Online job searching has doubled since 2005
Original post by Roy Maurer, shrm.org
U.S. job seekers are as likely to look for jobs online as they are to rely on friends and other contacts for connections to the job market, according to a recently released survey.
The survey on the job search methods of 2,001 U.S. adults by the Pew Research Center found that a majority of Americans (54 percent) have researched jobs on the Internet, and nearly as many (45 percent) have applied for a job online. That’s more than double the number from 2005, when 26 percent of Americans told Pew they had used the Internet to look for jobs.
Of recent job seekers—defined as the 34 percent of Americans who’ve looked for a job in the last two years—79 percent reported using resources or information they found online, while 80 percent used professional contacts and personal connections to find work.
“It’s an essential message for recruiters: Job seekers are getting their information about your jobs and your company from the Internet,” said Aaron Smith, associate director of research for Pew.
“I have been sourcing candidates online since 1997 and it has become incredibly easy to locate candidate information online with the boon of social media,” said Kelly Dingee, director of strategic recruiting at Staffing Advisors, a search firm headquartered in the Washington, D.C., area.
Recent job seekers also used employment agencies (32 percent), print advertisements (32 percent) and job fairs (28 percent) to find work.
Americans with higher educational levels are especially likely to use the Internet to seek employment, the survey found. Nearly 9 in 10 (88 percent) of those who are college graduates went online to look for a job, compared with 77 percent of those who attended but didn’t graduate from college, and 69 percent of those who’ve never been to college.
Those who are better educated were also more likely to have relied on professional connections in their most recent job search. Nearly three-quarters (72 percent) of college graduates did so, compared with 59 percent of those who’ve attended but not graduated from college, and 57 percent of those who’ve never attended college.
Some Lack Confidence in Online Job Search Skills
These days, many resources for job seekers are posted online and employers often expect applicants to find and apply for jobs using the Internet, e-mail or mobile applications.
“Employers push jobs out everywhere, through every social media outlet, job boards, their websites and so on,” Dingee said. “For a job seeker who just wants to take a look and see what’s available, the challenge now is, ‘Where do I look? Google? LinkedIn? CareerBuilder?’ ”
Pew found that a sizable minority of Americans lack confidence when it comes to basic computer-based job search skills such as creating a resume for online use, using e-mail to contact potential employers or filling out a job application online.
Some 17 percent of Americans said it wouldn’t be easy for them to create a resume for online use. Another 21 percent said it wouldn’t be easy to highlight their employment skills using a personal website or social media profile. Roughly 1 in 10 said it would be difficult to find available jobs online or fill out a job application online, use e-mail to contact or follow up with a potential employer, or look up online services that assist job seekers. The percentages were larger among those who have not attended college and those who are currently unemployed.
Dingee stressed the importance of creating a professional online profile. “A LinkedIn profile is a no-brainer,” she said. It should be detailed and users should spend time cultivating a network. “Many employers enable job seekers to submit their LinkedIn profile or a resume these days. Imagine if you’re applying from a mobile phone, which is easier to submit?” Dingee asked.
Don’t Overlook Growing Mobile and Social Opportunities
The percentages of Americans searching and applying for jobs using mobile devices and social media is the survey’s other big takeaway.
Some 28 percent of job seekers—including 53 percent of 18- to 29-year-olds—have used a smartphone as part of a job search. Among these Americans who have looked for a new job in the last two years:
- 94 percent have used a smartphone to browse or research job listings.
- 74 percent have used a smartphone to e-mail about a job.
- 50 percent have used a smartphone to fill out an online job application.
- 23 percent have used a smartphone to create a resume or cover letter.
“Mobile use will continue to change recruiting,” Dingee said. “As recruiters we have to make it easier for job seekers to find, apply for and share the jobs we have available.”
More than 1 in 3 social media users have relied on social media to research jobs and have used social media to tell friends about available jobs where they work. About 1 in 5 have applied for a job they learned about through social media, and 13 percent of social media users say information they’ve posted on social media helped them get a job.
“Younger users are especially active at utilizing these platforms for employment-related purposes, but many older users are taking advantage of social media when looking for work as well,” Smith said. “Roughly one-quarter of social media users ages 50 and older have used these platforms to look for work or to let their friends know about job openings, and 11 percent of older social media users have applied for a job they first found out about on social media.”
The Dish with Mike Plattenburg
January's Dish serves up Saxon's Mike Plattenburg's favorites. For the nights you want to stay in, it's all about the comfort of a 3 cheese Mac & Cheese. And for the nights you don't feel like cooking, Plattenburg recommends his favorite Turkish restaurant, Pasha Grill.
Kraft-Free Mac & Cheese
Prep: 20 minutes
Cook: 25 minutes
Ingredients:
- 2lbs of macaroni pasta
- 1lb of Wisconsin Cheddar cheese
- 1lb of Gruyere Cheese
- 1lb of Fontina Cheese
- 2 quarts of Heavy Whipping Cream
- ¼ cup all-purpose flour
- 1tsp salt
Directions:
- Shred all three types of cheeses and add to a large mixing bowl.
- Add ¼ cup of flour in small increments, tossing the cheese each time you add flour. Cheese should be lightly coated. Set aside.
- In a large pot, add water to about half the depth of the pot.
- Add salt and bring to a boil.
- Add pasta, cooking for about 6-7 minutes or until Al-Dente. Strain, run under cold water, stirring in strainer to stop cooking process.
- In a large pot, add half a quart of heavy cream and 1 cup of cheese and bring to a medium heat.
- Once cheese begins to melt, add cheese and heavy cream in equal parts, until all cheese is melted and makes a creamy sauce.
- Once cheese is saucy, add in macaroni noodles, fold in noodles, heat, and serve.
- For an added touch, add a sprinkle of chopped chives and bacon pieces on top when served.
Absolutely the best meal to have on a cold winter’s night, or while watching the game with family and friends! Quick, easy, and delicious! Bon Appétit!
Pasha Grill
72 Plum St.
Beavercreek, OH 45440
When I go out, I go for something that is not easily made at home. I love to cook, so that’s pretty hard to come by. However, the authentic cuisine at Pasha Grill in Beavercreek, Ohio hits the mark.
If you are into traditional Turkish cuisine, then this is the place for you. I recommend the moussaka, which is an eggplant based lasagna with béchamel and mozzarella cheese.
Pasha Grill also boasts several types of kebobs that are perfect for any occasion, whether for celebrating a promotion or spending time with old friends. Pair it with a Yeni Raki, Turkey’s national anise liqueur, for the true Turkish immersion experience!
10 best states for employer-provided retirement plan participation
Original post benefitspro.com
Where you live makes a big difference when you’re trying to save for retirement. It’s not just a matter of a state’s cost of living, or taxation on retirees, or even how well or poorly educated its citizens are financially.
Instead, according to analysis from the Pew Charitable Trusts, it’s access to, and participation in, a retirement plan—which varies greatly depending on locale.
In its report “Who’s In, Who’s Out: A Look at Access to Employer-Based Retirement Plans and Participation in the States,” Pew found that both access and participation are highest in the Midwest, New England, and parts of the Pacific Northwest, but lower in the South and West.
In addition, Hispanic workers are at a disadvantage compared with white non-Hispanics, with just access to a plan for the former running 25 percentage points behind the latter.
Black and Asian workers also have less access to a plan than non-Hispanic whites.
For a look at the 10 best states for participation in an employer-provided retirement plan, read on.
1. Minnesota
With a 69 percent rate of access to employer-provided plans, Minnesota has a 61 percent participation rate.
Nationally, the access rate is just 58 percent, which means Minnesota stands out nearly at the top with the second-highest rate in the country.
And Minnesotans take good advantage of it—they’re tied for the highest participation rate nationally.
2. Wisconsin
Wisconsin’s rate of access is even higher than Minnesota’s, at 70 percent, but its residents participate at the same 61 percent rate.
Sadly, although that rate of access is high, it means that more than 400,000 workers did not have access to a plan.
And another tidbit in the good-news-is-still-bad-news category: the report also said, “the estimate of the number of workers without access to a workplace retirement plan is conservative, because the analysis focuses only on full-time workers employed throughout the year. About 18 percent of those who are employed work part time; retirement plan access and participation are substantially lower among part-time and seasonal workers.”
3. Iowa
With a 68 percent rate of access and a 59 percent participation rate, Iowans are still fortunate to be in the top 10.
It’s also the state with the smallest percentage of workers employed in the leisure and hospitality industry, which doesn’t have a terrific track record of providing retirement benefits for its workers.
In fact, out of nine employment sectors ranked last July, it was at the bottom—with just 23.3 percent of the sector’s firms providing access to a retirement plan.
And only 34.5 percent of the sector’s employees with access actually manage to take advantage of it.
4. North Dakota
Sixty-eight percent of North Dakota firms provide a retirement plan for their employees, and 59 percent of the state’s employees avail themselves of the opportunity.
The good news here is that North Dakota has the fifth largest worker population under the age of 30—and a high participation rate in this state implies that young workers are actually managing to save something for their retirement.
That’s not something millennials are generally known to do.
The report said, “The gap between access and participation proved largest among the youngest workers, many of whom face savings challenges even when they have access to retirement plans.”
5. Connecticut
Considering that almost half of Connecticut’s workers are between the ages of 45–64, it’s a good thing that the state has 66 percent of employers providing access to a plan, and 58 percent of employees participating.
The Northeast in general has a higher concentration of older workers.
Connecticut is also fortunate in that it’s among the 10 states with the lowest number of workers with limited education—just a high school diploma or less.
The less educated a worker is, the more likely he is not to have access to an employer-sponsored retirement plan—and participation follows the same pattern.
6. New Hampshire
With 66 percent of New Hampshire’s employers providing a retirement plan, and 58 percent of employees participating—the same levels in each as in Connecticut—the state also stands out for having the second-lowest number of jobs in the leisure and hospitality industry, known for its poor numbers in providing access to retirement plans.
It also has the lowest percentage of workers (12 percent) who make less than $25,000 annually in wage and salary income.
That’s fortunate for workers, since only about 32 percent of those in that income bracket even have access to a plan and only 20 percent of those with access say they participate.
7. Indiana
Indiana distinguishes itself with the highest “take-up” rate in the country: the percentage of workers who reported having access to a workplace retirement plan and were participating in that plan.
Overall, 63 percent of the state’s employers provide access to a plan, and 57 percent of the state’s workers participate in one—but, among the population with access to a plan (as opposed to all workers within the state), 90 percent of those in Indiana participate.
But, the study cautions, that doesn’t necessarily mean that they’re saving for retirement.
Pew pointed out that “many Americans use retirement plan savings for purposes other than retirement” and “[m]any people withdraw savings before retirement to meet large expenses, such as buying or repairing a house, consolidating bills, or paying educational and medical costs.”
8. Delaware
Delaware, with 63 percent of its employers offering a plan and 56 percent of its workers participating in one, has more than the median percentage of workers with a high school diploma or less.
There are fewer than the median percentage of workers with wage and salary incomes of $25,000 or less in Delaware, which undoubtedly helps its participation rate.
Its workers also tend to be older; it has fewer than the median percentage of workers under age 30.
9. Kansas
Kansas has the third highest percentage of workers under age 30—more than a quarter of its workforce.
Yet it still has a high participation rate of 56 percent, and 66 percent of its employers provide access to a plan.
10. Maine
Sixty-seven percent of Maine’s employers provide access to a retirement plan for their workers, and 56 percent of Maine workers participate in a plan.
The state also is one of the Northeast states with a high concentration of workers aged 45–64. Fewer than 5 percent of its workers are Hispanic.
Wellness program wins in federal courtroom
Employers use wellness programd to encourage employees to be aware and in control of their health.
The implementation of wellness programs have come under fire from the Equal Employment Opportunity Comission in the last several months. Lawsuits filed by the EEOC claim wellness programs that require health risk assessments violate the Americans with Disabilities Act.
One of the claims raised involved Wisconsin based Flambeau, Inc., and the decision in the case stands in favor of the wellness program.
As laid out by the National Law Review, the manufacturing company mandates employees to complte a health risk assessment and biometric screening to be eligible for its health plan. If an employee does not complete the requirement, then the employee becomes responsible for the full premium in order to stay covered.
The EEOC alleged in the lawsuit that when an employee did not complete the assessment and biometric testing, Flambeau cancelled his medical insurance and shifted the responsibility of the entire premium cost to him.
The EEOC argued that the biometric testing and health risk assesment constituted "disability-related inquiries and medical examinations" that were not job-related and consistent with business necessity as defined te the ADA. The EEOC also argued the plan was not a "voluntary" plan and that Flambeau did not qualify for the "safe harbor" protections set forth by the ADA.
In her ruling, U.S. District Judge Barbara Crabb ruled Flambeau was not in the wrong in implementation if its voluntary company subsidized health insurance plan. The judge ruled Flambeau fell under the law's "safe harbor" provisions because the mandatory health assessment and biometric testing were conditions for employees to voluntarily receive the insurance offered by the company.
This decision applies to wellness programs that are part of the employer's benefit plan. How it applies to stand-alone or other wellness programs is not seen at this time.
The EEOC may seek out an appeal in the case.
Saxon Financial Services qualified as a Top Financial Advisor by Cambridge
Jamie Charlton, an independent financial advisor with Saxon Financial Services, has qualified for Cambridge Signature Club 2016.
This qualification was announced by his independent broker-dealer, Cambridge Investment Research, Inc. (Cambridge), one of the largest privately owned independent broker-dealers in the U.S.
Qualification for Cambridge Signature Club honors a financial advisor’s independent business accomplishments in delivering some of the highest levels of client service while reflecting Cambridge’s core values of integrity, commitment, flexibility, and kindness. Distinction as a member of Cambridge Signature Club 2016 includes a special invitation to Amelia Island, Florida, May 4 - May 7, 2016.
“Qualifying for Signature Club is an honor and we are pleased to present Jamie Charlton with this recognition,” said President Amy Webber. “Cambridge Signature Club will bring together similar qualifying advisors in Amelia Island for celebration, educational events, and networking opportunities. These events mean so much to all of us because they give us an opportunity to gather together and share our passion for serving clients.”
The conference will focus on renewing a commitment to excellence in serving clients, unwavering dedication to independence, and the ability to deliver objective advice to clients. In addition to celebrating this achievement with industry speakers and information sessions, Signature Club members will engage in various networking lunches and dinners. Cambridge’s senior executives will serve as hosts for Signature Club.
“We at Saxon Financial Services want to thank our clients for choosing us as their financial professional. We sincerely appreciate their trust in Saxon and their confidence that we will provide them with unbiased recommendations and impartial guidance based on their needs and goals. I appreciate being named to Cambridge’s Signature Club, especially as a reflection of our shared values and dedication to serving clients, and I enjoy the opportunities to share experiences with my peers who are also independent financial professionals,” expressed Charlton.
12 ways to make your workplace better for your health
If health is on your resolution list for 2016, don't forget to include your workspace in the plans. Working from home or sitting in an office cubicle can cause stress, keep you sedentary and add to unhealthy habits you're trying to break.
Health.com offers 12 things you can do to make your workplace better for your health and wellbeing.
Remind yourself to sit less:
People who work at desks should stand or walk around for at least two hours a day to avoid health risks related to too much sitting, according to a 2015 British study. "Moving around throughout your workday is really important," says Robert Graham, MD, director of integrative health and wellness for Northwell Health System, in Great Neck, NY. "Not only is it good for you physically, but studies show that it can increase productivity and more likely to focus on the task at hand."
Computer programs like Move for iOS or Big Stretch Reminder for Windows can remind you to take breaks at regular intervals; some even provide suggestions for stretches and exercises you can do at your workspace. Can't install software on your work machine? Download an app to your smartphone, or use the free website RegularBreaks.com.
Clear the air:
It's not unusual for office environments to trigger what's known as occupational allergies—sensitivities to chemicals in carpet, office furniture, or paint, for example, that can trigger problems like headaches and rashes. And even if you don't have physical symptoms, it's possible that stuffy air in your workplace could be hampering your brainpower: In a 2015 Harvard University study, offices with increased ventilation and lower levels of air pollutants were linked to better employee performance.
You may not be able to change furnishings or ventilation system at your job, but perhaps you can let in some fresh air by keeping windows open while you work. If that's not an option, consider getting an air purifier with a HEPA filter for your desk.
Try a standing desk:
If your workplace allows it, switching to a standing desk can help you sit less and move more during the day. But being on your feet all day can also lead to aches and pains, so look for a setup that allows you to adjust the height or your work station and use a chair when needed.
You can even make a DIY standing desk if you don't have the space or resources for a real one; just be sure to keep your computer monitor at eye level, and your arms bent at 90 degrees to reach the keyboard, to avoid neck and arm pain.
Paint your walls green:
Shades of green have been linked to enhanced creative thinking, says Sally Augustin, PhD, an environmental psychologist and principal at Design With Science. "And most of us have to be creative at work, whether we're coming up with a new advertising slogan or figuring out how to analyze data on a spreadsheet in a different way," she says. To get the most out of your walls, choose a hue that's quiet and calming—like a sage or sea-foam green. "Colors that aren't very saturated but relatively bright put us in the right sort of relaxed mental state to be doing knowledge work."
Can't paint your space? Wallpapering your cube with a green backdrop or adding green elements to your desk may also be helpful, Augustin says. And whatever you do, she adds, avoid red; it's been shown to negatively affect analytical performance.
Add a plant:
Bringing nature into your office can be a great way to inspire creativity and a feeling of wellness, says Augustin. "Plants are great from a psychological perspective," she says. "You don't want to pack too many into a small space, but it can be great to have a small plant on your desktop, or something a little larger in the corner of your office."
Opt for green, leafy plants, rather than cacti—whose spikes can create the opposite of a relaxed feeling—or flowers with a strong scent, which can be distracting or irritating. Some plants, like the sansevieria, may even improve air quality in your office.
Display (a few) personal items:
Decorating your desk can help you feel comfortable, which can reduce workplace stress and dissatisfaction, Augustin says. But to avoid a cluttered feeling, which can actually cause more stress, stick with just a few items.
"Pick out three or four things that are significant to you—like a family photo or an award you're particularly proud of—and make sure those are in your view," she says. "But remember that the more stuff you add to your desk, the more your brain has to constantly scan and keep track of. Working in a crowded space can be mentally exhausting, even if you don't realize it."
Use aromatherapy:
The smell of citrus can lift your spirits and improve thinking and memory, says Augustin. "I like to keep an aromatherapy dispenser on my desk that makes my work area smell like lemon," she says.
Skip candles and air fresheners that use artificial scents (and release potentially irritating chemicals), and opt for an essential oil diffuser that delivers a subtle, natural aroma. Keep in mind, though, that any scent may cause irritation or allergic reactions. If breathing in a scent all day bothers you, try sucking on lemon candies while you work, instead.
Stop eating at your desk:
"One of the most important things you can do during the work day is to not eat at your desk," says Dr. Graham. "Have a dedicated area where you can go to get out of your own environment and have lunch, preferably with other people, so you can truly get that break during the day."
Sitting down to lunch away from your desk won't just keep crumbs out of your keyboard; it can also help reset your brain for an afternoon of productivity. Plus, it can stop you from eating mindlessly while you work or surf the Internet. "We are not great at multi-tasking," says Dr. Graham. "If you're eating while distracted, you are much more likely to overeat."
Pay attention to posture:
Sitting all day isn't the healthiest thing for you, but slouching all day is even worse. "Posture is very important, both to health and to workplace performance," says Dr. Graham. "Sitting up tall gives you a sense of accomplishment, while slouching and slumping make you feel tired and lazy." On top of that, hunching over a computer is a leading cause of back pain.
Invest in (or ask your boss to provide you with) an ergonomic desk chair that supports correct posture. You can also try a gadget like the Lumo Lift, a tiny sensor that pins to your shirt and vibrates when it senses you slouching forward.
Squeeze in mini workouts:
Even if you can't fit in a full workout over your lunch break, you can still do some simple stretches and strength moves right in your office. Keeping small workout props, like hand weights or resistance bands, within eyesight can encourage you to take exercise breaks throughout the day. "And even if you don't have equipment, you can do things like chair yoga or standing push-ups, using nothing but your office furniture," says Dr. Graham.
Sitting on an exercise ball can also help engage your core muscles while you work, but make sure you don't slouch forward while you're using it. To keep this trick from backfiring, swap out your desk chair for just 10 to 20 minutes at a time and pay close attention to your form.
Take your pet to work:
Allowing people to bring their dogs to work reduced job stress and boosted employee satisfaction in a 2012 study from Virginia Commonwealth University. And it wasn't just dog owners who benefited from the pet-friendly policy; other employees who came into contact with the animals reported less stress, as well.
"Of course, it is important to have policies in place to ensure only friendly, clean and well-behaved pets are present in the workplace," the study authors said in a university news release; it's also important to take into consideration coworkers who may be allergic to pets.
Adjust your lighting:
Getting natural light during the day is ideal, so your best bet is to sit near a window if possible. In fact, people with windows in their offices get better sleep and are more physically active than those without, according to a 2013 study from Northwestern University. "Being exposed to daylight helps keep your stress levels and your circadian rhythm in check," Augustin says.
If windows aren't an option, consider the temperature of your office lighting. "Cooler, bluish light is generally good for analytical thinking, while warmer bulbs are better for socializing and interaction with other people," says Augustin. Having a desk lamp you can turn on and off, rather than just one overhead light, can also help reduce eyestrain.
ACA compliance: What does the future hold?
Original post by Alden Bianchi, eba.benefitnews.com
The Affordable Care Act’s reporting requirements are challenging in thace extreme. Carriers and employers, and their vendors, service providers and strategic partners, have scrambled up a steep learning curve. And in a few short months — a few more than originally anticipated as a result of Notice 2016-4 — compliance will begin in earnest.
Here are some predictions about how we expect compliance to unfold:
1) MEC reporting will work as advertised — for the most part. For purposes of the reporting of minimum essential coverage (MEC) under Code 6055 on Forms 1094-B and 1095-B, carriers are largely relying on home-grown software. MEC reporting in the case of fully-insured plans has its challenges, principally relating to data collection. But the regulatory regime is not all that complex.
As a consequence, there is no reason to anticipate that these systems will not work, i.e., that the inputs and outputs will match the requirements of the law and applicable regulations even if the particulars of the “black box” vary from carrier-to-carrier. Expect a good deal of finger pointing over the timely collection of correct information, however, particularly as it relates to social security numbers. One hopes that the extensions of time provided by Notice 2016-4 will go a long way toward alleviating this problem.
2) Software solutions for applicable large employers may work and will converge. Where applicable large employers are concerned, the level of reporting complexity rises exponentially. (Just compare the Forms 1094-B and 1095-B to the Forms 1094-C and 1095-C to see why.) There are currently a good number of expert systems available to employers to assist with their reporting obligations. As best we can tell, vendors have generally been diligent in their efforts to beta test their products. But none of these products has yet been tested live and in real time with real data.
The software solutions for reporting by applicable large employers under Code 6056 have for the most part been developed by third parties, including payroll companies, brokers, venture-funded and other start-ups, industry-focused organizations, and interested tinkerers, among others.
In contrast to MEC reporting, these products are not at all uniform. Some favor particular compliance approaches. For example, it is not uncommon for vendors to strongly urge or require customers to use the Federal Poverty Line affordability safe harbor. This simplifies the reporting on Form 1095-C, Part II, Line 15, but at a cost to employers.
Others lack full functionality relating to transition rules. This will change as vendors gain experience and the industry consolidates. In time, these software products will converge such that the inputs and outputs will align seamlessly with all of the requirements of the law and applicable regulations.
3) For employers, the first year will be chaos. The run-up even to the now delayed reporting deadline will involve a good deal of frantic, last-minute effort. Employers have been asked to respond to detailed data requests from their vendors to provide information from disparate sources, e.g., payroll, HRIS, and the employer’s group health plan, among others.
Complicating matters is that some vendor requests ask for information that is not necessary to complete the reporting process. The biggest challenges will arise in cases where the data collection and collating cannot be automated. For companies of sufficient size, this could mean that timely compliance is out of the question, which will require a “Plan B” (i.e., late filing accompanied by a request for an abatement of penalties).
4) Also for employers, there will be some unwelcome surprises. The reporting process inevitably involves a detailed examination by a third party vendor of the approach that the applicable large employer adopted to comply with the ACA employer shared responsibility rules. This examination can reveal compliance problems and lapses.
For example, a vendor and employer might differ on the classification of a cohort of employees as variable hour by an employer that has adopted the look-back measurement method. If that cohort is sufficiently large, the employer could be facing penalties under Code 4980H(a).
Visualizing Health Policy: Recent trends in employer-sponsored health insurance premiums
Original post kff.org
This Visualizing Health Policy infographic charts recent trends in employer-sponsored health insurance premiums.
Between 1999 and 2015, premiums increased by 203 percent, outpacing both inflation and workers’ earnings. However, growth of premiums for family coverage slowed toward the end of that time period, from an average of 11 percent a year between 1999 and 2005, to 5 percent between 2005 and 2015.
In recent years, deductibles rose faster than both premiums and wages, with the average premium for single and family coverage increasing 4 percent between 2014 and 2015. There is considerable variation in the premiums at different firms; 8 percent of covered workers are enrolled in a family plan worth more than $24,000 and 4 percent are in plans worth less than $10,000 annually.
Over half of large employers conducted an analysis to determine whether they offered a plan which would be subject to the excise tax on high cost health plans slated to take effect in 2018.
Visualizing Health Policy is a monthly infographic series produced in partnership with the Journal of the American Medical Association (JAMA). The full-size infographic is freely available on JAMA’s website and is published in the print edition of the journal.
Is a wearable health tracker worth the investment?
Wearable health trackers are the buzz in the new year. From the Biggest Loser giving contestants the Garmin VivoFit to FitBit's response to the Apple watch, there's plenty of options to choose from for your employees.
But is adding a wearable health tracker to your wellness plan a good idea?
Jen Arnold, MS, RD/LDN, shared her thoughts on not only using the device, but also the advantages and disadvantages for employers in the article, "13 Ways to Decide if Wearables are Worth the Investment."
Below are the bullet points she makes in the article:
Advantages of an activity tracker:
The “Cool” Factor: Your employees will appreciate the gift even if you are just subsidizing the cost or if they are getting the cheapest version.
Automatic Feedback: Wearable devices have the ability to give employees real time feedback so they can do something about. You can look at your device, see if you are under performing on activity for the day and start moving.
Fun Challenges: The dashboard gives employees options to set up their own challenges or you can run a company wide one. This is a fun way to get a positive reaction and interest from employees.
Scalabilty: Many employers have employees scattered all over their state, the US or even globally. Having employees connected through their fitness tracker eliminates the need to be in person, which isn’t possible for many employers.
Revival of a Tired Wellness Program: Let’s face it, it’s easy to run out of fun ideas and your wellness program can get a bit boring. Adding free or subsidized activity trackers can liven up your program and get employees excited again.
Create a “fit” group identity for tracker wearers. Hey, you have a Fitbit just like me. That’s a great reason to strike up a conversation a fellow employee who you don’t know. Working on a similar goal gets people talking about their device and the many steps they are taking towards better health. It’s always wonderful to hear employees talking about their fitness in an excited way instead of the dreaded tone of guilt.
Despite these advantages, there are some drawbacks of purchasing activity trackers to consider:
Cost: Although fitness trackers are cheap when compared to the cost of health insurance for your employees, it can kill a wellness budget in a hot second. Fitbit in particular requires the employer to subsidize a percentage of the device and if you have a lot of employees, the cost may be difficult to justify to your CEO. Also, the dashboard is around $7,000 per year (or is at the time of this post) and you really need the dashboard to get employees involved.
Abandonment rate: A recent survey found that after about six months of use, one-third of U.S. consumers don’t use their wearable devices. That’s about how long I lasted with mine.
It’s not the magic bullet: Although an activity tracker may help your employees get up and moving more, it won’t magically make your employees healthy and lower health care costs. You still have to incorporate other resources into your wellness program.
Not everyone will want one: As cool as you think an activity tracker is, 100% of your employees will not want one. This could actually be an advantage if you are trying to watch your budget.
Privacy concerns: Some people are skeptics by nature and you’ll need to ensure employees who has access to their data and what you are doing with it.
Addiction: I’m using this heavy word a bit lightly here but if you’ve owned an activity tracker, you’ll know what I’m talking about. It’s the reason why you walk circles around your house while the rest of the family is sleeping or you get pissed if you went on a run without your tracker. Tracking means competing with someone (even if it’s yourself) and that’s only sustainable for so long.
Motivation: You are going to reach the employees ready to make a change about their health while the ones that aren’t ready will pass on the opportunity. That’s fine not to dwell on those that aren’t motivated but chances are they would have joined you in a less expensive exercise challenge.
Here’s the million dollar question….does it increase exercise? Truth is, we don’t really know. There is minimal research around these devices but one small study in older women found that they may increase exercise more than a pedometer (at least during the 16 week study). We are working with an employer group that is starting a fitness tracker challenge now so I’ll let you know the results.
Bottom line: unless you have a well built wellness strategy that includes other resources for your employees, then fitness trackers are probably not worth the investment UNLESS you have extra money to spend and one or more of the advantages above applies to your worksite.
IRS pinpoints ACA affordability percentage for safe harbor
Original post by Helen Karakoudas, shrm.org
The IRS has announced that the inflation-adjusted percentage used to determine what is “affordable” health coverage for individuals will also apply to the safe harbor for employers.
Under a safe harbor set forth in the Affordable Care Act’s (ACA’s) employer shared-responsibility provisions (also known as “pay or play”), health coverage has been deemed to satisfy the requirement to be affordable if the lowest-cost self-only coverage option available to employees does not exceed 9.5 percent of any one of the following:
- The employee’s W-2 wages.
- The employee’s rate of pay.
- The federal poverty level.
The three-pronged affordability safe harbor is used so that employers have penalty protection for what they declare as “affordable” on Line 16 of IRS Form 1095-C. The safe harbor concept is the standardized way IRS regulations address the fact that employers would not know their employees’ household incomes.
For 2015, the IRS increased the applicable threshold percentage for purposes of “household income” from 9.5 percent to 9.56 percent to account for increases in health insurance premiums and income growth, with a further increase to 9.66 percent announced for 2016. But the IRS did so with regard to the affordability percentage that marketplace exchanges can use to test compliance with the ACA individual mandate. The IRS did not explicitly increase the percentage for use in the employer safe harbor test above the statutory 9.5 percent. That led many benefit attorneys to advise their clients to continue using a contribution percentage of 9.5 percent to measure their plan’s affordability.
While the controversy over the affordability percentage has divided employee benefits attorneys and confused business owners and HR professionals, new guidance clarifying the issue was released on Dec. 16.
According to IRS Notice 2015-87:
Treasury and IRS intend to amend the regulations under § 4980H to reflect that the applicable percentage in the affordability safe harbors should be adjusted … so that employers may rely upon the 9.56 percent for plan years beginning in 2015 and 9.66 percent for plan years beginning in 2016.
Legal Significance for ACA Safe Harbors
The phrases “intend to amend” and “should be adjusted” are key. Before this guidance, there was no official connection between Section 4980H—the ACA regulations in the Internal Revenue Code that detail the employer shared responsibility requirements—and any percentage other than 9.5 percent, which remained the only rate given in ACA regulations for affordability testing.
Though official word about the syncing of the safe-harbor percentage with the marketplace percentage came bundled with end-of-year housekeeping items, hints about a clearing of the fog came this fall:
- In a September webinar of the ACA Information Returns (AIR), the monthly group call for software developers learning about the new IRS processing engine specific to the 1095 series of forms, attendees were told that hard coding for the 9.5 percent affordability percentage for employer returns was being undone and revised for specifications that could be changed from year to year. Further references to this reformatting were also made in the October and November calls.
- On page 11 of the instructions for IRS Forms 1095-C and 1094-C, which also came out in September, there was this paragraph: “References to 9.5 percent in the affordability safe harbors and alternative reporting methods may be subject to change if future IRS guidance provides that the percentage is indexed in the same manner as that percentage is indexed for purposes of applying the affordability thresholds under Internal Revenue Code section 36B (the premium tax credit). In general this should not affect reporting for 2015, but taxpayers may visit IRS.gov for any related updates.”
“Admittedly, the door was open to possible updates. But one would have thought that, by Dec. 16, nothing would change the result for 2015,” said Paul Hamburger, co-chair of the employee benefits and executive compensation practice center for Proskauer Rose in Washington, D.C.
“Now, the [Dec. 16] guidance allows employers, essentially, to [use the inflation-adjusted percentage] for 2015 in measuring affordability even though the instructions and forms are based on 9.5 percent,” he added. “However, with vendors already having programmed their systems with unadjusted numbers, I’m not sure how it will all play out. For example, if an IRS form was completed on the basis of unaffordability at 9.5 percent but it would have been affordable at 9.56 percent, will the IRS review cause a penalty to potentially be imposed, only to be negotiated away once the numbers are put forward? We will see,” Hamburger said.
Premium contribution strategies for 2016 were the concern of Ken Mason of Spencer Fane in Kansas City, Mo. “The recent guidance comes too late to affect ACA-compliance efforts for 2015,” Mason said. “Given the usual open enrollment periods of October or November for calendar-year plans, it’s probably also too late for most calendar-year plans to take advantage of the 9.66 percent figure when setting premiums designed to fall within the ACA safe harbors for 2016.”
The ‘Christmas Present’ Rule
Hamburger also widened the lens for perspective on this news: “Over the years, it seems that year-end IRS guidance with brand-new rules is part of the year-end tradition,” he remarked. “I remember a pension-related notice that came out at the end of 1987 where the IRS issued a somewhat lenient optional tax-related rule and we colloquially referred to it as the ‘Christmas present’ rule. Since then, the IRS seems to always remember the employee benefits community at this time of year.”