are having flu-like symptoms to avoid an outbreak.

Within the workplace, employers must take the proper measures to clean work spaces and equipment. According to the Ministry of Health, employers should wipe down surfaces with a bleach cleaning agent.

With these preventative measures in place, New Zealand will continue to be an inspiration to other countries battling the virus.

ICELAND

Iceland has taken the correct precautions, leading to only 6,286 cases of COVID-19 among the country’s residents. Iceland’s businesses take a very strict approach to quarantine and contact tracing.

If an employee has tested positive, the tracing team will contact them to find out the circumstances of the incident. Then infected employees must quarantine themselves.

The quarantine will typically last 14-days but will be long enough until the infected person tests negative for the virus. Employees will also quarantine if there is any question if they are infected.

Iceland does not take any chances with potential infections and would rather be highly cautious. This has been the reason why the country has had such success with its pandemic planning.

ISRAEL

The Israeli government has made an aggressive push to get all of its citizens vaccinated. In many offices and facilitates, paramedics have set up vaccine sites to give easy access for employees to get a shot.

In the workplace, employers are offering huge incentives to employees to get vaccinated. By providing proof that they have received the vaccine,Israeli employees can get free meals, event tickets, and even cash payments.

With these incentives, there has been a faster vaccinating process for the population. It has certainly proved to be worth it for Israel.

Before the vaccine was developed, Israel required workplaces to take the temperatures of employees entering. However, many companies required all employees to work remotely, and still are at the date of this article.

PREVENTATIVE MEASURE WORK

Having stricter workplace precautions has done well for many of the countries on this list. While each country has its own set of rules it requires employers to follow. Each workplace restriction has the same fundamentals for the safety of your health.

These restrictions limit employee interactions, encourage employees to stay home when sick, and clean the offices. By having precautions in place, workplaces in these countries have kept their employees safe and reduced outbreaks.

How to Promote COVID-19 Vaccination in the Workplace

Mon, 25 Jul 2022 16:46:03 GMT

According to the CDC, more than 131 million Americans have received at least one dose of a Covid-19 vaccine. Whether they’re getting the shot at work or a government or healthcare provider center, the mass vaccinations (more than 3 million doses per day) give us reason to hope. Indeed, some experts believe that 70% of the population could be vaccinated by November of this year –which effectively means achieving herd immunity.

And yet there’s still much work to be done as almost 1 in 5 Americans said they won’t be getting the vaccine anytime soon.

Employers have the power to promote vaccine education and incentivize their workers to get the shot, but only if they do it sensibly. So read on to learn how you can promote workplace health among your staff.

CREATE POSITIVE INCENTIVES TO ENCOURAGE WORKERS’ VACCINATIONS

While most employees are open to getting vaccinated, offering rewards and recognition for getting the shot will make this a no-brainer decision for most people. Whether they’re neighborhood grocery stores or multinational giants, a rising number of companies are paying their employees to get vaccinated.

Financial rewards can take many forms, such as paid leave, cash bonuses, or retirement contributions among others.

Some companies, like McDonald’s, are offering four hours of paid time to employees who get vaccinated. Other companies, such as Florida’s Beef O’Brady’s restaurant chain, are giving gift cards to employees who get the shot.

Unlike mandatory vaccinations, incentives represent the carrot without the stick. And yet they still exist in a grey zone that might be considered discriminatory in the future. So if you’re planning to use them, make sure your legal team takes part in their design.

MAKE VACCINATIONS A PROMINENT PART OF YOUR EMPLOYEE BENEFITS PROGRAM

Although the federal government has covered the cost of the vaccines so far, providers might charge an “administration fee” when they give the shot. And considering that COVID will likely stay with us in some form or another during the coming years, making Coronavirus vaccinations part of your fringe benefits program makes total sense.

Your employees will feel more enticed to get vaccinated if they know that the costs of their COVID preventive care – which can require multiple shots – are covered by your group health plan.

Moreover, your COVID-related benefits shouldn’t stop at covering preventive care. But rather extend to include anything that could help your employees get vaccinated, such as:

Paid time off.
Riding/driving expenses.
Child care services.
Sick time – in case the vaccine has side effects.

PROMOTE VACCINE EDUCATION AMONG YOUR WORKERS

As with most social problems, the solution to our Coronavirus pains starts with education. Back in January, a worrying study showed that 60% of Americans didn’t know where or when they could get vaccinated.

Although vaccine awareness has improved since then, political, regional, and racial disparities come into play. For example, 41% of Republicans don’t plan on getting vaccinated, most rural Americans are disconnected from national health trends, and Black and Hispanic Americans remain underrepresented in vaccine clinical trials. All these factors stand in our way to achieving herd immunity.

By creating an education program that shares health information from government agencies – such as the CDC’s communication toolkit – without disrespecting your workers political and religious beliefs, you will be helping to close these gaps, speed up the pandemic’s end, ensure your workers’ efficiency, and quite possibly save their lives.

LISTEN AND ADDRESS YOUR EMPLOYEES’ CONCERNS

The rushed development and deployment of the vaccines – currently none of the three vaccines has been fully authorized by the FDA – has made a lot of people feel understandably wary of them.

Some workers may fear that the cure may be worse than the disease. You can help dispel their fears by calling attention to the extremely low rate of serious side effects – like anaphylaxis or other allergic reactions – which the vaccines have caused out of millions of doses.

You should also consider your most vulnerable employees, such as the elderly and pregnant women, and people with special circumstances. You should go out of your way whenever you can to ensure they get the preventive care they need first.

Although we have made tremendous progress so far, there’s still much to be done before gathering around the office’s water cooler feels normal and safe again.

If we’re to close this terrible chapter of our history and move forward with newly gained confidence, employers must do their part to educate and promote vaccination among their workers.

So don’t wait until tomorrow to do your part. And if you need any help promoting workplace health: please, reach out.

When to Offer Group Coverage and When to Offer HRA

Mon, 18 Jul 2022 12:25:41 GMT

Whether they’re HMOs, PPOs, or ICHRAs, the healthcare market offers you a sea of limitless options. However, when it comes to choosing an employer-based plan, there are really only two options on the table: group health insurance plans and health reimbursement arrangements (HRA).

While group health plans have traditionally been the backbone of many employers’ employee benefits programs, the flexibility of HRAs makes them an attractive asset for businesses of all sizes.

Both options come with widely different costs and eligibility requirements of their own, though. So if you’re confused about which you should choose, keep reading below to find what type of employer-based plan works best for your company.

BENEFITS OF GROUP COVERAGE

Group health plans are health insurance policies bought by employers for their workers. Although companies of all sizes can buy them, offering group health is mandatory for any business with 50 or more employees.

Group plans have many advantages over individual plans, such as:

LOW MEMBERSHIP COSTS

In most states, group plans are required to include at least 70% of a company’s eligible workers – that is, employees without another source of coverage. Having a large member pool means that both the risks of insuring and the cost of the premiums are spread around a group of individuals.

COMPREHENSIVE COVERAGE

Since group plans benefit from having a large pool of members, workers can extend coverage to their family members for an extra cost. This in turn means companies can offer more and better services to their employees without having to raise the price tag.

INCLUSIVE PRE-EXISTING CONDITION COVERAGE

Individuals typically considered ‘risky’ by individual health insurance policies (patients with chronic health conditions, senior citizens, pregnant women, etc) can get the medical services they need in a group plan.

TAX INCENTIVES

Besides giving HR an excellent recruiting tool, small businesses that offer group health plans can get compensated for paying out part of their workers’ premiums with a small business health care tax credit.

BENEFITS OF A HEALTH REIMBURSEMENT ARRANGEMENT (HRA)

Despite their many advantages, group plans aren’t perfect. Indeed, their complexity, centrally managed nature, and unpredictable costs that tend to rise every year make them an unpleasant choice for many employers.

As for employees, the one-size-fits-all approach of group plans leaves them no way of upgrading or customizing their health coverage. And here is where Health Reimbursement Arrangements come in handy.

HRAS ALLOW EMPLOYEES TO SHOP AROUND FOR THE BEST OPTIONS

Unlike group plans, HRAs have fixed annual costs and aren’t tied to a specific network of health providers. Instead, they are accounts where employers deposit tax-free money that workers can use to reimburse their health expenses.

This means that employees are free to shop around for health coverage and enroll on the individual policy of their choosing. Whether it’s paying their monthly premiums or covering out drug costs, HRAs can plug any gap not covered by a health insurance policy.

HRAS GIVE BUSINESSES MORE CONTROL OVER THEIR HEALTH BENEFITS

While a Qualified Small Employer HRA (QSEHRA) only allows a fixed allowance for employees (and their dependents), Individual Coverage HRA (ICHRA) has no allowance caps.

ICHRAs give employers the flexibility to vary the size of their allowances based on employee classes while also allowing employees to choose the option that works best for them.

BENEFITS OF INCLUDING BOTH IN YOUR EMPLOYER-BASED PLAN

Although group coverage and HRAs are separate things, the truth is that they work even better together than on their own – provided that the company is big enough to cover the costs.

Group plans, for example, offer an excellent range of services that most employees will find satisfying. Adding an HRA plan to the mix will cover any gaps left by a company’s HMO or PPO group plan.

Larger companies that have the means to offer group health coverage often pair these benefits with a group coverage HRA (GCHRA) – also known as an integrated HRA.

GCHRAs are reimbursement arrangements designed to cover out-of-pocket expenses not covered by a group health insurance policy. Besides increasing employees’ health choices, GCHRAs can minimize both group coverage premiums and deductible costs.

THE BOTTOM LINE

When it comes to deciding whether group coverage is better than HRAs, the answer is, “it depends.”

Remember that the right choice will always be the one that meets your company’s goals and budget. So make sure you talk to a trusted insurance broker before making any decision, and if you have any questions, please contact us .

What Is Group Health Insurance?

Mon, 11 Jul 2022 12:36:48 GMT

Group health insurance provides medical coverage to a group of people under a single policy. Premium costs are lower than individual health insurance plans because the risk is based on the entire group versus the individual.

It is employer insurance offered to their employees as a core benefit.

THE BACKGROUND OF GROUP HEALTH INSURANCE

In 1942, the president during World War II received the authority to stabilize wages and salaries. Wage restrictions were imposed to control wartime inflation. Unfortunately, they stopped companies and organizations from paying their employees above the set wage ceiling.

To help employers attract new employees and retain their current ones they began to offer employee benefits for the first time. Group health insurance being a core benefit in the make-up of the compensation package.

Employee benefits were considered non-inflationary. Since they weren’t paid in cash, they didn’t violate the wage restriction either.

Throughout the 1940s employee benefit packages became a normal part of employment. Group health insurance would also become a popular benefit to include in these packages.

HOW IT WORKS

Group health insurance policies are purchased by companies and organizations. It is then offered to their employees or a group of members within the company. These plans cannot be purchased individually or privately.

Employees are given the option to accept or decline coverage once they are eligible for employee benefits. Plans may be offered in tiers ranging from basic healthcare to a more robust plan with premium add-ons.

THE MOST COMMON GROUP HEALTH INSURANCE PLANS:

HMO: Health Maintenance Organizations

HMOs provide health insurance through a network of healthcare providers under the HMO contract. Premium costs are lower because patients are sent directly to the healthcare provider. HMOs have more restrictions than PPOs.

PPO: Preferred Provider Organization

Medical professionals and facilities provide medical care and services to covered individuals at reduced rates. PPOs offer greater accessibility to doctors, facilities, and services. Premium costs are higher than PPOs, but you get a more comprehensive plan.

Medical coverage can be extended to the employee’s legal spouse or children at an additional cost. The premium costs are split between the employer and the employees. Due to the risk being shared across a larger number of plan participants, premium costs are lower than plans bought individually.

Most plans do require at least a 70% participation rate to be validated.

THE BENEFITS OF GROUP HEALTH INSURANCE

Group health insurance gives insurers a better view of everyone they’re covering. This also lowers the risks for covered individuals and the cost they pay.

Not all plans are created the same. They vary depending on insurers, plan types, costs, terms, and conditions. However, you’ll always get these advantages out of group health insurance:

Low premium costs for both parties involved, employer and employee
Generally, no medical exam required
More coverage for pre-existing conditions
Tax incentives for employers

THE COST OF THESE PLANS

The cost of group health insurance is based on many factors. Down below you’ll find the average cost for 2020 reported by the Kaiser Family Foundation.

Single: $7,470 per year

Family: $21,342 per year

Both have increased by 4% since 2019. Traditionally, the employer pays 80% of the premium cost and the remaining 20% is paid by the employee.

Supplemental health plans were not factored into the above costs. Dental, vision, and prescription coverage can be added. These employee benefits are offered at low rates as well. You can also bundle these benefits into a compensation package.

HOW MANY EMPLOYEES DOES IT TAKE TO QUALIFY

Remember: Most plans require at least 70% of your employees to participate in order to be validated.

There are plans for companies with only one employee and there are plans for organizations with over a thousand employees. You have to find the group health insurance plan that fits your company size and needs.

Plans do vary by company size. Company size is divided into these three tiers:

Small size business: 1-99 employees
Medium size business: 100-2,999 employees
Large size business: 3,000 or more employees

Group health insurance is a great option for the employer and their employees. Employees who struggle to afford or get access to proper health coverage can get it through you. Premium costs are kept low so this can be made possible.

Everything You Want to Know About EASE Plans

Mon, 04 Jul 2022 12:57:58 GMT

EASE plans provide various designs that meet each employee’s needs. They include the following:

1. EASE PRIMARY

The plan provides savings for daily coverage like urgent healthcare for copays of $25 and $10 per visit, and unlimited primary healthcare. It covers all wellness benefits and mandated preventive benefits under the Affordable Care Act (ACA) without cost-sharing to offer Minimum Essential Coverage. The coverage is suitable for people who want to reduce their health coverage costs.

The following are EASE Primary plan’s costs:

Deductible: $0 for individuals and families
Out of Pocket Maximum: $0 for individuals and families
Preventive and Wellness Services: $0 Copay
Telemedicine Services: $0
Direct Primary Care (DPC): $10 Copay for a primary doctor and $25 for Urgent Healthcare
Pharmacy Benefits: $0 Copay

2. EASE ESSENTIAL

The healthcare insurance provides Minimum Essential Coverage like supplemental hospitalization benefits, primary care coverage, wellness, and preventive benefits without cost-sharing. Besides, EASE Essential offers daily coverage. Here are its payments:

Deductible: $0 for individuals and families.
Out of Pocket Maximum: $8,150 for individuals and $16,300 for families.
Preventive and Wellness Services: $0 Copay.
Primary Care Office Visit: $25 Copay for up to six visits per year.
Specialist Office Visit: $50 Copay for six visits per year.
Outpatient Services (Substance Abuse, Behavioral and Mental Health): $50 Copay for six visits per year with a Primary Care Office visit.
Pharmacy Benefits: $0 Copay for preventive generic medicine.
Supplemental Hospital Benefit: $5,000 and it is limited to $1,000 daily for 5 days.

3. EASE PREMIUM

The employer funded plan increases healthcare savings, has many benefits and its coverage resembles that of EASE Primary. It has Minimum Essential Coverage. The following are its costs:

Deductible: $0 for individuals and families.
Out of Pocket Maximum: $8,150 for individuals and $16,300 for families.
Preventive and Wellness Services: $0 Copay
Telemedicine Services: $0
Direct Primary Care (DPC): $10 Copay for a primary doctor and $25 for Urgent healthcare.
Primary Care Office Visit: $35 Copay for an existing doctor and $70 Copay for a new doctor.
Specialist Office Visit: $75 Copay for an existing doctor and $150 Copay for a new doctor.
Laboratory Service and Radiology: $50 Copay per image and panel.
CT/MRI/MRA/Pet Scan: $500 Copay for each image.
Urgent Care: $75 Copay.
Outpatient Services (Substance Abuse, Behavioral and Mental Health): $75 Copay for an existing doctor and $150 Copay for a new doctor.
Pharmacy Benefits: $0 Copay and it is limited to preventive generic medication.
Supplemental Hospital Benefit: $5,000 and it is limited to $1,000 daily for five days.

4. EASE BRONZE

Besides providing Minimum Essential Coverage, EASE Bronze protects employers from different ACA penalties if they pay it for full-time workers. Here are its payments:

Deductible: $0 for individuals and $0 for families.
Out of Pocket Maximum: $8,150 for individuals and $16,300 for families.
Preventive and Wellness Services: $0 Copay
Telemedicine Services: $0
Direct Primary Care (DPC): $10 Copay for a primary doctor and $25 for Urgent healthcare.
Primary Care Office Visit: $25 Copay for up to eight visits per year.
Specialist Office Visit: $50 Copay for three visits per year.
Laboratory Service and Radiology: $50 Copay for three visits per year.
CT/MRI/MRA/Pet Scan: $350 Copay per year.
Urgent Care: $50 Copay for two visits per year.
Outpatient Hospital/ Free Standing Facility Services and Surgery: $350 Copay for one visit per year.
Inpatient Hospitalization and Inpatient Surgery: $350 Copay for each admission. It is limited to two surgeries and five days per year.
Emergency Room Services: $350 Copay for one visit per year.
Pharmacy Benefits: $0 Copay and it is limited to preventive generic medicine.
Treatment for Chemical Abuse and Dependency: $25 Copay for outpatient daily and $250 for inpatient daily.
Home Health Care: $25 Copay for up to 10 visits per year.

Employer-based healthcare plans are important. They help organizations retain skilled personnel and offer workers exceptional health services. It is advisable to choose health plans that accountants, employee benefits specialists, tax, and ERISA attorneys have built. Some of them cover employers against fines and ACA non-compliance penalties.

Why are Some People Against Medicare for Everyone?

Mon, 27 Jun 2022 13:12:21 GMT

Medicare for all is an idea that has resulted in a serious debate with two main factions.

Some believe that introducing a socialist health plan could finally help fix the American healthcare system. However, some believe that the enactment of a single-payer health insurance system would be the final nail to the American healthcare system.

However, Medicare for all sounds like a great idea. Why then are people against this concept?

This post intends to answer this question. In today’s article, we discuss reasons why some people are against Medicare for everyone.

But first, let’s define what Medicare for everyone means.

WHAT IS MEDICARE FOR ALL?

Often associated with Vermont Senator Bernie Sanders, Medicare for all is a bill that proposes a shift from the multi-payer health care system to a single-payer.

Currently, the American healthcare system is characterized by multiple groups that pay for health care. This includes Medicare, Medicaid, Employer-sponsored group health plans, and private health insurance companies.

The enactment of a national health coverage would see the new program take up all these other groups’ roles. With Medicare for all, a single government entity would reimburse doctors and hospitals for healthcare costs.

In a sense, Medicare for all would be similar to other single-payer systems, including the Canadian Medicare, the United Kingdom’s NHS, and other European public health insurance systems.

If such a system already exists in other developed countries, why are some Americans against a single-payer system?

FOR STARTERS, THERE’S NO SPECIFIC FINANCING MECHANISM

One of the biggest arguments against Medicare for everyone lies in the financial logistics.

This is especially an important question considering some experts estimate that establishing a national health coverage system would cost the Federal government an additional $32.6 trillion.

How would such an ambitious program be funded?

One way that proponents of Medicare for all plan to do this is by introducing an additional tax for certain population groups (Under the current plan, it’s anyone with an income of $250,000 a year.)

However, increasing tax rates is an idea that doesn’t sit well with populations affected; therefore, one of the reasons why Medicare for all is so highly opposed.

On the other side, proponents argue that a socialist health plan results in more savings in the long run. According to these proponents, Medicare for all would promote savings of up to $10 trillion within the first decade due to improved administrative efficacy and better control over monopoly pricing.

OPPONENTS ARGUE THAT THE QUALITY OF HEALTH CARE WILL DEPRECIATE

Let’s be honest. The current Medicare system isn’t as effective.

For starters, it doesn’t pay for all health care costs. Beneficiaries have to either seek an additional insurance policy or pay for 20% of their health care costs out of pocket.

And that’s not all!

Thanks to the fact that Medicare has the power to negotiate for lower prices for services they pay for, some healthcare providers are starting to refuse to take Medicare patients.

To the opponents, this is a clear sign of what may happen with Medicare for everyone.

With Medicare for everyone, the government would have better bargaining power. This would result in lower medical fees and fewer incentives for doctors to provide quality care.

Proponents may however argue that countries with single-payer health systems report having healthier populations than the US. American life expectancy is lower than that of Canada and Britain. Both which have a single-payer system.

However, a longer life expectancy doesn’t necessarily mean an excellent health care system. While single-payer systems allow most of the population to access healthcare, they are characterized by long waits for treatment. An example of this is in the UK, where 25% of cancer patients don’t start treatment on time due to long waits.

Opponents of Medicare for all also argue that with the high number of people requiring medical care, the government may limit services with a low success probability.

THERE’S ALSO THE ISSUE OF LOST JOBS

As mentioned earlier, Medicare for all in its purest form would see a government entity replacing all other insurance companies. Even if private insurance companies weren’t replaced, their role would be greatly reduced.

The result?

Approximately 2 million people could lose their jobs due to private insurance companies downsizing.

MEDICARE FOR EVERYONE! GOOD OR BAD IDEA? YOU BE THE JUDGE

There you go—some of the main reasons why some people are against Medicare for everyone.

While the idea sounds great, actualizing a single-payer healthcare system for Americans may be harder than it sounds. It’s no wonder some people are so heavily against it.

However, it’s not impossible. Other developed countries have done it.

What do you think? Is Medicare for everyone a good idea or are you among those against it?

How does Medicaid differ from Medicare?

Mon, 20 Jun 2022 13:19:20 GMT

Despite being around since 1965, Medicare and Medicaid continue to trigger confusion among most Americans. While taxpayers fund both, they serve different population groups and are run by different parts of the government.

But how do you know which one applies to your needs? If you’ve been wondering this, you’re in the right place.

In today’s article, we discuss the differences between Medicaid and Medicare. By understanding this difference, you’ll be in a better position to choose the best program for your healthcare needs.

MEDICAID AND MEDICARE DEFINITIONS

Medicaid is a Federal and State program designed to provide health care coverage for people unable to afford quality health care.

Medicare is a federally sponsored program designed to provide coverage for Americans with severe disabilities, those aged 65 years or older, and those requiring dialysis.

ELIGIBILITY

One of the significant differences between Medicaid and Medicare lies in eligibility.

For Medicaid, eligibility is mainly dependent on income level. With Medicaid, your income should be at or below 133% of the Federal poverty level (approximately $14,500 for an individual and $29,700 for a family of four). Thanks to this requirement, nearly all low-income Americans are eligible for Medicaid. Qualified pregnant women, people receiving supplemental security income, and children from low-income families also qualify for Medicaid.

Medicaid also comes with a non-financial eligibility requirement that requires applicants to be US citizens and residents of the State where they receive Medicaid.

Not sure about your eligibility status? You can confirm your eligibility for Medicaid here.

Eligibility for Medicare, on the other hand, is mainly dependent on the applicant’s age. To qualify for Medicare, you need to be 65 years or above. People with disabilities and those with end-stage renal failure also qualify for Medicare, even if they aren’t 65 years old. Most people who receive any social security benefits tend to be eligible for Medicare.

COVERAGE

Since Medicaid is partly State-funded, benefits may vary from State to State. However, every Medicaid program comes with the following benefits:

Hospitalization
Family planning services
X-rays
Laboratory services
Midwife services
Nursing services
Health screening

Some states offer additional benefits, including dental services, physical therapy, prescription drug coverage, prosthetic devices, and optical care.

And that’s not all!

If you need long-term care coverage, Medicaid is the Insurance for you. This is because Medicare and most private health insurance policies don’t cover long-term care.

Medicare benefits, on the other hand, are the same everywhere in the USA. However, benefits may vary depending on which program you choose.

At the most basic is Medicare Part A, which provides cover for all hospitalization-related charges. For most employed people, Medicare Part A is premium-free, with the only payments being yearly deductibles.

Eligibility for Medicare Part A automatically qualifies you for part B, mainly covering costs associated with medical services. These include:

Disease screenings
Outpatient surgeries
Flu shots
Laboratory services
X-rays
Doctor’s visits
Wheelchairs and walkers

To get access to Medicare Part B, you’ll need to pay a premium of $148.50.

Medicare Part A and B don’t provide coverage for vision, dental, and prescription drugs. To gain access to these, you can either enroll in Medicare Part C or Medigap. Medicare part C offers the same benefits as Medicare Part A and B and includes dental and vision.

Medicare Part C is offered by private companies with Medicare approval.

If you don’t want to pay for Medicare part C but still need prescription drug coverage, you can register for Medicare Part D.

DOES EITHER MEDICARE OR MEDICAID COVER COVID-19 RELATED TREATMENTS?

Yes, both Medicare and Medicaid provide coverage for Coronavirus-related treatments.

Thanks to the CARES (Coronavirus Aid, Relief and Economic Security) Act of 2020, Medicare and Medicaid programs were expanded to cover treatment for COVID-19.

The CARES Act also resulted in Medicare adding telehealth services to its benefits.

ENROLLMENT

Another notable difference between Medicaid and Medicare is the enrollment period. For Medicare, the annual open enrollment runs between October 15 to December 15.

Medicaid enrollment, on the other hand, is all year round.

WHAT HAPPENS IF I QUALIFY FOR MEDICARE AND MEDICAID?

If you qualify for both Medicare and Medicaid (dual eligibility), you can have both. In most instances, Medicare Part A and B will cover most of the costs, Medicaid will cover drugs and services that Medicare doesn’t cover.

In certain instances, Medicaid may also pay for Part B premiums.

Is Medicare-for-all feasible to implement in the US?

Mon, 13 Jun 2022 13:28:32 GMT

‘Medicare-for-all’ has been a prevalent term since the U.S. Elections in November last year. It was widely discussed after Bernie Sanders, a Democratic presidential candidate, unveiled his healthcare plan to the public.

WHAT IS MEDICARE-FOR-ALL?

Medicare-for-all refers to a single-payer healthcare system in which healthcare costs are covered by a single-payer. This means that the healthcare expenses of everyone will be paid through federal taxes, and health coverage will be extended to every American.

After the elections were done and Joe Biden was elected as the 46th U.S. President, the implementation of Medicare-for-all became quite controversial. Both sides contributed to the discourse with opposing points.

Regardless of the side you support, the fact is that the U.S. healthcare system is struggling during the ongoing pandemic. The fragility of the healthcare system during the pandemic and the increase in unemployment rates across the country has caused Americans significant mental fatigue and stress.

Dr. Abdul El-Sayyed and Dr. Micah Johnson, authors of the book ‘Medicare for all: A Citizen’s Guide’, go as far as to say that if Medicare-for-all had been implemented, the coronavirus response of the US could have been much better.

THE ARGUMENTS FOR MEDICARE-FOR-ALL

For the people who support Medicare-for-all, the full implementation of the program will be a dream come true and solve a lot of health-related problems of the average American.

At present, the American healthcare system is riddled with complexities. Since there are multiple payers, the system is full of bureaucratic hurdles and confusion.

Each payer operates under its own rules. Most of the private health insurance plans have limited service areas and provider network restrictions. In this way, a healthcare plan becomes a hard choice for most Americans.

Right now, about 28.9 million Americans remain uninsured. For those who do have health coverage, life is still about making difficult choices about their health.

For example, the story of Rebecca Wood, who needed a root canal treatment but decided to postpone it because her daughter was taking speech therapy. Both of their treatments were not covered by their health insurance.

She ended up getting a tooth infection and had to undergo great pain and stress. In a first-world country like the United States, stories like hers are pretty standard.

The implementation of Medicare-for-all will provide health coverage to every American, regardless of their ability to pay.

It will give people some more options while choosing their physicians. Also, it will significantly bring down health spending and reduce administrative costs for doctors and hospitals.

ARGUMENTS AGAINST MEDICARE-FOR-ALL

The main argument against Medicare-for-all is an economic one. It will cost billions more dollars than the present healthcare system. Will the U.S. government be able to afford it? That’s where it becomes controversial.

The total cost of a single-payer healthcare system has been a much-debated issue. The leading proponents of Medicare-for-all, Elizabeth Warren and Bernie Sanders were asked how they would pay for it.

While Sanders did not comment, Elizabeth Warren proposed a plan.

According to Warren’s plan, there would be an ‘Employer-Medicare’ contribution to the costs of the new healthcare system. The rest of the cost would be covered by the savings brought in through changes in the system, such as the wealth tax and immigration reform.

This plan generated a lot of discussions. However, it was called ‘unrealistic’ by experts.

Regarding the exact cost of Medicare-for-all, there is no single figure. There are a lot of estimates. For example, one of the estimates claims that it will cost about $40 trillion over ten years.

The current U.S. President, Joe Biden, disagrees with the plan. He says it will not be feasible and will cause a rise in taxes on the middle class.

Biden’s healthcare plan is about improving and expanding the Affordable Care Act, redefining affordable healthcare for families, introducing tax credits changes, and adding a public option in the health insurance marketplaces.

Will Medicare-for-all ever become a reality? Given that the United States’ polarization over this issue is increasing, it’s hard to say. However, it’s plausible to say that we may see an option closer to Medicare-for-all becoming a reality soon.

Who Is Eligible for SSI (Supplemental Security Income)?

Mon, 06 Jun 2022 13:33:45 GMT

In 1972, the Supplemental Security Income (SSI) program was created to aid people who are aged, blind or disabled, have little means of income, and can’t support themselves. SSI is dispersed through cash handouts to people who fulfill its criteria. It may also include food stamps and medical benefits through Medicaid.

This program is different from Social Security Benefits and is funded by the US Treasury’s general funds and administered by the Social Security Administration. While Social Security Benefits recipients get medical coverage through Medicare, SSI recipients get it through Medicaid.

In 2021, the standard payment for SSI is $794 a month for individuals and $1,191 for a couple.

All of the States except Arizona, Mississippi, North Dakota, West Virginia, and the Northern Mariana Island increase the federal SSI by an additional payment.

SSI has been pretty effective in reducing the poverty rate of individuals and their family members. A 2010 study found that after receiving SSI payments, the poverty rate of families was 43%. This would have been as high as 65% without SSI payment.

ELIGIBILITY CRITERIA FOR SUPPLEMENTAL SECURITY INCOME

To find out if you are eligible for SSI, you can use BEST, a U.S. government tool where you can fill in a questionnaire to see if you qualify. The eligibility criteria for SSI are quite strict. To qualify, you must be either:

You are 65 years or older: One of the SSI program’s main requirements is to be at least sixty-five years of age. If you are younger than 65, you may be eligible to receive SSI payments and Medicare coverage if the Social Security Administration deems that you have a disability.

You are blind: Besides meeting the age requirements, you may also qualify for SSI payment if you are partially or fully blind, according to the definition of Social Security Administration.

According to their definition, you are considered blind if:

With the use of a corrective lens, you have a general visual acuity for a distance equal to or less than 20/200 with your better eye.
The widest diameter of the visual field in your better eye subtends to an angle of no more than 20 degrees.
If you are not considered blind according to this definition but still have some visual impairment, you may still be eligible due to having a disability.

You have a disability: An adult is considered to have a disability if he or she has a medically determinable mental or physical impairment that prevents him or her from doing any gainful activity continuously for a year and if the mental or physical impairment can lead to death.

According to the SSA, a child is considered disabled if he or she has a medically determinable mental or physical impairment that is marked, severe, and prevents him/her from functioning normally continuously for a year and It is expected to lead to death.

You are a Resident of the United States: To qualify for SSI payments, you must be a U.S. citizen or lawful resident. Also, you must reside in one of the 50 states, the Northern Mariana Islands, or the District of Columbia. You may also be eligible to receive SSI payments if you are a non-citizen who is a qualified alien according to the seven categories of the Department of Homeland Security and meets the SSA requirements for qualified aliens.

You have limited income and resources: To be eligible for SSI, your total income and assets must be under the limits set by the SSA, and your monthly income cannot exceed the total amount of SSI payment. For an individual, the total value of countable assets should not exceed $2000, while for a couple, it should not exceed $3000. Some examples of countable assets are:

Savings Bonds and Stocks
Bank Accounts
Gems and Collectibles
Land that you don’t live on
Anything that can be sold for cash

If you are not certain if you qualify for SSI payments, filling out the BEST questionnaire will help you to decide. If you have recently lost your job due to the COVID-19 pandemic, then applying for SSI may be the best option for you. You can start by downloading this application form.

Is There a Service to Outsource Employee Benefits?

Mon, 30 May 2022 13:38:49 GMT

Although employee benefits were already a big issue before COVID, the pandemic has skyrocketed their importance. Indeed, offering a benefits package is an easy way to attract and retain talent. Managing benefits, unfortunately, is a whole different story.

With so many responsibilities to handle, it’s not easy for HR departments to run their fringe benefits programs effectively without putting other critical tasks – such as recruitment and payroll processing – on the back burner.

Fortunately, there is a more cost-efficient alternative than taking the do-it-yourself route. The solution is to outsource your benefits management to professional administrators.

WHICH COMPANIES SHOULD OUTSOURCE THEIR EMPLOYEE BENEFITS?

Outsourcing benefits management can help companies of all sizes. It’s particularly useful for small businesses that lack the staff and deep pockets needed to manage a benefits program independently.

Without the trouble and risks that come with managing their employee perks, small businesses can focus their HR department’s energy towards recruiting top talent, meeting performance goals, and building a solid corporate culture that both their workers and clients will admire.

WHY ARE COMPANIES USING OUTSOURCED MANAGEMENT SERVICES?

Outsourcing benefits management has many advantages – particularly for smaller businesses. Some of the reasons why businesses outsource their benefits include:

They lack the expertise: Managing employee benefits isn’t as simple as crunching numbers and paying the bills. In fact, just keeping pace with the constantly evolving tax and labor regulations is enough to keep many administrators busy. While most benefits are voluntary, failure to comply with regulations can cost your company a hefty fine and any tax benefit you have enjoyed until then.

It saves time and money: Insurance brokers have the know-how and business ties you need to get the best deals for your employees. Since brokers are knee-deep in the industry, they are in an excellent position to research and negotiate the most advantageous deals with both carriers and health providers.

They want to streamline their processes. Small companies don’t have the manpower needed to sign-up and update their employee benefits during the open enrollment period. Benefits managers, on the other hand, can use web-based tools and customized videos to simplify your open enrollment period.

Though so far we have talked about the benefits of benefits management, we haven’t yet addressed the elephant in the room.

MOST EMPLOYEE BENEFITS ARE OUTSOURCED BY DEFAULT

Although many companies specialize in managing benefits, the idea of outsourcing your benefits administration isn’t as new as it sounds. Indeed, the truth is that health insurance is rarely an internally owned and operated service. Take group health plans for example.

Companies providing employer-sponsored managed care plans often rely on carriers and third-party administrators to fund and manage them.

With these plans, employees get medical services from either an HMO or a PPO for a discounted price. But rather than paying for their care and then billing their plan’s carrier – as the old fee-for-service plans do – managed plans are paid in advance.

This means that any bills generated by a company’s employees are processed by the HMO or PPO, so the company’s HR department doesn’t have to deal with heaps of paperwork on their own.

The popularity of outsourcing isn’t limited to fully insured group health plans. Even companies providing self-insured benefits buy stop-loss insurance to protect themselves against unexpected costs. They also outsource much of their paperwork while they take care of paying the claims.

HIRE EXPERT EMPLOYEE BENEFITS MANAGEMENT SERVICES TODAY

Congratulations if your HR Department made it this far on its own. However, just because your staff has somehow managed to struggle through doesn’t mean it’s the best way to go forward – not when the best benefits experts are just a phone call away.

At Zupnick & Associates, we have a solution to your HR’s benefits’ pains – one that takes the never-ending pencil-pushing work of managing your benefits off their hands.

Whether it’s streamlining your benefits education or handling the paperwork and billing, our staff has the skills and resources you need to design, implement, and manage your employee perks on your behalf.

So don’t go another day wasting your valuable HR resources. Instead, let us administer your employee benefits with complete transparency while you focus on meeting your business goals and improving your bottom line.

What Three More Months of Open Enrollment Means for Uninsured Americans

Sun, 22 May 2022 21:43:22 GMT

On January 28, President Joe Biden announced a special open enrollment period from February 15 to May 15. During these three months, uninsured individuals and families can register on the federal marketplace.

This measure comes at a critical time. Although the vaccines started rolling out in December of last year, the number of cases is still extremely high.

To make matters worse, millions of citizens have lost their job-based health insurance and a further 11 million Americans could lose their unemployment benefits in the coming weeks.

Fortunately, though, the reopening of the federal health marketplace will help protect American workers while we recover from the economic fallout caused by the pandemic.

ALMOST 30 MILLION UNINSURED AMERICANS CAN SIGN UP FOR MEDICAL CARE

According to a recent report, more than 30 million non-elderly Americans have no health insurance. However, the actual number could be higher as COVID-19 has left many workers without their job-based insurance.

Although the unemployment rate has halved since April of last year, at 6.7% it’s still twice that of February 2020. Reopening the marketplace now means that workers who changed jobs, got furloughed, or were laid off have a new deadline to buy health insurance.

Under normal conditions, only eligible people – like those who got married or lost employment-based insurance – can qualify for a special enrollment period. However, this special enrollment period is open to any citizen who could normally buy coverage in the federal exchange.

Uninsured citizens can enroll in a new plan regardless of how long they’ve gone without insurance or whether they have the documentation to prove that they lost job-based coverage.

THIS SPECIAL ENROLLMENT PERIOD WIDENS THE WINDOW OF OPPORTUNITY FOR EVERYBODY

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GOOD NEWS FOR COBRA PARTICIPANTS AS WELL

According to recent data, 49% of Americans (156,199,800) have employer-sponsored health insurance. However, the pandemic has made many unemployed workers dependent on their expensive COBRA benefits.

Although employers cover most of the costs of a group health plan – an average of 82% for individuals and 71% for families – COBRA participants must pay all the costs and an additional 2% fee out of their own pockets.

Fortunately, though, the special enrollment period also gives unemployed workers on COBRA benefits a chance to sign-up for a cheaper alternative.

Not only do marketplace plans cost less than COBRA, but most people usually qualify for government subsidies that they can use to cover their premiums. So while marketplace plans aren’t necessarily cheap, they are a much less expensive alternative to staying on COBRA benefits.

HR PLAYS A CRITICAL ROLE IN SPREADING AWARENESS

While the re-opening of the marketplace is good news for everybody, not everyone can hear it. According to a study by MetLife, some 3 out of 10 Americans don’t know what the open enrollment period is.

Indeed, many workers aren’t aware of the special enrollment period’s deadlines. To make matters worse, the dates and length of the period can vary for people who live in states that operate their own exchanges – like Idaho, for example, where the window of opportunity will only last one month (March 1-31).

Although Biden has launched a $50 million advertising campaign to spread awareness, HR managers are the ones best positioned to educate their employees about the special enrollment period.

Signing up in the marketplace is complex. But with HR, your staff can understand things like what their annual income is and whether they are eligible for a subsidy.

So, let’s all do our best to make this special enrollment period a success!

Is it Worth Having an Employee Assistance Program?

Mon, 16 May 2022 12:36:14 GMT

An Employee Assistance Program (EAP) is a wellness program designed to help employees deal with personal or professional problems that may affect their work performance.

EAPs were first started in the 1930s to deal with occupational alcoholism when drinking on the job was on the rise and found to affect engagement at work. EAPs have become pretty popular nowadays, as a survey held in 2019 found that 79% of employers offered an EAP.

A good employee assistance program’s critical components are 24/7 counseling by licensed and professional counselors, crisis intervention, referral support, follow-up, and substance abuse experts’ availability as drug and alcohol abuse are the most prevalent among EAP cases.

Confidentiality, open communication, and education of employees about their benefits are also necessary for your employee assistance program’s success. Your employees should feel comfortable coming up to your EAP counselors about their problems.

The ongoing pandemic has had an adverse effect on the mental health of employees. Even before the pandemic, investing in your employees made good financial sense.

However, today with 84% of employees concerned about their mental health, offering an EAP post-COVID as part of your employee benefits program can positively affect your employee performance.

Following are some benefits of a well-designed Employee Assistance Program:

INCREASED OVERALL PRODUCTIVITY

We are living in unprecedented times. As the pandemic rages on, many people have lost their lives and livelihood. During this difficult situation, many employees are stressed due to personal, financial, and professional issues.

According to a study, 83% of professionals experience stress at their jobs.

Constant stress and worry can cause your employees to lose focus and motivation at work, which can harm your business.

With a 24/7 counseling service as part of your EAP, your employees won’t only have someone to share their life problems with, but they will also work with the counselor to find ways to manage their stress and become more productive at work.

REDUCED ABSENTEEISM

Dealing with absenteeism while running a business can be a difficult task. When key employees miss work due to physical and mental illness, business operations’ smooth running can get affected.

According to a CDC Foundation report, American employers lose about $225.8 billion every year from productivity losses due to absenteeism. Another study found that employees suffering from mental illnesses such as depression cost employers $44 billion of lost productive time.

A well-designed EAP can help your employees with counseling and guidance, and advice on family issues such as child care and legal and financial matters, resulting in lower stress levels and absenteeism.

A study found out that absenteeism was 46% lower in people who participated in EAPs.

LOWER INSURANCE COSTS IN THE LONG RUN

Designing and implementing an EAP can cost money. However, if you as an employer are concerned about your company’s declining bottom line due to rising healthcare costs, a well-designed EAP can improve it.

An EAP can provide services to your employees, which may help them tackle minor personal and professional issues that can become significant stressors in the long run. This can positively impact the health of your employees.

With a healthy workforce and fewer employees opting for expensive medical procedures and health insurance, you will save a good amount of money in insurance premium costs.

ATTRACT AND RETAIN TOP TALENT

Due to present circumstances, offering an EAP as part of your employee benefits program can be incredibly attractive to potential employees.

The young talent is eager to join a company that offers EAP, and it can also help retain employees that are already working in your organization.

An Employee Assistance Program can be a great representative of your company values and highlight the fact that you as an employer care about your employees’ mental health, as a study found that 86% of employees believe that a company should support the mental health of their employees.

LESS BURDEN ON MANAGERS

Your managers may have excellent managerial skills; however, if an employee going through a trauma comes up to them, they won’t be able to help and support him.

An EAP can be a great resource for your managers as they would refer the troubled employee to professional and trained counselors, which would lessen the burden on them.

Why Do Most Businesses Only Hire Part-Time Employees?

Mon, 09 May 2022 12:43:30 GMT

By definition, a part-time employee is someone who works fewer hours than a full-time employee. However, there is no one valid definition of a full-time employee; it varies from one employer to another.

A standard full-time work week in the US consists of 40 hours. Some employers also consider it full-time when their employee works for less than 34 hours a week. So, any employee who works less than their employer’s full-time hours is regarded as a part-time employee.

According to the statistics, there were 20.13 million part-time employees in the US in 1990. This number rose to 24.61 million in 2020.

Data released by the US Bureau of Labour Statistics showed that the number of people working part-time for economic reasons increased during and post COVID. Most people who worked part-time had lost their jobs due to the pandemic or got their hours reduced due to business conditions.

A USC study has projected that the US economy will lose more than $3 trillion due to business closures during the pandemic. Running a company during such an unprecedented time and ensuring your business’s survival can be a hectic task.

Most employers concerned with their company’s bottom line look towards hiring part-time employees to save on payroll costs and employee benefits.

PART-TIME EMPLOYMENT & BENEFITS

Since part-time employment is used as a strategy to lower business costs, some businesses offer no benefits at all.

The majority of businesses who opt to provide benefits provide low-cost benefits like sick days, paid vacation, tickets to entertainment events, and telecommuting options. A study shows that benefits make up only 16.4% of part-time worker’s compensation.

Legally, businesses are required to offer some kind of benefits to part-time employees.

Under the Affordable Care Act (ACA), employers should offer health insurance to employees working at least 30 hours a week. This is significantly more important during the present time since a pandemic is going, and the US healthcare system is in shambles.

According to Employee Retirement Income Security Act (ERISA), if a company offers a retirement benefits program, and an employee has worked 1000 hours for the company, the employee is eligible to participate in that program.

The employees who are 21 years or older and have worked for at least 500 service hours every year for three consecutive years are also eligible to make elective deferrals to 401(k) plans under the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.

Other Federal Acts such as the Service Contract Act (SCA), Davis Bacon and Related Acts (DBA) and Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors require contractors to provide fringe benefits to part-time employees.

Apart from legal provisions, offering benefits to your part-time employees can be a good reflection of your business values since most of the part-time workers work under extreme conditions. It will also help you attract and retain top talent in your industry.

Some of the benefits that you can offer under your Employee Assistance Program (EAP) are unemployment benefits, health insurance, health and wellness stipends, counselling services and financial consultancy services.

Some other reasons for businesses hiring part-time employees are:

To Hire Professional People On a Limited Budget. Startups and small businesses have small budgets, and they need an efficient workforce for their success. Through part-time employment, they are able to hire professional people who provide high-quality work while working for fewer hours.

An experienced part-time employee will definitely be able to accomplish more than an inexperienced full-time employee and will also cost less.

To Check If The Employee is Right Fit For Them. Part-time employment is a great opportunity for the employee to get to know company policies, culture and whether they get along with their co-workers well.

The company will also be able to gauge the interests and abilities of the employee and whether moving the employee towards full-time employment is worth it or not.

To Have a Diverse Workforce. A diverse workforce is a valuable point on the company profile. It not only shows the client that the company values diversity and inclusivity but also results in increased productivity and creativity.

Bringing in employees from different backgrounds can lead to better decision making by analysing different perspectives.

What Does Medicare-For-All Mean for Insurance Companies?

Mon, 02 May 2022 12:52:12 GMT

Medicare for All is a term that evokes a wide range of emotions: longing, among its supporters; confusion, among most of the people; and sheer terror, among private insurance companies.

And why wouldn’t it? After all, Bernie Sanders’ proposal never hid his intentions of doing away with privatized healthcare altogether.

Nobody can deny that implementing Medicare for All would bring sweeping changes to the industry. However, what would those changes look like? How much would they cost? And could private insurance companies repurpose their services to meet the new reality?

THE BASICS OF MEDICARE FOR ALL

The idea behind Medicare for All is simple: instead of having the freedom to choose between Medicare and private health insurance, citizens would receive comprehensive health services from the government.

Medicare for All would provide a generous amount of medical services including:

Inpatient services.
Ambulatory patient services.
Primary care.
Prescription drugs.
Mental health services.
Laboratory tests and screenings.
Comprehensive reproductive, maternity, and pediatric services.

Medicare for All isn’t just one plan, though, but an umbrella term that covers different proposals – with Sanders’ being the most widely accepted.

Some proposals seek to create a single-payer system that still leaves plenty of room for private insurance companies – like in Canada. The more radical bills, on the other hand, seek to sideline or outright eliminate the healthcare insurance industry.

Despite the differences, all proposals agree on having a lifetime enrollment, no premiums, and being fully state-financed.

HOW MEDICARE FOR ALL WOULD AFFECT PRIVATE INSURANCE COMPANIES

If Medicare for All was implemented tomorrow, its effects would be far-reaching. Though the plan wouldn’t touch healthcare providers, it would effectively nationalize the healthcare insurance industry.

Healthcare insurance is a $1.2 trillion industry that employs millions of Americans. Nationalizing it would leave as many as 2 million administrators, medical billers, coders, and claims negotiators out of work.

These jobs – which are essential in a free market economy – would become ‘superfluous’ in a government-controlled system.

Moreover, the passing of Medicare for All would be especially damaging for insurance hubs – such as Hartford, Connecticut; Des Moines, Iowa; and Pittsburg, Pennsylvania – where carriers fuel the local economy.

As for the insurance companies themselves, the effects would vary by size. Experts believe that big carriers would most likely survive.

Although their stocks’ prices will suffer in the short run, their size, diverse portfolios, and vertical integration – many large insurers also own hospitals – mean they’ll rebound eventually.

The hardest hit will be the smaller companies, as Section 107 of the Medicare for All bill would prohibit private insurance companies from selling services already covered under the act.

THE ‘COSMETIC INSURANCE’ ARGUMENT

When questioned about the future of workers in the insurance business, many politicians supporting the bill will point out that private companies will still be able to sell supplemental coverage.

Indeed, Bernie Sanders was the first to suggest cosmetic surgery insurance as an alternative source of income for insurance companies. However, as one critic pointed out, the market for such services would be insignificant when compared to the medical insurance industry’s $1.2 trillion market value.

Medicare for All would be so comprehensive that most carriers would be fighting for whatever scraps, if any, are left on the table. Of course, everything will depend on if Biden passes the bill or implements his own healthcare plan.

HOW LIKELY IS JOE BIDEN TO PASS MEDICARE FOR ALL?

Though Biden is a staunch supporter of public healthcare, it’s unlikely that he’ll support Medicare for All. In March of last year, he criticized the plan’s price tag and suggested he might veto it in the future.

Instead of universal health coverage, Biden favors injecting more federal subsidies into the state exchanges to overhaul the current system. This ‘Public Option’ would be another alternative to Medicare, but possibly with lower premiums and higher levels of coverage.

Besides the Public Option, Biden also plans to expand Medicare enrollment by lowering the eligible age from 65 to 60 in the future.

So while Biden won’t pass Sanders’ sweeping reforms, his plan could gradually give us something resembling Canada’s and Britain’s public-private healthcare system.

How to get private health insurance after the age of 65

Mon, 25 Apr 2022 12:57:43 GMT

Suppose you are a senior US citizen and have turned 65, regardless of whether you’re working or not. In that case, you can get enrolled in Medicare, a federal health insurance program for older, low-income people and people with certain medical conditions.

For people who are still working after 65, enrollment in Medicare is not mandatory if they are covered under their employer’s group health plan and if their employer has twenty or more employees.

Still, it is advisable to get enrolled in Medicare Part A at least, as it won’t cost you anything, and that way, Medicare will become your secondary insurer.

However, by doing so, you won’t be able to make contributions to your Health Savings Account if your employer provides it.

If you are over 65 and retired and don’t have insurance through your spouse’s employer, you may want to get private insurance since it has a lot of benefits over Medicare.

For that, your options are Medicare Advantage Plans and Medigap. You can get either of these plans in addition to Medicare.

If you are eligible for Medicare and have not signed up, you can also get private insurance from an Insurance Marketplace. A 2018 Census found out that about 64% of people in the US have some kind of private insurance.

Let’s discuss whether getting private health insurance is worth it or not.

PROS OF GETTING PRIVATE HEALTH INSURANCE

Dental and Vision Coverage. Original Medicare plan does not cover dental and vision care, and neglecting the care can prove to be a costly mistake for you. If you choose to get Medicare Advantage Plan in addition to Original Medicare, your routine dental and vision care will be covered.

Out-of-Pocket Costs May be Covered. With Original Medicare, the out-of-pocket costs such as deductibles and copays can quickly add up and be quite expensive. A Medigap plan will cover your out-of-pocket expenses, except for Part D (prescription drugs coverage plan).

No Network Provider Restrictions. A Medigap Insurance plan can be used with any provider that accepts Medicare; you don’t need prior authorization to use it.

CONS OF GETTING PRIVATE HEALTH INSURANCE

High Costs. Having a high cost is the most significant disadvantage of a private health insurance plan. Although the premium costs may be low, you can end up paying a lot of money for other expenses. For example, this article gives an estimate of costs associated with the health insurance plan provided by a private company.

Limited Service Areas. Medicare Advantage Plans do not provide coverage all over the country; these plans only cover some limited and specific regions. To be considered eligible for these plans, you must live in their covered region for at least six months a year.

Pre-Existing Conditions are not covered. Any medical condition you had before starting a new insurance plan is considered a pre-existing condition.

Some of the insurance plans won’t provide coverage if you have pre-existing conditions such as heart disease, diabetes, lung or kidney disease, etc.

While choosing an insurance plan, you should keep your financial resources, health condition, and your daily lifestyle in mind.

This article goes into great detail and compares the best health insurance plans available for seniors. The Pros and Cons of insurance plans by UnitedHealthcare, Humana, Golden Rule Insurance Company, and Cigna are discussed.

If you have any confusion about making a choice, you can consult an insurance broker to help you select an insurance plan that completely fits your needs.

Some good questions to ask your broker before selecting a plan are:

What is the total amount of money to pay every month?
Does this plan have any provider network restrictions?
Does this plan offer any extra benefits?
Are prescription drugs covered?
What kind of emergency cover is covered?
Is there a waiting period in this plan that will affect my current care?
Does this plan cover routine examinations?

At Zupnick & Associates, we can help you choose an insurance plan that takes care of all of your health needs. Our experienced insurance experts help you save money on an insurance plan and travel so you can buy an insurance plan sitting in the comfort of your own home.

We have over a decade of experience and hundreds of satisfied clients.

Call us at 718-534-1194 now!

What Job Benefits Will Employees of the Future Have?

Mon, 18 Apr 2022 14:11:32 GMT

The ongoing pandemic has disrupted the world in many different ways. To date, there are more than 26 million cases in the US, and over 400K people have passed away due to the virus. The fragile US healthcare system has also been blamed for this situation.

Due to the surge of cases, the US economy has taken a hit. Lockdowns across the country have forced many businesses to shut down. Many industries have gone through changes; some are temporary; however, many of these changes seem to be permanent changes.

During these times, the perception of employees towards job benefits has also changed. Employees no longer consider paid time off, insurance, and retirement benefits to be the only attractive features of a good employee benefits program.

Present circumstances have also encouraged employees to be more interested and aware of their job benefits.

According to a research report by Voya, 79% of the millennials want their employer to provide them with more information about their benefits options outside the open enrolment period.

Since the employee benefits program is a useful tool for keeping workers motivated, companies have also followed suit and have improved their employee benefits program during the pandemic.

Benefits such as increased support for workers who are also caregivers, enhancement in childcare support, stipends for a home office, access to telemedicine, work flexibility, and new wellness initiatives were added.

Out of all the benefits that companies started offering during COVID, the following benefits were most well-received by employees and are expected to stay permanent:

REMOTE WORK OPPORTUNITY

Even before the pandemic started and COVID cases increased, remote work had some appeal among employees across all industries. According to a survey, 17% of US workers used to work from home five days a week before the pandemic.

After COVID cases started increasing in large numbers, lockdowns were imposed all across the US, and remote work became necessary to keep businesses running. The number of people working from home increased to 44% during this period.

Due to increased flexibility, most people working from home do not want to go back to regular working schedules once the pandemic is over. A survey found that moving forward, 72% of the workers want a hybrid remote-office model.

The biggest concern about remote working was whether employees would maintain a work-life balance and efficiently fulfill their work responsibilities.

However, a study found that working remotely did not have a negative impact on the productivity of employees.

IMPROVED HEALTHCARE COVERAGE

The public health emergency of COVID has forced companies to rethink and adjust their health insurance policies according to their employees’ changing health needs.

In the past year, the health spending of employees was far more than usual due to COVID. A report by Mercer Marsh Benefits showed that insurers expect an increase of 68% in medical claims this year.

The COVID-19 pandemic has had a negative effect on the mental health of employees. Factors like increased stress and anxiety, social isolation, financial insecurity, and job uncertainty have contributed to employees’ worsening mental health.

To help employees cope with mental health problems, employers have added facilities like access to telemedicine and virtual mental health counseling in their employee health coverage plans and have allowed flexible work hours to help those with child or elder-care responsibilities.

During the pandemic, Insurance providers also stepped up and introduced measures like waiving cost-sharing for COVID, extending cost-sharing waivers for various services, and played a significant part in the promotion of social distancing and anti-COVID measures.

A WELL-DESIGNED WELLNESS PROGRAM

Employee wellness programs during the pandemic can no longer include gym memberships, smoking cessation programs, yoga classes, transit support, paramedical services, and free lunches.

Due to lockdowns and social distancing measures, these activities are not possible. That is why most companies have moved these services online and have introduced more options to provide virtual mental and physical health care.

While redesigning employee wellness plans according to the present needs of employees, companies should focus on improving their employee assistance programs and should communicate effectively about utilizing them.

Some great wellness perks to add to your EAP are virtual wellness challenges, telehealth sessions with fitness coaches and dieticians, and online community events that provide engagement and socialization opportunities for employees.

How Do Medicare Advantage Plans Work?

Mon, 11 Apr 2022 17:56:37 GMT

Medicare Advantage Plans or Part C are health insurance plans offered by private health insurance companies and are approved by Medicare. These plans include the benefits offered by Part A (hospital visits), Part B (doctor visits and outpatient services) and may also include Part D (prescription drug costs).

These plans may include coverage of issues which are not covered under Part A and B such as dental and vision care, fitness memberships and hearing aids etc.

The following types of Advantage Plans are offered:

Health Maintenance Organization (HMO)
Preferred Provider Organization (PPO)
Private Fee for Service Plan (PFFS)
Special Needs Plan (SNP)
HMO Point-of-service Plans
Medical Savings Account (MSA)

To enroll in Part C, you have to be enrolled in both Part A and Part B. Some of the leading providers of Advantage Plans are Highmark, Kaiser Foundation, Humana and UnitedHealthcare.

Introduced in 2003, Advantage Plans have become the preferred choice over Original Medicare for many people. According to a survey, 35% of the people with Medicare choose Advantage Plans.

GROUP MEDICARE ADVANTAGE PLANS

Group Medicare Advantage Plans or Employer Group Waiver Plans (EGWP) are health insurance plans offered by the employer to their retirees as part of their employee benefits program.

According to a survey, nearly 76% of EGWPs are PPO plans. EGWP cover the following parts of Medicare:

Part A (which covers hospital care and other hospital costs)
Part B (which covers doctor visits and emergency care costs)
Part D (which covers the most cost for generic medicines and some cost for name-brand medicines)

These plans are managed by private insurers handling your retirees’ Medicare advantages. EGWP offers even more benefits than advantage plans and provides low out-of-pocket costs, health education, and other benefits such as:

Seamless Transition from an Active to a Retiree. As an employer, you can adjust the active employee benefits according to the requirements of Medicare easily. In this way, you can make sure low out-of-pocket costs and other retirement benefits remain the same.

Managing Drug Spending and Other Costs. While designing an EGWP, you can control drug spending by your retired employees so that it causes less disruption to them and ensures you receive your entitled government subsidies.

Safety of Your Retirees. Programs such as Advanced Opioid Management ensure that your retirees remain safe from slipping into harmful practices such as opioid drug addictions due to lack of sufficient medical coverage.

When a retiree has coverage under both Medicare and EGWP, the costs are paid by the EGWP provider first, and then the remaining costs are paid by Medicare. To understand how Medicare works with employer coverage, read this article.

QUALIFYING FACTORS IN EMPLOYEES

If your employee is eligible for Medicare Part A, Part B and Part C, he/she will qualify for Group Medicare Advantage Plan. To be eligible for Medicare, your employee must:

1) Be a US citizen or permanent resident for the last five years.

2) Have received Social Security benefits or Railroad Retirement Benefits.

3) Be over the age of 65.

Employees who are younger than 65 may still be eligible for Medicare if:

They are entitled to Social Security Disability for more than twenty-four months.
They receive a Railroad Retirement Board Pension.
They are or had been diagnosed with amyotrophic lateral sclerosis (ALS) disease.
They have been diagnosed with end-stage renal disease and require dialysis.

BENEFITS OF MEDICARE ADVANTAGE PLANS OVER ORIGINAL MEDICARE

Choosing Medicare Advantage Plans over Original Medicare has the following benefits:

Advantage Plans Cost Less. When you enroll in an advantage plan, you pay an additional premium along with the premium of Part B. The premium can be as little as $0. Cost-sharing is also low under the advantage plan.

These Plans Take Care of All your Medical Needs. Whether you need a vision or dental care, prescription drugs or need to cover out-of-pocket costs, an advantage plan takes care of it all. With an HMO, you can also coordinate between medical professionals easily.

Advantage Plans Have More Features. Some of the plans also cover travel costs for doctor visits or provide transport facilities for these visits. These plans also offer coverage when you are travelling overseas.

Pre-Tax vs. After-Tax Medical Premiums

Mon, 04 Apr 2022 18:02:30 GMT

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WHAT ARE PRE-TAX MEDICAL PREMIUMS?

When paying for employee health insurance, do you deduct premiums from their pay before or after withholding taxes?

Like most organizations, it’s usually before withholding taxes. Right?

This is what pre-tax medical premiums are. With pre-tax medical premiums, deductions are made before calculating taxes, which in turn reduces your employee’s taxable income.

Pre-tax medical premiums allow your employees to enjoy a tax break, which in some instances may deliver savings of between 25% and 40%.

And it’s not only your employees who benefit.

Once you set up an employer-sponsored health insurance plan that meets the Cafeteria plan’s requirements (Section 125 of the Internal Revenue Code), you become eligible for several tax breaks.

For starters, you’ll get to save on FICA withholding tax. Some states also offer tax credits to employers who’ve recently established a medical insurance plan under the cafeteria plan.

WHAT ARE AFTER-TAX MEDICAL PREMIUMS?

Maybe some of your employees don’t want to participate in your group health insurance plan. They prefer coverage from a provider in the open market. Such employees can choose to have their health insurance premiums deducted after taxes are withheld.

This is where after-tax medical premiums come in. In most instances, after-tax medical premiums are applicable for individual health insurance coverage bought through the health insurance marketplaces.

However, since premiums are paid after-tax, your employee doesn’t benefit from tax breaks; therefore, no savings.

On the upside, after-tax medical premiums allow your employees the freedom to enroll or drop coverage at any time of the year—no need to wait for enrollment periods.

Employees who elect to have an after-tax plan can also enjoy tax credits. When filing tax returns with the IRS, your employees can choose to deduct premiums as an itemized deduction under Schedule A. To qualify for a tax break under this rule, your employees’ health insurance premiums need to be more than 7.5% of their income.

As an employer, you can also choose an after-tax plan, where you deduct health insurance premiums using Schedule 1, line 16 of the IRS taxation form 1040.

THERE’S A THIRD OPTION: CREATE A HEALTH REIMBURSEMENT ARRANGEMENT

If you can’t offer your employees a traditional group insurance cover for some reason but still want to provide health benefits on a pre-tax basis, you can create a health reimbursement arrangement (HRA).

With a HRA, employees purchase health insurance cover using an after-tax plan. You then reimburse these employees for premiums on a pre-tax basis.

Talk about a win-win situation.

You still get the tax breaks that would come with a pre-tax option and have more control over how much you spend on employee health.

CONCLUSION

We hope this article has shed some light on the pre-tax vs. after-tax medical premiums debate. Now you can make the best choice on when to withhold health insurance premiums.

If you’re still not sure of the best approach, contact an insurance broker to help you. And who other than Zupnick & Associates .

With more than a decade of experience in the insurance marketplace, our team of brokers will help you with any insurance question you have, and in turn, allow you to decide on whether to offer pre-tax or after-tax benefits.

4 Ways Providing Self-Funded Benefits Can Actually Help Your Business

Mon, 28 Mar 2022 18:10:14 GMT

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INCREASED CONTROL AND FLEXIBILITY

Typically, when you outsource your insurance needs to an insurance company, you are provided with a pre-made insurance plan. However, when it comes to insurance for your employees, there should not be a one-size-fits-all approach.

Your team of employees may have different needs and requirements. As an employer, you may have some monetary constraints which may affect your insurance plan.

With a self-funded plan, you have the flexibility to design your health insurance plan completely fit for your organization’s needs and the needs of your employees. You work with a TPA to select your own levels of deductibles, co-pays, and the scope and coverage of your insurance plan.

In short, as an employer opting for self-funded plans, you only pay for what you choose.

IMPROVED CASH FLOW

The ongoing pandemic has caused a massive financial crisis for businesses, and preserving your business’s cash flow is the essential thing to do if you want it to survive.

A self-funded plan immensely helps in improving the cash flow of your business. If you have a contract with a large insurer, you pay a hefty premium regardless of the number of claims. With a self-funded plan, you only pay when a claim comes in.

With fewer claims, the money stays on the employer’s books. Additionally, when an employer switches from a fully insured plan to a self-funded plan, they get a one-time cash bump due to a lag in the billing of employee claims.

SAVE STATE PREMIUM TAXES

When you have a self-funded plan, you only pay a premium if you have excess loss coverage. Excess loss coverage means that if your employee has spent more than the limit you have prescribed, the insurance company will reimburse you.

Most of the states charge taxes on insurance premiums, usually 1 to 3% of the total premium cost. Insurance companies include this cost in the total amount of premium charges.

Due to the Employee Retirement Income Security Act (ERISA), self-funded employers cannot state premium taxes and other fees.

DETAILED REPORTING AND ANALYTICS

Large insurance providers do not provide a detailed breakdown of the cost of your employee claims, which means you can be paying for services that may never have been required.

Companies that manage self-insurance or TPAs provide you with monthly and annual reports which show exactly how your money was spent. TPAs have a significant focus on the transparency of the claims.

With these reports, you can stay informed of your healthcare costs and make better decisions to control those costs. The analysis and the trends also help you customize your plan according to your employees’ needs. In this way, you can come up with a plan which not only saves your money but is also beneficial for your employees.

Healthcare Acronyms Part 2

Mon, 21 Mar 2022 18:35:41 GMT

The healthcare industry is one of the most strictly regulated industries in America. Every year, new regulations and organizations come into being. With things changing so fast, it’s no wonder that even some HR workers have trouble remembering what basic healthcare terms like HRA or QSEHRA mean. In this guide, we’ll continue where we left on Part 1.

ASO

Administrative Services-Only is a term that refers to self-funded health plans where employers provide the funding but hire third-party administrators to run their system. This type of plan has many benefits for businesses of all sizes, namely their low-cost when compared to conventional health plans.

CMS

The Centers for Medicare and Medical Services is a federal agency within the U.S. Department of Health and Human Services that is responsible for overseeing most of the country’s national healthcare programs – such as Medicare, Medicaid, the Children’s Health Insurance Program, and both state and federal health marketplaces.

COBRA

The 1985 Consolidated Omnibus Budget Reconciliation Act is a law that allows workers and their dependents who lost their health benefits due to specified circumstances to temporarily extend their coverage – only workers who are enrolled in a company’s group healthcare insurance plan before the qualifying event occurred are eligible for COBRA benefits.

EPO

An Exclusive Provider Organization is a type of health insurance plan that only allows their insured to receive medical services from doctors, specialists, hospitals, clinics, and other healthcare providers within their network – though exceptions are made for emergencies.

FFS

Fee-for-Service is a payment arrangement where each visit and service used is paid for separately. Though this model is usually more expensive than managed care plans, FFS plans incentivize healthcare providers to diversify their treatments as payment depends more on the quantity than on the quality of care.

FQHC

Federally Qualified Health Centers are community healthcare providers funded through the Health Resources and Services Administration‘s Health Center Program. They are defined by the Medicare and Medicaid statutes mostly found in underserviced areas where they offer primary care services for people of all ages.

HSA

A Health Savings Account allows employees enrolled in an HDHP to save untaxed money and use it to pay for qualified healthcare expenses. HSAs are fully owned and controlled by employees, help workers with high-deductible plans to cover their out-of-pocket expenses and allow employers and family members to contribute to them.

HDHP

A High-Deductible Plan is a health insurance plan with a high minimum deductible for healthcare expenses – in 2020, the IRS defined them as any plan with a deductible of at least $1,400 for individuals and $2,800 for families. Though these plans have lower premiums than others, their high out-of-pocket ceiling can leave their insured with a bill they can’t afford.

HMO

A Health Maintenance Organization provides health insurance coverage for a monthly or annual premium. HMOs are typically less expensive than other health insurance providers – though at the cost of limiting their medical coverage within their network of doctors and healthcare providers.

PPO

A Preferred Provider Organization is a managed health plan that provides access to a network of healthcare providers at a discount rate. While HMOs have lower premiums, PPOs have fewer restrictions about seeing non-network providers – though they tend to lower rates for non-network providers.

Paid-Time-Off or Personal-Time-Off is a policy that bundles sick days, vacation days, parental leave, sick leave, and personal time into a single pool of paid vacation hours that employees can use at their discretion. Besides being an attractive employee benefit, these types of policies can simplify administrative tasks – particularly for employers who rely on PTO banks.

QHP

A Qualified Health Plan is a healthcare insurance plan that meets ACA’s basic requirements, such as providing minimum essential coverage; being certified by the Health Insurance Marketplace; and using standard limits on cost-sharing for premiums, out-of-pocket amounts, and other expenses.

SHOP

The Small Business Health Options Program allows small businesses with up to 50-full time employees to provide medical and dental coverage to their workers. SHOP insurance has no limited enrollment period – employees can pick and drop plans at any moment – and allows some small employers to qualify for tax credits.

Didn’t find the term you were looking for? Then check this link for more healthcare acronyms and their meaning.

Sample Employee Benefits Communications

Mon, 14 Mar 2022 18:42:23 GMT

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MAKE OPEN ENROLLMENT EDUCATION AS EASY AS PRESSING ‘PLAY’

Though HR workers are always chronically overworked, January can often bring things to a crisis level. Indeed, the start of the year is when HR must take care of critical tasks like payroll adjustments, tax reporting, and benefits enrollment.

Unfortunately, having to explain benefits minutia to every employee means other critical tasks get put on the back burner. That’s why every hour that an HR worker spends explaining your workers’ benefits hurts both the department’s productivity and your bottom line.

Our easy open enrolment communications, on the other hand, can break down the ABCs of your benefits without using your limited HR resources or hurting your employees’ education.

SAVE MONEY ON BENEFITS EDUCATION WITHOUT CUTTING CORNERS

Educating your employees on what benefits they’re eligible for is a complicated task. Usually, HR and benefits managers can choose from two approaches: do one big conference with all the staff or multiple smaller meetings with different groups of workers.

Unfortunately, neither of them are cost-effective ways to explain your employee benefits. By comparison, our recording videos can fully educate your workers without needing HR’s expensive supervision.

Instead of having HR answer the same questions each year, our customized sample communications can sum up all the information your employees need to pick the best benefits packages for them.

Whether they just got married, pregnant, or are nearing retirement, our videos empower your employers and allow them to make informed decisions about their benefits.

GET THE JOB DONE WITHOUT THE HASSLE OF SCHEDULING MEETINGS

On-site meetings are inefficient and an unnecessary risk during the Covid era. Our videos do away with unnecessary face-to-face events, freeing HR resources that are better spent elsewhere.

Better yet, since our open enrollment videos can be customized for a particular group, position, or individual, you can save countless man-hours – and the money that entails.

Our videos are hosted on your platform, so employees can access them in their spare time without any additional cost for your company.

Furthermore, if your employees don’t understand the information the first time, they can re-watch the video as many times as they need. Good luck matching that level of convenience with on-site meetings!

MAXIMIZE YOUR BENEFITS EDUCATION WITH OUR SAMPLE COMMUNICATIONS

Ask yourself this question: why do HR managers need to answer the same questions each year? The answer is: they don’t.

Having your HR and/or benefits manager in a conference doesn’t guarantee your employees will come out better educated on their benefits than they came in.

If anything, it only means your employees will idle in their seats listening to a bunch of information that doesn’t concern them. Meanwhile, nobody is doing any work and you’re losing money.

Custom videos, on the other hand, allow employees to only view the subjects that matter to them.

Is an employee expecting a baby? Then he/she can watch videos about pregnancy and parental leave. Is an employee nearing retirement? There are videos about that too.

As you can see, tailor-made videos make for easy open enrollment communications.

LEARN HOW TO MAKE EASY OPEN ENROLLMENT COMMUNICATIONS TODAY

Open enrollment doesn’t have to be a long, drawn-out process. Our online benefits managers can help you smooth out open enrollment by creating informative, customized videos that both your employees and HR will love.

So contact Zupnick and Associates today , and let us take the burden of open enrollment off your shoulders.

Understanding Section 105 Reimbursement Plans

Mon, 07 Mar 2022 18:54:04 GMT

Offering healthcare benefits is one of the best ways to attract and retain high-value employees. Indeed, the pandemic has radically increased the importance of health benefits. These days, workers with an employee-based health plan can use it to pay for most of their health expenses – including preventive care, dental treatments, and drug cost

However, even the most comprehensive health plans demand that the employee meets a deductible before the co-payments start kicking in. Until then, the employee must pay entirely out of his own pocket.

But what if your employees can’t afford to pay their premiums? Then offering a section 105 healthcare plan might just be the solution.

WHAT IS A SECTION 105 PLAN?

Section 105 plans are named after section 105 of the IRS regulations. These plans allow employers to reimburse workers for their medical expenses.

Section 105 plans aren’t medical insurance, so employees have no obligation of paying for monthly premiums. Instead, they offer a flexible solution to employees’ health needs.

The way they work is simple:

First, the employer creates a self-funded health plan that meets section 105 requirements.
Second, the employer reserves a fixed amount of money for each employee’s annual health expenses.
Third, the worker pays for his medical expenses out of his own pocket before submitting them to his employer.
Fourth, the employer will reimburse the employee’s qualified health expenses until his annual limit is met.

Section 105 plans are often used to pay for out-of-pocket costs but they can also fund health insurance premiums. Other benefits of section 105 plans include:

They aren’t subject to income or payroll taxes.
They are less expensive for employers than group healthcare plans.
They allow businesses to increase their tax deductions.
They comply with ACA regulations.

So, if offering a group health plan is too expensive, this might be the perfect solution to your employee benefits needs.

WHAT QUALIFIES AS A SECTION 105 HEALTHCARE PLAN?

Section 105 plans must comply with both ACA and IRS regulations. Although ACA requires that employers provide medical insurance to their employees, the rules may vary for small employers (businesses with 50 or fewer full-time employees).

According to section 105, eligible plans must:

Only accept the employer as the sole contributor.
Not deduct any medical expenses from the employee’s salary.
Set an annual maximum dollar amount to reimburse eligible health expenses.
Not reimburse health expenses already reimbursed by other plans.
Exclude reimbursements for eligible medical expenses from gross taxable income.

Although there are many types of section 105 plans, the most common type falls under the umbrella term of Health Reimbursement Arrangement (HRA) plans.

WHAT IS A HEALTH REIMBURSEMENT ARRANGEMENT (HRA) PLAN?

HRAs are section 105 plans that provide reimbursements for medical expenses. Depending on how they’re configured, HRAs can even provide immediate reimbursement if the employer supplies his covered employees with an HRA debit card.

Unlike health insurance, HRAs only cover costs related to preventing or treating health-threatening ailments. General health expenses, like vitamins or teeth withering, are outside their scope.

HRAs come in many shapes and sizes. Some of the most relevant ones include Individual Coverage HRA (ICHRA), Group Coverage HRA (GCHRA), and Qualified Small Employer HRA (QSEHRA).

WHAT IS INDIVIDUAL COVERAGE HRA (ICHRA)?

ICHRA plans are tailored to fit businesses of all sizes. Unlike other types of HRAs, ICHRAs allow individuals to buy individual market health insurance. Under an ICHRA plan, covered workers can get reimbursements for their individual insurance premiums and other qualified medical expenses without the need to be a part of a group health plan.

WHAT IS GROUP COVERAGE HRA (GCHRA)?

As their name suggests, GCHRAs are linked with group health insurance plans. GCHRAs are well-suited for high-deductible health insurance plans, as they can help employees cover the costs of their premiums and out-of-pocket expenses while their deductibles kick in.

WHAT IS A QUALIFIED SMALL EMPLOYER HRA?

QSEHRAs are HRA plans for small businesses with less than 50 full-time employees.

QSEHRAs allow small business owners who can’t afford a group health insurance plan to make health reimbursements for qualified medical expenses.

WHAT MEDICAL EXPENSES ARE COVERED BY HRA PLANS?

Since they are wholly funded by employers, HRA plans are very flexible in design. Companies can tailor their HRA plan around their health benefits, therefore limiting their employees’ medical expenses without reducing their coverage.

Among other things, HRA plans can cover:

Premiums, copayments, and deductible expenses.
Vision care.
Dental care.
Prescription and over-the-counter medications.

Section 105 plans allow employers of all sizes to offer attractive employee medical benefits. So if you still aren’t sure if HRAs are good for your business, contact us and let us help you create a customized section 105 healthcare plan that fits your needs.

What Benefits Can a Startup Offer its Employees

Mon, 28 Feb 2022 09:51:44 GMT

You’ve decided to start a company.

You’ve conducted ample market research, have a sound business plan, and have gone ahead to secure funding. What remains is assembling a quality team to help you grow your company.

However, as you’ve already found out, attracting top-level talent is easier said than done. While big corporates can lure the most skilled employees with six-figure salaries and numerous benefits, startups have to develop creative hiring and retention approaches.

Some of these strategies include long courtship, hiring people straight from college, being generous with equity, and offering various benefits to employees.

However, what benefits can a startup offer its employees?

Keep reading to learn more:

HEALTH BENEFITS

GENEROUS PTO POLICY

Your employees will need some time to recharge. They may decide to take time off work to spend with family.

Most companies have a PTO policy where the employee is compensated while not working. If you’re looking to attract and retain top talent, you need to offer them a generous PTO policy.

And by generous, I don’t mean giving employees unlimited PTOs. This is because offering unlimited PTO policies results in employees taking less vacation time, which results in increased resentment.

If you want your employees to appreciate your PTO policy, offer them a higher number of PTO days. By doing this, employees will take days off, and you’re more likely to retain and attract top talent.

OFFER REMOTE WORK BENEFITS

COVID-19 made remote work and telecommuting plausible for most professionals. As normalcy slowly resumes, working from home is bound to be part of most companies’ work culture.

To attract and retain top talent, offer benefits that make it easier for them to work productively at home. Some benefits you can provide remote employees include new monitors or chairs for their home office.

And if the budget allows it, you can even give remote employees new laptops, and pay for their home cleaning and babysitting services to increase productivity.

Offering these work from home benefits could make a big difference in your startup’s talent attraction and retention.

EMPLOYEE WELLNESS PROGRAMS

Employee absence due to chronic health conditions results in US businesses losing an average of $36.4 billion annually. This is why employee wellness programs should be among the benefits you offer your employees.

Some of the benefits you can include in your employee wellness program include:

Food and snacks
Fitness equipment at the office
Meditation and Yoga classes.
On-site quiet rooms for stress reduction.

CONCLUSION

There you go.

Four benefits you can offer your employees despite being a startup. If your budget allows you, you can offer employees more than these four benefits.

However, if you have a limited budget, offer your employees health benefits before any other benefits.

PCORI: What Is It? How Does It Work? How Does It Affect Employers?

Mon, 21 Feb 2022 10:28:41 GMT

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WHAT IS PCORI?

The PCORI, or Patient-Centered Outcomes Research Institute, is an independent research organization created by the 2010 Affordable Care Act.

PCORI compares multiple treatment options to give patients, doctors, and healthcare providers the information they need to make an informed decision.

The institute’s research focuses on answering questions raised by patients and doctors. PCORI’s programs do this by evaluating the clinical effectiveness of different treatment options and assessing disparities in healthcare delivery according to race, gender, age, etc.

The resulting evidence is used to improve the efficiency of the healthcare system and save patients excess costs.

HOW DOES PCORI WORK?

PCORI is funded by the Patient-Centered Outcomes Research Trust Fund (PCORTF), which has two income sources: the U.S. Department of the Treasury and a small fee levied on health insurance providers and eligible self-insurance plan sponsors.

The money is used to fund clinical effectiveness studies through the National Patient-Centered Clinical Research Network (PCORnet) – a nationwide network of research clinics modeled after PCORI.

HOW DOES PCORI AFFECT EMPLOYERS?

A good amount of the institute’s income comes from plan sponsors who must pay a small fee every year – $2.66, as of January 2021 – for every person covered in a group plan.

Each year, employers who are plan sponsors must pay this fee to the IRS on July 31. PCORI’s regulations don’t specify any penalties for filing or paying the fees late. However, since the PCORI fee is an excise tax, not filing or paying it on time might make plan sponsors subject to penalties by the IRS.

WHAT ARE THE PCORI 2021 FEES?

The PCORI fee is a tax-deductible contribution that plan sponsors must make to the IRS every year. The money is used to fund the PCORI’s research programs, which in turn help improve the healthcare system.

Each year, employers sponsoring group plans must pay this fee for every employee, retiree, and dependent enrolled in their health plan. As of 2021, the fee stands at $2.66 for plans that end on or after October 1 2020 and before October 1 2021.

The fee must be paid by insurance carriers and plan sponsors. If a company sponsors a self-funded group health plan, like an HRA, then they are responsible for filing and paying the PCORI fees for their workers.

However, if multiple employers share a single plan, each of them must file and pay their fees separately unless one of them is the designated plan sponsor.

WHO DOESN’T HAVE TO PAY PCORI FEES?

DO PCORI FEES APPLY TO SHORT-TERM HEALTH PLANS?

HOW DO YOU CALCULATE YOUR PCORI FEES?

Since carriers include the fees as part of your fully-insured plan’s premiums, you only have to pay PCORI fees if you sponsor a self-insured plan. Furthermore, if any of your covered lives are enrolled in more than one of your plans, you only need to count them once.

To calculate your fee, you must take the total number of covered lives in your plan – this includes employees, dependents, covered retirees, and COBRA members – and use any of the following methods.

ACTUAL COUNT METHOD

Count the lives covered on each day of the plan year and then divide that between the total number of days in your plan year.

SNAPSHOT METHOD

To calculate your fees with the Snapshot method, follow these steps:

Choose at least one day from each calendar quarter (they must be the same dates across all quarters).
Count the number of lives with self-insured coverage on those dates.
Count the number of lives without self-insured coverage on the same dates and then multiply the number by 2.35.
Add both tallies together (self-insured and not self-insured) and divide that number by the number of days you used

MEMBERS MONTH METHOD

Using this method, the average number of lives covered under your plan are equal to the number of member months reported on the NAIC Supplemental Health Care Exhibit report you filed for that calendar year divided by 12.

FORM 5500 METHOD

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Form 720 is the quarterly excise tax return form used to file and pay the PCORI fee. You must submit this form on July 31 of the year following the last day of the policy year or plan year.

Do you still have questions about PCORI? Then contact Zupnick and Associates, and let our knowledgeable staff clear away your doubts.

What is the Typical PTO Policy for Executives?

Mon, 14 Feb 2022 12:22:08 GMT

You spend countless hours planning and organizing school events meant to bring the school community together.

However, what happens when a student gets injured? Or when funds get embezzled? What happens when a lawsuit is filed against you due to the decisions you made as a PTO executive?

Does your school even cover you for the work you put in? And if it does, what does the typical PTO policy for executives entail?

These are questions that every PTO executive has asked themselves at one point. Today we answer them. In this article, we’ll go into detail on what a PTO policy for executives should include.

Let’s get right into it.

WHY DO PTO EXECUTIVES NEED INSURANCE?

To answer this question, consider this scenario.

Your PTO group is organizing a school carnival to bring the community together. However, during the event, one of the major vendors fails to show up despite receiving payment. Upon further investigations, you discover that the vendor went out of business due to the COVID-19 pandemic. Some parents go ahead and sue the PTO executive committee for decisions made when contacting vendors.

Who covers the PTO executives’ legal fees?

Or maybe all vendors arrived, but two students get injured in one of the carnival rides. As part of the PTO managing committee, you’re named in a lawsuit for your role in decisions made. .

Who pays for the fines and legal fees?

Typically, you’d pay for your legal fees and any fines that may accrue due to cases against you. However, with PTO insurance, you’re sure that you’re protected from the effects of wrongful act suits filed against you as a PTO executive.

With a Parent-Teacher Organization insurance, you can conduct your PTO duties without the fear that your assets, including houses, vehicles, and future income, will be at risk in case of a lawsuit against you.

PTO INSURANCE OPTIONS

Most PTOs have a choice of four main insurance options. These are the:

General Liability Insurance (Event insurance): This policy protects you from lawsuits if someone gets injured in a PTO event.
Bond Coverage Insurance (Embezzlement insurance): This cover protects PTOs from financial losses that may occur in case a treasurer, president, or courier runs off with the organization’s funds.
Commercial Property Insurance (Inland Marine Insurance): This cover protects any property that the PTO owns.
Directors and Officer Liability: (Professional liability insurance): The D&O liability protects the PTO board from any wrongful act suits that may be filed against them. This is the typical policy for you as a PTO executive.

But what exactly does the professional liability policy protect you from? Keep reading to learn more.

TYPICAL POLICY FOR PTO EXECUTIVES

As explained above, the typical group PTO plan for executives provides a cover for any lawsuits that may arise due to board members’ decisions. PTO executives with professional liability coverage are also protected from cases that may arise from:

Negligent acts
Issuing misleading statements
Not following PTO by-laws.
Inappropriate use of PTO funds
However, some offenses aren’t covered by the D&O liability policy. These include:
Criminal activities
Dishonesty
Willful, reckless behavior
Knowingly participating in illegal activities.

DOES THE SCHOOL INSURANCE POLICY COVER YOUR PARENT-TEACHER GROUP?

Despite all the work they put in, most PTOs aren’t insured by the school they inhabit. Although there are school districts with policies that cover PTOs for events held on school campuses and during school hours, there are schools with policies that don’t cover parent-teachers groups.

One way to ensure that your PTO group is covered under the school district insurance policy is by giving the school board a detailed list of all activities you intend to hold. With such an exhaustive list, the school board should then get back to you with a list of covered activities.

With such assurance, you can plan the specified events with confidence that you’re not at risk.

CONCLUSION

You put in a lot of work to planning and organizing events. However, if your PTO board isn’t insured, your hard work could place your assets at risk.

Don’t let this happen.

Make sure your school board provides cover for your PTO group.

Open Enrollment Deadlines – 2021-2022

Mon, 07 Feb 2022 13:03:49 GMT

With open enrollment already here, getting everything ready on time is critical for HR execs. So just to make your job easier, here’s a summary of open enrollment deadlines and notices for 2021-2022.

FEDERAL OPEN ENROLLMENT PERIOD FOR 2022

For states using the federal marketplace, the open enrollment period for 2022 will start on November 1, 2021 and end on January 15, 2022. The following states fall within this category:

Alabama

Alaska

Arizona

Arkansas

Delaware

Florida

Georgia

Hawaii

Illinois

Indiana

Iowa

Kansas

Louisiana

Michigan

Mississippi

Missouri

Montana

Nebraska

New Hampshire

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

South Carolina

South Dakota

Tennessee

Texas

Utah

Virginia

West Virginia

Wisconsin

Wyoming

OPEN ENROLLMENT DEADLINES IN STATES WITH STATE-BASED MARKETPLACES

With the exception of New York, states that have their own ACA exchanges will begin their open enrollment period on November 1, 2021.

State Open enrollment starts Open enrollment ends

California November 1, 2021 January 31, 2022

Colorado November 1, 2021 January 15, 2022

Connecticut November 1, 2021 January 15, 2022

Idaho November 1, 2021 December 15, 2021

Kentucky November 1, 2021 January 15, 2022

Maine November 1, 2021 January 15, 2022

Maryland November 1, 2021 January 15, 2021

Massachusetts November 1, 2021 January 23, 2022

Minnesota November 1, 2021 January 15, 2022

Nevada November 1, 2021 January 15, 2022

New Jersey November 1, 2021 January 31, 2022

New Mexico November 1, 2021 January 15, 2022

New York November 16, 2021 January 31, 2022

Pennsylvania November 1, 2021 January 15, 2022

Rhode Island November 1, 2021 January 31, 2022

Vermont November 1, 2021 December 15, 2021

Washington DC November 1, 2021 January 31, 2022

Washington November 1, 2021 January 15, 2021

DEADLINE FOR NOTIFICATIONS / NOTICES

Notice Who must provide it Due date

Notice to Employees of Coverage Options. Employers who fall under the Within 14 days of hiring an employee.

Fair Labor Standards Act.

HIPAA Special Enrollment Rights notice. Health plans and health care providers. When an employee is offered to enroll in a group health plan.

Summary of Benefits and Coverage. Plan sponsors. During the initial, special, and annual enrollment periods.

Summary Plan Description. Plan sponsors. Within 90 days of enrollment, if the plan already exists,

or within 120 days after a new plan is created.

Summary of Material Reduction Employers who made modifications. Within 60 days after the plan’s changes.

(Covered or Benefits). that reduced the covered services or

benefits offered in a plan.

Medicare Part D Creditable Coverage Notice. Group health plans that cover When a participant first enrolls and then annually before

prescription drugs. Medicare’s open enrollment period begins.

Women’s Health and Cancer Rights Group health plans and health Due annually for open enrollment.

Act Notice. insurance companies.

CHIP Notice. Group health plans in a state that During open enrollment.

provides a premium subsidy to

families with low-income children.

Grandfathered Plan Notice. Employers with a grandfathered Whenever a summary of a plan’s benefits is provided.

health insurance plan.

Patient Protections Notice. Group health plans that use a primary Whenever a description of a plan’s benefits is provided.

care physician and require that a

Summary Plan Description (SPD) is

provided to participants.

Initial COBRA Notice. Employers with at least 20 employees No more than 90 days after an employee’s enrollment

that provide group health plan coverage. in a COBRA eligible plan.

HIPAA Privacy Notice. Health insurance issuers. Upon enrollment, within 60 days after a material change,

and annually for at least three years after that.

HIPAA Wellness Program Notice. Employers whose wellness plans Before employee wellness plan participation.

require that members comply with

a health standard.

Americans with Disabilities Act ADA-covered employers with at least Before employee wellness plan participation.

Wellness Program Notice. 15 employees whose wellness programs

require medical questions or examinations.

As ACA moves towards offering comprehensive health coverage for all Americans, enrolling will only get more difficult. So why not have an expert lend you a hand?

At Zupnick & Associates, we have the technical tools and hands-on experience you need to have a seamless enrollment in 2022. So whether you need sample notices or even help to outsource your employee benefits, make sure you contact us today.

Why Are U.S Teachers Forced to Buy PPE for Their Classrooms?

Mon, 31 Jan 2022 13:29:48 GMT

As schools in the U.S return to in-class settings, many teachers have realized that they lack meaningful government support to keep their students safe. Essential PPE (personal protection equipment) like facemasks, hand sanitizers, and cleaning supplies aren’t provided for most teachers.

With the lack of government support, teachers have to purchase PPE using their own money to clean their classrooms and protect their students. So, why are teachers in the United States getting such little support?

We will be taking a look at what teachers face while returning to an in-class setting and why they are forced to pay for PPE in classrooms themselves in the U.S.

GOVERNMENT GUIDELINES FOR SCHOOLS

In a guide for K-12 teachers, the CDC provided an in-depth overview of preventing the spread of COVID-19 in classrooms. Included in this guide was the mandated use of PPE for both teachers and students in the class. When used with social distancing and other proven strategies, there was a significant decline in positive cases and virus outbreaks.

With such strong opinions on the use of PPE from an official government source, why don’t school districts provide them for teachers? In a poll conducted by the Hart Research Associates for the American Federation of Teachers, 88% of teachers had purchased PPE for their classroom.

The lack of supplies has left many teachers questioning the reopening of schools and its effect on their students’ safety. However, the reasoning behind the lack of assistance is ultimately due to the government being underprepared.

FEMA AND SCHOOLS

The Federal Emergency Management Agency (FEMA) is a government agency that funds programs to help those affected by disasters such as pandemics, wildfires, or hurricanes. FEMA is also the leading government distributor of PPE items such as cloth facemasks and sanitation supplies.

In its current state, FEMA has classified schools as a non-emergency setting and chooses to put its focus primarily on providing medical settings with PPE supplies. With their sole focus on medical settings, FEMA has made it clear they will not be reimbursing school districts for PPE because it is seen as “increasing operating costs.”

With an already limited budget and supply of PPE items for hospitals, FEMA has chosen to put most of their funding into keeping up with the enormous demand.

As a result, educators across the United States are left with no other choice but to purchase PPE items with their money. School districts are unable to receive the necessary funding to create an effective PPE program. However, teachers paying for supplies out of pocket isn’t a new phenomenon in the United States.

SELF-FUNDED SCHOOL SUPPLIES

According to statistics provided by the U.S Department of Education, public school teachers in America spend an average of $500 on school supplies each year. With 94% of all public school teachers spending some of their own money on school supplies.

These supplies include everything from pencils to books for their classroom. All of the money for the supplies coming directly out of the teacher’s pocket. While this isn’t a new issue facing teachers, it is becoming more relevant as teachers struggle to pay for both school supplies and PPE.

With the added financial stresses of the COVID-19 pandemic, teachers have become increasingly frustrated with their school districts. As mentioned in the previous section, schools have become underfunded on a federal level and cannot afford to reimburse their teachers for supplies.

CONCLUSION

Currently, teachers are learning how to face a pandemic in school and fighting to keep their classrooms safe with limited supplies and those they bought themselves. While this has caused many to feel underappreciated, there is optimism in the air for those looking to get help with PPE supplies.

The government has started to shift its view of schools as a non-emergency setting and have improved supplying industries with PPE. So, while things may look unpromising now, there will be new state government funding on the way for PPE supplies for schools soon.

How can I save on business insurance for my small business?

Mon, 24 Jan 2022 13:29:08 GMT

Buying insurance for small businesses is hard for beginners. Between the legalese and the overwhelming amount of options, it’s hard to find small business insurance that meets your needs.

However, if your business is to succeed without leaving yourself open for a disaster, you can’t afford to gamble with your coverage. You need the best insurance for small business your money can buy without breaking the bank.

So, just to make sure your premiums don’t eat your profits, we made a simple guide to help you save on business insurance for your small business.

But before we delve into the matter, let’s start with a basic definition.

WHAT IS A SMALL BUSINESS?

Defining what makes a small business is trickier than it seems.

When most people hear ‘small business,’ they usually think about the mom-and-pop store in their neighborhood or even people freelancing from the comfort of their homes. Yet, unlike freelancers, small employers have employees, offices, and yearly revenues that can round or exceed $1 million by a mile.

Most organizations define businesses based on the size of their workforce or yearly earnings. That’s why the Small Business Administration (SBA) agency’s 500 employees’ cap is a popular definition.

However, this number varies widely by industry and location, going as low as 100 employees in some industries to as many as 1,500 employees in others. So if you’re unsure whether your company can apply for small business insurance, make sure you check your industry’s size standard in the SBA’s sizing table.

HOW TO SAVE MONEY ON YOUR SMALL BUSINESS INSURANCE

UNDERSTAND YOUR NEEDS

Both over-insuring and under-insuring are serious issues for small business owners. However, while the first’s premiums will eat a steady chunk of your profits each month, the second one is a ticking time bomb that can explode at any minute.

To find what policy you should buy, check which are your state’s and industry’s requirements. For example, if your company sells services, having professional liability insurance will protect you from an unsatisfied client’s claim. Likewise, if your company owns a fleet of vehicles, buying commercial auto insurance is a must.

SHOP AROUND

Comparing multiple quotes will help you gain a good grasp of the market and judge if an underwriter’s assessment is fair or if he’s blowing your risks out of proportion. So make sure you read each policy carefully, and find a small insurance broker that can help you understand them if anything sounds too technical for you.

MAKE YOUR WORKPLACE ACCIDENT-PROOF

Installing safety features in your business will reduce workplace accidents as well as workers’ compensation claims — therefore making your small business more attractive to carriers.

Some security upgrades that are worth investing in include:

Slip-resistant flooring
Smoke detectors
Water sprinkles
Security cameras
Alarm systems
Handrails for stairs

While these upgrades will cost you in the short run, they will help keep your premiums low throughout the years.

PICK HIGHER DEDUCTIBLES

Premiums and deductibles have an inverse relationship. In other words, if you want to pay lower premiums all you have to do is raise your deductibles.

Buying insurance that has higher deductibles means you’ll have to pay a bigger amount of out-of-pocket money before your policy kicks in. However, if you have taken every step to make your business safe, this is a calculated risk that can save you a substantial amount of money every month.

BUNDLE INSURANCE PLANS TO GET THE BEST PRICES

In a nutshell, bundling involves buying small business insurance at wholesale rather than retail prices.

Basically, insurance carriers know that it’s impossible to make a profit if they give the best prices on everything. So instead of dropping their rates, carriers prefer to allow their clients to pick at least three commercial policies and combine them into a single Business Owner’s Policy (BOP).

That’s how, for example, if you bought a BOP that included professional liability insurance, general liability insurance, and workers’ compensation, you would pay a much lower premium than if you bought each of them separately.

CLASSIFY YOUR WORKERS CORRECTLY

Most states require that you have workers’ compensation insurance in case one of your employees gets injured at work.

Each type of worker is identified by a numeric code that dictates his insurance rate. However, the categories are very confusing – in some cases, even interns are considered workers. And this means that you can easily end up paying extra coverage you don’t need if you use the wrong codes.

So do your research or, better yet, get the help of an experienced insurance broker to help you get the coverage you need and not a dime more.

HIRE AN EXPERIENCED INSURANCE BROKER YOU CAN TRUST

In the end, buying insurance is just one more task that you as a small employer need to take care of. And while doing it yourself might save you a couple of hundred dollars, the odds of you making the right choice are stacked against you.

The insurance market is just too complicated and filled with traps for a newcomer to navigate it safely on his own. So rather than taking matters into your own hands and gambling with your company’s financial future, why not make the safe bet by hiring a first-class insurance broker?

With more than a decade of experience delivering customized attention to our clients, we at Zupnick & Associates have the experience you need to save thousands of dollars in premiums.

So contact us today , and let us find you the best coverage while you focus on taking your small business to new heights!

What Is Malpractice Insurance?

Mon, 17 Jan 2022 13:40:57 GMT

THE BASICS

Medical malpractice insurance is a necessity for doctors. What used to be an additional cushion is now a requirement in most health-employment scenarios.

Not for nothing, Medical Malpractice is the third biggest cause of death in the United States, behind heart disease and cancer. Statistics show that approximately 250,000 people in the United States die each year, due to medical mistakes. More than 17,000 medical malpractice cases are filed each year in the United States, according to some estimates.

In the United States, a doctor may expect to be sued for malpractice once every seven years.

If this doesn’t underscore the need for malpractice insurance for a healthcare provider, we’re not sure what will!

ISSUES ARISE

Even after a patient has recovered from a medical condition or disease, there is risk of medical malpractice. That’s why majority of states now mandate that medical practitioners working in hospitals and other healthcare institutions carry current malpractice insurance.

When it comes to determining medical malpractice insurance rates, speciality and location are two of the most important factors. A physician can wind up paying excessively high premiums even if they have never been sued.

Due to the many variables, such as the quantity of coverage required, the severity of claims, the frequency of claims, the location of practice, and local restrictions, insurance premiums can be rather expensive for medical practices.

MALPRACTICE INSURANCE

Medical malpractice is defined as: a form of professional liability insurance that healthcare practitioners obtain.

This insurance coverage protects healthcare providers from patients who sue them because they were hurt by the medical professional’s negligence or because they made treatment decisions that were meant to hurt them.

Death of a patient is also malfeasance that falls under the coverage of malpractice insurance.

TYPES OF MALPRACTICE INSURANCE

Malpractice insurance can be divided into two main categories:

Claims-made: When a claim is reported, many insurers write on a claims-made basis, which means that the policy in force at the time of the claim responds, while the policy remains in effect and for any applicable extended reporting period.
Occurrence-made: In the past, this policy was more widely accepted because of an occurrence. There is no time limit on when a claim must be filed or when the policy is no longer in effect; it will be covered regardless of when the loss “occurs.”

When the medical malpractice insurance market frequently enters crisis, as it was in the late 1990s, policyholders will have to pay and are paying exorbitant premiums. These were the eras in which:

Premiums fluctuate a lot.
Investments decline.
Loss ratios are rapidly growing as claims payments and DCC expenses rise.
The emergence of a significant reserve deficit.

TIME HEALS SOME THINGS…

After rapidly rising from 1994 to 2002, the combined and loss rates were found to have dropped by the NAIC in 2004. 2019 saw a 79.94% increase in the direct loss and DDC ratio. Losses in 2019 were higher than losses in 2018 in both direct defence and cost control expenses. 2019 saw a rise in direct premiums written and earned as well.

PURCHASING OPTIONS FOR MEDICAL MALPRACTICE INSURANCE

Medical malpractice insurance can take numerous forms, depending on the location and type of medical practice, including:

A policy obtained by a person or organisation from a traditional private insurer.
Individual or group liability insurance coverage is obtained through a medical risk retention group (RRG), an organisation of medical professionals created to provide liability insurance.
Coverage is supplied as part of an employer’s policy, such as a hospital’s.

SOME CAVEATS

Since the federal government self-insures against liability claims, medical practitioners employed by federal agencies like the U.S. Department of Veterans Affairs do not require malpractice insurance.

In rare cases, state and local governments may also offer medical personnel liability protection.

Medical practitioners should obtain insurance coverage for themselves as individuals, as well as for their business entity (e.g., corporation, partnership, LLC) and their staff.

WHAT SHOULD BE INCLUDED IN MALPRACTICE INSURANCE?

Medical malpractice insurance compensates for a variety of costs associated with defending and settling malpractice lawsuits, as well as damages if you are found culpable. Expenses that are covered include:

Court costs and attorney fees.
Arbitration expenses.
Settlement fees.
Damages can be punitive and compensatory.
Medical damages.
Sexual misbehaviour, criminal actions, and unauthorised change of medical records are not covered by medical malpractice liability.

NEED A GOOD MEDMAL BROKER?

A good insurance broker can help you look around for the greatest possible price on your policy. If you have a problem with your insurance company, can’t find the right fit, or expect you can find a better option, they’re the ones that can help.

Additionally, they’re likely better versed in the details of your policy, to begin with. In competitive areas (like California, ahem), it might be difficult to locate a medical malpractice insurance professional broker.

Go with the experts that have the INFO! (Us. We’re the experts. Get in touch with us. )

How To Motivate My Employees To Work Effectively?

Mon, 10 Jan 2022 14:14:58 GMT

The COVID-19 pandemic has not only affected the physical health of millions of people and left hundreds of thousands dead; it also had an adverse effect on the mental health of employees all over the world.

Job insecurity and other financial issues have been reported to be the main reasons behind the worsening mental health of employees. According to a research study, 44% of employees experience a lack of motivation at work since the beginning of the pandemic.

Productive and motivated employees are the best asset of any organization. There are two types of employee motivation: Intrinsic motivation and Extrinsic motivation

Intrinsic motivation comes from within one’s self. An intrinsically motivated employee derives satisfaction from the tasks he performs. Usually, these tasks are those which the employee personally believes in—for example, personal and professional growth, personal goals etc.

When an employee is extrinsically motivated, he completes his work tasks in the hope of a reward or an outcome. Some examples of rewards include praise from managers, promotion in the company, pay raises, and material rewards such as vacation trips etc.

EXTRINSICALLY MOTIVATED EMPLOYEES ARE MORE ENGAGED AND PRODUCTIVE

While it’s true that money is never a substitute for passion, extrinsic motivation is not all about money. It can also be about the anticipation of reaching a professional goal, getting applaud for your work, and benefits offered by the company.

Employee benefits are a good source of extrinsic motivation. Offering your employee’s benefits results in increased productivity among employees, improves employee retention, and has a positive effect on your company’s image. Besides all that, it makes good financial sense to offer benefits to your employees.

Here are three most sought out employee benefits during the pandemic:

REMOTE WORK

Even before the pandemic started, remote work was popular among employees, and its popularity had kept increasing. According to special analysis, the trend of remote work grew 159% from 2017 to 2019.

When coronavirus cases started rising, allowing employees to work from home became necessary to ensure productivity and safety. At present, remote work has become the new normal. According to a survey, 72% of employees wanted to continue working from home for at least two days a week.

Remote work has a positive effect on the productivity of employees. According to a report, 30% of companies said that there was a significant increase in the productivity of employees after the implementation of work from home policies.

PAID LEAVES

A study found that 76% of US workers are experiencing burnout currently. Offering paid time off during the ongoing pandemic can have a positive effect on the health and overall well-being of your employees.

This past year has been unprecedented for everyone. The best way to help your employees who are experiencing burnout is to let them know that their work is appreciated and allow them to take some time off to clear their minds. According to a survey, 30% of the employees say that receiving paid time off will help with burnout.

While it’s true that long-term leaves are harmful to both employer and employee, a research study showed that a leave of fewer than six months does not have a negative effect on the career of the employee.

In case of an employee getting affected due to COVID, federal laws such as FFCRA mandates employers to provide paid leave to employees.

EMPLOYEE WELLNESS PLANS

This pandemic has made one thing clear, mental well-being of employees is as important as their physical well-being. Your employee wellness plans during COVID should not be limited to on-site fitness centres, snacks and smoking cessation programs.

They should also include encouraging open communication culture, increased appreciation for the work of employees, and showing empathy for them.

Some examples of employee wellness plans during this time include wellness challenges that allow socialization between team members, webinars, and online cooking classes. Others are telehealth sessions with health coaches and mental health professionals and virtual initiatives such as health portals and fitness classes.

To read more about what an employee wellness program could look like in the future, read this article.

What Is the WOTC?

Mon, 10 May 2021 17:40:42 GMT

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a differentThe Work Opportunity Tax Credit is a federal tax credit given to businesses that hire individuals from members of certain targeted groups.

When scouting for talent, a business’s focus is on finding candidates that meet their criteria. Companies already have many employment problems of their own, so they’re unlikely to care about their candidates’ problems.

Unfortunately, this shortsightedness means that members from certain vulnerable groups – who can’t compete on a level field – are often overlooked. The WOTC was created in 1996 to address precisely this issue.

By offering a monetary incentive, the Work Opportunity Tax Credit encourages employers to recruit individuals from groups who traditionally face significant barriers to employment. Although the WOTC was scheduled to expire by December 2020, the passing of the Consolidated Appropriations Act, 2021 extended this and many other credits until 2025.source.

WHAT ARE THE WOTC TARGETED GROUPS?

The Work Opportunity Tax Credit is a federal incentive that employers can claim if they show proof of hiring employees from eligible targeted groups.

According to the IRS, targeted groups include:

Temporary Assistance for Needy Families (TANF) benefits recipients.
Physically or mentally disabled individuals who have completed rehabilitative services.
Qualified veterans.
Qualified ex-felons.
Supplemental nutrition assistance program (SNAP) recipients.
Designated Community Residents (DCR).
Summer youth employees living in an empowerment zone.
Individuals receiving Supplemental Security Income (SSI) benefits.
Long-term family assistance recipients
Qualified long-term unemployment recipients.

There is one caveat about WOTC eligible individuals. Namely, that only new hires allow employers to qualify for this tax credit. This means that current or retired employees aren’t covered under this tax credit’s provisions.

For more information about eligibility, please check the IRS page

HOW DOES THE WOTC BENEFIT EMPLOYERS?

Besides increasing the diversity of your workforce and giving more job opportunities to marginalized segments of the population, this federal tax credit also helps employers save a sizable amount of money every year. Depending on the employee’s length of employment, employers can end up making back anywhere from $1,200 to $9,600 per eligible employee.

Despite these pros, studies show that this tax credit has little influence on the hiring practices of most employers. However, its effects are mostly seen in big companies that have a high employee turnover.

Big companies who are part of low-wage, high-turnover industries can make big windfall gains by hiring disadvantaged workers over non-WOTC eligible candidates. Indeed, this is one of the reasons why policymakers have criticized the tax since its creation.

Since companies in these industries would have hired these workers even without a tax incentive, the WOTC allows them to basically get paid for hiring new talent.

HOW DOES AN EMPLOYER CLAIM THE WOTC?

Although employers who inquire into their candidates’ health would normally get in trouble, the U.S. Equal Employment Opportunity Commission (EEOC) has stated that asking candidates to self-identify their conditions doesn’t violate existing anti-discrimination laws.

Companies that want to claim this tax benefit can pre-screen candidates using questionnaires, although most employers prefer hiring intermediaries, and then submitting Form 8850 to the State Workforce Agency (SWA).

The WOTC is a dollar-for-dollar tax credit that takes into account the number of hours an eligible employee has worked for an employer. Employers can claim a maximum credit equivalent of 40% of the first $6,000 in wages paid to an eligible employee in his first year of employment or $2,400.

The amount claimed is hour-based. So while employers can claim this number for workers who stayed on the payroll for at least 400 hours, they can only claim 25% or $1,500 if the employee worked between 120 hours and less than 400 hours.

Furthermore, the Protecting Americans from Tax Hikes (PATH) Act of 2015 allows employees to retroactively claim the tax credit for any eligible employee hired between December 31, 2014 and January 1, 2021.

The Bottom Line

While the WOTC can significantly reduce a business’s tax liability, the application is confusing and time-consuming – employers must get certification that an employee is eligible before they can claim the credit. That’s why many companies don’t take advantage of it and end up leaving money on the table.

However, the fact is that the WOTC is one of the most useful tax credits available for businesses of all sizes. So if you don’t know how to handle the paperwork or what employee is eligible, make sure you contact a certified tax credit professional who can give you a hand.

E-Health: What’s New on the Healthcare Tech Front for 2021

Mon, 03 May 2021 12:44:29 GMT

Thankfully for patients, 2021 has seen a steady run of improvements – but also challenges – in healthcare tech. Whether it’s telemedicine, smart pills, or diagnostic-empowering wearables, here are 3 ways technology is changing healthcare in 2021.

AI IS POWERING CORONAVIRUS SCREENINGS

The COVID-19 pandemic has exposed a lot of shortcomings in our health system – particularly, how long image analysis can take.

Although Computed Tomography (CT) scans can create detailed images in a matter of minutes, how fast the results are delivered will depend on whether there’s a radiographer at hand. In states of emergency (like with the deadly Delta variant becoming the most prevalent), every minute is needed to maximize a patient’s chances and prevent further contagion.

To save time – and more importantly, lives – many hospitals are looking to automate their image analysis using Artificial Intelligence (AI) technology.

According to Imaging COVID-19, a project working with multiple hospitals across Europe, AI can analyze in 10 seconds what could take a human up to 15 minutes. Such results aren’t unique, though, because Microsoft’s Project InnerEye has also found that AI can make radiotherapy planning 13 times faster.

AI can swiftly pinpoint pneumonia patterns that are typical of COVID-19. However, it still hasn’t advanced enough to remove human technicians from the picture. But even if it’s only used as a supplementary tool, AI-powered CT analysis is already helping plug the gap left by the ongoing radiographer shortage.

IOMT DEVICES ARE PAINTING A CLEARER PICTURE OF OUR HEALTH

In recent years, technology is not just around us but actually becoming a part of us.

Enter the Internet of Things (IoT), a term that includes everyday appliances – such as fridges or house lights – which are connected to the internet. IoT devices make our life simpler, allowing us (for example) to turn off a light we forgot or preheat your oven from our office.

Likewise, Internet of Medical Things (IoMT) refers to health tech devices that use sensors to monitor our vital signs and relay the data they collect to our doctor. IoMT devices can, for example, alert a doctor that his patient is having a heart attack or is showing irregular respiratory patterns.

IoMT devices even include “smart pills” with sensors that, once swallowed, can transmit data to other devices. As the IoT market continues to grow, the healthcare industry will become increasingly reliant on it to get accurate, real-time diagnoses of their patients.

CYBERATTACKS ARE ON THE RISE

Not everything is good news, though.

As the Colonial Pipeline ransomware attack showed in dramatic fashion, cybercriminals are both becoming more powerful and increasing the scope of their attacks. The healthcare industry especially, is an attractive target for cybercriminals.

With remote work, telemedicine, and the IoMT increasing the number of endpoints in a hospital’s network, hackers are exploiting these weak points to steal their patients’ sensitive data. A recent IBM report showed that the average healthcare breach can cost an average of $9.23 million per incident.

More dangerously, though, cyberattacks can have life-threatening consequences for patients – as the recent ransomware attack on Eskenazi Hospital, which forced them to redirect ambulances to other hospitals, showed.

These attacks have highlighted the poor state of healthcare cybersecurity and the need to come up with a technological solution that doesn’t compromise the quality of care that a health organization provides.

Cutting off external emails, setting stronger firewalls, and increasing staff education about phishing links can all help reduce attacks. However, one of the most promising solutions involves using Blockchain technology to encrypt and share patients’ records between different hospitals and healthcare professionals.

HEALTHCARE TECH WILL KEEP MAKING OUR LIVES SAFER

Whether it’s speeding up diagnoses, automating administrative tasks, or powering the design of new drugs, technology is changing everything we know about the healthcare industry. So make sure you stay informed about the latest ehealth developments, and if you need help insuring yourself against the unexpected, you know what to do.

The State of Unemployment 2021

Mon, 26 Apr 2021 13:10:22 GMT

We enter 2021 with a bruised and battered U.S economy caught unprepared by the COVID-19 pandemic. At its current state, the national United States unemployment rate has sat at a steady 6.7% since November 2020.

While the national unemployment rate currently sits at 6.7%, this number is not a universal number for all industries or states. Some industries have thrived during this period, while others are in dire need of help.

In this article, we will be exploring U.S unemployment in 2021, and what employment looks like in various industries and states.

UNEMPLOYMENT RATES IN DIFFERENT STATES

With each state having different approaches to lockdowns and regulations, there is a significant difference between unemployment rates. In a data table published by the U.S Bureau of Labor Statistics, the most recent unemployment statistics available shows a large discrepancy between states.

At the lowest on the list, Nebraska has a state unemployment rate of 3.1%. Paired with limited lockdown orders and a large focus on the healthcare and agricultural industry, Nebraska has been able to bear the burden of the pandemic better than others.

Some of the other states that fit a close resemblance of Nebraska are:

South Dakota (3.5%)
Iowa (3.6%)
Utah (4.3%)
Alabama (4.4%)

On the other end of the spectrum, New Jersey has the highest unemployment rate of any state, with 10.2% of its residents unemployed. When looking at the protocols made by New Jersey to fight the spread of the virus, they took a very aggressive approach.

Many key industries to New Jersey, such as the leisure and service industries, needed to close their doors after stay-at-home orders were in place. The lockdown orders contributed a lot to the higher unemployment rate.

When looking at states with similar traits to New Jersey, each has similar unemployment numbers, such as:

New York (8.4%)
Connecticut (8.2%)
California (8.2%)
Arizona (7.5%)

You may have noticed the common theme among the higher unemployment rate states having a larger metropolitan presence. This is no coincidence, as many of these states thrive on service industries like restaurants and hotels.

These states also have some of the highest COVID-19 cases, leading to many cities being on strict lockdown orders. Unfortunately, this has left many unemployed, but this isn’t the case for every industry.

UNEMPLOYMENT RATE BY INDUSTRY

As we hinted in the last section, each state’s key industries make a significant impact on the unemployment numbers. But, what do the overall unemployment rate numbers look like nationally by industry?

In a survey conducted by the U.S Bureau of Labor Statistics, the industry with the most considerable rise in unemployment was leisure and hospitality. From an unemployment rate of 5% in 2019, the unemployment rate rose to 16.7% in December 2020.

Many of these critical jobs in restaurants, movie theaters, and hotels are struggling to stay afloat with a lack of guests. Some other notable industries significantly impacted are:

Mining and Oil Extraction (3.8% to 13.1%)
Transportation (2.6% to 8.4%)
Construction (5% to 9.6%)

However, while most industries saw a drastic increase in unemployment, a few industries saw little to no change. With no need for explanation, healthcare was one of the least affected industries in unemployment numbers.

The national unemployment rate for healthcare workers rose only 0.8% and was at 1.9% at the end of 2020. Out of the entire healthcare industry, hospital workers were the least likely to be unemployed.

Additionally, two industries saw a decrease in unemployment, which were wood manufacturing and rubber manufacturing jobs. Both of these industries are thriving due to overseas manufacturing slowing down because of the pandemic.

CONCLUSION

With a national unemployment rate of 6.7%, the United States is struggling after reaching record low unemployment rates in 2019. Each state has taken a different approach to this pandemic, creating varying unemployment levels across the country.

Those in mostly rural states see a reduced unemployment rate as COVID cases aren’t high, and the key industries are still intact. States with metropolitan areas are seeing high unemployment levels as the leisure and hospitality industry is the most impacted.

Who Has the Toughest COVID-19 Workplace Restrictions?

Mon, 19 Apr 2021 12:29:31 GMT

To balance employee safety and productivity, many employers have implemented strict COVID-19 restrictions in the workplace. These safety measures limit the chances of a workplace outbreak, with some workplaces being more strict than others.

While some companies like Facebook or Twitter have introduced a fully remote working environment, others don’t have that luxury. Many of the essential businesses we need have stayed open, potentially putting employees at risk.

This article will discuss who has the toughest COVID-19 restrictions in the United States. We will cover workplaces across different industries, each with the sole goal of creating the safest working environment possible.

DELTA AIRLINES

Airplanes have little room to social distance—that’s why Delta Airlines made it their priority to create the safest flying experience possible. The passengers and the employees of this airline also go through strict testing and safety measures.

The enforcement of masks on flights is strict, and Delta will ban passengers and employees who refuse to adhere to this policy. Delta has also enforced a stringent policy mandating that employees quarantine for 14 days if they come in contact with coronavirus.

HILTON

Under the name CleanStay, the Hilton brand of hotels enforces strict standards for all employees. Added safety measures like contactless check-in and masks throughout the facilities are required.

Additionally, employees must follow

rigorous cleaning measures for all areas throughout the hotels. This hotel chain has prioritized disinfecting everything from the dishware to the guest’s rooms.

COSTCO

The longtime wholesale giant Costco has gone through several phases in its fight against the COVID-19 pandemic. Starting in early 2020, the store has required masks for everyone inside—not granting access to those refusing.

The staple food court of Costo has also seen some changes with no seating arrangements available and a limited menu. Each person in the store is also required to socially distance at least 6ft, with markers throughout the store.

APPLE

With operations spread worldwide, Apple has needed restrictions to help employees in all parts of the operation. Those who worked in the Apple headquarters have stayed in a remote working environment.

However, for those working in the Apple store, social distancing and COVID-19 testing have been implemented into the workplace. The stores have also introduced limited occupancy rules and temperature readings.

CVS HEALTH

CVS Health has been a frontrunner in the best COVID-19 response of any company in the United States. They have implemented both strict workplace restrictions and mental health support for all of their employees.

In the stores, there are plastic screens at the registers and strict mask enforcement for everyone. If a case has been confirmed at a CVS store location, there will be a deep cleaning following CDC guidelines.

3M CO

Providing PPE equipment during the pandemic has not been an easy feat for 3M. To keep up with this demand, the company has introduced enhanced safety protocols for all employees.

These enhanced safety measures include symptom monitoring, deep cleanings in the facilities, and PPE usage. With these safety measures in place, 3M has been able to keep up with production and limit workplace outbreaks.

TARGET

When you take a stroll through a Target store near you, it is apparent that they are taking the COVID-19 pandemic seriously. Employees must wear masks, stand behind a screen. The company even provides Lyft rides for employees to get to vaccination centers.

All fees associated with getting the vaccine are covered by the store franchise, creating a safe environment for all members. This is a truly unique move by Target, and it is making them a great example of workplace protection.

HCA HOLDINGS

As a major medical industry company, HCA Holdings is responsible for creating a safe environment for both patients and employees. There is a clear focus on PPE for all employees as per CDC guidelines.

HCA Holdings also encourages that everyone gets tested frequently and will pay 100% of an employee’s salary if they test positive for the virus. These strict standards have limted the positive cases.

WALGREENS

Like CVS Health, the drugstore Walgreens has also enforced strict workplace restrictions for all of its employees. Health screenings are often used for each employee to assess their current health status.

The health screenings are testament to the fact that Walgreens is proactive in stopping any potential cases. Furthermore, the use of facemasks is a huge focus for both the employees and customers.

VERIZON

The phone service provider has made it critical that their employees are protected in the stores and up-to-date on all of the latest news. In a frequently updated newsletter, the Verizon brand shares updates on the latest methods of preventing the virus’s spread.

The company also recommends that employees maintain the same pairing when riding together in a vehicle. By keeping employees paired together, the store reduces the risk of spread to other people.

The Basics of The 2021 PCORI Fee Update

Mon, 12 Apr 2021 13:48:40 GMT

The IRS updated the PCORI fees for 2021.

The PCORI fee is now $2.66 per covered individual, which is an increase from $2.54 per covered individual. The due date for this fee is rapidly approaching. Find out everything you need to know about the PCORI fee update.

What you’ll find:

What is PCORI?
What are PCORI fees?
When and why did the PCORI fee extension start?
Who has to pay PCORI fees and when are they due?

What is PCORI?

The Patient-Centered Outcomes Research Institute (PCORI) was established by the Affordable Care Act in 2010. PCORI is a nonprofit, nongovernmental organization that collects and conducts clinical effectiveness research for evidence-based medicine, cost-effectiveness, and program evaluation. They identify the most effective clinical and public health interventions to best improve the lives of healthcare consumers.

Patients, clinicians, purchasers, and policymakers use this information to make well-informed decisions regarding healthcare, plans, and policies.

What are PCORI fees?

PCORI is funded by two revenue streams:

Appropriations from the US Treasury
Private insurance carriers & sponsors of self-funded plans

In order to help fund PCORI, the IRS imposed the PCORI fee on health insurance issuers and sponsors of self-funded plans. The PCORI fees were updated for 2021 bringing the new fee to $2.66 for each individual covered under the policy.

The PCORI fee was first initiated for insurance plans ending after 2012. The first year was only $1 for each individual covered. It went up the following year to $2 for each individual covered and has consistently increased every year since.

When & why did the PCORI fee extension start?

Originally, the PCORI fee was applied to insurance policies & plans ending after September 30, 2012 and before October 1, 2019. Many companies & business owners thought the PCORI fee would be long gone by 2020. However, the Further Consolidated Appropriations Act was signed into law in December 2019 extending the PCORI fee for another 10 years.

Now the PCORI fee will be applied to insurance policies and plans ending after October 1, 2019 and before October 1, 2029.

Who has to pay the PCORI fee & when are they due?

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Self-Funded Plan

If the employer has a self-funded plan to cover the health of their employees they are required to file and pay the PCORI fee directly to the IRS. In a self-funded plan, the employer assumes all or majority of the costs associated with benefit claims. Even if the insurance company assists with the payments, the employer will pay the costs.

Self-funded plans can be excluded from PCORI fees if they provide insignificant benefits for medical care or treatment. Such benefits include but are not limited to short-term counseling, disease management, employee assistance programs, and some wellness programs.

Self-funded plans do include HRAs & FSAs. FSA & HRA accounts are considered to be Non-Excepted Benefits and PCORI fees will be applied to each individual covered under the policy.

FSA & HRA accounts that meet the requirements of an Excepted Benefit are not subject to PCORI fees. HRA accounts with a maximum benefit less than $500 satisfy the requirement to be an Excepted Benefit. If the maximum benefit exceeds $500 it is considered a Non-Excepted Benefit.

FSA accounts are considered Non-Excepted Benefits if they fall within one of these two guidelines:

The maximum benefit is greater than two times the enrollee’s salary reduction election.
The maximum benefit is greater than the enrollee’s salary reduction election plus $500 or more.

HRA & FSA accounts that only compensate for limited benefits meet the requirements for an Excepted Benefit. In this case, PCORI fees will be excluded because the FSA or HRA account is considered as an Excepted Benefit.

Fully Insured Plan

If the employer is fully insured, the insurance carrier assumes the costs of benefit claims and handles the payments being made. The employer is not responsible for filing and paying the PCORI fee themselves.

The insurance carrier is responsible for filing the Form 720 on behalf of the employer and will pay the PCORI fee directly to the IRS. The PCORI fee is typically included in the total cost of the employer’s insurance premium.

The PCORI fee is required to be reported once a year in the second quarter of the fiscal year. The Form 720, Quarterly Federal Excise Tax Return is used for this purpose. It is available on the IRS website. This form is traditionally used quarterly, but the IRS has authorized this form for annual use for PCORI fees as well.

Once filed, the PCORI fee is due by July 31st.

Empire Reimburses COVID-19 Vaccines to Members

Mon, 05 Apr 2021 12:21:31 GMT

In a long-awaited announcement, the United States has started to administer FDA-approved COVID-19 vaccines. With millions waiting in line to receive their vaccinations in New York, Empire Bluecross Blueshield has stepped-up to help.

To speed up our country’s recovery, Empire has encouraged all members to get vaccinated. In a commitment to support our community, Empire has offered an insurance reimbursement for coronavirus vaccination costs.

This devotion to our community has set a positive example for insurance companies across the United States. If you are a member of Empire Bluecross Blueshield’s insurance plans, here is what you need to know about their reimbursement program.

THE DETAILS OF EMPIRE’S VACCINE REIMBURSEMENT

To get reimbursed for receiving the COVID-19 vaccine, you will need to make sure you are taking an FDA-approved vaccine. These vaccines can either be the Pfizer, Moderna, or the most recently announced Johnson & Johnson vaccine.

All three of these vaccines have received the FDA’s green light and are for widespread use. To find a location that administers these vaccine shots, visit an established national center approved for Medicare and Medicaid Services.

The federal government will supply each approved administration facility with one of these vaccine variants. With the government footing the bill on the vaccine, Empire will only need to cover the cost of administering the shot.

Whether a member visits a center in or out of their network, Empire will still reimburse you for the vaccine’s costs. Included will be both vaccination shots of the vaccine free of cost to you.

Safety and convenience are the top priority during a national public health emergency like the COVID-19 pandemic. Included in the reimbursement program are both employer and self-funded members in a single person or family plan.

TEMPORARY CHANGES TO THE ADMINISTRATIVE POLICIES

Due to this national public health emergency’s nature, Empire will continue to make adjustments to its policies. The COVID-19 pandemic has caused many impacts on the healthcare system that haven’t been seen previously.

Each of the adjustments made by Empire Bluecross Blueshield is to ensure that its members can receive adequate treatment when they need it. An example of a change made to their administrative policy is the authorization of patient transfer to lower-level care.

Prior authorization (PA) requirements have been suspended for patients who transfer from a hospital to a nursing facility. These requirements are also suspended for any lower-level care facility.

Additionally, Empire has also stated that they will agree to clinical or other state administrative mandates. These mandates will support the local communities’ members, allowing them to access the medical care they need.

THE CARES ACT

At the start of the pandemic, the federal government passed the CARES Act in March of 2020. Under this government order, all COVID-19 testing and vaccines are covered during the current pandemic.

This coverage also extends to those who visit urgent care or doctors’ offices concerning coronavirus care. This funding will remain as long as the public health emergency order is in place.

This funding applies to all Empire members, regardless of the type of health insurance plan or doctor you visit. If you suspect that you have come in contact with someone positive for the virus, get tested as soon as possible.

The government extended the COVID-19 CARES Act in January, likely to remain in place until the end of 2021. As long as the pandemic is still affecting the United States, this assistance program will continue to help Americans.

CONCLUSION

In a commitment to keeping our communities safe, Empire Bluecross Blueshield has implemented a vaccine reimbursement program. As long as the vaccine is FDA-approved and administered at an established center, you can receive insurance reimbursement.

Along with this program, the insurance company has also implemented various administrative policy changes to support us during these trying times. Included is the suspension of prior authorization if a member needs to be transferred to a lower-level care facility.

With these changes in place, Empire has set each of its members up with an effective support network. If you have any questions regarding the vaccine reimbursement program, contact your account representative for more information.

How to Keep Workplace Morale Up and Infections Down

Mon, 29 Mar 2021 10:55:03 GMT

An aspect of the COVID-19 pandemic not discussed enough is the mental toll it takes on us all. Uncertainty, isolation, and stress have left many having trouble coping with our new normal in 2021.

This toll on mental health has also caused a decline in workplace morale, with many people feeling burnt out. Keeping everyone’s morale up has never been more critical, but it isn’t as easy as before the pandemic.

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The mainstays of boosting morale like parties, meetings, and team-building exercises are no longer viable with the new safety measures. So, how do you keep morale up and workplace infections down?

This article will explore different ways to do this quickly and keep everyone’s spirits high!

HELP EMPLOYEES MANAGE STRESS

One of the leading killers of workplace morale is stress about health, job security, and finances. Over 20% of employees spend at least five hours per day worrying about these things during their working hours.

These stressors have become even more apparent since the start of the COVID-19 pandemic. Helping those effectively cope with stress outside of the workplace is a great way to boost company morale and increase productivity.

There are ways you can help, such as encouraging employees to go on walks outside during lunch breaks or creating a quiet space where they can take short breaks. Every method should promote a healthy lifestyle and proper stress coping techniques.

By helping employees manage their stress from their personal life, their morale will stay high and help to create a better work environment overall.

GIVE EMPLOYEES RECOGNITION OFTEN

In a study conducted by Glassdoor, 81% of employees reported that they were motivated to work harder when their boss showed appreciation for their work. Showign employees that you appreciate their work is a great way to keep morale high in the office.

There are many ways you can show recognition, such as implementing an employee incentive system or publicly displaying awards for employees who exceed expectations. Additionally, as someone working in HR, you should reach out to employees regularly so you can keep in touch with how they are doing.

Ask your team members what they think would keep morale up and what activities they would like to see. There is no better way to get useful feedback than talking directly to your team members.

INDIVIDUAL DEVELOPMENT PLANS

Getting stuck in a rut causes many employees to feel burned out and start dreading going to work. Implementing fresh and new ideas often will bring a new sense of optimism to the workplace.

A great way to do this is by introducing an individual development plan for every employee. ASk each employee to list four personal and professional goals that they want to achieve each year.

Once the goals are listed, you can help introduce realistic benchmarks for your employees to reach these goals. As a manager, you can set quarterly goals and encourage the employee to strive to reach them.

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You an also provide some pathways to achieve these goals.

With personal and professional targets set, employees have an end goal that they can strive to achieve. Burnout is less likely when employees have a clear vision of what they are working towards.

FOCUS ON HEALTH AND WELLNESS

Focusing on health is incredibly important during the COVID-19 pandemic, requiring a greater emphasis than before. Many people have relaxed their health regimes during the pandemic, and this is the perfect time to help them come back healthier.

While giving health talks is important, they don’t get employees excited and engaged. Incentivizing it, and building an enjoyable experience will have far better results.

Some examples of ways to promote a healthy lifestyle in the workplace are:

Offering healthy snacks
Hosting virtual wellness retreats
Encouraging fitness challenges between employees

CONCLUSION

The COVID-19 pandemic has been hard on all of us, but there are ways to boost morale in the workplace without risking the chances of a workplace spread. Focusing on each employee as an individual rather than teambuilding can create a happier and more productive workplace.

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For more information about helping employees stay motivated, click here to read more !

How Much Does U.S. Health Insurance Cost?

Mon, 22 Mar 2021 12:15:40 GMT

The U.S. private health insurance sector is an industry worth billions, providing coverage for 67.3% of Americans. While it is the most prevalent option among the U.S population, it has also been a frequent topic of debate.

Many Americans believe the cost of health insurance coverage is too high, with premiums that are hard to manage financially. However, the differences in expenses change dramatically depending on several factors.

So, how much does U.S health insurance cost? To help answer this question, we created a brief overview of the average United States health insurance costs.

HEALTH INSURANCE COSTS BY AGE

One of the critical factors that will determine your health insurance costs will be your age. As you get older, the likelihood of needing medical care rises. To prepare for these expenses, an insurance company will raise your insurance rates to match the risk.

To begin, insurance companies will start by basing the minimum rate on a policyholder who is 21-24 years old. For a silver healthcare plan, the average cost is $200 per month. This cost is in the middle tier of insurance plans, but the prices can rise depending on your needs.

As we look at the age brackets for health insurance costs, they slowly rise in small increments until 50 years old. For a quick rundown on the premiums by age, here are the base rates for each age group:

21-24 have an average cost of $200
26-30 have an average cost of $205 to $225
31-40 have an average cost of $244 to $256
41-50 have an average cost of $335 to $425
51-60 have an average cost of $446 to $553
At 64 years old, the insurance premiums cap is at the cost of $600

From this table, you will notice that the insurance premiums will rise drastically between the ages of 50 and 60. At 64, the insurance prices hit their max, and many retirees begin to enroll in Medicare. This age range includes the highest risk to the insurance company for members seeking extensive healthcare.

While these are the average costs of health insurance, the price is highly dependent on the type of plan. Fortunately, health insurance companies can no longer charge more for those who suffer from pre-existing conditions.

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HEALTH INSURANCE COSTS BY AREA

Age is an important determining factor for your private health insurance premiums, but your area and state also make a significant difference. For starters, if you live in a rural part of your state, you will most likely pay more than someone in an urban environment.

In the latest survey, rural residents paid an average of 10% more per month for the same health insurance plan as urban-area residents. The cause of these higher prices is the lack of competition in these less-populated areas.

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The lower population also increases the insurance company’s risk, as they cannot spread out the financial risk among as many people. Your area is not the only factor, with your state also playing a massive role in your health insurance costs.

To keep the results consistent, we will be using the costs based on a policyholder who is 40 years old. The costs are an average of each tier of coverage plans.

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At the top of the list, some of the most expensive states to be a health insurance policyholder are:

West Virginia ($712)
New York ($701)
Wyoming ($670)
Vermont ($649)

These states hold the highest insurance premiums, with a common theme being the states with smaller populations like Wyoming and Vermont costing more. Now, let’s take a look at the states that have the least expensive insurance premiums.

New Hampshire ($335)
Maryland ($344)
New Mexico ($350)
Minnesota ($362)

EMPLOYER HEALTH INSURANCE VS INDIVIDUAL PLANS

First introduced in 1929, employer health insurance plans have helped employees with their medical expenses for decades. In almost all cases, a health insurance plan provided by your employer will cost less than having an individual plan.

This cost reduction is possible because your employer will often split the costs of the insurance premium with you. In 2021, the estimated cost for premiums and out-of-pocket costs for employees is $14,769 per year for a family. Each subsequent year, the price of these premiums will typically rise 3.8%.

Such an employee health insurance plan will have an average deductible cost of $3,655 per family or $1,931 per single person. These costs will differ depending on the type of coverage plan and your location.

21 of the Best Employee Benefits and Perks for 2021

Mon, 15 Mar 2021 10:42:43 GMT

Since the ongoing pandemic has disrupted the US economy and the unemployment rate has risen to 6.7%, of employees’ perception towards job benefits has also changed.

Because offering employee benefits makes good financial sense for your business and positively impacts employee motivation, you should frequently update your employee benefits program according to their needs.

TRADITIONAL EMPLOYEE BENEFITS

The following benefits were popular among employees even before the pandemic and would be considered valuable parts of your employee benefits program in 2021:

PAID VACATION & SICK TIME

As working from home has increased stress and fatigue among workers, offering your employees paid time off, among other employee perks, can have a positive effect on their well-being.

IMPROVED HEALTHCARE PROGRAM

The pandemic has also changed the health needs of your employees. The inclusion of benefits like mental health coverage and telemedicine in your group health plan has become more critical.

FREE LUNCH AND SNACKS

Providing free lunch and snacks is not only an excellent way to show employees gratitude for their work, but it also has numerous other benefits. Consider offering healthy options for snacks such as almonds, nuts, and roasted chickpeas, etc.

GYM MEMBERSHIPS

The physical fitness of your employees has a direct impact on their productivity. You can encourage your employees to improve their fitness by giving them access to an on-site gym or providing them with a free local gym membership.

PAID SABBATICALS

Taking a sabbatical can help your employees unwind from work-related stress and can help them to focus on personal goals. This will not only be beneficial for your employee, but also for your company.

FINANCIAL ADVICE & MANAGEMENT RESOURCES

Having access to paid financial advisors and investment consultants can help your employees manage their budget effectively. This can go a long way to reducing their financial stress in the long-run.

PERFORMANCE-BASED BONUSES

Performance-Based Bonuses can be a useful tool to encourage your employee to work more effectively. Generally, these bonuses are given after completing a work goal over a specific period.

RETIREMENT BENEFITS

A well-designed retirement plan can effectively increase employee retention. One study found that 92% of employees consider workplace retirement plan a significant factor in deciding whether to stay with their employer or not.

EMPLOYEE DEVELOPMENT PROGRAMS

Training and certification programs related to your industry are a great addition to your employee benefits program. This gives your employees the opportunity to improve and expand their skill sets.

STUDENT LOAN REPAYMENT ASSISTANCE

Assisting your employees in repaying their student loans has become easier with the CARES act. The act allows tax-free employer contributions towards employee student loan repayment.

PET INSURANCE

Pet insurance is another possible employee perk. If your employee is assured that their pet will have access to quality care in case of an emergency, it will minimize their stress, and increase their focus.

LIBRARY ACCESS

Book reading is a productive activity and has a positive impact on mental and phsycial health. Giving your employees access to physical or online libraries can stimulate them mentally and give them something to do during their down time.

CHILDCARE SUPPORT

Companies that offer childcare support have noticed an increase in employee retention and recruitment. Up to 67% of working parents surveyed said that they would be more loyal to their job if their employer offered childcare support.

MENTAL HEALTH SUPPORT

Since the pandemic has caused a mental health crisis in the US workforce, offering free counseling to your employees can help them manage their mental health problems.

TEAM BUILDING ACTIVITIES

To boost the morale of your employees, you can start a book club, organize a group webinar, or other COVID-friendly team-building activities. You can still set up safe team-building events using Zoom or other online platforms.

VIRTUAL OFFICE EVENTS

Isolation is one of the most significant drawbacks of remote work. A good way to prevent employees from feeling too out of the picture is to hold engaging virtual office events and workshops.

FLEXIBLE SCHEDULE

A flexible schedule can affect how productive your employees are. According to a survey, 78% of employees said that flexible work hours increased their productivity.

EMPLOYEE WELLNESS PROGRAM

A good employee wellness program can include smoking cessation seminars, yoga classes, and wellness challenges.

EXTENDED PARENTAL LEAVE

Usually, employers in the U.S. grant 12 weeks of unpaid parental leave. However, the Bill and Melinda Gates Foundation’s program, which increased parental leave to six months, proved to have numerous benefits for both parents and children.

SOCIAL CLUB MEMBERSHIPS

Providing access to social and sports clubs has a positive effect on the overall health and well-being of employees. Social clubs in the workplace can help bring together like minded employees.

CONTINUING EDUCATION

Allowing your employees to continue their education at your expense can help them see their value as an employee, improve performance and increase employee retention.

Biden Extends Open Enrollment Nationwide

Mon, 08 Mar 2021 10:19:22 GMT

Just days after his inauguration, President Joe Biden signed an executive order that reopened the federal health marketplace. Beginning on February 15 and ending on May 15, 2021, uninsured citizens will have three months to register for an individual or job-based health plan.

The measure aims to extend health care coverage to 15 million uninsured Americans, many of whom lost their job-based health care during the ongoing unemployment crisis.

Despite an almost 7% increase in enrollment in November-December of last year, some 15 million Americans still lack access to basic medical coverage. However, the new President’s pro-ACA stance might remedy this in the future.

NEW PRESIDENT, NEW MEDICARE RULES

Biden’s election signals a fresh start for Obamacare. While Donald Trump tried repealing the Act, Biden promised to restore ACA’s individual mandate to buy health care insurance – which was zeroed out by the 2017 tax cut bill.

Along with his $1.9 trillion stimulus plan, the President sees the reopening of the marketplace as essential to defeating the pandemic. According to him, the plan will, “ramp up testing, tracing, and our national vaccination program.”

Furthermore, he wants to extend Medicare coverage to the most vulnerable sectors – including people of color and unemployed citizens.

Out of the uninsured population, almost 9 million qualify for federal financial assistance. So individuals making up to $51,000, and families of four making up to $104,800 could receive subsidies in the near future.

STATE-BASED EXCHANGES HAVE ALSO CREATED SPECIAL ENROLLMENT PERIODS

The President’s executive order has re-opened the federal health marketplace across the Union. The District of Columbia and most states running their own health marketplaces have also created special enrollment periods – though the time frames and eligibility criteria may vary.

In California, the hardest-hit state in the country, Covered California’s special enrollment period began on February 1 and will run through May 15. Massachusetts Health Connector, on the other hand, will extend from February 03 until May 23.

Other state exchanges, like Pennsylvania’s Pennie, follow the federal three-month time frame from February 15 to May 15.

Meanwhile, Idaho’s special enrollment period – one of the shortest in the country – will run from March 1-31, 2021.

HOW DO THESE MEASURES BENEFIT BUSINESSES?

Any employer who wishes to attract and retain talent has to eat, sleep, and breathe healthcare. Particularly because, despite the availability of the vaccine, the pandemic is still raging in many states.

So if Medicare was a recruiter’s selling point before 2019, it’s an absolute necessity in 2021.

Medicare allows highly-experienced employees to keep working well past their retirement age. But more importantly, it gives everybody in the office the peace of mind they need to be productive.

After all, what employee can bring his ‘A’ game to work if he or she is worried about getting sick and being uninsured? Helping your employees enroll in Medicare can reduce the strain on your company’s group health care system without cutting your talent pool.

BUSINESSES PLAY A CRITICAL ROLE IN RAISING HEALTH CARE AWARENESS

Despite starting in 2014, public awareness about Obamacare remains fairly low. Indeed, there are millions of people who haven’t enrolled simply because they don’t know they’re eligible.

According to a study carried by the Urban Institute in September of last year, almost two-thirds of uninsured adults said they knew little to nothing about Medicare. Add to this statistic the fact that Trump cut 90% of ACA’s marketing budget and you’ll understand why 15 million Americans remain uninsured.

With Obamacare still being a mystery for many Americans, businesses play a key role in helping spread awareness among their employees about what an open enrollment period is.

MAKE SURE YOUR TEAM IS FULLY COVERED IN 2021

Despite the arrival of the vaccine, the fight against COVID-19 isn’t over yet. Nobody knows how many more lives the pandemic will claim before it stops. What we do know is that you can make a difference and keep a healthy, motivated workforce by educating them on the importance and process of enrolling for Medicare.

Make sure you know your state’s special enrollment deadlines and requirements or, better yet, contact us at Zupnick and Associates and let us sort things out for you.

Is it Possible to Have Less Costly or Free Healthcare?

Mon, 01 Mar 2021 10:48:26 GMT

There has been a long-standing debate throughout the United States on the topic of healthcare. Some Americans believe that healthcare prices are too high, while others believe this is a necessity for great healthcare.

Is a private healthcare system better than a government-regulated one? Whichever side you are on, it is always a good idea to understand the implications of reducing healthcare prices or making it free.

We will be exploring if it is plausible to make U.S. healthcare free. We will also take a look at countries that already have free healthcare and discuss the changes the U.S. would need to make it happen here.

MAKING THE SWITCH TO A SINGLE-PAYER SYSTEM

When Americans think of making healthcare free, they typically think of switching to a single-payer healthcare system. In this system, the federal government would cover healthcare for every American.

Several countries have adopted this style of single-payer healthcare system. Some of the most notable countries are:

Canada
Denmark
Norway
Taiwan
Sweden

This national health coverage is not entirely foreign to the United States, as those over the age of 65 or disabled get benefits through Medicare health insurance. Funded by taxes, the federal government covers medical expenses for each person. But, what if this system was for every American?

The single-payer healthcare system, usually referred to as “Medicare for All,” has gained popularity for years. In a Hill-HarrisX poll conducted in 2020, sixty-nine percent of Americans favored the system.

While Medicare for All seems like a no-brainer for Americans, this healthcare system doesn’t come without its negative consequences. Once told about the potential 20% increase in personal taxes, more than two-thirds of Americans no longer supported this healthcare plan.

With taxes inevitably rising with a universal healthcare plan, the backlash will make it hard to pass through a divided U.S.

political environment.

THE RISING PRICE OF THE US HEALTHCARE SYSTEM

The price of healthcare has risen drastically. The United States has the highest global healthcare budget. Much of this spending is attributed to the United States’ higher salaries, record-high drug prices, and administrative costs in the healthcare industry.

With this in mind, many advocates see a clear way of cutting healthcare costs: government intervention. Their claim is that if the U.S. government set the prices for healthcare and negotiated drug prices this could significantly lower healthcare costs.

Lowering healthcare prices would also require a significant transformation in how administrative costs are spent. The United States spends 8% yearly on these costs, compared to the average 1% to 3% of other nations.

In addition to setting prices in healthcare, increasing the competition among healthcare equipment and drug manufacturing companies may also help drive down prices.

HEALTHCARE OUTLOOK IN 2021

While the idea of making healthcare less costly or free is very enticing, the United States government has the final say in all changes. Does the U.S. government believe there should be free healthcare in 2021?

Currently, the Medicare for All dream has been all but squashed with the current divided political landscape. Many of the proponents for Medicare for All are in the minority, with the rest of the U.S. Senate looking to keep our current healthcare system.

Our current healthcare system looks to remain for the foreseeable future, with many believing the switch will be too costly. Some smaller changes are being made to lower the prices of certain prescription drugs.

However, the U.S. government and the FDA have limited say in what a drug manufacturer can charge for any specific drug. This has sparked outrage, as many Americans have gotten priced out of lifesaving drugs like insulin.

CONCLUSION

In this brief article, we discussed whether it’s plausible for the United States to lower healthcare or make it entirely free. As we have seen, there doesn’t seem to be a hard push in 2021 to change our healthcare system.

Many Americans are put off by the negatives aspect of a singel-payer healthcare system in other countries. Problems such as a rise in personal taxes, the long wait lists to receive care, and sometimes a difference in the quality of care depending on the location.

There may be changes made soon, but nothing drastic that changes the entirety of the current healthcare system.

Is a Spouse Losing Insurance a Qualifying Life Event?

Mon, 22 Feb 2021 17:50:13 GMT

Health insurance is a priceless commodity that not enough Americans have. Unfortunately, the pandemic has stretched out our country’s economy and health care system to the limit. Millions of workers and families have either lost income or their employer insurance amidst the worst crisis we have faced in recent memory.

But not everything is lost, though, because there are still ways you can start 2021 with full coverage. If a spouse lost his or her spousal insurance coverage due to a qualifying event, he or she might still qualify for a special enrollment period in 2021.

WHAT IS A QUALIFYING LIFE EVENT?

The open enrollment period is the only time of the year when employees can sign themselves and their families for employer insurance.

Normally, a worker who didn’t sign up during open enrollment would’ve to wait until the next year to do so. However, if that worker didn’t sign up due to experiencing a qualifying life event that disrupted his plans, he can still sign up during a special enrollment period.

The most common qualifying life events are:

Loss of health coverage.
Change of residence.
Changes to the insured person’s civil status or household.

Since spouses are often grouped in with workers’ health insurance policies, they can also qualify for a special enrollment period if they lost their spousal insurance. This way, the spouse can sign up for a marketplace, individual, or workplace insurance plan (if he or she found a job) outside of the open enrollment season.

WHO QUALIFIES FOR A SPECIAL ENROLLMENT PERIOD?

There are three main situations where a spouse losing insurance is considered a qualifying life event: after a divorce or legal separation, after the insured spouse’s death, or if the insured spouse becomes unemployed.

LOSS OF COVERAGE DUE TO DIVORCE OR LEGAL SEPARATION

Compared to individual policies, spousal insurance is an inexpensive way to insure a worker’s family.

Many employers offer group policies that can cover an entire worker’s family. Likewise, spouses can also get coverage through an individual health insurance policy.

In case of divorce, though, the company or the insured worker may remove his/her former spouse from the plan. And while the children can still receive coverage, the former spouse will no longer be considered an eligible dependent – with a few noted exceptions:

Depending on the settlement, the former spouse might still receive coverage from the ex’s health plan.

Alternatively, the former spouse could also apply for COBRA benefits and stay in his/her ex’s plan for up to 36 more months.

Whatever the case is, losing coverage due to divorce or legal separation is a qualifying life event that makes a former spouse eligible for an open enrollment period.

LOSS OF COVERAGE DUE TO THE DEATH OF THE COVERED SPOUSE

2020 was the deadliest year in our history. Last year, more than 300,000 Americans died of COVID-19 – by comparison, 407,300 US soldiers during WWII.

For those who lost a spouse in 2020, living without their loved ones is already hard enough. However, the virus’s persistent threat means widows also have to worry about their livelihood while continuing to mourn.

Loss of spousal insurance due to the death of the insured partner is a qualifying life event that makes the grieving spouse eligible for a special enrollment period.

In some instances, spouses who have lost their loved ones to COVID are eligible for workers’ death benefit compensation.

However, in other cases, employers have left workers’ COVID-related deaths unreported, leaving thousands of families to deal with the lost income, medical bills, and funerary expenses on their own.

LOSS OF COVERAGE DUE TO UNEMPLOYMENT

The pandemic also ramped up unemployment numbers – especially among the Latino and African-American communities.

According to the Bureau of Labor Statistics, there were 9.8 million people unemployed in November last year. To make matters worse, stimulus checks and unemployment benefits are hard to get.

COBRA allows formerly covered spouses to extend their employee coverage for another 18 months. However, COBRA premiums are expensive and come out entirely of the former employee’s pockets.

The best option for the unemployed worker and his spouse is to sign up for a special open enrollment period within 30 days of having lost his or her job-based health coverage.

Don’t Leave Your Employees Hanging in 2021

So far we’ve talked a lot about the challenges that employees are facing. But who are we kidding? The pandemic hasn’t been exactly kind to employers either.

The loss of business opportunities, the travel restrictions, and the disruptions to their supply chains mean many companies today are looking to cut costs wherever they can. However, cheating valuable employees out of their much-needed health benefits should never be the answer.

Companies that have cut their employees loose have faced public backlash and could end up paying more in terms of legal fees in the future. So instead of cutting corners, why not help your former employees get through the crisis?

Whether it’s reporting COVID-related deaths to OSHA or helping ex-employees and their spouses to apply for COBRA benefits, standing by your staff will only benefit your company in the long run.

ACA 1095 Rules in 2021

Mon, 15 Feb 2021 18:20:39 GMT

Since it was created back in 2010, ACA has been surrounded by political controversy and administrative changes. To make matters worse, the passing of the Tax Cuts and Jobs Act of 2017 – which, among other changes, zeroed the federal individual mandate penalty – has further added to the confusion.

It’s no wonder, then, that so many employers and HR executives are confused. Don’t worry, though, because in this article we’ll clear any doubts you have about ACA 1095 Rules in 2021.

WHAT IS IRS FORM 1095-C?

A form 1095 is a type of tax form that healthcare insurance providers must submit both to the IRS and their insured.

There are three types of 1095 forms:

Form 1095-A (Health Insurance Marketplace Statement): This is the form submitted by a health insurance marketplace plan provider.

Form 1095-B (Health Coverage): This is the form submitted by small businesses with less than 50 full-time employees.

3. Form 1095-C (Employer-Provided Health Insurance Offer and Coverage): This is the form submitted by Applicable Large Employers (ALE) with at least 50 full-time equivalent employees.

Filing 1095 in 2020 proves an ALE complied with ACA’s Employer Shared Responsibilities Provisions by providing the minimum requirements for ACA compliance during the past year.

IS THE IRS FORM 1095-C STILL REQUIRED?

Yes. Despite the ongoing debate in Congress, ACA is still the law and employers must fully comply with all of its provisions.

Even if the federal tax penalty for the individual mandate is $0, you are still legally obliged to serve your employees their 1095-C form by January 31.

Furthermore, if your employees live in a state with an individual mandate, not providing adequate health insurance would make you liable to both federal and state penalties.

HOW ACA CHANGED IN 2020?

At a state level, many legislators were worried that the repeal of the federal individual mandate penalty would destabilize their local insurance markets.

That’s why – to prevent healthy taxpayers from fleeing the system, leaving only the sick and needy to pay the bills – some states have created individual mandates of their own. Starting in 2020, employers located in a state with an individual mandate will face a penalty if they don’t prove they provided minimum essential coverage to their employees.

WHICH STATES HAVE AN INDIVIDUAL MANDATE?

To date, only a few states have passed their own individual mandates:

California: Became effective starting January 1, 2020.
District of Columbia: Became effective starting June 30, 2020.
Massachusetts: Became effective starting 2006.
New Jersey: Became effective starting March 31, 2020.
Rhode Island: Became effective starting January 1, 2020.
Vermont: Became effective starting January 1, 2020 but has no defined penalties for non-compliance yet.

States considering setting individual mandates in the future include:

Connecticut
Hawaii
Maryland
Minnesota
Washington

WHAT IF MY STATE HAS AN INDIVIDUAL MANDATE?

Before 2019, big employers only needed to give one copy of their 1095-C forms (along with the 1094-C cover sheet) to the IRS and one to their employees for tax-filing purposes. However, now that more states are setting individual mandates, employers must report both to the federal government and each state in which their employees reside.

Since many of the details are being decided, not all states have a clear 1095-C filing process yet. To date, this is a brief outline of how the process looks by state:

California: Employers must file their 1095-C and 1094-forms to the Franchise Tax Board (FTB) by March 31 or pay a fine of $50 for every unreported employee. However, fines can be much higher since they are reviewed on a case-by-case basis and have no set ceiling.
District of Columbia: Employers must file their ACA 1095 forms through the DC Office of Tax and Revenue by April 30. At the moment there are no individual mandate penalties for employers, but they are expected to be developed in the future.
Massachusetts: Employers who must submit a Massachusetts MA 1099-HC form to the Massachusetts Department of Revenue must do so by March 31 or pay a $50 fine per every unreported employee.
New Jersey: Employers must file their 1095-C and 1094-C forms by March 31.
Rhode Island: Though currently the process is still being defined, employers must report all covered individuals to the Rhode Island Division of Taxation by March 31.
Vermont: At the moment, there are no individual mandate penalties for employers.

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As you can see, Obamacare is neither ‘dead’ nor set in stone. On the contrary, ACA will more than likely keep evolving in the future.

So, if you feel overwhelmed by the constant changes, contact us and let us help you navigate ACA’s changing landscape.

What Are the Benefits of Private Health Insurance Over Medicare?

Mon, 08 Feb 2021 19:07:39 GMT

When talking about the US healthcare system, it’s impossible not to draw comparisons between Medicare and private health insurance plans.

Both have set costs for premiums, copayments, and deductibles. However, even though private insurance plans are marginally more expensive, their comprehensive coverage is enough to offset their costs.

In this article, we’ll explore the benefits of private health insurance over Medicare. But before we start, let’s start by defining what Medicare is in 2021.

WHAT IS MEDICARE?

Medicare is a federal health program that covers people who are aged 65 or over, or have a chronic disability or health condition. The program is composed of multiple parts:

Part A (hospital insurance): Covers hospital and hospice care, emergency room visits, and both inpatient and home healthcare.
Part B (medical insurance): Covers preventive healthcare, diagnostic tests, preventive screenings, medical equipment purchases, and treatment costs.
Part C (Medicare Advantage): This is a private health plan offered by insurance companies that bundle Part A and Part B Medicare (also known as original Medicare) into one plan that can also include services like dental and vision care not covered by a traditional Medicare plan.
Part D: This is an add-on plan that offers prescription drug coverage.
Medigap: Are private plans offered by insurance companies that can cover the costs of Medicare premiums and copayments.

As you can see, Medicare itself (Part A and B) offers limited medical coverage. Indeed, the program’s multiple downsides mean it relies on private insurance companies to plug the gaps.

IS ‘MEDICARE FOR ALL’ REALLY THE SOLUTION?

When polled on the subject, many Americans have expressed their support for extending federal health coverage to all citizens. Opinions are strongly divided by partisan lines, though, with as many as 87% of Democrats favoring national healthcare for all.

However, while extending federal health coverage beyond the needy seems good on paper, in practice it has many limitations – namely, the rising taxes and disruption to health coverage it could entail.

We might get nationwide free healthcare in the future, or we might never get it at all. Whatever the outcome is, one thing is for sure: private health insurance has so many benefits that it’s not going anywhere.

BENEFITS OF PRIVATE HEALTH INSURANCE OVER MEDICARE IN 2021

PRESCRIPTION DRUG COVERAGE

One of Medicare’s biggest weaknesses is its lack of prescription drug coverage. Since neither Plan A nor B covers the costs of drugs, individuals must either cover the expenses out of their own pockets or buy a Medicare Part D plan.

However, even Part D excludes certain prescription drugs – such as vitamins or fertility drugs – that are necessary for general health purposes. Private insurance plans, on the other hand, are highly customizable and almost always include prescription drug coverage.

DEPENDENT COVERAGE

Medicare offers affordable health coverage to individuals who are at least 65 or have an eligible health condition. Unfortunately, this coverage doesn’t extend to an individual’s dependents.

Private health plans have no such limitation. Indeed, individuals who buy private insurance can usually extend their health coverage to their loved ones, regardless of their age. Moreover, ACA guarantees that private insurers can’t refuse coverage or charge more to individuals whose dependents have a pre-existing condition.

VISION, HEARING, AND DENTAL CARE

Original Medicare doesn’t cover most vision, hearing, and dental care costs. Covered individuals can solve this issue by buying a Medicare Advantage plan, but this can be a costly solution.

Private health insurance plans, on the other hand, are highly customizable. So whether they need regular eye exams, glasses, hearing aids, or oral surgery, individuals can find plans tailored to their needs.

LIMITED OUT-OF-POCKET COSTS

Private health plans have an in-built out-of-pocket costs limit. Once covered individuals have reached this amount within a calendar year, the private insurer will pay for that individual’s health costs for the rest of the year.

Medicare, on the other hand, doesn’t put a cap on out-of-pocket expenses. So, if an individual needs extended hospitalization but doesn’t have a Medigap plan, all the costs will come out of his/her own pocket.

PRIVATE INSURERS OFFER HEALTHCARE FOR ALL

While the ‘Medicare for All’ debate will likely rage for many years, private insurance will always be there to plug any coverage gap left by the federal government. So regardless of which side of the debate you’re on, make sure you peruse the market until you find a plan that perfectly suits your needs.

Don’t know where to start? Then contact us, and let our benefits experts find the best health insurance plan for your company.

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