It’s not surprising that 2017 stands to be the year many will have an experience to share using a Telemedicine or a Virtual Doctor service. With current market trends, government regulations, and changing economic demands, it’s fast becoming a more popular alternative to traditional healthcare visits. And, as healthcare costs continue to rise and there are more strategic pricing options and digital models available to users, the appeal for consumers, self-funded employers, health systems and health plans to jump on board is significant.
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Many employers have invested in benefits administration systems to streamline their processes and connectivity with payroll systems as well as external vendors. From an efficiency and reporting perspective, this works wonderfully. However, when it comes to leveraging that technology for open enrollment and benefits communication, there can be gaps that limit effectiveness.
Our recent survey found that while technology plays a big role (47 percent of surveyed employees used a platform to enroll in their benefits), only 15 percent used an online tool to learn about their options. The good news is that of those who sought information, 90 percent found that interactive digital experience to be helpful.
The question then is, how do we encourage employees to seek information about the benefits available to them?
In a previous blog post, we talked about the power of personalization. Employees want the ability to customize their benefits package to meet their needs. This can seem challenging if your enrollment experience is limited to a simple (or overly complex) menu of benefits, only accompanied by the ability to elect participate, or waive (some may include links to product information). From a data perspective, this can be a seamless HR experience—but is it a great experience for employees?
There are several ways to create a better employee experience and your UBA advisors and vendor partners can help.
When you are planning your next open enrollment, ask your benefits administration partner what, if any, benefits communication tools they may have. Some platforms have started to incorporate dynamic video and animated presentations that help personalize the enrollment experience. Highlight these tools to your employees as part of the pre-enrollment communication package.
Insurance providers and other vendors are also great resources. Insurers may have product calculators to help employees determine coverage amounts that make sense for them. They may also have videos as well as single sign-on links that provide employees additional information. The same types of tools may be available from other vendors, such as health savings account (HSA) administrators.
Consider one-to-one employee meetings with a benefits counselor. Eighty-six percent of surveyed employees said they want a clearer explanation of benefits choices, and 80 percent want one-on-one time. Remember, your employees learn differently, and many could benefit from having a personal conversation about their needs. In many cases, it is possible to work with a carrier, or vendor, that can actually conduct the meetings and enroll employees on the benefits administration platform. The one-on-one meetings help employees learn about options specific to their circumstances, and the on-site representative can help guide them on how to use the system. This can also be an opportunity to update employee information such as dependents, beneficiaries, and contact information. Successfully blending personalized benefits communication strategies with benefits administration technology can help increase employee engagement and streamline your processes.
By Kevin D. Seeker
Originally Posted By www.ubabenefits.com
The Section 125 cafeteria plan regulations and the Patient Protection and Affordable Care Act (ACA) require employers to take certain actions when an employee reduces hours.
Consider this scenario: An employer has an employee who is reducing hours below 30 hours per week. The employee is performing the same job and duties. The employee was determined to be full-time during the most recent measurement period. The employee is currently in a stability period.
What happens when the employee reduces hours during a stability period?
Answer: The employee must be offered coverage through the entire stability period. The employee must remain classified as full-time for the rest of the stability period. An employee’s full-time status determined in the measurement period determines the employee’s status during the subsequent stability period. This is true regardless of why the individual’s hours were reduced, or who chose to reduce the hours.
By Danielle Capilla
Originally Posted By www.ubabenefits.com
IRS Releases 2018 Amounts for HSAs
The IRS released Revenue Procedure 2017-37 that sets the dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2018.
For calendar year 2018, the annual contribution limit for an individual with self-only coverage under an HDHP is $3,450, and the annual contribution limit for an individual with family coverage under an HDHP is $6,900. How much should an employer contribute to an HSA? Read our latest news release for information on modest contribution strategies that are still driving enrollment in HSA and HRA plans.
For calendar year 2018, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage. Retroactive Medicare Coverage Effect on HSA Contributions
The Internal Revenue Service (IRS) recently released a letter regarding retroactive Medicare coverage and health savings account (HSA) contributions.
As background, Medicare Part A coverage begins the month an individual turns age 65, provided the individual files an application for Medicare Part A (or for Social Security or Railroad Retirement Board benefits) within six months of the month in which the individual turns age 65. If the individual files an application more than six months after turning age 65, Medicare Part A coverage will be retroactive for six months.
Individuals who delayed applying for Medicare and were later covered by Medicare retroactively to the month they turned 65 (or six months, if later) cannot make contributions to the HSA for the period of retroactive coverage. There are no exceptions to this rule.
However, if they contributed to an HSA during the months that were retroactively covered by Medicare and, as a result, had contributions in excess of the annual limitation, they may withdraw the excess contributions (and any net income attributable to the excess contribution) from the HSA.
They can make the withdrawal without penalty if they do so by the due date for the return (with extensions). Further, an individual generally may withdraw amounts from an HSA after reaching Medicare eligibility age without penalty. (However, the individual must include both types of withdrawals in income for federal tax purposes to the extent the amounts were previously excluded from taxable income.)
If an excess contribution is not withdrawn by the due date of the federal tax return for the taxable year, it is subject to an excise tax under the Internal Revenue Code. This tax is intended to recapture the benefits of any tax-free earning on the excess contribution.
By Danielle Capilla
Originally Posted By www.ubabenefits.com
Certain small employers have the option to reimburse individual health coverage premiums up to a dollar limit through Qualified Small Employer Health Reimbursement Arrangements (QSE HRAs) under the 21st Century Cures Act (Cures Act).
The Cures Act amends the Employee Retirement Income Security Act of 1974 (ERISA) to exclude QSE HRAs from the ERISA definition of group health plan; however, the Cures Act does not specifically exclude QSE HRAs from the rest of ERISA.
Small employers that plan to offer QSE HRAs should be cautious before presuming that ERISA would not apply to a reimbursement arrangement. Because QSE HRAs are new, the issue of whether the remainder of ERISA applies to QSE HRAs remains undetermined by an administrative agency or court. In consideration of the limited ERISA group health definition exclusion and the law’s legislative history, a risk-averse small employer should treat a QSE HRA as an employee welfare benefit plan covered under ERISA and comply with applicable ERISA requirements such as having a written plan document and summary plan description as well as following ERISA’s fiduciary and other rules. Request UBA’s Compliance Advisor, “Qualified Small Employer Health Reimbursement Arrangements and ERISA” for a discussion of ERISA’s definitions of “group health plan,” as well as the law’s legislative history governing exclusions. A small employer who intends to offer a QSE HRA without complying with ERISA’s employee welfare benefit plan requirements should consult with its attorney before proceeding.
By Danielle Capilla
Originally Posted By www.ubabenefits.com
