Employers rate private exchanges positively, but use is still low
Great article from Benefits Pro by Gil Lowerre and Bonnie Brazzell
A recent Eastbridge survey of employers found that the use of private exchanges continues to be minimal among all size categories and that a positive correlation remains between use and employer size (with use increasing as employer size increases). Many times, it is the broker who influences these employers to adopt the exchange model, and to offer more options to their employees or to move to a defined contribution approach.
Since brokers are often the ones suggesting an exchange for their clients, it makes sense that most employers (74 percent) continue to use a broker for their employee benefits after implementing a private exchange. Only 19 percent of the employers no longer utilize broker services.
While use has been low, employers that have implemented an exchange believe their employees’ experience with the private exchange has been positive. Forty percent indicated the experience was not only positive, but easier than previous enrollments, and 52 percent said it was positive, but not significantly different from previous enrollment.
The survey also pointed to future interest by employers in private exchanges. Over one-quarter of the employers that are not using a private exchange today are open to using this concept in the future, and another one-quarter are still undecided.
Whether or not to offer a private exchange is a decision that should be based on many factors. Nonetheless, it is important for brokers to at least consider broaching the subject with employer clients — or risk the chance that some other broker will. The fact that most employers rate the exchange process positively should provide comfort to those considering this approach to benefits.
See the original article Here.
Source:
Lowerre, G. & Brazzell, B. (2016 November 02). Employers rate private exchanges positively, but use is still low. [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/11/02/employers-rate-private-exchanges-positively-but-us
14 everyday attitudes that kill success
“Martha has so much going for her, but she could be doing so much more for herself.” How many people do you know or work with like that? What keeps us from getting to where we want to be or what we want to do? Sure, it may be a lack of the right skills, bad luck, having other goals, or just being plain lazy.
More likely, however, the answer is elsewhere and much closer to home. We can call them “every day” attitudes that are so much a part of us we don’t know the damage they’re doing. Here are some of them:
1) “For what I get paid, I do more than enough.” Surprise! You’re probably right. With so much pressure, it’s easy to feel this way today. Even so, it’s the attitude that’s the problem. Otherwise pleasant people become angry, obstinate, negative, and alienated. It’s not the way to move ahead—or even stay where you are.
2) “I’ve put in my time and paid my dues. Now, it’s my turn.” It may be a choice parking space, extra time off, a plum territory, a promotion, or bigger accounts. It doesn’t make any difference what it is; it’s easy to spot someone with a chip on their shoulder. Their attitude sends the unmistakable message that this person thinks they are special.
3) “Sorry, but I’m really busy right now. Can’t you get someone else?” When asked to step in and help solve a problem, work on a project, develop a plan, or handle a difficult situation, some people make it clear that they can’t be counted on when needed.
4) “They’ll see what happens when I leave. It’ll take three people to replace me.” Even though we know that no one is indispensable, it’s tough for some people to get past the idea that they are the one exception. If asked, they’re quick to let it be known that they carry far more than their share of the load. Those around them often see it quite differently.
5) “Whoa! There’s only so much I can do.” It’s like the parent who installs a “speed limiter” on their kid’s car — only so fast and that’s it. Others put self-imposed limits on what they can or will do. By always playing it safe, they deny themselves the opportunity to see how much they can accomplish.
6) “With so many meetings, I can’t get my work done.” You’re not alone if you feel this way. Companies are plagued with meeting mania wastes that wastes time and creates stress. Don’t complain; do something about it. Take a “how we can improve it” approach: meeting alternatives, requiring agendas that go to participants beforehand, stand up sessions, setting time limits, and three question participation evaluations.
7) “That’s not my job.” Not long ago, “silos” was at the top of the corporate jargon list — work groups, units, departments, and divisions operating totally separate from others. But countless individuals wall themselves off as if they completely isolated from the organization. They “write” their own job description and stick to it.
8) “I’m a hard worker.” Like beauty, hard work is in the eye of the beholder. Each of us has their own personal definition of what it means to them. But, frankly, it doesn’t make any difference what you and I may think it means. Pampering ourselves is out. Simply put, no one “earns points” or merits a “reward” today for hard work. What counts is measurable and it’s called results.
9) “Unless I get paid extra, I shouldn’t have to do it.” This is a tough one. An employer’ demands can go too far. And employees can be shortsighted by putting on the brakes too quickly and miss opportunities for taking on task that can showcase their capabilities and demonstrate their skills.
10) “Sorry, but I don’t know anything about that.” It’s not unusual to hear those words, particularly when contacting customer service. But that’s far from the only place. Unfortunately, they’re all too common throughout most businesses, sending the message that the person has stopped growing.
11) “My ideas aren’t important.” Not true! Whether they know it or not, most people have ideas and suggestions that can benefit a company. They are not only doing their job, but they think about what’s going on around them. It’s a mistake. If you’re one of them, take a chance because someone wants to hear from you.
12) “I meant to get it done. I’ll get right on it.” Why do some people agree to do something — and then ignore it by doing nothing, even after getting reminders? Sure, there are times when we all forget and a reminder helps. But, others can be chronic offenders and fail to respond even when offered help, being nudged, cajoled, and confronted. Everyone knows them: “If you want it done, don’t bother giving it to Brad.”
13) “I’ve been around long enough and the rules don’t apply to me.” Even though the words may never be spoken, actions make their meaning abundantly clear. Chances are, these are people who won’t be around much longer.
14) “I didn’t know you needed it so soon.” This just might be the most insidious attitude of all for one reason: It’s patently pathetic in its intent. While the words sound so innocent and disarming, it shrouds the fact that those who use this excuse portray themselves as victims. It’s not their fault the work didn’t get done; they didn’t know when it was due. Did they ask? Of course not. They blame someone else for not letting them know.
More often than not, it’s self-justifying and defensive attitudes that kill success. Rather than allowing someone to think we could have done more, perhaps much more with ourselves, how much better is it to have them say, “She’s done so much with herself. More than I ever thought she would.” We can call that success.
See the original article Here.
Source:
Graham, J. (2016 October 27). 14 everyday attitudes that kill success. [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/14-everyday-attitudes-that-kill-success
5 tips for insurers to successfully implement new technology
Great article from Benefits Pro. By Laura Drabik
Over the past 10 years, I’ve worked with insurers dedicated to transforming how they do business through the implementation of technology.
I’ve collaborated with large insurers, regional insurers and startups. Although the size of the insurer has varied, principles they have employed to ensure transformation success have not.
And these principles apply to all segments of the insurance industry, including carriers, agents, brokers and claims professionals.
Here are five key observations from the implementations that I’ve worked on and the maneuvers these insurers employed to drive success:
1. Articulate your mandate — again and again and again
I once worked with a large insurer on one of the most complex initiatives. As a former change-management consultant, I found it impressive that before the vendor-evaluation process started, the chief information officer and his team communicated their vision to all levels of the organization in one succinct statement.
As the team transitioned to implementation, this vision was a beacon reminding all project members of what they should be driving toward. Whether gathering requirements, planning releases or gathering user feedback, all activities kept the executive mandate in mind, from evaluation through implementation.
Working toward one goal ensured consistency of direction across teams, improving the probability of success in achieving the business goal they were all striving for.
Later, in a conversation with that same CIO, he revealed that the key to their success was repeating the mandate to ensure it became innate knowledge within the organization.
To keep the message top-of-mind in an organization, use company town halls, CEO updates, webcasts, annual reports and newsletters as opportunities to refresh employees and stakeholders on the executive mandate, and why the company is on this transformation journey.
2. Create one team
Early in my career, I worked as a change-management consultant across various industries.
Regardless of the industry I was working in, I found organizations tended to divide project teams into separate technical and business units. Rather than create units, successful transformation projects combine the business and technical people into one team.
Keep in mind, everyone is working toward achieving one business mandate. To reinforce the “one team” approach, successful transformation projects situate the team in one location. Technical people take the same training as the business people, they celebrate their group identity by creating a team name, and they rally around a set of core team values.
When assembling one team, successful transformation projects staff with the best and brightest their organization has to offer. Rather than have these resources flip-flop between their regular jobs and the transformation initiative, they ensure the resources are 100 percent dedicated to the most critical points of the transformation journey. They understand that the transformation initiative is their organization’s future and require the right people to focus solely on the project at the most important time.
3. Build the new factory
At a recent user conference, one CIO presented a transformation project detailing how the insurer refused to rebuild the old factory or current system and instead focused on the new system as the factory of the future.
If transformation is your goal, don’t carry over old business processes and rules that were limiting in the past.
Successful transformation projects use the new system as the new best practice for doing business in the future. When team members begin slipping back into old processes, successful transformation projects challenge these team members with questions like “Is that how you want to do business in the future?” or “How does this support our executive mandate or business vision?”
Successful transformation projects separate the business-process education from the system training, with the understanding that a new system will come with a new set of best-practice business processes that could cause confusion among hardcore users.
A regional Canadian insurer I worked with made the brilliant decision to first educate its user community on the new business process before launching training on the new system. This allowed an easier transition to the new system because the new business processes were inherently supported by the new system.
4. Stick to 'out-of-the-box'
After purchasing vendor software, you become part of the community that helped to drive the best practices of that software.
Many insurers say that the majority of industry processes are the same across the industry and across insurers. Instead of trying to reconfigure a core process that really is the same across the industry, leverage the commonality and out-of-the-box content to accelerate your transformation project and drive it into the future.
Successful transformation projects spend their project dollars and time by nuancing content that differentiates them from their community and, more importantly, their competition.
5. Generate excitement for the initiative
Change can be scary, but in today’s work environment it’s the norm.
Successful transformation projects convert fear into excitement by advertising the project. Whether through CEO updates, town halls or other events, sell the importance of the transformation project and the team supporting it.
One insurer I worked with creatively orchestrated “showcase” demonstrations of the system on a quarterly basis to employees. The brief demonstrations targeted crucial pain points and showcased the way the new software would resolve the issue. They also knew it was important to gather feedback, not just from the showcase events but also from focus groups and the field. When an organization has an influential field presence, successful transformation projects advertise the project to the field by conducting regular roadshows and ensuring that the community’s feedback is incorporated into the solution.
See the original article Here.
Source:
Drabik, L. (2016 November 14). 5 Tips for insurers to successfully implement new technology[Web blog post]. Retrieved from address https://www.benefitspro.com/2016/11/14/5-tips-for-insurers-to-successfully-implement-new?ref=hp-blogs&page_all=1
5 ways to salvage retirement
It’s a scary season, what with Halloween just around the corner, and some of the fears looming large in people’s minds focus on retirement. So it’s probably pretty appropriate that we tackle some of those fears head on, so to speak.
The Huffington Post addressed just that topic, pointing out five things people who are not yet retired can do to ward off at least some of the effects of what experts predict: that people’s standard of living will fall during retirement, thanks to low savings levels and poor planning for the last stages of life.
We scouted around the web to find some additional data on why, and how, retirement is expected to fall so short of people’s anticipation, and what they might be able to do to forestall that drop in expectations. Here’s what we found:
5. Figure out where you’ll live
A person’s home might be his castle, but whether it will be a fortress surrounded by a moat or a gracious palace can depend a lot on that old real estate saw, location, location, location.
The cost of your retirement home, how much you’ll pay in property taxes, the cost of living in the area and many other factors determine whether that retirement Shangri-La will be a cozy cottage for two in a university town, a bungalow on the beach or a penthouse apartment overlooking sparkling city lights, with museums, restaurants and theaters within an easy stroll — maybe even in another country altogether.
But there are other intangibles to consider, too — such as whether you’ll be so forlorn at leaving family behind that you’ll either be miserable in situ or spend half your retirement budget traveling back to see the grandkids. And how good the health care facilities are in your new location — that can make a big difference not just in your budget, but maybe even in how long you survive to enjoy those golden years. Not to mention the crime rate and whether you’ll have a social support system in place.
Check out any prospective homes thoroughly before you make the big move, and make sure they have what you need to help you thrive during retirement.
4. Start saving more
While economizing might not be — or feel — glamorous, watching that 401(k) or IRA balance climb can certainly make you feel like a million bucks. Keep that in mind as you’re browsing for a new set of golf clubs or that perfect dress for a special evening out — especially if you don’t plan on playing golf in retirement or dining out on the town, because spending now could cost you big-time later on.
According to AARP data, 3 out of 5 — that’s more than half, folks — of the households headed by someone 65 years old or older have zero money in retirement accounts. That’s zero, as in zip, nada, nothing. How far into retirement will that get you? Into a job, most likely, working during the time that’s supposed to be your well-earned rest after a lifetime of supporting yourself and your family — if you can get one, that is.
Look for ways to cut your spending so that you can turn that money right around and put it to work for you in retirement. Whether it’s making coffee and lunches at home to bring to work or switching nights out with friends at a restaurant to entertaining at home, find ways to sock more away for the future — your future — when you’ll be glad you did.
3. Learn to live on a budget
You may already be doing this, but if you’re not, it’s probably time to start. While you may be planning to work in retirement, the job market may have other ideas — and if you’re dependent on a combination of Social Security and 401(k) or IRA money, that will limit your options. For one thing, seniors have to deal with a job market that’s prejudiced against them — and that’s stacked against them in other ways, too.
Not only that, but depending on who wins the election, your Social Security benefit may not be as predictable as you’d counted on — and then there’s the question of cost-of-living increases. After no increase at all for 2016, seniors will see a paltry average increase of $3.92, according to CNN. That’s a skinny 0.3 percent increase — hardly enough to notice.
And considering how health care costs are rising, women in particular need to be wary of stepping outside of a budget’s constraints; a Nationwide Retirement Institute study found that women could end up spending 70 percent of their Social Security benefits just paying for health care. Considering that women not only overwhelmingly (80 percent!) claim Social Security benefits early, thus locking in a lower benefit rate for their lifetimes, they depend on it to pay for 56 percent of their expenses in retirement.
That said, get used to living on less — you’re going to be doing so for a long, long time.
2. Prepare your home for the long run
If you’re planning on staying put in the house you’re currently living in, make sure it’s prepared for potential changes in your health and/or mobility — particularly if you don’t have coverage for nursing home care. While many people believe that Medicare will pay for a nursing home, should they become disabled, that’s not the case unless their assets are pretty much exhausted. Of course, that won’t take long when paying for the cost of care at a nursing facility.
In addition to stairs, reachable cabinets and accessible bathrooms, there’s the question of how affordable your home is. Can you refinance your mortgage at a cheaper rate? Rent out a room? Pay the property taxes? Maybe you should consider downsizing to a more affordable house, perhaps in the same neighborhood, if your network of friends and family is local. That can save you not just on taxes, but on heating and cooling bills.
It may not be what you had in mind, so it's smart to start setting realistic expectations of what your future retirement might look like.
1. Lower your expectations
Do you somehow expect that when you retire you’ll be traveling the world, dining at fine restaurants and going to the theater for every new production? Unless you have Warren Buffett’s budget, get real.
Most seniors have to cut back substantially when they leave the workforce. You will likely be no different. It’s easier to deal with that reality if you prepare for it mentally in advance, and realize that you’ll have to plan your excursions carefully and budget for them in advance.
The market was brutal to retirement plans during the Great Recession, and unless you were uncommonly fortunate, the money you saved for retirement throughout your career has not regained all lost ground. That said, depending on what you plan to do during your retirement years, you may still find it’s the most rewarding time of your life — particularly if those plans don’t depend on money.
See the original article Here.
Source:
Satter, M. Y. (2016 October 24). 5 ways to salvage retirement. [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/10/24/5-ways-to-salvage-retirement?kw=5+ways+to+salvage+retirement&et=editorial&bu=BenefitsPRO&cn=20161025&src=EMC-Email_editorial&pt=Daily&page_all=1
Key deliverables in ACA implementation
As the slow march continues to implement the ACA, we should all be reminded that there are key deliverables for clients and their advisers to focus on. But while focused on the ACA, let’s not forget that there are additional bills being implemented or introduced — not just at the federal level — that impact a business in how it pays its employees, how their jobs are classified, and how an employer may consider managing its workforce.
With respect to the ACA, the recently delivered 1094 and 1095 tax reports require attention now be directed at preparing for the 2016 reporting year. Specifically, clients and advisers should:
- clean up data sources so the process is efficient and forms are accurate this upcoming year;
- address evolving rules / requirements for reporting and be sure the client is ready;
- advisers and clients should be prepared to deliver within the timeframes communicated, while clients should not assume that filing extensions will be available this upcoming year.
Other legislation
Also, as a client focuses on the ACA, they should direct their attention to the new rules related to white collar exemption status under the Fair Labor Standards Act wage and overtime rules, assuming it applies to them. For some clients this may represent a significant adjustment in how they classify an employee including a review of benefit eligibility for any re-classifications, write a job description, pay or compensate an employee, and manage their workforce. For most employers these rules apply starting this upcoming Dec. 1, 2016.
In some states and cities, bills addressing mandatory paid leave policies are continuing to be introduced and passed to compensate employees for time away. Not all states are focused on this. At the federal level, proposed bills have been considered and are currently in committees but are stalled. It is clear the trend to introduce and put these rules and regulations into place is growing. It would be prudent to monitor the situation.
Lastly, clients will still require advice and guidance on how to manage their employee benefit costs to a budget and to have a plan that attracts and retains employees while remaining cost competitive in a competitive marketplace.
See the original article Here.
Source:
Braun, P. (2016 October 25). Key deliverables in ACA implementation. [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/key-deliverables-in-aca-implementation
6 new solutions for benefits brokers and HR managers
Benefits brokers and HR benefits managers, you’re stressed, and for good reason.
So maybe you didn’t catch these new or redesigned HR and benefits-oriented products or announcements recently. Here they are, just in time for open enrollment.
#1: Help with open enrollment
Open enrollment can be confusing for employees, many of whom can't even define what "deductible" means. (It's true -- someone, somewhere, has studied this and counted the number of people who don't understand the concept.) PlanSource, a provider of cloud-based benefits and human capital management software, has created what it calls "an Open Enrollment Communications Kit" to help with this challenging time.
The kit is for brokers, human resources teams, and benefits professionals who need to communicate benefits information to employees.It includes examples of daily emails and text messages, customizable posters, flyers and postcards in a variety of themes, educational videos and messaging templates.
A sample timeline can help with marketing a communications campaign from beginning to end of open enrollment. The kit can be seen in a webinar you sign up for. Access it at the PlanSource website.
#2: Managing the hiring, onboarding, and benefits process
Isn't it gratifying when computers can actually take on duties you find tedious? Unless you find the onboarding and data entry process extremely interesting and life-affirming, of course. Software from Flock helps manage HR, benefits, and compliance, and now it's adding an applicant tracking system from Greenhouse for hiring, onboarding, and managing employees.
The partnership will let HR import candidate information into Flock, with the goal of streamlining the hiring and onboarding process. The HR platform is available for small to midsize businesses and insurance brokers can subsidize or sponsor the benefits administration module. Learn more at the Flock website.
#3: 5 ACA plans to be offered to Arizona residents
Okay, technically it's not a solution. Still, someone you know might want to know that five different Affordable Care Act plans will be available during open enrollment from Blue Cross Blue Shield of Arizona (BCBSAZ).
The five include EverydayHealth, Portfolio and SimpleHealth. Members who enroll in the plans use their primary care provider to coordinate their care. The ACA plans will be offered in 14 of Arizona's 15 counties, and, as you know, open enrollment runs from November 1, 2016 through January 31, 2017.
To help find the right plan, Blue Cross Blue Shield is pointing Arizonans toward their local broker or to Cover Arizona.
#4: Online benefits administration
This is the year of partnering in the benefits industry. Employee benefits, HR and payroll provider BenefitMall is partnering with EaseCentral to offer additional online benefits administration.
The goal is to help with completing enrollments in a timely way. Brokers will now be able to choose between EaseCentral's all-in-one software solution and BenefitMall's online benefits administration system, EmployerFocus. Learn more at the BenefitMallwebsite.
#5: New option to enroll employees in voluntary benefits
Did we mention partnering? Yes? Transamerica is partnering with Maxwell Health to expand enrollment options for key employee benefits.
The partnership will enable Transamerica to offer help to employers in streamlining enrollment, administration, reporting, communication, and engagement processes, while allowing benefit advisors to browse, compare and quote benefits in an intuitive way. To learn more, see the Transamerica website or call 866-872-6726.
#6: New ACA compliance and reporting solutions
Affordable Care Act reporting is pretty darn fun. Still, there's probably something else you'd rather be doing, like going to the dentist for a root canal. This newly designed product from SyncStream Solutions offers both Affordable Care Act compliance and reporting.
The new solutions were designed to meet compliance requirements through a guided workflow that marries employer data with ACA analytics to achieve ACA compliance and provide the assurance of auditability.
SyncStream's product offers employee tracking and ACA full-time status determination, generates the proper forms to meet IRS requirements, populates IRS indicator codes based on business logic, and normalizes employer data into ACA-compliant language, among other features. For more information, visit the SyncStream Solutions website.
See the original article Here.
Source:
Marwitz, C. (2016 October 24). 6 new solutions for benefits brokers and HR managers. [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/10/24/6-new-solutions-for-benefits-brokers-and-hr-manage?kw=6+new+solutions+for+benefits+brokers+and+HR+managers&et=editorial&bu=BenefitsPRO&cn=20161025&src=EMC-Email_editorial&pt=Daily&page_all=1
Bring out the appetizers Karie!
This month, we are bringing you some food favorites of our own Karie Waddell Gallo!
Karie joined Saxon Financial Consulting in April of 2003 as our Office Manager. Karie is now our Director of Individual Insurance and Medicare Benefits.
When it comes to eating out, her favorite spot is the Wild Ginger Asian Bistro here in Cincinnati. "Their Crispy Pad Thai is soooo delicious. Because I am not a 'spicy' food lover, they allow you to customize your level of spice. This makes it perfect for each individual. The sushi is quite good also. Lots of variety to choose from."
"When we have a “Dine In” night we usually invite family over for “Appetizer Night”. Our favorites include: Buffalo Chicken Dip, Hanky Panky, Boneless wings and our All-time Favorite “Go to” Dish: Swiss Cheese Bacon Dip. It is best served warm and gooey. We prefer Town House Crackers for dipping."
Here's what you'll need:
- 8oz of whipped cream cheese
- 1/2 cup of mayo
- 2oz of chopped green onion
- 1 1/2 cup shredded swiss cheese
- 1 pack real bacon bits
Here's how Karie does it:
- Preheat oven to 350 degrees Fahrenheit.
- Mix cream cheese, mayo, green onion, and swiss cheese together in a flat cooking dish.
- Sprinkle the bacon bits over the top.
- Bake for 20-25 minutes or until the cheese is bubbling.
With a great appetizer, who needs a main course? This looks yummy Karie!
Study: What benefits do employees go for on private exchanges?
Jack Craver gives insight on the best benefits options for private exchanges
A new study offers insight into the types of benefits and benefit designs employees go for when given the choice.
The study, by the Private Exchange Research Council, analyzed hundreds of thousands of benefit purchases made by workers whose employer offers benefits through a private exchange.
The average employer that uses a private exchange offers 14 different benefits and six medical plans, the study found. Employees purchased an average of 4.4 products in 2015, up from 3.6 the previous year.
Older workers are more likely to buy more coverage, with 44 percent of Gen Xers and 42 percent of baby boomers buying more than four products, compared to only 30 percent of millennials.
While employers are increasingly demanding that employees accept high-deductible health plans accompanied by a health savings account, the majority of workers analyzed in the study appear to have traditional health plans, although the percentage with HSAs is rising. Forty-two percent of employees had an HSA in 2015, up from 38 percent in 2013.
Those who opt for high-deductible HSA-qualifying plans tend to be younger and healthier; that’s no surprise. However, the study also found that men and high-paid employees tend to favor such plans more than women and lower-paid employees.
Perhaps surprisingly, the study also found that nontraditional insurance products, such as pet insurance, legal insurance and identity theft insurance, are more likely to be offered by smaller companies.
Private exchanges and the employers that use them describe them as a way to increase employees’ engagement with their benefits. In a health care system that many have argued is overpriced and inefficient because the costs have been hidden behind health plans largely paid by employers, private exchanges are touted as a way to make individuals more sophisticated health care consumers that make conscious decisions about what services they want and need.
Private exchanges got a big boost earlier this year when Starbucks announced that it would be offering its employees an array of health plans to choose through an exchange run by Aon.
In a statement accompanying the study’s release, Christopher Condeluci, one of the principals of Private Exchange Research Council, described the group and its research as addressing a lack of data on the types of benefits that individual consumers favor.
"Knowing what plans people want and how they choose them will go a long way in helping the benefits industry better meet employers' and employees' needs,” he says.
See the original article Here.
Source:
Craver, J. (2016 October 20). Study: what benefits do employees go for on private exchanges? [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/10/20/study-what-benefits-do-employees-go-for-on-private?kw=Study:%20What%20benefits%20do%20employees%20go%20for%20on%20private%20exchanges?&et=editorial&bu=BenefitsPRO&cn=20161024&src=EMC-Email_editorial&pt=Daily
15 voluntary benefits trends heading into 2017
Alan Goforth lists the top benefits trends of 2017.
Predicting industry trends is as much a sign of the end of the year as after-Christmas sales and New Year's resolutions.
Although predicting the future is only an educated guess, one thing is certain — voluntary benefits are here to stay.
Carriers, brokers, employers and workers all give a thumbs-up to the increased flexibility and opportunities for cost control they bring to benefits packages.
Here is what may lie over the horizon in 2017.
THE MARKET IS BULLISH
As a result, the quantity and quality of voluntary benefits will continue to grow. Examples of traditional voluntary benefits employers are likely to add include gap coverage, short-term disability, cancer, critical illness, prescription, dental, life insurance and hospital supplemental policies. Brokers should make sure they have these products in their portfolios.
WELLNESS PROGRAMS GET FISCAL
Most businesses understand that the size of an employee's waistline can correlate to attendance, productivity and turnover. Many also are starting to realize the link between the size of their bank account and job performance.
Smart employers are adding voluntary benefits that can help workers reduce stresses associated with finances and debt. These can include financial education, financial counseling, employee purchase programs, parental leave, retirement planning and even short-term loans under certain circumstances.
A-WEAR-NESS IS INCREASING
Technology is taking the guesswork out of employee wellness programs. Nearly two-thirds of carriers surveyed expect wearable technologies to have a significant impact on their industry, according to Accenture's annual Technology Vision report. Fitbits and similar devices enable employees to quantify the results of their effort, which both inspires them and provides employers valuable feedback about the effectiveness of their programs. An increasing number of businesses now subsidize the cost of wearable devices or set up payroll deductions to cover the expense.
ENGAGEMENT GOES HIGH-TECH
Year-in and year-out, HR professionals cite employee engagement as one of their most vexing issues. Traditional tactics are becoming less effective with millennial employees, who often prefer voluntary benefit portals and enrollment platforms.
"Millennials get information on their own," said Aprilyn Chavez Geissler, owner of Geissler Agency Inc. in Albuquerque. "However, when it's time to purchase, they still want the personal service and an advisor to help them. As a large demographic, they are similar to the silent generation in that they think through their purchases and do research on their own."
CRITICAL ILLNESS REACHING CRITICAL MASS
Critical illness insurance was once a blip on the radar screen of voluntary benefits packages — but not anymore. It is becoming an increasing popular option as the workforce ages and companies reduce primary health coverage and shift the cost of primary medical onto
“Critical illness insurance is by far the fastest-growing insurance product on the market," said Mark Randall, a researcher for GoldenCare in Minneapolis. "Even though the market share is still fairly small, it's a hot product. The bottom line is that every broker should add this product to their portfolio.”
VOLUNTARY BENEFITS REDEFINED
One sure sign of growing demand for voluntary benefits is the fact that many definitions have become obsolete. In the past, voluntary benefits were limited to such bread-and-butter options as dental or vision insurance. Today, however, they are all about lifestyle benefits, such as health club memberships, legal services or pet insurance. A good working definition of a voluntary benefit is anything that can be deducted from an employee's paycheck.
CONSUMERS DRIVE PLANS
A well-designed consumer-driven health plan creates a win-win scenario. Employers hold the line on costs, and employees pay only for the coverage they need and want. This can mean a transition to high-deductible health plans and health savings accounts or health reimbursement arrangements that help employees pay their out-of-pocket expenses and allow them to retain unspent contributions.
TOOLS PROMOTE TRANSPARENCY
Information is a double-edged sword: Employees can be overwhelmed by the voluntary benefit options available to them, but they are also empowered to make smart choices. Benefits providers, brokers and employers are providing user-friendly tools that increase transparency. Studies show that this is especially important to younger workers.
Fifty-two percent of millennials report searching online for health or care-related information, and reliance on social media, patient portals and performance scorecards is growing. One-quarter of consumers say they have looked at a scorecard or report card to compare the performance of doctors, hospitals or health plans, compared to 19 percent two years ago. Among millennials who need medical care, scorecard use has grown from 31 percent to 49 percent.
THE DOCTOR WILL SEE YOU… ONLINE
Telemedicine is a natural byproduct of increased telecommuting. The practice is both a cost-effective option for employers and a perk for employees who are paying more out of pocket for health care. On-call services can bring virtual health care providers into the office with advice about preventive care and nonthreatening illnesses.
ANALYTICS REDUCING GUESSWORK
Anyone remotely involved in the benefits business knows that the industry is swimming in tons of data. Innovative employers are putting this information to work to design better plans that improve health care and reduce expenses. Claims data and historical use patterns demonstrate how much employees can save on new plans by making better decisions. This information also helps employers get a better handle on plan costs, employee adoption and administrative efficiency.
NONTRADITIONAL BENEFITS BOOMING
Employees continue to express interest in new, nontraditional voluntary benefits, and carriers are responding. According to a study by Eastbridge Consulting, 13 percent of employees have selected employee purchase programs; 8 percent have selected legal plans; 3 percent have selected identity protection; and 1 percent selected pet insurance. The relatively low numbers reflect the fact that these options are new, according to researchers.
These percentages are expected to grow. Nontraditional voluntary benefits offer workers a way to obtain products and services through convenient payroll deduction. Most nontraditional offerings provide immediate, tangible benefits that can be used any time, unlike many core benefits that employees need only when they are sick or injured.
CAREER DEVELOPMENT IS HOT
Employees are eager to improve themselves, especially if doing so is cost-effective. Financial planning and online educational services, including college courses, certifications and career development, are becoming popular. Look for more of these, such as Graduate Management Admission Test prep and Graduate Medical Education courses, to be added.
MINIMUM WAGE HIKES MAY SPIKE DEMAND
Although the drive toward a $15 per hour minimum wage in some cities has been controversial, it may have an upside in demand for voluntary benefits.
"With the California minimum wage going to $15 an hour, those employees will have extra money to opt for more voluntary benefits," said Wayne Sakamoto, owner of Health Insurance Interactive Inc. in Naples, Florida. "This extra money will help them get into a nicer apartment, buy a home, get a car or opt to purchase more voluntary benefits. Benefits such as dental and vision insurance are a goodwill gesture by the employer."
DEMAND CREATING COMPETITION
Brokers, employers and workers all may benefit from the increasing number of carriers offering voluntary benefits.
"Brokers now have a lot more different carriers in voluntary benefits than they did several years ago," said Kathy O'Brien, vice president of voluntary benefits and national client group services for Unum in Chattanooga, Tennessee. "They have to be very knowledgeable about the carrier, what they will do to meet the needs of their clients and what types of service they offer, not just in enrollment but also in plan administration, how they will deliver the services, how they will pay and handle billing information."
VOLUNTARY BENEFITS MUST BE INTEGRATED
A well-designed package of voluntary benefits is more efficient when integrated seamlessly with traditional benefits, and not merely tacked on. Learning how best to do this is an ongoing challenge.
"Understanding how all of the different solutions work together is critical, especially when paired with a high-deductible health plan," said Paul Goedde, executive vice president of the Voluntary Employee Benefits Board and product management lead for Cigna in Philadelphia. "Not only does it help the employer attract and retain talent, it helps them manage their bottom line with more-productive and satisfied employees."
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Source:
Goforth, A. (2016 October 25). 15 voluntary benefits trends heading into 2017. [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/10/25/15-voluntary-benefits-trends-heading-into-2017?kw=15+voluntary+benefits+trends+heading+into+2017&et=editorial&bu=BenefitsPRO&cn=20161025&src=EMC-Email_editorial&pt=Daily&page_all=1
ACA exchanges report strong early application activity
Busy start to the 2017 open enrollment period 50 percent higher than last year, by Allison Bell
Managers of HealthCare.gov say the open enrollment period for 2017 has gotten off to a busy start.
The level of activity during the first six hours of the open enrollment period was 50 percent higher than during the comparable period in 2015, and HealthCare.gov took in 150,000 coverage applications during the first full day of the enrollment period, according to officials at the U.S. Department of Health and Human Services.
HHS set up HealthCare.gov to provide Affordable Care Act exchange enrollment and account administration services in states that are unable or unwilling to handle that job themselves.
The open enrollment period for 2017 started Tuesday.
A year ago, HHS officials said HealthCare.gov had taken in about 250,000 coverage applications during the first full day of the open enrollment period for 2016.
MNsure, Minnesota's state-based exchange enrollment system, was down much of the day yesterday because of some combination of heavy volume, technical glitches and efforts by ACA opponents to crash the system by flooding it with visits. In spite of the technical problems, about state residents used the system to apply for coverage for about 5,000 people, according to the Twin Cities Pioneer Press.
MNsure may have spurred consumers to try to sign up for exchange plan coverage early by announcing that it will impose enrollment caps for 2017 on coverage from most participating carriers. Blue Plus is the only exchange issuer selling coverage without protection from an enrollment cap.
George Kalogeropoulos, the chief executive officer of HealthSherpa.com, a San Francisco-based "Web broker entity" that helps retail insurance agents and brokers submit ACA exchange coverage applications for their customers, says HealthSherpa.com activity levels support the idea that the ACA exchange system has been very busy.
"As of day two of open enrollment, the traffic on HealthSherpa.com has been through the roof," Kalogeropoulos said in an email. "We know HealthCare.gov is getting 50 percent more website visits compared to last year, and our website is experiencing that surge as well."
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Source:
Bell, A. (2016 November 04). ACA exchanges report strong early application activity. [Web blog post]. Retrieved from address https://www.lifehealthpro.com/2016/11/02/aca-exchanges-report-strong-early-application-acti?slreturn=1478548849