PPACA survives another SCOTUS challenge
Originally posted January 13, 2015 by Dan Cook on Life Health Pro.
The Patient Protection and Affordable Care Act survived yet another legal attack Monday when the U.S. Supreme Court declined to hear a challenge targeting the requirement that adult Americans enroll for coverage or pay a fine.
The challenge had been brought by two medical provider groups: the Alliance for Natural health USA and the Association of American Physicians. It was three strikes and out for the plaintiffs, whose arguments were turned down at the district and federal appellate level prior to filing for a SCOTUS review.
While Republicans have mounted a steady stream of legal challenges to PPACA, so far the Supreme Court has held in favor of the law. But another major thrust is just around the corner.
In March, the court is set to hear oral arguments in a case challenging the tax credit subsidies that some states have provided to those who meet certain income criteria. The subsidies have allowed millions to “purchase” health coverage through the state exchanges at no cost, or at greatly reduced premiums.
Meantime, the GOP is busily hacking away at PPACA in Congress. The House passed a bill that would redefine the workweek for purposes of the act as 40 hours. PPACA had defined a full work week as one with 30 hours for purposes of certain coverage requirements. The Senate has yet to act on a companion bill, and the White House said it would probably veto any bill that came its way.
Compliance Calendar 2015
The following are important compliance due dates and reminders for 2015. The laws and due dates apply based on the number of employees, whether or not someone does business with the Government, and on benefits offered. Other state-by-state laws may also apply.
1/1/2015 - Minimum Wage changes: Although no federal minimum wage increase goes into effect, many states and/or cities may have a scheduled minimum wage increase. Jan. 2015 state minimum wage increases include: Alaska $8.75, Arizona $8.05, Arkansas $7.50, Connecticut $9.15, Florida $8.05, Hawaii $7.75, Massachusetts $9.00, Missouri $7.65, Montana $8.05, Nebraska $8.00, New Jersey $8.38, New York $8.75, Ohio $8.10, Oregon $9.25, Rhode Island $9.00, South Dakota $8.50, Vermont $9.15, Washington $9.47, West Virginia $8.00
1/1/2015 - Social Security Taxable Limit Increases: The maximum amount of earnings subject to the Social Security tax (taxable maximum) has been increased for 2015 to $118,500 from $117,000.
1/1/2015 – Retirement Plan Limits: The Internal Revenue Service has adjusted retirement plan limits. If you offer a retirement plan, verify and update your limits.
1/1/2015 – W-2 Reporting of Health Benefits: Employers who issue 250 or more W-2 for the year must continue to track and report premiums paid by the employer on W-2s for health plans. Employers are not required to report contributions for Health FSA, HRA, dental or vision, HAS and Archer MSA, long-term care, on-site medical clinics, church plans or governmental plans.
1/1/2015 – ACA Reporting Provisions go into Effect: Reporting provisions under tax code sections 6055 and 6056 go into effect. Employers must compile monthly and report annually numerous data points to the IRS and their own employees. This data will be used to verify the individual and employer mandates under the law.
Although required reporting under sections 6055 and 6056 will not occur until January 2016 to employees and March 2016 to the IRS, the data being reported is based on what happened during 2015.
1/1/2015 – Flexible Spending Account Limits and Extensions: The employee health flexible spending account (FSA) contribution limit has been increased to $2,550 for 2015, and remains at $5,000 annually for dependent care FSA contributions. A new provision allows plans to offer a $500 health FSA carryover of unused amounts for the next plan year, providing the plan documents are amended and employees are notified prior to the beginning of the plan year. Alternatively, plans can offer a 2.5 month grace period for health and dependent care FSAs, again providing plan documents reflect this grace period and employees are notified.
1/1/2015 – Health Savings Account and High-Deductible Health Plan Limits: Health Savings Account (HSA) and High-Deductible Health Plan (HDHP) limits have been increased for 2015.
- The HSA annual contribution maximums increase to $3,350 for individual and $6,650 for family coverage.
- For HSA-compatible HDHPs, the annual out-of-pocket spending limits are $6,450 (individual) and $12,900 (family). The HDHP minimum deductible increases to $1,300 for individual and $2,600 for family coverage.
- HSA age 55 catch-up contributions stay at $1,000.
1/1/2015 – Retirement Plan Limits: The Internal Revenue Service has adjusted retirement plan limits. If you offer a retirement plan, verify and update your limits.
1/31/2015 – W-2 Employee Reports Due: Employers must provide all employees copies of Form W-2 reporting earnings and taxes for 2014 by January 31, 2015.
2/1/2015 – OSHA Form 300 A Accident Summary Posting: Employers must post OSHA Form 300A Accident Summary in a public area from February 1 through April 30 for previous year’s accidents (repeat annually).
2/15/2015 – Federal Market Place – Open Enrollment Ends: Individuals can enroll until February 15, 2015. After that, they can’t get 2015 coverage unless they qualify for a Special Enrollment Period.
3/1/2015 – 6/30/2015 – ACA Employer Assessment: Large employers with 100 or more full-time employees should conduct a detailed analysis of whether any further changes should be made in plan eligibility rules to satisfy the 95 percent threshold in 2016 (up from 70 percent in 2015) under the ACA’s employer shared responsibility provisions.
Employers with 50 to 99 full-time employees who previously qualified for transition relief from the ACA employer shared responsibility provisions should finalize assessment of any eligibility changes and employee premium rates, for purposes of the ACA employer shared responsibility provisions.
Beginning in 2016, those employers are subject to the penalties under the ACA’s “play or pay” mandate.
7/1/2015 – PCORI Fee Due: July 31 is the annual deadline for payment of the Patient Centered Outcomes Research Institute fee (PCORI fee) of $2 per covered life for the preceding plan year.
9/30/2015 – EEO-1 Report: Organizations with 100+ employees are to submit the EEO-1 report by September 30. Repeat annually. Repeat annually.
10/14/2015 – Medicare Part D Notice: Employers are to provide notice to all Part D eligible individuals, or those about to become eligible, prior to October 15 of each year who is covered by an employer health plan with outpatient prescription drug coverage, regardless of whether the employer coverage is primary or secondary to Medicare. The notice must be provided to all Part D eligible individuals, whether covered as active employees, retirees, COBRA recipients, disabled indivdiuals, or as dependents. Plan participants are Part D eligible if they are 65 or more years old, three months before turning age 65, and/or if they are disabled.
Note: If you provided participants with the all-in-one Employee Notification service provided by HR Service, Inc., this notice is included.
Varies, based upon plan year – Form 5500: File Form 5500 annually, by the last day of the 7th month following the end of the plan year (e.g., July 31 for calendar year plans).
For additional information, employee notices, links, and renewal reminders, login to our service at
To download the Compliance Calendar for 2015, click here.
Bullies taking a toll on their workplace targets
Less than 10 percent of workers experience bullying on the job. But for those who do, the consequences can be severe.
Ball State University researchers reviewed 2010 data from more than 17,000 workers who were asked, among other things about bullying on the job.
The study found that 8 percent overall reported they had experienced bullying, with women being far more likely to be the targets of bullying than men.
Of those who were bullied, researchers reported, they were far more likely to report physical and psychological responses to the bullying, including stress, loss of sleep, depression and anxiety.
The report, “Workplace Harassment and Morbidity Among U.S. Adults,” says these targets tend to report higher levels of low self-esteem, concentration difficulties, anger, lower life satisfaction, reduced productivity and increased absenteeism than those who said they were not bullied.
“Harassment or bullying suffered by American employees is severe and extremely costly for employers across the country,” Jagdish Khubchandani, a community health education professor at Ball State and the study’s lead author, told Bloomberg BNA Dec. 18. “The first thing that we have to do, and employers have to do, is admit that there is a problem,” he said.
Among other findings:
- Females were 47 percent more likely to be bullied or harassed than males;
- Victims of harassment were more likely to be obese and smoke;
- Female victims reported higher rates of distress,smoking, and pain disorders like migraines and neck pain; and
- Male victims were more likely to miss more than two weeks of work and suffer from asthma, ulcers, hypertension and worsening of general health.
- Bullying was more prevalent among hourly workers, state and local government employees, multiple jobholders, night shift employees and those working irregular schedules.
Khubchandani said that employees are generally reluctant to report harassment because the result is often “just handle it.” Companies need to have anti-bullying policies with teeth in them, and they can also conduct an annual survey of employees that includes gathering information about bullying.
An awareness campaign that educates managers on the signs of bullying such as employees chronically using personal or sick leave — will help to identify those who possibly are being targeted, he said.
House passes bill offering smaller employers relief from ACA coverage mandate
Originally posted January 7, 2015 by Jerry Geisel on Business Insurance
More small employers would be shielded from a health care reform law provision that requires employers to offer coverage or be liable for a stiff financial penalty under veterans-related legislation approved by the House of Representatives.
Under the Patient Protection and Affordable Care Act, employers with at least 100 full-time employees must offer coverage or be liable for a $2,000 per employee penalty, starting this year. In 2016, the 100-employee threshold for the so-called employer mandate drops to 50 employees and remains at that level in succeeding years.
Under the legislation, H.R. 22, introduced by Rep. Rodney Davis, R-Ill., and passed on a 412-0 vote Tuesday, employees who due to their military service receive health care coverage from the U.S. Department of Veterans Affairs or the federal Tricare program would not be counted in calculating whether their employers hit the employment count threshold that triggers the ACA employer coverage mandate.
Passage of the legislation will give smaller employers an additional incentive to hire veterans, Rep. Davis said in a statement.
A companion bill was introduced in the Senate on Wednesday by Sen. Roy Blunt, R-Mo.
The House last year passed an identical bill, but it was not taken up by the Senate.
Know the Minimum Wage in Your State? You Might Want to Check Again
Source: ThinkHR.com
2014 was an odd year in regards to minimum wage. Although Congress failed to pass any legislation regarding the federal minimum wage, nearly half the states had minimum wage increases that went into effect on January 1, 2015. In addition, at least 20 states will have minimum wage increases in 2016 (due to scheduled minimum increases or annual minimum wage calculations). Employers, especially those with multi-state operations, should review the minimum wage of the state(s) in which they operate and make preparations for the changes.
Breakdown of Minimum Wage Increases
There are currently 10 states that adjust their minimum wage annually: Arizona, Colorado, Florida, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, and Washington. Of all of these states, with the exception of Nevada, the new minimum wage rate goes into effect on January 1st of each year. In Nevada, the new minimum wage rate goes into effect on July 1st of each year.
In November 2014, there were four states that passed ballot initiatives increasing the state minimum wage: Alaska, Arkansas, Nebraska, andSouth Dakota. With the exception of Alaska, the new minimum wage rates in these states went into effect on January 1, 2015. While South Dakota limits their minimum wage increase to 2015, Alaska, Arkansas, and Nebraska have increases in subsequent years.
The minimum wage increases in the remaining jurisdictions were the result of legislation passed in either 2014 or previous legislative sessions. These jurisdictions include: Connecticut, Delaware, the District of Columbia, Hawaii, Maryland, Massachusetts, Michigan, Minnesota, New York, Rhode Island, Vermont, and West Virginia. Many of these states also have scheduled minimum wage increases in years following 2015.
The New Rates
The following is a summary of the minimum wage increases.
Alaska. Alaska’s minimum wage is scheduled to increase as follows:
- On February 24, 2015, the minimum wage will increase to $8.75 per hour.
- On January 1, 2016, the minimum wage will increase to $9.75 per hour.
Arizona. Effective January 1, 2015, Arizona’s minimum wage is $8.05 per hour.
Arkansas. Effective January 1, 2015, Arkansas’s minimum wage is $7.50 per hour. Arkansas’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8 per hour.
- On January 1, 2017, the minimum wage will increase to $8.50 per hour.
California. Effective January 1, 2016, California’s minimum wage will increase to $10 per hour.
Colorado. Effective January 1, 2015, Colorado’s minimum wage is $8.23 per hour.
Connecticut. Effective January 1, 2015, Connecticut’s minimum wage is $9.15 per hour. Connecticut’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the state minimum rate will increase to $9.60 per hour.
- On January 1, 2017, the state minimum rate will increase to $10.10 per hour.
Delaware. Effective June 1, 2015, Delaware’s minimum wage will increase from $7.75 to $8.25 per hour.
District of Columbia. The District of Columbia’s minimum wage is scheduled to increase as follows:
- On July 1, 2015, the minimum wage will increase to $10.50 per hour.
- On July 1, 2016, the minimum wage will increase to $11.50 per hour.
Florida. Effective January 1, 2015, Florida’s minimum wage is $8.05 per hour.
Hawaii. Effective January 1, 2015, Hawaii’s minimum wage is $7.75 per hour. Hawaii’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8.50 per hour.
- On January 1, 2017, the minimum wage will increase to $9.25 per hour.
- On January 1, 2018, the minimum wage will increase to $10.10 per hour.
Maryland. Effective January 1, 2015, Maryland’s minimum wage is $8 per hour. Maryland’s minimum wage is scheduled to increase as follows:
- On July 1, 2015, the minimum wage will increase to $8.25 per hour.
- On July 1, 2016, the minimum wage will increase to $8.75 per hour.
- On July 1, 2017, the minimum wage will increase to $9.25 per hour.
- On July 1, 2018, the minimum wage will increase to $10.10 per hour.
Massachusetts. Effective January 1, 2015, Massachusetts’ minimum wage is $9 per hour. Massachusetts’ minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $10 per hour.
- On January 1, 2017, the minimum wage will increase to $11 per hour.
Michigan. Michigan’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8.50 per hour.
- On January 1, 2017, the minimum wage will increase to $8.90 per hour.
- On January 1, 2018, the minimum wage will increase to $9.25 per hour.
Minnesota. Minnesota’s minimum wage is scheduled to increase as follows:
For large employers (employers that have at least $500,000 in annual gross sales or business done) the minimum wage will increase as follows:
- On August 1, 2015, the minimum wage will increase to $9 per hour.
- On August 1, 2016, the minimum wage will increase to $9.50 per hour.
For small employers (employers that have annual gross sales or business done of less than $500,000) the minimum wage will increase as follows:
- On August 1, 2015, the minimum wage will increase to $7.25 per hour.
- On August 1, 2016, the minimum wage will increase to $7.75 per hour.
Missouri. Effective January 1, 2015, Missouri’s minimum wage is $7.65 per hour.
Montana. Effective January 1, 2015, Montana’s minimum wage is $8.05 per hour.
Nebraska. Effective January 1, 2015, Nebraska’s minimum wage is $8 per hour. Nebraska’s minimum wage is scheduled to increase to $9 per hour on January 1, 2016.
Nevada. Effective July 1, 2015, Nevada’s minimum wage will increase; however, the state does not announce the new effective minimum wage rate until April 1st of each year.
New Jersey. Effective January 1, 2015, New Jersey’s minimum wage is $8.38 per hour.
New York. Effective January 1, 2015, New York’s minimum wage is $8.75 per hour. New York’s minimum wage is scheduled to increase to $9 per hour on January 1, 2016.
Ohio. Effective January 1, 2015, Ohio’s minimum wage is $8.10 per hour.
Oregon. Effective January 1, 2015, Oregon’s minimum wage is $9.25 per hour.
Rhode Island. Effective January 1, 2015, Rhode Island’s minimum wage is $9 per hour.
South Dakota. Effective January 1, 2015, South Dakota’s minimum wage is $8.50 per hour.
Vermont. Effective January 1, 2015, Vermont’s minimum wage is $9.15 per hour. Vermont’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $9.60 per hour.
- On January 1, 2017, the minimum wage will increase to $10 per hour.
- On January 1, 2018, the minimum wage will increase to $10.50 per hour.
Washington. Effective January 1, 2015, Washington’s minimum wage is $9.47 per hour.
West Virginia. Effective January 1, 2015, West Virginia’s minimum wage is $8 per hour. West Virginia’s minimum wage is scheduled to increase to $8.75 per hour on January 1, 2016.
OSHA’s New Reporting and Recordkeeping Rule Goes into Effect on January 1, 2015
Source: ThinkHR.com
On September 11, 2014, the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) announced a final rule which updates the reporting and recordkeeping requirements for injuries and illnesses, found at 29 C.F.R. 1904. The rule goes into effect on January 1, 2015.
Changes to recordkeeping requirements
Under OSHA’s recordkeeping regulation, certain covered employers are required to prepare and maintain records of serious occupational injuries and illnesses using the OSHA 300 Log. However, there are two classes of employers that are partially exempt from routinely keeping injury and illness records:
- Employers with 10 or fewer employees at all times during the previous calendar year; and
- Establishments in certain low-hazard industries.
The new rule maintains the exemption for employers with fewer than 10 employees. However, the new rule has an updated list of industries that will be partially exempt from keeping OSHA records. The previous list of partially exempt industries was based on the old Standard Industrial Classification (SIC) system and injury and illness data from the Bureau of Labor Statistics (BLS) from 1996, 1997, and 1998. The new list of partially exempt industries in the updated rule is based on the North American Industry Classification System (NAICS) and injury and illness data from the Bureau of Labor Statistics (BLS) from 2007, 2008, and 2009. As a result, many employers who were once exempted from OSHA’s recordkeeping requirements are now required to keep records. A list of newly covered industries can be found at www.osha.gov/recordkeeping2014/reporting_industries.html.
Changes to the reporting requirements
In addition to revising the recordkeeping requirements, the new rule expands the list of severe injuries and illnesses that employers must report to OSHA. Under the previous rule, employers were required to report the following events to OSHA:
- All work-related fatalities.
- All work-related hospitalizations of three or more employees.
Under the new rule, employers must report the following events to OSHA:
- All work-related fatalities.
- All work-related in-patient hospitalizations of one or more employees.
- All work-related amputations.
- All work-related losses of an eye.
For any fatality that occurs within 30 days of a work-related incident, employers must report the event within eight hours of finding out about it.
For any in-patient hospitalization, amputation, or eye loss that occurs within 24 hours of a work-related incident, employers must report the event within 24 hours of learning about it.
Employers do not have to report an event if the event:
- Resulted from a motor vehicle accident on a public street or highway, except in a construction work zone; employers must report the event if it happened in a construction work zone.
- Occurred on a commercial or public transportation system (airplane, subway, bus, ferry, street car, light rail, train).
- Occurred more than 30 days after the work-related incident in the case of a fatality or more than 24 hours after the work-related incident in the case of an in-patient hospitalization, amputation, or loss of an eye.
Employers do not have to report an in-patient hospitalization if it was for diagnostic testing or observation only. An in-patient hospitalizationis a formal admission to the in-patient service of a hospital or clinic for care or treatment.
Employers do have to report an in-patient hospitalization due to a heart attack, if the heart attack resulted from a work-related incident.
What to report
Employers reporting a fatality, inpatient hospitalization, amputation, or loss of an eye to OSHA must report all of the following information:
- The name of the establishment.
- The location of the work-related incident.
- The time of the work-related incident.
- The type of reportable event (i.e., fatality, inpatient hospitalization, amputation, or loss of an eye).
- The number of employees who suffered the event.
- The names of the employees who suffered the event.
- The contact person and his or her phone number.
- A brief description of the work-related incident.
How to report
Employers can use the following three options to report an event:
- Call the nearest OSHA Area Office during normal business hours.
- Call the 24-hour OSHA hotline (800-321-OSHA or 800-321-6742).
- Report an incident electronically (OSHA is developing a new means of reporting events electronically, which will be released soon and will be accessible on OSHA’s website).
Conclusion
It is recommended that employers familiarize themselves with the final rule and train personnel accordingly. All employers under OSHA jurisdiction, even those who are exempt from maintaining injury and illness records, are required to comply with the new severe injury and illness reporting requirements.
Ice and snow aren’t letting up, so how safe is your parking lot?
Source: HR.BLR.com
Parking lots can be dangerous places, especially this winter with so much ice and snow in so many places across the country. A nurse at an Illinois hospital was recently killed by a snowplow in the hospital parking lot. How can your company avoid tragedies like this as well as other parking lot accidents in its facilities?
One problem with parking lots is that drivers feel they can let their guard down because they’re no longer on the road. However, according to a study by the Independent Insurance Agents and Brokers Association, 20 percent of insurance claims were related to parking lot accidents. The problem is twofold—limited visibility and distraction. A full parking lot makes it hard for drivers to see hazards. As well, drivers entering or leaving parking spaces have severely constrained visibility.
Distractions are a major issue. When people get into their cars, they do all kinds of things such as fiddling with the radio, checking their phones, or starting up their GPS. Unfortunately, many of these activities take place as they are backing up or driving in the parking lot. As a result, they may not see pedestrians, who may also be distracted—especially by their phones—as they walk.
All of these hazards are made considerably worse in inclement weather, so share these parking lot safety tips with employees:
- Do everything you need to do (adjusting seat, mirrors, etc.) before you exit the parking space.
- When walking in a parking lot, stay to the sides of the aisle and watch for cars.
- Do not talk on the phone or use headphones in a parking lot.
- Obey parking lot speed limits and lane designations; don’t cut diagonally across the lot.
- When walking in an icy lot (or any lot for that matter) make eye contact with an approaching driver. Stop if you don’t think the driver has seen you.
- Wear boots or shoes with nonslip soles and good ankle support. If necessary, carry your work shoes with you and change inside.
- Snow muffles engine sounds; don’t rely solely on hearing to know if a vehicle is coming. Electric and hybrid vehicles are especially quiet.
New non-insurance benefits hit the market
Originally posted December 12, 2014 by Mike Nesper on Employee Benefit Advisor
As employee benefits plans evolve, so too does the employer’s perspective, particularly when it comes to voluntary benefits. More and more, employers are viewing benefits holistically instead of taking a siloed approach. As Mercer’s U.S. innovation leader, Betsy Dill expects to see that trend continue as we head into the New Year as employers continue to personalize benefit plans to their workforce.
That includes adding non-insurance products, which are steadily becoming part of more benefits packages, says Rob Shestack, senior vice president and voluntary benefits national practice leader at AmWINS Group. “Every year, they’re gaining more popularity,” he says. “It’s all part of this wellness balance,” which includes employers ensuring the physical, financial and mental well-being of their workforce. “A stool can’t stand on two legs,” he says.
Even if a client doesn’t opt for a non-insurance plan, Shestack says, they’re always interested in what’s available. “Today, it’s really getting a lot of conversation going,” he says.
And why not? There are plenty of useful items to choose from — Shestack estimated upwards of 50 products — everything from identity theft protection to telemedicine to roadside assistance. Along with those three, some of the more popular products include legal services, pet insurance, consumer goods purchasing programs and financial helplines.
“The list goes on,” Shestack says. “Some of these things have been out for quite a while and some are new this year.” In 2014, Shestack says, a few new products hit the market — one of those being Estate Assist, a digital safety deposit box where important information such as a will and/or insurance policies can be stored. In 2015, “we’ll probably see three or four or five more,” he says.
‘High-impact, low-cost programs’
Non-insurance plans are usually inexpensive and often consist of a handful of products offered in a package, Shestack says. “A lot of these things are bundled,” he says. “Employers are looking for high-impact, low-cost programs.”
Employers of all sizes offer these plans, Shestack says, and he’s seeing more employer-sponsored programs with a buy-up option. “When an employer funds a base plan for everybody, the cost significantly decreases,” he says.
Despite the prevalence of non-insurance products, Shestack says there’s still plenty of employers unaware of their existence — that’s where advisers need to step in and educate employers about these types of voluntary programs.
Not only does an adviser have to be adept at product assessment, they must select the appropriate plan for the workforce in question, says Jim O’Connor, national practice leader for employee benefits at CBIZ. A manufacturing company made up of lower-wage employees is much different than a financial services firm. “You need to know how the product lines up with the workforce,” O’Connor says.
Education and communication are also part of an adviser’s job. “That’s not just about sending a memo out and leaving it at that,” O’Connor says. Advisers who communicate well do so via thoughtful, thorough and various channels, he says. “You have to have a diverse approach to your communicating strategy,” O’Connor says.
Wellness programs adopt outside-the-box solutions
Originally posted December 15, 2014 by Mike Nesper on Employee Benefit Advisor
Increasing participation in a particular activity can be done with incentives, “but you can’t buy commitment to health,” says Alexander Domaszewicz, a principal and senior consultant with Mercer. “Getting people committed to health takes other influencers and motivators.”
That’s the state of wellness programs in the workplace, Domaszewicz says, trying to make a program as valuable as possible and doing so in a meaningful way. “We’re enhancing and refining as we go,” he says.
More employers are using outcomes-based incentives, says Beena Thomas, Optum’s vice president of health and wellness. “It increases personal responsibility,” she says. Financial incentives, like premium reductions for employees who meet biometric thresholds, are widely used, but there are other strong motivators, Domaszewicz says. People are more likely to participate if an activity is easy and accessible, he says. Participation is less likely if an activity is difficult, he says, even if there is money attached to it.
Wellness programs have moved past a one-size-fits-all mentality, Domaszewicz says, and employers are now focused on employee health both at work and at home. The latter is even being recognized — such as rewarding someone who plays in an adult soccer league.
Employees prefer face-to-face interaction
There’s also more focus on one-on-one interaction, Domaszewicz says. “We tried to make everything so digital in the last decade,” he says, but employees prefer in-person communication. Employers are bringing professionals, like dieticians, to the workplace, Thomas says. “Employees like to see someone face-to-face,” she says.
Social media has helped increase participation, too, Thomas says. “Social media has played and will play a larger, more defined role in driving employee engagement,” she says.
Wellness programs have evolved rapidly in the past five years, Domaszewicz says, just look at all the wearable devices available today. “There’s a lot to be said for the groundswell of support we’ve seen,” he says. Wellness should continue to accelerate and be more successful in the future, he adds.
Wearables are evidence that employers are focusing on outcomes rather than return on investment, says Robin Widdis, business unit president and interim wellness director at CBIZ. “It’s about encouraging employees to take their health more seriously,” she says, “and employers have shown greater interest in healthy outcomes rather than dollars spent.”
Integrated approach
An integrated health strategy is an approach many employers are taking, Thomas says, and using one vendor for all benefits. “Affordability still continues to remain paramount for employers,” she says.
Regardless of any new legislation, Thomas says wellness programs will keep progressing and employers will continue to emphasize wellness as a core piece to their business strategy. “It’s not something that just sits siloed in the HR department,” she says.
Perry Braun, executive director of Benefit Advisors Network, isn’t so sure. “Intuitively, it is a sound business strategy to invest in these programs, however, businesses are cautious about making investments until the regulatory environment and tax policies have greater certainty or predictability to them,” he says. “Wellness programs require a long-term view and investment from the business community, and unfortunately, the overall business climate is short-term focused at present.”
Ensuring compliance
Advisers got a reminder this year to make certain wellness plans are compliant with the Affordable Care Act after the EEOC sued Wisconsin-based Orion Energy Systems, claiming the employer imposed too harsh a penalty for opting out of the program. Employees who participated had 100% of their premiums covered by the employer, while those who didn’t participate had to pay 100% on their own.
“For a lot of employers it was frustrating to see these lawsuits because they’ve been asking for clarity — not legal action — for many years,” says Karen Marlo, vice president at the National Business on Group Health. “I think there’s a lot of concern. There’s certainly been a lot of going back and reviewing the programs they’ve put in place.”
It’s difficult navigating the various regulations surrounding health care, Marlo says, making it crucial advisers ensure programs are compliant with the ACA, GINA, ADA and HIPAA to avoid lawsuits.
What to expect in 2015
In 2015, employers will continue to shift the rising cost of health care to employees, Widdis says, which will create “an emphasis on healthier lifestyles. There will also be more of a focus on taking action versus pushing information.” Gone are the days of handing out booklets on the dangers of smoking, Widdis says, and employers are now taking action such as charging smokers higher premiums.
Vinnie Daboul, partner at Sage Benefit Advisers, agrees, saying “the successful wellness programs are not going to be the status quo.” Effective programs will be ones that take action based on biometric data and reduce claims, he says. “When you start talking to some of the organizations that are tied to wellness, they’re starting to look at changing the claim curve,” Daboul says.
That includes involving family members, Widdis says. “Employers are also encouraging employees’ spouses and families to become more involved in their wellness programs,” she says. “Moving forward, employers are making wellness less about ROI, and more about improving health, productivity and morale.”
7 ways to make the (dreaded) annual review better for your employees
Originally posted December 12, 2014 by Alan Fox on HR.BLR.com
In the movie Coconuts the hotel employees of a mustachioed Groucho Marx chased him from the lobby and up a flight of stairs.
“We want our money,” they shouted.
“What do you mean?”
“We want our money,” they yelled again.
“I don’t understand. You want whose money?” Groucho shouted back.
“You haven’t paid us. We want to be paid!”
“Oh,” says Groucho, pointing directly at them. “You want my money,” with emphasis on the “my.”
Money is one reason the annual review is dreaded. A second reason is that the employer needs to give the employee “constructive” criticism.
But why should we think of the review as being about the employee? Don’t both the employee and employer want the best possible performance? If you are an employee and don’t perform as well as you can, perhaps you lack the proper tools or training. Maybe you don’t feel appreciated and, as a result, are not as involved as you might be. Tools, training, and the expression of appreciation are the responsibility of the employer, not the employee.
Also, why shouldn’t I want to encourage the best performance possible, and pay fairly for that performance? If all of my 45 or so employees felt unfairly treated and failed to show up Monday morning, my business would instantly disappear. Each of them is excellent at what they do and could easily find a position somewhere else. But how could I reconstruct the outstanding team which we have built together over the past 45 years?
I now regard the (not dreaded) annual review as a review of my own performance, not theirs. I think of my employees as coworkers. We work in the same building, write e-mails to outsiders and to each other, talk on the telephone, and enjoy lunch in the early afternoon. Every one of us is a crew member on the same ship, headed in the same direction. (At Disneyland you would be called a “Cast Member,” which sounds nice but, to me seems more like acting rather than interacting with customers and each other).
The ideal procedure on the annual review is:
- Keep coworkers up to date on how they are doing during the year.Think of yourself as a coach, offering suggestions and encouragement during the game. Offer approval to encourage your empoloyees, and suggest course corrections to help them focus on what needs to be changed. When your flight lands in San Francisco it’s too late to remember that you should have boarded the flight for Chicago.
In the old days I would say to an employee after his or her first day on the job, “I’ve decided to renew your option. You can come back tomorrow.” I cringe at the thought of how I would feel if my new boss of one day said that to me. Recently I hired someone to help with the marketing and promotion of People Tools. At the end of the first week I asked, “Are all of us providing proper information and support so that you can do your best work?” If you have properly helped your coworkers during the year there will be no bad surprises for either of you at the annual review.
- When it’s time for the annual review, make sure to conduct it within a week or two of the anniversary date. It’s not fair to your coworkers to delay information which is important to them and keep them walking on eggshells, waiting for “the knife to drop.”
- Ask each person being reviewed to evaluate him or herself. Ask them to write down their accomplishments of the past year and goals for the coming year. Not only does this help your employees learn the valuable skill of self-assessment, it also shows how much you respect and appreciate their opinions.
- Ask the reviewees what salary they think they deserve. I use their recommendation as a guide. Years ago an employee, who worked with me for almost 25 years, always asked for a 10 or 15 percent raise, which was far too high. But at least I knew what she was thinking. One year my vice president/general manager, asked for a raise which was far too small. I increased her salary by three times the amount she had requested.
- During the review ask how you, or other managers, can better assist employees to perform better. “Replace my 7-year old computer,” was one answer. I was embarrassed. I had allowed a valued member of my accounting staff to struggle for 2 years with entirely outdated equipment.
- Give a bonus. If a member of your team has made an outstanding contribution to the company that saves time and money, increases profits and productivity, or improves the working conditions in the office, consider awarding them a one-time bonus. This way, the annual review can be just as much about rewarding performance as it is about offering constructive suggestions on how to improve.
Why shouldn’t you want to encourage the best performance possible, and pay fairly for that performance? If my goal is to retain my team member for another full year, I sometimes pay part of their increased salary as a bonus at their next anniversary date. We all like something “extra,” and often a $2,000 bonus looks larger than $166.67 a month, before payroll taxes.
- Be prepared at to be flexible, especially when it comes to hours of work (some people prefer to begin their work day at 6:00 am), and time away from the office for personal matters. One of the biggest perks I enjoy myself, as an entrepreneur and business owner, is that I set my own hours. I can take off Thursday afternoon and come in on Saturday morning if I like. So I refuse to be a prison warden for my staff. They work with me to accomplish a mission, not to lose their freedom to visit a doctor when they need to, or watch their daughter’s soccer finals.
When I improve as a manager, my coworkers improve at their positions. That is why I no longer dread reviewing them, because, in reality, we are helping each other.