The ABC's of employee benefits, Part 2
Published June 17, 2013 10:53 AM
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Updated June 17, 2013 4:33 PM
1 Min Read
Nondiscrimination provision ... Out of sight out of mind?
Just a reminder that we are still waiting for guidance on the nondiscrimination requirement for fully insured, nongrandfathered plans.
PTO plans gain popularity.
According to SHRM's 2012 Employee Benefits Survey, 51% of the survey participants offer a PTO program, up from 42% in 2009.
Quantify your costs.
Your annual health insurance premium renewal is not just based on trend, experience, and plan design anymore; its about trend, experience, plan design, and the financial impact of the health care reform provisions of that year. That said, in order to get a basic understanding of the future costs that will affect your organization, its important that you financially model your health insurance costs through at least 2018.
Retirement readiness concerns.
The 23rd annual EBRI Retirement Confidence Survey shows that Americans confidence in their ability to afford a comfortable retirement remains low 49% are not too confident or not at all confident. You may want to check the pulse of your population and see what opportunities are available through your 401(k) and EAP providers to assist.
State of retiree health coverage.
According to an EBRI survey on the state of retiree health benefits, 64% of companies offering retiree health benefits say they are somewhat or very likely to increase the retirees' portion of the premiums in 2013, and 53% said they are somewhat or very likely to increase cost sharing to retirees in 2014.
Top-notch employee communications.
Given the complexities of the health care reform provisions, coupled with the fact that 42% of respondents to a February 2013 Kaiser Health Tracking Poll have an unfavorable view of the Affordable Care Act, it will be especially important (and challenging) to communicate effectively to employees.
Understand this Very important ACA provision.
Starting in 2014, the ACA will impose a new tax on health insurance that is expected to exceed $100 billion over the next 10 years according to the Joint Commission on Taxation. According to a 2011 report by Oliver Wyman, this tax will increase premiums in the insured market from between 1.9% and 3.7% over the next few years. If you offer a fully insured plan, youll want to better understand how this will affect your health insurance plan, and certainly make senior management aware.
Wellness accountability.
According to SHRM's 2012 Employee Benefits Survey, over the past five years, benefits that reward employees for improving their health have increased. The percentage of employers offering health and lifestyle coaching jumped from 33% in 2008 to 45% in 2012, and rewards/bonuses for participating in a health and wellness program increased from 23% in 2008 to 35% in 2012.
X-amine play or pay.
Even if youre planning to continue to offer medical insurance to employees in 2014, don't forget that such insurance must be deemed affordable or else you will face a penalty. As such, perform an affordability analysis.
Your wellbeing.
The complexities and pace of today's benefits environment can take a major toll on the best benefits professionals. Don't forget to stop and take a deep breath periodically.
Zero in on exchanges.
The HHS has delayed the opening of SHOP exchanges for small businesses until 2015 but there is still much to think about: play or pay and plan affordability; how you want to communicate the exchange opportunity to employees; reviewing the value of offering employee coverage through a private exchange.
