Do you review your employee benefits plan during each renewal?
Experiencing personal health problems ranks near the top of the list of life's stressors. During difficult times, the Family Medical Leave Act often creates confusion and questions for employers and employees.
The Internal Revenue Service has increased the annual dollar limits for various welfare and retirement plan limits for 2018, including HDHPs, HSAs, FSAs, and 401(k) plans.
The late comedy legend Joan Rivers used the catchphrase “Can we talk?” in discussing various topics. She explained her use of the phrase, saying "I always try to be very honest. My humor is truly stripping everything. Bam!” she explained. She went on to describe her approach: “Let’s stop the nonsense”.
One area of Corporate America that could use a similar approach is the area of employee benefits. Insurance companies and consultants would like to talk trends, utilization, probabilities, and the like. But what is missing from the conversation is the person. Not “employees", but the individual person. How the person thinks, what he fears, how and what she will choose and why.
Self-funding has been used as a tool to maintain the cost of health benefits for many years.
Historically, this approach has been utilized by groups of 100 or more employees.
However, due to the Affordable Care Act (ACA), a new market is being created for smaller groups allowing them to take advantage of self-funding plans to save money and gain control over costs.
Level self-funding is a funding approach that falls between fully insured and self-funding. It allows small groups to take advantage of the self-funded approach without the risk.