VOLUNTARY BENEFITS: WHAT'S NOT TO LIKE?

A recent nationwide study found that more and more businesses and workers are benefiting from voluntary employee benefits programs. According to the Prudential Insurance Company State of Group Voluntary Benefits survey:

• More than six in ten employees surveyed (63%) believe that voluntary benefits increase the value of their company's benefits program.
• The percentage of employees who would like to receive more benefits grew to 34% from 24% a year ago.
• One in three employees feels that losing their voluntary benefits would be disruptive and expensive.

"Employers and employees agree on the value of voluntary benefits," says Bob Patience Prudential Group Vice President, Voluntary Benefits Insurance. "Employers see an increase in employees' satisfaction with these programs, while employees appreciate their employers' endorsement of the products offered, and believe they get good value because of their employers' involvement and diligence."

Voluntary benefits offers workers a number of advantages, including the education and resources they need to make informed decisions based on their needs. Taking full advantage of these programs is a great way for employees to improve their "wellness" - both physical and financial. What's more, voluntary benefits offer workers the convenience of employer-based enrollment systems and "pain free" payroll deduction.

What employees saw as the primary advantage of voluntary benefits varied based on age, education, and gender. More than three in five workers (62%) over the age of 60 focused on the guaranteed coverage feature. More than half (56%) of college graduates preferred the wide range of available products. A slightly higher percentage (53%) of women than of men (45%) chose the convenience of payroll deductions.

Our agency's professionals would be happy to advise you on creating or updating, your Voluntary Benefits program - just give us a call.

HEALTH CARE IMPLEMENTATION COSTS: REALITY CHECK

Most employers hope to avoid raising rates for their Group Health plans when new regulations under the Affordable Care Act take effect next January, according to a recent nationwide survey of more than 1,200 businesses by Willis Human Capital Practice. However, more than half of these businesses haven't calculated the cost of implementing these changes.

"Employers are still coming to terms with the impact of healthcare reform, and many employers still seem to function in a 'shock mode,'" says Jay Kirschbaum, Practice Leader of the Willis National Legal and Research Group. "Although few employers consciously manage their Group Medical benefits as a component of their total rewards package, survey responses indicate the beginning of an employer trend in this direction."

The study concluded that most businesses are either relying on inaccurate "perceptions of cost" in planning their responses to healthcare reform, or don't believe that the new rules will affect their Group Health program. For example, only 20% of surveyed employers plan to adjust other rewards (retirement, dental, vision, salaries, vacation, bonuses, and so forth) to offset the cost of ADA compliance.

The survey also found that:

• More than one in three employers might shift health care costs to employees.
• The percentage of employers willing to forego "grandfathered" status for their health plans has skyrocketed from only 13% in 2011 to 34% last year.
• Most employers intend to "play" under the "pay or play" mandate, by offering plans that exceed the "minimum essential coverage" under the ACA, and adjust coverage and contributions later to manage expenses.

For informed advice on how to bring your company's plan into compliance with the ADA, while getting the maximum benefit from your health care dollar, please feel free to get in touch with us at any time.

ONLINE EMPLOYEE EDUCATION, ANYONE?

Non-traditional voluntary employee benefits are becoming increasingly popular with workers because they address their real-world lifestyles and financial needs. If you'd like to offer your workers a benefit that can help them invest in their future, advance their careers - and make them more productive - all without costing you a dime, consider online learning programs.

According to a recent nationwide study by Harris Interactive, more than half (53%) of workers and their spouses surveyed would be at least "somewhat likely" to use educational services for themselves or their families through an employee purchase program.

While higher education has become essential to get ahead in today's high-tech world, skyrocketing costs have made it increasingly difficult for workers to afford. More than nine in ten college students have taken out loans to earn their bachelors degree - and the value of student loan debt has topped $1 trillion ($300 billion more than credit card and auto loan debts combined)!

Many employers currently offer some form of tuition assistance for the continuing education of their workers. However, online learning can provide a more affordable and convenient alternative for your employees to fund their education and that of their family members (through tutoring programs and SAT/ACT preparation programs) while learning at their own speed. Workers would pay through convenient pain-free payroll deductions, providing a responsible way to budget, together with the opportunity to graduate free of debt. What's more, the program won't burden your employee benefits budget.

To learn more about how you can offer this creative benefit to your workers, just give us a call.

MORE MIDSIZED COMPANIES OFFERING WELLNESS INCENTIVES

The number of mid-market employers giving Group Health plan members incentives to participate in wellness programs has more than doubled since 2010, says a recent report by Fidelity Management and Research L.L.C.

The study found that more than three in four midsize businesses (77%) - those with fewer than 5,000 employees - offered employees monetary rewards tied to wellness activities and health management outcomes in 2011, compared with fewer than two in five (38%) that provided cash incentives in 2010. Overall, nearly nine in ten employers surveyed (86%) gave some type of incentive for wellness activities and/or outcomes in 2011, up from with 63% a year earlier.

The average value of incentives offered to employees and their dependents has also increased substantially. For the 2013 plan year, the average employee incentive value will reach $521, up from $460 in 2011; while the average incentive value for dependents will grow to $465 this year, from $390 in 2011.

Despite the rapid increase in mid-market businesses offering incentives for wellness program participation, they're still less likely than larger employers to provide these rewards. The value of incentives also remains lower among midmarket employers than those given by larger businesses. Less than half of midsize firms (45%) offered inducements for healthy behavior worth $500 or more, compared with 50% of large employers and 68% of very large employers.

"As the cost of providing health care continues to increase, employers recognize one of the key ways to manage their company's costs is to give incentives to their workforce for leading a healthier lifestyle," says Adam Stavisky, Fidelity Senior Vice President/ Benefits Consulting.

If you'd like to implement, or a revise, an incentive program to help keep your workers stay more healthy - and, thus, more productive - just let us know. We're here to help!