A new trend in Employee Benefits is to offer incentives for healthy behaviors, such as a lower medical premium contribution for non smoking employees. To read more about implementing a wellness program, please read the article in this month’s Foster Thomas newsletter.
Additional information regarding benefit trends can be found on the HR Webcenter (http://www.hrwebcenter.com/).
Monday, October 20, 2008
Tuesday, October 14, 2008
VETS issue final regulations for Vets-100A
Effective June 18, 2008, the new VETS-100A report is required of all Federal Contractors with federal government contracts of at least $100,000, where at least one contract was entered into or modified on or after December 1, 2003. The final regulations do not affect the current VETS-100 form, which must be completed by contractors with federal government contracts of at least $25,000. Some contractors will need to complete both forms.
The VETS100A must be filed in the 2009 reporting cycle. All contractors are expected to file the Vets-100 report as usual in 2008. The VETS 100 categories remain as follows:
1. Special Disabled Veterans – veterans having a 10-20% serious employment handicap or a disability rated 30% or more by the Department of Veterans Affairs)
2. Veterans of the Vietnam era
3. Recently Separated Veterans (those who have been discharged or released from active duty within one year)
4. Other Veterans - those who served on active duty during a war, campaign or expedition for which a campaign badge was authorized.
The VETS-100A categories are as follows:
1. All Disabled Veterans; - a veteran of the U.S. military, ground, naval or air service who is entitled to compensation under laws administered by the Secretary of Veterans affairs; or a person who was discharged or released from active duty because of a service-connected disability.
2. Recently Separated Veterans - those who have been discharged or released from active duty in the last three years
3. Armed Forces Service Medal Veteran - Veterans who served on active duty in the U.S. Armed Forces during a U.S. military operation for which an Armed Forces service medal was awarded pursuant to Executive Order 12985
3. Other Protected Veterans – veteran who served on active duty in the US military, ground, naval or air service during a war or in a campaign or expedition for which a campaign badge has been authorized under the laws administered by the Department of Defense.
The VETS100A must be filed in the 2009 reporting cycle. All contractors are expected to file the Vets-100 report as usual in 2008. The VETS 100 categories remain as follows:
1. Special Disabled Veterans – veterans having a 10-20% serious employment handicap or a disability rated 30% or more by the Department of Veterans Affairs)
2. Veterans of the Vietnam era
3. Recently Separated Veterans (those who have been discharged or released from active duty within one year)
4. Other Veterans - those who served on active duty during a war, campaign or expedition for which a campaign badge was authorized.
The VETS-100A categories are as follows:
1. All Disabled Veterans; - a veteran of the U.S. military, ground, naval or air service who is entitled to compensation under laws administered by the Secretary of Veterans affairs; or a person who was discharged or released from active duty because of a service-connected disability.
2. Recently Separated Veterans - those who have been discharged or released from active duty in the last three years
3. Armed Forces Service Medal Veteran - Veterans who served on active duty in the U.S. Armed Forces during a U.S. military operation for which an Armed Forces service medal was awarded pursuant to Executive Order 12985
3. Other Protected Veterans – veteran who served on active duty in the US military, ground, naval or air service during a war or in a campaign or expedition for which a campaign badge has been authorized under the laws administered by the Department of Defense.
Thursday, September 4, 2008
Due September 30, 2008
EEO-1 Survey Due September 30, 2008
If you have 100 employees or if you are a federal contractor or subcontractor with 50 employees and 50,000 in government contracts or subcontracts, you must comply with the EEO-1 reporting requirements.
Changes were made to the EEO-1 survey requirements for the 2008 reporting cycle. Changes include a distinction to two levels of management: Senior Level Officials and First/Mid Line Management and the addition of the “Two or More Races Category.
It is recommended that employers who do not have employees classified to coincide with the new EEO-1 codes, re-resurvey the workforce.
Employee data to be filed includes all full-time and part-time employees employed during a selected payroll period. Employment data includes sex and ethnic background for each occupational category.
The filing deadline for the EEO-1 survey is September 30, 2008. The preferred method is the web based filing system.
Questions may be addressed to: Beth Bulger of FosterThomas –1-800-372-3626.
If you have 100 employees or if you are a federal contractor or subcontractor with 50 employees and 50,000 in government contracts or subcontracts, you must comply with the EEO-1 reporting requirements.
Changes were made to the EEO-1 survey requirements for the 2008 reporting cycle. Changes include a distinction to two levels of management: Senior Level Officials and First/Mid Line Management and the addition of the “Two or More Races Category.
It is recommended that employers who do not have employees classified to coincide with the new EEO-1 codes, re-resurvey the workforce.
Employee data to be filed includes all full-time and part-time employees employed during a selected payroll period. Employment data includes sex and ethnic background for each occupational category.
The filing deadline for the EEO-1 survey is September 30, 2008. The preferred method is the web based filing system.
Questions may be addressed to: Beth Bulger of FosterThomas –1-800-372-3626.
Thursday, August 14, 2008
High Deductible Health Plan Explanation
Introduction
The rising prices of gasoline and food have forced people to review their expenses and become a more cost conscious consumer. This has also extended into health insurance. In the last few years, the cost for companies to provide employees with health insurance has risen dramatically. According to the Kaiser Family Foundation’s Employer Benefits Annual Survey 2007, from the Spring of 2006 to the Spring of 2007 the cost of premium increased on average 6.1%. Ten percent of companies experienced an increase of greater than 15%.
What actions can employers take to keep the health insurance affordable for both themselves and the employee? Many companies are implementing a High Deductible Health plan with a Health Savings Account.
A High Deductible Health Plan with a Health Savings Account was developed by the government to combat the rising cost of health care. The Health Savings Account allows employees to set aside pre-tax dollars to pay for expenses incurred toward the mandatory high deductible and other out of pocket eligible expenses.
Eligible expenses include office visit copays, deductibles, coinsurance, prescription drug copays, dental claims, vision care expenses, and certain over the counter items. A complete list of eligible expenses can be found in IRS Publication 502 (http://www.irs.gov/publications/p502/index.html). Members should keep their receipts from purchases in the event of an audit.
A Health Savings Account differs from a Flexible Spending Account, which is “use it or lose it.” The HSA is a personal bank account in which unused funds can roll over on an annual basis. The account is portable, so an employee may keep their HSA if they leave the company. There are also investment options, which will vary depending on the HSA vendor.
Besides an account used to pay for current eligible expenses, the HSA functions as a retirement savings vehicle. At the age of 65, an HSA can again be used to pay for eligible expenses or purchase a supplemental insurance plan (not Medigap) even if you do not participate in a HDHP.
It is important to note an employee cannot open a Health Savings Account if:
1. They are enrolled in another health insurance plan that is not a HDHP.
2. They participate in a medical Flexible Spending Account.
3. They are enrolled on Medicare.
How does a High Deductible Health Plan work?
Mary is enrolled in ABC Company’s High Deductible Health Plan, which has a $1,200 deductible for single coverage and $2,400 for family. After the deductible is met, most services (with the exception of prescription drugs) are covered at 100% (please note this plan design is for example purposes only- benefits can vary).
Mary visits her in network primary care provider due to illness. She has not incurred any expenses toward the deductible yet. Since she is enrolled in a HDHP, the provider charges her the contract rate of $100 for the service provided. Mary had opened a Health Savings Account, so she used $100 from her account to pay for the visit.
Note: When a member uses an in network provider, they are paying the discounted charge for the service. There are no discounts when utilizing out of network providers.
There are often several options in which to access the funds, the most popular being a debit card. Members can also use checks or an automatic debit feature. Like any other bank account, the funds must be in the account in order to make a payment or deduction. For instance, a member cannot deduct $400 to pay a claim if there is only $300 in the account. Also to be noted- there are banking fees associated with an H SA, which will vary by vendor.
Health Savings Account Funding
The most common way to fund a Health Savings Account is through pre-tax deductions via payroll. Unlike a Flexible Spending Account, employees can increase or decrease the amount of their election throughout the year. In addition, an employee can make a post tax lump sum contribution and claim it as pre-tax at the end of the year.
Companies often choose to fund the account as well. This can range from covering the entire deductible, half the deductible, or another set amount.
How can I make a High Deductible Health Plan attractive to my employees?
First and foremost, EDUCATE! High Deductible Health Plans initially seem overwhelming and require education on how to use them. Holding enrollment meetings with a knowledgeable representative is crucial. This gives the employees the opportunity to review the plan in detail and ask important questions.
If you have more than one plan design option, pricing is the key. Formulate the contribution structure to make the HDHP contributions significantly less than the HMO, POS, or PPO option. As mentioned previously, funding the Health Savings Account also provides an incentive to enroll in the HDHP.
Consumerism
A High Deductible Health Plan drives members to think about how they are using the plan, since their out of pocket costs are higher. This should in no way discourage members from seeking necessary care, but to research the cost of a procedure or prescription to find the most economical option. Most carriers have cost comparison tools that members can utilize to compare procedures at different facilities or the price of a prescription and various pharmacies.
High Deductible Health Plans also encourages members to seek preventive care, not making it subject to the deductible. Hopefully, this catches any conditions early, making them treatable and manageable.
Implementing a High Deductible Health Plan will assist in controlling the costs of benefits and also make employees more savvy consumers. To find out more about High Deductible Health Plans or to request a HDHP/HSA quote, contact your Account Manager, who will be happy to discuss the plans with you.
Sources:
The Kaiser Family Foundation and Health Research and Educational Trust.
Employer Health Benefits 2007 Annual Survey
Internal Revenue Service United States Department of Treasury. Publication 969 (2007), Health Savings Accounts and Other Tax-Favored Health plans. <http://www.irs.gov/publications/p969/>
The rising prices of gasoline and food have forced people to review their expenses and become a more cost conscious consumer. This has also extended into health insurance. In the last few years, the cost for companies to provide employees with health insurance has risen dramatically. According to the Kaiser Family Foundation’s Employer Benefits Annual Survey 2007, from the Spring of 2006 to the Spring of 2007 the cost of premium increased on average 6.1%. Ten percent of companies experienced an increase of greater than 15%.
What actions can employers take to keep the health insurance affordable for both themselves and the employee? Many companies are implementing a High Deductible Health plan with a Health Savings Account.
A High Deductible Health Plan with a Health Savings Account was developed by the government to combat the rising cost of health care. The Health Savings Account allows employees to set aside pre-tax dollars to pay for expenses incurred toward the mandatory high deductible and other out of pocket eligible expenses.
Eligible expenses include office visit copays, deductibles, coinsurance, prescription drug copays, dental claims, vision care expenses, and certain over the counter items. A complete list of eligible expenses can be found in IRS Publication 502 (http://www.irs.gov/publications/p502/index.html). Members should keep their receipts from purchases in the event of an audit.
A Health Savings Account differs from a Flexible Spending Account, which is “use it or lose it.” The HSA is a personal bank account in which unused funds can roll over on an annual basis. The account is portable, so an employee may keep their HSA if they leave the company. There are also investment options, which will vary depending on the HSA vendor.
Besides an account used to pay for current eligible expenses, the HSA functions as a retirement savings vehicle. At the age of 65, an HSA can again be used to pay for eligible expenses or purchase a supplemental insurance plan (not Medigap) even if you do not participate in a HDHP.
It is important to note an employee cannot open a Health Savings Account if:
1. They are enrolled in another health insurance plan that is not a HDHP.
2. They participate in a medical Flexible Spending Account.
3. They are enrolled on Medicare.
How does a High Deductible Health Plan work?
Mary is enrolled in ABC Company’s High Deductible Health Plan, which has a $1,200 deductible for single coverage and $2,400 for family. After the deductible is met, most services (with the exception of prescription drugs) are covered at 100% (please note this plan design is for example purposes only- benefits can vary).
Mary visits her in network primary care provider due to illness. She has not incurred any expenses toward the deductible yet. Since she is enrolled in a HDHP, the provider charges her the contract rate of $100 for the service provided. Mary had opened a Health Savings Account, so she used $100 from her account to pay for the visit.
Note: When a member uses an in network provider, they are paying the discounted charge for the service. There are no discounts when utilizing out of network providers.
There are often several options in which to access the funds, the most popular being a debit card. Members can also use checks or an automatic debit feature. Like any other bank account, the funds must be in the account in order to make a payment or deduction. For instance, a member cannot deduct $400 to pay a claim if there is only $300 in the account. Also to be noted- there are banking fees associated with an H SA, which will vary by vendor.
Health Savings Account Funding
The most common way to fund a Health Savings Account is through pre-tax deductions via payroll. Unlike a Flexible Spending Account, employees can increase or decrease the amount of their election throughout the year. In addition, an employee can make a post tax lump sum contribution and claim it as pre-tax at the end of the year.
Companies often choose to fund the account as well. This can range from covering the entire deductible, half the deductible, or another set amount.
How can I make a High Deductible Health Plan attractive to my employees?
First and foremost, EDUCATE! High Deductible Health Plans initially seem overwhelming and require education on how to use them. Holding enrollment meetings with a knowledgeable representative is crucial. This gives the employees the opportunity to review the plan in detail and ask important questions.
If you have more than one plan design option, pricing is the key. Formulate the contribution structure to make the HDHP contributions significantly less than the HMO, POS, or PPO option. As mentioned previously, funding the Health Savings Account also provides an incentive to enroll in the HDHP.
Consumerism
A High Deductible Health Plan drives members to think about how they are using the plan, since their out of pocket costs are higher. This should in no way discourage members from seeking necessary care, but to research the cost of a procedure or prescription to find the most economical option. Most carriers have cost comparison tools that members can utilize to compare procedures at different facilities or the price of a prescription and various pharmacies.
High Deductible Health Plans also encourages members to seek preventive care, not making it subject to the deductible. Hopefully, this catches any conditions early, making them treatable and manageable.
Implementing a High Deductible Health Plan will assist in controlling the costs of benefits and also make employees more savvy consumers. To find out more about High Deductible Health Plans or to request a HDHP/HSA quote, contact your Account Manager, who will be happy to discuss the plans with you.
Sources:
The Kaiser Family Foundation and Health Research and Educational Trust.
Employer Health Benefits 2007 Annual Survey
Internal Revenue Service United States Department of Treasury. Publication 969 (2007), Health Savings Accounts and Other Tax-Favored Health plans. <http://www.irs.gov/publications/p969/>
Monday, August 11, 2008
COBRA Administration
It is crucial to be in compliance with COBRA regulations to avoid legal issues.
http://www.cobrainreview.com/newsletter/index.htm#1
Should you have any questions regarding COBRA Administration, please consult with a Foster Thomas representative.
http://www.cobrainreview.com/newsletter/index.htm#1
Should you have any questions regarding COBRA Administration, please consult with a Foster Thomas representative.
Tuesday, July 1, 2008
Upcoming Seminar & Training Topics
Location
TeqCorner Office Building
1616 Anderson Rd
McLean, VA 22102
3rd Floor Conference Room
Seminars
August 6th, 2008 - 11 am - Introducing the Teq*Partner Program
September 3rd, 2008 - 11 am - Start-up Like a Large Business
Trainings
Q4 - October 8th, 2008 - 11 am -
Q1 - January 7th, 2009 - 11 am -
Q2 - April 8th, 2009 - 11 am -
Q3 - July 8th, 2009 - 11 am -
TeqCorner Office Building
1616 Anderson Rd
McLean, VA 22102
3rd Floor Conference Room
Seminars
August 6th, 2008 - 11 am - Introducing the Teq*Partner Program
September 3rd, 2008 - 11 am - Start-up Like a Large Business
Trainings
Q4 - October 8th, 2008 - 11 am -
Q1 - January 7th, 2009 - 11 am -
Q2 - April 8th, 2009 - 11 am -
Q3 - July 8th, 2009 - 11 am -
Monday, June 30, 2008
HR solutions don’t have to be complicated…
As a FosterThomas partner, you’ll get exactly the right amount of HR support. As your business grows and changes, we’re there to help you rethink your HR picture and support you with a flexible action plan. Choose the level of support you need from our tiered service plans:
HRPartner—Customized for companies with 50 or fewer employees, HRPartner offers comprehensive human resource support that includes an initial compliance review and update, daily HR management services, an annual review, and access to the HRWebCenter.
BenefitsPartner—An extension of your HR department, BenefitsPartner supports not just your management, but also your employees. Benefits managers, claims specialists, and customer service reps tackle every benefits-related issue your company is facing—no matter how big or small.
RiskPartner—Avoid potential pitfalls and losses with RiskPartner, a program that will help you develop an insurance risk management strategy supported by our full portfolio of products and services. We offer consulting and management of audits, claims, contractual transfers, litigation, loss control, mergers and acquisitions, outsourcing, and more.
HRPartner—Customized for companies with 50 or fewer employees, HRPartner offers comprehensive human resource support that includes an initial compliance review and update, daily HR management services, an annual review, and access to the HRWebCenter.
BenefitsPartner—An extension of your HR department, BenefitsPartner supports not just your management, but also your employees. Benefits managers, claims specialists, and customer service reps tackle every benefits-related issue your company is facing—no matter how big or small.
RiskPartner—Avoid potential pitfalls and losses with RiskPartner, a program that will help you develop an insurance risk management strategy supported by our full portfolio of products and services. We offer consulting and management of audits, claims, contractual transfers, litigation, loss control, mergers and acquisitions, outsourcing, and more.
Get everything you need…all in one place.
FosterThomas can help you assess your HR needs, analyze current performance, review plan designs, and implement an infrastructure to support your HR strategy. Our programs extend beyond the traditional to include wellness education, on-site training, and an impressive range of benefits options. We’ll even work with you on a continuing basis to provide the appropriate staffing and tools to support these services.
Where do you want to be tomorrow?
How can you stay competitive and retain a strong workforce when benefits costs are on a perpetual upward curve?
FosterThomas consults with clients on their long-range human resource strategy. We design today’s benefits plans with an eye on the horizon to ensure that your HR programs grow as your company grows in a changing marketplace.
FosterThomas = Experience
Our HR team brings 20 years of experience to the table and a holistic approach to HR consulting and management. Our HR services include:
Where do you want to be tomorrow?
How can you stay competitive and retain a strong workforce when benefits costs are on a perpetual upward curve?
FosterThomas consults with clients on their long-range human resource strategy. We design today’s benefits plans with an eye on the horizon to ensure that your HR programs grow as your company grows in a changing marketplace.
FosterThomas = Experience
Our HR team brings 20 years of experience to the table and a holistic approach to HR consulting and management. Our HR services include:
- Consulting services—human resources, benefits, and risk compliance all focused on the long-term protection of your company
- Benefits support and administration through our 1-800 call center that provides assistance with claims, billing, enrollment, COBRA administration, and more.
- On-site support, assistance with staffing, and outsourcing to ensure you’ve got the HR process completely covered
- Management and employee training on harassment and discrimination, effective discipline, legal issues, interviewing and recruitment, and COBRA, HIPPA, and FMLA
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