Workers Willing to Leave a Job if Not Praised Enough

Praising your employees on a frequent basis is a great way to increase employee engagement and productivity. Take a look at this article by Brookie Madison from Employee Benefit News on how employees are more likely to leave a job if they do not feel like they're getting enough praise.

Employers may be spending more than $46 billion a year on employee recognition, reviews and work anniversaries, but recent research shows it could be worth the investment to commit even more to the effort.

Although more than 22% of senior decision-makers don’t think that regular recognition and thanking employees at work has a big influence on staff retention, 70% of employees say that motivation and morale would improve “massively” with managers saying thank you more, according to a Reward Gateway study.

By not receiving regular feedback on their performance, employees feel they are not progressing at work, says Glenn Elliott, CEO of Reward Gateway. In fact, nearly one in two employees reported they would leave a company if they did not feel appreciated at work, the study found.

This is particularly true of millennials, Elliott says, who make up the largest segment of the workforce, according to the U.S. Bureau of Labor Statistics. To this generation, “Saying thank you for good work or good behavior shows you values those things and want to see more of that behavior,” he says.

Overall, employees want praise and recognition more frequently than at annual awards ceremonies. Although 90% of senior decision-makers believe they prioritize showing appreciation and thanks in a timely way, more than 60% of workers would like to see their colleagues’ good work praised more frequently by managers and leaders.

“On average, businesses spend 2% on recognition,” says Elliott. “Businesses can increase effects of recognition by moving money from tenure-based to valued- and behavior-based recognition.”

More than eight out of 10 workers (84%) say praise should be given on a continual, year-round basis.

The Reward Gateway study polled 500 workers and 500 decision-makers in the United States, United Kingdom and Australia.

See the original article Here.

Source:

Madison B. (2017 June 11). Workers willing to leave a job if not praised enough [Web blog post]. Retrieved from address https://www.benefitnews.com/news/workers-willing-to-leave-a-job-if-not-praised-enough


HSAs vs. HRAs: Things Employers Should Consider

Great article from our partner, United Benefit Advisors (UBA) by Bob Bentley on what employers should know about choosing between HSAs and HRAs.

With health care costs and insurance premiums continuing to rise, employers are looking for ways to reduce their insurance expenses. That usually means increasing medical plan deductibles. According to the latest UBA Health Plan Survey, the average in-network single medical plan deductible increased from $2,031 in 2015 to $2,127 in 2016. But shifting costs to employees can be detrimental to an employer’s efforts to attract and retain top talent. Employers are looking for solutions that reduce their costs while minimizing the impact on employees.

One way employers can mitigate increasing deductibles is by packaging a high-deductible health plan with either a health savings account (HSA) contribution or a health reimbursement arrangement (HRA). Either can be used to bridge some or all of the gap between a lower deductible and a higher deductible while reducing insurance premiums, and both offer tax benefits for employers and employees. However, there are advantages and disadvantages to each approach that employers need to consider.

Health Savings Account (HSA) General Attributes

  • The employee owns the account and can take it when changing jobs.
  • HSA contributions can be made by the employer or employee, subject to a maximum contribution established by the government.
  • Triple tax advantage – funds go in tax-free, accounts grow tax-free, and withdrawals are tax-free as long as they are for qualified expenses (see IRS publication 502).
  • Funds may accumulate for years and be used during retirement.
  • The HSA must be paired with an IRS qualified high-deductible health plan (QHDHP); not just any plan with a deductible of $1,300 or more will qualify.

HSA Advantages

  • Costs are more predictable as they are not related to actual expenses, which can vary from year to year; contributions may also be spread out through the year to improve cash flow.
  • Employees become better consumers since there is an incentive to not spend the money and let it accumulate. This can result in an immediate reduction in claims costs for a self-funded plan.
  • HSAs can be set up with fewer administration costs; usually no administrator is needed, and no ERISA summary plan description (SPD) is needed.
  • The employer is not held responsible by the IRS for ensuring that the employee is eligible and that the contribution maximums are not exceeded.

HSA Disadvantages

  • Employees cannot participate if they’re also covered under a non-qualified health plan, which includes Tricare, Medicare, or even a spouse’s flexible spending account (FSA).
  • Employees accustomed to copays for office visits or prescriptions may be unhappy with the benefits of the QHDHP.
  • IRS rules can be confusing; IRS penalties may apply if the employee is ineligible for a contribution or other mistakes are made, which might intimidate employees.
  • Employees may forgo treatment to avoid spending their HSA balance or if they have no HSA funds available.

Health Reimbursement Arrangement (HRA) General Attributes

  • Only an employer can contribute to an HRA; employees cannot.
  • The employer controls the cash until a claim is filed by the employee for reimbursement.
  • HRA contributions are tax deductible to the employer and tax-free to the employee.
  • To comply with the Patient Protection and Affordable Care Act (ACA), an HRA must be combined with a group medical insurance plan that meets ACA requirements.

HRA Advantages

  • HRAs offer more employer control and flexibility on the design of the HRA and the health plan does not need to be HSA qualified.
  • The employer can set it up as “use it or lose it” each year, thus reducing funding costs.
  • An HRA is compatible with an FSA (not just limited-purpose FSA).
  • Depending on the employer group, HRAs can sometimes be less confusing for employees, particularly if the plan design is simple.
  • HRA funds revert to the employer when an employee leaves – which might increase employee retention.

HRA Disadvantages

  • Self-employed individuals cannot participate in HRA funding.
  • There is little or no incentive for employees to control utilization since funds may not accumulate from year to year.
  • More administration may be necessary – HRAs are subject to ERISA and COBRA laws.
  • HRAs could raise HIPAA privacy concerns and create the need for policies and testing.

Both HSAs and HRAs can be of tremendous value to employers and employees. As shown, there are, however, a number of considerations to determine the best program and design for each situation. In some cases, employers may consider offering both, allowing employees to choose between an HSA contribution and a comparable HRA contribution, according to their individual circumstances.

For a comprehensive chart that compares eligibility criteria, contribution rules, reimbursement rules, reporting requirements, privacy requirements, applicable fees, non-discrimination rules and other characteristics of account-based plans, request UBA’s Compliance Advisor,  “HRAs, HSAs, and Health FSAs – What’s the Difference?”.

For information on modest contribution strategies that are still driving enrollment in HSA and HRA plans, read our breaking news release.

For a detailed look at the prevalence and enrollment rates among HSA and HRA plans by industry, region and group size, view UBA’s "Special Report: How Health Savings Accounts Measure Up", to understand which aspects of these accounts are most successful, and least successful.

See the original article Here.

Source:

Bentley B. (2017 May 12). HSAs vs. HRAs: things employers should consider[Web blog post]. Retrieved from address http://blog.ubabenefits.com/hsas-vs.-hras-things-employers-should-consider


HSAs and Employer Responsibilities

Do you know all the responsibilities an employer will face when dealing with HSAs? If not, take a look at this great article from our partner, United Benefit Advisors (UBA) by Vicki Randall and find out about all the HSA responsibilities facing employers.

It’s no secret that one of the primary agenda items of the new Republican administration is to repeal the Patient Protection and Affordable Care Act (ACA) and to sign into law a plan that they feel will be more effective in managing health care costs. Their initial attempt at a new plan, called the American Health Care Act (AHCA), included an increased focus on leveraging health savings accounts (HSAs) to accomplish this goal. As the plan gets debated and modified in Congress, we do not know whether the role of HSAs will be expanded or not, but they will continue to be a part of the landscape in some shape or form.

HSAs first came into existence in 2003 and they have been gaining momentum as a way to deal with increasing health care costs ever since. If you, as a plan sponsor, do not already offer a health plan compatible with an HSA, chances are you’ve at least discussed them during your annual plan reviews. So, what exactly is an HSA and what is an employer’s responsibility relating to one?

An HSA is a tax-favored account established by an individual to pay for certain medical expenses incurred by account holders and their spouses and tax dependents. Anyone can make a contribution to an eligible Individual’s HSA. This includes the individual’s employer. However, if employers contribute to participant HSAs, employers must:

  1. Ensure their health plan meets high-deductible health plan (HDHP) requirements,
  2. Determine eligibility,
  3. Establish contribution method,
  4. Provide W-2 reporting, and
  5. Confirm employer involvement in the HSA does not create an ERISA plan, or cause a prohibited transaction.

High-Deductible Health Plan Requirements

Plan sponsors should make sure their plan meets certain HDHP requirements before making contributions to participants’ HSAs.

Characteristics of an HDHP

An HDHP is a health plan that has statutorily prescribed minimum deductible and maximum out-of-pocket limits. The limits are adjusted annually for inflation.

For example, for 2017, the limits for self-only coverage are:

  • Minimum Deductible: $1,300
  • Maximum Out-of-Pocket: $6,550

The limits for family coverage (i.e., any coverage other than self-only coverage) are twice the applicable amounts for self-only coverage. The limits are adjusted annually for inflation and, for a given year, are published by the IRS no later than June 1 of the preceding year. In addition, an HDHP cannot pay any benefits until the deductible is met. The only exception to this rule is benefits for preventive care.

Eligibility

Eligible Individuals can make or receive contributions to their HSAs. A person is an eligible individual if he or she is covered by an HDHP and is not covered by any other plan that pays medical benefits, subject to certain exceptions.

Employer Contribution Methods

Employers that contribute to the HSAs of their employees may do so inside or outside of a cafeteria (Section 125) plan. The contribution rules are different for each option.

Contributions Outside of a Cafeteria Plan

When contributing to any employee’s HSA outside of a cafeteria plan, an employer must make comparable contributions to the HSAs of all comparable participating employees.

Contributions Made Through a Cafeteria Plan

HSA contributions made through a cafeteria plan do not have to satisfy the comparability rules, but are subject to the Section 125 non-discrimination rules for cafeteria plans. HSA employer contributions will be treated as being made through a cafeteria plan if the cafeteria plan permits employees to make pre-tax salary reduction contributions.

Employer HSA Contribution Amounts

Contributions from all sources cannot exceed certain annual limits prescribed by the IRS. Although employer contributions cannot exceed the applicable limits, employers are only responsible for determining the following with respect to an employee’s eligibility and maximum annual contribution limit on HSA contributions:

  • Whether the employee is covered under an HDHP or low-deductible health plan, or plans (including health flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) sponsored by that employer; and
  • The employee’s age (for catch-up contributions). The employer may rely on the employee’s representation as to his or her date of birth.

When employers contribute to the HSAs of their employees and retirees, the amount of the contribution is excludable from the eligible individual’s income and is deductible by the employer provided they do not exceed the applicable limit. Withholding for income tax, FICA, FUTA, or RRTA taxes is not required if, at the time of the contribution, the employer reasonably believes that contribution will be excludable from the employee’s income.

Employer Reporting Requirements

An employer must report the amount of its contribution to an employee’s HSA in Box 12 of the employee’s W-2 using code W.

Design and Operational Considerations

Employers should make sure that their involvement in the HSA does not create an ERISA plan, or cause them to become involved in a prohibited transaction. To ensure that contributions will not cause the health plan to become subject to ERISA, certain restrictions exist that employers should be aware of and follow. Employer contributions to an HSA will not cause the employer to have established a health plan subject to ERISA provided:

  • The establishment of the HSA is completely voluntary on the part of the employees; and
  • The employer does not:
    • limit the ability of eligible individuals to move their funds to another HSA or impose conditions on utilization of HSA funds beyond those permitted under the code;
    • make or influence the investment decisions with respect to funds contributed to an HSA;
    • represent that the HSA is an employee welfare benefit plan established or maintained by the employer;
    • or receive any payment or compensation in connection with an HSA.

See the original article Here.

Source:

Randall V. (2017 May 25). HSAs and employer responsibilities [Web blog post]. Retrieved from address http://blog.ubabenefits.com/hsas-and-employer-responsibilities


CenterStage...The Experts Weigh In

5 Main Benefits of Self-Funding

Simply put, a Partially Self-Funded health plan is just an alternative, and often times more effective way of financing your employer sponsored health plan. Outside of “How does it work?” the questions that are most frequently asked are regarding the risks involved with this strategy and limiting the employer’s exposure. It was once thought that partially self-funding your health plan was reserved for only large employers. Employee Benefit Research Institute (EBRI.org) reported that in 2015 there was a 36.8% increase in private sector employers moving to partially self-funding. We don’t see the use of this strategy slowing down any time soon. It’s all about building the self-funded plan the right way in order to reduce the risk, while at the same time creating opportunity for savings.

A well designed self-funded plan built by a knowledgeable advisor will result in healthier employees and money saved over time. The opportunity for nearly all size employers is substantial. Whether your company is large enough to be completely self-funded, or are mid-size and need stop loss, or are smaller and can take advantage of a level-funding type plan, there are self-funding opportunities for all size employers.

In this article, Scott Smeaton shares his insights on what makes self-funded plans beneficial and what Hierl can do to help.

Scott Smeaton, Executive Vice President

“My advice to anyone who is considering moving to a self funded plan from a traditionally funded plan is that it’s not a one year strategy,” said Scott Smeaton, Executive Vice President of Hierl. “Take the time to find a knowledgeable advisor who will help you understand the risks and opportunities with self-funding, and commit to it for at least three years."

1. Financial Control

The most significant benefit of self-funding is the resulting increased financial control. Self-funded plans often times improve cash flow as funds that would otherwise be held by the insurance carrier for unreported or pending claims are free for use. With a self-funded plan, employers have access to detailed reports and documentation of how every health plan dollar is spent. “We’ve all heard the phrase, we can’t manage what we can’t measure”. Self-funded plans provide access to information that we otherwise would not have.

2. Lower Costs

While traditional fully insured plans allow for a guaranteed monthly cost, meaning the premium stays the same month to month, self-funded plans provide greater flexibility where you only pay for what you use. The disadvantage of a traditional plan is that in a year that the claims and administrative expenses are less than the premium an employer paid – none of that money will be refunded back.

With a partially self-funded plan, you will have administrative and stop loss insurance expenses that will be about 20% of your total budget. The other 80% is purely claims. If at the end of the year your claims were lower than expected, the employer realizes the savings. In a year when claims exceed what is expected, we have stop loss insurance to protect the employer and its employees.

“Wellness efforts and self-funded benefit plans can often work hand in hand in reducing your annual health plan costs,” explained Scott. “I often tell employers who are currently fully insured and have experienced low claims cost that if you believe you can have a positive impact on the health and wellbeing of your employees, then a self-funded plan will be perfect for you because you will be rewarded for wellness efforts and initiatives.”

3. Increased Flexibility

Self-funded plans provide employers the flexibility to design a health benefit plan that addresses specific employee needs as well as company objectives. When compared to traditional plans, self-funded plans allow you to choose your own partners and plan designs. Whether it’s the provider network, the prescription benefit manager, utilization management or centers of excellence manager, vendors can be hand selected from national provider networks to incorporate in the program.

A fully insured plan is required to meet state mandates, state premiums taxes, and ACA taxes among other expenses. Self-funded plans are not subject to the state mandates and either avoids or minimizes many of the taxes.

4. Control Over Plan Design

A downside of traditional plans is being required to select an off-the-shelf plan that your insurance carrier offers.

“One of the things we are doing with our self-funded plans is designing our plans in a way that drives employees to seek out the highest quality but lowest cost providers within their provider network. Provider discounts are great, but there’s even more savings to be gained by creating incentives to seek care from these highest quality, lowest cost providers within that network. Employees are beginning to understand the importance of being better healthcare consumers and it’s paying off. When this happens, it’s only in a self-funded environment that you see the maximum savings from these efforts,” said Scott.

5. Information Management

Self-funded plans provide convenient, secure access to all the necessary information needed to effectively manage plan structure. With a self-funded plan, you can:

  • Track and report data regularly: tracking data allows monthly or quarterly patterns to be detected and acted upon accordingly. Proactive data tracking helps employers stay on top of what is coming next.
  • Utilize predictive plan modeling: past and current claim data can be used to analyze risks and forecast costs allowing for spending waste to be eliminated.

How can Hierl help?

If an employer is moving to a self-funded plan for the first time, Hierl walks clients through a simple process beginning with a risk tolerance analysis to be sure that the plan design keeps the client within their comfort level. From there, Hierl assists with finding a product and design that meets a client’s specific needs. Whether this is a level-funded plan, a captive self-funded plan that limits exposure, or a stop-loss plan that will refund any excess premium at the end of the year, an expert will help determine the best plan for the employer and their employees.

Hierl’s Self-Funded Renewal 101

Here’s an example of the process Hierl guides fully insured clients through as they transition to selffunding. For more information or assistance reach out to an expert at Hierl today.

  • 9-6 months before renewal - Hierl walks clients through all the components of how self-funding works (Self-Funding 101).
  • 6-7 months before the renewal - Hierl facilitates interviews with TPA (Third Party Administrators) in order to select the TPA that best meets the client’s goals and objectives.
  • 5-6 months before renewal - Hierl provides benefit modeling to illustrate self-funding plan design and financial projections in order to compare it to the current fully insured plan.
  • 2-4 months before renewal – Implementation and enrollment is completed.

To download the full article click Here.


Local Innovation in Health Insurance Brings Affordability and Unique Plan Design

Innovative insurance plan exclusive to Fond du Lac, Green Lake and Dodge counties incorporates competitive rates and unique plan design.

MENASHA, WI (June 14, 2017) – A recent partnership between Network Health, Hierl Insurance and Agnesian HealthCare is bringing a new health insurance option to employer groups in Fond du Lac, Green Lake and Dodge counties. This new insurance plan, Assure Elite, allows businesses with two to 100 enrolled employees to offer quality health insurance coverage to their employees at a competitive, business-friendly rate.

Assure Elite is a hybrid level-funded health insurance plan. Level-funding is a cost-effective health plan funding solution that allows companies to benefit from the predictable, fixed monthly rates of a fully insured plan, while only paying for health care that employees receive. Assure Elite eliminates some of the cost concerns usually associated with self-funded plans, making them available to smaller, local businesses. The new plan offers an opportunity for an extended two-year (24 month) rate.

“Network Health is based right here in Wisconsin -  we’re local and we’ve been the go-to community health plan for 35 years,” said Coreen Dicus-Johnson, Network Health president and CEO. “This partnership with Hierl Insurance and Agnesian HealthCare provides affordable, high quality, local coverage to our communities, and it’s perfectly aligned with our mission to enhance the life, health and wellness of the communities we serve."

Headquartered in the Fox Valley, Network Health covers more than 129,000 people throughout Wisconsin on its commercial, Medicare Advantage and individual health insurance plans. Network Health currently insures nearly 14,000 people throughout Fond du Lac, Green Lake and Dodge counties.

Employers in Fond du Lac, Green Lake and Dodge counties with two to 100 enrolled employees may contact Hierl Insurance to purchase Assure Elite plans from Network Health. Coverage under Assure Elite plans can begin as soon as August 1. Please contact Hierl Insurance at 920-921-5921 or hierlquotes@hierl.com for more information or to begin your quote. Network Health and Hierl Insurance also have plan options available for larger employer groups.

“Hierl Insurance has been offering high value employee benefit solutions to the greater Fond du Lac area for close to 100 years,” said Mike Hierl, president of Hierl Insurance. “We’ve been around for 100 years because we believe in taking proactive measures to stay ahead of market trends, and offer our clients dynamic, cost effective solutions to the challenges presented by the ever changing health care and benefit environment. Assure Elite is another step forward in that direction – a partnership with Agnesian HealthCare and Network Health that allows us to provide employers with a solution for quality, cost-effective care close to home. We’re excited to be able to bring this new product to market.”

Agnesian’s Know & Go program will serve as the wellness benefit for Assure Elite plans. The program provides tools, education and incentives to help plan participants live healthier.

“Agnesian HealthCare is excited to partner with Network Health and Hierl Insurance to offer an employer-sponsored health plan that provides cost certainty and improves the well-being of the citizens in the communities we serve,” according to Steve Little, Agnesian HealthCare president and chief executive officer.

“Network Health is always looking for innovative ways to serve our community and provide exceptional service to our members,” said Network Health’s Coreen Dicus-Johnson. “Health insurance affordability is a nationwide problem. Assure Elite is the local solution.”

To Download our Group Health Plan Form Click Here.

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About Network Health
About Network Health Founded in 1982, Network Health offers customized commercial and Medicare health insurance services to employers, individuals and families in more than 23 counties throughout Wisconsin. Through its strong reputation for quality health care coverage and superior customer service, Network Health has grown to serve more than 129,000 members and 32,000 wellness participants. Learn more at networkhealth.com. Visit our blog at copilotwi.com.

About Hierl Insurance Inc.
A third-generation family owned business, Hierl’s goal is for you to “Expect More and Demand Better.” Since 1919, Hierl has earned the trust of Wisconsin employers by using insight and innovative technology to create unique strategies that protect business owners, their employees and their budgets. Hierl’s mission is to provide clients with the wisdom and tools necessary to build a more engaged, productive and loyal workforce. With locations in Fond du Lac and Appleton, Hierl’s expertise in employee benefits, commercial insurance, human resources and wellness creates a great business team. Learn more at hierl.com.

About Agnesian HealthCare
For more than 120 years, Agnesian HealthCare has been a cornerstone within the Fond du Lac region, and it continues its mission to offer high quality services with compassionate care. A total of 10 ministries offer a wide array of quality health and wellness services for individuals and families, including Agnesian Pharmacy/Prescription Centers and Agnesian Health Shoppe, Christian Home & Rehabilitation Center, Consultants Laboratory, Fond du Lac Regional Clinic, Ripon Medical Center, St. Agnes Hospital, St. Francis Home, Villa Loretto & Villa Rosa, and Waupun Memorial Hospital.

With hospitals in Fond du Lac, Ripon and Waupun, and 18 Fond du Lac Regional Clinic offices, the care of more than 100 primary and specialty care physicians is available. A staff of more than 3,500 associates and physicians are the backbone of Agnesian HealthCare, which is sponsored by the Congregation of Sisters of St. Agnes. To learn more, visit agnesian.com.