by admin | Feb 17, 2025 | Custom Content, Employee Benefits
Most organizations treat employee benefits like a seasonal event. Open enrollment brings a flurry of activity – emails, seminars, and even benefits fairs. However, communication often dwindles after this initial push, leaving employees confused and underutilizing their valuable benefits.
This is a missed opportunity. Research shows that employees crave more benefits education, spending hours researching their options. By proactively engaging employees throughout the year, organizations can:
- Improve Employee Understanding: Ongoing communication helps employees retain information and make informed decisions, rather than relying solely on a single, overwhelming open enrollment period.
- Reduce Confusion & Mistakes: Employees often make costly mistakes, such as under-saving for healthcare expenses or failing to utilize valuable benefits like employee assistance programs. Consistent communication can help them avoid these pitfalls.
- Boost Benefits Utilization: Regular reminders encourage employees to actively use their benefits, such as gym memberships, financial counseling, or legal services, leading to improved well-being and reduced stress.
- Enhance Employee Engagement: When employees understand and utilize their benefits, they experience increased job satisfaction, reduced stress levels, and improved overall well-being, leading to higher productivity and retention rates.
- Gain Valuable Insights: Year-round communication allows HR teams to gather valuable data through employee surveys and feedback, enabling them to refine their communication strategies and better address employee needs.
Building a Successful Communication Plan
Two primary approaches can guide your communication strategy:
- Calendar-Based: This traditional approach focuses on pre-determined themes for each quarter or month, aligning with seasonal trends and employee needs. For example, Q1 might focus on retirement planning, Q2 on health and wellness, Q3 on family-related benefits, and Q4 is Open Enrollment season.
- Action-Based: This more modern approach triggers communication-based on employee actions, such as when they file a claim or contribute to their Health Savings Account (HSA). This ensures communication is most relevant when employees are actively engaged with their benefits.
Key Considerations:
- Go Beyond the Booklet: Get creative with your content! Repurpose your open benefits booklet and enrollment presentations into a variety of formats. Utilize diverse communication channels, such as emails, podcasts, newsletters, intranet resources, text messages, and interactive online tools to make information easily accessible.
- Focus on Employee Needs: Tailor your communication to address specific employee concerns and questions, such as how to reduce healthcare costs or plan for retirement.
- Measure and Refine: You can’t manage what you can’t measure. Be sure to track the effectiveness of your communication efforts through surveys, employee feedback, and utilization data. Use these insights to refine your strategy and improve employee engagement.
Benefits education is communicating information about available benefits in ways that employees can connect to and understand. Communicating benefits information year-round is important because employees’ lives – and their situations – are constantly changing. They get married, divorced, adopt a child or have medical challenges arise.
If employees are engaged with their benefits throughout the year, they are more likely to value and use their benefits and will be better informed about their decisions and/or changes they need to make during the next Open Enrollment period!
by admin | Jan 20, 2025 | Employee Benefits
Employee benefits are the indirect and non-cash compensation paid to an employee. These benefits are given to employees over their salaries and wages. As we look ahead to 2025, companies are increasingly exploring innovative solutions to address the evolving needs of their workforce. Driven by shifts in work environments, economic challenges, and technological progress, the following trends are becoming key elements of a competitive employee benefits package.
Mental Health Support
With nearly 60 million Americans currently facing some form of mental illness, prioritizing mental health has shifted from being a luxury to a critical necessity for fostering a high-performing, supportive workplace. Mental health services and policies that allow mental health days have become more common as the impact of mental well-being on overall health and productivity becomes increasingly recognized.
Employees are placing greater value on employers who prioritize mental health, seeing it as a sign of commitment to their well-being. This not only helps reduce stigma but also enhances employees’ ability to manage stress and prevent burnout in the workplace.
Financial Education and Debt Management
Financial stress is well-known for its negative impact on employee morale, productivity, and overall well-being. To address these challenges, employers are increasingly emphasizing financial wellness benefits for 2025.
Offering employees resources to manage debt and make informed financial decisions can greatly enhance their overall well-being while demonstrating a genuine commitment to their financial health and education. Financial wellness programs may include tools for budgeting, debt counseling, and education on key personal finance topics like homeownership and investing.
Retirement Savings
As retirement becomes a top priority for many employees, companies are placing greater emphasis on retirement savings options. In addition to the traditional 401(k) match, some employers are now offering student loan repayment matching, helping employees reduce debt while simultaneously saving for retirement. Health Savings Accounts (HSAs) are also gaining popularity as a valuable tool for retirement planning, offering tax benefits and the opportunity to save for future healthcare expenses.
Voluntary Benefits
Voluntary benefits provide a cost-effective way to offer additional value to employees. From pet insurance to identity theft protection, these benefits give employees the flexibility to select coverage that meets their individual needs, boosting overall satisfaction.
Childcare and Fertility Benefits
For employees who are starting or planning to start a family, the increasing costs of family-related services, such as childcare, adoption, or fertility treatments, can quickly become a significant financial strain. Childcare alone can account for up to 10% of a working couple’s income.
- 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 businesses 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.
In an era of rapid change and shifting employee expectations, businesses must prioritize employee well-being and satisfaction through comprehensive benefits packages to remain competitive in attracting and retaining talent. By investing in flexible, customizable, and employee-focused benefits, organizations can foster a thriving work environment that not only draws top talent but also keeps them engaged and loyal for years to come.
by admin | Jan 14, 2025 | Custom Content, Employee Benefits
New to a Health Savings Account (HSA)? Here’s What You Need to Know
As the name suggests, a Health Savings Account(HSA) is a special savings account used to pay for healthcare-related expenses. An HSA has potential financial benefits for now and later. Not only can you save pre-tax dollars in this account to pay for qualified medical expenses (QMEs), but HSAs can also provide valuable retirement benefits.
If you’re new to HSAs, here are some tips to help you get started:
- Understand the Basics:
- Triple Tax Advantage: HSAs offer a unique triple tax advantage: contributions are tax-deductible, earnings grow tax-deferred, and withdrawals for qualified medical expenses are tax-free.
- Eligibility: To be eligible for an HSA, you must be enrolled in a high-deductible health plan (HDHP). A HDHP is an insurance plan with higher deductibles and out-of-pocket costs. However, HDHPs carry lower premiums than traditional insurance plans, and in most cases, the cost savings in premiums alone are significant.
- Contribution Limits: There are annual contribution limits set by the IRS. The HSA contribution limits for 2025 are $4,300 for self-only coverage and $8,550 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.
2. Maximize Your Contributions:
- Contribute Regularly: Set up automatic contributions to your HSA to make saving consistent and effortless.
- Consider a Catch-Up Contribution: If you’re 55 or older, you can contribute an additional $1,000 as a catch-up contribution.
3. Use Your HSA Strategically:
- Pay for Qualified Medical Expenses: Use your HSA funds to pay for eligible medical expenses, such as doctor visits, prescriptions, and dental care.
- Invest for the Future: Consider investing your HSA funds for long-term growth. This can be a great way to save for other future healthcare needs or even retirement. Once you reach age 65, you can withdraw money from your HSA for any reason without penalty – only ordinary income tax due.
- Unused HSA Funds: HSA funds can be rolled over to the next year. However, if you withdraw funds for non-medical expenses, you’ll pay income tax plus a 20% penalty.
Money that goes in and out of an HSA is tax free as long as payments and reimbursements from the account are used only for Qualified Medical Expenses (QMEs). QMEs are healthcare-related items or services designated by the IRS that you can write off when you do your taxes. There are thousands of medical procedures, services and types of equipment that are considered QMEs, and the IRS frequently updates the list.
It is important to know that your HSA account is yours – not your employers. Unlike healthcare Flexible Spending Accounts (FSAs), which your employer technically owns, your HSA belongs to you. So, when you leave a job, you keep all of the money you’ve saved up in your HSA and can transfer into a new HSA or employer-sponsored HSA at your next job.
The Bottom Line
HSAs are often referred to as triple tax-advantaged and are one of the best savings and investment tools available under the U.S. tax code. As a person ages, medical expenses tend to increase, particularly when reaching retirement age and beyond. Therefore, starting an HSA early and allowing it to accumulate over a long period can contribute greatly to securing your financial future. By understanding the basics of HSAs and following these tips, you can make the most of this valuable financial tool.
by admin | Jan 9, 2025 | Employee Benefits, Health Care Costs
Healthcare costs are projected to rise significantly in 2025. To mitigate these increases, consider these tips:
- Know Your Plan: Take time to review what your health plan covers—and what it doesn’t—to avoid unexpected costs. Understand your health plan’s coverage, including deductibles, co-pays, and out-of-pocket maximums.
- Utilize In-Network Providers: Receiving care from out-of-network providers can dramatically increase costs. Check your plan details to confirm that your provider is in-network before scheduling any appointments.
- Budget Wisely: Plan for potential healthcare expenses throughout the year.
- Ask Questions: Don’t hesitate to ask your doctor questions during visits. If you need care, inquire about alternative treatments or services that are both effective and more affordable.
- Get Annual Check-Ups and Screenings: The best way to ward off many illnesses is to not them sneak up on you.
- Take Care of Your Health: A simple way to save money on healthcare is to stay healthy. By staying at a healthy weight, exercising regularly, and not smoking lowers your risk for health problems.
- Consider using a Health Savings Account (HSA) or a Flexible Spending Account (FSA): Many employers offer an HSA or FSA. These are savings accounts that allow you to set aside pre-tax dollars for healthcare expenses. This can help save you several hundred dollars per year.
- Telehealth: Utilize telehealth services when appropriate to reduce urgent care or doctor’s visits costs.
Staying informed about your health care benefits—including the fine print—can help you save money. By taking these steps, you can help to manage your healthcare costs and protect your financial well-being.
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!
