Preexisting Conditions And Continuous Coverage: Key Elements Of GOP Bill

Do you suffer from a preexisting condition? Take a look at this article by Michelle Andrews from Kaiser Health News and find out how the passing of the AHCA will impact your health care.

Before he was diagnosed with head and neck cancer in 2015, Anthony Kinsey often went without health insurance. He is a contract lawyer working for staffing agencies on short-term projects in the Washington, D.C., area, and sometimes the 90-day waiting period for coverage through a staffing agency proved longer than the duration of his project, if coverage was offered at all.

When Kinsey, now 57, learned he had cancer, he was able to sign up for a plan with a $629 monthly premium because the agency he was working for offered group coverage that became effective almost immediately. The plan covered the $62,000 surgery to cut out the diseased bone and tissue on the left side of his face, as well as chemotherapy and radiation. His share of the treatment cost was $1,800.

If the American Health Care Act, which the House recently passed, becomes law, people like Kinsey who have health problems might not fare so well trying to buy insurance after a lapse.

The Republican bill would still require insurers to offer coverage to everyone, including people who have preexisting medical conditions, such as diabetes, asthma or even cancer. But it would allow states to opt out of the federal health law’s prohibition against charging sick people more than healthy ones. In those states, if people have a break in coverage of more than 63 days, insurers could charge them any price for coverage for approximately a year, effectively putting coverage out of reach for many sick people, analysts say. After a year, they would be charged a regular rate again.

Coming up with a figure for how many people have preexisting conditions that could put them at risk for facing unaffordable health insurance premiums has been the subject of debate, with estimates ranging from 133 million on the high end to 2 million on the low end.

What we know is that before the Affordable Care Act, known as Obamacare, insurers in the individual market frequently charged people more if they were sick. According to a 2009 survey of individual market insurers by America’s Health Insurance Plans, a trade group, 34 percent of coverage was offered at higher-than-standard rates, while 6 percent of those offers included waivers that excluded coverage for specific conditions.

But some health policy analysts suggest that it’s not only people who have a gap in coverage who could be affected if a state seeks the health law waiver. There could be consequences for anyone with a preexisting condition, even those who have maintained continuous insurance coverage. That’s because the bill opens the door for insurers to set rates for people based on their health. For example, those without a health condition could be offered discounted premiums.

“If you have a preexisting condition, you’re going to be put into the block of business with the sicker risk pool,” said Sabrina Corlette, a research professor at Georgetown University’s Center on Health Insurance Reforms.

Requiring people to maintain continuous coverage is the Republicans’ preferred alternative to Obamacare’s individual mandate that requires people to have insurance or pay a fine. But there are many reasons people may have a gap in coverage, especially if they’re sick, say consumer advocates.

“If they’re diagnosed with cancer and going through a grueling treatment, they might move closer to their caregiver or the cancer center,” said Kirsten Sloan, vice president for policy at the American Cancer Society Cancer Action Network. “They may quit their job for that reason, or they may lose their job.”

Once people have a gap in coverage they may really be in a bind if the available coverage is unaffordable. To address this, the Republican bill requires states to set up a high-risk pool or reinsurance program or participate in a federal risk-sharing program.

State high-risk pools, which were available in 35 states before the ACA passed, have been widely criticized, however, as inadequate for people with expensive health care needs. Premiums were often extremely high, and there were frequently lifetime or annual limits on coverage. Some plans excluded coverage for as long as a year for the very conditions people needed insurance.

Still, Thomas Miller, a resident fellow at the American Enterprise Institute, says high-risk pools offer a reasonable solution for the 2 million to 4 million people in the individual market he estimates have preexisting conditions but would otherwise be medically uninsurable or offered such high-cost coverage that they couldn’t afford it. The $130 billion over nine years that the bill sets aside to use for high-risk pools or other individual market activities, along with an additional $8 billion over five years for states that get waivers from ACA community-rating requirements, “could be adequate” to meet the need, he said.

Besides, he argued, the higher rates would last for only a year.

“Once you’ve paid up, you graduate back to the regular market,” Miller said. “It’s not like being sentenced to the Gulag.”

Kinsey said he plans to keep his coverage up to date from now on, but he doesn’t think it’s fair to charge sick people higher rates even if they have a break in coverage.

“It would be problematic,” he said. “I’m not in favor of that.”

See the original article Here.

Source:

Andrews M. (2017 May 16). Preexisting conditions and continuous coverage: key elements of GOP bill [Web blog post]. Retrieved from address http://khn.org/news/preexisting-conditions-and-continuous-coverage-key-elements-of-gop-bill/?utm_campaign=KFF-2016-The-Latest&utm_source=hs_email&utm_medium=email&utm_content=52062246&_hsenc=p2ANqtz-90h4NOm7X9KLzIv7cYUNaGbi_qAFjmLW8NHmH89fiCT1u4SVQ8G95MFvTb3ljYlm3XiY20qWwsBfqH8PKOCwaULkf-ug&_hsmi=52062246


Is Social Media Putting Employees’ Health, Safety at Risk?

Do your employees know about all of the risks that can come from their social media? Find out how social media can affect your employee's safety and health in this article from Employee Benefit News by Jill Hazan.

The issue of personal online safety has finally crossed over into the healthcare arena — and employers need to step up and learn to best educate employees about keeping them safe.

A recent article in the Journal of the American Medical Association Pediatrics, “Parental Sharing on the Internet: Child Privacy in the Age of Social Media and the Pediatrician’s Role,” highlights how parents who post information about their children on social media put them at greater risk for identity theft. In addition, this trend toward oversharing compromises a child’s protected health information. What might happen when that child applies for a job in the future and a simple internet search reveals health information she would not want an employer to know?

While HIPAA protects the confidentiality of an individual’s medical records, it doesn’t provide comprehensive protections outside the healthcare environment. The laws around the privacy rights of children relative to their parents’ online disclosures are still evolving. The article recommends that pediatricians ask parents about their social media habits to help keep children safe and their data private. It is a natural extension that all primary care providers should be asking patients about social media behaviors, as the issues of identity theft and data privacy are relevant to children and adults alike.
This recommendation is increasingly significant from an employee benefit perspective.

So what should employers do?

Employers routinely provide healthcare benefits to employees. If health plans and physicians are acknowledging and addressing the risks of social media from a privacy and security perspective, shouldn’t employers extend that focus into the workplace? With the continued employer emphasis on wellness, it is incumbent on health plans and employers alike to educate employees on online security and the risks of identity theft.

 

There are a variety of resources and benefits that employers can access to assist employees in navigating the online world safely. A series of well-structured, engaging seminars on identity theft and online security that combine real-life stories with actionable advice are effective in educating employees and changing behaviors. Online tutorials, like those provided by the Center for Identity at the University of Texas, Austin, can guide employees on setting proper privacy settings on social media sites, such as Facebook, Twitter, LinkedIn and Pinterest.

Identity theft protection plans provide monitoring and restoration services, as well as education to help keep employees and their families secure. EAPs may provide guidance on identity theft and counseling for victims. Comprehensive legal benefit plans provide legal advice and representation for victims of identity theft. Employers may also provide employees access to online data protection tools for use at work and home with features that encrypt communication and block malware and phishing attempts.

Employees need to understand how to navigate the social media and online environment to keep their families safe. Identity theft of a family member affects more than just one person. It can register an emotional, physical and financial toll on the entire family. Employers need to structure a comprehensive approach to managing the health and wellness of employees as it relates to their online behaviors. A program with a combination of employee benefits, from healthcare to identity theft protection benefits, supplemented by onsite employee education, will support the goals of the health plan and, ultimately, the organization’s overall business objectives.

See the original article Here.

Source:

Hazan J. (2017 May 1). Is social media putting employees' health, safety at risk? [Web blog post]. Retrieved from address https://www.benefitnews.com/opinion/is-social-media-putting-employees-health-safety-at-risk?feed=00000152-18a4-d58e-ad5a-99fc032b0000


Employee Expectations Changing the Workplace

Do you know what benefits your employees are looking for? Take a peek at this great article from Employee Benefits Adviser about how employers are starting to customize their employee benefits programs to fit each individual employee by Nick Otto.

If employers want to retain and attract talent, they’ve got to start thinking about one big benefit trend: Customization.

“It’s not about just medical, dental and vision anymore,” Todd Katz, executive vice president, MetLife said Monday following the release of MetLife’s 15th annual U.S. Employee Benefits Trends Study.

Nearly three-fourths (74%) of employees say that having benefits customized to meet their needs is important when considering taking a new job, and 72% say that having the ability to customize their benefits would increase their loyalty to their current employer.

Workers say benefits customization is even more important than the ability to work remotely. In fact, more than three-fourths (76%) of millennials say benefits customization is important for increasing their loyalty to their employers, compared to two-thirds (67%) of baby boomers.

“Today, our lives reflect our preferences,” Katz says. “We choose how our coffee is made, create personalized playlists and decide which apps we have on our phones. In all aspects of our lives, we can make choices to meet our unique needs. The same should apply when it comes to benefits.”

That’s particularly important for driving engagement and loyalty among millennials, he said, who comprise the largest generation in the workplace today. “Customization for them is inherent, and they want to know that their employers understand and are willing to address their specific needs.”

Not only is benefits customization important for employee satisfaction and retention, but so is helping employees with their holistic wellness — both health and financial — needs.

Nearly two-thirds of employees say that health and wellness benefits are important for increasing loyalty to their employer and 53% say the same about financial planning programs.

Every day, employees come to work with financial concerns, and in larger businesses, employees acknowledge that they sacrifice their health and are less productive. Close to a third of workers (30%) say they lay awake at night worrying about money, and 23% admit to being less productive at work because of financial stress.

“Looking across the work force, when you understand what’s on the minds of employees it’d be wonderful if the set of benefits is matched to address what is a drag on the minds of workers and their worries back at home,” Ida Rademacher, executive director, financial security program at The Aspen Institute, noted at MetLife’s symposium in Washington, D.C. on Monday.

She notes there are four elements to helping workers achieve financial well-being:

Financial security in the present: Employees having control over day-to-day and month-to-month finances
Financial security in the future: The ability to absorb a financial shock
Freedom of choice in the present: Financial freedoms to make choices and enjoy life
Freedom of choice in the future: The ability to be on track to meet financial goals

Despite the need for wellness education, many employers are falling short in their offerings.

Only a third of employers (33%) say they are very likely to offer wellness benefits and just 18% currently offer financial planning programs. At the same time, only 36% of employers say wellness benefits and financial planning programs are valuable to their employees, according to the study.

“Employees are looking to their employers to help them with their overall wellness needs, whether it’s through gym memberships to stay healthy or financial education programs to plan for their futures,” says MetLife’s Katz. “As employees have more non-traditional workplace options available to them, it will become increasingly important that employers prioritize holistic wellness to drive employee engagement and loyalty in this new era.”

This may be why retention is the top priority among employers. When asked to rank their top benefits priorities, more employers (83%) chose retaining employees as an important benefits objective than increasing employee productivity (80%) and controlling health and welfare benefit costs (79%). More so, over half of employers (51%) say that retaining employees through benefits will become even more important in the next three to five years.

“Benefits historically were used for attraction and retention, but there now much more strategically important than they have ever been,” added Randy Stram, senior vice president, group, voluntary & worksite benefits at MetLife. “A diverse employee base, uncertainty regulatory environment and the changing digital landscape are adding to the increase complexity of managing benefits for employers.”

See the original article Here.

Source:

Otto N. (2017 April 19). Employee expectations changing the workplace [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/employee-expectations-changing-the-workplace?feed=00000152-1377-d1cc-a5fa-7fff0c920000


7 Questions to Ensure Successful Benefit Technology Purchases

Do you need help figuring out your technology needs for an employee benefits program? Check out this interesting article from Employee Benefit Adviser about which technology you will need for your employee benefits program by Veer Gidwaney.

From quality to data integration, there are many factors to consider when purchasing benefit administration technology. With employers increasing turning to their adviser for guidance, here are some key questions advisers should make sure their client’s tech acquisition teams can answer:

1) How will you ensure data quality is maintained during the migration to the new system? Be it a mistyped entry, or incomplete form, errors are bound to happen in open enrollment, and if they’re not caught during implementation process, errors can go unnoticed for months or longer. This means inaccuracies in carrier files, delays in enrollment processing, and additional back-and-forth between you and your client or the carrier.

Don’t rely on human eyes to scan spreadsheets for potential errors, it’s 2017. Before you take the plunge with a technology partner, understand their data validation and backup data quality check processes to catch and correct errors before they’re entered into your system of record.

2) Will this technology require a printer or a fax machine for my team or my clients?

No benefits or HR platform should require any manual paperwork. It’s time-consuming, and more prone to human error, yet many benefits systems still rely on paper-based processes to run an enrollment or onboard an employee. Take a stand, for your team, your clients, and their employees.

Make sure you see a demo of the onboarding and enrollment process from start to finish before partnering with a technology platform, and expect employees and HR to demand the same expectations based on interacting with any other technology experience in their lives, at home or work. Does it look and feel like a modern experience? Is buying insurance as intuitive as any e-commerce experience an employee would be used to? If not, keep looking.

3) Is EDI with insurance carriers “full-service” or “self-service”?

Managing electronic data integrations (EDI) with carriers is complex and time-consuming, but something that many employers expect to have up and running smoothly to manage eligibility and enrollment ongoing. Any benefits administration technology that requires your team to set up their own EDI files, or interface directly with the carrier is sucking up unnecessary time and resources, and you must factor that time into the cost of partnership.

4) How does the platform partner with insurance carriers and other third-party vendors to make offering and managing benefits easier?

Insurance carriers aren’t going anywhere, so choosing a system that has advantageous relationships and deep integrations with your favorite carriers will save time and money in the long run, for both you and your clients.

Depending on the type of relationship a technology vendor has with the carriers you work with, that could mean internal efficiencies and cost savings like free EDI, automated eligibility management, and low minimum participation requirements on voluntary benefit products. Montoya & Associates has actually been able to streamline standard benefit offerings based on the Maxwell Health Marketplace, which makes implementations faster and easier for their team. Don’t take my word for it: check out a case study, in their own words.

5) How does the platform make it more efficient to manage ongoing employee changes throughout the year?

Routine qualifying life events such as marriage or birth of a child shouldn’t require hours of administrative work for you or your clients. While it’s tempting to ‘check the box’ with low-cost point solutions that handle only eligibility, or quoting, or enrollment, it’s important to consider the cost of wasted hours and the impact that disjointed processes will have on your clients’ experience.

Solving interconnected problems with disparate point solutions will result in disjointed processes, multiple data entry points, and client frustration. Look for solutions that manage all of that data in one place, both during enrollment and year-round.

6) How many team members are typically dedicated full-time to making the platform work at scale? If you have to hire additional full-time team members to complete tasks that could (and should) be automated or streamlined with technology (like EDI, enrollment paperwork, etc.), you should factor that into your decision from a financial perspective.

Implementing technology should streamline processes for your team in addition to your clients. Ask for references on how current clients have made the tool successful, and dig into the processes that any potential technology partner might help you solve to uncover the manual work that might hide below the surface.

7) What sort of technical and implementation support is available? Training on any new process is a time-consuming process that may require some hand-holding. Your technology partner is an extension of your brand and your company, so you need to make sure that they set up both you and your clients for success, initially and throughout the year. Ask about their support structure, and what resources are available to both you and your clients.

Both HR teams and employees should have tools to solve problems on their own, with the ability to get in touch with a live person for technical questions if needed. Certain technology platforms prioritize broker support at the expense of support for HR and employees, or might provide support during initial setup, and charge for support throughout the year. This often results in more time-consuming implementations than necessary and frustration at being unsure of what to do next or how to resolve any issues.

See the original article Here.

Source:

Gidwaney V. (Date). 7 questions to ensure successful benefit technology purchases [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/6-questions-to-ask-to-avoid-hidden-benefit-technology-costs


10 Misconceptions About Saving for Medical Care in Retirement

Are you properly prepared for your medical costs during retirement? Take a look at this great article from Employee Benefits Advisors to find out what are the top misconceptions people have about medical costs when planning for their retirement by Marlene Y. Satter.

Retirement isn’t the only thing workers have trouble saving for; the other big gap in planning is health care.

According to a Voya Financial survey, Americans just aren’t ready to pay for the health care they might need in retirement. Their estimates of what they might need are low—when they estimate them at all, that is—and their savings are even lower.

With worries over money woes keeping people up at night—so says a CreditCards.com poll—the only worry that surpassed “having enough saved for retirement” was “health care and insurance.”

And consider, if you will, all the turmoil in the health insurance market these days, what with potential changes to—or an outright repeal of—the Affordable Care Act waiting in the wings, not to mention the skyrocketing costs of both care and coverage.

Americans seem to have a lot to worry about when it comes to their finances.

In light of all this uncertainty, it’s no wonder that the little matter of paying for health care is keeping people awake.

But, considering all that, it’s even more surprising that there are so many common misconceptions about health care, its cost and how to pay for it at large in the general population.

American workers are not just ill prepared for retirement, they’re even more ill prepared for any illness or infirmity that may come along with it.

According to research from the Employee Benefit Research Institute (EBRI), a 65-year-old man would need $127,000 in savings while a 65-year-old woman would need $143,000—thanks to a longer projected lifespan—to give each of them a 90 percent chance of having enough savings to cover health care expenses in retirement.

But that doesn’t appear to have filtered its way down to U.S. workers, who are blissfully (well, maybe not so blissfully) ignorant of the mountain of bills that probably lies ahead.

While demographics play a role, there are smaller differences among some groups than one might otherwise expect. In addition, it’s also rather surprising where Americans plan to get the money to pay for whatever care they receive, and how far they think that money will stretch when it also has to pay for food, clothing, shelter and any activities or other necessities that come along with retirement.

Read on to see 10 misconceptions workers have about how and how much they think they’ll pay for medical care in retirement. As you’ll see, some generations are more prone to certain errors than others.

10. Workers just aren’t estimating how much health care will cost them in retirement.

Perhaps they’d rather not know—but according to the poll, 81 percent of Americans have not estimated the total amount health care will cost them in retirement; among them are 77 percent of boomers. Retirees haven’t estimated those costs, either; in fact, just 21 percent of them have. But that’s actually not that bad, when considering that among Americans overall, only 14 percent have actually done—or tried to do—the math.

And among those who have tried to calculate the cost, 66 percent put them at $100,000 or less while an astonishing 31 percent estimated just $25,000 or less.

9. People with just a high school education or less, and whites, are slightly more likely than those who went to college, and blacks, to have attempted to figure it out.

The great majority among all those demographic groups just aren’t looking at the numbers, with 88 percent of black respondents and 79 percent of white respondents saying they have not estimated how much money it will take to pay their medical costs throughout retirement.

And while 80 percent of those with a high school diploma or less say they haven’t run the numbers, those who spent more time in school have spent even less time doing the calculations—with 81 percent of those with some college and 82 percent of those who graduated college saying they have not estimated medical costs.

8. Millennials are the most likely to underestimate health care costs in retirement.

A whopping 74 percent of millennials are among those lowballing what they expect to spend on health care once they retire, figuring they won’t need more than $100,000—and possibly less.

Not that they really know; 85 percent haven’t actually tried to calculate their total health care expenses for retirement. But they must be believers in the amazing stretching dollar, with 42 percent planning to use general retirement savings as the primary means of paying for health expenses in retirement, excluding Medicare.

GenXers, by the way, were the most likely to guess correctly that the bill will probably be higher than $100,000—but even there, only 28 percent said so.

7. They have surprisingly unrealistic expectations about where they’ll get the money to pay for medical care.

Excluding Medicare, 34 percent intend to use their general retirement savings, such as 401(k)s, 403(b)s, pensions and IRAs, as the primary means of paying for care, while 25 percent are banking on their Social Security income, 7 percent would use health savings accounts (HSAs) and 6 percent would use emergency savings.

That last is particularly interesting, since so few people have successfully managed to set aside a sizeable emergency fund in the first place.

6. Despite their potential, HSAs just aren’t feasible for many because of their income.

HSAs do offer ways to set aside more money not just for medical bills in retirement but also to boost retirement savings overall, and come with fairly generous contribution limits. But people with lower incomes often can’t even hit the maximum for retirement accounts—so relying on an HSA might not be realistic for all but those with the highest incomes.

Yet people with lower incomes were more likely than those who made more to say HSAs would be the main way they’d pay for medical expenses. Among those who said they’d be relying on HSAs to pay for care in retirement, 5 percent of those with incomes less than $35,000 and 14 percent of those with incomes between $35,000–$50,000 said that would be the way they’d go.

Just 9 percent of those with incomes between $50,000–$75,000, 7 percent of those with incomes between $75,000–$100,000 and 9 percent of those with incomes above $100,000 chose them.

5. A few are planning on using an inheritance to pay for medical bills in retirement.

It’s probably not realistic, and there aren’t all that many, but some respondents are actually planning on an inheritance being the chief way they’ll pay for their medical expenses during retirement.

Millennials and GenXers were the most likely to say that, at 2 percent each—but they may not have considered that the money originally intended for an inheritance might end up going to pay for other things, such as caregiving or child care, and indeed much of their own retirement money could end up paying for care for elderly parents. A lot more people end up acting as caregivers—especially among the sandwich generation—and may find that relying on inheriting money from the people they’re caring for was not a realistic expectation.

4. Women don’t know, guess low.

Just 13 percent of women have gone to the trouble of estimating how much health care will cost them during retirement, but that didn’t stop 32 percent from putting that figure at $25,000 or less.

And that’s really bad news. It’s particularly important for women to be aware of the cost of health care, since not only do they not save enough for retirement to begin with—42 percent only contribute between 1–5 percent, the lowest level, compared with 34 percent of men, often thanks to lower salaries and absences from the workplace to raise children or act as caregivers—but their longer lifespans mean they’ll have more years in which to need health care and fewer options to obtain it other than by paying for it.

Men are frequently cared for by (predominantly female) caregivers at home, while women tend to outlive any family members who might be willing or able to do the same for them.

3. Men don’t know, but guess higher.

While the same percentage of women and men have not estimated their retirement health care expenses (81 percent), men were more likely than women (24 percent, compared with 15 percent) to come up with an estimate higher than $100,000.

2. The highest-income households are most likely to have tried to estimate medical cost needs during retirement.

Probably not surprisingly, households with an income of $100,000 or more were the most likely to have tried to pin a dollar figure to health care needs, with 21 percent saying they’d done so.

Households with incomes between $50,000–$75,000 were least likely to have done so, with just 11 percent of them trying to anticipate how much they’ll need.

And just because they have more money doesn’t mean their estimates were a whole lot more accurate—only 38 percent of those $100,000+ households thought they’d need more than $100,000 to see them through any needed medical care during retirement, while 59 percent—the great majority—figured they could get by on $100,000 or even less.

1. Where they live doesn’t seriously affect their estimates, although it will seriously affect their cost of care.

Among those who have tried to anticipate how much they’ll need in retirement for medical care, there’s not a huge difference among how many guessed too low—even though where they live can have a huge effect on how much they’ll end up paying, particularly for long-term care.

While the most expensive regions for LTC tend to be the northeast and the west coast, and the cheapest are the south and midwest, there’s not a great deal of variance among those who estimate they can get by on care for $100,000 or less—even if people live in one of the most expensive regions. Sixty-seven percent of those in the northeast said care wouldn’t cost more than that, while 63 percent of those in the midwest, 71 percent of those in the south and 61 percent of those in the west said the same thing.

When it came to those who said they’d need more than $100,000, 24 percent of those in the west thought they’d need that much; so did 20 percent of those in the midwest, just 18 percent of those in the northeast and 17 percent of those in the south.

See the original article Here.

Source:

Satter M. (2017 April 24). 10 misconceptions about saving for medical care in retirement [Web blog post]. Retrieved from address http://www.benefitspro.com/2017/04/24/10-misconceptions-about-saving-for-medical-care-in?ref=hp-news&page_all=1


Why Private Exchanges Haven't Taken Off As Predicted

Great article from our partner, United Benefit Advisors (UBA) by Paul Rooney.

While the health care affordability crisis has become so significant, questions still linger—will private exchanges become a viable solution for employers and payers, and will they will continue to grow? Back in 2015, Accenture estimated that 40 million people would be enrolled in private exchange programs by 2018; the way we see this model’s growth today doesn’t speak to that. So, what is preventing them from taking off as they were initially predicted? We rounded up a few reasons why the private exchange model’s growth may be delayed, or coming to a halt.

They Are Not Easy to Deploy

There is a reason why customized benefits technology was the talk of the town over the last two years; it takes very little work up-front to customize your onboarding process. Alternatively, private exchange programs don’t hold the same reputation. The online platform selection, build, and test alone can get you three to six months into the weeds. Underwriting, which includes an analysis of the population’s demographics, family content, claims history, industry, and geographic location, will need to take place before obtaining plan pricing if you are a company of a certain size. Moreover, employee education can make up a significant time cost, as a lack of understanding and too many options can lead to an inevitable resistance to changing health plans. Using a broker, or an advisor, for this transition will prove a valuable asset should you choose to go this route.

A Lack of Education and a Relative Unfamiliarity Revolves Around Private Exchanges

Employers would rather spend their time running their businesses than understanding the distinctions between defined contribution and defined benefits models, let alone the true value proposition of private exchanges. With the ever-changing political landscape, employers are met with an additional challenge and are understandably concerned about the tax and legal implications of making these potential changes. They also worry that, because private exchanges are so new, they haven’t undergone proper testing to determine their ability to succeed, and early adoption of this model has yet to secure a favorable cost-benefit analysis that would encourage employers to convert to this new program.

They May Not Be Addressing All Key Employer and Payer Concerns

We see four key concerns stemming from employers and payers:

  • Maintaining competitive benefits: Exceptional benefits have become a popular way for employers to differentiate themselves in recruiting and retaining top talent. What’s the irony? More options to choose from across providers and plans means employees lose access to group rates and can ultimately pay more, making certain benefits less. As millennials make up more of today’s workforce and continue to redefine the value they put behind benefits, many employers fear they’ll lose their competitive advantage with private exchanges when looking to recruit and retain new team members.
  • Inexperienced private exchange administrators: Because many organizations have limited experience with private exchanges, they need an expert who can provide expertise and customer support for both them and their employees. Some administrators may not be up to snuff with what their employees need and expect.
  • Margin compression: In the eyes of informed payers, multi-carrier exchanges not only commoditize health coverage, but perpetuate a concern that they could lead to higher fees. Furthermore, payers may have to go as far as pitching in for an individual brokerage commission on what was formerly a group sale.
  • Disintermediation: Private exchanges essentially remove payer influence over employers. Bargaining power shifts from payers to employers and transfers a majority of the financial burden from these decisions back onto the payer.

It Potentially Serves as Only a Temporary Solution to Rising Health Care Costs

Although private exchanges help employers limit what they pay for health benefits, they have yet to be linked to controlling health care costs. Some experts argue that the increased bargaining power of employers forces insurers to be more competitive with their pricing, but there is a reduced incentive for employers to ask for those lower prices when providing multiple plans to payers. Instead, payers are left with the decision to educate themselves on the value of each plan. With premiums for family coverage continuing to rise year-over-year—faster than inflation, according to Forbes back in 2015—it seems private exchanges may only be a band-aid to an increasingly worrisome health care landscape.

Thus, at the end of it all, change is hard. Shifting payers’, employers’, and ultimately the market’s perspective on the projected long-term success of private exchanges will be difficult. But, if the market is essentially rejecting the model, shouldn’t we be paying attention?

See the original article Here.

Source:

Rooney P. (2017 April 26). Why private exchanges haven't taken off as predicted [Web blog post]. Retrieved from address http://blog.ubabenefits.com/why-private-exchanges-havent-taken-off-as-predicted


Millennials, Gen X Struggle With the Same Financial Wellness Issues

Millennials and Generation X have a lot more in common than they think. Find out about the major issues that millennials and generation x faces financially in the great article from Employee Benefit News by Amanda Eisenberg.

From student loans and credit card debt to creating an emergency fund and saving for retirement, older millennials are beginning to face similar financial well-being problems as Gen Xers.

Financial stress among millennials decreased to 57% from 64% last year, which is more in line with the percentage of Gen X employees who are stressed about their finances (59%), according to PwC’s “Employee Financial Wellness Survey”.

“As much as millennials want to be different, life takes over,” says Kent Allison, national leader of PwC’s Employee Financial Wellness Practice. “You start running down the same path. Some things are somewhat unavoidable.”

Half of Gen X respondents find it difficult to meet their household expenses on time each month, compared to 41% of millennial employees, according to PwC.

Seven in 10 millennials carry balances on their credit cards, with 45% using their credit cards for monthly expenses they could not afford otherwise; similarly, 63% of Gen X employees carry a credit card balance, especially among employees earning more than $100,000 a year, according to the survey.

“The ongoing concern year after year — but they don’t necessarily focus on it —is the ability to meet unexpected expenses,” Allison says. “It’s stale but there are reoccurring themes here that center around cash and debt management that people are struggling with.”

With monthly expenses mounting, employees from both generations are turning to their retirement funds to finance large costs, like a down payment on a home.

Nearly one in three employees said they have already withdrawn money from their retirement plans to pay for expenses other than retirement, while 44% said it’s they’ll likely do so in the future, according to PwC.

Employees living paycheck to paycheck are nearly five times more likely to be distracted by their finances at work and are twice as likely to be absent from work because of personal financial issues, according to PwC.

The numbers are alarming, especially because Americans are already lacking requisite retirement funds, says Allison.

“Two years ago, the fastest rising segment of the population in bankruptcy is retirees,” he says. “I suspect we’re going to have that strain and it may get greater as people start to retire and they haven’t saved enough.”

Employers committed to helping their employees refocus their work tasks and finances should first look to the wellness program, he says.

“Focus on changing behaviors,” says Allison. “The majority of [employers] use their retirement plan administrators. You’re not going to get there if you don’t take a holistic approach.”

Meanwhile, employees should also be directed to build up an emergency fund, utilize a company match for their 401(k) plans and then determine where their money is going to be best used, he says.

They can also be directed to the employee assistance program if the situation is dire.

“It’s intervention,” Allison says. “At that point, it’s too late.”

See the original article Here.

Source:

Eisenberg (2017 April 27). Millennials, gen x struggle with the same financial wellness issues [Web blog post]. Retrieved from address https://www.benefitnews.com/news/millennials-gen-x-struggle-with-the-same-financial-wellness-issues


Employees Want Money More than Perks

Have you been trying to leverage your employee benefits as a way to attract and retain talent? Take a look at this great article from Benefits Pro about how employees still value money over the perks of employee benefits  Marlene Y. Satter.

There’s plenty of talk these days about all sorts of employee benefits that might help to attract and retain top talent — but when push comes to shove, it’s the dollar sign that has the most influence.

That’s according to a Paychex.com survey, which finds that in the employment conversation, money still talks the loudest. It’s not that people don’t want or like other benefits, such as health insurance, vacations and 401(k)s, but what they really want, what they really, really want is cold hard cash in the form of bonuses and raises. Regular bonuses, they say, are the most important job incentive.

However, asked about the benefits they do receive, survey respondents list a range of benefits, including health care, dental insurance, 401(k)s, casual dress days and free snacks, but bonuses only come in at eighth place. Least important to them of all are “nomadic days” — days on which they can work away from the office at the location of their choice.

Asked their salaries and which benefits they’d gladly give up in exchange for more money, there are quite a few — with low-cost benefits the most disposable. Millennials, perhaps unsurprisingly, make the least money at less than $47,000 a year, while boomers come in second (despite their longevity on the job) at just over $49,000 annually; GenXers are the best paid, at an average of more than $53,000.

And they all know the value of a buck. The top five most expendable benefits named are free coffee or snacks; casual dress days; company events or outings; discounts on company products; and discounts on other products. In fact, such “benefits” may actually backfire if companies think offering them instead of merit-based compensation or bonuses to induce greater productivity.

There’s certainly a disconnect between what employees say they value most and what employers believe are the most valuable options, with employees saying the most important to them are monetary bonuses, additional paid vacation time, and health and dental insurance.

Bosses, on the other hand, think employee morale benefits more from paid vacations, bonuses and finally paid maternity leave and vision and dental insurance.

To show how out of touch employers can be, employers rate health care just above lunch breaks in terms of morale-boosting importance, despite its value to employees.

Considering that low-wage jobs are associated with higher rates of employee turnover, the study points out that providing employees with a salary increase could cut the costs associated with recruitment and training.

Of course, smaller companies tend to offer fewer, and less expansive, benefits than larger companies, with employers of fewer than 100 more likely to offer employees casual dress days or free snacks than they are to provide them with the considerably more important benefit of health insurance. But on the flip side, smaller companies are also more likely to offer bonuses than are larger companies, and indeed employees rank those bonuses above health care, dental insurance, and 401(k) plans in importance.

And the benefits on offer could depend on the age of the boss, with millennials more willing to offer employees commission and sales bonuses, paid gym memberships and student loan reimbursement while Gen Xers hit on all cylinders in offering bonuses, paid maternity leave and on-site health and wellness services.

Boomers, alas, seem stuck in the dark ages when it comes to modern benefit offerings, reluctant to see the benefit of such perks as bonuses, nomadic days and paid maternity leave; in addition, they’re really resistant to such things as student loan reimbursement and paid professional development.

See the original article Here.

Source:

Satter M. (2017 April 28). Employees want money more than perks [Web blog post]. Retrieved from address http://www.benefitspro.com/2017/04/28/employees-want-money-more-than-perks?ref=hp-news&page_all=1


The Killjoy of Office Culture

One of the latest things trending right now in business is the importance of office culture. When everyone in the office is working well together, productivity rises and efficiency increases. Naturally, the opposite is true when employees do not work well together and the corporate culture suffers. So, what are these barriers and what can you do to avoid them?

According to an article titled, “8 ways to ruin an office culture,” in Employee Benefit News, the ways to kill corporate culture may seem intuitive, but that doesn’t mean they still don’t happen. Here’s what organizations SHOULD do to improve their corporate culture.

Provide positive employee feedback. While it’s easy to criticize, and pointing out employees’ mistakes can often help them learn to not repeat them, it’s just as important to recognize success and praise an employee for a job well done. An “attaboy/attagirl” can really boost someone’s spirits and let them know their work is appreciated.

Give credit where credit is due. If an assistant had the bright idea, if a subordinate did all the work, or if a consultant discovered the solution to a problem, then he or she should be publicly acknowledged for it. It doesn’t matter who supervised these people, to the victor go the spoils. If someone had the guts to speak up, then he or she should get the glory. Theft is wrong, and it’s just as wrong when you take someone’s idea, or hard work, and claim it as your own.

Similarly, listen to all ideas from all levels within the company. Every employee, regardless of their position on the corporate ladder, likes to feel that their contributions matter. From the C-suite, all the way down to the interns, a genuinely good idea is always worth investigating regardless of whether the person who submitted the idea has an Ivy League degree or not. Furthermore, sometimes it takes a different perspective – like one from an employee on a different management/subordinate level – to see the best way to resolve an issue.

Foster teamwork because many hands make light work. Or, as I like to say, competition breeds contempt. You compete to get your job, you compete externally against other companies, and you may even compete against your peers for an award. You shouldn’t have to compete with your own co-workers. The winner of that competition may not necessarily be the best person and it will often have negative consequences in terms of trust.

Get rid of unproductive employees. One way to stifle innovation and hurt morale is by having an employee who doesn’t do any work while everyone else is either picking up the slack, or covering for that person’s duties. Sometimes it’s necessary to prune the branches.

Let employees have their privacy – especially on social media. As long as an employee isn’t conducting personal business on company time, there shouldn’t be anything wrong with an employee updating their social media accounts when they’re “off the clock.” In addition, as long as employees aren’t divulging company secrets, or providing other corporate commentary that runs afoul of local, state, or federal laws, then there’s no reason to monitor what they post.

Promote a healthy work-life balance. Yes, employees have families, they get sick, or they just need time away from the workplace to de-stress. And while there will always be times when extra hours are needed to finish a project, it shouldn’t be standard operating procedure at a company to insist that employees sacrifice their time.

 

 


Dear Brain, Please Let Me Sleep

There are alarms to help people wake up, but there isn’t anything similar to help people fall asleep. It seems that no matter how much you zone out just before going to bed, the minute your head hits the pillow your brain kicks into overdrive. Thoughts of every decision made that day, things that need to be done tomorrow, or that stupid song just heard continue to flood the brain with activity.

Often, when this happens to me, I’m reminded of the time Homer Simpson said, “Shut up, brain, or I’ll stab you with a Q-Tip!” because I feel like the only way I’ll stop thinking about something is to kill my brain. Fortunately, there are other ways of dealing with this problem. An article onCNN’s website titled, “Busy brain not letting you sleep? 8 experts offer tips,” reveals a few clear tips to try and lull your brain to sleep.

A few that have worked for me are to think about a story I’ve read or heard, or to make one up. It may seem counterintuitive to think about something so that you’ll stop thinking, but the story tends to unravel as I slowly drift off to sleep. Another favorite is to get out of bed and force myself to stay awake. While the chore of getting out of bed, especially on a cold night, may seem daunting, there’s nothing quite like tricking your brain with a little reverse psychology. If that doesn’t work, write down what’s bothering you, take a few deep breaths, or even do some mild exercise. If all else fails, there’s always warm milk or an over-the-counter sleep aid, but really this should be used as a last resort and not your first “go to” item.

Ideally, your bedroom will be conducive to sleep anyway. Light and noise should be kept to an absolute minimum and calming, muted colors promote a more restful ambience. Also, make sure that the bedroom is your ideal temperature because it’s more difficult to sleep if you’re too hot or cold.

Don’t let your brain win the battle of sleep! Fight it on your own terms and equip yourself with as many tools as possible to win. Your brain will thank you in the morning by feeling refreshed.