Tag Archive for: employee benefit plan

Looking to Hire the Class of 2021? Add these Employee Benefits Now

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Studies show that employers are planning to hire 7.2% more college graduates from the Class of 2021 than they did from the Class of 2020. While young talent can bring fresh ideas to the workplace, employers may need to adjust their benefits to attract new applicants.

The global pandemic has changed the way that workers view their workday and college graduates are no exception. Many of these graduates finished their education at home, without any in-person interaction from professors or peers. This has created resilience and a strong work ethic for most. It has also led to a much more independent workforce.

What the Class of 2021 Really Wants

In addition to adequate compensation, top benefits requested by the Class of 2021 include medical coverage, 401(k) match, and flexible work hours. Increased interest in 401(k) match and health benefits reflects the younger generation’s fears surrounding financial insecurity and potential health issues caused by another pandemic. This generation of workers are more interested in ensuring future protection for themselves and their families.

Above anything else, young talent wants quality health benefits that include mental health coverage. In a LaSalle Network report, 40% of recent graduates listed mental and emotional health as a top concern when entering the workforce. Providing quality benefits may be just what employers need to attract and retain young talent.

Current Labor Shortage Impacts Employers Around the U.S.

ManpowerGroup recently reported that 7 in 10, or 69% of all companies have experienced talent shortages and difficulty hiring this year. In late April, there were over 9.3 million open jobs in the United States. Currently, the U.S. is experiencing both a labor shortage and record-high unemployment rates. Many states have begun reducing unemployment benefits in an effort to get more people to apply. However, this is doing very little to resolve the labor shortage. According to BTIG, only 3% of individuals were earning enough from unemployment to have no financial need to return to work.

Flexible Work

Employers that wish to attract quality talent need to consider the reasons why workers don’t want to return to the office. Before the global pandemic, employers told workers they needed to come to work each day. Forced closures and reduced occupancy rates pushed employers to consider alternatives to the traditional workday. Millions of American workers shifted to remote work in a matter of months. While this presented challenges at first, over time most workers and their employers realized the benefits of working from home.

As we move past the pandemic, it’s become much harder for employers to justify in-office attendance. Many workers have decided they simply will not go back to a job that does not offer flexible work arrangements. While some workers may work remotely full-time, many would be willing to accept a hybrid schedule with 2-3 days spent in an office environment.

MEBO works with leaders to create customized employee benefit plans. Please contact us for information about our services or to schedule a consultation with one of our benefit specialists. We look forward to hearing from you.

 

New HHS Rule Protects Consumers from Surprise Billing – Here’s What it Means for Employers

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The term “surprise medical bill” describes charges incurred when an insured person inadvertently receives care from an out-of-network provider. This type of situation is common during emergencies and other events where the patient has no control over who provides their care. Patients picked-up by an ambulance or taken to the nearest emergency room may later learn that the hospital, ambulance, or physicians were not covered by their health insurance. Sometimes patient’s receive care at an in-network facility only to find out later that the provider or specialist doesn’t participate in their health network.

Surprise Medical Bills Prevent Patients from Seeking Care

In addition to costing thousands of dollars each year, surprise medical bills may also prevent patients from seeking care. A public opinion survey conducted by The Harris Poll on behalf of the American Heart Association found that 49% of U.S. adults say fear of unexpected medical bills prevents them from receiving care. 44% of those surveyed said they would not have the money to pay for an unexpected medical bill of $1,000 or more.

HHS Interim Final Rule

On July 1, 2021, the Department of Health and Human Services (HHS), the Department of Labor, the Department of the Treasury, and the Office of Personnel Management (OPM) released an interim final rule designed to protect patients from financial hardship due to surprise medical billing. The interim final rule takes effect on January 1, 2022 and restricts excessive out-of-pocket costs from out-of-network billing and balance billing. While Medicare and Medicaid already ban these types of surprise charges, the new HHS rule extends protections to individuals insured through an employer-sponsored or commercial health plan.

The new HHS rule bans surprise billing for emergency services. It also bans high out-of-network cost-sharing for most emergency and non-emergency services, out-of-network charges for ancillary care provided at an in-network facility, and out-of-network charges without advance notice.

New Surprise Billing Rule May Help Employers Save Time & Money

While most people will agree that the new rule will help consumers better manage their healthcare spending, many employers wonder what the new HHS rule means for them. Fortunately, most of work to ensure compliance will be done by insurance carriers, third-party administrators (TPAs), and healthcare providers. However, it is important that employers work closely with their carrier and TPA partners to ensure their plans are taking the necessary steps to compliance.

MEBO provides employee benefits plans custom-tailored to the unique requirements of organizations today. Our team of benefits specialists can help you locate a compliant health plan that meets your needs and budget. Please contact us for information about our services.

 

 

 

 

New Ruling Requires California Employers to Reconsider Their Wage Premium Payment Practices

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On July 15, 2021, the California Supreme Court ended a long-standing dispute regarding premium pay. The ruling surprised many California employers and left organizations across the state scrambling to catch-up. It’s crucial that employers learn all they can about this new ruling and how it might impact their business.

Ferra v. Loews Hollywood Hotel, LLC

Earlier this year, a bartender in California filed a class action complaint against her employer alleging she was not properly compensated for noncompliant meal and rest breaks. The complaint alleged the employer omitted nondiscretionary incentive payments when calculating premium payments. This is common practice, and many California employers have used base hourly rate to calculate premium pay.

The trial and appeal courts ruled in favor of the employer, stating that premiums payments should be based on employee base hourly rate. However, this ruling was overturned by the Supreme Court of California. The California Supreme Court ruled that the regular rate of compensation under meal and rest break rules must encompass both hourly wages and all nondiscretionary payments for work performed by the employee.

California’s Meal and Rest Period Rules

In California, all nonexempt employees are entitled to a 10-minute rest period for every four hours or majority thereof of work performed. Employees must also receive a 30-minute unpaid meal break for every five hours worked. Employees can choose to waive their meal break if they work six-hours or less. Employees that work ten hours or more are entitled to a second meal break. However, employees can waive this break if they work twelve hours or less in one day.

Meal and rest period rules and premiums are meant to encourage employers to provide employees with regular breaks throughout the workday.

What Does This Mean for Employers?

Starting immediately, employers need to determine premium pay for missed meal and rest breaks in the same way they would calculate overtime pay.  This ruling is retroactive, meaning employers may face liability for past practices of paying premiums at the base rate of pay. Employers are strongly encouraged to review premium payment history for the past four years and issue true-up payments to ensure compliance with the new ruling.

MEBO offers employee benefit plans, custom-tailored to the needs of organizations today. We strive to provide employers with the tools and information needed to excel in today’s competitive and ever-changing markets. Please contact us for information about our services.

 

 

 

 

Rewarding Employees – What Works and What Doesn’t

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Most employers understand the benefit of rewarding employees. A well-planned, strategic employee reward system increases productivity, encourages teams to work harder, and may help employers attract and retain top talent. Unfortunately, 82% of employed Americans don’t feel that their supervisors provide adequate recognition for their efforts. This is bad news for employers, as employees that feel unappreciated are more likely to leave their current job.

Developing an Effective Employee Reward System

It’s not that hard to provide employees with proper recognition. However, employers need to take some time to learn what their staff actually wants. It’s also important to determine how, when, and what employees will receive. The right employee rewards system should compensate employees for both performance and behavior.

While it’s easy to recognize and address employee performance, deciding which behaviors to reward is a little more challenging. Employers should focus on rewarding behaviors or activities that benefit the company or its employees.

Although giving out generic rewards to every employee may seem like an easy-to-manage solution, this won’t motivate all employees. Each employee is unique. Employers that offer personalized rewards tend to see better results.

Types of Employee Rewards

When considering employee rewards, most employers think of financial compensation. Although it’s true that most employees appreciate this type of reward, it’s important to develop a reward system that addresses short-term as well as long-term company goals.

Providing regular feedback, even negative and neutral feedback helps employees better understand how they’re doing and where they need to improve. Feedback helps keep employees engaged and teams motivated. A simple acknowledgement or recognition of a job well done could go a long way towards improving employee satisfaction and retention.

Benefits are an important part of any strategic reward system. Many employers require employees to work a specific length of time and/or put in a certain amount of effort before they can access certain benefits. While this can have a positive impact on employee retention and performance, employers should take care when choosing the employee benefits they offer. Employers that do not offer comparable benefits to their competitors will probably find it difficult to attract good employees.

Experienced Employee Benefit Specialists

MEBO offers employee benefits packages, custom-tailored to the unique needs of organizations today. Our benefits specialists have years of experience working with employers from a wide range of industries. Our approach ensures employees receive the benefits they want, with the price and transparency employers need. Please contact us to schedule a consultation.

 

 

 

How Remote Work is Reshaping the Workplace

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Throughout the pandemic, hundreds of thousands of employees around the U.S. transitioned to working from home. In many cases, this was necessary to prevent the spread of disease. Now that the worst of COVID-19 is behind us and cities and states are starting to relax restrictions, employers are seriously considering the benefits of offering this option in the future.

When employees work remotely, operating costs go down. Businesses can downsize, or in some cases completely eliminate, their office space. Even organizations that choose to keep their existing office space pay less for electricity and other utilities when a portion of their staff stays home.

It’s not just employers that benefit when employees work remotely. Employees that work from home experience less stress and greater satisfaction in their work. This can lead to better performance and improved productivity. Research from Stanford University found that employees that work from home are 13% more productive than in-office workers.

Employees Want Flexible Work Options

Employers still considering whether they should allow employees to continue working remotely should consider the possible implications of bringing employees back to the office full-time. A recent survey found that 65% of employees would like to work as full-time remote employees. Another 31% would prefer a hybrid work environment and 54% of office workers would leave their job for another that offers flexible work time.

Businesses Relocating to Save Money

Until recently, businesses have set-up headquarters in densely populated cities. This often comes with a high price tag. Today, organizations are realizing the benefits of relocating to smaller, more affordable areas. This lowers the cost of living for employees and allows business owners to take advantage of lower taxes. Allowing employees to work remotely enables companies to further reduce their costs and may allow for the elimination of corporate headquarters entirely.

Companies that decide to re-open offices in expensive areas run the risk of losing valuable employees. Many people cannot afford the cost of living in major cities. Another issue, commuting to and from work costs employees a lot of time and money. With remote work becoming more common, companies that do not offer flexible work options will have a hard time attracting talent and retaining employees.

Conclusion

As we all begin to adjust to life post-pandemic, it’s important for employers to consider the changing needs of their staff. Offering flexible options may mean the difference between success and failure in the near future.

An experienced employee benefits firm, MEBO helps employers create customized benefits plans. Please contact us for information about our services.

Is Offering Voluntary Benefits More Important Than Ever Before?

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Most employers understand the importance of offering competitive benefits to their employees. A great benefits package could mean the difference between a new hire and a missed opportunity. Unfortunately, many employers don’t know which benefits to offer. Fortunately, with the right help, most businesses can build a benefits package that attracts the attention of quality employees.

In addition to health insurance and retirement plan benefits, employers should consider offering voluntary benefits as well. Voluntary offerings allow employers to build a benefit package that meets the specific needs of employees. This might be especially beneficial now, as employees have increased interest in preparing for the future.

Supplementing existing core benefits with more personalized benefits helps support employees at a time when they need it most. Many employees have witnessed and experienced the impact of COVID-19 first-hand. Offering voluntary benefits could give employers a competitive edge when recruiting new candidates.

Off-Cycle Enrollments Becoming More Common

Traditionally, benefit cycles have been based on core offerings. Today, more employers are electing off-cycle enrollments. This approach allows employers to highlight and focus specific benefits that might be of particular interest to employees. Off-cycle enrollment also provides employees with more time to evaluate and review the types of benefits offered.

Types of Voluntary Benefits to Offer

According to the International Foundation of Employee Benefits Plans’ (IFEBP) Employee Benefits Survey, employee benefits make up around 60% of an organization’s total employee compensation. While the right employee benefits package could help candidates choose to work for one company over the next, it’s important that employers decide carefully which benefits to offer.

IFEBP found that 88% of companies now offer Employee Assistance Programs (EAPs) and other wellness benefits. Newly emerging employee healthcare benefits include fertility services, transgender-inclusive benefits, and genetic testing services. Several companies have already begun offering these benefits with much success. Millennials especially want to see companies offering benefits that show inclusion.

As we make the shift back to pre-pandemic times, benefits like financial planning and counseling, tuition reimbursement programs, onsite fitness centers and wellness programs, back-up childcare, and elder care are increasing in popularity. These benefits help protect employees and their families when the unexpected occurs.

The IFEBP survey also found that companies are offering employees more types of paid leave than ever before. Several organizations around the U.S. now offer paid leave for bereavement, jury duty, volunteering and community service, personal days, maternity and paternity leave, adoption, and family/caregiving reasons.

Final Thoughts

If the pandemic taught us anything, it’s the importance of preparing for the future. Offering voluntary benefits allows employees an opportunity to obtain the benefits they need to better protect themselves and their families.

MEBO works directly with leaders to evaluate their needs and create a customized benefits package. Our employee benefits specialists have years of experience working with companies across a wide range of industries. Please contact us for information about our services.

 

The CDC Just Relaxed Mask Mandates – Here’s What it Means for Employers

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Recently, the Centers for Disease Control and Prevention (CDC) announced that fully vaccinated individuals no longer need to wear a mask or physically distance in most settings. While this announcement represents an important step towards pre-pandemic life for vaccinated Americans, employers should take care before relaxing their existing health and safety protocols.

Updated Mask Requirements in California

Businesses must comply with state and local guidelines, which might conflict with current CDC advice. In California, the Occupational Safety and Health Standards (Cal/OSHA) board voted last month to end face mask requirements for vaccinated employees in the workplace. While masks are not required for fully-vaccinated employees, employers must verify and document employee vaccination status.

Employees are considered fully-vaccinated two-weeks or more after receiving their second dose of the COVID-19 vaccine or one dose of a single dose series. It isn’t clear whether the CDC will require booster doses to maintain vaccination status in the future.

The recent CDC guidance does not impact current EEOC guidance, which allows employers to ask employees about their vaccination status. However, employers need to take care when requesting this information. While asking about vaccination status isn’t necessarily a medical inquiry, asking in a way that solicits medical information could violate ADA regulations. This includes asking an employee why they haven’t received the vaccine yet.

Can Employers Lift Mask Mandates?

Employers can safely lift workplace mask mandates as long as they comply with all applicable state and local requirements. These requirements can vary from one area to the next, and businesses with multiple locations may find that different rules apply to each facility. It’s extremely important to keep in mind that CDC guidance does not supersede state and local workplace regulations.

Although state and local departments of health and OSHA consider CDC advice when developing their own guidelines and regulations, the recent CDC announcement was nothing more than a recommendation.

The decision to lift mask mandates in the workplace relies heavily on state and local regulations as well as the type of risk employees face at work. For example, employers may choose to require face coverings in situations where employees may have exposure to individuals whose vaccination status is unknown. This is often the case when employees work in public settings or multiple venues. The CDC’s Considerations for Returning to Work outline the specific requirements.

Keeping Track of Vaccinated Employees

If state and local laws allow employers to inquire about vaccination status, employers should not keep a copy of their employees’ vaccination cards. Doing so could violate ADA privacy laws. Instead, employers should keep a log of employees that are eligible to work on-site with others and in certain situations. Employers also need to establish clear policies and enforcement guidelines to ensure only eligible employees come to work without a face covering.

MEBO offers employee benefit plans, custom-tailored to the needs and requirements of every company we work with. Please contact us for information about our services.

 

 

 

 

 

 

IRS Provides Guidance on the New COBRA Subsidy

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On March 11, 2021, the President signed the American Rescue Plan Act (ARPA) into law. This law includes a 100% COBRA subsidy aimed at providing health insurance coverage to over two million Americans that were laid off during the COVID-19 pandemic.

While many U.S. workers will benefit from the new COBRA subsidy, employers have struggled to understand the new law and what it means for their business. On April 7, 2021, the U.S. Department of Labor issued guidance and model notices to help employers comply with COBRA subsidy requirements. More recently, the Internal Revenue Service (IRS) released Notice 2021-31, which provides further guidance and answers to questions regarding eligibility, election period, Outbreak Period extensions, and payroll tax credits.

Eligible Health Plans

The COBRA subsidy applies to all group health plans sponsored by private-sector employers or employee organizations subject to COBRA under the Employee Retirement Income Security Act of 1974 (ERISA). It also applies to health plans sponsored by state or local governments subject to the continuation provisions under the Public Health Service Act.

Determining Eligibility for the Subsidy

Individuals must be enrolled or become eligible for COBRA on or after April 1, 2021 and before September 30, 2021 to qualify. Individuals that became eligible for COBRA before April 1, 2021 and did not elect coverage may also qualify if they have an 18-month COBRA period. These individuals must elect coverage within 60 days following receipt of their subsidy notice.

All individuals that experience a loss of employee health coverage due to involuntary termination or reduction of hours within the specified time period are eligible for the subsidy. However, employees terminated for gross misconduct do not qualify.

The IRS Notice defines involuntary termination of an employee as “a severance from employment due to the independent exercise of the unilateral authority of the employer to terminate the employment, other than due to the employee’s implicit or explicit request, where the employee was willing and able to continue performing services.” Notice 2021-31 provides examples of events that would make an individual eligible for coverage. The notice also provides guidance on which situations might make an employee ineligible for the subsidy.

According to the IRS Notice, employees that experience a reduction in hours resulting in loss of health insurance coverage will qualify for the COBRA subsidy, regardless of whether the reduction in hours was voluntary or involuntary.

Payroll Tax Credits

The COBRA subsidy is paid to employers as a tax credit against their portion of Medicare taxes. Employers can claim the tax credit on their quarterly IRS Form 941 or in advance using IRS Form 7200. Payees are eligible to receive a tax credit equal to the amount charged for COBRA premiums per quarter.

Employers should review the IRS guidance as well as the DOL model notices for more information about the COBRA subsidy.

MEBO offers employee benefit plans, custom-tailored to the needs of our clients. Please contact us for information about our services.

 

 

 

Retrieving and Analyzing Claims Data on Fully-Insured Plans

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Many employers would like to better understand their healthcare spending. Until recently, it wasn’t easy for companies to retrieve health claims information. Fortunately, technological advances have made it possible for employers to analyze and leverage health program data.

Analyzing Health Program Data

Employers use data analytics to make sense of the large amounts of health program data collected. Using a robust data analytics tool, leaders can view what works and what doesn’t with their existing fully-insured benefits plan. This tool provides employers with the information needed to assess whether other options are the right choice for their organization. This is especially important now, as companies attempt to rebuild and repair budgets after the pandemic.

Using a claims retrieval tool, leaders can quickly and efficiently retrieve and view detailed claim reports in easy-to-understand language and diagrams. These tools make it possible for employees to share their Explanation of Benefits (EOB). This information is crucial in helping leaders better understand how their healthcare dollars get spent. Employers can also use a claims retrieval tool to assess how a level-funded or self-funded plan might help their business.

Although self-funding might not be the best choice for every organization, companies that make the switch to self-funding can save a significant amount of money over time with results as soon as year one. This could help offset rising healthcare costs. Unlike fully-insured plans, companies that take level-funded or self-funded approach enjoy increased transparency and control over their healthcare spending.

Retrieving Financial Reports

Financial reports aren’t typically available to small or mid-size companies. This can make it impossible for leaders to assess risk and create budgets.

In the past, companies had to pay a considerable amount of money to obtain financial reports. Fortunately, claims retrieval software makes financial data accessible to employers regardless of the size of their company. This is excellent news for small to mid-size companies which generally pay 8-18% more than larger firms for the same fully-insured health insurance plans.

An experienced benefits specialist uses claims retrieval software to retrieve and analyze claims data. The software takes employee EOBs and aggregates the data into a cost analysis.

Small to Mid-Size Companies Could Benefit from Speaking with an Employee Benefit Specialist

When armed with the right tools and resources, leaders can reduce healthcare spending and leverage data to improve their benefits program. Employers interested in learning more about healthcare spending should speak with an experienced benefits specialist.

MEBO has years of experience helping organizations customize their benefits plan to meet the unique needs and goals of their organization. Please contact us for more information about our services.