Tag Archive for: employee benefit plan

Understanding Prescription Drug Pricing Trends

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Employers often find it difficult to manage their healthcare expenses. Unfortunately, fluctuating prescription drug prices can make this process even more complicated.

According to Statista, Americans spent 358.7 billion dollars on prescription drugs in 2020. This was an increase of 13 billion dollars from the previous year. Prescription drug spending makes up 10% of national healthcare costs. Although this number seems relatively low, prescription drug spending has increased rapidly in recent years. This makes prescription drug spending an important factor for employers to consider when deciding on their employee health plan.

Specialty Drugs

Rising specialty drug prices remain one of the biggest drivers of prescription drug spending. These high-cost oral or injectable medications are used to treat a variety of complex chronic conditions. The average annual cost of treatment using specialty prescription drugs totaled $78,871 per drug, per year in 2017.

Although specialty drugs make up a smaller portion of prescriptions, this may change in coming years. Around 66% of the drugs approved by the FDA in 2019 were specialty drugs. It seems that these drugs may soon replace lower-cost therapies for many conditions.

Price Increases

In 2020, drug makers increased prices by approximately 5% on more than 860 drugs. In January 2021, several drug makers announced they would raise prices on over 300 drugs in the United States. These increases occurred as drug makers struggle to remain profitable throughout the COVID-19 pandemic. Over the past year, people have limited their visits to the doctor, causing a decrease in demand for certain drugs.

Unfilled Prescriptions

According to the Journal of General Internal Medicine, as many as 31% of prescriptions go unfilled each year. This is bad news for employers, as employees that do not take the advice of their physician could experience more serious and costly problems in the future.

According to OptimizeRx, 73% of physicians base their prescribing decisions on the out-of-pocket cost of prescription drugs. An astounding 70% of physicians believe the high cost of prescription drugs leads to unfilled prescriptions. It’s not surprising that patients are less likely to fill prescriptions with a high co-pay.

What Can Employers Do to Control Prescription Drug Spending?

Rising prescription drug costs may lead to sticker shock for both employees and their employers. Fortunately, there are a few things employers can do to manage their healthcare spending.

Employers need to educate employees about their health insurance coverage, prescription options, and best practices. This not only helps reduce healthcare costs, but also helps employees better understand their health benefits and coverage.

Employers worried about rising prescription costs may also want to consider other health plan options. Switching to a level-funded health plan can help keep prescription drug costs in check, while ensuring adequate coverage for employees. However, it’s important that employers fully evaluate their needs before switching their employee health plan. Employers could benefit from contacting an experienced employee benefit specialist.

 

 

 

 

 

 

 

Tips for Selecting the Right Employee Benefits Broker

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Companies spend a lot of money on employee benefits. A recent report released by the U.S. Bureau of Labor Statistics found that benefits accounted for 29.8 percent of employer costs. While most employers understand the importance of offering benefits, many aren’t sure how to go about finding the best options for their business. Unfortunately, employers might not know they have multiple choices when it comes to choosing their health plan. These employers could benefit from speaking with an experienced employee benefits broker.

Look for an Experienced Benefits Broker

When it comes to choosing the right employee benefits specialist, it’s important that employers look for a benefits broker with years of experience. The benefits broker should have the resources and know-how to customize employee health plans to meet the needs and goals of each organization they work with.

Employers should avoid partnering with a benefits broker that simply shops around for the best price. While the plan might look good on paper, it’s not uncommon for employers to find they have little to no visibility or control over how their healthcare dollars get spent. This can create serious problems for the employer. Without complete transparency, employers cannot properly manage their healthcare costs.

Coverage & Support for Employees

Serious illness and accidents can occur at any time. These life changing events often happen when we least expect them. The right employee health plan not only helps employers manage healthcare spending, it protects the health and well-being of employees and their families.

With so much at stake, it’s crucial that employers take their time locating a qualified benefits broker. The right broker will ensure employees not only have all of the coverage they need in a major event, but the resources and support they need as well.

Specialties

Most employers find the process of selecting a benefits package confusing. It’s important that employers locate a broker with experience in multiple areas. This is the best way to ensure the most comprehensive plan.

Excellent Customer Service

The right benefit specialist becomes a trusted partner of the business. They do much more than just help employers locate the right benefit plan for their business. They work as an extension of their HR team. Excellent benefits brokers help employers better understand their health plan and educate their employees.

Employee Benefits Specialists in California

MEBO works directly with organizations to analyze their needs and develop a comprehensive benefits plan. Our staff has years of experience assisting employers in a wide range of industries. Our solutions help employers increase transparency and reduce financial risk. Please contact us for more information or to schedule a consultation with one of our benefits specialists. We look forward to hearing from you.

 

 

 

How Employers Can Support Employees Working from Home

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According to Upwork, an American freelancing platform, 41.8% of the American workforce currently works from home. It’s estimated that around 26.7% of these remote workers will not return to the office this year. By 2025, it’s expected that 36.2 million Americans, or 22% of the entire American workforce will be working from home. This represents an 87% increase in the number of remote workers since before the pandemic.

Although working from home provides a convenient option for many employees, it creates challenges as well. Employees working from home can feel disconnected from the workplace. It’s crucial that employers do all they can to keep company culture alive and support employees working from home. This not only benefits the employee, but the organization as a whole. When employees feel supported and connected to company culture, they become more productive.

Flexible Hours

Many employees find it difficult to balance their work and personal life when working from home. Allowing employees to set their own hours puts them in control. Offering flexible hours allows employees to make the most of their day and work around other schedules. This soft benefit costs employers absolutely nothing but provides significant benefits.

Face-to-Face Time

Employees are happier at their jobs when they get along well with their co-workers. A study conducted by Gallup, an American analytics and advisory firm, found that work friendships boost employee satisfaction by as much as 50%. Another study found that women that have a best friend at work are 63% more likely to engage fully in their work.

While many employers understand the importance of friendships and comradery in the workplace, working from home doesn’t create the type of environment where employees can foster friendships. Employers can encourage employees to stay connected through regular face-to-face meetings in-person or over video conferencing software. To ensure the best results, employers need to keep these sessions purely social.

Health Insurance Benefits

Many employees worry about paying for medical expenses for themselves and their loved ones. This is especially true now, as COVID-19 continues to threaten the health and safety of Americans. Offering employees health insurance benefits ensures employees receive the care they need. This can reduce stress and make employees more satisfied with their job.

Lifestyle Benefits

In addition to health benefits, many employers have started offering lifestyle benefits to remote workers as well. Popular benefits include gym memberships, fitness-related expense reimbursements, education, and childcare. Employers often choose to provide a monthly allowance for employees to use to pay for certain expenses.

Employee Benefits Specialists

Employers have a lot to consider when deciding how best to support their employees. MEBO works directly with employers to help them develop a comprehensive employee benefits plan that fits their needs and budget. Please contact us to schedule a consultation.

 

 

 

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.

 

 

 

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.