22Oct2017

Retaining Employees

2017-10-22

Retaining skilled employees is a significant issue for any business. A high rate of employee turnover can result in a loss of knowledge and skills, as well as have a direct impact on a company’s bottom line. The cost of losing an employee includes not only lost productivity, but also the expense of recruiting, selecting and training a new employee. Consider the ideas presented below to help reduce turnover and increase satisfaction among your company’s valued employees.

Why Employees Stay

Some of the factors affecting retention include:
Compensation
Good leadership
Challenging and fulfilling job
Relationships with immediate supervisors and staff
Recognition

Ways to Increase Retention

The following are a number of ways to help increase retention:

Acknowledge and reward your employees’ contributions and provide regular, constructive feedback
Make sure your compensation package is fair and competitive
Provide a forum to encourage new ideas and open communication
Provide training programs and mentoring to enhance skills development, learning and career growth
Provide employee assistance, wellness and health programs
Support work-life balance
Offer flexible work arrangements, such as varied hours and the possibility of telecommuting
Provide leadership opportunities

Employee Attitude Surveys

Employee attitude surveys allow your staffers to give confidential feedback on their opinions of your company in terms of satisfaction with the job and how their jobs and work environment might be improved. To help build a relationship of integrity and trust among company employees, the results of your survey should be communicated effectively and acted upon by your company.

There are a number of different ways to conduct an employee attitude or satisfaction survey– from simply filling out a paper survey to taking an online survey or hiring a consulting firm to do all the surveying and analysis work for you. If you work with a consultant to administer an employee satisfaction survey, make sure you have access to the data. By personally reviewing the data and analysis, you’ll be able to make a better assessment of employee satisfaction. The survey results can provide you with key information on how to improve workplace processes, policies and morale to retain existing staff and attract new employees.

Some of the topics that can be covered in a survey include:

Satisfaction
Senior Management
Functional Expertise
Compensation
Customer Service
Communication
Mentoring
Leadership
Teamwork
Staff Development

Benefits of Employee Attitude Surveys

Facilitate company’s development and change.
Focus the company on specific needs or gaps in service or training.
Provide management with employee feedback on company morale.
Provide feedback on the impact of company policies and procedures.
Results can be used to motivate employees and improve job satisfaction.

Developing a Health and Wellness Program

A company health and wellness program refers to activities or initiatives undertaken within the workplace that are designed to support your employees’ general health and well-being. Programs will often differ from business to business in terms of the range of initiatives offered.

Health and Wellness Initiatives

Some simple initiatives to consider include:

Providing filtered water.
Having your air-conditioning and heating systems checked and maintained on a regular basis.
Increasing the nutritional quality of food available in the workplace.
Providing desk chairs that are ergonomically designed to support the back.
Empowering employees to include physical activity into their working day, such as encouraging walking at lunch.
Providing incentives such as such subsidized memberships to local health clubs. Be sure to check with your local health clubs to see if they offer corporate rates.
Providing more flexible work hours.

12Oct2017

employees going over their healthcare options

New Executive Order Calls for Expanding Health Care Options in 3 Major Areas

2017-10-12

ABN

Employee Benefits

ACA Requirements Remain In Effect Pending Further Guidance or Legislation

President Trump has signed an executive order calling upon federal agencies to consider expanding health care options in 3 major areas to potentially increase competition and lower costs. Until further guidance is issued or legislation is signed, however, all current ACA requirements remain in effect, including penalties for noncompliance.

The following are key highlights of the order:

Association Health Plans (AHPs): The executive order directs the U.S. Department of Labor to consider expanding access to AHPs, which could potentially allow employers to form groups across state lines.
Short-Term, Limited Duration Insurance (STLDI): The executive order directs federal agencies to consider ways of expanding coverage through low-cost STLDI, which is not subject to certain ACA rules.
Health Reimbursement Arrangements (HRAs): HRAs are tax-advantaged, employer-established arrangements that allow eligible employees to be reimbursed for qualified medical expenses. The executive order directs federal agencies to consider changes to the rules regulating HRAs to increase their usability, expand employers’ ability to offer them to employees, and allow them to be used in conjunction with nongroup coverage.

For more information on this executive order, click here.

Note: In general, executive orders must be implemented in a manner consistent with applicable law, including the Administrative Procedure Act, which requires extended review of and public comment on any federal rules which may be proposed as a result of an executive order. Going forward, we will promptly report changes made to any ACA requirements.

11Oct2017

A close up of a packet of birth control pills

Federal Agencies Relax Contraceptive Coverage Mandate

2017-10-11

ABN

Human Resources

New Rules Expand Exemptions Based on Religious and Moral Objections

Effective as of October 6, 2017, two companion interim final rules issued by the U.S. Departments of Health and Human Services, Treasury, and Labor expand exemptions related to the Affordable Care Act requirement that non-grandfathered group health plans provide coverage without cost-sharing for contraceptive services (referred to as the “contraceptive mandate”). Previously, the contraceptive mandate was subject to exemptions for religious employers and accommodations for certain other non-profit religious organizations and closely held for-profit entities with sincerely held religious beliefs against certain contraceptives.

Expanded Exemptions

The new rules exempt entities that object to establishing, maintaining, providing, offering, or arranging (as applicable) coverage, payments, or a plan that provides coverage or payments for some or all contraceptive services based on their sincerely held religious beliefs or moral convictions. For this purpose, the term “contraceptive services” includes contraceptive or sterilization items, procedures, or services, or related patient education or counseling.

Religious Exemption. This exemption applies to non-governmental plan sponsors—including non-profit organizations and for-profit entities (whether or not they are closely held or publicly traded)—that object based on sincerely held religious beliefs.
Moral Exemption. This exemption includes the plans of plan sponsors that are non-profit entities, as well as for-profit entities that have no publicly traded ownership interests (as defined under the law).

Disclosure Requirements

Exempt entities will not be required to comply with a self-certification process. However, where an exemption applies and all or a subset of contraceptive services are omitted from a plan’s coverage, otherwise applicable ERISA disclosures must reflect the omission of coverage in ERISA plans.

For more information on the interim final rules, please click here.

3Oct2017

Close-up of female hands. Woman writing something sitting at her office

Final 2017 Instructions for Forms 1094 and 1095 Now Available

2017-10-03

ABN

Human Resources

Used for Reporting in Early 2018

The IRS has released the final 2017 Instructions for Forms 1094-B, 1095-B, 1094-C, and 1095-C to help employers prepare for calendar year 2017 Affordable Care Act (ACA) information reporting. Employers will use the final versions of the forms and instructions in early 2018 to report on health coverage offered (or not offered) in the 2017 calendar year.

Key Changes for 2017 Reporting

The 2017 instructions differ from the 2016 instructions as follows:

Instructions to Forms 1094-C and 1095-C: The final instructions have been revised to remove discussion of section 4980H transition relief, as none is available for 2017.
Instructions to Forms 1094-B and 1095-B: While no significant form revisions are listed in the instructions, the “Additional Information” section refers reporting entities to regulations relating to the requirement to solicit the taxpayer identification number (TIN) of each covered individual (including available penalty relief for failure to report a TIN if certain regulatory requirements are satisfied).

2017 Forms

The following forms are now available for calendar year 2017 reporting:

Form 1094-B (transmittal)
Form 1095-B
Form 1094-C (transmittal)
Form 1095-C

Information Reporting Deadlines

The upcoming deadlines for submitting Forms 1094 and 1095 are as follows:

Applicable large employers (ALEs)—generally those with 50 or more full-time employees, including full-time equivalents—must file Forms 1094-C and 1095-C with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). ALEs must also furnish a Form 1095-C to all full-time employees by January 31, 2018.
Self-insuring employers that are not considered ALEs, and other parties that provide minimum essential coverage, must file Forms 1094-B and 1095-B with the IRS no later than February 28, 2018 (or April 2, 2018, if filing electronically). A Form 1095-B must also be furnished to “responsible individuals” (may be the primary insured, employee, former employee, or other related person named on the application) by January 31, 2018.

20Aug2017

Get in the Know About Sports Drinks and Energy Bars

2017-08-20

ABN

Health and Wellness

Exercising is great for your body, but it is important to take care of yourself during and after your workout. You can do this is by staying hydrated and maintaining your blood sugar levels.

Sports Drinks

When you’re exercising, your body quickly absorbs blood sugars for energy. You also lose electrolytes, or minerals such as sodium and potassium, when you sweat. A good way to replenish your blood sugars and electrolytes is to drink sports drinks.

Most sports drinks offer a blend of sugars such as glucose, sucrose, fructose, and galactose. A few may also add maltodextrin, a complex carbohydrate made of several glucose units. Some research suggests that sports drinks offering a carbohydrate blend may improve the number of carbohydrates that eventually get to your muscles as fuel. Different sugars are absorbed in different ways, so the rate of carbohydrate absorption is improved by providing several different sugars.

Sports drinks also come with added electrolytes like sodium and potassium. Sodium, the electrolyte lost in the greatest amount, helps maintain fluid balance in the body and improves hydration.

Energy Bars

With so many varieties available, selecting the right energy bar is anything but simple. To choose the best one for you, read the label. High-carbohydrate bars provide carbohydrate fueling both before and during a long workout. These bars typically provide about 70 percent of their calories from carbohydrates as sugars.

How quickly carbohydrates get into the circulation is referred to as the glycemic index. Eating a high glycemic index bar means a rapid release of carbohydrates into the bloodstream, giving the muscles a quick “shot” of fuel, which is ideal during a workout. Eating a low glycemic index bar results in a slower release of sugar into the circulation and sustained energy, which is best before exercise.

Keep in mind that many energy bars, particularly high-carbohydrate bars, are intended for people who spend an hour or more doing aerobic exercise like biking or running. The best way you can replenish your blood sugars, whether you’re exercising or not, is by eating a balanced diet full of fruits, vegetables, and whole grains.

This article is for informational purposes only and is not intended as medical advice. For further information, please consult a medical professional.

24Jul2017

Should you offer Dental Benefits to your Employees?

2017-07-24

ABN

Employee Benefits

It is relatively inexpensive to include dental benefits in an employer’s benefits plan, and it may help the employer attract and retain highly skilled employees.

Because dental hygiene is associated with overall health, employees with dental plans are often healthier. Employees without dental benefits may postpone or forgo dentist visits in order to save money, and as a result, they can end up with more severe health problems. This may cost an employer more in the long run than if dental benefits were offered.

Various types of dental plans are available. An employer should select one that fits its budget and meets the needs of its employees. Besides traditional dental insurance plans such as managed care and fee-for-service, consumer-driven dental plans—such as dental flexible spending accounts—are becoming more popular.

Employers who are concerned about the cost of offering dental benefits may consider sharing the cost with employees through deductibles, coinsurance and by setting maximum amounts that the company will pay per individual in a specific time period. When designing a dental insurance plan, aim for a plan that is cost-effective and valuable to the company and its employees.

The decision to offer dental benefits is a business decision. Employers should consider their cultures and values as an organization and whether such benefits can help attract and retain valued employees. While dental benefits are an added expense, offering these benefits may save the employer money over time.

11May2017

FAQs on the ACA and COBRA

2017-05-11

ABN

Employee Benefits

Frequently Asked Questions

1. Did the ACA extend the COBRA premium reduction (subsidy)?

No. The ACA did not extend the eligibility time period for the COBRA premium reduction. Eligibility for the subsidy ended on May 31, 2010; however, those individuals who became eligible on or before May 31, 2010, could still receive the full 15 months as long as they remained otherwise eligible.

2. Did the ACA extend the time period individuals can have COBRA beyond 18 months?

No. The ACA did not extend the maximum time periods of continuation coverage provided by COBRA. COBRA establishes required periods of coverage for continuation health benefits. A plan, however, may provide longer periods of coverage beyond those required by COBRA. COBRA beneficiaries generally are eligible for group coverage during a maximum of 18 months for qualifying events due to employment termination or reduction of hours of work.

Certain qualifying events, or a second qualifying event during the initial period of coverage, may allow a beneficiary to receive a maximum of 36 months of coverage.

Individuals who become disabled can extend the 18 month period of continuation coverage for a qualifying event that is a termination of employment or reduction of hours. To qualify for additional months of COBRA continuation coverage, the qualified beneficiary must:

Have a ruling from the Social Security Administration that he or she became disabled within the first 60 days of COBRA continuation coverage (or before); and
Send the plan a copy of the Social Security ruling letter within 60 days of receipt, but prior to expiration of the 18-month period of coverage.

If these requirements are met, the entire family qualifies for an additional 11 months of COBRA coverage.

3. Did the ACA eliminate COBRA?

No. The ACA did not eliminate COBRA or change the COBRA rules.

4. How does the ACA affect an individual’s coverage under a group health plan?

The ACA makes many changes to employee health benefit plans. Some of the changes took effect for the first plan year that began on or after six months after enactment (Sept. 23, 2010)—so, for calendar year plans, Jan. 1, 2011. Many of the ACA’s key reforms (for example, the prohibition on pre-existing condition exclusions for all enrollees) took effect for plan years beginning on or after Jan. 1, 2014.

Source: Department of Labor

5Apr2017

What is Covered as a Preventative Care Service Under the Affordable Care Act (ACA)?

2017-04-05

ABN

Health and Wellness

The Affordable Care Act (ACA) requires non-grandfathered health plans to cover certain preventive health services without imposing cost-sharing requirements for the services.

Prescription Drugs

Under the ACA, all health care plans must cover at least one prescription drug in every class/category of approved medications in the United States. Furthermore, any patient costs for medication must now be applied towards the policy holder’s annual out-of-pocket expenses.

Mental Healthcare

With today’s increased focus on the importance of mental health, insurance plans must now offer coverage for mental and behavioral health services. Specific coverage varies from state to state, with some states requiring a set copay and others placing a cap on the number of approved therapy sessions per patient each year.

Rehabilitative Services

For both short and long-term rehabilitation from injuries and illnesses, the Affordable Care Act now requires insurance companies to provide coverage for therapy needed to help patients recover. This could include anything from medical equipment (canes and wheelchairs) to physical therapy sessions.

Laboratory Services

All preventative screenings, including pap smears for women and prostate exams for men, are now required to be covered under the ACA.

Maternity/Newborn Care

This was one of the major changes under the ACA, as many insurance plans did not offer this type of coverage in the past or if they did, charged more to include it as an additional rider. Today, all plans are required to cover prenatal care, childbirth, and infant care following delivery.

Pediatric Care

In addition to newborn care, children under the age of 19 will also be entitled to teeth cleanings, X-rays, and other basic medical/dental care under the ACA.

Preventative Services

As a result of the ACA, many insurance plans provide coverage for a range of preventative services and may not charge a copayment, deductibles, or coinsurance to patients receiving preventative care. Preventative care includes medical tests, immunizations, screening labs, preventative medications and other services that would prevent disease.

Hospitalization

Insurance companies must now cover hospitalization for serious medical issues under the new law. However, policyholders should review their policies carefully, as they may still be required to meet their annual out-of-pocket maximums before this coverage will kick in.

Emergency Care

In the event of a medical emergency, the ACA mandates you cannot be charged extra for seeing an out-of-network provider and that you no longer need pre-authorization to visit an emergency room.

Outpatient Care

Most plans already provide coverage for outpatient care, but the ACA has made coverage minimums, including network sizes, much more strict.

15Mar2017

The Top 3 Cobra Mistakes

2017-03-15

ABN

Human Resources

Compliance with the complex rules regarding COBRA coverage can be difficult and mistakes can be costly. Penalties for non-compliance can include IRS excise taxes and ERISA statutory fines. See below for some of the most common mistakes benefit administrators make when it comes to COBRA:

1. Bad Timing
In the context of COBRA, paying attention to the timing of providing coverage can be crucial for reducing exposure to COBRA costs and being compliant with the rules. The duration of COBRA coverage is controlled by the COBRA statute. Complying with these rules by providing the length of coverage required is important. At the same time, many plan sponsors want to minimize the likelihood of being responsible for large claims by COBRA QBs by only providing the minimum duration of coverage.

The period of COBRA coverage offered to QBs is known as the “maximum coverage period.” The length of the maximum coverage period depends on the type of qualifying event that has occurred. The maximum coverage period is 18 months for a termination of employment or reduction in hours and 36 months for all other qualifying events. There are situations where the maximum coverage period can be extended or terminated early.

2. No Documentation
No matter how good your COBRA compliance track record is, you can still run into trouble if you can’t prove it. Adequate documentation is important because it brings together all other elements of COBRA administration and compliance. Having thorough and accurate records will help streamline administration and support the plan in the event of a claim.

There are many different areas where documentation can help avoid COBRA compliance issues. For example, a plan’s COBRA notice information and procedures can be documented in the SPD and notice documents themselves, as well as the plan document if necessary. A plan administrator should also keep records of notices sent to and received from participants and QBs. Keeping track of payments received from QBs and made to insurers, as well as the deadlines for payments, will also assist in the proper administration of COBRA coverage.

3. Charging too Much (or not enough)

A health plan may charge COBRA QBs for the cost of providing COBRA coverage. It may require QBs to pay up to 102% of the “applicable premium” for the plan. In the case of a disability extension, it may charge up to 150% of the applicable premium for certain QBs. The applicable premium is the cost to the plan of providing coverage. For insured plans, the applicable premium is usually equal to the insurance premium paid to the insurance carrier. However, the calculation can be more difficult for self-funded plans and can be determined using past costs or an actuarial estimate of future costs. The applicable premium is the total cost to the plan for providing coverage, so it includes both employer- and employee-paid portions and can also include the administrative cost of providing COBRA coverage.

The plan must calculate the COBRA applicable premium in advance for a 12-month “determination period.” The plan can choose any 12-month period to be the determination period, but it must remain consistent every year. The COBRA premium may be changed for a new determination period if the applicable premium changes and there are certain limited situations where the COBRA premium may be changed during the determination period (for example, if the QB changes coverage to another benefit package with a higher applicable premium).

The plan administrator should use caution in calculating the COBRA premium as well as in communicating that premium to QBs. Fixing mistakes that result in over- or undercharging QBs for COBRA premiums can be administratively burdensome and raise COBRA compliance issues.

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