Millennials Lead Generational Split on Health Benefits
Did you know that millennial employees are more likely to focus on the benefits and costs associated with their healthcare plans compared to older employees? Take a look at this article by Amanda Eisenberg from Employee Benefit Adviser on why millennials are so much more involved with their healthcare plans.
Millennials are more likely to partake in cost-saving healthcare decisions than their older counterparts, according to new analysis from EBRI.
Employees born in 1977 or later, the millennial age range in this analysis, are well informed about their health plan and report higher levels of satisfaction with the health plan choices and financial aspects of their health plans than baby boomers and Gen Xers, according to the 2017 “Consumer Engagement in Health Care and Choice of Health Plan” report.
Millennials also are more likely to ask for a generic instead of a brand name drug (47%), develop a budget to manage healthcare expenses (35%) and check whether the health plan would cover care or medication (57%) compared to Generation X or baby boomers, according to the Employee Benefit Research Institute, a nonpartisan research institute based in Washington, D.C.
Paul Fronstin, co-author of the study, attributed the generational attitude differences to the frequency employees interact with the health system and familiarity with technology.
“Older people are not used to using tools like online calculators to figure out health costs,” says EBRI’s director of health research and education program.
On the other hand, older generations have more experience buying and using healthcare than millennials, who are unlikely to contact cancer, heart disease and other illnesses that generally plague middle-aged and older employees, says Fronstin.
“It may be less stressful to pick the wrong plan and it may be coming out in [millennials’] attitudes,” he says. “Millennial attitudes could easily change as they get older and use more healthcare.”
The data comes from a 2015 poll of polled 3,590 adults between the ages of 21 and 64 who had health insurance provided through an employer (82%), purchased directly from a carrier or purchased through a government exchange.
The data, while two years old, doesn’t change the underlying attitudes toward healthcare options and costs, says Fronstin.
Yet determining those attitudes and a corresponding benefits plan is a major struggle for employers, he says.
Baby boomers and millennials “are both big segments of the population that most employers rely on,” Fronstin says. “You’ve got different groups here. If you want to be as effective as possible and get the most productivity, you need to understand where they’re coming from.”
See the original article Here.
Source:
Eisenberg A. (2017 May 29). Millennials lead generational split on health benefits [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/millennials-lead-generational-split-on-health-benefits?brief=00000152-1443-d1cc-a5fa-7cfba3c60000
Workers Willing to Leave a Job if Not Praised Enough
Praising your employees on a frequent basis is a great way to increase employee engagement and productivity. Take a look at this article by Brookie Madison from Employee Benefit News on how employees are more likely to leave a job if they do not feel like they're getting enough praise.
Employers may be spending more than $46 billion a year on employee recognition, reviews and work anniversaries, but recent research shows it could be worth the investment to commit even more to the effort.
Although more than 22% of senior decision-makers don’t think that regular recognition and thanking employees at work has a big influence on staff retention, 70% of employees say that motivation and morale would improve “massively” with managers saying thank you more, according to a Reward Gateway study.
By not receiving regular feedback on their performance, employees feel they are not progressing at work, says Glenn Elliott, CEO of Reward Gateway. In fact, nearly one in two employees reported they would leave a company if they did not feel appreciated at work, the study found.
This is particularly true of millennials, Elliott says, who make up the largest segment of the workforce, according to the U.S. Bureau of Labor Statistics. To this generation, “Saying thank you for good work or good behavior shows you values those things and want to see more of that behavior,” he says.
Overall, employees want praise and recognition more frequently than at annual awards ceremonies. Although 90% of senior decision-makers believe they prioritize showing appreciation and thanks in a timely way, more than 60% of workers would like to see their colleagues’ good work praised more frequently by managers and leaders.
“On average, businesses spend 2% on recognition,” says Elliott. “Businesses can increase effects of recognition by moving money from tenure-based to valued- and behavior-based recognition.”
More than eight out of 10 workers (84%) say praise should be given on a continual, year-round basis.
The Reward Gateway study polled 500 workers and 500 decision-makers in the United States, United Kingdom and Australia.
See the original article Here.
Source:
Madison B. (2017 June 11). Workers willing to leave a job if not praised enough [Web blog post]. Retrieved from address https://www.benefitnews.com/news/workers-willing-to-leave-a-job-if-not-praised-enough
Why Employee Engagement Matters – and 4 Ways to Build it Up
Do you need help building up engagement among your employees? Take a peek at this interesting article by Joe Wedgwood at HR Morning about the benefits of employee engagement and how to get your employees more engaged.
“Organizations with high employee engagement levels outperform their low engagement counterparts in total shareholder returns and higher annual net income.” — Kenexa.
Your people are undoubtedly your greatest asset. You may have the best product in the world, but if you can’t keep them engaged and motivated — then it counts for very little.
By making efforts to keep your people engaged, you will maximize your human capital investment and witness your efforts being repaid exponentially.
The benefits of an engaged workforce
Increase in profitability:
“Increasing employee engagement investments by 10% can increase profits by $2,400 per employee, per year.” — Workplace Research Foundation.
There is a wealth of research to suggest that companies that focus on employee engagement will have an emotionally invested and committed workforce. This tends to result in higher profitability rates and shareholder returns. The more engaged your employees are the more efficient and productive they become. This will help lower operating costs and increase profit margins.
An engaged workforce will be more committed and driven to help your business succeed. By focusing on engagement and investing in your people’s future, you will create a workforce that will generate more income for your business.
Improved retention and recruitment rates:
“Replacing employees who leave can cost up to 150% of the departing employee’s salary. Highly engaged organizations have the potential to reduce staff turnover by 87%; the disengaged are four times more likely to leave the organization than the average employee.” — Corporate Leadership Council
Retaining good employees is vital for organizational success. Engaged employees are much less likely to leave, as they will be committed to their work and invested in the success of the company. They will have an increased chance of attracting more qualified people.
Ultimately the more engaged your people are, the higher their productivity and workplace satisfaction will be. This will significantly reduce costs around absences, recruitment, training and time lost for interviews and onboarding.
Boost in workplace happiness:
“Happy employees are 12%t more productive than the norm, and 22% more productive than their unhappy peers. Creating a pleasant workplace full of happy people contributes directly to the bottom line.” – Inc.
Engaged employees are happy employees, and happy employees are productive employees. A clear focus on workplace happiness, will help you to unlock everyone’s true potential. On top of this, an engaged and happy workforce can also become loyal advocates for your company. This is evidenced by the Corporate Leadership Council, “67% of engaged employees were happy to advocate their organizations compared to only 3% of the disengaged.”
Higher levels of productivity:
“Employees with the highest levels of commitment perform 20% better than employees with lower levels of commitment.” — The Society for Human Resource Management (SHRM).
Often your most engaged people will be the most dedicated and productive, which will give your bottom line a positive boost. Employees who are engaged with their role and align with the culture are more productive as they are looking beyond personal benefits. Put simply, they will work with the overall success of the organization in mind and performance will increase.
More innovation:
“Employee engagement plays a central role in translating additional job resources into innovative work behaviour.” — J.J. Hakanen.
Employee engagement and innovation are closely linked. Disengaged employees will not have the desire to work innovatively and think of new ways to improve your business; whereas an engaged workforce will perform at a higher level, due to increased levels of satisfaction and interest in their role. This often breeds creativity and innovation.
If your people are highly engaged they will be emotionally invested in your business. This can result in them making efforts to share ideas and innovations with you that can lead to the creation of new services and products — thus improving employee profitability.
Strategies to increase employee engagement
Communicate regularly:
Every member of your team will have valuable insights, feedback and suggestions. Many will have concerns and frustrations too. Failure to effectively listen and respond to everyone will lower their engagement and negatively affect the company culture.
Create open lines of communication and ensure everyone knows how to contact you. This will create a platform for your people to share ideas, innovations and concerns with you. It will also bridge gaps between senior management and the rest of the team.
An effective way to communicate and respond to everyone in real-time is by introducing pulse surveys — which will allow you to gather instant intelligence on your people to help you understand the sentiment of your organization. You can use this feedback to create relevant action plans to boost engagement and make smarter business decisions.
Take the time to respond and share action plans with everyone. This will ensure your people know that their feedback is being heard and can really make a difference.
Recognize achievements:
“The engagement level of employees who receive recognition is almost three times higher than the engagement level of those who do not.” — IBM Smarter Workforce Institute.
If your people feel undervalued or unappreciated then their performance and profitability will decrease. According to a survey conducted by technology company Badgeville, only 31% of employees are most motivated by monetary awards. The remaining 69% of employees are motivated by job satisfaction, recognition and learning opportunities.
Make efforts to celebrate good work and recognize everyone’s input. Take the time to personally congratulate people and honor their achievements and hard work. You will likely be rewarded with an engaged and energized workforce, that will make efforts to impress you and have their efforts recognized.
Provide opportunities for growth:
Career development is key for employee engagement. If your people feel like their careers are stagnating, or their hard work and emotional investment aren’t being reciprocated — then you can be certain that engagement will drop.
By meeting with your people regularly, discussing agreed targets and time frames, and clearly highlighting how they fit into the organizations wider plans, you can build a “road map” for their future. This will show that their efforts and hard work aren’t going unnoticed.
Improve company culture:
“Customers will never love a company until the employees love it first.” — Simon Sinek.
Building a culture that reflects your brand and creates a fun and productive working environment is one of the most effective ways to keep your employees engaged. It’ll also boost retention and help recruitment efforts. If your culture motivates everyone to work hard, help each other, become brand ambassadors, and even keep the place clean — then you have won the battle.
An engaged and committed workforce is a huge contributor to any organization’s bottom line. The right culture will be a catalyst to help you achieve this.
Here’s how you can improve the company culture within your organization:
- Empower your people: Empowered employees will take ownership of their responsibilities, solve problems and do whatever it takes to help your company succeed. This will drive your company culture forward. Demonstrate you have faith in your people and trust them to fulfill their duties to their best of their abilities. This will ensure they feel valued, which can lead to empowerment.
- Manage and communicate expectations: Your people may struggle to understand your cultural vision. By setting clear and regular expectations and communicating your vision via posters, emails, discussions and leading by example, you will prevent confusion and limit deviation from your desired vision.
- Be consistent: To sustain a consistent culture, you must show uniformity with your actions and communications. Make efforts to have consistent expectations and standards for all your workers, and communicate everything in the same way.
By focusing on employee engagement and investing in your people, they will repay your efforts with an increase in performance, productivity and — ultimately — profit
See the original article Here.
Source:
Wedgwood J. (2017 June 8). Why employee engagement matter - and 4 ways to build it up [Web blog post]. Retrieved from address https://www.hrmorning.com/employee-engagement-ways-to-build-it-up/
Employers Need to Protect Benefit Plans Against Cyberattacks
Is your employee benefits plan properly protected from cyberattacks? Here is a great article by Marlene Y. Satter from Benefits Pro on why employers must make sure that their employee benefits program is protected from cyberattacks and data breaches.
Think only credit card data and bank accounts are the targets of cyberattacks? Think again—because employee benefits data is in the hackers’ crosshairs.
That’s according to a report by the Society for Human Resource Management, which says that attacks on benefit plans can result in more than just loss of data for employers who fail to safeguard the information.
The report quotes Neal Schelberg, a partner with law firm Proskauer Rose in New York City, saying at the International Foundation of Employee Benefit Plans’ 2017 Washington Legislative Update in Washington, D.C. that employee health and retirement plans “are big targets and particularly susceptible to cyberattacks,” and warning employers to defend their plans against hacking attempts.
Schelberg pointed to some major attacks, including a June 2016 hit on more than 90 deferred-compensation retirement accounts of Chicago municipal employees. Hackers not only got personal information, but managed to pull money from 58 accounts, with the city losing $2.6 million that had to be replaced in participant accounts and also providing credit monitoring services to account holders.
Another big hit the very next month targeted a grocery workers union pension plan in St. Louis, with hackers demanding a three-bitcoin (about $2,000) digital currency ransom to return control of the United Food and Commercial Workers (UFCW) Local 655 pension plan’s computer servers.
Among the data at risk were employee names, birthdates, Social Security numbers and bank information. While the union refused to knuckle under and pay ransom (it had a backup system), it did end up footing the bill for a year of credit monitoring and theft restoration services.
But in another case, the University of Massachusetts Amherst was on the hook for a $650,000 penalty and had to follow a corrective action plan after a malware infection targeting the university's employee health care plan exposed the sensitive health information of 1,500 people in a potential violation of the Health Insurance Portability and Accountability Act (HIPAA).
Why so much? The Department of Health and Human Services found that the university had failed to accurately assess the risk of malware infection and adopt procedures to secure its data.
According to Schelberg, benefit plans “are particularly susceptible to cyber-risks because they store large amounts of sensitive employee information and share it with multiple third parties.” And even though security measures may not be foolproof, cyber-risks “can be managed.”
It could be argued, he said, that it’s actually within a plan trustee's fiduciary duties not only to prepare for a possible cyberattack but also to ensure that any breach results in as little exposure, and cost, as possible.
Some actions he suggested sponsors take to protect plan data include the following:
- Developing and implementing a framework to address cybersecurity issues
- Addressing third-party vendor vulnerabilities that could add risk, especially for electronic transfer of sensitive data to third parties
- Backing up sensitive data, then storing it off network where it is not accessible to hackers
- Boosting passwords, including adding multifactor authentication for accessing data systems
- Increasing investment in security software and systems
- Involving boards of directors more directly in security matters
- Considering the purchase of cyberliability insurance
Sponsors must also be current on the HIPAA requirements for notification of people whose health information may have been breached, even if a third party is involved, as well as for ERISA requirements for notification and for other actions in the event of a security breach.
And in the case of ERISA, the process could be far more complicated than sponsors believe.
In the report, Kristen Mathews, another partner in Proskauers New York City office, was cited saying that benefit plans are affected by the laws of states where health plan enrollees or retirement plan participants live—not just the state where the company is headquartered or where the plan is administered.
She pointed out that pension plans could be affected by security laws in any state in which a retiree or beneficiary resides.
See the original article Here.
Source:
Satter M. (2017 June 9). Employers need to protect benefit plans against cyberattacks [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/06/09/employers-need-to-protect-benefit-plans-against-cy?ref=hp-news&page_all=1
6 Favorable Changes to HSAs Under GOP Health Bill
With the passing of the AHCA, Health Savings Accounts (HSAs) are on the verge of expansion. Check out this article by Emily Zulz of Benefits Pro and see how this new legislation will impact HSA's.
Current legislature sitting in Congress -- including the American Health Care Act -- indicates favorable changes for health savings accounts.
Since the new Congress began in January, there have been more than 20 bills proposed that impact consumer-directed health care, and more specifically HSAs. In May, the House of Representatives narrowly passed the American Health Care Act.
A new report from HSA Bank provides insight into specific impacts on HSAs and consumer-directed health care outlined in the American Health Care Act, as well as examines the other proposed legislation.
“Whether they get passed or not, I don’t expect that to have a negative impact on HSAs,” Chad Wilkins, executive vice president and head of HSA Bank, told ThinkAdvisor. “We’ll continue to see that kind of growth going forward. And if they do get passed, we’ll see more wind at the back of high-deductible health plans and HSAs.”
HSAs, which can be as much a retirement savings vehicle as a health care financing plan, have grown in popularity recently.
The number of people enrolled in HSAs continues to grow, although more slowly than in previous years. According to America's Health Insurance Plan report, 20.2 million U.S. residents were covered through HSA-compatible, individual, small-group or large-group plans in 2016.
A Fidelity analysis shows a surge in health savings account in the third quarter of last year.
Wilkins, who co-authored the report with Kevin Robertson, senior vice president and chief revenue officer, attributes the growth in HSAs to both the cost standpoint for employers offering plans, as well as the cost savings for individuals both today and in retirement.
And he predicts this growth and popularity will continue to expand -- despite what happens in Congress.
“There’s been a lot of changes in legislators over the past 10 years and HSAs have stayed relatively stable in that world,” Wilkens said.
The report provides insight into the six specific impacts on HSAs and CDH plans outlined in AHCA, as passed by the House, with a focus on how they will positively impact individuals' ability to own their health.
The top-ranking Democrat on the Senate side of the Joint Economic Committee, though, has said expanding the health savings account program would do little to help ordinary Americans cope with cuts in Affordable Care Act coverage expansion programs.
According to Robertson, these impacts “focus on expanding access to health savings accounts and CDH plans for Americans.”
1. Raises HSA contribution limits to the high-deductible health plan (HDHP) out-of-pocket maximum.
The current 2017 HSA contribution limits are $3,400 for a single plan and $6,750 for a family plan. The proposed 2018 contribution limits would increase that to $6,550 for a single plan and $13,100 for a family plan.
2. Repeals the ACA contribution limit on flexible spending accounts (FSAs) (currently $2,600 for 2017)
Approximately 20 percent of Americans covered by private insurance are able to contribute to an HSA since they are enrolled in a qualified HDHP, according to the report. For those not covered by an HDHP, this change effectively allows for significantly higher contributions to help cover large out-of-pocket expenses.
3. Allows spouses to make catch-up contributions to the same HSA
“The most significant obstacle to maximizing spousal contributions has been the aggravation of having to open a second account,” the report says.
This change will make it easier for seniors to maximize their savings for retirement years, both in terms of lower administration costs, and simplification of the contribution process.
4. Repeals the prescription requirement for over-the-counter medications as qualified medical expense distributions from HSAs, FSAs, and health reimbursement arrangements (HRAs)
The ACA raised the prices for anyone purchasing over-the-counter medications, and with this repeal, it will immediately lower healthcare costs for people using HSAs, FSAs, and HRAs to purchase these products, according to the report.
5. Lowers the penalty for non-qualified HSA distributions made prior to age 65 from 20 percent to 10 percent
This penalty exists to ensure that HSAs are used as health care savings tools and not tax shelters for assets. The report says a lower penalty would make HSAs more attractive since “the fear of a 20 percent penalty may have been a detractor in individuals using HSAs as a savings account.”
6. Allows for qualified distributions to reimburse medical expenses incurred within 60 days of HDHP coverage but before HSA account is established
“Even though an individual may be covered by an HSA-qualified health plan, they are not allowed to claim their medical expenses as qualified distributions until they have met the legal requirements of establishing their HSA,” according to the report.
This provision would give individuals a 60-day window to cover these instances.
See the original article Here.
Source:
Emily Zulz (2017 June 16). 6 favorable changes to HSAs under GOP health bill [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/06/16/6-favorable-changes-to-hsas-under-gop-health-bill?ref=hp-news&page_all=1
Losing Sleep Over Benefits Technology? Get Over It!
Are you having a hard time figuring out all the different technologies associated with your benefits program? Read this great article by Linda Keller from SHRM on how to navigate through the different technologies accociated with you employee benefits program .
It’s easy to get caught up wanting to deliver a sophisticated platform to engage your workforce. Many benefits technology solutions promise to make employees smarter consumers of health care through slick recommendation engines, bots, and avatars delivered on smart phones.
I advise you to keep these three things in mind when you evaluate benefits technology:
See the original article Here.
Source:
Keller L. (2017 May 23). Losing sleep over benefits technology? get over it! [Web blog post]. Retrieved from address https://blog.shrm.org/blog/losing-sleep-over-benefits-technology-get-over-it
Rising Health Care Costs Threatening Employees’ Financial Goals
Did you know that the rising costs of healthcare could be having a negative effect on your employees' financial goals? Check out this great read by Marlene Y. Satter from Benefits Pro on how your employees' finances are being impacted by the costs of healthcare.
Employees are under financial stress — big time. In fact, 56 percent of them are stressed about their financial situation, and more than half of them say it’s taking a toll on both their ability to focus and their productivity on the job.
That’s according to the latest Bank of America Merrill Lynch Workplace Benefits Report, which finds that not only are 53 percent of stressed employees having trouble concentrating on their work, the cost of health care is a big shadow cast over workers’ financial situations. And that’s already an issue, with 43 percent of employees owning up to spending 3 or more hours a week while at the office dealing with personal financial matters.
As more employees find themselves shelling out more from their own pockets to pay health care bills — 69 percent of workers said so in 2015, but 79 percent said so in 2016 — it’s no surprise to hear that health care costs are up 10 percent since 2015. No wonder they’re stressed; salaries certainly haven’t risen to match.
Those rising health care costs are taking a bite out of most employees’ other financial goals — among workers who have experienced increasing health care costs, 56 percent are having to save less toward other objectives.
Women in particular are abandoning more discretionary spending and debt management to cover health care costs than men, with 72 percent chucking spending on recreation or entertainment, compared with 59 percent of men; 63 percent saving less for retirement, compared with 62 percent of men; and 50 percent paying down less debt, compared with 46 percent of men.
And the more expensive health care becomes, the more employees appear to appreciate employer-provided health coverage — with workers ranking health benefits as their top employer benefit (40 percent), followed by their 401(k) plan (31 percent).
Even among employees who class themselves as optimists about their financial futures, worries about health care and its cost are weighing them down. And as might be expected, money woes weigh more on women than men, even — or perhaps especially — when it comes to health care. While 52 percent of men say that becoming seriously ill and unable to work is a major concern (even larger for men than having to work longer than they planned), 58 percent of women fear illness and subsequent absence from the workplace.
And more than half of employees say that financial stress is negatively affecting their physical health. Different generations feel the effects more, with 51 percent of boomers, 56 percent of Gen Xers and 68 percent of millennials saying money worries are literally making them sick. Employers need to be aware of this and take steps to deal with it, particularly since it translates into a toll not just on workers but on the employer’s bottom line — via higher absenteeism rates and higher health care costs.
See the original article Here.
Source:
Satter M. (2017 June 1). Rising health care costs threatening employees' financial goals [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/06/01/rising-health-care-costs-threatening-employees-fin
High-Deductible Health Plans Promote Increased Wellness Program Participation
Are you looking for a new way to increase participation in your wellness program? Take a look at this interesting article by Nick Otto from Employee Benefit News on how offering high-deductible health plans can be a great way to boost enrollment into your wellness program.
Employer-provided healthcare continues to be the most common access to health insurance in the U.S., and as employers continue to look for ways to cut costs, consumer-driven high-deductible health plans continue to grow with the added benefit of increased employee engagement in healthcare choices.
Fourteen percent of the U.S. population was enrolled in a CDHP and 14% was enrolled in an HDHP, a slight increase for both from the previous year, according to the 2016 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey.
And the number of workers who were in a CDHPs or HDHPs was more likely than those in a traditional plan to exhibit cost-conscious behaviors, according to a recent report from the non-partisan Employee Benefit Research Institute.
“This survey found that high deductibles are associated with new behaviors [that are] often encouraged by employers and insurers,” says Paul Fronstin, director of EBRI’s Health Research and Education Program and co-author of the report.
The theory behind CDHPs and HDHPs is that the cost-sharing structure is a tool that will be more likely to engage individuals in their health care, compared with people enrolled in more traditional coverage, the study suggests.
And with the employees taking a bigger interest in their healthcare planning, employers are noticing their wellness programs taking a bigger role.
The study focused on three types of wellness programs: a health-risk assessment, a health-promotion program to address a specific health issue, and a biometric screening.
“CDHP enrollees and HDHP enrollees were more likely than traditional-plan enrollees to report that they tried to find cost information. They are also more likely to participate in wellness programs.” Adds Fronstin.
Specifically, 45% of CDHP enrollees reported that their employer offered a health risk assessment, compared with 34% of traditional-plan enrollees and 30% of HDHP enrollees. When asked about the availability of health-promotion programs, 53% of CDHP enrollees, 32% of HDHP enrollees and 41% of traditional-plan enrollees reported that their employer offered such a program.
Additionally, when asked about biometric-screening programs, 45% of CDHP enrollees reported that their employer offered such a program, compared with 36% among traditional-plan enrollees and 33% among HDHP enrollees.
CDHP and HDHP enrollees were also more likely than traditional-plan enrollees to report that their employer offered a cash incentive or reward for participating in a biometric screening program. Seventy percent of CDHP and 67% of HDHP enrollees reported a cash incentive or reward for a biometric screening, compared with 51% among traditional-plan enrollees.
While these numbers represent self-reported awareness of available health and wellness programs and cannot be cross-referenced with objective data from employers and insurers, it is significant that, across the board, CDHP enrollees are aware and participate at higher rates in wellness programs, the author notes.
Another trend the study found was the increased interest in health savings accounts.
Among individuals enrolled in CDHPs, 56% opened an HSA, 19% were in an HRA, and 25% were enrolled in an HSA-eligible health plan but had not opened an HSA.
It’s more common for employers to contribute to HSAs than in the past, and the dollar amount is also increasing, EBRI says. Seventy-eight percent of CDHP enrollees reported that their employer contributed to the account in 2016, up from 67% in 2014.
Additionally, 20% of CDHP enrollees reported an employer contribution of at least $2,000 in 2016, up from 10% in 2014.
See the original article Here.
Source:
Otto N. (2017 June 1). High-deductible health plans promote increased wellness program participation [Web blog post]. Retrieved from address https://www.benefitnews.com/news/high-deductible-health-plans-promote-increased-wellness-program-participation
Retirement Calculator Seen as Critical Tool
Did you know that the most impactful tool for employee financial wellness is a retirement calculator? Find out more in this article by Bruce Shutan from Employee Benefit News on why you should have a retirement calculator included in your employee benefits program.
In analyzing the financial behaviors of 67,089 U.S. employee financial wellness assessments, Financial Finesse concluded that the most impactful action was for employers to offer a retirement calculator. The 2016 Year in Review Report also suggested that they promote it to the hilt with the help of their brokers and advisers.
“Running that projection is driving other behavior,” such as changes in cash flow or higher retirement plan contributions over time, explains Cynthia Meyer, a financial planner with Financial Finesse and author of the report.
She says advisers can help spotlight the use of a retirement calculator in an educational workshop or enrollment meeting where they can detail examples or case studies involving the potential effect of this handy tool.
The report uncovered a few bright spots. More employees ran a retirement projection, which jumped to 49% in 2016 from 35% in 2015. In addition, about 60% of these employees discovered they were on track to retire comfortably while about 40% discovered they were underfunded and needed to make changes.
Another positive development was that repeat usage of workplace financial wellness programs appears to be gaining momentum. The number of employees who have done annual workplace assessments of their finances multiple times has climbed steadily since 2013 when it was just 6% to 15% in 2014, 16% in 2015 and 29% in 2016.
However, problems persist. Virtually all demographic groups were still found to have insufficient savings for a comfortable retirement. For example, while 92% of the employees studied participate in an employer-sponsored retirement plan, just 77% contribute enough to earn the full employer match.
Still, Meyer notes that packaging financial wellness content with a good retirement plan is becoming a standard practice as the movement toward a more holistic view of employee finances gains traction.
Aon Hewitt’s 2017 Hot Topics in Retirement and Financial Wellbeing survey found that 59% of employers are very likely and another 33% are moderately likely to focus on the financial wellbeing of workers in ways that extend beyond retirement decisions. Moreover, 86% of employers are very or moderately likely to communicate to their workforces the link between health and wealth.
Rob Austin, director of retirement research at Aon Hewitt, says this is an indication of “just how much I think employers still care about their employees.” It certainly bodes well for brokers and advisers who can expect to be busy in the coming years helping their clients create a strategy and build out a plan that appeals to each workforce, he believes.
Aon Hewitt’s survey, whose 238 respondents represent nearly 9 million employees, noted several other key trends. They include employers enhancing both the accumulation and decumulation phases for their defined contribution plan participants, and defined benefit plan sponsors revisiting ways they’re removing risk from their plan.
See the original article Here.
Source:
Shutan Bruce (2017 May 29). Retirement calculator seen as critical tool [Web blog post]. Retrieved from address https://www.benefitnews.com/news/retirement-calculator-seen-as-critical-tool?brief=00000152-14a7-d1cc-a5fa-7cffccf00000
GOP’s Health Bill Could Undercut Some Coverage In Job-Based Insurance
Thanks to the new legislation passed by Congress health care is on the verge of changing as we know it. Check out this interesting article by Michelle Andrews from Kaiser Health News on how these changes to healthcare will affect Americans who get their healthcare through an employer.
This week, I answer questions about how the Republican proposal to overhaul the health law could affect job-based insurance and what the penalties for not having continuous coverage mean. Perhaps anticipating a spell of uninsurance, another reader wondered if people can rely on the emergency department for routine care.
Q: Will employer-based health care be affected by the new Republican plan?
The American Health Care Act that recently passed the House would fundamentally change the individual insurance market, and it could significantly alter coverage for people who get coverage through their employers too.
The bill would allow states to opt out of some of the requirements of the Affordable Care Act, including no longer requiring plans sold on the individual market to cover 10 “essential health benefits,” such as hospitalization, drugs and maternity care.
Small businesses (generally companies with 50 or fewer employees) in those states would also be affected by the change.
Plans offered by large employers have never been required to cover the essential health benefits, so the bill wouldn’t change their obligations. Many of them, however, provide comprehensive coverage that includes many of these benefits.
But here’s where it gets tricky. The ACA placed caps on how much consumers can be required to pay out-of-pocket in deductibles, copays and coinsurance every year, and they apply to most plans, including large employer plans. In 2017, the spending limit is $7,150 for an individual plan and $14,300 for family coverage. Yet there’s a catch: The spending limits apply only to services covered by the essential health benefits. Insurers could charge people any amount for services deemed nonessential by the states.
Similarly, the law prohibits insurers from imposing lifetime or annual dollar limits on services — but only if those services are related to the essential health benefits.
In addition, if any single state weakened its essential health benefits requirements, it could affect large employer plans in every state, analysts say. That’s because these employers, who often operate in multiple states, are allowed to pick which state’s definition of essential health benefits they want to use in determining what counts toward consumer spending caps and annual and lifetime coverage limits.
“If you eliminate [the federal essential health benefits] requirement you could see a lot of state variation, and there could be an incentive for companies that are looking to save money to pick a state” with skimpier requirements, said Sarah Lueck, senior policy analyst at the Center on Budget and Policy Priorities.
Q: I keep hearing that nobody in the United States is ever refused medical care — that whether they can afford it or not a hospital can’t refuse them treatment. If this is the case, why couldn’t an uninsured person simply go to the front desk at the hospital and ask for treatment, which by law can’t be denied, such as, “I’m here for my annual physical, or for a screening colonoscopy”?
If you are having chest pains or you just sliced your hand open while carving a chicken, you can go to nearly any hospital with an emergency department, and — under the federal Emergency Medical Treatment and Active Labor Act (EMTALA) — the staff is obligated to conduct a medical exam to see if you need emergency care. If so, they must try to stabilize your condition, whether or not you have insurance.
The key word here is “emergency.” If you’re due for a colonoscopy to screen for cancer, unless you have symptoms such as severe pain or rectal bleeding, emergency department personnel wouldn’t likely order the exam, said Dr. Jesse Pines, a professor of emergency medicine and health policy at George Washington University, in Washington, D.C.
“It’s not the standard of care to do screening tests in the emergency department,” Pines said, noting in that situation the appropriate next step would be to refer you to a local gastroenterologist who could perform the exam.
Even though the law requires hospitals to evaluate anyone who comes in the door, being uninsured doesn’t let people off the hook financially. You’ll still likely get bills from the hospital and physicians for any care you receive, Pines said.
Q: The Republican proposal says people who don’t maintain “continuous coverage” would have to pay extra for their insurance. What does that mean?
Under the bill passed by the House, people who have a break in their health insurance coverage of more than 63 days in a year would be hit with a 30 percent premium surcharge for a year after buying a new plan on the individual market.
In contrast, under the ACA’s “individual mandate,” people are required to have health insurance or pay a fine equal to the greater of 2.5 percent of their income or $695 per adult. They’re allowed a break of no more than two continuous months every year before the penalty kicks in for the months they were without coverage.
The continuous coverage requirement is the Republicans’ preferred strategy to encourage people to get health insurance. But some analysts have questioned how effective it would be. They point out that, whereas the ACA penalizes people for not having insurance on an ongoing basis, the AHCA penalty kicks in only when people try to buy coverage after a break. It could actually discourage healthy people from getting back into the market unless they’re sick.
In addition, the AHCA penalty, which is based on a plan’s premium, would likely have a greater impact on older people, whose premiums are relatively higher, and those with lower incomes, said Sara Collins, a vice president at the Commonwealth Fund, who authored an analysis of the impact of the penalties.
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Source:
Andrews M. (2017 May 23). GOP's health bill could undercut some coverage in job-based insurance[Web blog post]. Retrieved from address https://khn.org/news/gops-health-bill-could-undercut-some-coverage-in-job-based-insurance/