by admin | Dec 12, 2024 | Employee Benefits
Many employee benefits are subject to annual dollar limits that are adjusted for inflation. For 2025, most of these limits have increased. However, some limits, such as those for dependent care Flexible Spending Accounts (FSAs) and Health Savings Account (HSA) catch-up contributions, remain unchanged.
Key Benefit Limits for 2025:
Health Savings Account (HSA) Contributions
- Single Coverage: $4,300 (up $150 from 2024)
- Family Coverage: $8,550 (up $250 from 2024)
- Catch-up Contributions: $1,000
Important Considerations for Employers
Employers should ensure that their payroll systems are updated to reflect the new 2025 benefit limits. Additionally, it’s crucial to communicate these changes to employees to help them make informed decisions about their benefits.
By staying informed about the latest benefit limits, employers can help employees maximize their benefits and plan for their financial future.
by admin | Nov 11, 2024 | Employee Benefits
Employee benefits can be a complex landscape, filled with acronyms and unfamiliar terms. In fact, more than 50% of American adults report that they don’t have a clear understanding of their health insurance. Many people are confused because they reach adulthood without ever learning the basics of health insurance terminology. Illiteracy about health insurance is costly to employees and employers alike. Educating employees on common benefits lingo can help them make informed decisions and maximize their benefits.
We have created a list of the most common terms to help your employees understand and better utilize their health benefits:
- Ancillary (or Voluntary) Benefits: Supplemental benefits not included in most traditional group health insurance plans.
- Co-payment: An amount you pay as your share of the cost for a medical service or item, like a doctor’s visit. Co-pays are most common for emergency room, urgent care and prescription drugs. In some cases, you may be responsible for paying a co‐pay as well as a percentage of the remaining charges.
- Co-insurance: Your share of the cost for a covered health care service, usually calculated as a percentage (like 20%) of the allowed amount for the service. For example, if your plan has a 30% co-insurance rate, the carrier will pay 70% of the allowed amount while you pay the balance.
- Deductible: The amount you owe for covered health care services before your health insurance or plan begins to pay. For example, many plans require an individual to pay $1,000 in cumulative deductibles before they begin paying out.
- Dependent Coverage: Health insurance coverage extended to the spouse and unmarried children up to age 26 who are totally or substantially reliant on their parents for support, thereby defined as “dependent children”.
- Explanation of Benefits (EOB): Every time you use your health insurance, your health plan sends you a record called an “explanation of benefits” (EOB) or “member health statement” that explains how much you owe. The EOB also shows the total cost of care, how much your plan paid and the amount an in-¬network doctor or other healthcare professional is allowed to charge a plan member (called the “allowed amount”).
- Formulary: A list of prescription drugs covered by a health plan that often has different tiers based on the type of covered medication. Prescription medicines listed in one tier may cost you more than those in another tier.
- In-Network Provider: A provider who has a contract with your health insurer or plan to provide services to you at a discount. In-Network providers have contracted with the insurance carrier to accept reduced fees for services provided to plan members. Using in-network providers will cost you less money.
- Open Enrollment: A period during which a health insurance company is required to accept applicants without regard to health history.
- Out-of-Network Provider: A provider who doesn’t have a contract with your health insurer or plan to provide services to you at a pre-negotiated discount. You’ll pay more to see an out-of-network provider.
- Out-of-Pocket Maximum: The limit or most you’ll pay out of your own pocket for services during your insurance plan period (usually one year).
- Premium: The amount you pay for your health insurance or plan each month.
- Qualifying Life Event (QLE): A change in your life that allows you to make changes to your benefits’ coverage outside of the annual open enrollment period. These changes include a change in marital status (marriage, divorce, death of spouse), a change in the number of eligible children (birth, adoption, death, aging-out), and a change in a family member’s benefits eligibility under another plan (losing a job, Medicare or Medicaid eligibility, etc.)
Understanding the terms and acronyms can feel like learning a new language, so it’s helpful to educate your employees. With a good understanding of what some healthcare “benefits lingo” means, it will be easier to find a plan that meets the needs and budget of your company and employees!
by admin | Oct 15, 2024 | Employee Benefits, Flexible Spending Accounts
When it comes to health insurance, there is a lot of jargon and plenty of acronyms. Many people have heard of FSAs, but may not actually know — what is a flexible spending account, exactly?
If you have an employer-sponsored health plan, a flexible spending account (FSA) is often available as part of the benefits package. There are two types of FSAs: one for health and medical expenses and another for dependent care/childcare costs. Both are designed to help you set aside money during the year for out-of-pocket expenses while enjoying tax benefits.
When you contribute to an FSA, the money is taken from your paycheck before taxes are removed and is never taxed. The Federal FSA Program estimates that those with an FSA save 30 percent on healthcare expenses on average.
How Does an FSA Work?
- Contributions: You contribute a portion of your pre-tax salary to your FSA. You set a contribution amount to be deducted from each paycheck, up to the federal limit, which for 2024 is $3,200.
- Rollovers, etc.: Employers have the option of allowing employees to roll over up to $640 in 2024 or they can provide a 2 ½ month grace period during which employees can spend their remaining contributions, but they can’t offer both.
- Reimbursement: Use your FSA funds to pay for qualified medical expenses. You typically submit receipts for reimbursement.
- Tax Benefits: Contributions are made with pre-tax dollars, reducing your taxable income.
What Can You Spend Your FSA Money On?
- Medical expenses: Doctor’s visits, prescriptions, dental care, vision care, and mental health services
- Over-the-counter medications: Many OTC medications, like pain relievers and allergy medications
- Medical equipment: Items such as crutches, wheelchairs, and diabetic supplies
- Dependent care expenses: Childcare or elder care costs, which can include before and after school care, preschool, and adult day care. In 2024, employees may contribute up to $5,000 if filing jointly or $2,500 if filing taxes separately.
Key Points to Remember:
- Use-It-or-Lose-It: Generally, any unused FSA funds at the end of the year are forfeited. However, some plans offer a grace period or carryover options.
- Contribution Limits: There are annual contribution limits for FSAs, set by the IRS.
- Dependent Care Expenses: If you have dependent care expenses, you can use your FSA to pay for them up to a certain limit.
Is an FSA Right for You?
Opening an FSA is a great way to save money on taxes and prepare for healthcare costs. As with other types of savings accounts, it allows you to contribute and stash away money, but in this case, that money is taken out of your paychecks in a set amount and is nontaxable. Check to see if your employer matches contributions as well.
Understanding the rules, benefits, and limitations of these accounts will allow you to maximize their value and ensure you’re making the most of this valuable employee benefit.
by admin | Sep 16, 2024 | Employee Benefits
Get ready for a new wave of talent! Gen Z (born between 1997 and 2012), or Zoomers, is the youngest generation entering the workforce, and they’re bringing fresh perspectives and priorities. Unlike previous generations, Gen Z isn’t just punching a clock. They crave opportunities for personal and professional growth, a workplace that prioritizes mental well-being, and financial security for the future.
Gen Z Wants Traditional Benefits….with a Twist
Even though Gen Z are digital wizards who love technology and new and innovative ways of doing things, they do still want and need more traditional employee health benefits as well. It’s important to provide traditional benefits such as extended health, dental, vision, and disability, but make sure to tweak them so they are more relevant to Gen Z.
For example, including a virtual pharmacy into your prescription drug coverage is likely to resonate with Gen Z. They’re accustomed to having products and services delivered straight to their door, so receiving prescription medications by mail just makes sense to them. Additionally, it’s important to adjust the coverage provided in conventional extended health plans. For example, offering access to a broader array of paramedical practitioners beyond what’s typically included in a traditional plan is essential. Gen Z prefers seeing Chiropractors, Acupuncturists, and Dieticians.
Gen Z Wants Purpose, Not Just a Paycheck: Build a Thriving Workplace
Gen Z isn’t interested in just showing up and collecting a paycheck. They crave a purpose-driven work environment that fosters their growth, well-being, and love of collaboration. So, how do you attract and retain this talented generation?
Create a Culture of Learning and Growth: Offer a mix of benefits that cater to their desire for continuous learning and skill development. Think mentorship programs, skill-building workshops, and opportunities for career advancement. This keeps them engaged and constantly evolving, while also ensuring you have a future-proof workforce.
Align Work with Values: Gen Z wants to feel like their work makes a difference. Provide volunteer opportunities that resonate with their social and environmental concerns.
Gen Z: Work-Life Harmony + Tech-Powered Teams
For Gen Z, work isn’t just about the job, it’s about fitting seamlessly into their lives. That’s why flexible work arrangements are key – think adaptable hours and remote work options. This allows them to maintain a healthy work-life balance and pursue their passions outside of work.
Gen Z also thrives in collaboration. Foster a work environment that encourages open communication, teamwork, and a sense of community.
Financial Fitness for Gen Z
Financial stress is a major burden for Gen Z, with nearly half (48%) reporting it heavily impacts their mental well-being. To attract and retain this talented generation, employers can offer financial wellness programs that go beyond a paycheck.
Imagine offering tools for budgeting, debt management, and long-term financial planning. Add to that benefits like student loan repayment assistance, financial planning education, and accessible advice on saving and investing.
Gen Z and Mental Wellness: It Matters
Mental health is a top priority for Gen Z. Studies show that Gen Z workers have more mental health needs when compared to older generations, with over 75% saying they struggle with anxiety or depression. It’s clear: a healthy work environment is just as important as a paycheck for this generation.
Employers can meet these expectations by offering comprehensive mental health coverage, free counseling sessions, virtual and in-person counseling options, and grief support.
Gen Z Values Telehealth
Zoomers, the digital natives, have grown up in a world where convenience and efficiency are paramount. This translates directly into their expectations for healthcare. Telehealth benefits have become a must-have for employers looking to attract and retain this tech-savvy generation.
The Future of the Workplace
The key to engaging Gen Z lies in understanding their unique values, expectations, and preferences. It’s not just about incentives. Instead, the real task lies in shaping an employee value proposition that recognizes Gen Z’s individual aspirations, progressiveness, and the shifting employment landscape.
by admin | Sep 4, 2024 | Employee Benefits, Hot Topics, Open Enrollment
Navigating health insurance can feel like planning a vacation. You wouldn’t pack for a beach trip if you’re headed to the mountains, right? Similarly, choosing a health plan requires careful consideration.
Open enrollment is your chance to design a plan tailored to you; it is your yearly opportunity to review and adjust your employee benefits package.
What is Open Enrollment?
Open enrollment is a specific window of time, typically every autumn, when employees can enroll in, change, or drop benefits offered by their employer. These benefits typically include health insurance, dental, vision, life insurance, and medical spending accounts. Outside of this period, changes are usually only allowed under special circumstances. Open enrollment is like a health checkup for your financial well-being, ensuring you have the right coverage to protect yourself and your family.
Why is Open Enrollment Important?
- Life Changes: Major life events like marriage, birth, or adoption can significantly impact your benefit needs.
- Plan Changes: Insurance providers often adjust their plans and rates annually.
- Cost Control: Reviewing your options can help you find ways to save money on premiums and out-of-pocket costs.
- Maximizing Benefits: Ensure you’re taking full advantage of the benefits offered by your employer. You may even discover hidden gems in your plan like discounts or a wellness program within your current plan.
Tips for Open Enrollment Success:
- Understand Open Enrollment Terms
- Review Your Current Coverage: Understand your existing benefits and how you’ve used them throughout the year.
- Estimate Healthcare Costs: Consider factors like doctor visits, prescriptions, and potential major medical expenses.
- Compare Plan Options: Evaluate different plans based on premiums, deductibles, copays, and network size.
- Involve Your Family: Discuss your options with your family to ensure everyone’s needs are met.
- Ask Questions: If you have questions, don’t hesitate to contact your HR department or benefits provider.
- Remember the 4 D’s When Choosing a Plan: Take into account doctors, drugs, diagnostics and deductibles. Be sure your doctors are in-network, your drugs are covered, and key diagnostic tests like blood tests and imaging are accessible and your deductible meets your financial needs.
Open enrollment season is right around the corner! Take the time to prepare now; remember, the decisions you make during open enrollment can have a significant financial impact on you for the following year. So, be sure to read up, think of your options, and select carefully!
by admin | Aug 26, 2024 | Employee Benefits
Today’s workforce is a mix of generations, but you can’t afford to overlook Millennials, the largest generation in the workforce. Known for their flexibility and problem-solving skills, Millennials bring a powerful combination of experience and value to any company.
Millennials, also known as Generation Y, are a driving force in today’s job market. This generation (born between 1981 and 1996) seeks more than just a paycheck. They crave fulfilling work that aligns with their values and makes a positive impact. For Millennials, a job is an extension of themselves, a way to contribute to a better world.
Millennials at Work: It’s All About Purpose and Growth
Millennials aren’t just looking for a job; they’re looking for a mission. They want to be engaged, grow personally, and feel their work aligns with their values. Companies that offer volunteer opportunities related to social or environmental causes will resonate with this generation. Continuous learning and development programs are also key – they keep Millennials feeling challenged, relevant, and satisfied in their careers. This investment in your employees translates to a loyal and engaged workforce, bringing fresh ideas and a passion for making a difference. It’s a win-win!
Millennials Want Work-Life Harmony: Offer Flexibility and Well-being
Millennials crave a work environment that bends with their lives, not the other way around. That means flexible work arrangements like parental leave, adaptable schedules, and remote work options. They want to be able to tailor their work life to their personal needs and passions. But it’s not all about free time. Millennials also prioritize well-being at work. Offering mental health resources is a big plus, showing you care about their overall health and creating a work environment where they can thrive. By catering to these desires, you attract top Millennial talent who are not only happy but also dedicated to their work.
Millennials and Money: Help Them Breathe Easier
Student loans are a heavy burden for many Millennials. That’s why benefits like student loan repayment assistance programs are a major attraction. Financial planning services are also highly valued by this generation facing long-term financial goals. By offering these resources, you show Millennials you understand their practical needs and invest in their financial future. This translates to a more secure and engaged workforce, ready to contribute their talent for years to come.
Millennials: Tech-Powered Wellness and Connection
Millennials thrive in a digital world. They appreciate work tools and online platforms that streamline tasks and foster connections with colleagues. Wellness programs that integrate technology, like fitness trackers and online challenges, keep them motivated and build a sense of community.
But it’s not all digital – Millennials also value comprehensive health benefits, including a variety of insurance options. This reflects their focus on holistic well-being, encompassing physical, mental, and financial health.
Millennials are driven by purpose, growth, and financial security. By understanding these priorities, employers can tailor their benefits package and company culture to attract and retain top Millennial talent. Remember, a competitive salary isn’t enough. Focus on creating a work environment that fosters well-being, professional development, and a sense of belonging. It’s about investing in your employees’ future, not just the company’s.
