Men’s HSA account balances far outpace women’s
Originally posted June 19, 2014 by Dan Cook on www.benefitspro.com. 
Women, on average, don't have as much money in their health savings accounts than do men. This nugget is among the findings of an Employee Benefit Research Institute study, which was conducted on the 10th anniversary of the creation of HSAs.
At the end of 2013, men had an average of $2,326 in their account, while women had $1,526, EBRI said.
While the male-vs.-female gap went unexplained by the researchers, that output was perhaps the most surprising to come from the study. Other findings were more or less in line with expectations about those who choose HSAs to pay for their health care.
EBRI reported that older individuals have considerably more money in their accounts that do younger HSA users: Those under 25 had an average of $697, while those ages 55-64 $3,780 those 65 or older had an average account balance of $4,460.
Younger ones used a small percent of their account balances for health-related expenditures, and they also tended to take fewer distributions from their accounts that did older individuals. Yet at a certain age, the likelihood of a distribution fell significantly.
“The likelihood of taking a distribution increased from 44 percent among individuals under age 25, to 66 percent among those ages 35–44 and 45–54,” EBRI said in a release. “That likelihood dipped slightly (to 64 percent) among those ages 55–64 and still further (to 49 percent) among those ages 65 and older.”
“The decline in the average amount distributed, as well as the likelihood of there being a distribution for health care claims at older ages, may have been a reflection of fewer people covered by the HSA-eligible health plan as fewer dependent children are covered by older account owners,” said Paul Fronstin, director of EBRI’s health research and education program, and author of the report.
Other findings:
- The average HSA balance at the end of 2013 was $1,766, up from $1,280 at the beginning of the year;
- On average, individuals who made contributions deposited $2,032 to their account. HSAs receiving employer contributions received $1,184, on average;
- Four-fifths of HSAs with a contribution also had a distribution for a health care claim during 2013;
- Looking at HSAs with claims, the average amount distributed for health care claims in 2013 was $1,953.
Input for the study came from data collected from HSA providers with total assets of $2.7 billion as of Dec. 31, 2013. This represents 14 percent of the universe of HSAs and 14 percent of HSA assets, EBRI said.
Minimum-Wage Debate Pits Cities Against States
Originally posted June 23, 2014 by David Klepper and Blake Davis on https://www.inc.com.
Dominique Mayfield makes $8.25 an hour washing dishes and busing tables at a Syracuse brewpub. Shantel Walker makes $8.50 an hour at her pizzeria in New York City, where the rent is more than double what it is in Syracuse. Two very different cities, but nearly the same wage.
The economic differences between America's big cities and elsewhere have prompted leaders in Seattle, New York City, Chicago, San Francisco, Oklahoma City, and other cities to push to raise the minimum wage within their borders.
The efforts are running into opposition from state lawmakers from both parties and business groups who say a patchwork of minimum wages could lead to a confusing and unequal business climate in which labor costs would vary dramatically from city to city.
The minimum wage has emerged as perhaps the top issue of a newly emboldened, urban liberal movement that in many places is led not by governors or state lawmakers but by local leaders backed by organized fast-food workers. After years of grappling with state and federal budget cuts, mayors and city councils are pushing back against state and federal officials who they say don't understand the income inequality of 21st-century American cities.
"So many people have been pushed out of this city," said Seattle City Councilman Nick Licata, who successfully pushed to raise the city's wage to $15, more than $5 higher than the state wage. "Local politicians don't have the luxury of not doing something. The state and federal governments, they've been AWOL. They haven't been engaged."
The fight to raise minimum wages has lawmakers in many states on the defensive, arguing that higher wages will lead to reductions in hours and jobs for low-income workers--and retail price increases that are likely to hit them hardest. The business-backed American Legislative Exchange Council argues that local minimum wages could lead to a race to the bottom, where businesses locate in whichever city within a region has the lowest starting wage.
"This is a debate that's happening around the country, and although it's well intended, it's misguided," said Cara Sullivan, a minimum-wage policy expert at ALEC. "In Seattle, they raised it to $15, and right across the city line, it's $5 less. It increases the cost of doing business for businesses in that city. You're creating chaos from one business to the next."
Members of the city council in Providence, Rhode Island, considered raising the minimum wage from $8 to $15, but only for workers in the city's large hotels. In response, the Democratic leaders of the Rhode Island General Assembly have moved to block the proposal by taking away cities' authority to set local minimums.
Oklahoma Gov. Mary Fallin, a Republican, signed legislation in April that prohibits cities from setting their own wage after organized labor groups suggested that Oklahoma City raise its wage from $7.25 an hour--the federal minimum--to $10.10.
B.J. Marsh, a single mother in a suburb of Oklahoma City, says the $7.25 she makes requires her to choose between eating or getting to work. Marsh said her 7-year-old son began living with her father to save on expenses and allow her to work.
"I don't eat because I have to have gas in my car," she said.
But supporters of Oklahoma's new law said higher local minimum wages were likely to hurt the very low-income workers they were proposed to help by raising food prices and reducing employment.
"We have seen businesses flee from cities that have tried this in other states," said Republican House Speaker Jeff Hickman. "Artificially inflating the minimum wage raises the price of everything from housing and rental costs to a loaf of bread, and causes the loss of jobs which means fewer opportunities for those working to feed their families."
In 2011 and 2012, four states passed laws keeping state minimum wages from being higher than the federal wage. This year, 14 such bills have been introduced, according to the National Conference of State Legislatures.
In New York City, Mayor Bill de Blasio and members of the City Council are seeking authority to raise the local minimum wage to $15--nearly double the state's $8 minimum. State law doesn't currently permit cities to set their own minimums, and although Democratic Gov. Andrew Cuomo first warned the idea would lead to a "chaotic" business environment, he now supports a proposal to raise the wage to $10.10 and let cities impose a minimum up to 30 percent higher.
Restaurant owners and business groups have opposed the plan, and on Thursday, it appeared state lawmakers would adjourn without voting on the measure. The state's minimum wage is already set to increase to $8.75 at the end of this year and to $9 at the end of 2015.
For Shantel Walker, the pizzeria worker in Brooklyn, the proposal would mean nearly $5 more per hour. Walker went to Albany last month to rally for a higher minimum wage outside a McDonald's at the Capitol. She said it makes no sense that fast-food workers in New York City are held to the same minimum wage as those upstate.
"If we have to do this every week, that's what we're going to do," she said. "We have to fight the powers that be."
--Associated Press
Employee medical self-care programs reduce spending: SHRM speaker
Originally posted June 23, 2014 by Sheena Harrison on www.businessinsurance.com.
ORLANDO, Fla. — Medical self-care programs that teach employees which symptoms can be treated at home and which need medical attention can help reduce unnecessary medical spending for workers and employers, said Don R. Powell, president and CEO of the American Institute for Preventive Medicine in Farmington Hills, Michigan.
Mr. Powell gave a presentation Monday about the characteristics of best-in-class wellness programs during the Society for Human Resource Management's Annual Conference & Exposition in Orlando, Florida.
He said about 25% of physician visits each year are unnecessary, equaling about $227 million in excess medical costs for workers and employers, and 55% of emergency room visits are unnecessary, resulting in $65.6 million in extra costs to treat medical problems that are not urgent.
Employers should provide printed employee resource guides and websites that employees can use to evaluate whether their medical symptoms can be treated at home, whether they should visit a doctor and what questions to ask when they visit a physician, Mr. Powell said. Such guides typically include an easy-to-use flow chart that employees can follow to determine whether they need immediate medical care.
In addition to resource guides, Mr. Powell said some companies offer a nurse advice hotline to employees to discuss whether their symptoms need medical care.
Usage and ROI
Mr. Powell noted that printed self-care resource guides, which cost about $5 to $8 per copy, are more likely to be used by employees of all ages than websites or nurse hotlines when considering the urgency of a medical problem. However, he said, offering a variety of delivery methods — as well as communicating the program’s availability through newsletters, emails and posters — can make employees more likely to use self-care programs.
Companies see anywhere from a 3-1 to a 15-1 return on investment for every dollar spent on medical self-care programs, Mr. Powell said.
“You're cutting into those unnecessary doctor and ER visits,” he said. “If you're a self-funded company ... that's $199 per visit to $350 per ER visit right back into your pocket, so you stand to gain the most. Not to say a company that’s fully insured doesn't stand to gain, because it allows employees not to miss work when they’re at the doctor or ER unnecessarily and because people really appreciate a medical self-care program.”
Other factors in successful wellness programs include having corporate leaders and employee peers involved in such initiatives, making it easy for workers to participate in wellness initiatives and health coaching to program participants, Mr. Powell said.
Communicating with Employees - Don't Shove it into the Back Burner
Originally posted May 28, 2014 by Stephen Bruce on https://hrdailyadvisor.blr.com
Ask employees what they like least about their jobs, and they typically cite a problem with communication. In fact, in many national employee attitude surveys, participating organizations across the board were rated lowest on questions related to communication, while at the same time employees who took the survey said communication was very important to them.
If communication is a problem in your organization, dig down to find out what types of information employees feel they aren’t getting, for example:
- Employees don’t have a good understanding of what is expected of them or how they fit in the organization.
- Management does not provide employees with information about how the organization is doing or the direction in which it is heading.
- Employees feel they aren’t well compensated because they don’t have any information on the value of benefits and their total compensation.
Tools for Better Communicating
It is important to consider your audience when you determine what communication tools you will use to communicate a certain piece of information.
- Do all of your employees have access to e-mail?
- Are all of your employees on-site?
- Do some of your employees work only on specific days?
- Do some of your employees have jobs on the line that prevent them from attending meetings?
Keeping these things in mind, there is a variety of methods for enhancing communication in the workplace.
Intranet
A company intranet is a great place for posting information on a variety of topics for employees, particularly if most employees have a computer.
Company Newsletter
Company newsletters are a great way to communicate changes, successes, and important information to your employees.
Meetings
Meetings are an effective way to bring employees face-to-face, which is particularly appreciated when the news is good and the purpose of the meeting is to show employees are valued. Meetings are also a good forum for allowing employee questions or discussion on a topic and for obtaining employee thoughts, concerns, and ideas.
Telephone Conferences and Web and Video Conferences
Telephones and conference calls are effective tools for communicating with individuals or groups of employees who are not present at the worksite. Invest in conferencing technology (e.g., phones, video, good microphones) that delivers high-level transmission of audio and/or video to avoid the stilted delays and overlapping conversations caused by low-tech conferencing technology. Train employees on how conferencing technology should be used. If materials or printed information will be distributed at a meeting, make arrangements to ensure access to the material for those participating by phone.
E-mail is an easy way to disperse information to a large group of people at once. Unfortunately, the overuse of e-mail can make employees feel isolated, lacking face-to-face contact. E-mails are stored on company computer systems, and once sent, the sender has no control over where they are forwarded. As a result, an e-mail should be considered a permanent written record. This is much different than the casual conversations people have face-to-face or over the phone.
Bulletin Boards
Well-organized and up-to-date bulletin boards are an effective, convenient, and inexpensive way to communicate with employees, especially workers who do not have access to a computer at their workstations.
Social Media
Social media, including blogs, podcasts, and social networks, can be used to build community, gather feedback, and make updates more engaging. For example, daily, weekly, or as-needed podcasts can provide a venue for managers and executives to talk to their employees via the intranet. While social media can be a great way to communicate with all employees at once, it shouldn’t be a complete substitute for face-to-face communication.
Employee Surveys
Employee surveys can be an effective and efficient way to obtain information from a large group of employees. A well-written survey provides feedback on how employees feel about the organization, their role in the organization, their compensation and benefits, and communication at each level of the organization.
However, conducting a survey and then leaving employees feeling as if they weren’t heard or that nothing is actually going to be done in response to feedback obtained in the survey may actually cause more harm to employee relations than good.
Communicating Bad News No one likes to be the bearer of bad news. But the right approach can help. The following tips are especially important when communicating bad news: Be straightforward. Confront the situation honestly and openly. Don’t hedge or try to hide the unpleasant truth. Act promptly. Delay will only make the task more difficult. Deliver bad news face-to-face whenever possible. This provides the opportunity to show concern and deal with questions directly. Always explain the reason behind the bad news. The more information people have, the more easily they will be able to accept the situation. Put the situation in perspective. In most cases, there’s an upside as well—however small. Be sure to highlight any positive aspects that will help the listener look beyond disappointment and see the big picture.
Ancillary Plans Get a New Spin
Originally posted June 9, 2014 by Amber Taufen on https://www.benefitspro.com
Employers struggling with new mandates for basic health care programs probably don’t even want to think about offering their employees ancillary benefits like vision and dental insurance.
However, as many experts have noted, these two particular ancillary benefits can save employers money in the long run because regular dental and vision screenings can detect some chronic health conditions early.
Employer-provided flexible spending accounts and health savings accounts can be one alternative option to traditional health and dental insurance, but sometimes employees have difficulty understanding the parameters of these programs, or can’t find affordable out-of-pocket care on their own. So many employers are turning to alternative ways to provide vision and dental coverage to their employees – new, innovative methods of coverage that provide both flexibility and cost-savings. And the biggest trends all revolve around cost transparency and empowering employees to make educated care decisions.
Jason Szczuka, general manager of Brighter PRO, says that his tech company has helped fill a need for more cost-effective employee dental coverage – a need he says will definitely continue to grow.
“Traditional dental insurance does not work for employers and employees as a cost-effective benefit offering,” Szczuka says. “And there’s been zero innovation in this industry for the past 20 years. However, by leveraging newer technologies, our platform aligns the interests of patients, providers, and payers alike to lower claims costs through new efficiencies in benefits payments, network fee schedules, utilization review and group plan designs.”
Although the Brighter PRO set-up looks somewhat similar to a traditional preferred provider organization insurance plan, it’s actually a cost-transparency technology resource that creates new efficiencies to create lower overall dental costs.
Brighter PRO maximizes the savings it generates through a transparent online marketplace so members can easily shop for providers based on price and quality, while participating providers can compete for more patients by improving their prices and quality scores, and payers can lower their claims by optimizing how and where members use their benefits.
“We’ve built the technology that helps transform health care consumers into health care shoppers,” Szczuka says. “They can compare dentists side-by-side on cost, quality and convenience. Schedule their appointment online 24/7. And when the appointment is over, the user’s electronic dental record is updated so they can more easily and affordable maintain their oral health.”
Derek Moore, a senior benefits consultant with Leavitt Group, says his clients have appreciated the addition of Brighter PRO to his portfolio of benefit offerings.
“Some of my clients are saving 70 percent on their premiums for something they can do online – if you have a computer or a phone, you can use this service,” he notes. “Everything in today’s market seems to be quick, so it was only a matter of time before these technological innovations made its way into health care.”
Gene Erdman, director of human resources for the Southern California Pizza Co., likes the program because he’s able to offer a dental benefit for all of his employees – including his part-time workers.
“The adjustability and flexibility offered with a service like this fits our employee base very well,” he notes. “Our workforce skews toward millennials, and the concept of them being able to shop and price and make a decision about a care provider from data they can access from their iPad or phone or computer and really individualize that decision is significant for us.”
A clearer vision
And while companies like Brighter PRO look at new ways to provide dental coverage options for employers, other companies like Careington address the vision component of ancillary benefits.
“We’re a discount plan, and we’ve developed a somewhat exclusive network with vision carriers,” explains Greg Rudisill, senior vice president of strategic partnerships at Careington. “Many times, we can go into a big group and bundle all of these carrier networks together so that our members have the broadest access available.”
Rudisill notes that many Careington clients use the service in conjunction with FSAs or HSAs to help their employees manage their vision needs.
“Everything is very transparent, so the member can see what it would cost them for different services before they go in. If they know what it’s going to cost them in advance, they can set aside that specific aside of money in their FSA. And there are no claims to file, so providers love it because they don’t have to do a lot of administrative work like they would with an insurance plan.”
“The Patient Protection and Affordable Care Act is building our market for us,” Szczuka says, “because, although the need for dental coverage has been around for a while, the adult dental gap is going to continue to grow as the premium-to-benefit value of traditional dental insurance erodes even more quickly than it already has been.”
And if those trends continue in the ancillary world, employers will increasingly seek new, innovative methods to provide health care value to their employees.
Most employers to keep health benefits for workers but some may drop spouses
Originally posted June 9, 2014 by Jerry Geisel on https://www.businessinsurance.com
Most employers will continue to offer health care coverage to their employees, but some will eliminate coverage for employees' spouses, according to a survey released Monday.
Just 6% of employers surveyed by Willis Group Holdings P.L.C survey say they will not comply with a Patient Protection and Affordable Care Act mandate that requires employers with at least 50 employees to offer coverage to their full-time employees or be hit with a stiff financial penalty. Sixty-two percent said they will comply with the mandate, and 32% said they were undecided.
That requirement goes into effect in 2015 for larger employers and in 2016 for smaller firms.
“The results of the survey underscore that organizations recognize the value of offering competitive medical benefits to employees and, despite concerns over health care reform, appear poised to continue to offer employer-sponsored health plans as part of a total rewards package,” said Jay Kirschbaum, St. Louis-based practice leader of the Willis human capital practice's national legal and research group, in a statement.
On the other hand, 12% of employers already have added a special surcharge or eliminated coverage to employees' spouses if the spouse is eligible for coverage from his or her own employers, while 3% plan to take such action between 2015 and 2018, and 20% will likely do so but haven't set a date yet.
The motivation behind such action is financial. Employers can reap significant financial savings when employees' spouses are not covered or are required to pay premium surcharges when they are eligible for coverage through their own employers but don't take it.
For example, the average premium in 2013 for employee-only coverage was $5,884, according to the Kaiser Family Foundation in Washington. Adding a spouse easily will double that premium, experts say.
Other findings
The health care reform law also gives employers a further incentive to pare their health plan enrollment numbers.
In 2014, employers have to pay a $63 reinsurance fee that is imposed for every health care plan participant, while a $44 per participant fee will be assessed in 2016. The amount of the fee in 2017 — the last year such fees will be imposed — has not been set yet by federal regulators. Revenue generated by the transitional reinsurance program fee will be used to partially reimburse insurers for covering high-cost individuals through health exchanges.
The survey also found that just 37% of respondents have calculated the cost of the reform law on their health care plans.
That relatively low percentage “demonstrates that for many organizations, determining an accurate assessment of these figures is still a challenge,” the survey said.,
Among respondents that have calculated the cost impact, 54% said the law would boost costs between 0% and 5%, while 22% put the increase in the 5% to 10% range.
The survey is based on the responses of 1,033 employers, including 36% with between 100 and 499 employees and 26% with less than 100 employees.
Fines for I-9 Errors on the Rise
Originally posted June 10, 2014 by Scott Woolridge on https://www.benefitspro.com
Fines resulting from I-9 audits have exploded in recent years, and immigration law experts say employers should put a high priority on making sure their policies and paperwork are in compliance.
“We have seen a huge increase in fines against employers, and we don’t think that’s going to go away,” says Loan Huynh, a shareholder with Minneapolis-based Fredrikson & Byron.
The fines are levied for failures in compliance with Form I-9. First created as part of the Immigration Reform and Control Act of 1986, I-9 enforcement saw a sharp uptick in audits and fines after a revision to the form in 2013.
ICE audited more than 1,000 businesses nationwide after that update. By comparison, ICE conducted only 250 audits in 2007. With the steady growth in audits and enforcement, businesses paid $13 million in fines by 2012.
Justin Storch, manager of agency liaison for the Alexandria-Virgini.-based Council for Global Immigration, also saw a jump in fines for I-9 mistakes.
“In general over the last several years, it has skyrocketed,” he says. “I’m guessing the numbers will be even higher in 2014 than it was in 2013.”
Storch says that among the issues emerging for employers is a crackdown on workers who might have been approved to work in the United States for a limited period of time, for example a conference or short-term assignment, who then continue to work after its ended.
“It really is important to do everything by the book, and don’t leave any holes open to let the government to come in,” Storch says.
The political stalemate over immigration reform only adds to the problem of ICE audits, according to a recent white paper from Talentwise. “With robust resources at its disposal (ICE is the largest enforcement agency within the Department of Homeland Security), and no clear legislative path to immigration reform in sight, experts predict the pace will continue,” the authors conclude.
Tips for employers
Huynh says there are several steps employers can take to protect themselves. She says having proper documentation — and backing that up with copies, is crucial.
“Under the law, if an employer has made paperwork errors or mistakes … if they have certain supporting documents, the law allows the immigration service to allow [employers] ten days to make corrections,” she says. “None of us are perfect, when we’re completing forms. You want to be perfect as possible, but you really need to make copies of supporting documents.”
The Society of Human Resource Management website has several tips for employers, including being compliant with deadlines. For example, a new hire must complete Section 1 of the I-9 form on or before the first day of employment, while Section 2 of the I-9 must be completed by the employer within three days of the start date. Other important steps include having your policies in writing and a one person in charge of the process.
“The buck needs to stop with someone,” Loan says. If no one is tasked with ownership of the I-9 paperwork, it’s too easy for things to slip through the cracks. And the consequences of such mistakes can be very high.
Huynh’s firm also recommends semi-annual audits, preferably by a third party. She notes that if there’s an error in a company’s I-9 system, whoever created the system might be the last to notice problems.
“If you have the individuals who are responsible for your I-9 forms do your audit, they will perhaps continue to make the same mistakes,” she says. “It’s always helpful to have [an outside party] help you conduct the I-9 audit.”
Storch also strongly recommends getting an outside source to review your I-9 compliance.
“There are experts out there,” he says. “Immigration attorneys are probably your best resource as far as getting good information. They can help you stay compliant.”
Although there is a cost for using attorneys to help with I-9 issues, Storch say it’s worth it.
“I’m very aware that immigration attorneys can be very expensive, but it can save you money in the long run,” he says.
Huynh points out another benefit: by using an immigration attorney, the audit can be kept confidential.
“Any findings made as a result of the I-9 audit, if it’s conducted by an attorney, it’s protected under attorney client privilege,” she notes.
The rules around I-9 forms can be very specific and sometimes confusing. For example, those filling out the forms must not use white correction fluid or black permanent marker. The person who fills out the form must be the person who signs it. Employers must retain any pages of the form which the employee and employer enter data. In short, that legal consultant might be a good investment.
The growth of E-Verify
Complicating the issue further is the growing use of E-Verify, a free online system that checks applicants’ I-9 information against the records of other agencies such as the Department of Homeland security and the Social Security Administration.
Many states now require the E-Verify for at least some types of employers. But in many cases, the use of E-Verify is a duplicative effort for businesses, and it requires even more information than the I-9 process.
However, Huynh says some employers like the E-Verify system because it provides another layer of security against employment fraud.
“Some employers feel comforted by the fact that they've done everything they can,” she says.
However, she noted it wasn’t a perfect system, “It’s not foolproof.”
Even with its flaws, Huynh expects the use of E-Verify to grow in coming years, “E-Verify is the future of employment verification eligibility, whether we like it or not.”
Maximizing the dollars being spent on benefits technology
Originally posted by Andy Stonehouse on https://ebn.benefitnews.com
Employers in the United States and across the world are quickly increasing the amount of money they’re investing in HR technology, including systems such as cloud-based HR portals and talent management solutions.
That, in turn, is leading many employers to reexamine the ways they handle their entire HR workflow, and allowing many benefits managers a greatly expanded range of tools for personnel management.
It’s a positive sign, especially as many companies have cut back their benefits and HR staff, and illustrates some ongoing trends for growth in HR technology, according to Mike DiClaudio, global leader of Towers Watson’s HR service delivery practice.
“Despite cost cutting in some areas of HR, we are seeing a substantial spike in technology spending,” DiClaudio says. “Companies are realizing the value that consumer-grade technology brings to HR and are willing to make smart investments that can grow and evolve with the business.”
Towers Watson’s new HR Service Delivery and Technology survey indicates that at least a third of respondents planned on spending more money on HR technology than they did last year.
Use of mobile technology and HR portals is also an increasingly standard part of the day-to-day benefits workflow, with some 46% reporting they’re using mobile tools for HR transactions and 60% indicating they’ve got a portal already in place.
“It also appears that companies are splitting their investments between core HR systems such as talent management and payroll, and next-generation technology including HR data and analytics, [plus] integrated talent- management systems.”
But the technology spend is just part of a larger revolution underway in overall HR and benefits management, DiClaudio says. More than half of the employers surveyed indicated that they’ve reengineered key HR processes over the last year and a half, and roughly three in 10 respondents say they have refocused the role of their HR business partners.
Another significant trend is the move toward manager and employee self-service initiatives, with almost three quarters of North American-based organizations already using manager self-service tools, a 10% jump from last year.
Employee engagement surveys have also become an increasingly common practice among employers hoping to get the best out of their HR technology dollars, with almost two thirds of U.S. employers conducting regular employee engagement surveys and using the data to better direct their personnel and benefits investments.
HDHP Use Doubles for Nonprofits
Originally posted by Kathryn Mayer on https://www.benefitspro.com
For many nonprofits, just having traditional medical coverage is so 2009. Consumer-driven plans, like HDHPs, are the new rage.
According to a survey from benefits administration firm PPI Benefit Solutions, among nonprofits, the use of traditional medical plans has decreased from 96 percent in 2009 to 83.6 percent in 2013. Meanwhile, the use of high-deductible health plans has nearly doubled, increasing from 22 percent in 2009 to 43.5 percent in 2013.
PPI surveyed more than 250 small to mid-sized nonprofit organizations nationwide.
“Nonprofits are really struggling to maintain a comprehensive benefits package, and consumer-driven plans like HDHPs, health savings accounts and flexible spending accounts can be great, lower-cost options,” said Karen Greco, director of marketing for PPI Benefit Solutions. “The growth in these plan types, combined with the appeal of a predictable benefits budget, is also driving a lot of interest in alternative funding and enrollment solutions like defined contribution with an online marketplace that offers a wide array of product options.”
More nonprofits also are adding voluntary benefits, the report found. More employers, since 2012, are offering voluntary dental (offered by 20.3 percent of employers), life (49.7 percent), critical illness (9.6 percent), accident (34.5 percent) and transit reimbursements (24.3 percent) to their employees.
Other findings from the PPI report include:
Increased importance on automated benefits administration and enrollment: 77.2 percent of employers (up from 28.8 percent in 2012) consider benefits administration platforms to be very important and the 44.3 percent of employers (up from 9.6 percent in 2012) who believe employee self-service portals to be very important.
Help needed with understanding PPACA: 60.5 percent of nonprofits said they haven’t calculated the cost of compliance with regulations under the Patient Protection and Affordable Care Act.
Brokers wanted? Nearly 85 percent of nonprofit employers said they’re committed to delivering health and welfare benefits to their employees but are “seeking solutions to help manage costs and improve employee engagement.”
One-Third of Workers Say ACA Will Delay Their Retirement
Originally posted May 27, 2014 on https://annuitynews.com. 
Although the Congressional Budget Office projects a smaller U.S. workforce in coming years as a result of the Affordable Care Act (ACA), the majority of American workers don't believe that the ACA will allow them to retire any sooner, according to a new survey from https://MoneyRates.com. On the contrary, the Op4G-conducted survey indicates that one-third of workers expect that the ACA – also known as Obamacare – will raise their health care costs and thereby force them to retire later than they previously anticipated.
One-quarter of respondents felt that Obamacare would have no impact on their retirement date, and another one-quarter weren't sure how it would impact their retirement. Those who felt Obamacare would allow them to retire earlier were the smallest segment of respondents at 17 percent.
Many of the workers who indicated that Obamacare would delay their retirement said that the delay would be lengthy. Seventy percent of those respondents said they expected the delay to be at least three years, including the 39 percent who said it would be at least five years. The respondents who said they expected an earlier retirement were more moderate in their projections, with 71 percent indicating it would hasten their retirement by three years or less.
Richard Barrington, CFA, senior financial analyst for https://MoneyRates.com and author of the study, says that the purpose of the survey wasn't to determine whether Obamacare would truly delay or hasten anyone's retirement, but rather to gauge the fear and uncertainty that surround the program today.
"It's too early to tell whether Obamacare will actually delay people's retirements," says Barrington. "But what's clear at this point is that the program has created a lot of concern about health care costs as a burden on workers and retirees."
Barrington adds that whether or not these concerns are warranted, there are steps workers can take to better manage their health care costs in retirement, including budgeting for health insurance within their retirement plans, shopping regularly for better deals on insurance and using a health savings account as a way of handling out-of-pocket medical expenses.
"The poll reflects a high degree of uncertainty over the impact of Obamacare on retirement," says Barrington. "One way to reduce the uncertainty is to take active steps to manage how health care will affect your retirement."