Tag Archive for: employee health plan

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

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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

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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.

 

 

 

American Rescue Plan Act of 2021 – Important FSA Changes

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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.

Understanding the New ARPA COBRA Subsidy

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On March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law. This law includes provisions that impact employers. Most notably, it includes a new COBRA subsidy. Employers should learn all they can about this subsidy and how it might affect their business.

ARPA Requires Employers to Cover the Costs of COBRA Continuation Coverage

For a limited period of time, the ARPA requires employers to cover 100% of the employer’s cost of continuing group health coverage under COBRA for up to six months following the loss of coverage by an employee or former employee. This new law covers any employee that elects COBRA continuation following the involuntary reduction of hours or involuntary termination for reasons other than gross misconduct. Under the ARPA, eligible individuals also get a second chance to elect COBRA coverage or renew their coverage after allowing it to lapse.

COBRA beneficiaries receiving coverage on April 1, 2021 are automatically covered by the subsidy. Under the new law, employers must inform previous employees that did not initially elect COBRA coverage as well as those that allowed their coverage to lapse of the special enrollment period that begins on April 1, 2021. This enrollment period ends 60 days after the employer provides notification to potential beneficiaries.

Notifying Potential Beneficiaries

ARPA will require employers to identify and notify individuals eligible for coverage by May 30, 2021.  In addition to identifying and notifying eligible beneficiaries, employers must also update termination documentation to include information about the COBRA subsidy and the special enrollment period.

Who’s Eligible?

Eligible individuals include those whose initial COBRA period ended or would have ended between April 1, 2021 and September 30, 2021 or later.  It’s important to note that the ARPA COBRA subsidy does not increase the COBRA period. If an employee’s COBRA coverage begins after April 1, 2021 or ends before September 30, 2021, the ARPA subsidy will remain in effect for less than six months. It’s also worth mentioning that individuals that qualify for coverage under another employer’s health plan or Medicare do not qualify for the ARPA COBRA subsidy.

Although the federal government provides the ARPA COBRA subsidy, employers must pay any premiums owed to their COBRA provider or plan administrator. Eligible employers will receive a dollar-for-dollar tax credit on their quarterly tax filing.

The ARPA COBRA subsidy applies to insured and self-insured plans subject to COBRA. It also applies to self-funded and insured plans subject to continuation coverage under state law.

COBRA Coverage

Previously, employers could require an electing employee to pay the employee’s share and the employer’s share plus a 2% administrative fee to continue group coverage under COBRA. While COBRA coverage often costs more than switching health plans, many employees elect COBRA continuation over searching for a new health plan that might not offer the same coverage or options.

MEBO offers employee benefit plans customized to meet the needs of organizations today. Please contact us for more information about our services or to schedule a consultation.

 

 

 

Should Employers Offer Benefits to Gig Workers?

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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

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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.

 

 

 

Reduce Stress in the Workplace

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Most people experience stress at work at some point in their career. While some stress can be beneficial, possibly improving performance and health, too much stress can decrease productivity and cause anxiety and health problems. It’s important that employers encourage employees to communicate issues and take necessary steps to keep their stress level in check.

De-Stress the Environment

Adding personal touches like photos of loved ones, plants, or décor to a workspace can help relieve stress. When employees customize their workspace, they tend to feel more established in the office. This can boost morale and improve overall mood and well-being.

Encourage Breaks

Sometimes all it takes is a little break from work to start feeling better about things. Encouraging employees to get up and walk around every few hours not only reduces stress; it helps employees gain focus and energy.

Create a Space Where Employees Can Recharge

Create a breakroom where employees actually want to spend their free time. Add books, puzzles, comfortable seating, and snacks. Try to keep the space as quiet and relaxing as possible. This will give employees a chance to relax and recharge before going back to work. This might be just the mental break they need.

Choose Tea Over Coffee

Although most workers associate coffee with energy, drinking tea can have a much more positive effect on both mood and health. Offer a selection of different options. This helps ensure you have something for every team member.

Encourage Exercise

Many employers offer wellness programs that include on-site fitness centers, yoga classes or other exercise options. Regular exercise reduces stress and improves mood. Even simple breathing exercises can have a positive impact on employee well-being.

Stress & Physical Health

Stress impacts all areas of our lives. In addition to emotions and behaviors, stress can affect physical health as well. Long-term stress can cause serious mental health problems like depression, anxiety, and personality disorders. It can also cause serious health conditions like heart disease, high blood pressure, heart attacks, and stroke. Workers that experience high levels of stress are less productive and may take more time off work. It benefits everyone in the workplace when employers focus on stress management.

MEBO offers employee benefits to organizations throughout California. We are committed to helping employers get the most out of their benefits package. Please contact us to set-up a consultation with an employee benefit specialist.

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.