The Benefit of Benefits
Remaining competitive in the hunt for the right job candidates who will propel your business to success is a struggle.
Benefits packages offer value to your employees and help you boost productivity and retention in a cost-effective manner. Here are a few of the advantages of offering employee benefits as part of your compensation package.
November Benefits Buzz
Summary of the 2019 Employer Health Benefits Annual Survey
Each year, the Kaiser Family Foundation and the Health Research & Educational Trust conduct a survey to examine employer-sponsored health benefit trends. This article summarizes some of its main points. Request a full summary from Evolution of Benefits for more details. Read more for Plan Enrollment Trends:
October HR Brief
Hold on to Talent With “Stay Conversations”
Some people think employment is all about the money, but they’re wrong. For many, it’s about development and growth. In fact, Gallup cites “lack of development and career growth” as the number one reason employees leave their workplace.
How can you ensure you’re offering suitable opportunities to keep your employees happy? “Stay conversations” are a good way to start.
October Benefits Buzz
Deadline Approaching: Medicare Part D Notices Are Due Before Oct. 15
Each year, Medicare Part D requires group health plan sponsors to disclose to individuals who are eligible for Medicare Part D and to the Centers for Medicare and Medicaid Services (CMS) whether the health plan’s prescription drug coverage is creditable. Plan sponsors must provide the annual disclosure notice to Medicare-eligible individuals before Oct. 15, 2019.
Group Benefits
Whether your business size is 2 or 2000, we will create a benefits plan for your employees aligned with your business or organization’s goals and philosophies.
We take a step back, listen, and learn, before we customize a plan with the proper industry benchmarks and data. This ensures that the process put into motion starts off right. We feel that this is better approach than simply just shopping the prices or taking a “one-size fits all” attitude.
We offer all lines of group benefits:
- Medical
- Dental
- Vision
- Short-term Disability
- Long-term Disability
- Life
- Travel
Speak with one of our Benefit Consultants today.
Individual Health Benefits
We provide quality health insurance coverage for individuals between the ages of 1 and 64. Using some of the same providers we use for commercial coverage, we bring peace of mind to individuals looking for quality health insurance for themselves and their families.
We work with Exchange (Marketplace) based plans and Off-exchange (Marketplace) based plans. As your benefits consultant, we will make sure you have access to helpful tools and resources you need to manage your plan.
Speak with one of our Benefit Consultants today.
Voluntary Benefits
Voluntary benefits enhance core benefit packages and deliver added incentive without employers spending more on insurance. A solid voluntary benefit platform offers your employees the ability to purchase competitively-priced coverage, and in most cases without underwriting questions. Voluntary Benefits complement your core benefit strategy while reducing company costs and employee financial risk.
Voluntary Benefits may include:
- Disability
- Dental
- Vision
- Life
- Long-term health care
- Cancer insurance
- Supplemental Health
Speak with one of our Benefit Consultants today.
Health Savings Accounts
Health Savings Accounts (HSA) were formed in January, 2004 as part of the Medicare Prescription Drug and Modernization Act. These programs replace Medical Savings Accounts (MSA). In essence, HSA have removed all of the negative requirements of an MSA and retained the positives.
Health Savings Accounts are established on a non-taxable basis to reimburse individuals for out of pocket liabilities. By purchasing a high deductible health insurance plan, an employer reduces his/her premiums. From these premium savings, monies can be set aside to help offset some or all of an employee’s additional out-of-pocket liability.
Guidelines for a Health Savings Account
| Base health plans require a minimum of a deductible for an individual with single coverage and an overall out of pocket cap and a deductible for families with an out of pocket cap. |
| Accounts may be funded with employer dollars, employee dollars or both |
| Catch-up, provision employees between the ages of 55-65 can fund an additional amount over the maximum |
| All accounts are assigned to the employee regardless of how the funding was provided |
| Employer fund amounts are tax deductible to the employer as a cost of providing benefits |
| Reimbursements are non-taxable to the employee |
| Unused funds are carried forward from year to year |
| Upon termination of employment, unused funds are maintained by the employee |
| Type of Limit | 2019 | 2020 | Change | |
| HSA Contribution Limit | Self-only | $3,500 | $3,550 | Up $50 |
| Family | $7,000 | $7,100 | Up $100 | |
| HSA Catch-up Contributions (not subject to adjustment for inflation) | Age 55 or older | $1,000 | $1,000 | No change |
| HDHP Minimum Deductible | Self-only | $1,350 | $1,400 | Up $50 |
| Family | $2,700 | $2,800 | Up $100 | |
| HDHP Maximum Out-of-pocket | Self-only | $6,750 | $6,900 | Up $150 |
| Family | $13,500 | $13,800 | Up $300 |
Speak with one of our Benefit Consultants today.
Healthcare Reimbursement Arrangements
By purchasing a high deductible health insurance plan, an employer reduces his/her premiums. From these premium savings, monies can be set aside to help offset some or all of an employee’s additional out-of-pocket liability.
Healthcare Reimbursement Arrangements (HRAs) are part of the IRS code section 105 “defined contribution plans”. Final regulations were released in June of 2002 allowing for HRAs to be allowed on a tax favorable basis.
IRS guidelines allow for the following
• There are no plan design requirements to qualify for an HRA plan
• HRA accounts must be funded with employer dollars
• Monies reimbursed to an employee for eligible out of pocket medical expenses are deductible to the employer (monies are not deductible until actual reimbursements are made)
• Monies are received by the employee as non-taxable income
Employers can elect to have the entire fund assigned to the employee, or only reimburse for actual eligible expenses incurred
| Assigning the entire fund to the employee | Reimbursing only for actual eligible expenses incurred |
| Premiums savings are automatically reduced since funds are assigned regardless of actual claims experience | Total amount of HRA must be available if eligible expenses are incurred |
| The entire amount pledged to the HRA becomes the employees | Employer retains unused funds |
| Unused portions of the funds are carried over from year to year | Premium savings are only reduced by eligible reimbursements when and if they are incurred |
| Should employment terminate the employee takes the balance of his/her fund and can continue to use for eligible reimbursements without taxation or penalty | |
| After age 65 monies can be withdrawn for non eligible medical expenses subject to normal income tax but no penalty |
Speak with one of our Benefit Consultants today.
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
