Benefits Insurance Newsletter

Spring 2012

noreply@blogger.com (Leavitt Group) — Wed, 29 Feb 2012 23:40:00 +0000

As benefit costs are shifted to employees, voluntary benefits can be a source of additional coverage for employees. The following is a summary of key trends in 2012 in the voluntary benefits industry:

Increase in voluntary benefits sales. As employees are bearing more of the burden of health care costs voluntary benefit sales are increasing. In addition, there has been an increase in the use of third-party benefit providers handling enrollment and administration.
Increase in electronic communication of benefits. How well you communicate voluntary benefit offerings to your employees will determine how they participate in the plan. Electronic communications allow more efficient and timely delivery of information to employees and also provides flexibility for addressing needs of a multicultural and multilingual workforce.
Increasing popularity in specialty products. Products that have traditionally not garnered much attention are now becoming more popular. These include products such as critical illness, accident insurance, and hospital indemnity insurance. Bundling these products and including them in a voluntary benefits package helps supplement some of the changes in traditional plans.

To learn more about voluntary benefits and third-party benefits enrollment and administration, please contact your Leavitt Group consultant.

Many employers may be reluctant to ask for feedback from their employees because they don’t want to receive negative comments or suggestions that are unreasonable or difficult to implement. By using focus groups with employees, however, employers can uncover potential problems, get exposure to another point of view that might not have been otherwise considered, and discover ways to improve their benefits plan and employee communications.

Here are a few ideas for conducting a successful focus group. These ideas can be utilized for a variety of situations, including assessing employees’ preparedness for change, implementing a new benefits plan, or making simple changes to an existing plan.

Choose an appropriate number of employees to participate in the focus group. Generally 15 to 20 people in the group is enough to generate effective feedback while involving all participants.
Select participants wisely. Consider what the goal is of your focus group and choose participants who will yield helpful information based on their demographics, business unit, geographic location, ethnicity, or employee level. For example, if you are trying to improve your wellness program and you have noticed employees within a certain demographic are not participating in the program, build your focus group with employees that fit that demographic to learn more about their point of view.
Ensure confidentiality. Consider asking a third-party facilitator to conduct the focus group. This will help ensure confidentiality and anonymity and help employees be more candid and feel confident that there will not be retribution for what they share in the group.
Establish ground rules at the beginning. Make sure participants understand the objectives of the focus group. If they know right from the beginning what you are trying to accomplish, this will help alleviate the tendency for participants to get sidetracked on irrelevant issues.
Choose an effective and experienced facilitator. Without the help of a skillful facilitator, it might be easy for one or two focus group participants to take over and have his/her views mistaken as the opinion of the entire group. Make sure your facilitator is able to manage the group well enough that all participants are able to clearly communicate their own perspectives to the group.
Capture initial opinions with mini-surveys. Consider asking all participants to complete a brief survey before the focus group begins. This will allow you to find out what the participants really think before they have been exposed to the opinions of others in the group.
Follow up afterwards and let the rest of your organization know you have conducted a focus group. Communicate to the group your intentions of what will happen next and follow through. Failure to follow through will lessen people’s interest in participating in future focus groups because they won’t feel they have made a difference by sharing their opinions. Let your entire organization know you have conducted a focus group and share a summary of the results and what you intend to do going forward.

Reference: ebn.benefitnews.com

Winter 2011

noreply@blogger.com (Leavitt Group) — Wed, 30 Nov 2011 23:00:00 +0000

Seasonal affective disorder (SAD) is a recurring depression that affects individuals during the colder winter months and then recedes during spring and summer. Symptoms include difficulty concentrating, low energy and fatigue, a decreased interest in daily activities, moodiness, irritability, and need for increased sleep.

The exact cause of SAD is unknown, but it is suspected that an increased level of melatonin in the blood could be a contributing factor among other things. Melatonin enhances the need and desire for sleep, and melatonin levels often increase during the winter months.

Here are a few things you can do in the workplace to help your employees combat SAD during the winter months:

Arrange your office to maximize the light exposure for your employees. Increase the amount of light in your office by keeping blinds and window treatments open when possible.
Encourage your employees to spend some time outside during daylight hours. A short walk during lunch or break time is a great way to increase opportunities for light exposure and can help increase productivity and boost morale.
Continue to encourage your employees to participate in regular exercise routines through company-sponsored wellness programs and events. Regular physical activity helps fight fatigue and depression as well as relieve stress and anxiety.
Stay in tune with your employees’ personalities and watch for unusual changes or symptoms such as irritability, sleepiness, or interpersonal conflict.

As the days get crisper and shorter, you may notice your employees are slacking off on their workout programs. Excuses to not exercise, such as helping kids with their homework or preparing for the holidays, are easy to come by. Here are six tips to help your employees (and your bottom line) stay healthy all year long.

1. Encourage employees to adopt the buddy system: People are more likely to stick to a workout routine when they have someone right there with them fighting the same fight. Buddies provide one another with the encouragement they will need to successfully keep shedding the pounds.

2. Plan wellness events: Employees are more likely to exercise if they have something to work towards such as a group event. Start the winter season out right with a 5K run or walk around Thanksgiving (sometimes called a “turkey trot”). Encourage employees and their family members to attend by offering prizes for winning and participating.

3. Give exercise-oriented holiday gifts: Give your employees a gift that will help them stay fit. If your company employs a high number of people, consider offering a corporate membership at a local gym.

4. Suggest your employees set up a mini-gym at home: Encourage your employees to purchase a stretch band, exercise ball, and a set of dumbbells for their homes. Also, let your employees know about the variety of exercise videos and CDs that can be checked out from the local library.

5. Stock the break room with healthful foods: Implementing a wellness program while keeping the same old candy bar and potato chip vending machine options for your employees sends a mixed message. Try stocking it with low-calorie snacks instead.

6. Always be a team player: Sure, as their boss you are trying to lead your employees toward a healthier lifestyle that will help improve your company’s bottom line. When your employees see that you are right there in the trenches with them, trying to stay healthy, they will feel more like the company as a whole is one big team.

If you pay health insurance for your employees, keeping your employees healthy is your business. We recommend implementing a company-wide fitness program if you don’t already have one—and figuring out creative ways to make employee wellness an all-year-round adventure.

The coverages discussed herein are for illustrative purposes only. The terms and conditions of your specific policy may differ from those described. Please consult the provisions of your policy for the terms, conditions, and exclusions that apply to your coverage.

Fall 2011

noreply@blogger.com (Leavitt Group) — Wed, 31 Aug 2011 20:00:00 +0000

Health Savings Accounts (HSA) are designed to reduce insurance costs for both employers and employees. If you are considering offering an HSA as part of your employee benefits plan, here are some additional benefits you will realize.

Lower insurance costs. Switching to an HSA-qualified high-deductible health plan should reduce your insurance premiums. In addition, rather than paying 100 percent of insurance dollars towards premiums, an HSA allows you to distribute some of these funds directly to your employees by making contributions to their accounts.

Offer a more diverse benefits package. Including HSAs in your benefits plan can enhance your benefits package and aid in attracting and retaining key employees.

Reduce taxes. Contributions you make to your employees’ HSAs are made with pre-tax dollars.*

Minimize administrative costs. Employees own and administer their own HSAs, so there are minimal administrative and compliance issues for employers.

Share the cost of health care benefits with your employees. An HSA gives your employees the ability to build a savings account with tax benefits and motivates them to take a vested interest in their health care choices and expenditures — a win-win for all parties.

*States that do not provide state tax exemptions for HSA deductions are Alabama, California, New Jersey, and Pennsylvania.

An increasing number of employers are incorporating health savings accounts (HSA) into their group benefits plan. The following is information you can share with your employees to help them understand the benefits and requirements of HSAs.

An HSA is an account set aside specifically for paying qualified medical expenses. The account is typically set up as a tax-exempt trust or custodial account. HSAs are offered by some employers to give their employees more control over funds allocated for health care services.

Both employees and employers can contribute to an HSA. The 2011 maximum annual contribution is $3,050 for individual coverage and $6,150 for family coverage. These limits will increase in 2012 to $3,100 for individuals and $6,250 for families. You can expect to see future changes in contribution limits as they are indexed to inflation.

Individuals who have an HSA and are at least age 55 by December 31st may make a one-time annual “catch-up” contribution of $1,000 to their HSA (as long as they are not enrolled in Medicare). Because accounts are owned by an individual and are technically not family accounts, when both a husband and wife are eligible to make catch-up contributions they must own separate accounts to do so.

For more information regarding health savings accounts, contact your Leavitt Group insurance advisor.

SOME OF THE BENEFITS* OF AN HSA ARE AS FOLLOWS:

You can claim a tax deduction for HSA contributions made by you or someone other than your employer.
Contributions made by the employer are excluded from taxable income.
Unused contributions in your account roll over from year to year.
Earnings on contributions are also not subject to income taxes.
Distributions for qualified medical expenses are tax free.
Certain preventative services can be covered in full and not subject to a deductible.
If you change employers or leave the workforce, you still own your HSA.

YOU ARE ELIGIBLE FOR AN HSA IF:

You are covered under a high deductible health plan (HDHP).
You have no other health coverage except what is permitted by exception. These exceptions include supplemental coverage without a high deductible for such things as specific injury insurance or accident, disability, dental, vision or long-term care insurance.
You are not enrolled in Medicare.
You cannot be claimed as a dependent on another person’s tax return.

*States that do not provide state tax exemptions for HSA deductions are Alabama, California, New Jersey, and Pennsylvania.
Sources: IRS.gov and EBRI.org

Summer 2011

noreply@blogger.com (Leavitt Group) — Tue, 31 May 2011 19:51:00 +0000

As part of a benefits package offered to employees, many employers provide retirement options. Two employee retirement plan options you can provide include a defined benefit plan and a defined contribution plan.

» Defined Benefit Plan

The defined benefit plan provides a pre-defined monthly benefit amount at retirement. This type of plan is a pension that is based on the highest average salary attained by the employee as well as the number of pensionable employment years they completed. The plan is funded by both employer and employee contributions, and the funds are invested for future earnings.

» Defined Contribution Plan

The defined contribution plan does not promise a specific benefit amount at retirement. The end value of the plan will depend on the amount contributed prior to retirement and how well the investments perform. Employees are responsible for their own account and determine how much to contribute and how the contributions are invested. Employers typically contribute to these accounts by matching a certain percentage of the employee’s contribution. Examples of defined benefit plans include the traditional 401(k) plan, SIMPLE IRA plan, profit sharing plans, and employee stock ownership plans (ESOP).

One of the lasting benefits you can provide your employees is encouraging them to plan now financially for their retirement. By investing the time now to plan their future finances, they will be able to achieve a secure, comfortable retirement. The following are a few recommendations both you and your employees can follow in preparing for retirement:

Determine your retirement needs. Estimates suggest you will need about 70 to 90 percent of your preretirement income to maintain your standard of living when you stop working. Being aware of the amount of money you will need will help you stay on track for a secure retirement.

Understand basic investment principles. A variety of factors will influence how much you will have saved at retirement, including inflation, type of investments, and how long your money has had time to grow. Pay attention to your investments and meet with a financial advisor on a regular basis to ensure you are staying on track to meet your financial goals. Diversify your investments to reduce risk and improve return. Knowledge equals financial security.

Contribute to your employer’s retirement savings plan. If your employer offers a retirement savings plan, start contributing. Set a goal to contribute at least enough to qualify for the full employer contribution.

Set realistic goals and stay committed. Set a realistic savings and investment strategy to meet your financial retirement goal. Start small if you have to and increase the amount over time. The sooner you start saving, the more time your money will have to grow.

Don’t touch your retirement savings. If you withdraw your retirement savings prematurely, you will lose principal and interest and possibly tax benefits. You may also have to pay withdrawal penalties. If you change jobs, don’t withdraw the savings; instead, roll them over to an IRA or your new employer’s plan.

Invest in an Individual Retirement Account (IRA). There are two IRA options - traditional IRA or Roth IRA. The tax treatment of your contributions and the after-tax value of your withdrawal will depend on the type of IRA you choose. Annual contributions can be up to $5,000 and there are certain tax advantages in contributing to an IRA as well.

Learn about your Social Security benefits. Review your annual Social Security statement so you are familiar with how much your estimated benefit will be and when you can expect to receive it. On average, Social Security currently pays benefits that are equal to about 40 percent of what you earned before retirement. For more information, visit www.socialsecurity.gov.

Ask questions. While these tips provide suggestions for preparing for retirement, you need more in-depth information to determine your retirement needs and make sound investment decisions. Consult with a financial adviser for more detailed information and guidance.

Source: www.dol.gov

Spring 2011

noreply@blogger.com (Leavitt Group) — Tue, 01 Mar 2011 00:02:00 +0000

With increasing health care costs and major changes to the health care system, many employers are implementing wellness programs and health incentives for their employees. With a little creativity and participation from your workforce, you can create a wellness program that meets the needs of your employees and helps them maintain a healthy lifestyle.

Here are a few ideas to help you start or improve your own company wellness program:

Wellness Program Ideas & Initiatives:

Sponsor fitness and weight loss competitions.
Sponsor a walking program.
Sponsor company sports events, such as softball tournaments or 5K races.
Substitute snacks around the office with fresh fruits and vegetables.

Incentives for Participation in Wellness Programs:

Provide a monthly cash incentive for meeting fitness goals.
Offer discounted health club memberships.
Give gift cards for health-related products and services.

Wellness programs are a proactive approach to reducing health risks among your employees, ultimately reducing health care costs. An investment in a wellness program is an investment in your greatest asset - your employees.

Wellness programs offer attractive benefits to employees, but they also add value to the employer as well. Some of the reasons employees are motivated to participate in wellness programs include:

Desire to achieve better overall health.
Reduce personal health care costs.
Increase longevity of life.

The benefits an employer can expect to see while maintaining a wellness program for employees include:

Improved energy and productivity among employees.
Employees will be motivated to work harder and perform better.
Decrease in absenteeism due to illness.
Improved employee moral.
Decrease in health care costs as employees reduce unhealthy behaviors and maintain a healthy lifestyle.
Gain control of illnesses, conditions, and unhealthy behaviors before they become more serious.
Recruit and retain top talent - wellness programs can help employees feel more appreciated and also increase loyalty to the company.

* “American Workers Say Wellness Works to Improve Health, Save Costs.” Business Wire. February 16, 2011.

Winter 2010

noreply@blogger.com (Leavitt Group) — Tue, 30 Nov 2010 21:13:00 +0000

A grandfathered health plan is an insured or self-funded health plan that was in existence on or before March 23, 2010 and that has not made changes since that date that cause it to lose its grandfathered status.

Changes that will cause a plan to lose its grandfathered status include:

Elimination of all or substantially all benefits to diagnose or treat a particular condition.

Any increase in the employee percentage of co-insurance charges.

Increase in a deductible or out-of-pocket maximum by an amount that exceeds medical inflation plus 15 percentage points.

Increase in an employee co-payment by an amount that exceeds medical inflation plus 15 percentage points (or, if greater, $5 plus medical inflation).

Decrease in the employer contribution rate toward the cost of coverage by more than 5 percentage points below the employer contribution rate on March 23, 2010.

Imposition of new annual limits if the plan did not include them on March 23, 2010, or a decrease in existing annual limits below the lifetime limit.

Changing employees to a less generous plan; corporate mergers/sales to avoid compliance.

Benefits enrollment can demand significant time and energy from you and your employees. Consider your communications and how you can help employees make the best enrollment decisions. Making favorable changes to a benefits package is also critical to a company’s ability to get an enthusiastic response from employees.

Whether you are about to start your open enrollment period, or simply preparing for future open enrollments, here are some ideas that can help you achieve the results you want:

Determine what benefits your employees want by conducting employee surveys and focus groups.

Chances are you can’t satisfy every request, but you’ll build goodwill through this communication process, and you will be better able to craft a benefits package that is on target with your workforce’s needs. Do this well in advance of open enrollment.

Consider adding benefits you have not offered before.
This doesn’t have to be a costly proposition. You can bring in supplemental benefits on an employee-pay-all basis, or add pre-tax flexible spending accounts for health care and/or dependent day care. Employees appreciate when employers make these types of benefits available to them, even if the employer isn’t contributing to the cost.

Review your benefits costs.

Meeting with your benefits advisor to discuss any changes in your company will help determine if costs can be cut. If your company has experienced a significant change in the number of employees, you may qualify for better pricing on some of your benefits options.

If you are currently in an open enrollment period, reviewing your company’s process and communications can also help your open enrollment run more smoothly in future years.

Fall 2010

noreply@blogger.com (Leavitt Group) — Wed, 01 Sep 2010 00:29:00 +0000

1. Wellness Program: With the rising costs of health care, both employers and employees can take responsibility for their own health by participating in a wellness plan.

2. Company Discounts: Although often overlooked, employee discount programs can be a very popular benefit to staff. This gives employees the chance to buy brand-name products or services at a discount.

3. Education Plan: Today’s work force requires lifelong learning to keep pace with the changing demands of employment. You can consider varying levels of support, from paying the full tuition costs of an MBA program to a partial reimbursement or contribution to the cost of a community college course.

4. Commuter or Parking Benefits: Depending on employee commuting needs, you can consider covering the cost of a monthly city transit pass or paying an amount of pre-tax payroll dollars for vehicle parking.

Cafeteria plans create a great opportunity for employers to enhance the benefits package they offer their employees. In addition, they offer tax saving advantages for both the employer and employee. Employees' pretax contributions are not subject to federal, state, or social security taxes. Employers save on the employer portion of FICA, FUTA, SUTA, and workers' compensation insurance premiums. Both parties save on taxes and therefore increase their spendable income. (The rules that define “taxable wages” may vary by state.)

Cafeteria plans include Health Savings Account (HSA), Premium Only Plans, and Flexible Spending Arrangements. Below are brief explanations of cafeteria plan options.

Health Savings Account (HSA)

Health Savings Accounts are available for individuals on certain high deductible health plans. These accounts are funded by the employee or by the employer. Similar to the FSA, Health Savings Account funds can be used to pay for certain medical expenses for eligible individuals and their spouses and/or tax dependents.

Premium Only Plan

The Premium Only Plan is an option that was created in an effort to make benefit programs more affordable for employees. Under a Premium Only Plan, an employee may choose to pay for qualified benefit premiums with pre-tax dollars. The qualified premiums (if offered by the employer) include:

Health
Accident
Dental
Vision
Prescription
Cancer
Hospital indemnity
Medicare supplement
Disability (although not recommended)
Employee group term life (up to $50,000)

Flexible Spending Arrangements (FSA)

A Flexible Spending Arrangement (FSA), commonly known as a flexible spending account, allows an employee to set aside a portion of his or her earnings to pay for qualified expenses. Qualified expenses can include medical and dependent care costs. Two common types of FSAs include the Medical FSA and the Dependent Care FSA:

Medical FSA: used to pay for medical expenses not paid for by insurance. This typically includes deductibles, copayments, and coinsurance for the employee’s health plan, but it may also include expenses not covered by the health plan, such as dental and vision expenses.
Dependent Care FSA: can be established to pay dependent care expenses you incur while at work. This includes child care for children under the age of 13 as well as adult day care for senior citizen dependents, such as parents.

Summer 2010

noreply@blogger.com (Leavitt Group) — Mon, 31 May 2010 19:00:00 +0000

With the passage of the new health care reforms, one underlying question many may ask is “when will the changes take effect?” The following is a summary of some of the key changes and the dates they will be implemented:

Beginning in July of 2010, employees with health problems who have been uninsured for 6 months may be eligible to obtain coverage through a new high risk pool program. A temporary reinsurance program will help employers who provide coverage to their retirees in maintaining this coverage.

Beginning in plan years on or after September 23, 2010, pre-existing condition exclusions are prohibited for children under 19; dependents up to age 26 will be able to obtain coverage through parents’ health plans; routine preventive care will be covered without cost-sharing; and limits on lifetime coverage will be eliminated along with other changes.

In 2014 individuals and small businesses will be able to purchase coverage through state-based exchanges regardless of health status. Premiums cannot vary because of health status. Individuals will be required to purchase health insurance or pay a penalty. Subsidies will be available on a sliding scale to help individuals or families with incomes up to 400 percent of the federal poverty level to purchase insurance through new state-based exchanges.

While some health care payers may look to consolidate assets and begin planning for market exits, other private and public payers will look to try out new payment systems, reduce administrative costs, and pilot new strategies to improve the health of populations while lowering the cost of care. Enterprising providers will find partners and strategies that create and capture value and will assume more accountability for outcomes than ever before.

Included in this landscape of change will be the reaction of employers in handling insurance for their employees. One of the largest adjustments with PPACA* will be the nationwide pressure for employer-sponsored coverage. Both small and large businesses will approach employer-based insurance differently now.

Here are some basic elements from the health care reform that every business should know:

It is important to note that the law does not require employers to provide health insurance coverage.
The law considers employees working more than 30 hours to be full-time employees in regards to providing insurance.
If an employee of a non or insufficient insurance providing employer obtains insurance through a state insurance exchange and receives a premium credit, the employer will be fined.
New employees of companies with more than 200 employees must be automatically enrolled into the employer sponsored plan within 90 days of hire.
Fines for employers can be larger for employers that provide “unaffordable” coverage than those who simply provide no coverage.
The summation of hours that part-time employees work will be calculated into the formula evaluating business size.

*PPACA is the Patient Protection and Affordable Care Act, signed into law on March 23, 2010.

Information Provided by Leavitt Partners - Advising People Who Invest in Health Care.

Leavitt Partners was founded by Michael O. Leavitt, former Secretary of Health and Human Services. Leavitt Partners brings together partners from across governments and global industry that share a vision and passion for making a difference. The organization advises clients that invest in health care and food safety. For more information, visit www.leavittpartners.com.

SPRING 2010

noreply@blogger.com (Leavitt Group) — Sun, 28 Feb 2010 08:00:00 +0000

Ergonomics is the science of designing the job, equipment, and workplace to fit the worker. Proper ergonomic design can prevent repetitive strain injuries, which can develop over time and can lead to long-term disability. Here are some important tips to keep in mind:

The top of the computer monitor should be at or just below eye level
Head and neck should be balanced and in-line with torso
Shoulders should be relaxed
Elbows should be close to the body and supported
Lower back should be supported
Wrists and hands should be in-line with forearms
There should be adequate room for the keyboard and mouse
Feet should be flat on the floor

Source: www.osha.gov

Communicating the Value
of Employee Benefits

One way to attract, retain, and motivate staff is to offer a generous benefits package. But will your investment in a benefits package be fully appreciated by employees?

In many cases, employees tend to focus on their share of the cost, and many underestimate what employers pay for other benefits such as paid time off (PTO), tuition reimbursement, pension or 401(k) plans, and statutory benefits like employer-paid Social Security.

A good benefits education experience uses many different communication tools and helps employees appreciate the value of their total compensation.

Employees with a good understanding of their benefits package - even if the package isn’t up to par - are more likely to enjoy their workplace and feel valued.*

How to effectively communicate benefits to employees:

Face-to-Face Presentations

Group presentations and individual consultations can be one of the most effective ways to communicate. Open conversation engages employees and allows them to ask questions relevant to their needs.

Customized Employee Benefits Website
Benefits manuals can easily be lost or misplaced. Offering employee benefit information online allows employees to quickly get answers to their questions.

Benefits-at-a-Glance Summary Sheets
Lengthy manuals can be overwhelming to an employee trying to understand offered benefits. A “frequently-asked questions” sheet with concise answers can save employees unnecessary frustration.

Employee Newsletters
An employee newsletter with articles reviewing benefits, addressing questions, or announcing changes will remind employees of what is being provided.

*Source: www.humana.com

WINTER 2009

noreply@blogger.com (Leavitt Group) — Mon, 30 Nov 2009 16:00:00 +0000

Help Employees Reduce Holiday Stress

We all know the holidays often come with feelings of stress given the high expectations for the season. Here are some helpful hints to keep your employees productive and healthy throughout the holidays:

Set Work Expectations: Set clear and reasonable goals with your employees as to what work should be completed prior to holiday time off. Encourage time management in daily tasks to manage the workload.

Encourage Physical Activity: Create incentives to maintain your wellness program throughout the season. Post healthy holiday tips, like drinking plenty of water and exercising regularly.

Communicate Holiday Pay: If a holiday bonus is not in the budget this year, be sure to let your employees know so that they can budget their holiday expenses. Communicate paid holidays so employees can schedule time off accordingly.

Create a Harassment-Free Workplace

Harassment and discrimination can cause disruption in the workplace, lower employee morale, and could even result in a costly lawsuit.

The US Supreme Court has held that employers can be found liable for harassment and discrimination claims, even if the employer wasn’t directly aware that harassment and discrimination were occurring in the workplace.

Harassment can include any verbal, written, or physical act that makes employees uncomfortable at work or interferes with their ability to perform their jobs. It can include jokes, emails, cartoons, drawings or other material that is suggestive or reflects negatively on a protected class. It can include slurs or offensive language.

As an employer, you can be held accountable for all forms of unlawful discrimination and harassment, so it pays to have a proactive policy to protect your business and your employees. Here are some ways you can begin to address the issue:

• Create a harassment and discrimination prevention policy: Make sure employees know that you will not tolerate harassment or discrimination. Distributing a formal written policy outlining your commitment to a harassment and discrimination-free workplace is a good way to start. Make sure you and
your managers demonstrate that you believe the policy
is important.

• Outline steps employees should take: Your policy should also include a reporting procedure for employees who feel they are being harassed or discriminated against. It is important to make sure the method is clear, easily accessible, and confidential.

• Conduct a thorough investigation: An immediate investigation is imperative to protecting your employees and business. Once a complaint has been submitted, an objective and confidential investigation should be completed. Retaliation should not be tolerated. If it is determined that unlawful harassment has taken place, disciplinary action commensurate with the severity of the offense should be taken.

FALL 2009

noreply@blogger.com (Leavitt Group) — Mon, 31 Aug 2009 17:28:00 +0000

Are your employees contributing to their retirement fund?

Have your employees continued to contribute to a retirement savings plan despite the recession? If so, they are not alone. In the second quarter, more workers contributed to their retirement plan than reduced their contribution, according to a Fidelity Investments study. This is compared to the previous three quarters. In fact, the average account is up 13.5 percent from the first quarter due to the stock market rally and contributions.

Workers in their 30s and 40s continue to save and have a higher percentage of contribution in workplace plans than workers in their 20s – even though those in their 20s stand to benefit tremendously by investing early.

Tips for employees saving for retirement:

Start saving early in your career
Make wise investments
Look beyond immediate gratification
Save, even if it’s a small amount
Use banks for your emergency funds

Will this flu season affect your business?

The coming flu season will likely include the H1N1 flu, which the World Health Organization has declared a global pandemic. They estimate that one-third of the world will be infected with H1N1 within the next two years. While it is hard to predict the severity of this flu strain, recent reports suggest
H1N1 will affect about 50% of Americans.

If your employees get the flu, have a plan in place for operating with a reduced workforce. Also take measures to prevent the spread of the flu among your employees. Consider being more flexible, such as not requiring written proof of illness and allowing telecommuting. Also, provide additional cross-training among employees, and recommend they get flu shots for the H1N1 and seasonal flu. Keeping workplaces as clean as possible can help in avoiding contamination. The flu can spread quickly, and a person infected with the virus can be contagious before any symptoms are noticed. If your employees show signs of flu symptoms, don’t hesitate to send them home.

Publicize these everyday prevention steps at work

Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.
Avoid touching your eyes, nose or mouth to prevent spreading germs.
Try to avoid close contact with sick people.

If you are sick with a flu-like illness:

Stay home for at least 24 hours after your fever is gone, except to get medical care.

SUMMER 2009

noreply@blogger.com (Leavitt Group) — Sat, 30 May 2009 14:30:00 +0000

Is Your Wellness Program in Compliance?

With wellness programs increasing in popularity in the workforce, it is important that employers ensure their programs are in compliance with federal regulations. There are multiple laws impacting wellness programs, depending on the type of plan you implement (e.g. voluntary or mandatory; participation-based or goal-based incentives). Appropriate incentives for wellness programs can include:

• Reimbursement for the cost of a gym membership
• Rewards for attending a monthly health education seminar
• Cash incentives for participating in a cholesterol or blood screening
• Reimbursement for weight loss or smoking cessation programs

Make sure your plan is non-discriminatory. In particular, goal-based plans have several requirements for compliance, including providing eligible employees with an opportunity to qualify for incentives at least annually, and offering an alternative to employees whose circumstances would make participation difficult. Wellness programs encourage your workforce to stay healthy, which ultimately will keep your healthcare costs down. It is advisable, however, to work with legal counsel when designing a wellness program due to the compliance requirements and the variations in program design.

Keeping Employees Happy
While Tightening the Benefits Budget

Within any business, the Human Resources (HR) department faces unique challenges during trying economic times. The benefits budget may be cut in order to help overall company finances leaving HR tasked to motivate employees who feel the squeeze of any cuts.

What can an HR department do when faced with such a challenge? Consider the following ideas for containing benefits costs and easing the additional financial burdens today’s employees face.

• Offer qualified transportation benefits. Commuting costs are becoming more burdensome for many employees. You can offer qualified transportation benefits at little cost to your company through a reimbursement arrangement funded with employee pre-tax dollars. Qualified transportation benefits can include transit passes, qualified parking, and rides to and from work in a commuter highway vehicle (also known as vanpooling). This type of arrangement can save employees money on federal, Social Security, and (in most cases) state taxes, making it less expensive for them to commute to work.

• Consider implementing flexible work schedules, if this is an option for your type of business. For example, consider four 10-hour work days per week. This saves the business on energy costs and employees on transportation costs. Plus, many employees will appreciate the additional free day, whether it gives them a three-day weekend or a day during the week for running errands or relaxing.

• Add voluntary benefits to your benefits package, or expand the voluntary benefits choices you currently offer. Voluntary benefits are paid in full by the employees who choose to enroll. They offer advantages to employees over purchasing these benefits in the open market: Employees typically enjoy some savings and convenience, since they are purchasing the benefits at a group rate and paying for them via payroll deduction.

• Coverage summary for employees. Surprisingly, many employees don’t realize the extent to which their employers are paying for these benefits; they only know their own out-of-pocket costs. A brief, to the point “Capsule of Your Benefits” can summarize coverage for employees, and include the price tag being shouldered by the employer.

SPRING 2009

noreply@blogger.com (Leavitt Group) — Thu, 05 Feb 2009 16:37:00 +0000

HIPAA changes: What you need to know

The recent stimulus package will affect many aspects of the healthcare system. One area where you will see significant changes is in regard to HIPAA, or the “Health Insurance Portability and Accountability Act.” Some of the key changes include:

Certain privacy rules will apply directly to covered business associates.
New security breach rules will require notification to each affected individual in certain instances.
Some HIPAA-related penalties have increased.
Changes will be needed to HIPAA forms to comply with new regulations.

The Department of Health and Human Services (HHS) is expected to provide additional clarification on many changes. We will be watching carefully as additional information is made available. We recommend business associates and covered entities contact us to review these changes carefully.

Get employees more involved
in their benefits and health management during tough economic times

In this environment, you want to ensure your benefits dollars are being used to enhance employee health, well-being, and productivity. Here are some options to do just that.

1. Help employees implement a healthy lifestyle and focus on prevention with the following:

Generous coverage for preventive care.
Incentives for participation in activities designed to detect potentially serious medical conditions.
Encouraging participation in other wellness activities.
Making available employee assistance programs.

2. Avoid cost-shifting on benefits to keep overall expenses low.

There are ways to avoid large premium increases that can cause employees to drop coverage, in particular younger, more healthy employees, leaving your plan with a less desirable risk pool. Cost-shifting can cause employees to defer routine care and delay seeing a doctor when symptoms of illness first arise. In the long run, this may be costly to your health plan, but also add to absenteeism, disability costs, and lower employee productivity. Through creative benefits solutions, you can effectively manage costs and engage your employees in the process - even during tough economic times.

3. Offer benefit options that encourage employee consumerism

Another way to get employees more involved in their own health management is to offer programs that help employees to be wise consumers of healthcare, such as Flexible Spending Accounts (FSAs) and Consumer-directed Health Plans (CDHPs). Also, voluntary benefits can add a wide range of personalized options to an employer’s benefits program at little or no cost to the company.