Employer Health Insurance & Benefits - HKP

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Employer Health Insurance Benefits
New Strategies to Consider
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Workforce Management

• HKP is your comprehensive workforce solution
  offering a menu of solutions from one provider.

From hire to retire, HKP can assist with Tax
credits Payroll Retirement plans Benefits Time
attendance HR consulting Benefits consulting
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Workforce Management

• HKPs workforce management solution can
• Provide a greater return on investment
• Simplify your interface, increase efficiency and
  reduce errors
• Allow you to better manage your human capital
• Guard your executive information and support
  confidentiality procedures
• Minimize your risk
• Consolidate your entire human capital system

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• Outline

• Health Insurance Legislation Update
• ACA still law of the land
• QSEHRA (small employer reimbursement
  arrangements)
• Small Employer health insurance offering
  strategies
• Large Employer health coverage strategies
• Employer Benefits Strategies  
• Contain Costs
• Optimize administration with online enrollment

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• ACA

• ACA still in effect
• Employers still mandated to follow requirements
• 1095s to be postmarked to employees by 1/31/2018

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• New Legislation

• Qualified Small Employer Health Reimbursement
  Account (QSEHRA)
• Signed into law on December 13, 2016 by
  President Obama (Cures Act)
• QSEHRAs are compliant as of January 1, 2017

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Benefits Strategy and Financial Modeling

• What kind of an employer do you want to be when
  it comes to benefits?
• Are you more paternalistic/maternalistic?
• What kind of employees are you trying to attract
  and retain?
• The answers to these questions can help you focus
  on the types of benefits to offer

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Benefits Strategy and Financial Modeling

• Small employers health coverage options
• Calendar year timing of the implementation of
  QSEHRA is critical
• Group health insurance (fully insured)
• Group alternate-funded health (stop loss
  w/monthly max payments)
• Group health insurance with account-based plans
  (see large group)
• Group traditional self-funding (stop loss and
  paying claims as-you-go)

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Benefits Strategy and Financial Modeling

• Large employers health coverage options
• NO QSEHRA allowed (no individual health insurance
  w/employer reimbursements)
• Group health insurance (fully insured)
• Group alternate funded health (stop loss
  w/monthly max payments) sometimes not available
  for groups over 150 covered lives
• Participating contracts with refunds for good
  experience
• Group traditional self-funding (stop loss and
  paying claims as-you-go)

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QSEHRA

• Advantages for employer
• Less responsibilities (verify coverage in place
  and reimburse)
• No COBRA processing
• No ERISA regulations to follow
• No payroll deductions or enrollment forms
• Disadvantages for employer
• Not many ? need to have the right employees that
  will responsibly go out to find their own good
  coverage

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QSEHRA

• Disadvantages for employee
• Employee is on their own to find coverage and
  deal with bill and claim problems

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QSEHRA

• Rules
• Small employers only under 50 FTEs per the ACA
  definition
• Employer must offer reimbursement to all
  similarly situated employees
• Reimbursement amount can be up to 412/month for
  single or 833 for family
• Employer must fund NO pre-tax salary reductions
  from employees allowed
• Employees must provide proof of coverage in order
  for employer to reimburse

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Benefits Strategy and Financial Modeling

• Group coverage
• Advantages for employer
• Available to purchase any time during the year
• Broker/consultant available year-round to help
  with employee questions and employer
  administration
• No 20 rate-up for smokers with many major group
  health insurers
• Group premiums are generally less than individual
  premiums in the current environment

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Benefits Strategy and Financial Modeling

• Group coverage
• Disadvantages for employer
• More administration and regulation
• Pretax employee deduction administration,
  including Section 125 plan set-up
• COBRA or state continuation regulations (IA, IL
  and WI) ? Need to offer coverage to terminating
  employees, spouses, employees moving to part-time
  status, etc.

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Benefits Strategy and Financial Modeling

• Account-based plans
• Non-funded health reimbursement accounts
• Some used to buy-down deductibles for employees
  can be offered on pay-as-you go basis
• HSAs (Health Savings Accounts)
• Employers can contribute but are not required
• Beware of IRS/DOL comparability and
  discrimination rules to ensure you are not
  discriminating against non-highly compensated
  employees
• Flexible spending accounts
• Health FSA
• DCAP
• Commuter

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Benefits Strategy and Financial Modeling

• Cost saving trends
• Telemedicine
• Voluntary benefits
• Account-based plans
• Wellness plans
• Baked in to insurance products
• Separate wellness vendors, or home grown plans

Win-win for employer employees!
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Open Enrollment Planning

• Is electronic enrollment right for you?
• General process
• Employees become responsible for signing up
  online
• All educational benefits info is at their
  fingertips online
• Employer can still offer group informational
  meetings for questions
• Employees can print off their benefit statement
• Employees have year-round online access to
  benefit info
• Less chance for error in addresses and SSNs. No
  questions left blank computer wont allow it!

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• Contact information

• www.hkpayroll.com
• hrconsulting_at_hkpayroll.com
• 888.556.0123

Thank you!