by admin | Feb 6, 2023 | Employee Benefits, Health Insurance
Getting sick can be expensive. Even minor illnesses and injuries can be very costly to diagnose and treat. Health care coverage helps you get the care you need and protects you and your family financially if you get sick or injured.
We’re breaking down the health insurance basics. Because, when you understand it, you’re more likely to get preventive care, make better health decisions and even reduce your costs.
55% of people can’t answer basic health insurance questions and younger generations struggle with understanding the fundamentals of insurance even more. 69% of millennials and 64% of Gen Zers admitted they’ve opted not to seek care due to uncertainty about their health insurance.
Put simply, health insurance is a way to pay for your health care. Your health insurance protects you from paying the full costs of medical services when you’re injured or sick. And it works the same way your car or home insurance works: you or your employer choose a plan and agree to pay a certain rate, or premium, each month. In return, your health insurer agrees to pay a portion of your covered medical costs.
How Health Insurance Payments Work
Your premium, or how much you pay for your health insurance each month, covers some or all the medical care you receive – everything from prescription drugs to doctors’ visits. Most people choose a health insurance plan based on the benefits and medical services the plan covers, as well as on monthly cost. But there are other factors to consider as well, like what you will be required to pay when you see a doctor or a health care facility.
These out-of-pocket payments are important to understand and know the differences between them:
- Deductible – A deductible is the amount you pay out of pocket on healthcare costs before your insurance company starts to contribute to your healthcare costs for the year. Generally, a plan with a lower deductible will have a higher monthly premium than a plan with a higher deductible.
- Co-pay – A co-pay is a set fee you pay for a doctor visit. For example, if your policy lists a co-payment of $20 for a doctor visit, you pay that amount each time you see the doctor. Keep in mind that the co-pay will differ for different services. What you pay for a trip to the emergency room will probably not be the same as a co-pay for a visit to your primary care physician.
- Co-Insurance – Co-insurance is the amount you pay for covered health care after you meet your deductible. This amount is a percentage of the total cost of care – for example, if your co-insurance is 20%, your insurance covers the other 80%. Co-insurance levels vary by plan, as do deductibles.
- Out-of-Pocket Maximum – An out-of-pocket maximum is a limit on the amount of money you have to pay for covered services in a plan year. After you spend this amount on your deductible, co-payments and co-insurance, your health plan pays 100% of the costs of covered benefits.
Knowing how your insurance and healthcare costs are structured is an important part of your personal finances. When you choose a plan, look at your typical healthcare needs and costs so you can make the best decision for your health, and your wallet.
by admin | Jan 23, 2023 | Employee Benefits
A hot labor market that has seen scores of employees leave their jobs for new and better opportunities has HR and benefits leaders planning to up the ante when it comes to benefits that sway workers to stay. But at the same time, employers also are aware of soaring costs and inflation concerns and are looking to make sure any benefits investments are worthwhile.
For 2023, employers are uniquely positioned to offer more than just a health care plan, including perks and resources that today’s workers are seeking.
Voluntary Benefits
You can please some of the people some of the time, but you can’t please all the people all the time – unless you embrace voluntary benefits, that is. Voluntary benefits are optional perks that are offered to employees at a discounted group rate which their employer has negotiated with providers. While employees still need to pay to use these benefits, the amount is usually far less than it would be without company subsidies.
These types of benefits give employees the chance to customize their benefits packages to best suit their particular needs. Whether it’s affordable veterinary insurance for pet owners, subsidized pre-K childcare for parents, or student loan repayment programs, offering these types of policies can directly improve the quality of life for employees who choose to take advantage of them.
Financial Wellness Benefits
Employees worry and stress about their finances especially today due to record-high inflation and are searching for financial wellness education and guidance. Nearly 80% of employees say a financial wellness benefit is an important part of a comprehensive benefits package. Some of the popular financial wellness benefits are:
- Retirement Plan Options with Matching Contributions
- Health Savings Accounts
- Flexible Spending Accounts
- Financial Planning Assistance
- Flexible Paydays
- Employee Discount Program
- Financial Reimbursements (Ie. student loan repayment plans, child-care support funds and professional development stipends)
Family-Friendly Benefits
Employers are increasingly looking to expand their family-friendly benefits for employees in 2023.
- Paid family leave is not guaranteed by law in the U.S. but it is a highly sought-after perk. A parental leave policy – one that considers both parents and accounts for adoption and fostering in addition to childbirth – can show your employees you care about supporting their home lives.
- Childcare assistance supports working parents facing rising costs of living. While some larger employers may offer on-site childcare, smaller business can show their commitment to working parents by helping to subsidize the cost of childcare through employer contributions or pre-tax deductions.
- Fertility assistance supports employees who are going through costly infertility treatments, surrogacy, and IVF.
Inclusive and Flexible Care
The diverse workforce of 2023 is prioritizing a better work-life balance. It’s important to develop a benefits package that recognizes a healthy environment for your employees.
- Mental health benefits are in demand since mental health is a crucial part of overall health. Offering an employee assistance program (EAP) is a great way to support workers in tough situations.
- Work flexibility includes not only remote or hybrid work options, but you can also consider flexible start and stop times, a four-day work week or unlimited PTO to attract top talent and increase retention.
Overall, your benefits offerings for 2023 should reflect your organization’s values. Remember, your company depends on being able to keep your employees happy, healthy, and productive. Benefits that show respect for employees and promote a strong, vibrant culture are worth the investment.
by admin | Jan 16, 2023 | Hot Topics, Human Resources
The new year is on the horizon, and everyone is predicting what 2023 HR trends to anticipate. Recently, HR Exchange Network posted a question on Terkel.io to discover what Human Resources and business leaders will be navigating, challenging, and experiencing in the year ahead. Here are the answers:
Bring It with Gamification
“Gamification is one of the biggest HR trends of 2023. It’s the use of game-like elements in non-game contexts, such as using points, badges, and leaderboards to encourage employees to achieve their goals. Gamification can also be used to engage employees in learning new skills or knowledge. There are many ways to gamify your HR program, but one of the most important things to keep in mind is that you need to make sure the games you create are fun and challenging.” -Antreas Koutis, Administrative Manager, Financer
Become the Great Communicator
“Many employers face an uncertain future in 2023. Rising inflation, utilities prices, and the possibility of economic recessions are all combining to introduce doubt about the next 12 months. One of the biggest questions for HR and senior leaders is going to be what they do on staff pay in response. Raise salaries to keep people afloat or hold back because the possibility of a recession may erode profitability? For those companies who can’t raise salaries to match inflation, benefits are going to become even more important.
Crucially though, employers may not need to introduce new benefits, just to communicate better about existing ones…2023 may be the year that HR seeks to make benefits communications louder through a multichannel communications strategy that reaches every worker, no matter where they are.” -Scott Hitchins, CMO, Interact Software
Meet in the Metaverse
“The biggest HR trend is Metaverse. According to Gartner, 25% of people will spend at least one hour daily in the metaverse by 2026. This suggests that some of these initiatives, such as virtual events, employee onboarding, career fairs, and meetings, will be launched by the biggest companies in this field in 2023. The metaverse makes it possible to reimagine a creative, collaborative, and productive world without being restricted by physical conventions.
The small number of companies that have begun to take advantage of the metaverse’s possibilities will have more modern employer brands, more exciting interactions with remote applicants, and even be able to increase productivity. To employ technology effectively, our HR ensures healthy metaverse working procedures by creating new hybrid working policies and training leaders through sessions on how to lead in this unique, upcoming setting.” -Shaun Connell, Founder, Writing Tips Institute
Put Out the Fire to End Burnout
“One of the biggest HR trends of 2023 will be the initiatives to counter or avoid employee burnout. Employee wellness will be emphasized more because it’s one of the factors that applicants prioritize when looking for a job. If you want to hire quality talent, you must attract them with quality compensation, which is why wellness programs that prioritize employee health, happiness, and contentment will be a big deal in the future.
To prepare for this, we have already slowly implemented a few programs. A part of our employee benefits includes a health care plan that encompasses mental health services. They may not be open to seeking help from peers and their manager, but at least you made it known that you have provided it for their use at any time in case they need counseling and therapy.” -Debbie Meeuws, Owner and CEO, Nature’s Arc Organic
Get Your People to Stay
“I think one of the biggest HR trends of 2023 will be a focus on employee retention. With the economy slowly recovering from the pandemic, companies will be more worried about losing their top talent to competitors. Companies will increasingly recognize that it is more cost-effective to invest in retaining existing employees than to constantly recruit and train new ones.
They’ll therefore invest more in employee development and engagement programs. I’m preparing for this trend by ensuring that our HR policies and practices are aligned with our company’s strategy and goals. We’ll also need to focus on creating a positive work environment and offering competitive benefits packages.” -Johannes Larsson, Founder and CEO, JohannesLarsson.com
Make It the Year of Flexibility
“One of the biggest HR trends of 2023 will be the continued rise of remote work. With more and more companies embracing flexible work arrangements, it’s likely that even more employees will be working from home in the next few years. To prepare for this trend, my HR team and I are focusing on creating policies and procedures that will make it easy for employees to work remotely. We’re also working on ensuring that our communication and collaboration tools are up to date so that everyone can stay connected no matter where they are.” -Erik Pham, CEO, Health Canal
Invest in Self-Care
“A subtle problem is affecting organizations. According to the American Psychological Association (APA), the pandemic’s effects on workplace stress were felt by more than three out of five employees. Eighty-seven percent of Americans are concerned about inflation, and seven in 10 workers are worried that their income hasn’t grown to reflect increases in purchasing power. In order to address the burnout dilemma, HR must first address its own.
Even though it may go against the basic requirement of their profession to prioritize helping others, human resources specialists should put on their own oxygen masks first. If not, the department won’t have the resources to help the rest of the business. The next thing we expect HR to do is to take a more proactive approach to resilience and well-being. This requires developing a more comprehensive employee welfare strategy that gives priority to their financial, physical, and mental well-being.” -Brad Burnie, Founder, Starships
Promote from Within
“One potential HR trend in 2023 is the prioritization of internal mobility to boost employee morale and foster career development. Companies will invest in reskilling and upskilling their existing employees to prepare them for more extensive and technical roles. Doing so will allow these employees to progress in their chosen fields, which equates to team growth and professional satisfaction.
As early as now, we’re slowly diverting our efforts to internal mobility, which financially benefits our company and accelerates our recruitment process. Since we no longer need to outsource talents, we can focus more on our current employees, allowing us to assess better who deserves to get promoted based on their running performances. It also lets us save on future financial expenses, as spending to retain existing talents is more budget-friendly than acquiring new ones.” -Sam Tabak, Board Member, RMBH Charities
Be More Transparent about Pay
“Given the new laws that have gone into effect recently (New York’s Pay Transparency and Colorado’s Equal Pay) along with the new laws going into effect in Washington and California, keeping pay behind closed doors is going to become increasingly difficult. There are many different approaches to this, but I am in favor of first making sure all employees within the company are within the band and then making all bands public. While it may be a bit radical, I’ll tell you why.
First, it increases transparency and equitability for your employee population, which I’ve seen often results in more buy-in than less. Second, it wastes less time for the company and candidates during the recruiting process. Lastly, attracting more talent within range, which long-term is better ROI. While this sort of transparency can be very hard for companies, in my experience it’s a ton harder to deal with the potential ramifications of not posting them, both from a compliance perspective and as a talent retention tool.” -Cheyenne Horvat, Manager, People Ops, Carta
Rely More on Advanced HR Tech
“Algorithmic HR is already gaining ground in the gig economy. Experts are anticipating that by 2023, the majority of HR departments across the industry will start relying on it as well for HR management. The prediction is there will be vast incorporation of AI for HR functions such as hiring and firing candidates, growing the candidate pool, and facilitating employee engagement in the workplace.
In our company, we’re preparing to incorporate algorithmic HR in our operations by slowly integrating AI and machine learning into our recruitment process. We’re conducting A/B testing to find the best AI tools that work best for us. We want to take ownership of this new system so that we can ensure that there is fairness and inclusion in this process.” -Stacie Tyler, CFO, Walk Big Media
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Jan 10, 2023 | Financial Planning
It’s often thought that having money leads to happiness. While that’s not necessarily true, being financially secure does create a sense of well-being which impacts your mental and physical health. To address our whole health in 2023, we need to understand the relationship between financial and physical wellness.
Inflation, at 7.1%, has made financial stress worse and the rise in prices has had a major impact on people’s finances and their ability to afford everyday purchases. In February 2022, the American Psychological Association(APA) reported the highest number of people experiencing money-related stress since 2015 – 65% of respondents said money is a significant source of stress. Younger people are more stressed about money, with 82% of Gen Z (ages 18-25) and 81% of millennials (ages 26-43) reporting that money is a stressor.
When you are experiencing financial troubles or have unforeseen expenses to cover, your health may be impacted.
People with financial burdens often neglect important preventive care or medical regimens. Delaying routine exams and preventive screenings can make it difficult to catch medical issues early when they are easier and less costly to treat. Additionally, experts have found that stress from money problems tends to be chronic, or long-lasting.
Remember that it is important to continue making your physical health a priority as you work on your financial well-being. Although you may likely still face financial stress, there are ways to make it more manageable:
- Eat a healthy balanced diet
- Exercise regularly
- Practice stress reduction techniques (taking a walk, yoga, connecting with others)
- Utilize an employer financial wellness program, if available
- Talk to a financial advisor to develop a plan of action
Without the right relief strategies in place, a vicious cycle of financial and physical stressors affecting one another can form. Creating a plan to properly address your overall well-being can help you understand how this cycle works and how financial stress and physical unfitness are interconnected.
