Employee Benefits updates

Employee benefits today      

August 8, 2016

Jennifer Aniston Heineken Commercial

Click picture to watch
Dear 
:


We are gearing up for 4th quarter health insurance renewals.  October rates are not expected to be available until first week of September in the small group marketplace.
The renewal process continues to be a challenge regardless of how many employees you have.  


One common theme, however, is the emphasis on Wellness and Employee Engagement. For most of us, we have little control over the premiums, but we do have control over how we use our plan and how we emphasize and communicate the importance of annual physicals and taking the initiative to educate our selves on our own health and health plan.  


We just met with a small group in Worcester and some of the employees did not know there was a fitness reimbursement... Some of them did not understand that Urgent Care Centers were cheaper than ER rooms.  And then some did not understand the importance of generic medicines and prescription mail order plans.


It may be helpful to your employees to have Advantage Benefits come give a quick talk to your employees and reeducate them on all the features available.  Having an "outsider" talk  to employees usually is well received and most employees appreciate the opportunity to learn more.
 
If you have any questions please send us an e-mail.   We would really appreciate if you would forward this newsletter to anyone else you know who owns a business. 
 
Sincerely,



Employers can lower their FICA Responsibility 


Right now most employers have Section 125 plans that allow employees to pay Health and Dental Insurance with pre-tax dollars.  Unlike a 401K, which only reduces the employee Federal and State tax obligations, not FICA taxes, the Section 125 Plan reduces the FICA taxes for both employee and employer.



What is FICA?


The Federal Contributions Act (FICA) is a law that requires funds be deducted from wages for Social Security (12.4%) and Medicare (2.9%) for a total FICA contribution of 15.3%.  Half of the deductions, 7.65%, are paid from the employee's wages and the other half, 7.65%, are paid by the employer.



Recently we met with a client with 10 employees on health insurance.  Employees paid 25% of the premium which resulted in total monthly Section 125 deductions of $3,000.    The Section 125 saves 
both the employees and employer $2,754 per year.


Flexible Spending Accounts (FSA)



Once again, because of plan design changes and the ability to "rollover unused funds" the FSA is a topic that merits your attention.  Administration fees and expenses have also become more affordable.  Basically in many cases the Employer savings in FICA more than covers the cost to implement and administer the plan. 



Lets take a look at the same 10 person group and see how much the Employer can save in FICA to start an FSA.   The group estimates all 10 employees will defer $1,000 annually, or $10,000 as a group.  At 7.65% this will save the employer and employees $765 per year.  



In total, the Section 125 for the premiums and now unreimbursed medical expenses (FSA) saves the employers and employees $2,919 per year!!     Next thing the group may add to the Section 125 is the ability to pay for daycare.   If you want a quote on an FSA plan, send us an e-mail.   
 




Great Job Blue Cross!
Blue Cross of Mass. surpasses federal requirements

4th year in a row 


 Proponents of Single-payer healthcare base their whole case on the belief that most of the premium dollars go to administration.   If we combined all the insurance companies into one "single-payer" system here would be material savings and premiums would drop.



This would be very similar to how Medicare is run, thus you may hear Single-payer national health insurance, also referred to  as "Medicare for all".   We have heard proponents for "single-payer" say administration costs are as high as 30% of the premiums.   In other words 30 cents of every dollar in premium goes to administration.


 
The truth is that State and Federal law require health plans to spend a significant portion of each premium dollar on the medical care of its members. Health plans that do not meet these benchmarks are required to issue rebates to their customers. Massachusetts' standards for individuals and small businesses are the highest in the nation.



 For the fourth straight year, Blue Cross' administrative spending was below state and federal requirements.   Blue Cross consistently exceeds state and federal standards by spending more than 90 percent of every premium dollar on its members' medical care.



   
 


The annual Medical Loss Ratio (MLR) is a funny talking point....  Tufts has been one of the carriers that pays out a rebate to clients for the last several years, while Blue Cross has satisfied all the requirements, therefore no rebate is necessary.  Some of our clients with Tufts actually look forward to getting the rebate each year... While some of our clients with Blue Cross ask why they don't get a rebate?


Blue Cross should make more of a big deal of how well they have managed their block of business and exceeded all of the basic requirements!


The benefits of Open Enrollment Fairs, Employee Appreciation Days, and Wellness Events


  

Over the last 3-4 years we have spent a lot of time talking about Employee Engagement and Wellness.  Employers spend a lot of money on health insurance and there is little appreciation or understanding of the true costs paid out by employers.  Its not until an employee is terminated and find out what the Cobra Monthly Premium is... then they see how expensive monthly premiums are.




We have been able to organize a variety of events for our clients.  Here is a sample of some of the activities we can offer:


*  Blood Pressure Screenings
*  Cholesterol & Glucose Screenings
*  Body Mass Index
*  Sun Damage Analyzer
*  Chiropractors for Back Screenings
*  Optometrists for Vision screenings
*  Nutrition and Healthy Eating Workshop
*  Smoking Cessation Workshop
*  On Site classes for Yoga & Self Defense
*  Seated Massages
*  Reflexology
*  Access to Personal Trainers & Fitness Discounts
*  Lyme Disease seminar and education




Think about an event that would educate employees while having fun in a nonthreatening way.  We have written about the Mass Wellness Credit in the past and have had several clients take advantage of it.  WE have posted videos and pictures of some of those events.  Feedback from those clients are all very positive and we continue to put together events for them.


At some of the events we usually have a table with insurance benefits to remind employees of what insurances are available.  Once again this is a great way to promote the benefits you provide as an employer.


Want to learn more?  
Email us now...

Foam Roller Demonstration
Employees Engaged with the Foam Roller


 
Co-ops have failed 
 
Remember when one of the products of Obamacare, Co-ops, were going to pop up everywhere creating more competition and bring costs down??  Great article in the St Louis Dispatch describing the latest collapse of a Co-op, Land of Lincoln.  



Here is a key line from the column that tells you everything you need to know:


A year ago there were more than 20 co-ops across the U.S., providing coverage to about 1 million Americans. By this fall, after the co-ops in Illinois, Oregon, Ohio and Connecticut close, there will be just seven, covering about 350,000 people.

 
Those seven all lost money last year - and may yet go out of business before the calendar turns to 2017.   All that failure has been pricey. Taxpayers are out $1.7 billion in federal loans that these co-ops will never pay back.


The co-ops stand out as perfect examples of how Obamacare's idea of government-managed "competition" is doomed to fail.  Our first Olympic memory, Mark Spitz in 1972.


Mark Spitz video


 
  Advantage Benefits Group       

78 Pleasant St Worcester MA 01609

     800-426-2413 (Bill)                508-798-0887 (Vanessa)

 508 4-14-8305  (Bill cell)          508-494-8303 (Vanessa cell)

[email protected]     [email protected]

Name | Company | Phone | Email | Website

STAY CONNECTED:



Advantage Benefits | 78 Pleasant Street | Suite 300 | Worcester | MA | 01609