Study: What benefits do employees go for on private exchanges?
Jack Craver gives insight on the best benefits options for private exchanges
A new study offers insight into the types of benefits and benefit designs employees go for when given the choice.
The study, by the Private Exchange Research Council, analyzed hundreds of thousands of benefit purchases made by workers whose employer offers benefits through a private exchange.
The average employer that uses a private exchange offers 14 different benefits and six medical plans, the study found. Employees purchased an average of 4.4 products in 2015, up from 3.6 the previous year.
Older workers are more likely to buy more coverage, with 44 percent of Gen Xers and 42 percent of baby boomers buying more than four products, compared to only 30 percent of millennials.
While employers are increasingly demanding that employees accept high-deductible health plans accompanied by a health savings account, the majority of workers analyzed in the study appear to have traditional health plans, although the percentage with HSAs is rising. Forty-two percent of employees had an HSA in 2015, up from 38 percent in 2013.
Those who opt for high-deductible HSA-qualifying plans tend to be younger and healthier; that’s no surprise. However, the study also found that men and high-paid employees tend to favor such plans more than women and lower-paid employees.
Perhaps surprisingly, the study also found that nontraditional insurance products, such as pet insurance, legal insurance and identity theft insurance, are more likely to be offered by smaller companies.
Private exchanges and the employers that use them describe them as a way to increase employees’ engagement with their benefits. In a health care system that many have argued is overpriced and inefficient because the costs have been hidden behind health plans largely paid by employers, private exchanges are touted as a way to make individuals more sophisticated health care consumers that make conscious decisions about what services they want and need.
Private exchanges got a big boost earlier this year when Starbucks announced that it would be offering its employees an array of health plans to choose through an exchange run by Aon.
In a statement accompanying the study’s release, Christopher Condeluci, one of the principals of Private Exchange Research Council, described the group and its research as addressing a lack of data on the types of benefits that individual consumers favor.
"Knowing what plans people want and how they choose them will go a long way in helping the benefits industry better meet employers' and employees' needs,” he says.
See the original article Here.
Source:
Craver, J. (2016 October 20). Study: what benefits do employees go for on private exchanges? [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/10/20/study-what-benefits-do-employees-go-for-on-private?kw=Study:%20What%20benefits%20do%20employees%20go%20for%20on%20private%20exchanges?&et=editorial&bu=BenefitsPRO&cn=20161024&src=EMC-Email_editorial&pt=Daily
15 voluntary benefits trends heading into 2017
Alan Goforth lists the top benefits trends of 2017.
Predicting industry trends is as much a sign of the end of the year as after-Christmas sales and New Year's resolutions.
Although predicting the future is only an educated guess, one thing is certain — voluntary benefits are here to stay.
Carriers, brokers, employers and workers all give a thumbs-up to the increased flexibility and opportunities for cost control they bring to benefits packages.
Here is what may lie over the horizon in 2017.
THE MARKET IS BULLISH
As a result, the quantity and quality of voluntary benefits will continue to grow. Examples of traditional voluntary benefits employers are likely to add include gap coverage, short-term disability, cancer, critical illness, prescription, dental, life insurance and hospital supplemental policies. Brokers should make sure they have these products in their portfolios.
WELLNESS PROGRAMS GET FISCAL
Most businesses understand that the size of an employee's waistline can correlate to attendance, productivity and turnover. Many also are starting to realize the link between the size of their bank account and job performance.
Smart employers are adding voluntary benefits that can help workers reduce stresses associated with finances and debt. These can include financial education, financial counseling, employee purchase programs, parental leave, retirement planning and even short-term loans under certain circumstances.
A-WEAR-NESS IS INCREASING
Technology is taking the guesswork out of employee wellness programs. Nearly two-thirds of carriers surveyed expect wearable technologies to have a significant impact on their industry, according to Accenture's annual Technology Vision report. Fitbits and similar devices enable employees to quantify the results of their effort, which both inspires them and provides employers valuable feedback about the effectiveness of their programs. An increasing number of businesses now subsidize the cost of wearable devices or set up payroll deductions to cover the expense.
ENGAGEMENT GOES HIGH-TECH
Year-in and year-out, HR professionals cite employee engagement as one of their most vexing issues. Traditional tactics are becoming less effective with millennial employees, who often prefer voluntary benefit portals and enrollment platforms.
"Millennials get information on their own," said Aprilyn Chavez Geissler, owner of Geissler Agency Inc. in Albuquerque. "However, when it's time to purchase, they still want the personal service and an advisor to help them. As a large demographic, they are similar to the silent generation in that they think through their purchases and do research on their own."
CRITICAL ILLNESS REACHING CRITICAL MASS
Critical illness insurance was once a blip on the radar screen of voluntary benefits packages — but not anymore. It is becoming an increasing popular option as the workforce ages and companies reduce primary health coverage and shift the cost of primary medical onto
“Critical illness insurance is by far the fastest-growing insurance product on the market," said Mark Randall, a researcher for GoldenCare in Minneapolis. "Even though the market share is still fairly small, it's a hot product. The bottom line is that every broker should add this product to their portfolio.”
VOLUNTARY BENEFITS REDEFINED
One sure sign of growing demand for voluntary benefits is the fact that many definitions have become obsolete. In the past, voluntary benefits were limited to such bread-and-butter options as dental or vision insurance. Today, however, they are all about lifestyle benefits, such as health club memberships, legal services or pet insurance. A good working definition of a voluntary benefit is anything that can be deducted from an employee's paycheck.
CONSUMERS DRIVE PLANS
A well-designed consumer-driven health plan creates a win-win scenario. Employers hold the line on costs, and employees pay only for the coverage they need and want. This can mean a transition to high-deductible health plans and health savings accounts or health reimbursement arrangements that help employees pay their out-of-pocket expenses and allow them to retain unspent contributions.
TOOLS PROMOTE TRANSPARENCY
Information is a double-edged sword: Employees can be overwhelmed by the voluntary benefit options available to them, but they are also empowered to make smart choices. Benefits providers, brokers and employers are providing user-friendly tools that increase transparency. Studies show that this is especially important to younger workers.
Fifty-two percent of millennials report searching online for health or care-related information, and reliance on social media, patient portals and performance scorecards is growing. One-quarter of consumers say they have looked at a scorecard or report card to compare the performance of doctors, hospitals or health plans, compared to 19 percent two years ago. Among millennials who need medical care, scorecard use has grown from 31 percent to 49 percent.
THE DOCTOR WILL SEE YOU… ONLINE
Telemedicine is a natural byproduct of increased telecommuting. The practice is both a cost-effective option for employers and a perk for employees who are paying more out of pocket for health care. On-call services can bring virtual health care providers into the office with advice about preventive care and nonthreatening illnesses.
ANALYTICS REDUCING GUESSWORK
Anyone remotely involved in the benefits business knows that the industry is swimming in tons of data. Innovative employers are putting this information to work to design better plans that improve health care and reduce expenses. Claims data and historical use patterns demonstrate how much employees can save on new plans by making better decisions. This information also helps employers get a better handle on plan costs, employee adoption and administrative efficiency.
NONTRADITIONAL BENEFITS BOOMING
Employees continue to express interest in new, nontraditional voluntary benefits, and carriers are responding. According to a study by Eastbridge Consulting, 13 percent of employees have selected employee purchase programs; 8 percent have selected legal plans; 3 percent have selected identity protection; and 1 percent selected pet insurance. The relatively low numbers reflect the fact that these options are new, according to researchers.
These percentages are expected to grow. Nontraditional voluntary benefits offer workers a way to obtain products and services through convenient payroll deduction. Most nontraditional offerings provide immediate, tangible benefits that can be used any time, unlike many core benefits that employees need only when they are sick or injured.
CAREER DEVELOPMENT IS HOT
Employees are eager to improve themselves, especially if doing so is cost-effective. Financial planning and online educational services, including college courses, certifications and career development, are becoming popular. Look for more of these, such as Graduate Management Admission Test prep and Graduate Medical Education courses, to be added.
MINIMUM WAGE HIKES MAY SPIKE DEMAND
Although the drive toward a $15 per hour minimum wage in some cities has been controversial, it may have an upside in demand for voluntary benefits.
"With the California minimum wage going to $15 an hour, those employees will have extra money to opt for more voluntary benefits," said Wayne Sakamoto, owner of Health Insurance Interactive Inc. in Naples, Florida. "This extra money will help them get into a nicer apartment, buy a home, get a car or opt to purchase more voluntary benefits. Benefits such as dental and vision insurance are a goodwill gesture by the employer."
DEMAND CREATING COMPETITION
Brokers, employers and workers all may benefit from the increasing number of carriers offering voluntary benefits.
"Brokers now have a lot more different carriers in voluntary benefits than they did several years ago," said Kathy O'Brien, vice president of voluntary benefits and national client group services for Unum in Chattanooga, Tennessee. "They have to be very knowledgeable about the carrier, what they will do to meet the needs of their clients and what types of service they offer, not just in enrollment but also in plan administration, how they will deliver the services, how they will pay and handle billing information."
VOLUNTARY BENEFITS MUST BE INTEGRATED
A well-designed package of voluntary benefits is more efficient when integrated seamlessly with traditional benefits, and not merely tacked on. Learning how best to do this is an ongoing challenge.
"Understanding how all of the different solutions work together is critical, especially when paired with a high-deductible health plan," said Paul Goedde, executive vice president of the Voluntary Employee Benefits Board and product management lead for Cigna in Philadelphia. "Not only does it help the employer attract and retain talent, it helps them manage their bottom line with more-productive and satisfied employees."
See the original article Here.
Source:
Goforth, A. (2016 October 25). 15 voluntary benefits trends heading into 2017. [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/10/25/15-voluntary-benefits-trends-heading-into-2017?kw=15+voluntary+benefits+trends+heading+into+2017&et=editorial&bu=BenefitsPRO&cn=20161025&src=EMC-Email_editorial&pt=Daily&page_all=1
Court denies NAFA in DOL fiduciary rule case
Department of Labor fiduciary rule survives its first challenge, by Nick Thornton
The National Association for Fixed Annuities has lost its challenge to the Department of Labor’s fiduciary rule.
In a decision issued today in the United States District Court for the District of Columbia, Judge Randolph Moss denied NAFA’s motions for a preliminary injunction and summary judgment.
Among other things, NAFA claimed DOL violated the Administrative Procedure Act when it shifted the regulation of fixed indexed annuities to the rule’s Best Interest Contract Exemption. In the proposed version of the rule, FIAs were scheduled for regulation under the less restrictive Prohibited Transaction Exemption 84-24.
In shifting FIAs to the BIC exemption in the final rule, NAFA argued industry was not given adequate notice to comment on the implications, as the APA requires.
But Judge Moss cited case law showing that a final rule “need not be the one proposed” in the rulemaking process.
“It is enough that the final rule constitute a logical outgrowth” of the proposed version, wrote Moss.
Moss reasoned that NAFA was given adequate notice that the Department was considering regulating FIAs under the BIC exemption when it explicitly sought comments on whether annuities were adequately regulated in the proposal.
NAFA argued the proposal gave “no inkling whatsoever that the Department was considering moving FIAs from PTE 84-24 to the BIC.”
But Moss ruled that NAFA’s reading of the proposal, and DOL’s request for comment on the viability of how annuities were treated, was “not tenable.”
“The Department expressly requested comment on its decision to ‘continue to allow IRA transactions involving’ fixed indexed annuities ‘to occur under the conditions of PTE 84-24,” wrote Moss.
“That is, it (DOL) asked whether fixed indexed annuities should be grouped under PTE 84-24 or not,” added Moss. “And, if there were any doubt on this, it would be put to rest by the fact that NAFA, along with other industry groups, provided comments on that very issue.”
Full analysis of the ruling will follow.
See the original article Here.
Source:
Thornton, N. (2016 November 04). Court denies NAFA in DOL fiduciary rule case. [Web blog post]. Retrieved from address https://www.benefitspro.com/2016/11/04/court-denies-nafa-in-dol-fiduciary-rule-case?ref=hp-news&slreturn=1478547367
Beware: Losing health plan grandfathered status is an administrative nightmare
Some interesting points on grandfathered status' from HRMorning, by Jared Bilski
Employers that have managed to keep their grandfathered status until now may think they’re immune from the hassles of the ACA, but a recent DOL investigation is a good reminder that the feds are always watching for a slipup.
Sierra Pacific Industries Health Plan was one of the few remaining grandfathered plans in existence, and they managed to keep that status for years after the ACA took effect.
But, according to a DOL investigation, the plan made some changes beginning on Jan. 1, 2013, that prevented the plan from keeping its grandfathered status and led to a relinquishing of that status in the feds’ eyes.
Those plan changes, as well as how the plan made determinations on employee health claims, violated both the ACA (specifically the provisions on preventive health services and internal claims and appeals rules) and ERISA, the DOL claimed.
‘Operating as though it were exempt’
As the DOL’s Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi said:
“The Affordable Care Act put into place standards and protections for workers covered by employee benefit plans. The Sierra Pacific plan was operating as though it was exempt from such requirements, when indeed, it was not. This settlement means that workers improperly denied health benefits will have their claims paid. Corrections made to plan procedures will also mean that all future claims are processed and paid properly.”
No premium or deductible bumps
The end result of the feds’ investigation: A lot of administrative work and changes for Sierra Pacific.
As part of the settlement, plan fiduciaries agreed to comply with the ACA requirements for non-grandfathered plans moving forward, specifically the rules for internal claims and appeals and coverage of preventive health services.
Plus, for the 2017 plan year, the company will have to forgo any increases to participant premiums, annual out-of-pocket limits, annual deductible and coinsurance percentages in effect for the 2016 plan year.
On top of all that, the company agreed to:
- Revise plan documents and internal procedures.
- Re-adjudicate past claims for preventive services, out-of-network emergency services, claims affected by an annual limit and pay claims in compliance with the ACA and ERISA.
- Submit to an independent review organization claims were eligible for external review.
- Pay claims that had been left on hold for a long time.
- Comply with timelines for deciding claims as provided in the department’s claim regulation.
See the original article Here.
Source:
Bilski, J. (2016 October 14). Beware: losing health plan grandfathered status is an administrative nightmare. [Web blog post]. Retrieved from address https://www.hrmorning.com/beware-losing-health-plan-grandfathered-status-is-an-administrative-nightmare/
Executive order forces DOL to enact final rule on paid sick leave
Interesting read about the new DOL final rule from Employee Benefit Adviser, by Leanne Mehrman
The U.S. Department of Labor acted on President Obama’s Executive Order 13706 (EO) and released a final rule implementing the requirements for federal contractors and subcontractors to provide employees with paid sick leave. Specifically, contractors must provide one hour of paid sick leave for every 30 hours worked on or in connection with a covered contract, for at least 56 hours per year, and subject to certain limitations. The requirements will take effect for covered contracts entered into on or after January 1, 2017.
An employee may use the leave for his or her own physical or mental illness, injury, medical condition, treatment or diagnosis as well as that of any person with whom the employee has a significant personal bond that is or is like a family relationship, regardless of biological or legal relationship. This includes such relationships as grandparent and grandchild, brother- and sister-in-law, fiancé and fiancée, cousin, aunt, and uncle. It could also include others with whom the employee has a family-like relationship such as a foster child or foster parent, a friend of a family, or even an elderly neighbor in certain circumstances.
An employee may also use the leave for absences from work resulting from domestic violence, sexual assault, or stalking, if the leave is for the reasons described above or to obtain additional counseling, seek relocation, seek assistance from a victim services organization or to take related legal action. The leave for domestic violence, sexual assault or stalking is available for the employee and for the employee to assist a related individual as described above.
Covered contracts: The EO and Final Rule apply to contracts and contract-like instruments (which will be defined in DOL regulations) if the contract is:
- a procurement contract for services or construction;
- a contract for services covered by the Service Contract Act (SCA);
- a contract for concessions, including any concessions contract excluded by DOL regulations at 29 CFR 4.133(b); or
- a contract or contract-like instrument entered into with the federal government in connection with federal property or lands and related to offering services for federal employees, their dependents, or the general public; and
The wages of employees under these contracts are covered by the Davis Bacon Act (DBA), the SCA or the Fair Labor Standards Act (FLSA), including employees who are exempt from the FLSA's minimum wage and overtime provisions.
For contracts covered by the SCA or DBA, the EO and Final Rule apply only to contracts at the thresholds specified by those statutes. For procurement contracts in which employees' wages are covered by the FLSA, the EO and Final Rule apply only to contracts that exceed the micro-purchase threshold as defined in 41 U.S.C. 1902(a), unless expressly made subject to this order pursuant to DOL regulations.
Highlights of the final rule requirements include:
- Accrued sick leave must be carried over from year to year;
- Contractors must reinstate accrued sick leave for employees rehired by a covered contractor within 12 months after job separation;
- Contractors are not required to pay a separating employee for unused sick leave upon separation;
- Contractors must inform an employee, in writing, of the amount of paid sick leave accrued but not used no less than once each pay period or each month, whichever is shorter;
- Contractors cannot require the employee to find a replacement worker as a condition for using the paid sick leave;
- Contractors covered by the SCA or DBA will not receive credit toward their prevailing wage or fringe benefit obligations under these acts by providing the paid sick leave required by the EO;
- A contractor's existing paid sick leave policy provided in addition to the fulfillment of the SCA or DBA requirements, which is made available to all employees, fulfills the requirements of the EO and Final Rule if it permits employees to take at least the same amount of leave as provided by the EO for the same reasons;
- Employees must provide written or verbal notice of the need for leave at least seven days in advance if the leave is foreseeable and as soon as practicable when the need for the leave is not foreseeable;
- A contractor may only require certification of the need for the leave for absences of three or more consecutive days, but only if the employee received notice of the requirement to provide certification or documentation before returning to work;
- A contractor’s existing PTO policy can fulfill the paid sick leave requirements of the EO as long as it provides employees with at least the same rights and benefits that the Final Rule requires if the employee chooses to use that PTO for the purposes covered by the EO;
- Contractors may not interfere with or retaliate against employees taking or attempting to take leave or otherwise asserting rights under the EO;
- Contractors must still comply with federal, state or local laws or collective bargaining agreement provisions that require greater paid sick leave than required by the EO.
SCA health and welfare benefit rate to be adjusted: The DOL’s Wage and Hour Division (WHD) will be announcing an SCA health and welfare benefit rate specifically for federal contractors whose employees receive paid leave pursuant to the EO and Final Rule. This rate is expected to be lower than it would be without consideration of the provision of this paid sick leave.
Recordkeeping requirements: Contractors will be required to make and maintain records for purposes of the EO and Final Rule, including:
- Copies of notifications to employees of the amount of paid sick leave accrued;
- Denials of employees’ requests to use paid sick leave;
- Dates and amounts of paid sick leave employees use; and
- Other records showing the tracking of employees’ accrual and use of paid sick leave.
As with other leave laws, federal contractors must also keep employees’ medical records, as well as records relating to domestic violence, sexual assault, and stalking, separate from other records and confidential.
Employers’ bottom line
Federal contractors who anticipate entering into contracts that will be subject to Executive Order 13706 should do the following: First, review any current PTO/sick leave policy to determine if any revisions may be needed to bring it into compliance with the EO and Final Rule. Second, review the current payroll system to ensure that it has the capabilities to track the amount of paid time off accrued and taken, and timely advise employees. And finally, become familiar with the specific and detailed requirements contained in the Final Rule to ensure compliance upon entry into the first covered contract.
See the original article Here.
Source:
Mehrman, L. (2016 October 6). Executive order forces DOL to enact final rule on paid sick leave. [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/executive-order-forces-dol-to-enact-final-rule-on-paid-sick-leave
New EEOC pay reporting rule issued: 3 things you need to know
Check out some new EEOC rules from HR Morning, by Christian Schappel
It’s official: Employers will have more reporting duties moving forward. Here’s everything you need to know about the EEOC’s new final rule.
As expected, the agency just released its final rule updating the EEO-1 reporting requirements employers have to abide by.
For the most part, the final rule mirrors the proposed rule we got our hands on earlier this summer.
The rule requires certain employers to submit a summary of employees’ pay to the EEOC in addition to the gender, race and ethnicity reporting many employers are already accustomed to.
Beginning in 2018, employers will be required to report aggregate W-2 wages and hours worked in 12 pay bands for each of the 10 EEO-1 job categories and 14 gender, race and ethnicity categories. The EEOC issued a new sample EEO-1 form to help employers prepare for the new rule.
Three key components of the rule employers need to know:
Who will (and won’t) report pay data?
- Private employers and federal contractors with 100 or more employees will have to report the summary pay data on the new EEO-1 form.
- Federal contractors and subcontractors with between 50 and 99 employees will not report summary pay data, but they will tally employees by job category and then by sex and ethnicity or race, as they did before and report that information.
- Federal contractors and subcontractors with fewer than 50 employees will not file EEO-1 reports.
- Private employers with 99 or fewer employees will not file EEO-1 reports.
When is the first pay data due?
- The new EEO-1 report will be due for the first time on March 31, 2018, and it’ll be due every March 31 thereafter.
- This year’s reporting requirements have not changed, however. Those required to submit an EEO-1 report must still submit their 2016 reports by Sept. 30, 2016.
- Employers will then have 18 months between the 2016 and 2017 EEO-1 deadlines — from September 30, 2016 until March 31, 2018 — to comply with the new reporting requirements.
How will the new pay data be reported?
- Employers with 100 or more employees must first categorize employees by EEO-1 job category. The 10 categories are:
- (1) Executive/Senior Level Officials and Managers;
(2) First/Mid Level Officials and Managers;
(3) Professionals;
(4) Technicians;
(5) Sales Workers;
(6) Administrative Support Workers;
(7) Craft Workers;
(8) Operatives;
(9) Laborers and Helpers; and
(10) Service Workers.
- (1) Executive/Senior Level Officials and Managers;
- Then, they will categorize employees by sex, and ethnicity or race. These first two steps mirror the current EEO-1 reporting procedures.
- Next, employers will categorize employees by pay bands. The 12 pay bands added to the EEO-1 form are:
- (1) $19,239 and under;
(2) $19,240 – $24,439;
(3) $24,440 – $30,679;
(4) $30,680 – $38,999;
(5) $39,000 – $49,919;
(6) $49,920 – $62,919;
(7) $62,920 – $80,079;
(8) $80,080 – $101,919;
(9) $101,920 – $128,959;
(10) $128,960 – $163,799;
(11) $163,800 – $207,999; and
(12) $208,000 and over.
- (1) $19,239 and under;
- Employers will tally the number of employees in each pay band by sex, and ethnicity or race. For example, an employer might report 23 Sales Workers who are non-Hispanic, white women in pay band (4) $30,680 – $38,999.
- The rule changes the “workforce snapshot” to a pay period between Oct. 1 and Dec. 31. The current snapshot period is July 1 through Sept. 30. The EEO-1 report due March 31, 2018 will be the first to use the Oct. 1 through Dec. 31 snapshot period.
- Report income provided in Box 1 of Form W-2.
- Employers will report the total number of hours worked that year by the employees in each pay band. For example, an employer reports the total number of hours worked by 23 Sales Workers who are non-Hispanic white women in pay band (4). (Note: The new EEO-1 gives employers a choice for how to count hours worked for employees who are exempt employees under the FLSA. An employer may either use 40 hours per week for full-time employees and 20 hours per week for part-time employees or, if it chooses, report the number of hours the employees actually worked.)
- Under no circumstances should employers report individual pay or salaries or any personally identifiable information.
The EEOC says the new data will help it improve investigations into pay discrimination. The goal is to close the wage gap and better equalize pay among different age, gender and ethnic/racial groups.
See the original article Here.
Source:
Schappel, C. (2016 September 30). New EEOC pay reporting rule issued: 3 things you need to know. [Web blog post]. Retrieved from address https://www.hrmorning.com/eeoc-new-pay-reporting-rule-need-to-know/
The demand for data transparency is mounting
Interesting thoughts on transparency data from Employee Benefit Adviser, by Suzy K. Johnson
December 2003 was a great time for health plans in America. This was when high deductible health plans and the underlying health savings accounts were enacted into law by the federal government.
With this law, we were provided the ability to engage employees more directly in the cost of their care with the elimination of copays and Rx cards under these plans.
What many brokers don’t realize is that the law allows anyone to fund the underlying health savings accounts. This means that employers can and should be shown how to use the savings in premiums created by moving to these types of plans to “fund” employees’ health savings accounts. This can result in a win/win for all.
When employers fund the employee’s HSA, they provide the employee the ability to direct additional money into a flex spending type of plan (HSA) that has much higher limits for funding, and allows the same expenses to be reimbursed along with long-term care premiums, COBRA premiums and Medicare Part B expenses. These accounts don’t have the “use it lose it” risk that flex medical reimbursement plans have always included.
A top priority
Now what we need is transparency data from the hospitals and providers. It is my belief that if every American was required to have a high deductible health plan paired with a health savings account only, the demand for transparency data would be palpable and the pressure forced on providers and hospitals to comply would amplify.
Right now the transparency data is not available and this needs to change. If the only plans employers could offer were HDHP plans with HSA accounts and if employers provided funding to help their employees to be able to afford the additional exposure shifted to them, the demand for transparency data would suddenly become top priority and the government would demand it of providers.
Yes, they are more complicated to understand, and yes, the programs require more employee education and hand holding. Nothing good happens when we sit on the sidelines. Let’s commit to becoming part of the solution!
See the original article Here.
Source:
Johnson, S. K. (2016 October 4). The demand for data transparency is mounting. [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/the-demand-for-data-transparency-is-mounting
The millennial marketing tactic your competitors aren’t using
Some helpful tips for marketing with Snapchat from Employee Benefit Adviser, by Eric Silverman
“Hey cuz, do you Snap?” That’s the question my millennial client asked me a couple of years ago via text message. My response was probably not very different from yours would have been at that time and probably is still: ‘Isn’t Snapchat just for teens sending each other questionable videos?’
Similar things were initially said about text messaging, YouTube, Facebook, Instagram and Twitter. Most social media experts have said that Facebook is so full of baby boomers and Generation X that millennials aren’t using it nearly as much as they used to. Recent reports have even shown that the same thing is now happening with Twitter.
If the natural progression for millennials and Generation Z is to quickly migrate to whatever the newest cutting-edge social platform is when prior generations finally catch on, then why wouldn’t you want to market on a platform that currently consists of a younger demographic? After all, recent history has proven that the migration from one generation to another on new social platforms happens fairly quickly. With that in mind, I’m convinced that Snapchat will evolve to Generation X and even baby boomers at some point in the near future.
If we’re going to help boost your enrollment participation and millennial recruiting, then we must talk ‘geofilters.’ What’s that, you ask? With your smartphone’s location services and filters enabled, a geofilter is a fun and engaging way for a Snapchat user to share where they are, or what they’re up to, by simply swiping left or right on their device and adding what’s known as an ‘overlay’ to their Snapchat message.
These geofilters appear at thousands of places around the world. For instance, while I’m at the ballpark, I can swipe and see a geofilter that adds a fun Oriole Park at Camden Yards overlay to show my Snap followers that I’m at the game. Or, if I keep swiping, I can see overlays from the various cities in Baltimore near the stadium, or even a sponsored overlay from Starbucks reminding me that it’s the first day of fall.
The key with geofilters is that Snapchat won’t let you design them as true “advertising” with any call to action buttons or messages, so you’ve got to be creative. Overlays should be fun and engaging and make users desire your product or service. For example, the Starbucks overlay is very simple, clean and non-intrusive, and on a chilly autumn evening, makes me crave a piping hot cup of pumpkin spiced coffee.
Pro tip: If you’re not the creative type, consider hiring a social media designer to make your geofilter and overlay for you. It’s not hard to find creative freelancers to help you for about $10-$20 dollars per project.
Translating geofilters into higher enrollment engagement and participation
Let’s say you have a 500-employee enrollment where most of the employees are in the same location throughout the day. You can design a simple Snapchat geofilter that covers the geographic square footage of the company’s building for a set timeframe during your enrollment. Don’t worry; Snapchat geofilters are very affordable ways to market right now. The last time I checked, you could cover nearly 200,000 square feet for about 10 hours for less than $40 dollars.
Imagine how useful this could be to boost your enrollment engagement if you knew the demographic of your client happened to be heavily dominated by millennials, who are more likely to be using Snapchat these days than any other social platform. Be creative and make your Geofilter something they want to use and you could ‘go viral’ (that’s a good thing) at your enrollment. Worse case, even if your target audience doesn’t use your filter, it was a small investment to serve as an on-demand reminder that it’s open enrollment time for your client and all of their employees.
Translating geofilters into new recruits
Similar to the enrollment example used earlier — but let’s change the enrollment location to a college internship and career fair — talk about the right demographic to implement Snapchat geofilters. I’ve personally participated in hundreds of internship and career fairs to recruit college kids, and I can assure you that students are never lined up in droves to speak with me or any other insurance company at the fair. Let’s face it, just as I wrote in my June 3, 2015 article, internships and careers in insurance just aren’t very sexy, and if you’re like me, you never dreamed of working in insurance any more than your peers did or these students do now.
Snapchat to the rescue. Here, you have hundreds or even thousands of millennials who will likely be using Snapchat geofilters all day long with their friends. Creating a unique and fun geofilter for your benefits company is an excellent use of your firm’s investment dollars that when done properly, will generate a tremendous ROI in the form of higher engagement levels at your booth. Once they’re at your booth, that’s your problem!
The use of Snapchat to engage and recruit millennials not only shows that you and your company are with the times, but moreover, it makes you more attractive to them as opposed to the non-appealing and boring insurance company that they already perceive and stereotype you as.
Pro tip: Try blanketing a college campus or in the least, near the college dorms, with your custom-made geofilter and overlay. I recommend it at the very beginning of a semester for a couple of set days and times and then again at the end of a semester. I can tell you from years of college recruiting that college kids are typically looking for internships when the semester starts and always looking for internships, and definitely career opportunities, when the semester ends, since they usually have no idea what they’re doing next.
My goal was never to educate you on everything there is to know about Snapchat — heck, we didn’t even discuss creating your own Snapchat ‘Lenses’ that morph your face into various crazy and wacky shapes. Bottom line: Plan your marketing well in advance of your next enrollment and career fair, strategically implement Snapchat with a heavy dose of creativity, and you’ll be watching your profitability soar. Happy Snapping!
Have a question or comment about Snapchat or adding Snapchat to your benefits business? Contact me directly using any of the boring old communication methods you’re accustomed to or why not just Snap me? Snapchat user name: “dsdaddio.” (My Gen-Z daughter helped me pick it and Snapchat doesn’t allow user names to be changed.)
See the original article Here.
Source:
Silverman, E. (2016 October 3). The millennial marketing tactic your competitors aren't using. [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/the-millennial-marketing-tactic-your-competitors-arent-using
Congress moves to push back effective date of new OT rules
Interesting article from HRMorning.com, by Tim Gould. It states that the effective date for new overtime rules could be pushed back from December 2017 to June 2017. This is significant for employers and employees alike, as they might be able to wait essentially another year for the law to pass. It will be beneficial for employers for the law to go into effect in June rather than December.
The efforts to push back the deadline for the new OT rules gained some more momentum this week, as Congress moved to enact a new law to extend the effective date to early next summer.
The House of Representatives passed the Regulatory Relief for Small Businesses, Schools and Nonprofits Act (H.R. 6094) on Sept. 27. The law would move the effective date of the new OT rules from Dec. 1 to June 1, 2017.
A similar measure was introduced in the Senate by Sen. James Lankford (R-OK).
Lankford and Rep. Tim Walberg (R-MI), lead sponsor of the House bill, are hoping the legislation will encourage the administration to delay the rule on its own, according to TheHill.com.
The legislative moves come on the heels of two lawsuits filed earlier in the week.
Twenty-one states joined in a federal lawsuit that charges the Obama administration with overstepping its authority in rewriting the rules, which raise the overtime salary threshold from $23, 600 to $47,500 per year. The suit claims the change will place an undue burden on state budgets.
Just hours after the states’ suit was filed, a similar suit was filed by the U.S. Chamber of Commerce and other business groups. Both lawsuits were filed in the U.S. District Court for the Eastern District of Texas.
There’s no telling what might happen in the two Texas cases, but it’s highly unlikely the Congressional proposal will pass. President Obama has promised to veto the legislation.
See the original article Here.
Source:
Gould, T. (2016 September 30) Congress moves to push back effective date of new OT rules. [Web blog post]. Retrieved from address https://www.hrmorning.com/congress-moves-to-push-back-effective-date-of-new-ot-rules/
How to Hire Accountable People
Here's a good read from The Society for Human Resource Management by Bruce Weinstein
Accountable employees keep their promises, consider the consequences of their actions, take responsibility for their mistakes, and make amends for those mistakes.
The following questions may help you discern a job candidate’s level of accountability.
Describe a situation in which you took responsibility for a mistake you made. What were the consequences to you for doing so?
Brad, a mailroom worker at a large pharmaceutical company, threatened a coworker. He initially denied what he had done but eventually admitted it and added that he hadn’t intended to follow through with the threat. Geri was the HR director at the company. She believed in Brad and rebuffed efforts to have him fired.
Brad agreed to take an anger management course and went on to become Employee of the Month. In Geri’s telling of the story, Brad’s hardscrabble background made owning up to his mistake especially challenging. But he did it, and that’s why Brad is one of the Good Ones—high-character employees who consistently deliver superior results.
For doing right by an employee, Geri is a Good One too!
Have you ever taken responsibility for a mistake that a member of your team made?
One of the people I interviewed forThe Good Ones: Ten Crucial Qualities of High-Character Employees, told me that his boss Harvey took the heat for a mistake that a direct report had made that cost the company a lot of money and aggravation. The magnitude of the problem was so severe that Harvey submitted his resignation to his own boss, Suresh, but Suresh wouldn’t accept it. In fact, he promoted Harvey for doing something that not enough managers do: accept responsibility for something that occurred on their watch.
Walk me through a typical working day.
Asking a job applicant to provide details of a working day is an attempt to discover the person’s work/life balance. The point is to get the applicant’s assessment of how work fits in with his or her life. People with a strong work ethic are accountable people, because they keep their promises to their employers to do their jobs well. They’re neither lazy people nor workaholics.
“But this question is too personal to ask, even if it’s legal to do so,” one might object. Yes, it’s personal, but in an entirely appropriate way. The interviewer is trying to get a fuller sense of the person before him or her. What role does work play in the job candidate’s life? How much does he or she value having a rich and varied personal life? Asking about the candidate’s sex life or religious views are out of bounds; inquiring about work/life balance is not.
This is the second in a series of blog posts on how to hire high-character people. The first one was How to Hire Honest People. Next time, we’ll look at what it means to be a caring person and how to evaluate this quality in job applicants.
See the original article Here.
Source:
Weinstein, B. (2016 September 23). How to hire accountable people. [Web blog post]. Retrieved from address https://blog.shrm.org/blog/how-to-hire-accountable-people