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


The Facts on the GOP Health Care Bill

Do you know all the facts behind the American Health Care Act (AHCA)? Check out this article by Fact Check and find out about all the details behind the GOP new health care legislation.

House Republicans released their replacement plan for the Affordable Care Act on March 6. How does the GOP’s American Health Care Act differ from the ACA? We look at the major provisions of the amended version of the bill, as of May 4. (The legislation passed the House on May 4 and now goes to the Senate for consideration.)

Is there a requirement to have insurance or pay a tax?

No. For all months after Dec. 31, 2015, the bill eliminates the tax penalties that the ACA imposes on nonexempt individuals for not having health insurance, as well as employers with 50 or more full-time workers who do not offer health insurance to their employees. (To be clear, unless this bill becomes law quickly, those filing their 2016 tax returns will still be subject to the penalty.)

Are insurance companies required to offer coverage regardless of preexisting conditions?

Yes, but there’s a penalty for not having continuous coverage. Under both the ACA and the GOP bill, insurers can’t deny coverage to anyone based on health status. Under the GOP bill, they are required, however, to charge 30 percent higher premiums for one year, regardless of health status, to those entering the individual market who didn’t have continuous coverage, which is defined as a lapse of coverage of 63 days or more over the previous 12 months.

However, an amendment proposed in late April allows states to obtain a waiver that would enable insurers to charge more to people with preexisting conditions who do not maintain continuous coverage. Such policyholders could be charged higher premiums based on health status for one year. After that, provided there wasn’t another 63-day gap, the policyholder would get a new, less expensive premium that was not based on health status. This change would begin in 2019, or 2018 for those enrolling during special enrollment periods.

States with such a waiver would also have to have either a “risk mitigation program,” such as a high-risk pool, or participate in a new Federal Invisible Risk Sharing Program, as a House summary of the amendment says. Beyond those programs, another amendment to the bill would provide $8 billion in federal money over five years to financially aid those with preexisting conditions who find themselves facing higher premiums in waiver states.

For more on this waiver program, see our May 4 article, “The Preexisting Conditions Debate.”

What happens to the expansion of Medicaid?

It will be phased out.

Prior to the ACA, Medicaid was available to groups including qualified low-income families, pregnant women, children and the disabled. The ACA expanded eligibility to all individuals under age 65 who earn up to 138 percent of the federal poverty level (about $16,643 a year for an individual), but only in states that opted for the expansion. Thirty-one states and the District of Columbia have opted in to the expansion, which includes enhanced federal funding, so far. More than 11 million newly eligible adults had enrolled in Medicaid through March 2016, according to an analysis by the Kaiser Family Foundation of data from the Centers for Medicare & Medicaid Services.

Under the Republican health care plan, no new enrollment can occur under this Medicaid expansion, with enhanced federal funds, after Dec. 31, 2019. States that haven’t already opted in to the expansion by March 1, 2017, can’t get the ACA’s enhanced federal funding for the expansion-eligible population.

To be clear, the bill doesn’t eliminate the Medicaid expansion coverage for those who are enrolled prior to 2020 in the current expansion states. But if those enrollees have a break in coverage for more than one month after Dec. 31, 2019, they won’t be able to re-enroll (unless a state wanted to cover the additional cost itself).

The Republican plan includes another notable change to Medicaid. It would cap the amount of federal funding that states can receive per Medicaid enrollee, with varying amounts for each category of enrollee, such as children, and the blind and disabled. Currently, the federal government guarantees matching funds to states for qualifying Medicaid expenses, regardless of cost. Under the GOP bill, states have the option of receiving a block grant, rather than the per-capita amounts, for traditional adult enrollees and children – not the elderly or disabled. States also have the option of instituting work requirements for able-bodied adults, but not pregnant women.

Are insurers required to cover certain benefits?

The latest version of the bill requires insurers to provide 10 essential health benefits mandated by the ACA, unless a state obtains a waiver to set its own benefit requirements. The ACA’s essential health benefits required insurance companies to cover 10 health services: ambulatory, emergency, hospitalization, maternity and newborn care, mental health and substance use disorder services, prescription drugs, rehabilitative services and devices, laboratory services, preventive care and chronic disease management, and pediatric services including dental and vision.

Beginning in 2020, states could set their own essential health benefits by obtaining a waiver.

At that point, state requirements could vary, as they did before the ACA was enacted. For instance, a 2009 report from the Council for Affordable Health Insurance, a group representing insurance companies, said 47 states had a mandate for emergency service benefits, while 23 mandated maternity care and only three mandated prescription drug coverage.

State Medicaid plans would not have to meet the essential health benefits requirement after Dec. 31, 2019.

Are there subsidies to help individuals buy insurance? How do they differ from the Affordable Care Act?

There are two forms of financial assistance under the ACA: premium tax credits (which would change under the GOP plan) and cost-sharing to lower out-of-pocket costs (which would be eliminated).

Let’s look at the premium tax credits first. They would be available to individuals who buy their own coverage on the individual, or nongroup, market. But instead of a sliding scale based on income, as under the ACA, the Republican plan’s tax credits are based on age, with older Americans getting more. (The plan, however, allows insurers to charge older Americans up to five times more than younger people, as we will explain later.)

The ACA tax credits also take into account the local cost of insurance, varying the amount of the credit in order to put a cap on the amount an individual or family would have to spend for their premiums. The Republican plan doesn’t do that. (See this explanation from the nonpartisan Kaiser Family Foundation for more on how the ACA tax credits are currently calculated.)

There are income limits under the GOP bill. Those earning under $75,000, or $150,000 for a married couple, in modified adjusted gross income, get the same, fixed amounts for their age groups — starting at $2,000 a year for those under age 30, increasing in $500 increments per decade in age, up to $4,000 a year for those 60 and older. The tax credits are capped at $14,000 per family, using the five oldest family members to calculate the amount. This new structure would begin in 2020, with modifications in 2018 and 2019 to give more to younger people and less to older people.

For those earning above those income thresholds, the tax credit is reduced by 10 percent of the amount earned above the threshold. For instance, an individual age 60 or older earning $100,000 a year would get a tax credit of $1,500 ($4,000 minus 10 percent of $25,000).

That hypothetical 60-year-old gets $0 in tax credits under the ACA. But if our 60-year-old earns $30,000 a year, she would likely get more under the ACA than the GOP plan: In Franklin County, Ohio, for instance, the tax credit would be $6,550 under the ACA in 2020 and $4,000 under the Republican plan. (This interactive map from the KFF shows the difference in tax credits under the health care plans.)

As for the cost-sharing subsidies available now under the ACA — which can lower out-of-pocket costs for copays and other expenses for those earning between 100 percent and 250 percent of the federal poverty level  — those would be eliminated in 2020. However, the GOP bill sets up a Patient and State Stability Fund, with $100 billion in funding over nine years with state matching requirements, that can be used for various purposes, including lowering out-of-pocket costs of a state’s residents. An additional $30 billion was added to this fund for other programs: $15 billion would be used to set up the Federal Invisible Risk Sharing Program, another reinsurance program, and $15 billion is set aside specifically for maternity and mental health coverage.

Small-business tax credits would end in 2020. The health insurance marketplaces stay, but the tax credits can be used for plans sold outside of those marketplaces. And the different levels of plans (bronze, silver, etc.) based on actuarial value (the percentage of costs covered) are eliminated; anyone can buy a catastrophic plan, not just those under 30 as is the case with the ACA.

What does the bill do regarding health savings accounts?

It increases the contribution limits for tax-exempt HSAs, from $3,400 for individuals and $6,750 for families now to $6,550 and $13,100, respectively. It allows individuals to use HSA money for over-the-counter drugs, something the ACA had limited to only over-the-counter drugs for which individuals had obtained a prescription.

There were so-called winners and losers in the individual market under the ACA. How would that change under this bill?

Both the current law and the Republican proposal primarily impact the individual market, where 7 percent of the U.S. population buys its own health insurance. As we’ve written many times, how the ACA affected someone in this market depended on their individual circumstances — and the same goes for the House Republicans’ plan. In general, because the ACA said that insurers could no longer vary premiums based on health status and limited the variation based on age, older and sicker individuals could have paid less than they had before, while younger and healthier individuals could have paid more.

The GOP plan allows a wider variation in pricing based on age: Insurers can charge older individuals up to five times as much as younger people, and states can change that ratio. Under the ACA, the ratio was 3:1. So, younger individuals may see lower premiums under this bill, while older individuals could see higher premiums.

Older Americans do get higher tax credits than younger Americans under the Republican plan, but whether that amounts to more or less generous tax credits than under the ACA depends on other individual circumstances, including income and local insurance pricing. Those with low incomes could do worse under the GOP plan, while those who earned too much to qualify for tax credits under the ACA (an individual making more than $48,240) would get tax credits.

We would encourage readers to use the Kaiser Family Foundation’s interactive map to see how tax credits may change, depending on various circumstances. “Generally, people who are older, lower-income, or live in high-premium areas (like Alaska and Arizona) receive larger tax credits under the ACA than they would under the American Health Care Act replacement,” KFF says. “Conversely, some people who are younger, higher-income, or live in low-premium areas (like Massachusetts, New Hampshire, and Washington) may receive larger assistance under the replacement plan.”

A few weeks after the bill was introduced, House Republicans, through an amendment, made a change to a tax provision to create placeholder funding that the Senate could use to boost tax credits for older Americans, as we explain in the next answer.

Also, some individuals with preexisting conditions could see higher premiums under the legislation, if they don’t maintain continuous coverage and live in states that received waivers for pricing some plans based on health status.

Which ACA taxes go away under the GOP plan?

Many of the ACA taxes would be eliminated.

As we said, the bill eliminates all fines on individuals for not having insurance and large employers for not offering insurance. Also, beginning in 2017, for high-income taxpayers, the bill eliminates the 3.8 percent tax on certain net investment income. The 0.9 percent additional Medicare tax on earnings above a threshold stays in place until 2023. The bill repeals the 2.3 percent tax on the sale price of certain medical devices in 2017 and the 10 percent tax on indoor tanning services (effective June 30, 2017). It also gets rid of the annual fees on entities, according to the IRS, “in the business of providing health insurance for United States health risks,” as well as fees on “each covered entity engaged in the business of manufacturing or importing branded prescription drugs.”

It reduces the tax on distributions from health savings accounts (HSAs) not used for qualified medical expenses from 20 percent to 10 percent and the tax on such distributions from Archer medical savings accounts (MSAs) from 20 percent to 15 percent. It lowers the threshold for receiving a tax deduction for medical expenses from 10 percent to 5.8 percent of adjusted gross income. (Originally, the bill lowered the threshold to 7.5 percent, but House Republicans changed that to create some flexibility for potential funding changes the Senate could make. A congressional aide told us that the change is expected to provide $85 billion in spending over 10 years that the Senate could use to boost the tax credit or provide other support for Americans in the 50-64 age bracket.)

And from 2020 through 2025, the bill suspends the so-called “Cadillac tax,” a 40 percent excise tax on high-cost insurance plans offered by employers.

Will young adults under the age of 26 still be able to remain on their parents’ plans?

Yes. The bill does not affect this provision of the ACA.

How does the bill treat abortion? 

It puts a one-year freeze on funding to states for payments to a “prohibited entity,” defined as one that, among other criteria, provides abortions other than those due to rape, incest or danger to the life of the mother. This would include funding to Planned Parenthood under Medicaid, which is most of the organization’s government funding. Under current law, Planned Parenthood can’t use federal money for abortions, except those in cases of rape, incest or risk to the mother’s life.

Also under the GOP plan, tax credits can’t be used to purchase insurance that covers abortion beyond those three exceptions. Health insurance companies would still be able to offer “separate coverage” for expanded coverage of abortions, which individuals could then purchase on their own.

How many people will have insurance under the plan, as compared with the ACA?

The nonpartisan Congressional Budget Office estimated that the legislation, as passed by the House, would lead to 14 million fewer people having insurance in 2018 and 23 million fewer insured in 2026, compared with current law under the ACA.
How much will the bill cost, as compared with the ACA?

CBO estimated that the legislation passed by the House would reduce federal deficits by $119 billion over the next decade, 2017-2026. It would reduce revenues by $992 billion, mostly by repealing the ACA’s taxes and fees, and reduce spending by $1.11 trillion for a net savings of $119 billion, according to CBO.

See the original article Here.

Source:

Robertson L., Gore D., Schipani V.  (2017 May 24). The facts on the GOP health care bill [Web blog post]. Retrieved from address http://www.factcheck.org/2017/03/the-facts-on-the-gop-health-care-bill/


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


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


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.


Don't Put Up with the Bull of Bullying

There’s no place for bullying and that’s especially true in the workplace, yet many employees bully their co-workers. So, how does this happen? It used to be that bullying was confined to the schoolyard, but now it’s spread to cyberbullying and workplace bullying. Now, if there’s a culture of bullying at an organization, often it’s repeated as people climb the corporate ladder even though they were bullied themselves when they held lower positions.

An article on the website Human Resource Executive Online titled, “How to Bully-proof the Workplace,” says that “80 percent of bullying is done by people who have a position of power over other people.” Let that number sink in. That means four out of five people in positions of power will bully their subordinates.

One possible reason for the high number is that bullying may be difficult to identify and the person doing the bullying may not even realize it. Either the bully, or the victim, could view the action as teasing, or workplace banter. However, when one person is continually picked on, then that person is being bullied. Likewise, if a manager picks on all of his or her subordinates, then that person is a bully.

It’s important for organizations to have policies in place to thwart bullying and not just for the toll it takes on employees. It also begins to affect productivity. Those being bullied often feel like their work doesn’t matter and their abilities are insufficient. Worse is that bullies tend to resent talented people as they’re perceived as a threat. So, bullies tend to manipulate opinions about that employee in order to keep them from being promoted.

Eventually, talented employees decide to work elsewhere, leaving the employer spending time and money to find a replacement. But the bully doesn’t care. It just means they get to apply their old tricks on someone who isn’t used to them.

At some point, someone will fight back. Not physically, of course, but through documentation. An employee who is being bullied should immediately document any and all occurrences of workplace bullying and then present those documents to someone in HR. Most likely, this will result in identification of the bullying, stoppage of it, counseling for both the bully and the victim, and, if not already enacted, policies to prevent it from happening again.


Are you ready for Pizza Night?

Our May Dish is brought to you by our very own Tonya Bahr

With her passion for educating employees and business owners on benefit options, Tonya is expertly suited as a Benefits Advisor here at Hierl.

Outside of work, Tonya is kept busy with her three children and their various extracurricular and athletic activities, including: basketball, soccer, football, track, dance and cheerleading. Like her children, Tonya leads an active lifestyle with activities such as: running, hiking, biking, working out and playing tennis. She also has a competitive streak! Challenge her to a round of bowling or even your favorite card game and have a good time!

When she isn't running all over the place,  Tonya favors two restaurants that feature dishes as appetizing as their dining atmospheres! Ruth's Chris Steak House and RED Sushi are places you HAVE to try at least once.

At home, Friday nights come with a family tradition: pizza night! Sausage pizza, to be exact.

"We put a blanket down on the living room floor and create a picnic while watching a movie. We're not picky about our pizza! Sometimes it's homemade, sometimes it's delivered, and sometimes it's frozen from the freezer.

Everyone takes turns picking the movie for the week. It's a great family tradition we've been doing for years and I hope my kids will continue it, or perhaps a healthier variation, with their families in the future."

Whether you decide to head to one of the local fine dining establishments or relax at home with a pizza and a movie, you're sure to have a great time! Thanks Tonya! Save us a slice of pizza!

 


Starting Early is Key to Helping Younger Workers Achieve Financial Success

Starting early is the best way to ensure dreams for life after work are realized, but when TIAA analyzed how Gen Y is saving for retirement, it found 32 percent are not saving any of their annual income for the future.

Knowing the importance of working with young people early in their careers to educate them about the merits of saving for a secure financial future, here are some approaches tailored to Gen Y participants:

  • Encourage enrollment, matching and regular small increases – Enrolling in an employer-sponsored retirement plan is a critical first step for Gen Y participants. Contributing even just a small amount can make a big difference, especially since younger workers benefit most from the power of compounding, which allows earnings on savings to be reinvested and generate their own earnings.

    Encouraging enrollment also helps younger workers get into the habit of saving consistently, and benefit from any matching funds. Emphasize the benefits of employer matching contributions as they help increase the amount being saved now, which could make a big impact down the line. Lastly, encourage regular increases in saving, which can be fairly painless if timed to an annual raise or bonus.

  • Help younger workers understand how much is enough – We believe the primary objective of a retirement plan is offering a secure and steady stream of income, so it’s important to help this generation create a plan for the retirement they imagine. Two key elements are as follows:
    • Are they saving enough? TIAA’s 2016 Lifetime Income Survey revealed 41 percent of people who are not yet retired are saving 10 percent or less of their income, even though experts recommend people save between 10 to 15 percent.
    • Will they be able to cover their expenses for as long as they live? Young professionals should consider the lifetime income options available in their retirement plan, including annuities, which can provide them with an income floor to cover their essential expenses throughout their lives.

      Despite the important role these vehicles can play in a retirement savings strategy, 20 percent of Gen Y respondents are unfamiliar with annuities and their benefits.

  • Provide access to financial advice – Providing access to financial advice can help younger plan participants establish their retirement goals and identify the right investments. By setting retirement goals early, and learning about the appropriate investments, Gen Y participants can position themselves for success later on.

    The good news is TIAA survey data revealed Gen Y sees the value financial advice can provide, with 80 percent believing in the importance of receiving financial advice before the age of 35.

  • Understand the needs of a tech-savvy and digitally connected generation – It’s important to meet this generation where they are—on the phone, in person or online. We’ve learned that this generation expects easy digital access to their financial picture, and we offer smartphone, tablet and smartwatch apps in response.
    • Engage Gen Y with digital tools - Choose ones that educate in a style that does not preach and allows them to take action. One way to reach Gen Y on topics such as retirement, investing and savings is through gaming.

      We’ve found that the highest repeat users of our Financial IQ game are ages 24-34, and that Gen Y is significantly more engaged with the competition, with 50 percent more clicks.

Perhaps more than any other generation, Gen Y needs to understand the importance of saving for their goals for the future even if it’s several decades away.  Employers play an integral role in kick-starting that process: first, by offering a well-designed retirement plan that empowers young people to take action; and second, by providing them with access to financial education and advice that encourages them to think thoughtfully about their financial goals—up to and through retirement.

See the original article Here.

Source:

McCabe C. (2017 April 14). Starting early is key to helping younger workers achieve financial success[Web blog post]. Retrieved from address http://www.benefitspro.com/2017/04/14/starting-early-is-key-to-helping-younger-workers-g?ref=hp-in-depth&page_all=1


Tornado FAQ: Before, During and After the Storm

Are you prepared for a tornado? Check out these great tips from Society Insurnce about what to do to protect yourself and others from the tornado by Shelby Blundell.

“It sounded like a freight train.” This is a common description from those who have experienced one of nature’s most violent phenomena: a tornado. Advances in research and technology have improved identification and measurement of critical elements of super cell storm systems, which makes predicting and identifying the development of a tornado far more effective. However, once the prediction is made or an actual tornado is identified, the responsibility falls on every individual to be prepared to respond appropriately for his or her own safety and well-being.

So, where do you begin? In this blog, I will share frequently asked questions and the answers I have learned through years of education and personal experience. I hold a master’s degree in disaster preparedness and have trained with the National Weather Service Severe Storm Prediction Center, but most importantly, I spent 20 years living in the heart of tornado alley. Let’s get started…

BE AWARE

Does my community have tornado sirens?  What do they sound like?  Can I hear them from my home or business?
It is standard practice for communities to have set days and times for testing tornado warning systems. If you do not know when this is, contact your local police department, emergency management office, or fire department to find out the test schedule. Then, be prepared to participate when the test is scheduled to occur. Make sure you can hear the siren and commit the sound to memory so you know what it means if you hear it again. Help your staff or family to know what this particular siren sound means. Let city officials know if you cannot hear a siren when the test was scheduled to occur; they can identify equipment failures, consider the need for system enhancements, and make appropriate changes to ensure you are properly alerted. Knowing the system test schedule can help you differentiate between a test and a life threatening event.

What is the difference between a tornado watch and a tornado warning?
Tornado WATCH: Be prepared! A tornado watch is issued by NOAA Storm Prediction Center meteorologists who monitor the weather 24/7 across the entire United States for weather conditions that are favorable for tornadoes. A watch area is typically large and can cover parts of a state or several states. A tornado watch means that tornadoes are possible in the area. Keep watch and be prepared for severe weather – and stay tuned to NOAA Weather Radio to know when warnings are issued.

Tornado WARNING: Take action! A tornado warning is issued by your local NOAA National Weather Service Forecast Office meteorologists who monitor the weather 24/7 over a designated area to identify tornados. A warning area is much more targeted and can cover parts of counties or several counties in the path of danger. A tornado warning means that a tornado has been reported by spotters or indicated by radar and there is a serious threat to life and property. Take action and find safe shelter!

Watch this video to learn more about tornado watches and tornado warnings!

HAVE A PLAN

Where do I go? What do I do?
The time to answer these questions is NOT when the storm siren sounds. Have a plan in advance. While tornadoes can happen anytime, according to the National Oceanic and Atmospheric Administration, tornado season runs between May and June in the southern Plains, June and July in the central United States, and earlier in the spring on the Gulf Coast. Even with amazing advances in technology, there may only be minutes – or even seconds – to respond when a tornado begins to develop and warnings are launched.

Am I prepared?
Use this checklist BEFORE you, your staff or your family are in the path of a storm:

  • Equip your business or home with a weather radio so you know when warnings are issued.
  • Identify the safest place to go in your business or home. A professionally-designed and installed storm shelter or safe-room provides the very best protection. Otherwise, the lowest level of the home or business should be used for shelter. Below ground level is always safest during a tornado – go to the basement if you have one.
  • A small room or hallway in the centermost part of the structure provides more walls and protection around you. In a business, this may be the restrooms or storerooms. At home, look to the bathroom; bathtubs are rather strong and provide a good source of shelter.
  • Stay away from all windows if possible! Avoid rooms with windows. And do not open windows! The theory that this will help equalize pressure and reduce damage is a myth and can actually increase the danger.
  • At home, have a “go bag” already prepared with things you might need for this or other emergency situations. A “go bag” can have flashlights, batteries, NOAA weather radio, water, snack bars, and medications – anything you feel you might need when regular life is disrupted and you may be displaced.
  • When sheltering, consider using common items, such as bicycle or motorcycle helmets, ski goggles, heavy coats, blankets, and even bed mattresses to provide additional protection.
  • Conduct tornado drills! Every business should identify where employees and customers will take shelter. Then, once a year employees should walk-through where to go (a drill!). Have an at-home tornado drill, too. Make sure loved ones know where to take shelter at home or on the road!

AFTER THE STORM

Is it safe? What do I do now?
Stay sheltered until you feel certain that the threat has ended. Many times tornadoes dissipate and then suddenly reform, or they may be followed by additional storm threats. Listen to the radio, police or fire officials, or other information sources to make sure it is safe.

  • Check for injuries and apply first aid as needed.
  • Watch out for dangerous debris or downed power lines.
  • Evacuate if directed to do so.
  • Let family, friends, and the authorities know you are safe. Consider using the American Red Cross “Safe and Well” website to help make communication easier.
  • Take photos of damaged property.
  • Consider using tarps to cover damaged areas to prevent further damage from additional rain or wind.
  • Do not go into damaged structures as they may not be structurally safe.

Don’t become complacent!
Always pay attention to the weather forecasts and warning sirens. The media may play up severe weather to grab viewers and over time it may lead to desensitization – but we must pay attention to the dangers. Generally, no location is immune from the possibility of a tornado. Tornadoes can be destructive and deadly, but a little bit of preparedness and a proper response can help minimize your risk of injury.

For more information on tornadoes and severe storms check out the following websites:

https://www.dhs.wisconsin.gov/climate/weather/tornado.htm

http://www.ready.wi.gov/tornado/default.asp

See the original article Here.

Source:

Blundell S. (2017 April 26). Tornado faq: before, during and after the storm [Web blog post]. Retrieved from address http://blog.societyinsurance.com/tornado-faq-storm/