Health Benefits Could Give Employers a Competitive Edge

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Companies face tough competition when it comes to attracting quality employees. According to a leading job placement firm, Manpower Group, 69% of U.S. companies report talent shortages. This is the highest percentage in over a decade. In order to stay competitive, many companies have started offering a wider range of benefits. Although benefits like retirement savings plans and life insurance appeal to many, nothing matters quite as much as health insurance.

Health Insurance Provides Peace of Mind for Employees

As the costs of healthcare rises and employees worry about their health and the health of their loved ones, health insurance benefits become more important to workers. This year, it’s expected that many people that put off routine healthcare in 2020 will visit their doctor. Many more will seek out the COVID-19 vaccine as it becomes available. Employers that do not offer good health insurance benefits will likely find it difficult to attract and retain talented employees in the next few months.

In addition to health insurance benefits for employees, employers should consider offering health benefits to the family members of employees as well. Many workers worry about how they will pay for a major health event and offering health insurance to the spouse and children of employees can provide peace of mind. In fact, this might be the reason a candidate chooses one company over the next.

80% of respondents to a recent survey conducted by the American Institute of Certified Public Accountants reported they would choose a job with benefits over the identical job with 30% more salary but no benefits. This says a lot about what candidates look for when searching for a job. Based on these results, companies that offer an attractive employee benefit package could stand out above their competition, even if they offer a lower salary.

Final Thoughts

Employers have many things to consider in the upcoming months. As businesses attempt to regain their footing and navigate through difficult economic times, they’ll need talented staff to help grow their business. It’s crucial that leaders do all they can to ensure the best candidates don’t pass them by. Offering an attractive benefits package with health insurance benefits for employees and their family members could make all the difference in the world.

MEBO offers employee benefits, custom tailored to the unique needs of employers. We help businesses develop benefit plans that gets them noticed. Please contact us for more information or to schedule a consultation.

 

Employer Insurance Trends for 2021

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The New Year provides a chance for everyone to look towards the future. This has proven especially important this year as many of us wish to leave behind the stress and chaos of 2020. For employers, the New Year represents a chance to evaluate current processes and policies and adjust to meet the changing needs of the company and its employees.

When it comes to employee health insurance benefits, employers could benefit from learning about employer insurance trends for this year.

Health Insurance Rates Rise

According to a survey conducted by Business Group on Health, a non-profit organization dedicated to helping companies optimize business performance through health improvement, innovation, and health care management, large employers expect insurance rates to rise 5.3 percent this year. Although this may seem like a large increase to some, it’s only slightly higher than the 5% increase projected by employers over the past five years.

The 2021 rate increase is due to rising uncertainties surrounding COVID-19 and predicted healthcare needs of Americans throughout the year. Several different factors could impact healthcare costs including COVID-related care, vaccines, and whether or not people will catch up on much needed healthcare they’ve missed throughout the pandemic.

Employers Add New Resources to Employee Health Plans

Despite the economic repercussions of the pandemic, employers seem to understand the importance of providing employee health benefits during these uncertain times. This is different than the recession in 2008, when a high percentage of employers cut back on employee health benefits. It’s not expected that companies will make significant changes to reduce costs in their medical plans this year. In fact, many companies plan to add new resources to their employee health plan.

The survey found that 80% of respondents believe virtual care and telemedicine will play a significant role in how care is delivered in the future. 57% plan to add more virtual care options to their health plan in 2021.

In light of the pandemic and the stress it places on employees, many employers have also begun expanding virtual services to include the delivery of health coaching and emotional well-being support. 91% of respondents stated they plan to offer tele-mental health to employees this year.

Employers Consider New Options for Employee Benefits

As employers navigate tough financial and business decisions in 2021, they may wish to consider other, more cost-effective employee health plans. A popular option, level-funding allows employers to cap the total amount of healthcare spend, while providing employees access to highest quality healthcare. This option provides transparency for employers, allowing them to see exactly where and how they spend their healthcare dollars. Unlike fully insured health plans, employers retain 100% of their savings when claims are lower than expected. This could prove especially beneficial in 2021 as businesses attempt to regain their footing in these tough economic times.

MEBO offers employee benefit packages, custom tailored to the needs and requirements of each organization we work with. Please contact us to learn how we can help you create an employee benefit plan that fits your needs and budget.

 

 

Employers Re-evaluate Their Employee Health Benefits in Light of the Pandemic

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COVID-19 impacted people around the world. For employers, COVID-19 created significant challenges and has changed the way that businesses function and thrive. As small businesses and large corporations attempt to find their footing in these trying times, the value of good employees becomes clear. Without hard-working employees, businesses stand very little chance of attracting and retaining new clients.

As workers face the challenges of remote work, stress levels rise to an all-time high. Even employees that have already returned to the office face mounting stress as they attempt to balance work and life. This is especially true for workers with small children or elderly family members at home. It’s crucial that employers provide adequate employee support and employee health benefits during this time.

After the pandemic, it will likely take a long time for employees to recover from the economic, emotional, and mental health effects of COVID-19. Taking a comprehensive approach to employee benefits can help put employees at ease and provide a sense of security.

Communication is Key

According to the October 2020 Leading Indicator Systems (LIS) Workforce Listening Study, two-thirds of all workers believe the worst is yet to come. When compared to the May 2020 LIS Workforce Study, 45% more workers are extremely worried about being able to take care of their family. The study also found that 75% of workers find it difficult to work under current conditions.

It’s more important than ever that employers show their employees they care about their wellness and support them. In addition to communicating regularly with employees and using surveys or other methods to evaluate employee emotional health and wellbeing, employers should communicate how they plan to support employees and their families throughout the year.

It’s important that employers reduce stigma around mental health and encourage employees to seek help when needed. Options like telehealth allow patients to connect with mental health providers via video conferencing software. This provides a convenient option and reduces stress around visiting a crowded office building. It’s also important that employers take some time to focus on mindfulness and gratitude in the workplace. This can help cultivate happiness and increase employee satisfaction.

Employers should discuss the importance of preventative care and physical well-being. These discussions should include tips on how employees can get the most out of their employee health benefits. If employers haven’t implemented or revised their employee health benefit plan, now is the time to do so. Employers that do not offer competitive employee health benefits will likely find it difficult to retain employees this year.

Orange County Employee Benefits Partner

MEBO offers customized employee benefit plans to meet the changing needs of employers and their staff. We work directly with our clients to evaluate their needs and develop a comprehensive plan. Please contact us for information about our services.

 

 

 

Most Common Employee Benefits

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Employees spend about half of their waking hours working. Great employers understand the strain this can put on their staff. They know that offering perks and benefits not only helps attract new talent, it also keeps employees engaged. This is key to retention.

Research conducted for the Robert Half 2021 Salary Guide discovered the most common benefits companies offer. While a lot of these benefits have been the standard for many years, a few only recently gained popularity among employers.

Employers that wish to retain their employees could benefit from adding the following perks and benefits.

Employee Health Insurance

Robert Half surveyed over 500 North American HR managers. Employee health insurance was the number one benefit offered. According to the survey, 68% of employers currently offer health insurance benefits.

As the pandemic continues to spread throughout much of the country, health benefits will become increasingly important. Employers that do not offer health benefits this year will likely find it difficult to retain their employees.

Paid Time Off

An important benefit, 63% of companies surveyed offer paid time off. While most people think of paid time off as vacation pay, many companies also offer paid time off for illness, bereavement and other personal time off.

Dental Insurance

Poor dental health is associated with serious health problems including heart disease and respiratory infections. Perhaps this is why 59% of companies offer dental insurance to their employees.

Retirement Savings Plan

Offering a retirement savings plan is a great way to encourage employees to save for retirement. Many companies match employee contributions. This can increase employee satisfaction and retention.

Life Insurance

The fifth most common benefit, life insurance and accidental death and dismemberment (AD&D) insurance provide employees with peace of mind. Providing this important benefit lets employees know they’re cared for and supported.

Flexible Work Schedules

An increasing number of employers have started allowing employees to set their own work schedules. Employees may choose to work four longer shifts as opposed to five regular shifts, or split their workday into chunks of time. This “windowed” workday allows employees to balance their personal and professional obligations. 46% of companies surveyed offer flexible work schedules.

Remote Work Options

COVID-19 highlighted the importance of working from home. In fact, many companies have decided to make remote work permanent. When employees work from home, it allows for adequate social distancing and allows employers to reduce the amount of money spent on office space and utilities.

Offering benefits and perks can increase employee satisfaction and retention. If you’re unsure where to start, MEBO can help! We work directly with our clients to analyze their needs and develop a customized benefit plan. Please contact us for more information.

 

 

 

Investing in Employee Wellness

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The success of an organization relies on its employees. When employees suffer from mental and physical ailments, it can impact the entire organization. In addition to affecting productivity, when employees miss work due to illness, it puts additional strain on other employees and management. Unfortunately, employee stress can increase the chance of illness and absenteeism. With so much at stake, it’s crucial that organizations put more focus on employee health and wellness.

Although many people consider employee wellness a Human Resources issue, it impacts the entire business. How employees feel both mentally and physically builds the foundation for the growth, stability, and sustainability of an organization.

Implementing an effective employee wellness program could be especially beneficial now, as companies around the U.S. attempt to thrive in a struggling economy.

What Is An Employee Wellness Program?

Employee wellness programs include a set of initiatives implemented within an organization to promote employee health and wellness. Although there isn’t an official definition or plan for implementation, most organization focus their efforts on physical, emotional, financial, social, and occupational wellness. Taking a well-rounded approach to wellness can help organizations improve employee health and quality of life.

Lower Healthcare Costs

When employers invest in employee wellness, they provide numerous benefits to employees and themselves. Maintaining a healthy, active lifestyle reduces the risk of chronic diseases and major health problems. Numerous studies have found that businesses pay less per person per year for wellness program participants.

Increased Productivity in the Workplace

In addition to lower healthcare costs, employees that participate in employee wellness programs become more productive, saving employers on productivity costs. Physical activity and health are linked to improved memory and focus.

The Centers for Disease Control & Prevention (CDC) estimates that productivity losses related to personal and family health problems cost U.S. employers around $1,685 per employee per year, or $225.8 billion annually. In fact, the indirect costs of poor health may exceed the direct medical costs incurred.

Final Thoughts

Investing in employee health and wellness benefits both employees and employers. In addition to reducing healthcare costs, improving health, and boosting productivity, wellness programs build comradery and inspire healthy habits that can last a lifetime. Perhaps this is why around 80% of larger companies and over 50% of smaller companies offer these important programs.

MEBO offers customized employee benefit plans to organizations both large and small. Please contact us for details.

 

 

Understanding Your Employee Health Benefits is More Important Than Ever Before

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Employees that lost their job at the start of the pandemic and those that left to care for children or elderly family members have begun searching for new employment. One of the top factors that employees consider when deciding on a job is the type of benefits offered. While retirement benefits remain high on the list of requirements, health insurance tops the list. The better the health insurance benefits, the more likely the company can entice top talent. This is especially true now, as COVID-19 continues to spread throughout much of the country. In fact, many employees will take less pay when returning to work if the health benefits are good.

While it’s more important than ever for companies to offer health benefits to employees, employers need to take a close look at the benefit plan they offer. During these uncertain economic times, employers need to be extremely careful to control spending. Employers currently offering a fully insured plan might want to consider other options. While fully insured plans provide an excellent choice for many organizations, self-insured health plans offer more flexibility, greater cost savings, and visibility into healthcare spending.

Fully-Insured Health Plans

With a fully-insured health plan, employers pay a premium each month to the insurance carrier. Rates are fixed each month based on the number of employees enrolled. The insurance carrier pays healthcare costs as outlined in the policy purchased by the organization. The employee pays all co-pays and deductibles. This is the most familiar type of employer-sponsored health plan.

Self-Funded Health Plans

Employers run their own self-insured or self-funded plan. They do not purchase their health plan from an insurance carrier. Depending on the needs and budget of the organization, the employer determines the fixed and variable costs for the plan in advance. Fixed costs include all administrative fees. Variable costs include health care claim costs, which can vary from month to month. While self-funded plans offer flexibility and lower costs, they carry risk as well. If an employee or their dependents require extensive treatment or care, the employer pays for these expenses.

Reducing Risk

Employers that wish to reduce risk can take a level-funded approach to self-funding. With a level-funded approach, the employer estimates the total amount of money spent on healthcare claims each month. They then purchase stop-loss insurance. When healthcare claims exceed the estimated amount, the stop-loss insurance covers the difference.

Deciding On A Health Plan

When deciding on the type of health plan to offer, employers need to look at several different factors. The type of industry and size of the organization can impact health plan requirements. It’s recommended that employers speak with an employee benefits expert for advice.

MEBO offers self-funded, level-funded, and fully-insured health plans to organizations of all shapes and sizes. Please contact us for information about our services.

Retain Your Savings with Level Funding

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Integrating a new health plan strategy can reduce the amount of capital a business spends on overall health claims costs. With the high cost of healthcare in Southern California, most organizations agree that any cost-savings is worthwhile. However, many employers find they lose half of these savings to the company managing their health plan. At MEBO, we strive to help employers retain their savings and achieve the greatest benefits from their employee health plan.

By taking a Level-Funded approach to self-funding, organizations get the predictability of a fully-insured health plan and the cost-savings and flexibility of self-funding. Unlike a fully insured plan, employers retain 100% of their savings when claims are lower than expected.

Enjoy Increased Flexibility, Transparency, and Predictability

When selecting an employee health plan, many organizations opt for a Level Funded approach because of the predictability, visibility, and financial protection it offers. Monthly costs of a Level Funded plan include stop-loss insurance premiums, administrative fees, and estimated claims expenses.

With Level Funding, monthly costs are established in advance and employers pay a fixed or “level” amount each month. Employers also receive ongoing claims data. This valuable data makes it possible for employers to see exactly where and how their healthcare dollars get spent.

At the end of each year, if an employer’s estimated health care payments total more than the actual claim costs, the employer receives a refund for the difference.  Alternately, if claim costs exceed the estimated limit, stop-loss insurance covers the additional expense. Level Funding offers transparency and flexibility. Stop-loss insurance limits risk and caps financial exposure.

Flexible Approach

Level Funding is a type of self-funding. This allows employers to tailor the plan to meet the changing needs of their organization. Based on claims reports, employers can quickly locate areas that impact claim costs. They can then adjust their plan as needed. Based on health claim data, employers can also choose to implement strategies like employee education on wellness and preventative care.

Is Level Funding Right for Your Organization?

While Level Funding offers numerous benefits, it might not be the best fit for every business. It’s important that leaders fully analyze their needs and determine how their company will allocate the cost savings.

MEBO has worked with numerous employers to help them locate ways to reduce costs, increase transparency, decrease the frequency and severity of claims, and improve health outcomes for employees. Please contact us for more information about Level Funding, Self-Funding, and Fully Insured health plans. We look forward to hearing from you!

 

Top Reasons Your Company Should Offer Health Insurance Benefits

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Employers have many choices when it comes to the benefits they offer. While paid vacations and retirement plans can help attract top talent, nothing entices new hires more than health benefits. Providing a quality health plan reduces the number of sick days employees take. It also increases productivity and morale.

Although large companies with 50 or more full-time or full-time equivalent employees must provide health benefits per ACA rules, many smaller companies choose to offer benefits as well. According to the Kaiser Family Foundation (KFF), 31.2% of California businesses with less than 50 employees offered health benefits in 2019. According to Mercer’s Global Survey, 19.88% of all U.S. businesses are currently considering updating their benefits plan to better meet employee needs and 12.8% have already expanded healthcare support or benefits. An additional 16.4% plan to add or expand voluntary health benefits in 2021.

Business owners still unsure of whether to offer health insurance to their employees might want to consider the following reasons.

Saves Money on Taxes

When it comes to taxes, offering an employee health plan provides significant benefits. Employers that offer health insurance can take advantage of massive tax breaks.

Employer-provided health insurance premiums are tax-exempt, meaning employers can reduce or eliminate their tax duties altogether. Another benefit, employers can deduct any contributions they make on behalf of their employees. Paying for health benefits saves employers money over paying for higher salaries. Money spent on health benefits isn’t subject to payroll taxes or worker’s compensation premiums.

Provides Access to a Larger Network of Doctors & Hospitals

When employers purchase group insurance they gain access to a much larger network of doctors and specialists than available through individual health plans. In California, individual networks are generally two-thirds the size of group insurance networks.

Increases Productivity and Employee Morale

Offering health insurance provides employees with access to preventative care. Receiving regular check-ups helps catch health problems sooner, reducing sick days and the likelihood of serious illness.

Healthy employees have better focus and less stress. This boosts productivity in the workplace. Most employees state they would prefer good health benefits over higher pay. Offering health benefits improves employee satisfaction and helps attract new candidates.

Help Is Available

Employers often struggle to understand the different options and terminology associated with choosing a health plan. Fortunately, organizations do not have to go through the process alone. An experienced employee benefits specialist can help employers determine the right insurance plan for their organization. These individuals have years of experience and understand how to set everything up and ensure compliance with state and federal laws. They can also help answer questions employees might have regarding their health benefits.

MEBO offers employee benefit plans customized to meet the needs and requirements of businesses both large and small. Please contact us for information about our services.

Choosing the Right Health Plan for Your Employees

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Many employers find it difficult to locate quality staff. Offering a good benefits package is an excellent way to attract top talent. While it isn’t necessary for most small businesses, offering an employee health plan increases employee satisfaction and improves employee retention rate.

ACA Rules Regarding Employee Benefits in California

Under current ACA rules, companies in California with fifty or more full-time equivalent employees (FTEs) must offer ACA-compliant healthcare coverage. Organizations that do not comply with this law could face a penalty of $2,570 per eligible full-time employee.

Part-time employees that work less than 30 hours per week are not entitled to health benefits under this law. However, organizations with several part-time employees may still need to provide health benefits to full-time staff members. Two part-time employees that each work an average of 15 hours per week is equal to one full-time equivalent employee.

Even though organizations with less than 50 full-time equivalent employees do not need to offer health coverage to comply with ACA rules, doing so provides numerous benefits. Employers that offer health benefits can deduct all premiums paid throughout the year. In addition to impressive tax write-offs, offering health benefits increases employee satisfaction, attracts quality candidates, and boosts productivity. When employees receive regular and preventative healthcare, they’re less likely to call out sick and experience major health problems in the future.

Fully Insured VS. Self-Funded Health Plans

When deciding on the type of employee benefits to offer, employers can choose between a fully insured health plan or a self-funded health plan. While a fully insured health plan costs the same each month, self-funding allows organizations to pay for only what they use.

Level funding is the most popular form of self-funding.  Taking a level-funded approach provides organizations with control over the frequency and severity of claims. This increases predictability and keeps costs low.  A level-funded health plan provides the same cost-savings and flexibility as a self-funded health plan, with the predictability and financial security of a fully insured health plan.  By purchasing stop loss insurance, organizations in a self-funded arrangement limit their exposure to risk. Stop loss insurance protects the organization from large or excessive claims. This reduces financial risk, increases control over spending, and provides peace of mind. With stop loss insurance, the employer knows there is a limit on what they could potentially spend each year.

Perhaps the greatest benefit of self-funding is the transparency it provides. Self-funding allows employers to see where the largest claims are coming from. They can then use supply chain management strategies to control costs, while improving health outcomes for their employees. Self-funding offers increased flexibility over fully insured plans, as employers can adjust their plan and approach to meet the changing needs of their organization.

Employers considering self-funding often worry about ACA compliance. Self-funded or self-insured plans are not subject to state insurance laws and are exempt from certain ACA rules. In order to ensure ACA compliance, employers need to file the ACA’s 1094-B and 1095-B series with their taxes.

Employee Health Plans

Although self-funded plans used to be reserved for California organizations with 100 employees or more, new strategies allow smaller companies to take advantage of the cost-savings, transparency, and control that self-funding offers. However, it’s important that leaders fully analyze their needs when deciding on the type of health plan to offer. Employers should consider speaking with an experienced employee benefit specialist for advice.

Located in Orange County, California, MEBO develops customized employee benefit plans that meet the unique needs and goals of our clients. We work directly with each of our clients throughout the entire process, helping them mitigate risk and keep costs low.

Please contact us for more information about our services.