2019: A Look Forward
A number of significant changes to group health plans have been made since the Affordable Care Act (ACA) was enacted in 2010. Many of these changes became effective in 2014 and 2015 but certain changes to a few ACA requirements take effect in 2019.
Changes for 2019
- Cost-sharing Limits – Non-grandfathered plans are subject to limitations on cost sharing for essential health benefits (EHB). The annual limits on cost sharing for EHB are $7,900 for self-only coverage and $15,800 for family coverage, effective January 1, 2019.
- Health plans with more than one service provider can divide maximums between EBH as long as the combined amount does not exceed the out-of-pocket maximum limit for the year.
- Beginning in 2016, each individual – regardless of the coverage the individual is enrolled – is subject to the self-only annual limit on cost sharing.
- The ACA’s annual cost-sharing limits are higher than high deductible health plans (HDHPs) out-of-pocket maximums. For plans to qualify as an HDHP, the plan must comply with HDHP’s lower out-of-pocket maximums. The HDHP out-of-pocket maximum for 2019 is $6,750 for self-only coverage and $13,500 for family coverage.
- Coverage Affordability Percentages – If an employee’s required contribution does not exceed 9.5 percent of their household income for the taxable year (adjusted each year), then the coverage is considered affordable. The adjusted percentage for 2019 is 9.86 percent.
- Reporting of Coverage – Returns for health plan coverage offered or provided in 2018 are due in early 2019. For 2018, returns must be filed by February 28, 2019, or April 1, 2019 (if electronically filed). Individual statements must be provided by January 31, 2019.
- ALEs are required to report information to the IRS and their eligible employees regarding their employer-sponsored health coverage. This requirement is found in Section 6056. Reporting entities will generally file Forms 1094-B and 1095-B under this section.
- Every health insurance issuer, self-insured health plan sponsor, government agency that provides government-sponsored health insurance, and any other entity that provides MEC is required to finalize an annual return with the IRS, reporting information for each individual who is enrolled. This requirement is found in Section 6055. Reporting entities will generally file Forms 1094-C and 1095-C under this section.
- ALEs that provide self-funded plans must comply with both reporting requirements. Reporting entities will file using a combined reporting method on Forms 1094-C and 1095-C.
- Forms Used for Reporting – Reporting entities must file the following with the IRS:
- A separate statement for each individual enrolled
- A transmittal form for all returns filed for a given calendar year.
- Electronic Reporting – Any reporting entity that is required to file 250 or more returns in either section must file electronically on the ACA Information Returns (AIR) Program. Reporting entities that file less than 250 returns can file in paper form or electronically on the ACA Information Returns (AIR) Program.
- Penalties – Entities that fail to comply with the reporting requirements are subject to general reporting penalties for failure to file correct information returns and failure to furnish correct payee statements. Penalty amounts for failure to comply with the reporting requirements in 2019 are listed below:
| Penalty Type | Per Violation | Annual Maximum | Annual Maximum for Employers with up to $5 million in Gross Receipts |
| General | $270 | $3,275,500 | $1,091,500 |
| Corrected within 30 days | $50 | $545,500 | $191,000 |
| Corrected after 30 days but before August 1 | $100 | $1,637,500 | $545,500 |
| Intentional Disregard | $540* | None | N/A |
**Intentional disregard penalties are equal to the greater of either the listed penalty amount or 10 percent of the aggregate amount of the items required to be reported correctly.
Expected Changes
- Health FSA Contributions – Effective January 1, 2018, health FSA salary contributions were limited to $2,650. The IRS usually announces limit adjustments at the end of each year. This limit does not apply to employer contributions or limit contributions under other employer-provided coverage.
- Employer Shared Responsibility Regulations – The dollar amount for calculating Employer Shared Responsibility 2 penalties is adjusted for each calendar year. Applicable large employers (ALEs) must offer affordable, minimum value (MV) healthcare coverage to full-time employees and dependent children or pay a penalty. If one or more full-time employees of an ALE receive a subsidy for purchasing healthcare coverage through an Exchange, the ALE is subject to penalties.
- Applicable Large Employer Status – ALEs are employers who employ 50 or more full-time employees on business days during the prior calendar year.
- Offering Coverage to Full-time Employees – ALEs must determine which employees are full-time. A full-time employee is defined as an employee who worked, on average, at least 30 hours per week or 130 hours in a calendar month. There are two methods for determining full-time employee status:
- Monthly Measurement Method – Full-time employees are identified based on a month-to-month analysis of the hours they worked.
- Look-Back Measurement Method – This method is based on whether employees are ongoing or new, and whether they work full time or variable, seasonal or part-time. This method involves three different periods:
- Measurement period – for county hours of service
- Administration period – for enrollment and disenrollment of eligible and ineligible employees
- Stability period – when coverage is provided based on an employee’s average hours worked.
- Applicable Penalties – ALEs are liable for penalties if one or more full-time employees receive subsidies for purchasing healthcare coverage through an Exchange. One of two penalties may apply depending on the circumstances:
- 4980H(a) penalty – Penalty for not offering coverage to all full-time employees and their dependents. This penalty does not apply if the ALE intends to cover all eligible employees. ALEs must offer at least 95 percent of their eligible employees’ health care coverage. Monthly penalties are determined by this equation:
- ALE’s number of full-time employees (minus 30) X 1/12 of $2,000 (as adjusted), for any applicable month
- The $2,000amount is adjusted for the calendar year after 2014:
- $2,080 – 2015; $2,160 – 2016; $2,260 – 2017; $2,320 – 2018
- 4980H(b) penalty – penalty for offering coverage – ALEs are subject to penalties even if they offer coverage to eligible employees if one or more full-time employees obtain subsidies through an Exchange because:
- The ALE didn’t offer all eligible employees coverage
- The coverage offered is unaffordable or does not provide minimum value.
- Monthly penalties are determined by this equation: 1/12 of $3,000 (as adjusted) for any applicable month
- $3,120 – 2015; $3,240 – 2016; $3,390 – 2017; $3,480 – 2018
- 4980H(a) penalty – Penalty for not offering coverage to all full-time employees and their dependents. This penalty does not apply if the ALE intends to cover all eligible employees. ALEs must offer at least 95 percent of their eligible employees’ health care coverage. Monthly penalties are determined by this equation:
Contact one of our advisors for assistance or if you have any questions about compliance in the New Year.
SOURCES: www.dol.gov, www. HHS.gov, https://www.federalregister.gov/documents/2018/04/17/2018-07355/patient-protectionand-affordable-care-act-hhs-notice-of-benefit-and-payment-parameters-for-2019, https://www.irs.gov/e-fileproviders/air/affordable-care-act-information-return-air-program
What’s in store for voluntary benefits in 2019
Voluntary benefits will continue to be popular with benefit managers who are trying to lower healthcare costs and retain employees. Read this blog post for more 2019 voluntary benefits trends.
Benefit managers are still catching their breath as the curtain closes on this year’s open enrollment season. But smart benefits managers are already evaluating new products and benefit changes for the 2019-2020 season.
Themes around cost-saving strategies concerning healthcare premiums will continue to resonate — but what else will happen in the upcoming year? Voluntary benefits will continue to hold the key for many benefit managers looking to lower costs and maintain value for employees by providing flexibility to a diverse workforce.
Voluntary benefits offer pivotal advantages to employers and employees alike. By offering these programs through an employer, employees often receive better pricing, plan designs and underwriting support compared to what is available on the individual market. Payroll deduction capability and enrollment as part of their normal core enrollment process and portability are also available.
Here are three voluntary benefits to watch in 2019.
Employee purchase programs.
Nearly one quarter of all Americans do not have adequate emergency savings, according to a survey by consumer financial services company Bankrate. This means that if they need to make a significant purchase, they are likely to withdraw a loan from their 401(k) plan.
Employee purchase programs help employees pay for items they may need immediately, but may not have the funds or credit available. These programs generally allow employees to spread out the payments on the purchased products — such as appliances, car tires or computers — over a period of time through payroll deduction. Young employees who are trying to establish credit while managing student loan repayments — and may be strapped for cash — can especially benefit from an employee purchase programs.
Group legal insurance plans.
Group legal plans are not new, but they are still valuable for employees. For a cost that is less than a cup of coffee, group legal plans provide employees with access to attorneys for will preparation, estate planning, dealing with elderly parents, traffic violations, real estate purchases, and document review and preparation. These plans offset the expense of professional legal representation and the time it takes to locate the right representation to handle legal matters.
These plans may be especially valuable to employees who are thinking of buying a house, adopting a child or planning for their estate. Still, group legal insurance plans are available to all employees, and can provide a buffer for workers who may need to navigate identity restoration after a theft or combat an unforeseen traffic ticket. These plans also save employees time and money when the need for a legal professional arises.
Student loan benefits.
Student loan benefits have been one of the hottest topics in voluntary benefits in 2018 and it’s not going away any time soon. An IRS private letter ruling this past August allowed one company to amend its 401(k) plan to allow employer contributions of up to 5% to individuals who contribute at least 2% to their student loan. This may just be the start to more legislation concerning student loan debt solutions.
In the interim, as the tuition debt crisis grows, employers are seeking ways to support their employees. There are several strategies that can be employed.
Some solutions can be offered at no cost, while others have administrative charges and the cost of contributions to factor in. For employers who have the budget, a student loan repayment plan may be the answer. There are many vendors who can partner with an employer to help develop a plan that is designed to meet the company’s goals.
Employers without a budget can seek a student loan solution partner that offers comprehensive educational tools such as written materials, debt navigation tools, FAQs, one-on-one counselors and webinars. Another option is to offer student loan refinancing. These lenders can help employees manage their debt. Even though refinancing is not for everyone, well-vetted student loan refinancing partners should be considered as part of a comprehensive student loan debt solution strategy. Understanding the approval rate is important, as well as whether there are any other incentives, such as a welcome bonus, that may be applied to the loan principal.
SOURCE: Marcia, P. (28 November 2018) "What’s in store for voluntary benefits in 2019" (Web Blog Post). Retrieved from: https://www.benefitnews.com/opinion/whats-in-store-for-employers-and-voluntary-benefits-in-2019
Viewpoint: Why Respect, Dignity and Kindness Are Foundational Workplace Principles
Corporate leadership shouldn't wait for disruptive incidents to occur before they focus on the state of their workplace environment. Read this blog post to learn more.
SHRM has partnered with Security Management magazine to bring you relevant articles on key HR topics and strategies.
This is the #MeToo era. The great wave of public accusations involving inappropriate conduct such as sexual harassment between managers, employees and co-workers has washed over U.S. workplaces, unsettling everything in its wake.
But sexual harassment is not the only conduct that can help turn a working environment hostile. Given this, employers who take action now to help establish and solidify a welcoming and hostility-free work environment will be better positioned for the future. Such actions can come in many forms, ranging from zero-tolerance anti-harassment policies and violence prevention training to diversity task forces and team-building exercises.
While they vary, these actions all benefit from a proactive approach. Opposing views and opinions are inevitable among a diverse workforce, but leaders of organizations should not wait until disruptive incidents break out before focusing on the state of the workplace environment. Instead, they can start immediately.
Respect and Dignity
Human resources is a team sport. No one HR manager, no matter how talented or knowledgeable, can completely shoulder the burden of protecting his or her firm from employee issues and litigation. A cohesive HR team, on the other hand, is positioned to tackle anything thrown its way. But when one gear gets out of whack, the whole team is affected and compromised.
Take, for example, how an entire company can be impacted by one disruptive manager. Sam's team was led by a small group of managers who worked well together; they collaborated to achieve goals and boost one another to success. However, a new manager, Chris, was brought on.
Chris had a markedly different type of attitude and leadership style. Chris was demanding and sometimes even yelled at employees in public. He occasionally disparaged another manager's directions to team members and would even threaten a firing in an attempt to improve performance.
A few months after this leadership transition, some employees began to leave Sam's team by choice. But those are not the only changes triggered by the new manager. Some of Sam's team members absorbed the negative qualities Chris exhibited, including degrading public chastisements, gossiping and expressing increased agitation in the office. Chris' overwhelming negativity threw a wrench into a once strong team and threatened to break it down into an unproductive group of individuals.
Before Chris took over, Sam's team members respected one another and successfully accomplished goals. Chris' harsh leadership eroded the members' respect and kindness, causing productivity to decrease and spirits to drop.
How can HR help make sure this type of situation is addressed and avoided? When building a team, it is important to establish respect, dignity and kindness as foundational principles. This will very likely increase productivity and reduce the risk of violent workplace behaviors. When employees feel respected and treated with dignity, they are more likely to treat co-workers and customers the same way. This creates a positive culture within the organization.
To facilitate this, HR should go beyond simply asking employees to be civil and respect one another. They should also explain how to do so, and demonstrate what civility means to the organization by providing examples of positive interactions.
Support the Company's Culture
During my time as a line manager, there were key opportunities for me to support the company culture. All managers can take advantage of the same opportunities, if their organizations are willing to provide them.
For example, orientation sessions are an opportunity for HR leaders to introduce themselves, their department and the values of the organization to those who are being onboarded. Time can be devoted to explaining appropriate workplace behavior through the use of scenario-based situations.
In addition, department team meetings offer opportunities for HR professionals to join in to discuss relevant issues and provide training through small group discussion or case study review. Team members can assess a situation and provide feedback on how it should have been appropriately handled. Using both positive and negative behaviors as examples will help employees understand the difference.
Open houses are another possible venue for educating discussions. HR may arrange with company leaders to have a time where employees stop by, ask questions and participate in discussions that help them understand their role as part of the larger effort to maintain a healthy, inclusive workplace.
Finally, it is important to remember that HR staff should help line managers serve as role models of appropriate behavior. If they are behaving badly by being rude, disrespectful or uncivil, how can HR expect them to help the organization promote a culture that values everyone?
In the end, HR cannot assume that people managers understand what is and is not appropriate. Setting expectations from the start, and clearly demonstrating how to positively act and show respect to co-workers is an effective way for HR to set the right tone—and a more active and effective approach than simply hoping for the best. This will have a ripple effect throughout the workforce, and it will help prevent future breaches of conduct from triggering a domino effect of disrespect, such as the one caused by Chris' behavior.
This article is adapted from Security Management magazine with permission from ASIS © 2018. All rights reserved.
SOURCE: Solon, R. (28 November 2018) "Viewpoint: Why Respect, Dignity and Kindness Are Foundational Workplace Principles" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/employee-relations/Pages/Viewpoint-Why-Respect-Dignity-and-Kindness-Are-Foundational-Workplace-Principles.aspx
Employee benefit trends to watch in 2019
Are you looking ahead to 2019? As the year comes to an end, employment rates are continuing to rise and the economy is still showing signs of growth. Continue reading for employee benefits trends to watch in 2019.
As we close out 2018, the economy is still showing signs of tremendous growth and employment rates continue to rise.
For employers looking ahead to next year, the health of the economy will play a part in how they begin thinking about which benefits to implement. Not only can employees be more selective about the companies they apply to work for, but companies will have to differentiate themselves with their benefits catalog to attract the best candidates.
Along with a shifting political climate, the impacts of the Affordable Care Act will still need navigating in 2019 as health care costs remain a prominent issue.
Shifting health care costs
Health care costs are on track to eclipse $15,000 per employee per year in 2019. In an effort to reduce these costs, employers are shifting their attention to finding alternative health care options for employees.
Expansion of telemedicine and virtual care are at the top of the list for employers looking to reduce their health care costs.
Additionally, after the passing of the Affordable Care Act, many employers shifted their attention to offering consumer-direct health plans (CDHPs) as the sole option at their organization.
These plans combined high-deductibles with health savings accounts. By asking employees to pay for their doctor's visits with a savings account, they’re likely to seek out cheaper coverage, thus saving the company money overall.
The popularity of CDHPs was driven in large part by a proposed 40 percent tax on high-value health care plans. Employers quickly moved to CDHPs to save money, but the proposed tax has yet to take effect and employers are less eager to shift to CDHP options so quickly.
Custom communications
Personalized communications to employees about their benefits are becoming more prevalent.
Every employees’ benefits journey is different and their communications should be too.
As employees show interest or a need for a certain type of benefit, benefits platforms are gearing up to be able to communicate directly with employees to help.
For employees who prefer to communicate via text message or calendar reminders, platforms will begin to integrate more closely with employees’ lives to deliver the guidance they need.
Employers should focus on partnering with providers who are delivering customized messaging to employees to maximize engagement and adoption rates. 2019 will likely see employers not only offering more customized and personalized benefits, but also more robust communications that speak directly to employees’ needs.
Benefits over salary
Hiring efforts have been made difficult by a strong job market and economy. Employers in almost every industry are struggling to attract talent because of stiff competition.
Basic benefits like paid vacation and a 401(k) aren’t enough to break through the noise anymore. People are able to be more selective about which jobs they apply for based on the benefits being offered.
In 2019, employers will need to focus on making their entire benefits package more enticing—including offering help with things like student loans, tuition reimbursement, and college savings plans.
Rise of voluntary benefits
Voluntary benefits, while supplemental to core benefits like health insurance, are a way to address the unique needs of employees and allow employees to personalize their rewards.
Voluntary benefits are appealing to employees because they offer a nice flexibility to their compensation package. As employers are discovering that benefits are not a one-size-fits-all package, voluntary benefits provide a cadre of solutions that can be built for the employee base.
Attractive benefits can make the difference between whether a prospective employee accepts a job offer or not. In 2019, employees will demand more from their benefits packages and the addition of voluntary benefits will be used as a factor in recruitment.
As 2018 comes to a close, employers should focus on talking to employees about their benefits and where they’d like to see improvement. Start conversations with your IT team about security measures you can work towards in 2019 and try to begin the conversation with your benefits providers about how to communicate more directly with your employees to stay competitive in the current job market.
SOURCE: Whitlow, C. (29 November 2018) "Employee benefit trends to watch in 2019" (Web Blog Post). Retrieved from https://www.benefitspro.com/2018/11/29/employee-benefit-trends-to-watch-in-2019/
Counting sleep: New benefit encourages employees to track their shut-eye
Are your employees getting enough sleep? According to the CDC, about one-third of U.S. adults reported getting less than the recommended amount of rest. Read this blog post to learn more.
It’s one of employers’ recurring nightmares: Employees aren’t getting enough sleep — and it’s having a big impact on business.
Roughly one-third of U.S. adults report that they get less than the recommended amount of rest, which is tied to chronic health issues including Type 2 diabetes, heart disease, obesity and depression, the Centers for Disease Control reports.
That lack of sleep is also costing businesses approximately $411 billion a year in lost productivity, according to figures from global policy think tank RAND Corporation.
But one company thinks it has a solution to the problem: A new employee benefit that helps workers track, monitor and improve sleep.
Welltrinsic Sleep Network, a subsidiary of the American Academy of Sleep Medicine, this month launched an online sleep wellness program to help workers get more out of their eight hours of shuteye. Employees use the online tool to create a sleep diary, which tracks the quantity and quality of rest, says Dr. Lawrence Epstein, president and CEO of Welltrinsic. Employees manually log their time or upload data from a fitness tracker, like a Fitbit, to the platform.
Employers can offer the program as a benefit to complement broader wellness initiatives. The program allows companies to track how often an employee uses the platform and offer incentives like days off or reduced health insurance premiums if they are consistent, Epstein says. Welltrinsic charges an implementation fee to set up a company’s account, plus a per-user fee determined by the number of participants.
“Sleep affects a lot of aspects of how people feel about their work and their productivity,” Epstein says. “If you can help improve their health and morale, it will help with retaining staff.”
Epstein says lethargic workers are more likely to miss work or not be productive when they are in the office. But there are actionable ways employees can improve the quality of their rest, he adds.
Welltrinsic’s program gives employees a comprehensive review of their sleep. Then employees set a sleep goal — the goal can be as simple as getting to bed at a particular time or improving sleep quality. After employees have logged their data, Welltrinsic provides them with custom tips for improving sleep, which may include reducing light exposure or increasing mindfulness and relaxation.
Still, sometimes an employee may have a more serious issue, Epstein says. If numerous efforts to improve a nighttime ritual have fallen short, an employee may need to be examined for a sleep disorder, he explains. To that end, the program also offers sleep disorder screening tools. If it appears an individual is at risk for a disorder, Welltrinsic provides workers with a list of specialists who can help.
“If we feel they are at risk for a sleep disorder, we can direct them to somebody close to them who will be able to address their problem,” Epstein adds.
The American Academy of Sleep Medicine is providing Welltrinsic’s sleep program as a benefit to its own roughly 60 workers. Meanwhile, Epstein says Welltrinsic recently engaged in a beta test of the program with multiple employers but did provide additional names.
“It’s a way that they can help motivate their employees to improve their own health,” he says.
Epstein doesn’t think that employees are aware that they aren’t getting enough sleep — and demanding work schedules aren’t helping. He’s hoping the program will help people realize that sometimes they need to turn off their email and take a rest.
“We are built to spend about a third of our lives sleeping, and there are consequences for not doing that,” he says. “Hopefully this helps get that message and information out to people.”
SOURCE: Hroncich, C. (20 November 2018) "Counting sleep: New benefit encourages employees to track their shut-eye" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/counting-sleep-new-benefit-encourages-employees-to-track-their-shut-eye?brief=00000152-1443-d1cc-a5fa-7cfba3c60000
Don't Mistake Perks for Corporate Culture
Are you mistaking great employee perks for great corporate culture? Too often, companies confuse employee perks with corporate culture. Continue reading to learn how to differentiate the two.
Too often, companies confuse perks and culture. Leaders think that to create a great culture, they should go purchase ping-pong and pool tables, get a keg for the office, or offer four-day workweeks. But these are all perks, not culture, which are two very different things. If a company only focuses on adding flashy perks, they may attract an employee, but they won’t retain them.
Don’t get me wrong, perks are great, but if there are beanbag chairs and no one likes each other, that doesn’t accomplish much. Allowing your employees to bring dogs to work is a perk. Texting an employee after they had to put their dog down is culture.
Culture is made up of emotion and experiences. It’s the intangible feelings created by tangible actions. It’s about caring for your people and creating a sense of community that allows employees to feel connected to something bigger than their individual role. It’s allowing them to feel comfortable to be themselves. Culture is creating an experience that employees wouldn’t otherwise be able to have. It’s spending the time to actually listen and support them in their personal lives, both good and bad. It’s about asking for their opinion and then acting on the feedback.
Perks are short-term happiness. They will attract talent, but if companies aren’t investing in professional and personal development, if they’re not willing to spend the time listening and gauging individual motivators, if there is a lack of empathy for an employee who is struggling with a personal issue, the employee will leave as soon as they are offered a higher paycheck elsewhere. It’s like a relationship: If all you get are flashy gifts from your significant other without any emotional investment or support, it will fizzle.
Culture is transparency, and that is a two-way-street. If leaders expect their staff to be transparent, they too have to be transparent with their staff. They stand up in front of their co-workers and share their mistakes that have cost money, damaged confidence and produced tears and heartache. They share mistakes to show employees, new and old, that if you are running 100 mph, mistakes will happen, but the future success will overshadow them. That you can learn from them.
What about the companies that have their core values of integrity and honesty painted on their walls, but when influential employees go against them, they’re not penalized? That’s fake. Culture is when leadership removes someone from the organization who is bringing others down regardless of them being the company’s top producer. They are dismissed because that is the right thing to do for the team.
Culture is holding people accountable. Pushing them to be better. Training them to learn how. Developing their skills and then allowing them to execute the directives. When people are challenged and pushed and they become better, you are establishing culture.
Building a culture is hard work. It’s not a one-month or one-year initiative. The truly great places to work—the ones that get all the recognition and accolades—didn’t start investing in employees for the awards. The awards were ancillary.
An employee who thinks of jumping ship can compare perks easily, but culture is much harder to evaluate. Instead of focusing on temporary benefits, leaders should focus on creating an environment which makes your company hard to leave.
SOURCE: Gimbel, T. (14 November 2018) "Don't Mistake Perks for Corporate Culture" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/dont-mistake-perks-for-corporate-culture
Originally posted on LaSalle blog.
Poor employee health costs employers half trillion dollars a year
According to a recent report from the Integrated Benefits Institute, poor employee health costs employers half a trillion dollars each year and almost 1.4 billion in missed work days. Read on to learn more.
Poor employee health is costing employers in a big way — to the tune of half a trillion dollars and nearly 1.4 billion days of missed work each year.
That’s according to a new report from the Integrated Benefits Institute, which finds that employees miss around 893 million days a year from illness and chronic conditions, and another 527 million days because of impaired performance due to those illnesses. Those days add up to $530 billion in lost productivity.
“To put this in further context, the cost of poor health to employers is greater than the combined revenues of Apple, Amazon, Microsoft, Netflix, eBay and Adobe,” says Thomas Parry, president of Integrated Benefits Institute, an independent nonprofit that serves more than 1,250 employers including Amazon, Kroger, McDonald’s and Walmart.
The $530 billion price tag is on top of what employers already spend on healthcare benefits. Employers pay $880 billion in healthcare benefits for their employees and dependents, which means that poor health costs amount to “60 cents for every dollar employers spend on healthcare benefits,” according to the study.
“There’s not a CEO or CFO that can placidly accept their business expending the equivalent of almost two-thirds of their healthcare dollars on lost productivity,” Perry says. “Illness costs this country hundreds of billions of dollars, and we can no longer afford to ignore the health of our workforce.”
Employers invest in healthcare benefits to maintain a productive workforce. But this new study suggests that more needs to be done to keep employees healthy, or strategies need to be put in place to lower spending. Or both.
“It’s critical that employers understand how strategies for managing healthcare spend — such as cost- shifting to employees or ensuring better access and more cost-effective care — can impact the kinds of conditions that drive illness-related lost productivity,” says Brian Gifford, director of research and analytics at IBI.
The study broke down the estimated costs of poor health into several categories:
Wage and benefits (incidental absence due to illness, workers’ compensation and federal family and medical leave): $178 billion.
Impaired performance (attributed to chronic health conditions): $198 billion.
Medical and pharmacy (workers’ compensation, employee group health medical treatments, employee group health pharmacy treatments): $48 billion.
Workers’ compensation other costs (absence due to illness, reduced performance): $25 billion.
Opportunity costs of absence (missed revenues, costs of hiring substitutes, overtime): $82 billion.
For its study, IBI used 2017 data from the U.S. Bureau of Labor Statistics as well as its own benchmarking data from 66,000 U.S. employers.
SOURCE: Paget, S. (20 November 2018) "Poor employee health costs employers half trillion dollars a year" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/poor-employee-health-costs-employers-half-trillion-dollars-a-year?brief=00000152-14a7-d1cc-a5fa-7cffccf00000
End-of-year FSA expenses: An employer cheat sheet
Do your employees still have unspent funds in their flexible spending accounts (FSA)? Often, reminding employees what expenses their FSA funds can help mitigate this issue. Read this blog post to learn more.
The scenario is all too familiar for employers and human resource managers: The year ends, and employees still have unspent funds in their flexible spending accounts. Whether employees forget that the money in their FSAs must be used or it will be lost, or they simply aren’t aware of which expenses can be covered by FSA funds, their frustration at losing money often falls on the employer.
Reminding employees which expenses are eligible to be covered by an FSA can help mitigate headaches for employers and HR departments in the new year and shed light on lesser-known options for making the best use of remaining funds before the end of the plan year.
As a general rule, an eligible expense is any medical expense the health plan doesn’t cover. This includes things such as out-of-pocket costs, co-pays, co-insurance, hospital visits and prescription drugs. Employees also can apply their FSA funds to dental and vision expenses, which often are not covered in health insurance plans.
Some eligible expenses employees might not be aware of include flu shots, prescription sunglasses, sunscreen that is 30 SPF or higher, grooming for service dogs, acupuncture, arch supports and nutritional consultations. Employees can also use money from FSAs to cover pregnancy tests and prenatal vitamins, hearing aids, canes and wheelchairs. They can also use funds to cover personal trainer fees, as long as a letter of medical necessity accompanies the claim.
The IRS determines which expenses qualify for FSAs and maintains a list on its website. Most FSA administrators have lists on their websites as well. FSA-holders can either search for individual expenses or scroll through the list to see what opportunities they might be missing. But it’s a good idea for employers to provide those lists for employees.
In addition to reminding employees what types of expenses are eligible for coverage by FSA funds, employers should review if their plan has a grace period, runout or rollover. If so, employers should communicate the details with employees, as this can help them take full advantage of the time they have to incur expenses and submit receipts for reimbursement.
A grace period is the amount of time an FSA-holder has after the end of the plan year to spend unused funds or incur expenses. A typical grace period is up to 2.5 months after the plan year ends. A run out is the amount of time an FSA-holder has after the end of the plan year to submit claims for reimbursement. In this case, expenses must be incurred before the end of the plan year. An FSA rollover allows up to $500 to be carried over from one calendar year to the next.
Employees also might not be aware that they can use FSA funds on a medical dependent, whether that dependent is covered by the FSA holder's health plan or not. For instance, if an employee has a 24-year-old daughter not covered by the employer health plan who needs a co-pay for a doctor appointment covered, the employee can use their FSA.
Lastly, it’s also important to make it clear to employees the distinction between an FSA and a health savings account. While many of the same expenses are eligible for coverage by either an FSA or HSA, make sure to remind employees about a few key distinctions. An HSA is not “use it or lose it.” All funds roll into the new year and do not need to be used up before the end of the plan year. And for an employee to use his or her HSA to cover a dependent’s medical expenses, the dependent must be a tax dependent.
Helping employees make the best use of their FSA funds before the end of the year not only positions the employer as a hero for saving employees’ hard-earned money, but it inevitably saves the employer from a headache heading into 2019.
SOURCE: Peterson, M. (19 November 2018) "End-of-year FSA expenses: An employer cheat sheet" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/end-of-year-fsa-expenses-an-employer-cheat-sheet?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
Coping with stress: Workplace tips
Are you effectively coping with workplace stress? The workplace is a common source of stress. Read this blog post for tips on how to cope with stress.
The workplace is a likely source of stress, but you're not powerless to the effects of stress at work. Effectively coping with job stress can benefit both your professional and personal life. Here's help taking charge.
Identify your stress triggers
Your personality, experiences and other unique characteristics all influence the way you respond to and cope with stress. Situations and events that are distressing for your colleagues might not bother you in the least. Or you might be particularly sensitive to certain stressors that don't seem to bother other people.
To begin coping with stress at work, identify your stress triggers.
For a week or two, record the situations, events and people who cause you to have a negative physical, mental or emotional response. Include a brief description of each situation, answering questions such as:
- Where were you?
- Who was involved?
- What was your reaction?
- How did you feel?
Then evaluate your stress inventory. You might find obvious causes of stress, such as the threat of losing your job or obstacles with a particular project. You might also notice subtle but persistent causes of stress, such as a long commute or an uncomfortable workspace.
Tackle your stress triggers
Once you've identified your stress triggers, consider each situation or event and look for ways to resolve it.
Suppose, for instance, that you're behind at work because you leave early to pick up your son from school. You might check with other parents or neighbors about an after-school carpool. Or you might begin work earlier, shorten your lunch hour or take work home to catch up in the evening.
Often, the best way to cope with stress is to find a way to change the circumstances that are causing it.
Sharpen your time management skills
In addition to addressing specific stress triggers, it's often helpful to improve time management skills — especially if you tend to feel overwhelmed or under pressure at work. For example:
- Set realistic goals. Work with colleagues and leaders to set realistic expectations and deadlines. Set regular progress reviews and adjust your goals as needed.
- Make a priority list. Prepare a list of tasks and rank them in order of priority. Throughout the day, scan your master list and work on tasks in priority order.
- Protect your time. For an especially important or difficult project, block time to work on it without interruption. Also, break large projects into smaller steps.
Keep perspective
When your job is stressful, it can feel as if it's taking over your life. To maintain perspective:
- Get other points of view. Talk with trusted colleagues or friends about the issues you're facing at work. They might be able to provide insights or offer suggestions for coping. Sometimes simply talking about a stressor can be a relief.
- Take a break. Make the most of workday breaks. Even a few minutes of personal time during a busy workday can be refreshing. Similarly, take time off when you can, whether it's a two-week vacation or an occasional long weekend. Also try to take breaks from thinking about work, such as not checking your email at home in the evening or choosing times to turn off your cell phone at home.
- Have an outlet. To prevent burnout, set aside time for activities you enjoy — such as reading, socializing or pursuing a hobby.
- Take care of yourself. Be vigilant about taking care of your health. Include physical activity in your daily routine, get plenty of sleep and eat a healthy diet.
Know when to seek help
If none of these steps relieves your feelings of job stress or burnout, consult a mental health provider — either on your own or through an employee assistance program offered by your employer. Through counseling, you can learn effective ways to handle job stress.
SOURCE: The Mayo Clinic Staff (16 May 2016) "Coping with stress: Workplace tips" (Web Blog Post). Retrieved from https://www.mayoclinic.org/healthy-lifestyle/stress-management/in-depth/coping-with-stress/art-20048369
Changing the conversation on mental health
Canadian employer, Bell, has helped fund the National Standard for Psychological Health and Safety in efforts to provide voluntary guidelines, tools and resources for employers to utilize. Continue reading to learn more.
NEW ORLEANS — With no existing standard for how to deal with mental health issues from a workplace perspective, one Canadian employer aimed to tackle the stigma around discussing mental illness, using steps that U.S. employers can follow.
Bell, the telecom giant headquartered in Montreal, has helped change the landscape for mental health in Canada by creating a set of guidelines employers can use as they put in place policies that encourage conversations around mental health.
“When we first went on our journey to establish workplace best practices, we couldn’t find any established guidelines,” Monika Mielnik, senior consultant, human resources, workplace health at Bell, said last week at the Benefits Forum & Expo, hosted by Employee Benefit News and Employee Benefit Adviser.
So the company helped fund the National Standard for Psychological Health and Safety to provide a voluntary set of guidelines, tools and resources employers can use.
There are 13 psychological factors within the guide, ranging from workload management and organizational culture to engagement, recognition and reward, which Mielnik says is “low-hanging fruit” for employers looking for a place to start.
Mielnik offers five steps for employers looking to build a successful program that promotes psychological health in the workplace: Commitment and awareness, support services, mental health training, return to work and accommodation processes, and the ability to measure progress.
Before starting out, Mielnik added, “it’s important to engage individuals across the organization to establish successful mental health initiatives.” Getting executive support and sponsorship, a dedicated mental health leader, and cross-functional involvement are also key.
And while commitment is important, awareness is equally necessary, she added. Bell has three annual campaigns with events aimed at engaging and educating employees across the country to address stigma and create a supportive and inclusive environment: Bell Let’s Talk (January), Mental Health Week (May) and Mental Illness Awareness Week (October).
“Understanding there is stigma and taboo around mental health, we want to make sure our employees are educated and aware of the impact it can have on them, their spouses, and others,” she said.
Bell partnered with digital wellness platform LifeSpeak in 2013 to provide employees with around-the-clock access to tools and assistance programs. In addition, Bell created a dedicated intranet page to provide weekly articles and an on-demand video library.
Bell employees access LifeSpeak 97% of the calendar days, said panelist Danny Weill, VP of partnerships at LifeSpeak. “This has become part of their culture. I like how Bell walks the walk. They do all this amazing stuff in the community, and then they do this stuff in the workplace, which is ultimately good,” he said.
In addition to access, mental health training is a huge part of the culture at Bell.
All employees are required to complete the building blocks to positive mental health training – which includes six interactive modules to help improve and maintain their own mental health.
Further, workplace mental health leadership is mandatory for all leaders within the organization. “This training equips leaders with a better understanding of mental health and [helps them to] be better equipped to have a conversation with employees,” she said. “That has been very key for us.” More than 10,000 leaders have been trained to date.
Part of leadership training includes return-to-work processes, as well as accommodation programs, she noted.
Measuring progress within the organization is an important final component of her five-step plan.
“When we took on this cause in 2010, we did it to make a lasting and significant impact,” she said. Dollars and percentages linked to such things as long- and short-term disability rates, utilization of benefits, etc., can all be measured for success, she added.
Bell noted a positive impact over a two- to three-year period, including a 20% reduction in mental health-related short-term disability and a 50% reduction in relapse and reoccurrence rates.
“One key area, and something we did early, is to take a pulse and baseline check with what’s occurring right,” she said. “Look at your short-term claims or any metric results you have that can speak to the mental health area in your workplace.”
There is a misconception that you have to start big and re-create the wheel when it comes to mental health programs, Mielnik said. “Look at metrics and programs in place and either build off or enhance those programs, but that baseline will be a good place to start.”
SOURCE: Otto, N. (3 October 2018) "Changing the conversation on mental health" (Web Blog Post). Retrieved from: https://www.benefitnews.com/news/changing-the-conversation-on-mental-health?feed=00000152-18a4-d58e-ad5a-99fc032b0000