Technology: Talking to a Financial Coach Reboots Financial Wellness and Narrows Gender Gap
Original post businesswire.com
In a year marked by increased market volatility and slow economic growth, it’s not a surprise that overall financial wellness levels remained virtually unchanged. Employees appear stuck, hitting a brick wall with debt, lack of emergency funds and inadequate retirement savings. However, the latest study from Financial Finesse shows that the way forward to improved employee financial wellness – and to narrow the financial Gender Gap – could be human-to-human coaching, with technology playing a supporting role.
The Year in Review: 2015, an analysis of employee financial trends based on anonymous data collected by workplace financial wellness firm Financial Finesse, describes a year where most employees have been treading water in terms of their financial wellness. Overall financial wellness levels were unchanged at 4.8 out of 10 vs. 4.7 in 2014.
The study shows that while technology was helpful in increasing employee awareness of their financial vulnerabilities, online interactions alone did not improve employee financial wellness. By contrast, employees who had five interactions including conversations on the phone or in person with a financial planner professional showed substantial progress. Those repeat interactions with a financial coach appear to help an employee get “unstuck,” and advance in key areas. For these regular participants:
- 80% have a handle on cash flow, compared to 66% of online-only users
- 72% have an emergency fund, compared to 50% of online-only users
- 98% contribute to their retirement plan, compared to 89% of online-only users
- 48% are on track for retirement, compared to 21% of online-only users
- 64% are confident in their investment strategy, compared to 42% of online-only users
Employers who offer financial wellness programs consider tailoring communications to address these vulnerabilities in particular:
- 58% may not be saving enough for retirement, with only 16% of Millennials on track to achieve their retirement goals.
- 51% don’t have an emergency fund. While this declines with age, a worrisome 25% of employees 65 and older still don’t have an emergency fund.
- 34% may be living beyond their means. For employees with family incomes of $100,000 or lower, less than half pay off their credit cards every month.
- 33% may have serious debt problems. Debt may be hurting African American and Latino employees the most, with 75% of African American and 66% of Latino employees saying getting out of debt is a top concern.
- Concern over market volatility is high. Many employees grew nervous about their retirement plan savings and turned to their financial wellness program for guidance on how to handle these market fluctuations.
Employee Relations: Electing to Talk Politics at Work has Serious Implications
Original post workforce.com
As the political races unfold in 2016, just about everyone seems willing to share their opinions on candidates, parties and issues — whether they’re asked to or not.
For many of the nation’s workers, this can lead to uncomfortable situations or outright arguments while on the job. Responding with a personal opinion might seem like second nature, but it might also be a risky move careerwise.
Employers generally have the right to limit employees’ political commentary during work time, and many of them choose to do so given the often-heated nature of the subject. Workers should always use common sense when deciding whether to discuss political issues at work, but there are some situations in which employees should definitely steer clear of such talk, such as:
When the business owner or boss is vocal about their own beliefs. It’s a concept that might be shocking to many Americans, but, in many states, private employers may fire workers for their political beliefs.
Under the at-will employment doctrine, in the absence of a contract, employers can terminate employment at any time and for any reason not prohibited by law.
Every state except Montana subscribes to the at-will doctrine.
Under this principle, organizations don’t need “just cause” to fire someone. If local or state law doesn’t prohibit it, private employers generally may terminate an individual because of his or her political beliefs.
Many misinterpret the First Amendment and believe that it applies in all cases related to freedom of speech. The First Amendment only applies to government censorship of speech. As such, it restricts public employers from engaging in this practice.
Most private employers won’t typically terminate employees for their political beliefs. The bad publicity from such actions will typically outweigh any perceived benefits.
Even in states and locations without laws protecting employees’ political beliefs, employers will have to tread a fine line. Some states, like Wisconsin, prohibit employers from taking action on employees’ legal activities, such as running for office or voting. If the discussions are union-related, they might also be protected.
Yet, employees should still be cautious. A business owner or manager who is strongly invested in their political beliefs could discipline or terminate others with opposing viewpoints.
When it wastes time. Many employers recognize that restricting all nonwork-related conversations can have a detrimental effect on morale. But if employees are spending large amounts of time debating the pros and cons of a particular political candidate or issue when they should be working, an employer is going to take notice and possibly take action. Employers generally have control over what employees may and may not do on company property and on work time.
When discriminatory language is involved. Employers have a duty to prevent and address discrimination in the workplace.
If employees are holding inappropriate discussions about a candidate’s sex, age, race, religion, ethnicity or other protected traits, the employer will likely want to take action. A business may be held liable for fostering a hostile work environment if it does not halt such conduct.
Because of the legal ramifications, most employers take discrimination in the workplace very seriously and will respond accordingly. This could include discipline and even termination.
When representing the company. If an employee is passing themself off as a company representative, or even sporting company logos (on a shirt, hat, etc.) while giving a personal interview on the subject of politics, an employer likely has the right to act. Such actions could give customers and others the impression that the employee’s beliefs are those of the company.
Think before speaking. When faced with a workplace situation involving heavy political posturing, it can be hard to consider the effects of statements prior to making them in front of co-workers.
But taking a moment to think about the consequences of certain political discussions before engaging in them might be the best way for employees to safeguard their job.
Employees should consider the career risks of bringing politics to work. The best course of action might be to leave political discussion at the door.
Making Sense of the Alphabet Soup of Healthcare Spending Accounts
Original post benefitnews.com
Employers are passing more and more healthcare responsibility to their employees, and in some cases, giving them a greater share of the financial burden. Likewise, businesses are looking for ways to help employees manage healthcare expenses. There are a number of products for that purpose, and while they’re similar, they’re not the same.
With acronyms being used to explain still-new concepts, it can be difficult for employees to understand the difference between them or even to remember which product they use. It’s important to educate them about these products so they get the most out of them.
Health savings account. A health savings account is like a 401(k) retirement account for qualified medical expenses. An HSA helps people pay for medical expenses before they hit their deductible. Employers and employees can both contribute money tax-free, and the money can be rolled over from year to year with only a maximum annual accrual. All contributed funds can be invested once a specific minimum is met (determined by the bank).
HSA-compatible health plans don’t include first-dollar coverage (except for preventive care), which means employees must meet a deductible before benefits will be paid by a health plan. This deductible is set by the IRS each year; in 2016, high-deductible health plans must have a deductible of at least $1,300 for an individual and $2,600 for a family.
Employees and employers can both contribute funds to build an HSA, and all funds count toward the annual maximum. The employee “owns” the HSA and the money that’s in it.
HSA funds can be spent on qualified medical expenses as outlined by section 213(d) of the IRS tax code, dental, vision, Medicare and long-term care premiums, and COBRA (if unemployed). After age 65, health premiums can also be withdrawn, but are subject to income tax.
Just like a 401(k), the account is portable. If the owner of the HSA changes jobs, the money can still be used for medical expenses, but the employee can no longer contribute to it.
Health reimbursement accounts. HRAs help employees pay for medical expenses before a deductible is met. But unlike an HSA, employees cannot contribute to an HRA, only employers. The money an employer places in an HRA can be used for medical expenses not covered by a health plan, such as deductibles and copays for qualified medical expenses as outlined by section 213(d) of the IRS tax code, dental, vision, Medicare and long-term care premiums. The associated health plan can have any deductible amount — there are no minimums and the plan does not have to be a high-deductible health plan. Unlike an HSA, an HRA is not portable, and funds can’t be used for non-medical reasons, even with a penalty. Funds also don’t typically earn interest and are not invested.
Employers must be more involved with HRA accounts since they are the only party who can deposit money; they also determine if funds can be rolled over from one year to the next.
Flexible spending accounts. FSAs allow employees to defer part of their income to pay for medical expenses tax free as part of a Section 125 cafeteria plan. Allowable expenses include those outlined by section 213(d) of the IRS tax code as well as dental and vision expenses. Both employers and employees can contribute to an FSA; however, the amount employees plan to contribute at the beginning of the year can’t be changed mid-year. FSA funds can’t be invested and fees associated with the plan are normally paid by the employer. There are no underlying plan restrictions and these accounts can be maintained alongside traditional health plans. The employer owns the account and is responsible for the management.
Funds in an FSA can be rolled over only if there is a carryover provision; in this case, $500 can be carried to the next year.
With an FSA, individuals must substantiate need for a reimbursement at the time of service by keeping receipts and filling out a form. Some FSAs include “smart” debit cards that automatically pay certain copays and don’t require documentation.
Determining which is best
HSAs, HRAs and FSAs serve slightly different purposes and can even co-exist in some circumstances. For example, those enrolled in an HSA can contribute to a limited-used FSA. Those enrolled in an HRA can also contribute to an FSA without limitations.
HSAs work well for employers who don’t want to add to administrative burdens or additional costs. And they’re a great way to give employees a way to offset the costs of qualified high-deductible health plans and save for post-retirement health expenses. However, employers may want to stray from an HSA or refrain from fully funding the account early in the year if there’s high turnover at a company; the money deposited goes with the employee when they leave.
For employees, HSAs provide investment opportunity and are portable; they also encourage consumerism and are cost-effective to administer. But one of the biggest advantages is that the employee doesn’t have to pre-determine expenses since unused funds carry over.
HRAs can work well for an employer that is not offering a qualified high-deductible health plan but wants to promote consumerism while self-funding a portion of the risk. The funds contributed are immediately available and completely funded by the employer, which is an advantage to the employee. However, there is no tax advantage to employees and the fund can’t be transferred.
FSAs are the most appropriate for employers offering traditional health plans. Employees benefit because they can contribute pre-tax dollars and the funds are immediately available. But the “use it or lose it” provision is a definite disadvantage for employees.
There are pros and cons to all three funds. It’s best to review them carefully to determine which ones will work for your business, and make sure to communicate the funds’ features and restrictions to your employees.
5 Ways Employers Can Optimize the Value of Maternity Care for Employees
Original post benefitnews.com
For many employers, discussions with employees about pregnancy focus on one topic: maternity leave.
Yet, it is important to remember that length of maternity leave is only one of several important decisions made by an employee preparing for childbirth.
Expecting parents are highly engaged in selecting a provider and developing a birth plan — choices that will ultimately influence the cost and quality of care a mother and her child will receive. For younger employees, a pregnancy, whether their own or their spouse’s, may be the first significant contact he or she has had with the healthcare system, thus underscoring the weight attributed to each decision.
Maternity care is also an important issue for employers, as obstetric admissions are typically the single most common admission in commercial populations. Verisk Health’s normative database shows that on average, a maternity admission costs an employer upwards of $9,000, and pre-natal and post-natal care typically contribute another 20-30% of spend. When you consider that 6% of women between the ages of 19 and 44 have a child each year, the costs add up fast.
Given the importance of maternity care to both employees and employers, the question is how to optimize the value of the care your employees receive.
Understanding the value equation
High risk pregnancies and outlier cases aside, maternity care is a relatively homogenous condition category. However, there is substantial variability in cost. We have observed as high as 50% variation within costs in a single market for vaginal deliveries without complications.
Variations in utilization rates of certain procedures can also increase costs substantially without necessarily improving outcomes.
For example, here in Massachusetts, the Health Policy Commission found 50% variation in Cesarean section (C-section) rates among the top 10 hospitals (by number of discharges). This compounds the issue with hospital pricing, since C-sections can cost as much as 50% more than a vaginal delivery.
In addition to increasing costs, C-section overutilization can also lead to poorer outcomes. According to the American College of Obstetricians and Gynecology, C-sections put the mother at greater risk of infection, heavy blood loss, and surgical complications while simultaneously increasing the newborn’s risk of infection, respiratory issues, and lower APGAR scores.
Elective deliveries and episiotomies are also areas of potential overuse, and their incidence rates can be tracked to gauge the quality of care delivered.
While the American College of Obstetricians and Gynecologists requires 39 weeks of gestation prior to elective delivery, research shows that more than one-third of elective repeat C-sections are not performed in accordance with this guideline. When these guidelines are not followed, newborns are more susceptible to respiratory distress syndrome, temperature regulation issues, high levels of bilirubin, and hearing, vision, and learning defects.
In addition to restricting elective pre-term deliveries, ACOG also recommends restricted use of episiotomies due to the increased risk of muscle tear, bleeding, and infection. However, data indicates that episiotomies are an often used routine obstetrical practice.
Other maternity quality measures reinforce evidence-based standards of care. To reduce a mother’s risk of pulmonary embolism after C-section, ACOG recommends the use of pneumatic compression devices or venous thrombus embolus (VTE) prophylaxis. Likewise, all newborns should be screened for early onset hyperbilirubinemia prior to discharge from the hospital.
Driving greater value: The agenda for employers
Maternity care presents an ideal starting point for value-based purchasing initiatives because it is high volume, clinically homogenous, and exhibits wide variety in cost and quality. While decisions in maternity care will always be driven by patient preferences, here are a few ways employers can help improve the value of care their employees receive:
1. Know the numbers. Analyze your claims data to identify the top hospitals that your employees use, the amount you spend at each facility, and differences in costs between the hospitals. Use the quality measures published in the Leapfrog Hospital Survey to benchmark performance against nationally recognized standards.
2. Spark dialogue with providers. Once you’ve assessed which hospitals provide the best value for maternity care, share your analysis with the most significant facilities. In our experience, several larger employers are using their data to enable more transparent, collaborative conversations. If your presence is smaller, work with a local purchasing group to make your voice heard.
3. Raise awareness among expectant parents. In parallel with sharing data with providers, develop a communication plan to educate your employees about their options. Developing a birth plan is one of the most actively researched healthcare decisions, especially for first time parents. However, the research can often be more focused on the amenities of the facility than quality and outcomes. Since patient engagement is so high for maternity care, it may be easier to drive behavioral change among expectant parents than it is for other health issues often targeted by employers (e.g., weight loss).
4. Champion payment reform. Several state Medicaid programs have adopted innovative episode-based payment systems to reward high-value maternity care. Forward-thinking employers can use model contract language from Catalyst for Payment Reform to help incorporate these types of strategies into their agreements with health plans. According to CPR, payment strategies such as bundled payment and blended payment (a single rate for any type of delivery) can help address the issues associated with overutilization in maternity care.
5. Consider reference pricing and incentives. Long term, employers may consider changing plan incentives to encourage high-value maternity care. For example, an employee might shoulder a greater share of the cost burden for an elective C-section if it is not medically necessary or physician advised. Since personal preference is such a factor in maternity care delivery, this concept will need to be handled with sensitivity.
In many ways, maternity care is a microcosm of the challenges in our healthcare system. We routinely perform “medical miracles,” particularly for neonatal care, and yet there is substantial room for improvement in routine care. By advancing value-based purchasing initiatives, employers can play a key role in helping improve the cost and quality of maternity care.
How to Prepare for a HIPAA Audit
Original post benefitnews.com
The Department of Health and Human Services’ Office of Civil Rights has announced it will be launching phase two of the Health Insurance Portability and Accountability Act audit program. Advisers can help clients prepare by updating policies and procedures, among other steps.
HIPAA provides the ability to transfer and continue health insurance coverage for millions of American workers and their families when they change or lose their jobs, reduces healthcare fraud and abuse, mandates industry-wide standards for healthcare information on electronic billing and other processes; and requires the protection and confidential handling of protected health information.
HIPAA established national standards for the privacy and security of protected health information and the Health Information Technology for Economic and Clinical Health Act (HITECH). This established breach notification requirements to provide greater transparency for individuals whose information may be at risk.
HITECH requires OCR to conduct periodic audits of covered entity and business associate compliance with the HIPAA privacy, security and breach notification rules. OCR began its initial audit in 2011 and 2012 to assess the controls and processes implemented by 115 covered entities to comply with HIPAA.
Phase two of the audit will focus on any covered entity and business associate. OCR will identify pools of covered entities and business associates representing a wide range of healthcare providers, health plans and healthcare clearing houses.
Roy Bossen, partner at Hinshaw & Culbertson LLP, says the law firm he works for is considered a business associate because the firm deals with cases under medical malpractice.
“When we defend a hospital or a doctor, we have access to Protected Health Information (PHI),” Bossen says. “There is requirement in HIPAA for what a business associate must do to protect [PHI] as well.”
Bossen says there is not a specific penalty for not passing the audit; however an entity or business associate could face possible fines for failure of the audit.
“The next phase of the audit will be called a compliance review,” he says. “[Entities and business associates] will require a more in-depth review of what their policies and procedures are, and that could theoretically lead to fines and penalties.”
Bossen stresses that it is important for employers to determine whether they are a covered entity or business associate or if the audit even applies to an employer’s business. An employer that operates their own plan would be considered a covered entity.
Advisers and brokers can assist their clients by making sure employer’s policies and procedures are up to date while also making sure the employer’s practices match-up with the up to date policies and procedures.
“It is not uncommon in any field to have a great policy manual that’s in a nice binder on a shelf or an email document that gets sent out, but nobody practices the organization of what their policies and procedures stipulate,” Bossen says.
The HIPAA phase two audit program will begin the next couple months and should a covered entity or business associate be contacted for a desk audit or onsite audit.
Both audits can take up to 10 days to be reviewed and the auditor will have entity’s final report within 30 business days.
New Concerns for Employer Plan Sponsors Under the Fair Labor Standards Act and ERISA § 510
Original post jdsupra.com
The Affordable Care Act (ACA) anti-retaliation provisions have been in effect for several years, but have so far largely gone unnoticed. Now that employees can get financial assistance through the Health Insurance Marketplace, employers should revisit these provisions and carefully structure their actions to limit potential exposure. In addition, a recent lawsuit brought by employees under ERISA suggests employers should use care when taking employment action that might impact health benefits. As a result, employers and insurers should consider implementing and/or updating and revising their employment policies and procedures now.
Workplace Mindfulness Training Benefits Extend Beyond Individuals
Original post benefitsnews.com
Much of the research demonstrating benefits of mindfulness practice – stable attention, reduced stress, emotional resilience, and improved performance at work – focus on the benefits for the individual practicing mindfulness. But the workplace benefits extend far beyond that: Mindfulness has a huge impact on relationships. We’ve seen this in our work at eMindful, and it’s supported by considerable scientific research.
Humans are relational by nature, and the quality of our relationships deeply influences our health and well-being. The importance of relationships in the work environment is no exception. Satisfaction and performance at work are strongly linked to one’s ability to work well in teams, develop leadership skills, communicate effectively and resolve conflict.
Teamwork
Team performance obviously relies on relationship skills, and mindfulness training that improves these skills affects both the experience and productivity of teams. One study of health care workers found that a mindfulness-based mentoring intervention resulted in better active listening, more patient-focused discussion and collaboration, as well as greater respect among team members. Moreover, the newly learned mindful communication habits seemed to stick; one year later the team members still demonstrated the same skills.
Leadership
Mindfulness has become particularly popular in the business world as a component of leadership training. CEOs and senior executives have revealed that practicing mindfulness helps build leadership skills, connect to employees and achieve business goals.
One study showed that leaders’ mindfulness was associated with employees’ work-life balance, job satisfaction, and job performance. In that same study, employees of mindful leaders also experienced less exhaustion and burnout. The researchers attributed these findings to leaders being more attentive to and aware of employees’ needs, while self-regulating their own impulses and personal agendas.
Studies confirm the idea that mindful leaders are more attuned to their employees’ nonverbal communication, body language and emotions. In one study, more mindful individuals were better able to recognize the emotions displayed on others’ faces. In fact, it is not uncommon for leaders who complete mindfulness training to say communication feels somehow different, like they are truly listening to their employees for the first time.
Communication, conflict management
Much of the improvement in teamwork likely stems from improvement in communication skills and conflict management. Research suggests mindfulness is associated with better conflict management, with less aggressive communication, and better perspective-taking. During conflicts, people who rate higher in mindfulness have been shown to exhibit more positivity in interpersonal interactions, fewer inappropriate reactions, and less hostility. Mindfulness leads people to process events and feedback in a less self-referential or personal way, which fosters greater attention to group outcomes over self-concerns.
In a study of groups without leaders, teams that were randomized to a short mindfulness exercise had better scores on measurements of team bonding, and they performed better as well. These mindfulness-enhanced skills are helpful not only in better teamwork, but also in enhancing negotiation. One study showed that negotiators randomized to a short mindfulness intervention were more successful in distributive bargaining.
Mindfulness may improve negotiations and team functioning by affecting the emotional tone (positivity vs. negativity) of the team. Since mindful individuals tend to be less reactive to negative events, and recover from negative emotions more quickly, they can influence the collective mood and reduce emotional contagion – the tendency for “negative people” to “bring down” the mood of the group. By practicing focused, kind attention and skillful self-management, mindful people tend to influence through example, engaging and inspiring others.
In summary, practicing mindfulness yields personal benefits, and it can benefit everyone around you. Leaders who practice mindfulness listen differently and communicate more carefully. One result is that they have employees who are more productive and report better job satisfaction. Since mindfulness leads to less reactivity, greater focus on others’ needs, and overall positivity, practicing mindfulness also enhances teamwork through better perspective-taking and more skillful self-management. In my personal experience as a coach, clinician and academic researcher, mindfulness makes working relationships more enjoyable and productive. I’m delighted that research is beginning to confirm how the impact of mindfulness on relationships contributes to better business outcomes.
How to Navigate a Consolidating Wellness Market
Original post benefitnews.com
The corporate wellness industry is growing up. And with maturity comes mergers, acquisitions and a flurry of opportunities that can lead to advances in technology and innovation.
Eventually.
Today, the landscape is confusing. Especially for HR and benefits buyers charged with navigating it. Here’s why:
● Large wellness providers are merging with each other to get bigger.
● Aggressive funding rounds are pressuring companies to innovate and grow quickly to meet investor expectations.
● Large wellness providers are acquiring niche solutions to market.
● Providers are building functionalities that go beyond traditional wellness program capabilities.
Corporate wellness certainly isn’t the first HR category to see wild fluctuation periods. All technology markets move through cyclical waves of change, which follow a surprisingly consistent cadence:
● A period of initial growth. Companies launch to compete with one another with similar solution sets, vying for popularity and mind- and market-share.
● A period of growth stymies. Growth hits a standstill due to economic conditions or market saturation.
● A period of consolidation. Larger players acquire market-share and technology enhancements through partnerships and mergers.
The HR world saw this cycle play out with integrated talent management systems in the early 2000s.
Back then, many different providers sold recruiting, performance management and learning technologies. Hundreds in each category competed with one another, and dozens attracted significant funding to try to dominate the market.
In 2007, the talent management market hit its peak. Companies consolidated, some went out of business, and eventually, we were left with a few dominant providers — SAP, Oracle and IBM.
What did these leaders do right during the industry’s tremendous growth cycle? They mastered their core platform capability before moving on to the next stage of an integrated platform.
So SuccessFactors, now a part of SAP, hitched its wagon to performance management and built a complete vision before expanding its talent management offering. Taleo (now with Oracle) and Kenexa (now with IBM) did the same with recruiting and learning, respectively.
Other talent management providers jumped on the integration bandwagon too early. They tried to cover everything ─ but weren’t good at anything. They couldn’t differentiate themselves in a crowded, shrinking market. Most were shut down or acquired.
I don’t know if corporate wellness will follow this exact path. But the history of enterprise technology indicates an inevitable tipping point. Here are my predictions for what’s to come:
1. Consolidation isn’t going away. It’s clear we’re in a phase of consolidation. Larger companies and private equity buyout firms are acquiring smaller companies, and we expect even more mergers and acquisitions to close the capabilities gap across wellness solutions.
2. The pressure’s on for heavily venture-capital-backed firms. Investors see a ticking clock in front of them. Many want their payoff, and they want it fast. The period of market consolidation doesn’t last forever — and the opportunity to quickly expand to get bought is often made at the expense of product stability, support and internal innovation. Exit pressure increases later in the life of a venture fund as well (for all but the most long-term investors).
3. Providers will jump into unfamiliar waters. Companies with niche offerings will try new things. Recognition providers might add well-being and learning services, and performance companies might try to add analytics tools. But merging different companies, cultures, customer-facing teams and approaches can be difficult and time-consuming, and potentially confusing for employees. Even when providers acquire companies that already specialize in purely complementary capabilities, the devil is in the details. Every acquisition takes time to integrate, and every new feature set takes time to develop.
4. Buyers will be frustrated with all of it. If you’re looking for stability and measured outcomes, then the wrong provider can be a nightmare of new account representatives, technology change and product difficulties. Corporate wellness as a category has room to grow into solutions that embrace the whole employee. Choose wisely.
Three things to focus on
It’s not an easy time to choose a long-term wellness partner. But buyers can take precautions to avoid getting swept into the carnage of acquisitions and consolidations. Here are some best practices to follow when you’re purchasing technology in an unsteady environment:
1. Prioritize your needs as an organization. What major issue is your organization trying to solve? In a crowded market, many challenges and solutions exist ─ but you need to prioritize what’s critical to your success. What is your company trying to achieve in the market? What key capabilities do you need to meet your overarching business goals? What features aren’t as important?
2. Address those needs. This seems obvious, but broader platforms often lure buyers into making decisions that compromise on critical areas. The solution you choose should have excellent bench strength in your highest priority area. For instance, if your main goal is improving employee well-being (and related outcomes), look for a partner that specializes in it ─ not a benefits provider with one small well-being feature.
3. Consider integration capabilities instead of a one-size-fits-all. One positive development of the consolidation phase? Companies want to make it easy for you to connect with different services. This means you don’t need a provider that does everything. Choose the (integration-ready) one you love ─ and tailor it to meet your own unique needs.
Choose technologies that meet your core needs rather than finding a provider that claims to do it all. If it seems too good to be true, it probably is. Focus on what’s important to your organization:
● What’s going to improve your employee experience the most?
● Who has the capabilities and people to guide you to your desired outcomes?
● What do you need right now, and what can you wait a few years for?
You are the only one who can answer these questions for your organization. When you do, you’ll find the corporate wellness provider that aligns best with your business strategy – and your employees’ needs.
5 Strategies to Cut Healthcare Costs without Cutting Benefits
Original post benefitsnews.com
For employers, it’s been an ongoing battle to keep health insurance costs down without cutting employee health benefits. According to a PwC report, healthcare costs will remain a challenge in 2016 as costs are expected to outpace general economic inflation with a 4.5% growth rate.
There is no single culprit in the battle against rising healthcare costs; rather, there are many drivers contributing to the increase. Soaring prices for medical services, new costly prescription drugs and medical technologies, paying for volume over value, unhealthy lifestyles and a lack of transparency concerning prices and quality are all factors contributing to the spike in premiums.
So what can you do?
It can be a difficult juggling act to keep your health insurance premiums from financially squeezing your business, while also providing a robust benefits package for your employees. However, you may have more options for controlling your company’s healthcare costs than you realize. With the right knowledge and planning, there are ways to keep health insurance costs from derailing your company’s profits while also providing your workforce with the benefits they need.
Here are five strategies to cut costs without minimizing the benefits offered to employees:
1. Level-funding company healthcare costs.
In between a traditional fully insured plan and a traditional self-funded plan lies an innovative solution known as level-funding.
Traditional fully insured plans are contracts between the employer and the insurer where the employer pays a predetermined and fixed amount per employee per month (PEPM) and the insurer assumes the financial (claims) risk, net of employee co-pays and deductibles.
Traditional self-funded plans are one in which the employer assumes the financial (claims) risk for providing healthcare benefits to its employees. In practical terms, self-insured employers pay for each out-of-pocket claim as they are incurred, and the model is almost always is packaged with stop-loss insurance in case of large claims.
Level-funding is a hybrid of the two aforementioned plans, whereby the plan is filed as a self-funded plan, but the employer is billed each month a fixed and unchanging premium per employee per month, and after a year or two may qualify for a refund of premium if claims were lower than expected, or receive a proposed increase to premiums at renewal if claims were higher than expected. Since these plans are filed as self-funded, they are typically exempt from state taxes and many of the federal healthcare law’s health insurance taxes, but subject to a modest annual transitional reinsurance fee.
Additionally, according to data from the U.S. Department of Health and Human Services, nearly 30% of employers with between 100 and 499 employees self-insures their benefits, and over 80% of employers with 500 or more employees self-insure their benefits.
2. Provide a proactive wellness initiative.
Health and wellness programs have become popular ways for employers to manage healthcare costs — and some companies are finding that employees are more engaged in these programs when they’re offered incentives, rewards or even disincentives for participating or attaining certain health-related goals. Some companies are also seeing an impact of incentives on their program ROI.
For wellness programs to be effective, they need to be robust and allow for individual needs and interests. Wellness programs need to be comprehensive and tailored to individuals; meeting them where they are and helping them keep their healthy goals and ambitions in check with robust resources.
One other important aspect of having an effective wellness program is measuring employee engagement. By determining their level of inclusion, employers can understand how to implement incentive-based initiatives for the future. And remember, leading by example is important to make your employees feel comfortable.
3. Implement tax-advantaged programs.
Tax-Advantage benefits programs allow for a reduced cost of living for employees by handling expenses using pre-tax dollars. This method ensures the use of money that is valued at 100% of a wage or salary, instead of paying with funds that are devalued due to taxation.
There are four major types of programs that utilize this method: flexible spending accounts (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs) and premium offset lans (POPs). Each program offers a different process for healthcare payments that involves both employers and employees, and can lighten the burden of rising medical expenses.
4. Use a flexible contribution arrangement (FSA).
Elaborating further on the aforementioned benefit programs, FSAs enable employees to collect and store money that can be used for medical expenses tax-free. FSAs may be funded by voluntary salary reductions with an employer, and there is no employment or income tax enforced.
Another benefit of FSAs stems from the ability of employers to make contributions towards an account that can be excluded from an employee’s gross income. From an employee’s mindset, an FSA allows for flexibility and a metaphorical safety net in case of a medical emergency.
5. Use deductible exposure mitigation vehicles (HRAs).
A health reimbursement arrangement is another tax-advantaged employer health benefit plan that can trim your tax bill and reduce the cost of medical services.
HRAs are an employer funded medical expensed reimbursement plan for qualifying medical expenses. These plans reimburse employees for individual health insurance premiums and out-of-pocket medical expenses. They allow the employer to make contributions to an employee's account and provide reimbursement for eligible expenses. All employer contributions are 100% tax deductible when paid to the participant to reimburse an expense. They are also tax-free to the employee.
Based on the plan design, HRAs can be an excellent way to supplement health insurance benefits and allow employees to pay for a wide range of medical expenses not covered by insurance.
What works, what doesn’t
It’s crucial to educate employees on available tools and programs — by doing so you can control costs, while simultaneously providing appropriate benefits and employee engagement. To make the most out of a conscientious business decision, take the time to understand what is and isn’t working for you on your current plan, and what your other options are.
By adopting these new healthcare benefit strategies, you are engaging your workforce and enabling them to have an active role in determining an appropriate course of action.
A proper benefits partner maintains track of legislation and regulatory changes, advocates for small to mid-sized businesses and has the expertise to prevent violations from unforeseen rules and laws. By enabling these programs and using the right benefits partner, you can see your company’s healthcare costs lower substantially.
Top 11 Employer FMLA Mistakes
Original post shrm.org
Employers should never take a holiday from dealing with the Family and Medical Leave Act’s (FMLA’s) requirements. Legal experts say the law is full of traps that can snag employers that let their guard down, and they recommend that employers shore up FMLA compliance efforts by avoiding the following common missteps.
No FMLA Policy
Employers shouldn’t skip having a written FMLA policy, Annette Idalski, an attorney with Chamberlain Hrdlicka in Atlanta, told SHRM Online. “If employers adopt a written policy and circulate it to employees, they are able to select the terms that are most advantageous to the company,” she said. For example, employers can choose to use a rolling 12-month period (rolling forward from the time any leave commences) rather than leaving the selection of the 12-month period to employees, who almost inevitably would choose the 12-month calendar period. The calendar period, unlike the rolling period, allows for employees to stack leave during the last 12 weeks of one year and the first 12 weeks of the new year. Check to see if state or local laws give employees the right to choose a 12-month period that would give them the right to stack leave.
Counting Light-Duty Work as FMLA Leave
Idalski said employers also often make the mistake of offering light-duty work to employees and counting it as FMLA leave. Light-duty work can be offered but must not be required in lieu of FMLA leave. For example, an employer can offer tasks that don’t require lifting to an employee who hurt his or her back and cannot perform heavy lifting. But if the worker wants the time off, the individual is entitled to take FMLA leave.
Silent Managers
Managers sometimes fail to tell HR right away when an employee is out on leave for an extended period, Idalski noted. If a manager waits a week to inform HR, that could delay the start of the 12-week FMLA period. The employer can’t make the FMLA leave retroactive, and letting the employee take more than 12 weeks of leave affects staffing and productivity, Idalski said. “Management must initiate the FMLA process with HR right away,” she emphasized.
Untrained Supervisors
Untrained front-line supervisors might retaliate against employees who take FMLA leave, dissuade workers from taking leave or request prohibited medical information, all of which violate the FMLA, said Sarah Flotte, an attorney with Michael Best & Friedrich in Chicago. Just because front-line supervisors shouldn’t administer FMLA leave doesn’t mean they shouldn’t be trained on the FMLA, she noted.
Missed Notices
Employers sometimes fail to provide required notices to employees, Flotte said. “The FMLA requires employers to provide four notices to employees seeking FMLA leave; thus, employers may run afoul of the law by failing to provide these notices,” Flotte remarked. Employers must give a general notice of FMLA rights. They must provide an eligibility notice within five days of the leave request. They must supply a rights and responsibilities notice at the same time as the eligibility notice. And employers must give a designation notice within five business days of determining that leave qualifies as FMLA leave.
Overly Broad Coverage
Sometimes employers provide FMLA leave in situations that are not truly FMLA-covered, such as providing leave to care for a domestic partner or a grandparent or sibling, noted Joan Casciari, an attorney with Seyfarth Shaw in Chicago. If they count that time off as FMLA leave, this could prove to be a violation of the law if the employee later has an event that is truly covered by the FMLA, she said. But the leave may count as time off under state or local FMLA laws, depending on their coverage.
Incomplete Certifications
Casciari added that employers sometimes accept certifications of a serious health condition that are incomplete and inconsistent. In particular, she said that businesses sometimes make the mistake of accepting certifications that do not state the frequency and duration of the intermittent leave that is needed.
No Exact Count of Use of FMLA Leave
Another common mistake is failing to keep an exact count of an employee’s use of FMLA leave, particularly in regards to intermittent leave, said Dana Connell, an attorney with Littler in Chicago. This failure is “highly dangerous,” he stated. An employer might give the employee more FMLA leave than he or she is entitled to. “The even greater risk is that the employer counts some time as an absence that should have been counted as FMLA, and that counted absence then plays a role—building block or otherwise—in an employee’s termination.”
No Adjustment to Sales Expectations
Some employers take too much comfort in an FMLA regulation that says that if a bonus is based on the achievement of a specific goal, and the employee has not met the goal due to FMLA leave, the payment of the bonus can be denied. “Notwithstanding that regulation regarding bonuses, courts have held that employers need to adjust sales expectations in assessing performance to avoid penalizing an employee for being absent during FMLA leave,” Connell emphasized.
Being Lax About FMLA Abuse
The FMLA is ripe for employee abuse, according to Connell, who said, “Some employers, especially in the manufacturing sector, find themselves with large numbers of employees with certified intermittent leave.” Those employers need a plan to keep all employees “honest with respect to their use of FMLA.” Connell said that surveillance may be a necessary part of an employer’s plan for dealing with potential FMLA abuse.
Overlooking the ADA
Employers sometimes fail to realize that a serious health condition that requires 12 weeks of FMLA leave will likely also constitute a disability under the Americans with Disabilities Act (ADA), noted Frank Morris Jr., an attorney with Epstein Becker Green in Washington, D.C. Even after 12 weeks of FMLA leave, more leave may be required by the ADA or state or local law as a reasonable accommodation.
“Document any adverse effects on productivity, ability to timely meet client demands and extra workload on co-workers resulting from an employee on extended FMLA leave,” Morris recommended. While the FMLA doesn’t have an undue hardship provision, “The information will be necessary for a proper analysis of whether any request by an employee for further leave as an ADA accommodation is reasonable or is an undue hardship” under the ADA.
- See more at: https://www.shrm.org/legalissues/federalresources/pages/top-11-employer-fmla-mistakes.aspx#sthash.kOREknrz.dpuf