Medicare Part D Notice Due
This is a reminder to employers who are required to provide an annual Medicare Part D Notice. Sponsors of group health plans that provide prescription drug coverage generally must provide the Notice to all participants who are eligible for Medicare. The Notice must be distributed prior to the start of the election period (which runs from October 15 to December 7), so you may want to include the Notice in your open enrollment packages. You must send the Notice out no later than October 14, 2012.
You must provide the Notice to all Part D eligible individuals enrolled in or seeking to enroll in your plan, including spouses and dependents. Because employers may not know which individuals are Part D eligible (some individuals might be eligible because of a disability, some might be eligible due to age, etc.), many employers distribute the Notice to all individuals eligible to enroll in the plan to ensure that no Part D eligible individual is missed.
Here are some basic rules for the Notice:
- You have flexibility in the form and manner of providing the Notice.
- You may use the model notice form published by the Centers for Medicare & Medicaid Services (CMS) (although you are not required to do so).
- You are not required to send the Notice as a separate mailing. You can provide it with other participant information materials (although note that certain formatting requirements may apply).
- A separate disclosure must be provided if you know that the spouse or dependent resides at a different address than the participant.
- You may distribute the Notice electronically if you follow the same electronic disclosure requirements that apply to summary plan descriptions (SPDs), except you should inform the participant that he/she is responsible for providing a copy of the disclosure to his/her Medicare-eligible spouse and/or dependents eligible for coverage under the plan (otherwise, you will need to separately send them a hard copy notice) and you must post the Notice on your website (if you have one) with a link on your home page to the Notice.
- If you have not yet finalized your 2013 offerings, the Notice should still be provided now based on your current 2012 offerings. If the status of those offerings changes from creditable to non-creditable (or vice versa), you will need to provide an additional Notice within a reasonable period of time (maximum 60 days) after the change occurs. You should indicate on your Notice that it will not be updated if coverage changes but it remains creditable or non-creditable (as applicable).
In addition to the Notice, you must annually disclose to CMS the creditable coverage status of your prescription drug plan, using the online Disclosure to CMS Form (available here). The Form is due no later than 60 days after the beginning of the plan year, within 30 days after termination of a prescription drug plan, or within 30 days after any change in creditable coverage status.
Are employee purchase programs with payroll deductions a good idea?
By Jason Steed
Source: https://www.pacresbenefits.com
It sounds like a good plan: Offer your current and retired employees discounts on products and services from companies that you have existing business relationships with. Then, arrange for employees to have payroll deductions to help them more easily pay for these items (without finance charges, of course). These types of employee purchase programs are quite active in some companies, giving employees a semi-personalized ‘mall’ of products and services to choose from.
In some cases, these programs provide a solution for employees that cannot get credit for a longed-for big ticket item, do not have all the money on hand for an emergency purchase (such as replacing a broken washing machine) and / or would appreciate a much easier way to buy a new item, like a laptop, for their college student. There is certainly some value for both the company (bringing business to their client helps the client be more successful) and the employee (discounts and payroll deduction make payment much easier) with this arrangement. This benefit also gives employers an extremely low or no cost way to deliver direct value to employees by helping them save money on products and services they may be purchasing anyway – but not necessarily from the company that the employer already has a relationship with.
This seemingly “no brainer” employee benefit does have its downsides. Many employees are already underinsured, some perhaps even living paycheck to paycheck, and some people would argue that employees should never buy anything that they can’t already afford, whether it’s a washing machine or flat screen television.
One interesting question is what participants are actually doing with the savings they can get from these purchase programs. Are employees ever encouraged to then contribute more to their retirement plans or buy insurance or other items that can help them financially down the road? Would having that option or information change the value of a employee purchase program?
With all the discussion recently on the consumer driven healthcare – employees making their own decisions on medical insurance based on their individual / family needs - where do other benefits decisions fall? Should there be other consumer driven benefit options, including employee purchase programs?
Due diligence is a very important part of any benefit product offered to an employee, even these types of non-traditional offers. So why not find a way to integrate them? Given the advances in technology over the last five years, why not educate employees and offer them some valid tools to help improve their financial future? Example: “Congratulations! You just saved $1,000 on your new dishwasher. With that savings, you may want to contribute more to your 401k or buy additional life or disability insurance. Here’s how…………”
The bottom line is that employers need to consider all the aspects of having an employee purchase program, and whether its purpose to help employees financially outweighs the potential personal financial mistakes some employees may make. I suggest we work on creating an employee benefits marketplace where all of these different types of benefit components can work together: 1) consumer choice (which automatically brings some personal responsibility) and 2) employer due diligence including the appropriate vetting of programs and the technology platforms they run on. Integrating core and these types of voluntary benefits is the best way to ensure your benefits programs delivers real value to your employees and is truly in their best interest.
Employee Benefits Plans: Getting The Focus Back To The Workplace
Source: https://insuranceontheweb.ca
According to a study by ComPsych Corporation, personal relationships at home are the top distractions for employees while at work. Business owners reading the study may not be aware that many of these issues have support within their employee benefits plans.
The responses for top distractions were:
22% – Relationships at home
16% – Relationships in the work place
15% – Financial / Legal problems
11% – Child or caregiving issues
6% – Personal health concerns
4% – Communication (cell phones, instant messaging, social media)
7% – Other
A Healthy Work/Life Balance
How can an employer help get an employee’s focus back to the workplace, increase productivity, and create a more stable working environment?
There are resources within employee benefits plans such as implementing an Employee Assistance Program (EAP) that provide allow employers to provide a 24/7 confidential resource for their workforce. EAP provides information, tools, and counseling services that help your employees get through the situations that create stress in their lives from a qualified professional with the comfort of confidentiality.
Over the years it has been proven employees use these services when available in their employee benefits plans. When employees have a professional to consult with during a crisis it takes the stress of life out of the workplace. This in turn improves productivity & creates a more stable, reliable employee.
A healthy employee is more present and focused at the task at hand. There are thousands of distractions that take an employee’s focus away from their work but the important ones to manage aren’t blocking Solitare or Facebook, it’s ensuring the health of your workers. Benefits that cover spouses and children also offer employees the peace of mind a working parent needs when bills not covered by Canadian health care come up.
401(k) Fee Disclosure Befuddles Small Companies
By Jessica Toonkel
Source: https://ebn.benefitnews.com
A recent rule that requires companies that service 401(k) plans to disclose what they are charging employers for their services is leaving many small business owners with more questions than answers, according to a new study.
As of July, 401(k) plan providers, which include financial advisers, fund companies and plan record keepers, had to provide employers with documentation of all the fees they charged.
The goal of the fee disclosure, which was mandated by the U.S. Department of Labor, was to help employers better understand the fees they pay.
But a new study scheduled released this week shows that 83% of small business owners, or those with 100 employees or fewer, have more questions about what the fee disclosures mean.
Sixty-three percent of companies surveyed said they were not prepared to answer employees’ questions about 401(k) fees. Under the rules, employers were required to begin disclosing plan fees to employees in August.
Specifically, small business owners do not understand if the fees they are paying are appropriate or too high. Forty-five percent of the 500 respondents said they thought 4.00% was a reasonable fee to pay for a 401(k) plan, according to the study, which was sponsored by ShareBuilder 401k, which provides plans to more than 3,500 small employers. The average all-in 401(k) fees paid by plans with less than $1 million in assets is between 0.99% and 1.83%, according to a 2011 study conducted by Deloitte and the Investment Company Institute.
“It really surprised me that these businesses think that 4% is an acceptable amount,” said Stuart Robertson, president of ShareBuilder 401k.
While the fee disclosure statements are helpful for those employers that take the time to delve into them, they are lacking in that they do not provide any guidance on how much employers should be paying, employers said.
“There should be some kind of industry average or benchmark,” said Steve Hazelton, chief executive officer of Newton Software, a San Francisco-based software company with 12 employees. “That would really be helpful.”
But even with more information, many employers may remain in the dark about the fees they are paying because they have not read the documentation.
Only 50% of the small business owners surveyed by ShareBuilder said they recall receiving the new documents at all.
Stressful Job? How to Find Inner Peace at Work
Source: https://blog.resumebear.com/
When you’re having a particularly high-stress day at work (or maybe that’s every day), sometimes you just have to take a minute to do something for yourself.
It’s OK to stop and breathe.
Deep down you might even the chaos because, well, a job without a challenge can be terribly boring. But in order for you to handle your high-stress job in the best way possible, sometimes you need to just take a minute to regroup.
There are several things you can start doing to help you find peace at work both in the short and long term:
1. Take a Deep Breath
It’s more effective than you might think. HelpGuide.org says taking a few minutes to inhale and exhale deeply slows down your heart rate and helps you relax. In fact, there are stress hormones in your body that can be removed by deep breathing exercises. Take breaths when you can, for instance, pause and breathe before you answer that next phone call.
Here’s a breathing exercise you can do right now:
Keep your spine straight throughout the movement. Inhale as you sweep your arms up and exhale as you return them to your sides. Do a total of 5 repetitions.*
2. Write Down your Frustrations
Source: https://blog.resumebear.com/
You can’t let go of your stress if you keep it bottled in your mind. Whether it’s anannoyingly competitive coworker or looming deadlines that are bothering you, don’t let your woes bubble up to the point of explosion. Writing down exactly how you feel is one way to unload your frustrations, do something about them and move on.
3. Go for a Jog
It’s the single best way for your body to produce endorphins and significantly reduce your stress level, according to the experts at MayoClinic.com. It may be tough at first, but try to incorporate at least 30 minutes of physical activity daily after or before work.
Have you tried hitting the gym during your lunch hour (or even just a walk around the parking lot)? You’ll come back and finish off your day refreshed, rejuvenated and less stressed. Just remember to take a quick shower afterwards!
4. Practice Minimalism
“Life is really simple, but we insist on making it complicated” – Confucius
One self-management technique that can also help minimize stress is to try to stop over thinking things. If you have a presentation coming up, you’ll find that if you stick to the bare bones and make your points as concisely as possible, then your colleagues will understand the information much easier — making your presentation more effective.
5. Go to Your Happy Mental Place
For about 60 seconds, stop, close your eyes, and focus all of your five senses to visualize a place that makes you happy. According to HelpGuide.org, visualization is a great way to “activate your body’s natural relaxation response.” Vividly think about what you’re, seeing, smelling, tasting, feeling and hearing. Then, open your eyes and come back to reality rejuvenated.
6. Try Yoga
This ancient art is meant to increase your self-discipline and push the limits of your determination. By concentrating all of your attention on Yoga poses, you’re able to rid your mind of worries and become more balanced in mind, body and soul.
Best of all, you don’t necessarily have to sign up for classes. Grab a mat after work and check out hundreds of useful Yoga videos with which you can follow along.
Many worry, don’t communicate about life insurance
Source: ebn.benefitnews.com
Most people believe the current economic climate has made life insurance more relevant, but a majority have not calculated their need and many avoid discussing the topic at home, according to survey results released today by ING.
A vast majority of respondents, 78%, view life insurance as a valuable financial tool, but, despite historically low rates, ING says more than half of the uninsured cite cost as a factor. Employed respondents without access to life insurance as a workplace benefit were seven times more likely to have no coverage at all.
But many of the problems are not related to the workplace at all: 54% of parents have not determined their family’s adequate protection level and 45% of married survey participants rarely or never discuss what would have to family finances should they or their spouse pass away.
“Life insurance is one of the least discussed components of a family’s financial plan, yet it plays such an integral role in providing for a secure future,” says Butch Britton, CEO of ING U.S. Insurance. “Without candid conversations among spouses, family members and financial professionals, many Americans risk being underinsured and having inadequate coverage in the event of a loss.
“We hope our study and outreach efforts, especially during Life Insurance Awareness Month, can help initiate the necessary conversations that lead to greater protection and, ultimately, greater peace of mind.”
Some 44% of those questioned had little or no confidence that their coverage was sufficient and nearly a quarter of those age 25 to 34 thought they were too young to purchase life insurance.
However, on a positive note, ING reports that the 56% of those who felt very or extremely confident and knowledgeable about their coverage rises to 70% for those who purchase life insurance face-to-face with a financial professional.
Exercise Benefits Low-income Americans Most
BY KATHRYN MAYER
Source: benefitspro.com
Here’s at least one advantage to not having a hefty salary: Low-income Americans experience a bigger emotional payoff for exercising and eating well.
According to The Gallup-Healthways Well-Being Index, low income people report a bigger emotional boost from frequent exercise and good eating habits than richer people do.
The Emotional Health Index score is based on Americans' self-reports of positive and negative daily emotions, as well as self-reported clinical diagnoses of depression. Findings are based on 180,299 interviews with American adults conducted between Jan. 2 and July 8.
Low-income adults who exercise three or more days per week are about seven percentage points more likely than their counterparts who exercise less than that to report experiencing happiness “a lot of the day yesterday.” Those Americans experience a bigger exercise bonus than do those with higher incomes in terms of daily smiling and laughter, enjoyment and happiness. They're also less likely to experience depression than higher income adults who exercise.
U.S. adults at all income brackets who ate five or more servings of fruits and vegetables at least four days per week reported widespread emotional health benefits, the report notes. But it is particularly evident in those earning less than $36,000 per year.
Many Say Life Insurance Is More Important than Ever in Current Economy
Sources: sacbee.com and ING U.S.
Family is key driver for purchase decisions; majority confirm benefits of coverage, yet inaction and lack of communication continue to pose barriers
MINNEAPOLIS, Sept. 12, 2012 -- /PRNewswire/ -- In support of Life Insurance Awareness Month, ING U.S. today released findings from a new consumer study that underscores striking disconnects in attitudes and behaviors toward life insurance.
To view the multimedia assets associated with this release, please click Here
According to the research, Insurance Revealed, most survey respondents (78 percent) viewed life insurance as a valuable tool for estate or financial planning, and more than half (53 percent) believed that the current economy makes life insurance even more important today than in past years. For more information on the study, please visit the ING U.S. newsroom at ING.us/Newsroom
However, despite recognizing its value and importance, a significant number (51 percent) cited other priorities, such as paying off debt or a mortgage, as major obstacles to purchasing life insurance. Meanwhile, 61 percent had never calculated their life insurance needs and only one-quarter of those insured felt extremely confident that they had enough coverage.
The study also showed communication is an area for further opportunity. While 62 percent identified family as the number one reason to purchase life insurance, many couples confirmed that they avoid discussing the issue. Among married respondents, 45 percent had rarely or never talked with their spouse about what would happen to the family finances should one of them pass away.
"Life insurance is one of the least discussed components of a family's financial plan, yet it plays such an integral role in providing for a secure future," said Butch Britton, CEO of ING U.S. Insurance. "Without candid conversations among spouses, family members and financial professionals, many Americans risk being underinsured and having inadequate coverage in the event of a loss. We hope our study and outreach efforts, especially during Life InsuranceAwareness Month, can help initiate the necessary conversations that lead to greater protection and, ultimately, greater peace of mind."
According to the findings, respondents were most familiar with the protection benefits of life insurance and they placed the greatest value on the more obvious uses such as replacing lost income (26 percent) and paying off debt (23 percent). Very few highlighted its value to protectretirement savings (4 percent) or build wealth (1 percent). Insurance Revealed illustrated that life insurance's unique ability to grow assets is underappreciated.
Coverage Conundrum
Regarding coverage matters, the ING U.S. study found close to half (44 percent) of Americans had little or no confidence that the amount of life insurance coverage they had was sufficient. Close to one quarter (23 percent) of those between 25 and 34 thought they were too young to purchase life insurance.
Meanwhile, the study underscored the important role that the workplace represents in obtaining coverage. Nearly half of insured respondents (49 percent) said they looked to their employer as the only source for insurance coverage. Employees without access to life insurance benefits at the workplace were seven times more likely to have no coverage at all than employees who did have access.
On another positive note, the ING U.S. study revealed individuals who purchased life insuranceface-to-face with a financial professional felt the most confident and knowledgeable about their coverage. Among that group, seven-in-ten (70 percent) felt very or extremely confident about their coverage compared to just 56 percent for all insured respondents.
Additional findings from the ING U.S. Insurance Revealed study included the following:
- A majority of parents (54 percent) had not calculated how much life insurance they need to adequately protect their family.
- A majority of uninsured Americans (51 percent) considered life insurance to be an expense they couldn't afford — despite historically low rates.
- More than half (56 percent) of those with life insurance had secured only up to three times or less of their annual salary in coverage.
- More than one quarter (27 percent) felt they should have five to ten times their annual salary in coverage. However, only 17 percent of insured respondents actually had this amount.
- Half of insured respondents knew somebody who was positively impacted by life insurancecompared to only one-third (34 percent) of uninsured respondents.
The Facts of Life Insurance
ING U.S. is promoting greater awareness and understanding of life insurance through a multi-faceted, ongoing educational effort to mark Life Insurance Awareness Month in September. Intended for both consumers and financial professionals, the ING U.S. initiative highlights the many benefits of life insurance and how it can be used to meet a variety of financial goals.
ING U.S. encourages consumers to take the appropriate steps today to learn about life insuranceand factor it into their overall financial planning. As a leading insurance provider, ING U.S. offers a comprehensive suite of tools and resources including INGForLife.com where consumers can find helpful and easy-to-use insurance information. In addition, financial professionals can use this online resource as a valuable tool to start conversations with clients. To help employees with life insurance, ING U.S. provides comprehensive group and voluntary life insurance protection through the workplace.
ING U.S. offers extensive education to build awareness of the versatile uses for life insurance — from income protection to accumulation. A full gamut of seminars, conferences, consultative support and targeted materials are available to ING U.S.'s wide distribution network to educate and raise awareness about life insurance.
For more information on ING U.S.'s Insurance Revealed study, please visit the ING U.S. newsroom at ING.us/Newsroom.
1. Findings are from an online survey conducted by Praxis Research Partners in July 2012. Respondents were 1,006 adults over the age of 25 with an annual household income of $50,000 or greater. Data were weighted to make the results representative of the U.S. population.
Life Insurance Awareness Month: Who Needs Life Insurance?
Source: Lifehappens.org
If someone will suffer financially when you die, chances are you need life insurance. Life insurance provides cash to your family after your death. This cash (known as the death benefit) replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses and college funding. What’s more, there is no federal income tax on life insurance benefits. Most Americans need life insurance. To figure out if you need life insurance, you need to think through the worst-case scenario. If you died tomorrow, how would your loved ones fare financially? Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyers’ fees, etc.)? Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc? What about long-range financial goals? Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably? The truth is, it’s always a struggle when you lose someone you love. But your emotional struggles don’t need to be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you’re not there to care for them yourself. To help you understand how life insurance might apply to your particular situation, we’ve outlined a number of different scenarios below. So whether you’re young or old, married or single, have children or don’t, take a moment to consider how life insurance might fit into your financial plans.
You’re Married
When you’re married, you share everything with your significant other, including your financial obligations. Many people mistakenly believe that they don’t need to think about life insurance until they have children. Not true. What it one of you were to die tomorrow? Even with the surviving spouse’s income, would that person be able to pay off debts like credit-card balances and car loans, let alone cover the monthly rent and utility bills. If you’re planning to have children, you’ll want to buy life insurance right away and not wait until the mom-to-be is pregnant. Some companies won’t issue a policy to a woman during her pregnancy. Since health complications sometimes arise, they’ll want to wait until after the baby is born to issue the policy. Buying insurance before a baby is on the way helps avoid this potential problem.
You’re Married With Kids
Most families depend on two incomes to make ends meet. If you died suddenly, could your family maintain their standard of living on your spouse’s income alone? Probably not. Life insurance makes sure that your plans for the future don’t die when you do.
You’re a Single Parent
As a single parent, you’re the caregiver, breadwinner, cook, chauffeur, and so much more. Yet nearly four in ten single parents have no life insurance whatsoever, and many with coverage say they need more than they have. With so much responsibility resting on your shoulders, you need to make doubly sure that you have enough life insurance to safeguard your children’s financial future.
You’re a Stay-At-Home Parent
Just because you don’t earn a salary doesn’t mean you don’t make a financial contribution to your family. Childcare, transportation, cleaning, cooking and other household activities are all important tasks, the replacement value of which is often severely underestimated. Surveys have estimated the value of these services at over $40,000 per year. Could your spouse afford to pay someone for these services? With life insurance, your family can afford to make the choice that best preserves their quality of life.
You Have Grown Children
As the years go by, you may feel your need for life insurance has passed. But just because the kids are through college and the mortgage is paid off doesn’t necessarily mean that Social Security and your savings will take care of whatever lies ahead. If you died today, your spouse will still be faced with daily living expenses. What if your spouse outlives you by 10, or even 30 years, which is certainly possible today. Would your financial plan, without life insurance, enable your spouse to maintain the lifestyle you worked so hard to achieve? And would you be able to pass on something to your children or grandchildren?
You’re Retired
Did you know that depending on the size of your estate, your heirs could be hit with a large estate tax payment after you die (45% of your estate). The proceeds of a life insurance policy are payable immediately, allowing heirs to take care of estate taxes, funeral costs, and other debts without having to hastily liquidate other assets, often at a fraction of their true value. And life insurance proceeds are generally income tax free and can be arranged to avoid probate. Finally, if your insurance program is properly structured, the proceeds from your life insurance policy won’t add to your estate tax liability.
You’re a Small Business Owner
Besides taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your fellow owners, or perhaps a key employee, died tomorrow? Life insurance can help in a number of ways. For instance, a life insurance policy can be structured to fund a “buy-sell” agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. That way, the owners get the business and the family gets the money. To protect a business in case of the death of a key employee, “key person insurance,” payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.
You’re Single
Most single people don’t need life insurance because no one depends on them financially. But there are exceptions. For instance, some single people provide financial support for aging parents or siblings. Others may be carrying significant debt that they wouldn’t want to pass on to family members who survive them. Insurability is another reason to consider life insurance when you’re single. If you’re young, healthy and have a good family health history, your insurability is at its peak and you’ll be rewarded with the best rates on life insurance. If you anticipate a need for life insurance down the road (e.g., you’re the marrying type) and you can fit the premiums into your budget, it might make sense to lock in coverage while you’re young and single. Doing so can eliminate the worry of having to qualify for coverage when you’re older and maybe not as healthy as you once were.