In a time of much uncertainty surrounding the healthcare reform, according to a
June 14th PricewaterhouseCoopers, 'Behind the Numbers Report', employer costs are estimated to increase around 9%. The good news is this is a drop of 0.5% from 2010 growth rate. What are the primary contributors?
On the encouraging side, there are three areas expected to deflat or hold medical costs:
- Pre-managed care design that increases deductibles and replacing co-pays with co-insurnance.
- Drugs costs cooled by expansion of generic drug portfolio. High volume drugs such as Lipitor patents expire in 2011.
- COBRA costs expected to level off. (side note: Congress has introduced an extension of the subsidy, legislation (S. 3548), that would reinstate through 11/30/2010).
The primary drivers for the inflating costs will be:
- Hospitals and Physicians move costs from Medicare to private payers/employers. This will be the top reason for higher costs.
- Care-provider consolidation. Private practices will decrease while groups emerge.
- 2011 Stimulus funds will launch electronic hospital records implementations to avoid 2015 Medicare penalties. This will be a billion dollar invest in to technology.
Although the primary drivers are out of employers control, your ability to maximize on the deflators is not. If you are a small to medium size employer contact Management 2000, a PEO Indianapolis. Let our team of Employee Benefit Advisors and Human Resource Consultants put in place a benefits plan administration that will ensure your success and control costs.
PricewaterhouseCoopers' report is available at www.pwc.com/us/medicalcosts2011.
On June 14,2010, The IRS, U.S. Department of Labor and HHS released guidance on what Grandfathered Plans.
Grandfathered plans are fully-insured or self-funded health plans that existed on March 23,2010. Many within the Benefits Community were waiting for guidance to how what changes, if any, could be made without compromising their status. The interim final regulations are clear that any change to the following areas put your plan at risk:
- Significant reduction in benefits
- Increase in coinsurance
- Increase in copay
- Increase to deductibles and out-of-pocket limits
- Employer decrease in contribution
- Modification of overall annual limit
- Modifications in fully-insure policy
Management 2000 offers Human Resources Outsourcing Service that includes Employee Benefit Management. Let one of our Employee Benefit Advisor's help you plan for the future. We are a small business PEO with offices in Indianapolis, IN. Contact us today, so we can help guide you and yours business to success and wellness.
Section 1251 of the Patient Protection and Affordable Care Act (PPACA), preserves the ability of consumers to maintain existing coverage by “grandfathering” existing group health or individual plans where individuals were enrolled as of March 23, 2010. In addition, it allows:
- Addition of family members
- Addition of new employees
- Collective bargaining agreements Maintained until last of agreements terminates.
When the insurance reforms become applicable to other plans, grandfathered individual and group plans must also meet the following requirements:
- Issue a standard plan summary with standardized definitions
- Distribute summaries of material modifications 60 days in advance of any material change
- Waiting periods rules
- Restrictions on lifetime
- Annual limits
- Rules on rescission's
- Preexisting conditions
- Coverage for dependent children up to age 26 (2014 when the adult child is not eligible for an employer sponsored plan)
There are many regulatory matters that still need to be locked down based upon the current statutory language of PPACA. One unanswered area is can states make laws governing grandfathered plans without compromising its status.
Management 2000 is a small business PEO with Human Resources Outsourcing service Indianapolis, IN. Put our Employee Medical Benefits Specialist to work for you.
The Departments of Health and Human Services, Labor and Treasury issued the Interim Final Rules for Group Health Plans and Health Insurance Issuers relating to Dependent Coverage of Children to Age 26. This is what you need to know today.
Under the Patient Protection and Affordable Care Act, group health plans that offer dependent coverage for children are required to do so up to the age of 26. Coverage extension applies to plans that begin on or after September 23, 2010. For calendar year plans, the extension must be in place by January 1, 2011.
Along with the change in age, the new law only allows two eligibility requirements:
- Relationship between the participant and child. The definition of ‘child’ is not defined by the regulations. Therefore, plans will continue to define which children will be covered.
- Age of child – mandates coverage until the child attains age 26.
Steps of Action:- Review current plan to determine compliance.
- Communicate with vested parties regarding changes and dates.
- Assess whether plan contribution needs to change (refer to regulations).
- One-time Special Enrollment Notification – 30 day window.
- Amend plan documents.
- Communicate plan changes to participants.
Compliance requirements and guidance from the various government agencies, along with updates from insurance carriers is continuous. Why not consider utilizing the Employee Benefits Management experts of a Small Business PEO to assist. Management 2000 offers PEO Services. Put our Benefits Plan Administration Team to work for you, so you can run a business.
For employers, employee retention and increasing productivity have always been paramount to running a successful business. It became clear as early as 2004, that employee’s work satisfaction is tied in a large part to benefits. More directly, it is benefits linked to their health, work-life balance and financial security.
In 2008, an annual Study of Employee Benefit Trends by MetLife revealed that benefits played a bigger role in employee loyalty than employers realized. In the most recent study (2009), the key message from the study is how to ‘align benefits in a challenging economy.” From the employer standpoint it is cost and employee productivity. For the employee, it’s about financial security and health benefits.
The Study of Employee Benefit Trends: Finds from the National Survey of Employers and Employees, illuminates a surprising link between “benefit programs and employee productivity.” 48% of employers that offered wellness programs reported an increase in employee productivity. Is your Employee Benefits Plan taking you in the right direction?
Management 2000 is a small business PEO that can build an Employee Benefits Plan that slows benefits costs while increasing employee productivity. Contact us today. Whether you are interested in the services of an Employee Benefits Advisor or as comprehensive as Employee Benefits Administration, we are ready to assist you!
With the rising costs of health-care, small business owners are looking at ways to slash premiums and partake in federal incentives. Have you considered implementing a Wellness program as part of your Employee Benefits Plan?
The Health care reform further embraces and rewards employers that offer Wellness programs to their employees. According to the Cleveland Clinic Foundation there are four key components to successful programs:
Tobacco free- Food choices
- Workplace stress
- Physical activity
Management 2000 is an Indianapolis based Small Business PEO, that can provide Benefits Plan Administration or Employee Benefit Advisory services to your small business.
Contact our Employee Benefits Management Team today, to learn more about starting a wellness program in your workplace.
One way that small business employers compete for talent is to offer comprehensive group health plans with flex benefits. The challenge with these type of employee benefits plans is the cost and complexity of administration. Key components for success are:
- Benefits Plan design
- Employee Benefits Administration
- Payroll Coordination
- Communication
An Indiana HR Company, brings all needed areas of expertise to your business in a cost-effective manner. Already equipped with a human resources benefits system and established practices in the areas of communication across business channels, payroll services and employee benefit administration.
Management 2000 is an Indiana Employee Benefits Company with offices in Indiana an
d Ohio go to
www.management2000.com to learn how we can assist.
On April 15, 2010,
H.R. 4581 - Continuing Extension Act of 2010 was passed into law extending the 65% health insurance subsidy for involuntarily terminated employees through May 31st. In addition, those who lost their jobs between March 31st and April 15th (voluntarily or not) are to be notified of the revised program.
With the increase in regulatory provisions, now is a good time to consider outsourcing management of your Employee Benefits Administration. As I have shared in my previous blogs, the regulatory and compliance demands put on small business owners is becoming more time consuming and troublesome.
Let Management 2000 a Top PEO take care of your Group Benefit Plan Administration. We are waiting to serve you and your employees. Improve your ROI by leaving the administration to us, because you have a business to run!
www.management2000.com
As COBRA Administrator's for our employer groups, we keep a watch on the every changing legislation that impacts their Employee Benefit Plans to ensure compliance.
H.R. 4851 - Continuing Extension Act of 2010, was put before the Senate on April 13, 2010. This bill will extend benefits which include COBRA Premium Subsidies for laid off employees from April 1 to April 30, 2010. The Senate is expected to vote today on an amendment that will extend subsidy to May 31. If the amendment is passed by the Senate, it will be sent back to the House. If approved by the House, any COBRA beneficiaries that were laid-off as of April 1, 2010, will need to be extended the subsidy.
On the horizon is
H.R.4213 American Workers, States and Business Relief Act of 2010. This Bill will extend health premium subsidies through December 31, 2010.
Management 2000 is a small business PEO. Let our Employee Benefit Administrators manage this aspect of your operations, so you can run a business.
On my last blog, I highlighted changes that took effect immediately and stretching through 2013. So, what happens in 2014 and beyond?
- State-based insurance exchanges open for business. The exchanges are available to individuals and small businesses with less than 100 full-time employees (seasonal workers are not excluded).
- Annual dollars limits on coverage can not be required as of January 1, 2014.
- Waiting periods are limited to 90 days.
- Preexisting exclusions are prohibited on plans.
- Plans must include 'comprehensive health coverage' that includes the general categories defined in the legislation.
- U.S. citizen and legal residents are required to have health coverage. Those do not enroll in a plan will have to pay a penalty.
- Employers with more than 50 employees that do not offer group coverage and has one employee that received a premium assistance tax credit will be assessed a fee per for every full-time employee. The first 30 employees are not counted.
- Large employers (more than 200 full-time employees) must automatically enroll full-time employees into a plan.
- In 2018, an excise tax will be applied to insurers of employer-sponsored health plans that have a total value that exceeds $10,200 for individual and $27,500 for family coverages.
There are a lot of provisions associated with the new health care reform legislation that will impact your employee benefits plan. Small business PEO's bring to an expertise at both a Employee Benefit Advisor and Employee Benefits Administration capacity. Managepoint is a PEO Indianapolis and Dayton PEO. Contact us today and put us to work for you!
Are you looking to the future of employee medical benefits in 2010 and beyond? The regulatory and compliance demands are only going to increase for your small business. That is why many small business owners are looking to PEOs and their Employee Benefit Advisors for direction. Just to mention a couple of highlights:
Tax years 2010 to 2013 :
- Small businesses tax credits for employers that purchase health insurance based on the number of employees and average annual wages.
- If you provide Medicare Part D subsidy to retirees, it will be eliminated in 2011. You will need to account for the future loss on liability and income statements.
- Group and individual plans required to cover dependents up to age 26.
- Group plans that are not grandfathered, will have to cover pre-existing conditions for children under the age of 19.
- Federal grant program for employers providing wellness programs to their employees.
- Employers must include health benefits on W2s during taxable years after 12/31/2010.
- Changes to Health Savings (HSA) and Flexible Spending (FSA) Accounts.
- Mandate to enroll employees in a new national public long-term care program, unless employee opts out.
For Tax years 2014 and beyond, stay tuned...
If you are like so many small business owners across America, in a time of great economic concern, the impact of
H.R. 3590 - Patriot Protection and Affordable Care Act weighs on your mind. Unless of course you've enlisted the services of a Professional Employer Organization.
Why not allow the experts in Employee Benefits Administration and HR Strategies to implement and manage the multiple regulatory phases and processes related to your business and employees. Benefits administration goes far beyond finding the right plan. Matter of fact, the most time consuming portion is the compliance of government regulations and mandates, along with, the maintenance and support of employee benefits insurance.
Management 2000, is a Indiana PEO Company equipped to bring aid to your business so that you can focus on the future.
According to a white paper published by TriNet in 2009, one of the "Top 5 HR Compliance Concerns for Small Business" is
Current Benefit Regulation and Law Not Being Followed. "Small businesses spend 80% more per employee on federal regulatory compliance than large companies." This is further supported by a "Heath Care Policy Cost Index: Ranking States According to Policies Affecting the Cost of Health Care" conducted by The Small Business & Entrepreneurship Council's (SBEC). Beyond premiums that are traditionally 18% higher, small business owners do not have the infrastructure to manage the multitude of federal and state regulatory requirements associated with Employee Benefits Administration. SBEC states that
"Additional negative factors in the health care equation are government mandates and regulations... But each mandate comes with added costs." Management 2000 is a Small Business PEO with offices located in Dayton, OH and Indiana with an Employee Benefits Management team waiting to assist your small business in remaining complaint with both federal and state requirements. You may not be able to control the many mandates currently facing your business but you can maximize available resources thereby minimizing the overall cost and impact.
In an ever-changing environment, why not bring stability to your business and employees by utilizing the expertise of a Professional Employee Organization.
On March 2, 2010, President Obama signed H.R. 4691 into law. Do you know how this impacts your business? You need to.
Small businesses across the United States are turning to Professional Employer Organization Services for Employee Benefits Management. One area of complexity is the management of COBRA Continuation Coverage. If your business offers a group health plan and has 20 or more employees, you are required by law to extend COBRA continuation. In addition, if an employee is involuntarily termed the American Recovery and Reinvestment Act of 2009 (ARRA) requires employers to pay 65% of the premium which is calmed as a tax rebate.
If you have less than 20 employees you may think these laws do not apply. Not so quick! Many states have enacted what is called "mini-COBRA". This may include a premium subsidy.
Do you know your responsibilities under COBRA at both the federal and state level? Let a PEO keep your business compliant by utilizing their Employee Benefits Administration, so you can focus on your growing business.
It's hard to open any form of media and not be swept up in the whirlwind surrounding "Health Care Reform". In atmosphere of uncertainty one thing is clear, health care reform is on the horizon. If you are a small business owner, you and your employees will be impacted.
People may differ on the correct approach to health care reform but few disagree that a change is needed, while assuring health care remains affordable and available without compromise of quality. As a small business owner you are all too familiar with the challenges in providing a comprehensive Employee Benefits Plan with the rising costs of health care.
Many small business owners are turning to Professional Employer Organizations ( PEOs ) for Benefit Plan Administration. PEOs have the knowledge and resources to alleviate the administrative concerns with the regulation and implementation of changes that will impact group benefits plans. The question is what steps are you taking to prepare for the winds of change?
Obviously you started your business to make money. As a business owner I'm sure you have found out that you spend a tremendous amount of time on administrative tasks that have nothing to do with the product or service you offer.
Give outsourcing a thought!!!!
At Management 2000, top PEO we are in the business of relieving you of these tasks. As an Indiana PEO we will provide you with:
-
Employee Benefits Management
-
Strategic Human Resources
-
Risk and Safety Management
-
Payroll Services
If you are devoting too much time and money towards these areas give us a call and we can develop a plan to give you time to run your business!
800-554-5945
http://www.management2000.com
It's that time of year when you are beginning to look into all of the alternatives for your Employee Benefits Plan for 2010. It gets so confusing with talk of health care reform, HSA's, HRA's, HDHP's and of course all of the traditional options. Put your mind at ease this year and consider the benefits of a Professional Employer Organization (PEO) such as Management 2000.
We will work with you to find the best fit for your company and it's employee's. Our work does not stop there, we will implement and provide all employee benefits administration. The big bonus is all of the time and headaches you will save with outsourcing this vital piece of your business.
Now you can concentrate on making those year end numbers!!
Save yourself time and headaches, give us a call at 800-554-5945 or check out our website at http://www.management2000.com
If your business has or is considering downsizing, outsourcing certain functions could be key to keeping your business up and running. A Professional Employer Organization (PEO) can relieve you many time consuming administrative tasks. Management 2000 is a leading PEO in the Indianapolis area and we have helped several companies streamline the following areas of their business.
- Employee Benefits Plan Management/Administration
- HR Management/Administration
- Payroll Services
- Risk/Safety Management
We'll take care of these funtions so you don't have to. Now you will have the time to concentrate on running your business. Give us a call or check out our website, we are ready to help!!!
800-554-5945
http://www.management2000.com
As a business owner it is increasingly more difficult and time consuming to manage the administrative end of your business. When you think of all the time you devote to human resource issues, employee benefits administration, workers' comp, risk/safey management and of course payroll administration, it's a wonder that you have any time left to run your business.
Consider a PEO Group! Check out the link below; it explains the basic benefits of outsourcing.
http://www.napeo.org/docs/Macomb_County_Bar_Briefs_8-09.pdf
To further explore customized solutions for your business contact Management 2000, an Indiana PEO company based in Indianapolis.
Let' face it business owners, there is an awful lot of confusing stuff swirling around when it comes to employee benefits plans. With all the talk of health care reform and trying to make sense of the new COBRA regulations, it's a wonder that you have any time left to run your business.
Management 2000, PEO group to the rescue!!!!
It's our job to keep on top of any legislation that has been or may be passed so we will be well versed when it comes to helping you make the best decisions for you and your employees.
Give us a call or check out our website. It's time to get back to running your business! PEO Outsourcing Indiana at
800-554-5945
http://www.management2000.com
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