The approaching ACA premium tax moratorium – take 2
In 2010, Congress scheduled the 2014 Affordable Care Act premium tax. Then in 2015 Congress introduced a one-year moratorium on the premium tax that would take place in 2017. This past January, Congress placed another moratorium for the ACA premium tax in 2019. Continue reading to learn more.
In 2010, Congress scheduled the 2014 introduction of the Affordable Care Act premium tax (aka the health insurer fee). Then, via the PACE Act of October 2015, Congress placed a one-year moratorium on this 4% or so premium tax for calendar year 2017. You might recall our ensuing discussion a couple of years ago about how employers sponsoring fully insured medical, dental and/or vision plans could leverage this 2017 moratorium to their advantage.
See also: ACA: 4 things employers should focus on this fall
Meanwhile, did you notice back in January that Congress placed another moratorium on this tax, this time for 2019? To review:
- 2014-2016 – Tax applies
- 2017 – Under moratorium
- 2018 – Tax applies
- 2019 – Under moratorium
- 2020 – Tax scheduled to return
Fortunately, in moratorium years, fully insured medical, dental and vision premiums should be about 4% lower than they would have been otherwise, with these savings passed along proportionately by most employers to their plan participants.
Unfortunately, the budgetary challenge of this on-again-off-again Congressional approach is that when the tax returns, fully insured renewals naturally go up about 4% more than they would have otherwise. For example, an 8% premium increase becomes 12%.
See also: Proposals for Insurance Options That Don’t Comply with ACA Rules: Trade-offs In Cost and Regulation
Another complication occurs as employers annually compare the expected and maximum costs of self-funding their plans versus fully insuring the plans. Because this tax generally does not apply to self-funded plans, in “tax applies” years, any expected savings from self-funding will show about 4% higher than in moratorium years. This math especially complicates the financial comparison of level funding contracts to fully insured contracts (almost all level funding products are self-funded contracts).
With the Jan. 1 fully insured medical, dental and vision renewals beginning to cross our desks, what should employers do?
First, they should review the renewal’s rating methodology page and ensure that this tax was not included in the proposed 2019 premiums. If the rating methodology page was not provided, request it. If this request fails, ask for written confirmation that this tax is not included in your plan’s 2019 premiums.
Second, when comparing 2019 expected and maximum mature self-funded plan costs to 2019 fully insured premiums, extend the analysis to 2020 and project what will happen when this 4% fully insured tax tide returns.
See also: Pre-existing Conditions and Medical Underwriting in the Individual Insurance Market Prior to the ACA
Finally, complicating matters, several states, including Maryland, introduced new or higher state premium taxes for 2019. Ask your benefits consultant if these actions will impact your plans. For Maryland employers sponsoring fully insured plans, for example, the new additional one-year premium tax will essentially cancel out the 2019 ACA premium tax moratorium.
SOURCE: Pace, Z (27 September 2018) "The approaching ACA premium tax moratorium – take 2" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/the-approaching-obamacare-premium-tax-moratorium?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
Here’s how HR pros can breeze through open enrollment
Does open enrollment make your HR department tremble with fear? Open enrollment season is right around the corner and can make the most experienced HR professionals shudder. Read on to learn how your HR department can breeze through open enrollment this year.
Three words have the power to make the most experienced HR professional shudder: open enrollment season.
Open enrollment season is a challenge, no matter how well the HR department prepares. Costs for medical and pharmacy benefits continue to rise, which means there are adjusted employee contributions to present to an audience who’s unlikely to understand the reasoning behind cost increases. There may be new benefits offerings that require employees to pay close attention during the decision-making process. There are open enrollment education campaigns and communications meetings to plan and launch.
Employers with multiple generations of workers must accommodate a wide range of health and welfare benefit needs. New laws (like the federal tax law) plus evolving regulations around benefits add more to HR’s already full plate. (No wonder you don’t have time for lunch.)
But, there’s good news. First, open enrollment is made easier if you plan throughout the year for it. Second, these four tips can help HR professionals make open enrollment much easier.
Review trends and projections ASAP. Focus on the renewal rate long before the renewal date. If your employee benefits renew at the beginning of the year, you may not have received your rate yet. But frankly, by now you should have a very good idea where the rate is projected to land. Reviewing claims and trend data alongside benchmarking and industry analyses throughout the year can help you and your broker project, within a few percentage points, how your renewal rate will increase or decrease.
Your benefits broker should be analyzing your program data on an ongoing basis to estimate the renewal rate and avoid a nasty surprise. The broker should also challenge the first carrier rate offered — there’s almost always room for negotiation. Doing pre-renewal work throughout the year can help you prepare for plan changes and position you to make the best decisions for the organization and employees. It will also help facilitate a smoother open enrollment season.
Keep new benefit options simple. After reviewing benefits and trends, you may find that adding a pre-tax benefit, such as a health savings account, flexible spending account or a health reimbursement account, can help the organization save money while giving employees a way to better plan their healthcare and finances. However, with their alphabet soup acronyms, HSAs, FSAs and HRAs are confusing. Even if you did a whole campaign on the topic for the last open enrollment season, it makes sense to repeat it.
The same goes for voluntary benefits: keep them simple. There is a dearth of voluntary benefits available for a multi-generational workforce. While adding voluntary benefit sounds appealing —especially if your core benefits are changing — which products are right for your organization? Survey your employees to get their feedback; they’ll appreciate that you’re asking for their opinion. Once you tally the feedback, resist the urge to offer a slew of voluntary products. Keeping it simple means adding the one (or a few) that are most desired by your workforce.
Voluntary benefits require significant education and engagement — especially products that are newer to the market. (Student loan debt assistance is a good example.) When it comes to a successful voluntary benefits program, timing is everything. If you plan to add student loan debt repayment, pet insurance, long-term care, or any other new voluntary product, the open enrollment season is not the recommended time to do it. Running a voluntary education and communications campaign and open enrollment off cycle will allow employees to focus on their main menu of options during the open enrollment season, then decide later what they want to add for “dessert.”
Educate. Rinse and repeat. You offer employee benefits to help recruit and retain the best talent. But if your employees don’t understand the core and voluntary benefits you offer, you’re unlikely to increase engagement or retention — and you might even see costs rise.
The health and welfare benefits landscape is changing drastically, which means the onus is on the employer and the HR department to educate the workforce on how the plan is changing (if at all). This means putting decision-support tools, such as calculators, in employees’ hands to help them estimate how much insurance they will need to make the best decision. You could run a whole campaign around that topic.
In addition, try using new methods of communication such as social media messages, text messaging, small-group meetings, your company’s intranet, and one-on-one sessions to help employees avoid mistakes at decision time.
Create a 21st-century experience. Manual benefits enrollment and tracking is so 1999. Moving away from paper-based enrollment will save trees — and possibly your sanity — during the open enrollment season and throughout the year. Benefits administration technology allows employees to ponder their options and enroll at their leisure. A decision-support platform enables better enrollment tracking and eliminates typos and mistakes that can pose major issues for the plan participant and the HR team.
Benefits administration technology provides checks and balances that streamline important tactical functions. Mistakes can put you in a world of hurt when it comes to benefit laws and regulations, such as missing those all-important annual HIPAA and COBRA notifications. You can avoid potential government penalties, fines and employee lawsuits with automatic notifications by the benefits administration platform. Technology can also help you identify ineligible dependents, provide employee data to a COBRA provider if employment ends, interface with your payroll platform — the list is almost endless.
The bottom line: Employees won’t enroll in what they don’t understand — which could lead them to choose a benefits plan that is more expensive, or with fewer options, than what they need. Being prepared for open enrollment season, keeping plans simple, focusing on employee education and communications (and the employee experience) can help mitigate issues for plan participants and HR.
Putting all of your ducks in a row throughout the year will ease headaches during the open enrollment season. You might even be able to take a lunch break.
SOURCE: Newman, H (30 August 2018) "Here’s how HR pros can breeze through open enrollment" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-human-resources-can-breeze-through-open-enrollment?feed=00000152-a2fb-d118-ab57-b3ff6e310000
How to evaluate an applicant tracking system
How are you evaluating applicant tracking systems? Applicant tracking systems (ATS) are supposed to fix any inefficiencies in your recruiting process. Read this blog post to learn more.
Unemployment is at 3.9%, a 17-year low. Competition for talent is fierce, especially when you’re trying to hire sellers, mid-level managers, professional staff and skilled labor. When hiring gets this tough, inefficiencies in your recruiting process that could otherwise be ignored will become code red emergencies.
Applicant tracking systems (ATS) are supposed to fix those problems. Some do; many don’t. To tell the difference, HR professionals must do their research. Here are the three most important questions to ask before you invest in an ATS.
1. Will the ATS help or hurt my employment brand? If you’re not an employee at Google or Apple, you’ve probably daydreamed about having your own nap pod in Silicon Valley or being toted around in an automated car. You know the amazing benefits and the free-spirited culture at these organizations. That’s employment brand. Granted, not every organization can hope for Google-level brand awareness, but every company — for better or worse — has a brand of their own, made up of every interaction and detail of the recruiting and hiring process.
See also: What’s ahead for HR technology?
You should know that most ATS are made by software engineers, not recruiters. The downside there is that most systems don’t deliver a candidate experience designed to convey an impression of what it would be like to work for your company. If your ATS isn’t helping bolster your employment brand, it’s not working hard enough.
To ensure that candidates can get a feel for your company culture before they even submit an application, you’ll want to find an ATS that can offer fully-branded career pages that match your website. This means having the same colors, fonts, brand messaging and imaging will be crucial to your employment brand. And this is only the beginning. Your ideal ATS should allow you to integrate with major job boards and social media platforms (branding 101: Hang out with the cool kids), allow for one click application submission through mobile devices and keep the application process all in one browser No one wants their employment brand to be “clunky” and “unfriendly”.
2. Will the ATS help speed up the process or will it slow us down? Recruiters and hiring managers either love or hate their ATS. There’s not much middle ground. That’s because they often have to invent ingenious workarounds to use the system, which drives them crazy because it’s time wasted.
See also: LinkedIn voice messaging aims to connect HR with job seekers
When searching for the right ATS system, make sure that it can provide customizable email templates for hiring teams during the recruiting process. It’s important to remember that the system should allow you to send those emails in bulk to potential candidates. You need to be able to set reminders and schedule alerts for users to follow up with candidates or completed tasks. This ensures that you’re saving time and no candidate gets lost in the ether.
Know that dashboards are a great way to get a bird’s eye view on the recruiting process but they’re not the end all. Plenty of HCM providers will have flashy demos and dashboards that seem to work flawlessly, but after implementation you’ll be left with a clunky and glitchy product.
To avoid that outcome, ask these questions during your search: Can we see the step-by-step process for reviewing applications, approving candidates, and moving them through interviews? Look beyond the demo screens. You want to see how the system really works, step by step. Can we import and export candidate information? How are potential candidates scored?
3. Does the ATS offer compliance and reporting capabilities? This one’s a biggie. Recruiting and hiring compliance is complex, and so reporting and analytics is a must-have. You need to be able to drive recruiting and hiring decisions in real-time with powerful analytics rather than sloppy excel sheets and poorly filed assessment papers. An ATS will allow you to quickly view the metrics that matter to you, see where your best candidates are coming from, find bottlenecks and catch missed opportunities. With clear and easy to use reporting features that captures all pre-hire compliance data in one place, you’ll never have to worry about fines or tarnishing your reputation.
See also: 7 Ways Employers Can Support Older Workers And Job Seekers
Of course, there’s plenty more you could ask. Implementation, data security, mobile capabilities and ongoing service and support are all tires worth kicking. But this initial list of questions is a great place to start. Finding and hiring top talent requires lightning-fast action and decisions. When you’re shopping for an ATS, however, it pays to slow down long enough to get the facts.
SOURCE: Neese, Bill (12 September 2018) "How to evaluate an applicant tracking system" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-to-evaluate-an-applicant-tracking-system
Do employees know where to go in a health crisis?
Does your organization have a plan for employee health crises? Employees are often confused and unsure about who they should turn to for assistance when they have a health crisis at work. Read on to learn more.
When talking to employers about their disability programs, I often ask, “Who do your employees go to first for assistance when they have a health condition?”
If I ask that question of a direct supervisor, it’s met with a quick response of “Me!”, which is quickly followed by the statement, “My employees know that my door is always open and I’m here to help them!”
Sadly, this is not true. Another insurance company recently surveyed employees who experienced a health condition in the workplace and asked that same question: Who did you go to for assistance? The responses varied.
For example, we found that at midsize companies with 100 to 499 employees, it varied:
· 44% went to their HR manager
· 33% went to their direct supervisor
· 18% went to their HR manager and direct supervisor
· 5% went elsewhere
What this shows is that many employers don’t have a consistent process in place for addressing employees with health conditions. This confusion or misunderstanding about whom to approach for assistance can create an inconsistent process for your clients and their workforce — potentially resulting in a negative experience for employees and lost productivity for employers.
Based on the survey findings, employees who worked with their HR manager tended to have a more positive experience and felt more valued and productive after speaking with them about their health condition.
For instance, 54% of employees felt uncomfortable discussing their health condition with their direct supervisor, versus only 37% of employees who went to their HR manager. In addition, 73% of employees who worked with their HR manager felt they knew how to provide the right support for their condition versus 61% of employees who worked with their direct supervisor.
There are several reasons why working with an HR manager can be more beneficial for employees, and ultimately, your clients. Typically, working with an HR manager can lead to more communication while an employee is on leave. Our research shows employees who worked with an HR manager were more likely to receive communication on leave and returned to work 44% faster than when they worked with their direct supervisor.
HR managers also are usually more aware of available resources and how to connect employees to necessary programs to help treat their condition. HR managers who engaged their disability carriers saw a 22% boost in employees’ use of workplace resources, such as an EAP, or disease management or wellness program, when involved in a return-to-work or stay-at-work plan.
This connection to additional resources is essential, as it can help employees receive holistic support to manage their health condition — whether it’s financial wellness support, connection to mental health resources through an EAP or one-on-one sessions with a health coach. HR managers also are usually able to better engage their disability carrier to provide tailored accommodations, which can help aid in stay-at-work or return-to-work plans.
Providing your client with these findings can help them understand the importance of creating a disability process that puts HR as the main point of contact. Not only does this create a consistent experience that helps provide employees with the support they need, it can improve employee morale and reduce turnover.
SOURCE: Smith, Jeffery (16 August 2018) "Do employees know where to go in a health crisis?" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/do-employees-know-where-to-go-in-a-health-crisis
LinkedIn voice messaging aims to connect HR with job seekers
HR professionals are often looking for more active ways to correspond with potential hires. Continue reading to learn about LinkedIn’s new voice messaging service.
Connecting with job applicants has become more complex and interactive since the days when a single telephone number and e-mail address were displayed at the top of a candidate’s paper resume. HR professionals are continually looking for more active ways to communicate with potential hires.
Now they have another tool to allow them to connect.
LinkedIn announced last week it is rolling out a free messaging service to its 562 million users. The service allows job seekers and HR pros to dictate and send voice messages via the LinkedIn mobile app and receive them via the app or the web.
LinkedIn Messaging users can record and send a voice message up to one minute in length and review the message before hitting the send button.
“People speak about four times faster than they type, making voice messaging great for explaining longer or more complex ideas without the time and involvement of typing and editing a message,” according to LinkedIn. “It’s also helpful for when you’re on the move and don’t have time to stop and type.”
The LinkedIn feature can help HR managers determine if a job candidate is truly interested in the position that is waiting to be filled, according to Kimberly Schneiderman, senior practice development manager for RiseSmart, an outplacement services provider with headquarters in San Jose, California.
“People like to hear tone of voice and their energy from both the job seeker and job candidate side,” she says. “HR wants to hear that the candidate is interested and is eloquent — and oftentimes that comes through verbally,” she says.
LinkedIn agrees, saying that “it’s easier for your tone and personality to come through, which can sometimes get lost in translation in written communications.”
See also: Smiley faces and thumbs up? Texting, emojis enter the job interview
With unemployment at a record low in the U.S., employment experts agree that this is a job seeker’s market. Using social media for job hunting is now the norm. According to business consultant and author Peter Economy, 79% of job seekers use social media in their job search, and this number jumps to 86% for younger job hunters. He adds that 45% of job seekers use their mobile devices to search for a job at least once a day.
But not all new gadgets take hold in the HR world, warns Schneiderman, who says she has seen innovations like video resumes that were proposed in the 1990s fizzle out. “Now we see video interviews,” she says.
“Any tool can be useful so long as people use it,” she says. “We see an ebb and flow with these new tools and some stick and some don’t.”
LinkedIn’s voice messaging feature is available on its app on the iOS and Android platforms. It will be available globally to all members in the late summer.
SOURCE: Albinus, P (9 August 2018) "LinkedIn voice messaging aims to connect HR with job seekers" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/linkedin-voice-messaging-technology-connects-hr-job-seekers?tag=0000015f-0970-de2a-a7df-8f7ee7d20000
12 Ways to Save on Health Care
Managing your money is tough, saving for your health care is pretty rough too. These tips and tricks will assist you in managing your medical finances for the future.
We all know paying for health care is a challenge, with or without insurance, amid rising copays, deductibles, and premiums. But there are ways to hold down the costs that can come in handy now, but also as the Affordable Care Act undergoes whatever transformation (or replacement) the Trump administration comes up with.
The Huffington Post reports that, despite the numerous obstacles to cutting costs on health care for individuals —insured or not — there are also numerous ways to do just that, whether it takes due diligence on the patient’s part or having conversations with doctors, hospitals and insurers — even drug companies — about price.
While such tactics may not exactly amount to haggling, negotiating skills can’t hurt, and determination and perseverance are definite assets when it comes to finding the best prices or convincing medical entities to give you a better deal.
Plenty of other sources have good suggestions for slicing medical expenses, whether for prescription drugs, doctor and dentist visits, or hospital care. In fact,
Here’s a look at 12 strategies and suggestions that can end up saving you beaucoup bucks for care and treatment.
12. Check the internet
You would be amazed at how many tips there are online to help you cut the cost of getting — or staying — healthy.
One of the first things you should do is to check out the internet, where you’ll find not just help from the Huffington Post but also from such prominent sources as Kiplinger, Investopedia, Money, CBS and other news stations — and checking them out can have the advantage of providing you with any new suggestions arising out of changes in the law or in the medical field itself. And definitely compare prices on the Internet for procedures and prescriptions before you do anything else.
11. Skip insurance on your prescriptions
Not all the time, and not everywhere, but you could end up getting your prescriptions filled for less money if you don’t go through your medical insurance.
Costco, Walmart, and other retailers with pharmacies often offer cut-to-the-bone prices on generics, some prescription drugs and large orders (say, a 90-day supply of something you take over an extended period). Costco will even provide home delivery, and fill your pets’ prescriptions, too.
Then there are coupons. GoodRx will compare prices for you, provide free coupons you can print out and take to the pharmacy and save, as the website says, up to 80 percent — without charging a membership fee or requiring a sign-up.
10. Talk to your doctor
And ask for samples and coupons. Especially if you’ve never taken a particular drug before, let your doctor know you want to try out a sample lest you have an adverse reaction to the medication and get stuck with 99 percent of your prescription unusable.
Pharmaceutical reps, of course, provide doctors with samples, but they often give them coupons, too, lest you suffer sticker shock in the pharmacy and walk away without filling the prescription. So ask for those too. Doctors can be more proactive about samples than coupons, but remember to ask for both. After all, it’s your money.
9. Talk directly to the drug companies
So you’ve tried to get a brand-name drug cheaper, but coupons don’t help enough and there’s no generic available (or you react badly to it). Don’t stop there; go directly to the source and ask about assistance programs the pharmaceutical company may offer.
Such programs can be need-based, but not always — sometimes it’s a matter of filling out a little paperwork to get a better deal. The Huffington Post points out dialysis drug Renvela can go for several hundred dollars, but drops to $5 a month if the patient completes a simple form.
8. Haggle
Before you go in for a procedure (assuming it’s voluntary), or when the bills start to come in, talk to both the doctors (is there ever only one?) and the hospital and ask for a discount — or a reduction in your bill for paying in cash or for paying the whole amount. Be polite, but stand your ground and negotiate for all you’re worth.
A CBS report cites Consumer Reports as having found that only 31 percent of Americans haggle with doctors over medical bills but that 93 percent of those who did were successful — with more than a third of those saving more than $100. Just make sure you’re talking with the right person in the office — the one who actually has the authority to issue those discounts. And get it in writing.
7. What about an HMO?
If you’re not devoted to your doctor, opting for an HMO can save you money — although it will limit your choices of doctors and hospitals. Still, coverage should be cheaper.
If you’re generally in good health, choosing a plan — HMO or not — that restricts your choices of doctors and hospitals can save you money. And having the flexibility to go see the top specialist in his field won’t necessarily be your top priority unless you have specific health conditions for which you really need specialized care. In that case, you might prefer to hang on to your right of choice, despite the expense.
6. Ask for estimates
Yes, just the way you would from your mechanic or plumber. Ask the doctor/hospital/etc. what the charge is for whatever it is you’re having done, whether it’s a hip replacement or a deviated septum. You will already have checked out the costs for these things on the Internet, of course, so that you have an idea of standard pricing — and if your doctor, etc. comes in substantially higher, look elsewhere.
And while you’re at it, ask whether the doctor uses balance billing. If so, run, do not walk, in the opposite direction and find a doctor who doesn’t. Otherwise, particularly if the doctor’s fees are high, you’ll find yourself paying the balance of his whole bill once the insurance company kicks in its share.
Normally the doctor and insurer reach an agreement that eliminates whatever is left over after you pay your share and the insurer pays its share. But with balance billing, whatever is left over becomes your responsibility — and you’ll be sorry, maybe even bankrupt. By the way, balance billing is actually illegal in some states under some circumstances, so check before you pay.
5. Network, network, network
Always, always ask if the doctor is in network, and if the lab where your blood work goes and the specialist he recommends and the emergency room doctor and surgeon are also in network. Of course you can’t do this if it’s a true emergency, but if you learn after the fact that you were treated by out-of-network doctors at an in-network hospital, see whether your state has any laws against, or limits on, how much those out-of-network practitioners can charge you.
According to a Kaiser Family Foundation study, close to 70 percent of with unaffordable out-of-network medical bills were not aware that the practitioner treating them was not in their plan’s network at the time they received care.
4. Check your bill with a fine-toothed comb
Not only should you check to see whether your bill is accurate, you should also read up on medical terminology so you know whether you’re being billed for medications and procedures you actually received.
Not only do billing offices often mess up — a NerdWallet study found that 49 percent of Medicare medical claims contain medical billing errors, which results in a 26.4 percent overpayment for the care provided, but they can also get a little creative, such as billing for individual parts of a course of treatment that ought to be billed as a single charge. It adds up. And then there are coding errors, which can misclassify one treatment as another and up the charge by thousands of dollars.
3. Get a health care advocate
If you just can’t face fighting insurers or doctors’ offices, or aren’t well enough to fight your own battles, consider calling in a local professional health care advocate. They’ll know what’s correct, be able to spot errors, and can negotiate on your behalf to contest charges or lower bills.
For that matter, if you call them in ahead of time for a planned procedure or course of treatment, they can advise you about care options in your area and maybe forestall a lot of problems.
2. Go for free, not broke
Lots of places offer free flu shots and screenings for things like blood pressure and cholesterol levels — everyplace from drugstores to shopping centers, and maybe even your place of work.
Senior centers do too, but if you can’t find anything locally check out places like Costco and Sam’s Club, which do screenings for $15; that might even be cheaper than your copay at the doctor’s office.
1. Deals can make you smile
Whether you have dental insurance or not, it doesn’t cover much. So go back to #8 (Haggle) to negotiate cash prices with your dentist for major procedures, and take advantage of Living Social or Groupon vouchers to get your routine cleanings and exams with X-rays. The prices, says HuffPost, “range from $19 to $50 and are generally offered by dentists hoping to grow their practices.”
SOURCE:
Satter, M (2 June 2018) "12 ways to save on health care" [Web Blog Post]. Retrieved from https://www.benefitspro.com/2017/02/07/12-ways-to-save-on-health-care?t=Consumer-Driven&page=6
3 ideas to ease the transition to a high-deductible world
With high-deductible health plans rising, employers may not be thinking about the drastic changes happening in the future. Here are some tips to make a transition into a high deductible industry painless.
We’re all familiar with the necessary evils of today’s society: paying taxes, going to the dentist and sitting in rush-hour traffic. Now, there’s another one to add to the list — high deductible health plans (HDHPs). They’re on the rise due to increasingly unmanageable health care costs caused by factors such as increased carrier and hospital consolidation, unregulated pharmaceutical prices, and a lack of financial awareness among medical providers.
In response, prudent employers who want to continue providing health benefits but can’t keep up with the costs are turning to HDHPs to share the financial burden with employees and encouraging those employees to become more disciplined shoppers. This is predictably being met with resistance.
But there’s a more urgent matter at hand: until we find a way to flip the health-care system on its head, we’re anticipating a future where networks get narrower and significantly limit options and deductibles rise to catastrophic heights.
Employers may not be thinking ahead for these drastic changes, which is why brokers can be instrumental in helping clients guide their employees toward the necessary mental and financial preparations. Here are a few ideas to get them started.
1. Shift gears to plan beyond the calendar year.
For most, health care is an infrequent experience that’s handled reactively: you get sick, you go to the doctor, your insurance foots the bill. However, now that employees are on the hook for potentially thousands of dollars, it’s crucial that they plan ahead.
To facilitate this shift in mindset, employers should encourage employees to:
- Utilize a health savings account (HSA):When it comes to HSAs, people tend to fall into one of two schools of thought: “HSAs are a silver bullet” or “HSAs are a terrible excuse by politicians to allow the existence of HDHPs.” Rarely is a situation so black and white, and this one is no exception. HSAs aren’t the best choice for everyone. Certain demographics can’t afford to juggle the high costs of health care (and life) while also contributing funds to an account. However, it’s important to keep in mind that as costs continue to rise, more people will be pushed above the HSA qualification line and having an account may be the only life raft available when drowning in high deductibles — a trend we’re already starting to see.In an ideal world, the HSA wouldn’t exist. Out-of-control health care costs bear the blame for solutions like HDHPs — and the HSA is our consolation prize. The reason I advocate the utilization of these accounts for long-term planning is because they are the only health care benefit we have that encourages people to think beyond 12 months. Unlike the flexible spending account (FSA), the money in an HSA rolls over every year and grows over time, so it lets people save for years down the road (maybe when the pediatrician bills pile up, or you finally have that major surgery) vs. scrambling to spend their funds before the end of the year. Also, if an employer is contributing to an employee’s HSA, it’s leaving money on the table not to sign up for an account.
- Shop for the best “deals”:Unless someone is a frequent flyer in the health care system, they might brush off shopping for healthcare since it seems like a lot of effort for a single doctor’s visit. However, considering the fact that the cost of an ACL surgery can vary as much as $17,000, those numbers certainly add up over time. (Even more so if a patient fails to find care that’s in network.) Helping employees understand this concept, and pairing it with an easy-to-use transparency solution, can save them tons of money in the long run — especially if the cost savings from each doctor’s visit are deposited into an HSA for future use.
2. Recognize that options are still available.
I’m not going to try to frame high deductibles in a positive light. It’s not the ideal situation for consumers or employers. But sometimes, just knowing there are options in a seemingly bleak situation can provide temporary relief. Here are some tips for employers to share with employees when they’re frustrated about their HDHPs:
- Ask questions:Employees shouldn’t be afraid to ask questions. Healthcare is known for being convoluted, so it’s likely they’re not alone in any confusion they experience. They should start with health insurance and take time with the HR manager to understand the specifics of their coinsurance, copays, deductibles, and benefits so they’re aware of all their options, such as free preventive services. Another great place for questions is at the doctor’s office. Asking about and negotiating costs (yes, you can do that!) can have huge payoffs — Consumer Reports found that only 31 percent of Americans haggle with doctors over medical bills but that 93 percent of those who did were successful, with more than a third of those saving more than $100.
- Stay educated:“Education” can be a tired term for brokers and employers. Employees never seem to read the emails and collateral materials that teams painstakingly curate each year. While disheartening, I think the focus on education is a long but ultimately rewarding process. Consider the 401(k). These plans struggled through the recessions in the early 2000s, but through constant behavioral reinforcement (helped largely by policies such as The Pension Protection Act, which made it easier for companies to automatically enroll their employees in 401(k) plans) and continued efforts by employers, 401(K)s bounced back and hold $4.8 trillion in assets today.The same lesson can be applied to your education efforts as well. That is, eventually the education will stick. So help create a new ecosystem for employees to navigate by getting timely information and resources out there about maximizing HDHPs and utilizing HSAs.
3. Stay optimistic because change is coming.
This point is a bit more abstract. Worrying about health care costs is exhausting, and things are likely to get worse before they get better. However, there’s been a lot of news in the health care space that should bring a glimmer of optimism.
For instance, we heard about the partnering of three industry powerhouses to create a new health care company for their employees. It’s been fascinating to see how much chatter this announcement has already generated and will likely keep traditional employer health care vendors on their toes.
While the trend of employers building coalitions to tackle health care costs is nothing new and it’s too early to tell how successful this initiative will be, the bigger point is that this is a strong signal that change is desperately needed. More and more companies — regardless of what industry they’re in — are starting to realize that they’re all in the business of health care. And as we gain power in numbers, I believe we will build the momentum to create some serious change.
It’s tough to win in today’s health care world, and it’s likely going to get even more challenging over the next few years. But if brokers and employers can provide the right level of guidance, education, and resources, they can help employees better mentally and financially manage their high-deductible futures.
SOURCE:
Vivero, D (2 July 2018) "3 ideas to ease the transition to a high-deductible world" [Web Blog Post]. Retrieved from https://www.benefitspro.com/2018/02/08/3-ideas-to-ease-the-transition-to-a-high-deductibl/
3 simple ways to get motivated
Getting and staying motivated can be tough, whether you are coming back from vacation, dealing with something you’d rather avoid or getting focused on a Monday. Not every day will be super productive, and there is no sense in punishing yourself because of it, but there are three great ways to get back on track.
One way is to take the simplest task and make it even simpler. For example, if you have to write an email, then focus on doing the first sentence. Make writing the first sentence your goal. It may feel ridiculously easy, which is the point: Once you write that first sentence, then you will likely have the confidence to begin on the second sentence, and so on.
Another approach is to think about being in bed, tonight, right before you go to sleep. What did you accomplish today? Did you feel good about what got done? What do you wish you had gotten done so you wouldn’t be worried about doing it tomorrow? Now you can stop imagining: It’s wonderful that you still have the day ahead of you and you can get things done now.
Lastly, work on your next task for only five minutes. It will be a focused five minutes, which means no multitasking. Set an alarm as necessary. Chances are that the five minutes will go by quickly and, if you like, you can set the alarm for another five minutes.
Our motivation is usually hampered by either inertia, like when we have taken a break, or by timidity, like when we are intimidated by a major goal. By using these three methods, you can move towards success and focus on the next small step towards your big successful goal.
Read the article.
Source:
Brown D. (21 February 2018). "3 simple ways to get motivated" [Web Blog Post]. Retrieved from address https://workwell.unum.com/2018/02/3-simple-ways-to-get-motivated/
5 things to know about this year’s flu
The nation is having a Terrible, Horrible, No Good, Very Bad flu season.
Flu is widespread in 46 states, according to reports to the U.S. Centers for Disease Control and Prevention (CDC).
Nationally, as of mid-December, at least 106 people had died from the infectious disease.
In addition, states across the country are reporting higher-than-average flu-related hospitalizations and emergency room visits. Hospitalization rates are highest among people older than 50 and children younger than 5.
In California, which is among the hardest-hit states, the virus struck surprisingly early this season. The state’s warmer temperatures typically mean people are less confined indoors during the winter months. As a result, flu season usually strikes later than in other regions.
Health experts aren’t sure why this season is different.
“We’re seeing the worst of it right now,” said Dr. Randy Bergen, a pediatrician who is leading Kaiser Permanente-Northern California’s anti-flu effort. “We’re really in historic territory, and I just don’t know when it’s going to stop.” (Kaiser Health News, which produces California Healthline, is not affiliated with Kaiser Permanente.)
Here are five things you should know about this flu season:
1. It’s shaping up to be one of the worst in recent years.
The H3N2 influenza A subtype that appears to be most prevalent this year is particularly nasty, with more severe symptoms including fever and body aches. Australia, which U.S. public health officials follow closely in their flu forecasting — in part because their winter is our summer — reported a record-high number of confirmed flu cases in 2017. Another influenza B virus subtype also is circulating, “and that’s no fun, either,” Bergen said.
Flu season in the U.S. typically starts in October and ends in May, peaking between December and February.
2. This season’s flu vaccine is likely to be less effective than in previous years.
U.S. flu experts say they won’t fully know how effective this season’s vaccine is until the it’s over. But Australia’s experience suggests effectiveness was only about 10 percent. In the U.S., it is 40 to 60 percent effective in an average season. Vaccines are less protective if strains are different than predicted and unexpected mutations occur.
3. You should get the flu shot anyway.
Even if it is not a good match to the virus now circulating, the vaccine helps to ease the severity and duration of symptoms if you come down with the flu.
Children are considered highly vulnerable to the disease. Studies show that for children a shot can significantly reduce the risk of dying.
High-dose vaccines are recommended for older people, who also are exceptionally vulnerable to illness, hospitalization and death related to the flu, according to the CDC.
“Some protection is better than no protection,” Bergen said, “but it’s certainly disappointing to have a vaccine that’s just not as effective as we’d like it to be.
Shots may still be available from your doctor or local health clinic, as well as at some chain drugstores. Check the Vaccine Finder website for a location near you.
4. Basic precautions may spare you and your family from days in bed.
As much as possible, avoid people who are sick. Wash your hands frequently and avoid touching your mouth, nose and eyes.
Masks aren’t particularly effective in keeping you from catching the flu, although they may help keep sick people who wear them from spreading their germs further.
If you are sick, cover your cough and stay home from work if you can, Bergen said. Remaining hydrated, eating nutritious foods and exercising can also help strengthen your immune system.
Because elderly people are so vulnerable to the flu, some nursing homes and assisted living facilities may limit visitors and resident activities, depending on the level of illness.
5. Don’t mistake flu symptoms for those of a common cold.
The hallmarks of flu are fever and body aches that accompany cough and congestion, Bergen said.
If you feel as if you’re having trouble breathing, or if your fever can’t be controlled with medication like Tylenol, check with your doctor. It’s even more important for patients to see a doctor if they have a chronic medical condition like diabetes or heart disease, or if they are young or elderly.
Kaiser Permanente doctors now are being advised to prescribe antiviral drugs like Tamiflu — given as a pill or, for kids, an oral suspension — even without a lab test for influenza, Bergen said. According to a report in the Los Angeles Times, however, Tamiflu supplies are running low.
And Bergen cautioned that these medications are only partly effective, reducing the time of illness by just a day or two.
Read the original article.
Source: Kaiser Health News (22 January 2018). "5 things to know about this year’s flu" [Web blog post]. Retrieved from address https://workwell.unum.com/2018/01/5-things-know-years-flu/
Miserable Modern Workers: Why Are They So Unhappy?
It's a new year, which means working to improve the bad. What's so bad about today's work environment? Employees are more disengaged than ever. So, how can employers fix that? Let's take a look at the basic facts and possible first steps.
Today's workers are disengaged. They lack motivation. They're bored. They're stressed. They're burned out.
Researchers at Gallup, Randstad and Mercer conducting survey after survey have come to these conclusions. In fact, these surveys seem to paint an increasingly bleak picture of life at work.
At a time when technology has arguably made the workplace more efficient than ever, laws are protecting employees better than ever, and companies are offering benefits perhaps more generous than ever, why would U.S. workers be so checked out?
"One could argue that today's employees are as equally stressed as their predecessors, but for different reasons," said Jodi Chavez, president of Atlanta-based Randstad Professionals, a segment of Randstad US, which provides finance, accounting, HR, sales, marketing, legal staffing and recruitment services. "They fear having their jobs outsourced to another country, have anxiety about how best to work alongside new technologies such as automation and robotics, have increased financial pressures with rising student loan debt and late retirement, and feel pressure to be 'on' and answering e-mails 24/7."
Disengagement Can Lead to Bad Habits
Gallup has been measuring employee engagement in the United States since 2000 and finds that less than one-third of U.S. workers report that they are "engaged" in their jobs. Of the country's approximately 100 million full-time employees, 51 percent say they are "not engaged" at work—meaning they feel no real connection to their jobs and tend to do the bare minimum. Another 17.5 percent are "actively disengaged"— meaning they resent their jobs, tend to gripe to co-workers and drag down office morale. Altogether, that's a whopping 68.5 percent who aren't happy at work.
Recently, Randstad US found in its own survey that disengagement has led to some bad habits among the nation's workers: Unhappy workers admitted that while on the job, they drank alcohol (5 percent), took naps (15 percent), checked or posted on social media (60 percent), shopped online (55 percent), played pranks on co-workers (40 percent), and watched Netflix (11 percent).
"Some employers may see checking social media a few times a day as a small offense, while napping on the job or watching Netflix could be considered serious safety hazards for other employers," Chavez said. "Really, we found that these results are part of a bigger story—a trend of burnout and job dissatisfaction. Burnout is a natural human reaction to stressful environments, or long workdays, but it may also be a sign that an employee isn't the right fit for a position. It's important for employers to be aware of these habits, evaluate if they're a sign of a larger issue and identify what they can do to help employees feel appreciated."
Even if today's workers are no more disengaged than workers of decades past, three things may be making the "commentary on disengagement louder," said Ken Oehler, global culture and engagement practice leader with London-based Aon:
Scrutiny. "Management focus on people and talent is much greater now than in the past," he said. "Three or four decades ago, studies could not find a link between job satisfaction and performance, and the concept of engagement did not even exist. There are now many studies establishing the link between engaged employees and better performance. With this we have seen a great increase in the measurement and thirst for understanding [of] how to maximize the employee experience, employee engagement and employee performance. So when the rate of disengaged employees does not seem to change much, management becomes dissatisfied and wants to know what can be done."
Expectations of work. "Employee expectations about work are dramatically different than a few decades past," he said. "Few workers sign up thinking they will be employed by the same company for life and be rewarded with a nice pension. Most Millennials don't want that. They thirst for development, advancement, movement, impact and purpose. So, when that doesn't happen, [discontent] can get loud."
Rate of change. The constant technological demands and steep learning curves of many modern jobs can overwhelm the senses, he said. "I believe many workers are worried about keeping up with this rate of change and having the relevant skills required for the future. Companies and employees need to be smarter and faster, and the technology involved in work is largely unchanged or inadequate. This is really stressful when the need and rate of change increases and the technology, tools and processes do not support this."
Are Small 'Fixes' Enough?
The "fixes" that employee engagement experts often suggest to make workers happier on the job, however, may not be making much of a difference—at least not if recent surveys measuring employee satisfaction are to be believed.
"Will simple things like getting a good night's sleep, asking for help or finding a creative outlet transform every employee's attitude?" asked Chavez. "No. But these small fixes are easy, actionable things that people can try if they're truly stressed, exhausted or having external problems, as these changes can boost productivity and overall happiness at work. If not, then maybe the employee needs to do some deeper exploring as to whether the job, employer or even career are a good fit."
The pressures put on modern workers to "do more with less" may be the result of business shareholders who—having grown cautious following the Great Recession—aren't willing to expand budgets to hire more people at companies or better compensate those already there, Chavez and Oehler said. Worker pay has remained relatively flat since the recession, with nominal annual increases even though the economy and markets are said to be booming.
"Ensuring that you get pay right is critical," Oehler said. "Perceptions of pay inequity will erode trust and engagement."
Said Chavez: "It's true that wages have remained relatively flat for the last several years. At the same time, there's more competition for top, skilled talent, so employers are becoming more creative when it comes to benefits. These benefits can come in many different forms—student loan benefits, access to telemedicine, stipends for commuting, flexible hours and remote work arrangements. While some may prefer higher salary over increased vacation time, some value robust learning and development programs. As for what makes work gratifying, every employee is different."
Source:
Wilkie D. (2 November 2017). "Miserable Modern Workers: Why Are They So Unhappy?" [web blog post]. Retrieved from address https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/employee-engagement-.aspx