Tag Archive for: employee health insurance

Helping Employees Build Resilience

/in /by

Over the past few years, employers have increased their focus on mental health. In addition to offering mental health benefits, many employers also work towards building resilience in the workplace. Building resilience can help protect employees from mental health conditions like depression and anxiety. Resilience can also help offset factors that may increase the risk of serious mental health conditions.

Employee Mental Health

Mental health includes an individual’s emotional, psychological, and social well-being. The quality of a person’s mental health helps determine how they handle stress and relate to others. Poor mental health can impact a person’s ability to make healthy choices. It can affect productivity and impair personal and professional relationships. Mental health disorders can also affect physical health, increasing the chance of missed workdays.

Everybody faces trauma, adversity, and stress at some point in their life. According to a 2019 study by Gallup, 55% of Americans experience stress on a daily basis. This is 20% higher than the world average. Building resilience may help employees better handle life-changing and stressful situations.

Encourage Employees to Take Time for Self-Care

With so much going on, it’s not uncommon for employees to put self-care on the back burner. Unfortunately, many people view self-care as a luxury instead of a necessity. This is a big reason why so many people feel overwhelmed and run down. It’s crucial that employers encourage employees to take some time for self-care. Even a few minutes of mindful breathing can have a big impact on mood and resilience.

Keep Teams Connected

Although in-person meetings might not take place like they used to, it’s still important for employers to encourage regular team meetings. Weekly meetings provide an opportunity for employees to share their feelings and brainstorm solutions to problems.

View Challenges as Opportunities

Mistakes happen and everyone experiences difficulties from time to time. Instead of focusing on what went wrong, employers should encourage employees to view challenges as a chance for growth. This can help employees develop new solutions to old problems. It can also improve the way they view difficult situations in the future.

Provide Access to Mental Health Services

It’s important that employers inform employees of the mental health benefits and services available to them. Employers may choose to provide information on accessing care and resources.

Employee Benefit Specialist

As workplace stress levels rise, it’s crucial that employers offer employees the support they need. At MEBO, we help employers develop customized employee benefit plans. Please contact us to schedule a consultation.

 

 

 

 

Is It Time for Employers To Rethink the Way They View Healthcare?

/in /by

Most employers understand the importance of providing employees with health insurance benefits. Providing health insurance has been shown to increase productivity, reduce absenteeism, and provide significant tax-savings for employers.

Job seekers frequently cite benefits as an important factor when choosing where to work. In fact, 80% of job seekers claim they would choose a job with good benefits over an identical job with none. Having health insurance is especially important now, as employees worry about the effects the pandemic has had on their health and the health of their loved ones. Unfortunately, only half of U.S. employees believe their benefits package is better than what they might get from another employer.

Employees Still Worried About COVID-19

Although it seems the worst of COVID-19 is behind us, many people still worry about the future. According to Morning Consult’s weekly survey, as of April 25, 2021, 49% of adults report that they are still “very” concerned about the pandemic. This, combined with financial uncertainty has led many to reevaluate the benefits available to them.

Moving Beyond the One-Size-Fits-All Approach

As we move further into 2021, employers should consider a full analysis and evaluation of their existing health plan. Enlisting the help of an employee benefits broker may help employers better understand their current health plan and the options available to them. However, it’s important that employers locate a broker that offers much more than just cost savings. Simply choosing the plan with the best price will not provide the transparency and control employers require.

When it comes to healthcare spending, employers are often left in the dark. Unfortunately, a lot of healthcare dollars do not go towards actually treating the patient. Traditional health plans do not provide visibility into healthcare spending. Employers could benefit from considering other options.

Many employers are also reconsidering how employees pay for healthcare. Traditionally, all employees would pay the same amount for health insurance, regardless of their pay or position in the company. This model makes it difficult for lower-paid employees to afford healthcare coverage. In recent months, an increasing number of employers have taken an income-based cost-sharing approach when it comes to employee healthcare.

Employee Benefit Specialists

At MEBO, our employee benefit specialists work directly with employers to assess their current plan and locate areas that could benefit from improvement. Our customized approach allows us to design and develop a plan that meets the specific needs and budget of the companies we work with. Using proven methods, we increase transparency, reduce healthcare spending, and ensure employers provide a competitive health insurance plan that meets the healthcare needs of their employees.

Please contact us for a consultation.

 

Build a Better Employee Health Benefits Program

/in /by

Most employers understand the importance of offering health benefits. The right benefits plan can help employers attract and retain quality employees. Unfortunately, many benefit plans do not allow employers to control healthcare spending. This can create problems when creating and balancing budgets. A major event or illness can cost employers and employees a considerable amount of money. It’s crucial that employers ensure they create an employee health plan that provides a high level of transparency and control over spending, while ensuring adequate coverage for employees.

Determine Goals & Budget

Before building an employee benefits program, employers should think carefully about the reasons they’re offering benefits in the first place.  Many employers offer benefits to attract and retain quality candidates. In fact, a recent survey found that 72% of employers list retention and 58% list recruiting as the top reasons for increasing benefits for employees. Offering competitive health benefits can help organizations stand out in the labor market. Other reasons for offering benefits include compliance with federal and state laws and tax savings.

Once employers determine their goals, they need to decide what they’re willing to spend on employee healthcare. The amount of money spent varies from one plan to the next. Sometimes, employers end up paying more for healthcare than they originally planned. This can be controlled with a level-funded plan. Using stop loss insurance, employers can decide the maximum amount they’re willing to spend each month. When healthcare costs exceed this number, the stop loss insurance covers the difference.

Required Benefits

Before deciding on the type of health benefits to offer, employers should look at what they’re already spending on required benefits. Benefits required by federal, state, and local laws may include:

  • Social Security
  • Unemployment Insurance
  • Workers’ Compensation
  • Disability Insurance
  • Leave of Absence

Provide Employees with A Statement of Total Compensation

Each year, many employers provide a statement of compensation to employees. This report includes a breakdown of wages earned and benefits translated into a dollar amount. Depending on the types of benefits offered, the report should list:

  • Employee health insurance cost
  • Money spent on employee leave
  • Disability insurance costs
  • Life insurance costs
  • Retirement contribution amounts

Discussing this report with employees helps them better understand and appreciate the benefits they receive.

Customized Employee Benefit Plans

Employers looking to optimize their employee health plan could benefit from speaking with an experienced employee benefits specialist. The right benefits broker can help increase transparency and control over healthcare spending, while ensuring employees receive the care they need. Please contact us for a consultation. We look forward to hearing from you.

 

 

 

Understanding the Caregiving Crisis and How It Impacts Your Business

/in /by

As baby boomers leave the workforce, an increasing number of employees find themselves caring for aging parents. For employees with children, the stress and commitment of caring for older relatives can be overwhelming. This is especially true now, as the pandemic continues to threaten the health and safety of Americans. While the COVID-19 vaccine provides some relief, many caregivers still worry about the chance of transmission.

Caregiving Crisis

With an estimated population of 73 million Americans, Baby Boomers make up a large part of the U.S. population. In fact, Baby Boomers outnumber Gen X by 4.36 million. By the year 2030, 1 in 5 U.S. residents will be at or above retirement age and many will require care. Unfortunately, the U.S. does not have enough caregivers for aging adults. This leaves much of the responsibility on relatives.

Six out of ten caregivers work at a regular job throughout part (if not all) of their caregiving experience. 56% work at a full-time job. Many of these employees have small children at home as well.

Caregivers perform multiple tasks including:

  • Acting as an advocate for older adults
  • Managing health insurance claims
  • Communicating and coordinating care
  • Providing transportation to and from doctor visits
  • Maintaining medical equipment
  • Helping older adults with self-care and daily activities
  • Administering medications and injections
  • Performing first aid and wound care

With so much on their plate, it’s no surprise that caregivers experience higher levels of stress in the workplace. This can affect productivity and cause employees to become disengaged in their work. Over time, employees may find the stress of balancing work and caregiving too much to handle.

Around 40% of family caregivers leave their job. This is bad news for employers already dealing with a high rate of employee turnover and a small pool of quality candidates to choose from.

Supporting Caregiver Employees

Although employers cannot eliminate all of the challenges of caregiving, they can provide much needed support to their caregiver employees. Employers should start by analyzing their current benefits plan and policies to ensure they meet the needs of all employees. It’s also important to make sure employees understand the benefits available to them. Many employers are surprised to learn how little their employees know about their current benefits.

Employers may want to consider providing additional benefits as well. Employee discount programs help employees ensure they always have food for themselves and their loved ones. Employers should also consider extending benefits to the family members of employees. This can significantly reduce employee caregiver stress and may help employers improve their rate of retention.

Please contact us for information about health insurance benefits for employees and their loved ones.

 

American Rescue Plan Act of 2021 – Important FSA Changes

/in /by

Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) provides health and wellness opportunities to individuals impacted by COVID-19.  Last week, we featured an article explaining how the ARPA impacts employers in regards to COBRA coverage. This week, we’ll take a closer look into dependent care flexible spending account (FSA) contributions changes under the new law.

The ARPA increases the limit for dependent care FSA contributions in 2021 from $5,000 to $10,500. While this increase to the maximum contribution amount only applies to 2021, there’s a chance this change will become a permanent option. It’s important that employers learn as much as they can about how this change might impact their business.

What This Means for Employers

The ARPA dependent care FSA limit increase is not mandatory. Employers are not required to implement this temporary change. Employers that do wish to incorporate this feature will need to amend their FSA plan before the end of their plan year.

Although the amendment can have a retroactive effect back to the beginning of the plan year, the maximum contribution increase only applies to the 2021 tax year, not the employer’s plan year. For organizations whose plan year began after January 1st, participants can only contribute the higher amount through the end of 2021. After that time, their contributions mustn’t exceed the standard $5,000 per year IRS limit. For example, if an employer’s plan year runs from July 1, 2021 to June 30, 2022, participants would only contribute the higher amount (up to $875 per month) through December 31, 2021. They would then contribute the standard amount (up to $416.67 per month) for the remainder of the plan year.

Important Considerations

Increasing the maximum dependent care FSA contribution isn’t a viable option for every company. Before implementing this change, employers need to determine whether it makes sense for their business.

Employers should consider whether their payroll system can support changing FSA contribution amounts. It’s also important that employers look into how this change might affect their plan’s compliance. For many companies, only highly compensated employees will be able to increase their contributions. This goes against the Internal Revenue Code (IRC), which allows pretax contributions to FSAs as long as they do not favor highly compensated employees (HCEs).

Employers considering implementing this change should speak with an experienced benefits broker. It’s also important that employers communicate changes to eligible participants. Please contact us for more information.

Should Employers Offer Benefits to Gig Workers?

/in /by

COVID-19 has changed the way many of us live and work. Throughout the past year, unemployment rates have skyrocketed. Caused by forced closures and stay-at-home-orders, several businesses around the U.S. have had to reduce staff or permanently close their doors. According to the Department of Labor, over 48 million Americans applied for Unemployment Insurance within the past year. Many unemployed workers turn to gig jobs to make ends meet.

What Are Gig Workers?

Gig workers include independent contractors, freelancers, contract firm workers, temporary workers, and online platform workers. These workers may enter into contracts with companies to provide services on an as-needed basis. It’s estimated that as many as ten percent or more U.S. workers take advantage of some form of alternative work.

Health Benefits Provide Peace of Mind and Financial Protection

As an increasing number of U.S. businesses turn to independent contractors to assist with projects on a temporary basis, many have considered the possibility of offering these workers benefits. For gig workers that perform potentially life-threatening tasks during the pandemic like ride-sharing and other jobs that put them in direct contact with strangers, health benefits can provide peace of mind and may increase worker interest in these types of jobs.

Employers that utilize independent contractors on a regular basis might want to consider offering some form of benefits. Although it’s important to note that employers don’t have to offer the same types of benefits that they offer their full-time employees. For example, many employers do not allow gig workers to participate in a 401K plan, but will provide them access to healthcare coverage. These employers allow gig workers to pay monthly premiums to participate in the company’s group health plan. These types of plans generally cost significantly less than individual health plans.

Employers that decide to offer benefits to gig workers should ensure their workers aren’t receiving benefits from a temp agency or other party. It’s also important that employers avoid working with temp agencies that pass the cost of benefits to the employer. If the temp agency offers benefits, it is their responsibility to pay for these benefits for their workers.

Other Benefits

Although health insurance tops the list of preferred benefits, many companies choose to reward gig workers with bonuses. Offering bonuses for working during difficult hours or putting in extra effort shows workers they’re appreciated. It can also make them more willing to continue working for the company.

While offering benefits to gig workers can provide significant benefits, it’s important that employers weigh the risk as well. Providing gig workers with the same benefits as regular employees may make it difficult for organizations to attract workers to permanent roles within the company.

Employers have many factors to consider when selecting benefits for their workers. MEBO works directly with employers to evaluate their needs and develop a comprehensive solution, tailored to the organization’s budget and objectives.

Please contact us to schedule a consultation.

Understanding Prescription Drug Pricing Trends

/in /by

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

/in /by

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.

 

 

 

What’s the Real Cost of Your Benefit Plan?

/in /by

Businesses spend a lot of money each year. While business owners have transparency of what they spend on goods and services, this isn’t typically true for healthcare. This is a problem as healthcare represents the second largest expense after payroll for most U.S. businesses. Another issue, most leaders have very little say when it comes to negotiating their employee benefit plan. This can lead to overspending with little understanding as to why.

Understanding the Real Price of Employee Healthcare

Leaders have many factors to consider when it comes to figuring out the true cost of their health plan. Although many insurance carriers would like employers to believe their annual bundled lump sum premiums make up the total cost of their health plan, there’s more that goes into figuring out this total. Employee health plans are made up of several different components. Each component has its own cost.

The components of an employee health plan include:

  • Medical claims
  • Pharmacy claims
  • Administration costs
  • Advisor commissions and fees

For years, insurance carriers have told employers that it’s difficult, if not impossible to control the total cost of their healthcare plan. This benefits no one but the insurance carrier.  Unfortunately, employers get very little information regarding what they pay for each component of their healthcare plan.

In 2018, a survey conducted by the National Alliance of Healthcare Purchaser Coalitions (National Alliance) found that 60% of employers estimate that up to 25% of their employee healthcare spending was wasted. Unfortunately, without transparency into healthcare spending, employers can only guess how much money gets wasted each year.

Employers Need Greater Transparency Into Their Healthcare Spending

At MEBO, we believe employers should have complete transparency of the costs of their healthcare plan. Employers shouldn’t blindly accept increases each year without knowing where they spend their dollars and why. Without this information, employers can’t plan budgets or understand how they spend their healthcare dollars.

In order to increase transparency and control over healthcare spend, employers could benefit from changing their approach to purchasing healthcare. All key components must be unbundled and a total cost provided for each area. This allows leaders to fully analyze what areas drive their healthcare costs. They can then use this information to develop a comprehensive plan based on what their employees actually need.

Using a level-funded approach, employers gain visibility, predictability, and greater financial protection over their healthcare spending. However, this approach may not be the best choice for every company. It’s important that employers speak with an experienced employee benefit specialist before deciding on or switching their health plan.

MEBO works directly with employers to evaluate their needs and develop a comprehensive solution custom-tailored to their requirements. Our process puts employers in the lead. This reduces costs and ensures complete transparency. Please contact us to schedule a consultation.

 

The IRS Has Extended Certain ACA Reporting Deadlines – Here’s What It Means For Your Business

/in /by

Every year, employers around the country must file Forms 1095-B and 1095-C with the IRS and send copies to their employees. Part of the Patient Protection and Affordable Care Act (PPACA), sometimes referred to as the ACA or Obamacare, employers with 50 or more full-time or full-time equivalent (FTE) employees and all self-insured employers must use these forms to report employee healthcare coverage information to the IRS.

Form 1095 Distribution Deadline Extended

Applicable Large Employers (ALEs) must provide full-time workers with minimum essential coverage. By filling out forms 1095-C and 1095-B employers prove they offer acceptable coverage as required under the ACA.

Previously, the deadline for providing employees with a copy of their 1095-C or 1095-B was January 31st. Last October, the IRS announced it would extend the deadline to March 2nd, 2021. While the IRS extended the date for providing employees with 1095 forms, eligible businesses must still file these forms with the IRS by February 28th for paper filing and March 31st for electronic filing.

The IRS also extended “good faith effort” transition relief to employers for 2020 reporting. This means that the IRS will not impose penalties on companies that show they made good-faith efforts to comply with the information reporting requirements. This only applies to employers that submit incorrect or incomplete information. It does not apply to employers that fail to submit the required information on time. It’s important to note that this relief is transitional, meaning the IRS does no intend to offer it in future years.

Are You Prepared?

Even with the extended deadlines, employers may want to start gathering the information needed to complete, distribute, and file their returns sooner than later. It can take time to gather the appropriate paperwork and information, and companies that do not meet the deadline will face penalties.

As COVID-19 continues to spread throughout much of the country, employers need to think carefully about how they will distribute 1095 forms this year. Although many companies are operating remotely, sending these forms via email is only allowed if employees consent in advance.

MEBO offers employee benefits to small businesses, ALEs, and large corporations. We work directly with our clients to evaluate their needs and develop a comprehensive benefits plan that fits their budget. Please contact us for information about our services or to schedule a consultation.