The Occupational Safety and Health Administration (OSHA) has issued a directive changing the required fall protection systems for residential construction. This directive, effective June 16, 2011, requires the use of conventional fall protection systems in residential construction activities six feet or more above lower levels. Use of these systems is not currently required in residential construction.
The Safety and HR professionals at Management 2000, an Indiana PEO, have the knowledge and expertise to help employers comply with ever-changing employment laws. Whether the concern is safety, payroll or benefits administration, or any other human resource issue, Management 2000 provides the human resources help employers need to operate successfully. For more information about Management 2000’s human resource administration services, call (317) 549-2000 or visit www.management2000.com.
As Employers look ahead to 2011 plan years, they're raising questions to understand the affect health-care reform will have on current and future employee benefits plans. What changes, if any, apply to our group plan? Do I have to may all changes now? Is our plan Grandfathered; if so, does that mean I can disregard the September 23, 2010 changes?
To answer the first question Patient Protection and Affordable Care Act (PPACA) applies to 'group health plans'. But that does not mean 'every' group health plan. PPACA applies to:
Major Medical plans, Mini-Med plans, Executive Medical Expense Reimbursement Plans, Government Medical Plans, and some Health Flexible Spending Arrangements.
Changes that become effective September 23, 2010 are as follows:
- Coverage of older children (Grandfathered plans prior to 2014 do not have to offer coverage to older children if child is eligible to enroll in an employer-sponsored plan).
- New Appeals Process / External Review (does not apply to Grandfathered plans).
- Any Available Primary Care Provider / Pediatrician (does not apply to Grandfathered plans).
- Coverage of Emergency Services (does not apply to Grandfathered plans).
- Access to Ob/GYN Care (does not apply to Grandfathered plans).
- Limits on Pre-existing Conditions Exclusions (under age 19).
- No Lifetime Limits on Essential Health Benefits.
- Restricted Annual Limits on Essential Health Benefits.
- No Rescission.
- Preventive Health Coverage (does not apply to Grandfathered plans).
For a more in-depth understanding of these coverages and changes, consult with a Employee Benefit Advisor. Management2000 is a PEO Indianapolis based that offers Strategic Human Resources which includes Employee Benefits Administration. We would welcome the opportunity to provide our expertise.
Many employers are in the midst of planning for 2011. When looking over operating costs, one area of concern is the expense of offering employee benefits insurance. With the continued uncertainty in the economy and the mounting changes from healthcare reform, it can be a lot to consider.
Many employers want to know what changes will cause them to lose "Grandfathered" Status. As outlined in a previous blog, any change in insurance carriers or significant increases to existing plans will compromise your status.
Here are a couple of key elements for any plan that existed March 23, 2010. You will want to make note of the following dis-qualifiers:
- Co-payments. A greater increase of $5 or an increase higher than medical inflation plus 15 percentage points.
- Deductibles. An increase above medical inflation plus 15 percentage points.
- Co-insurance. Any increase in the rate after March 23, 2010.
- Out-of-Pocket Limit. An increase above medical inflation plus 15 percentage points.
- Annual Limit. Any decreases in annual limit that was in place on March 23, 2010 or adoption of one that did not exist at that time. Exception is if lifetime limits may be replaced with a annual one.
- Employer Contributions. A decrease of more than 5 percentage points below the existing employer rate.
For an in-depth list see the interim final rule on grandfathered plans. To ensure that you maintain compliance with existing and future regulations, consider employing the services of a Small Business PEO. Management 2000 provides Human Resources Outsourcing Service and Employee Benefits Administration. We will welcome the opportunity to manage your employee benefits, so you can run a business.
According to a recent WorldatWork survey, employers plan a 2.5 percent average increase in salary budgets next year, with average raises of up to 0.7 percent projected for low performers, 2.4 percent for middle performers, and 3.7 percent for top performers. Employee compensation is a critical factor in both recruiting and retention strategies. Appropriate pay rates depend on many factors, including industry averages and other benefits offered by a particular employer.
While employers should review compensation on a periodic basis, this is a time consuming task that is often overlooked. Management 2000, an Indiana PEO, can help. Management 2000 has the HR management tools necessary to develop effective compensation packages tailored to individual employers’ needs. For more information about the many human resource management services provided by Management 2000’s HR Department, call (317-549-2000 or visit www.management2000.com.
In a time of much uncertainty surrounding the healthcare reform, according to a
June 14th PricewaterhouseCoopers, 'Behind the Numbers Report', employer costs are estimated to increase around 9%. The good news is this is a drop of 0.5% from 2010 growth rate. What are the primary contributors?
On the encouraging side, there are three areas expected to deflat or hold medical costs:
- Pre-managed care design that increases deductibles and replacing co-pays with co-insurnance.
- Drugs costs cooled by expansion of generic drug portfolio. High volume drugs such as Lipitor patents expire in 2011.
- COBRA costs expected to level off. (side note: Congress has introduced an extension of the subsidy, legislation (S. 3548), that would reinstate through 11/30/2010).
The primary drivers for the inflating costs will be:
- Hospitals and Physicians move costs from Medicare to private payers/employers. This will be the top reason for higher costs.
- Care-provider consolidation. Private practices will decrease while groups emerge.
- 2011 Stimulus funds will launch electronic hospital records implementations to avoid 2015 Medicare penalties. This will be a billion dollar invest in to technology.
Although the primary drivers are out of employers control, your ability to maximize on the deflators is not. If you are a small to medium size employer contact Management 2000, a PEO Indianapolis. Let our team of Employee Benefit Advisors and Human Resource Consultants put in place a benefits plan administration that will ensure your success and control costs.
PricewaterhouseCoopers' report is available at www.pwc.com/us/medicalcosts2011.
On June 14,2010, The IRS, U.S. Department of Labor and HHS released guidance on what Grandfathered Plans.
Grandfathered plans are fully-insured or self-funded health plans that existed on March 23,2010. Many within the Benefits Community were waiting for guidance to how what changes, if any, could be made without compromising their status. The interim final regulations are clear that any change to the following areas put your plan at risk:
- Significant reduction in benefits
- Increase in coinsurance
- Increase in copay
- Increase to deductibles and out-of-pocket limits
- Employer decrease in contribution
- Modification of overall annual limit
- Modifications in fully-insure policy
Management 2000 offers Human Resources Outsourcing Service that includes Employee Benefit Management. Let one of our Employee Benefit Advisor's help you plan for the future. We are a small business PEO with offices in Indianapolis, IN. Contact us today, so we can help guide you and yours business to success and wellness.
Section 1251 of the Patient Protection and Affordable Care Act (PPACA), preserves the ability of consumers to maintain existing coverage by “grandfathering” existing group health or individual plans where individuals were enrolled as of March 23, 2010. In addition, it allows:
- Addition of family members
- Addition of new employees
- Collective bargaining agreements Maintained until last of agreements terminates.
When the insurance reforms become applicable to other plans, grandfathered individual and group plans must also meet the following requirements:
- Issue a standard plan summary with standardized definitions
- Distribute summaries of material modifications 60 days in advance of any material change
- Waiting periods rules
- Restrictions on lifetime
- Annual limits
- Rules on rescission's
- Preexisting conditions
- Coverage for dependent children up to age 26 (2014 when the adult child is not eligible for an employer sponsored plan)
There are many regulatory matters that still need to be locked down based upon the current statutory language of PPACA. One unanswered area is can states make laws governing grandfathered plans without compromising its status.
Management 2000 is a small business PEO with Human Resources Outsourcing service Indianapolis, IN. Put our Employee Medical Benefits Specialist to work for you.
The Departments of Health and Human Services, Labor and Treasury issued the Interim Final Rules for Group Health Plans and Health Insurance Issuers relating to Dependent Coverage of Children to Age 26. This is what you need to know today.
Under the Patient Protection and Affordable Care Act, group health plans that offer dependent coverage for children are required to do so up to the age of 26. Coverage extension applies to plans that begin on or after September 23, 2010. For calendar year plans, the extension must be in place by January 1, 2011.
Along with the change in age, the new law only allows two eligibility requirements:
- Relationship between the participant and child. The definition of ‘child’ is not defined by the regulations. Therefore, plans will continue to define which children will be covered.
- Age of child – mandates coverage until the child attains age 26.
Steps of Action:- Review current plan to determine compliance.
- Communicate with vested parties regarding changes and dates.
- Assess whether plan contribution needs to change (refer to regulations).
- One-time Special Enrollment Notification – 30 day window.
- Amend plan documents.
- Communicate plan changes to participants.
Compliance requirements and guidance from the various government agencies, along with updates from insurance carriers is continuous. Why not consider utilizing the Employee Benefits Management experts of a Small Business PEO to assist. Management 2000 offers PEO Services. Put our Benefits Plan Administration Team to work for you, so you can run a business.
For employers, employee retention and increasing productivity have always been paramount to running a successful business. It became clear as early as 2004, that employee’s work satisfaction is tied in a large part to benefits. More directly, it is benefits linked to their health, work-life balance and financial security.
In 2008, an annual Study of Employee Benefit Trends by MetLife revealed that benefits played a bigger role in employee loyalty than employers realized. In the most recent study (2009), the key message from the study is how to ‘align benefits in a challenging economy.” From the employer standpoint it is cost and employee productivity. For the employee, it’s about financial security and health benefits.
The Study of Employee Benefit Trends: Finds from the National Survey of Employers and Employees, illuminates a surprising link between “benefit programs and employee productivity.” 48% of employers that offered wellness programs reported an increase in employee productivity. Is your Employee Benefits Plan taking you in the right direction?
Management 2000 is a small business PEO that can build an Employee Benefits Plan that slows benefits costs while increasing employee productivity. Contact us today. Whether you are interested in the services of an Employee Benefits Advisor or as comprehensive as Employee Benefits Administration, we are ready to assist you!
Although the economy may be showing signs of improvement, employers remain focused on increasing efficiency and holding down costs. This may include downsizing, eliminating pay raises, and even cutting pay for employees. While these actions can be justified, employers must be careful. Top performing employees still need to be rewarded for their efforts and companies must make sure their compensation is in line with what is being offered in their market. Otherwise, employees might leave and companies can end up spending even more time and money to replace them.
Management 2000, a PEO in Indianapolis, Indiana and Dayton, Ohio helps employers develop an HR strategy to recruit and retain quality employees. From human resource policies, to employee benefits, to payroll services, Management 2000 provides the HR support employers need to be successful.
Using temporary employees or independent contractors can give an employer a flexible way to respond to changing work demands. Temporary employees can be found through temporary staffing agencies or by direct hire, while contractors are usually obtained directly by the company. Whether help is temporary or contract, however, specific rules must be followed in order to comply with a variety of employment, tax and benefits laws.
The HR Department at Management 2000, a PEO with offices in Indiana and Ohio, provides human resources help employers need to develop effective HR procedures and policies. The experienced HR professionals at Management 2000 provide the HR support employers need to develop an HR strategy that addresses temporary or contract help, as well as other human resource issues.
With the rising costs of health-care, small business owners are looking at ways to slash premiums and partake in federal incentives. Have you considered implementing a Wellness program as part of your Employee Benefits Plan?
The Health care reform further embraces and rewards employers that offer Wellness programs to their employees. According to the Cleveland Clinic Foundation there are four key components to successful programs:
Tobacco free- Food choices
- Workplace stress
- Physical activity
Management 2000 is an Indianapolis based Small Business PEO, that can provide Benefits Plan Administration or Employee Benefit Advisory services to your small business.
Contact our Employee Benefits Management Team today, to learn more about starting a wellness program in your workplace.
Payroll errors can be costly. Last month, a petroleum company in New Jersey entered into a settlement agreement under which it will pay $4 million in overtime pay, 
damages, interest, and penalties to more than 700 current and former employees. According to the Department of Labor, the company and its owner failed to pay employees time and one-half the regular hourly rate for time worked in excess of 40 hours a week and failed to keep accurate time and payroll records for approximately seven years.
Employers cannot afford to have ineffective payroll policies. Management 2000, an Indiana PEO, provides payroll services for small businesses as well as HR and employee benefits administration. With help from Management 2000, employers can rest assured that payroll and other human resource issues are properly managed.
More and more employers are moving away from traditional vacation, sick and personal leave policies. Paid Time Off (PTO) policies provide a bank of time employees can use when they must miss work, whatever the reason might be. Fifty-four percent (54%) of employers recently surveyed offer this type of program. Almost three fourths (72%) of these employers also allow employees to carry over unused time to the next year.
Time off with pay is an important component of an employee benefits plan. The HR professionals at Management 2000, a PEO with offices in Indiana and Ohio, provide human resource help to employers who want to design or revise their time off policies. Whether an employer’s HR strategy involves traditional vacation, sick and personal leave policies, or a comprehensive PTO policy, Management 2000’s HR Department can provide the HR support needed to develop an effective time off program.
On April 15, 2010,
H.R. 4581 - Continuing Extension Act of 2010 was passed into law extending the 65% health insurance subsidy for involuntarily terminated employees through May 31st. In addition, those who lost their jobs between March 31st and April 15th (voluntarily or not) are to be notified of the revised program.
With the increase in regulatory provisions, now is a good time to consider outsourcing management of your Employee Benefits Administration. As I have shared in my previous blogs, the regulatory and compliance demands put on small business owners is becoming more time consuming and troublesome.
Let Management 2000 a Top PEO take care of your Group Benefit Plan Administration. We are waiting to serve you and your employees. Improve your ROI by leaving the administration to us, because you have a business to run!
www.management2000.com
As COBRA Administrator's for our employer groups, we keep a watch on the every changing legislation that impacts their Employee Benefit Plans to ensure compliance.
H.R. 4851 - Continuing Extension Act of 2010, was put before the Senate on April 13, 2010. This bill will extend benefits which include COBRA Premium Subsidies for laid off employees from April 1 to April 30, 2010. The Senate is expected to vote today on an amendment that will extend subsidy to May 31. If the amendment is passed by the Senate, it will be sent back to the House. If approved by the House, any COBRA beneficiaries that were laid-off as of April 1, 2010, will need to be extended the subsidy.
On the horizon is
H.R.4213 American Workers, States and Business Relief Act of 2010. This Bill will extend health premium subsidies through December 31, 2010.
Management 2000 is a small business PEO. Let our Employee Benefit Administrators manage this aspect of your operations, so you can run a business.
On my last blog, I highlighted changes that took effect immediately and stretching through 2013. So, what happens in 2014 and beyond?
- State-based insurance exchanges open for business. The exchanges are available to individuals and small businesses with less than 100 full-time employees (seasonal workers are not excluded).
- Annual dollars limits on coverage can not be required as of January 1, 2014.
- Waiting periods are limited to 90 days.
- Preexisting exclusions are prohibited on plans.
- Plans must include 'comprehensive health coverage' that includes the general categories defined in the legislation.
- U.S. citizen and legal residents are required to have health coverage. Those do not enroll in a plan will have to pay a penalty.
- Employers with more than 50 employees that do not offer group coverage and has one employee that received a premium assistance tax credit will be assessed a fee per for every full-time employee. The first 30 employees are not counted.
- Large employers (more than 200 full-time employees) must automatically enroll full-time employees into a plan.
- In 2018, an excise tax will be applied to insurers of employer-sponsored health plans that have a total value that exceeds $10,200 for individual and $27,500 for family coverages.
There are a lot of provisions associated with the new health care reform legislation that will impact your employee benefits plan. Small business PEO's bring to an expertise at both a Employee Benefit Advisor and Employee Benefits Administration capacity. Managepoint is a PEO Indianapolis and Dayton PEO. Contact us today and put us to work for you!
Are you looking to the future of employee medical benefits in 2010 and beyond? The regulatory and compliance demands are only going to increase for your small business. That is why many small business owners are looking to PEOs and their Employee Benefit Advisors for direction. Just to mention a couple of highlights:
Tax years 2010 to 2013 :
- Small businesses tax credits for employers that purchase health insurance based on the number of employees and average annual wages.
- If you provide Medicare Part D subsidy to retirees, it will be eliminated in 2011. You will need to account for the future loss on liability and income statements.
- Group and individual plans required to cover dependents up to age 26.
- Group plans that are not grandfathered, will have to cover pre-existing conditions for children under the age of 19.
- Federal grant program for employers providing wellness programs to their employees.
- Employers must include health benefits on W2s during taxable years after 12/31/2010.
- Changes to Health Savings (HSA) and Flexible Spending (FSA) Accounts.
- Mandate to enroll employees in a new national public long-term care program, unless employee opts out.
For Tax years 2014 and beyond, stay tuned...
If you are like so many small business owners across America, in a time of great economic concern, the impact of
H.R. 3590 - Patriot Protection and Affordable Care Act weighs on your mind. Unless of course you've enlisted the services of a Professional Employer Organization.
Why not allow the experts in Employee Benefits Administration and HR Strategies to implement and manage the multiple regulatory phases and processes related to your business and employees. Benefits administration goes far beyond finding the right plan. Matter of fact, the most time consuming portion is the compliance of government regulations and mandates, along with, the maintenance and support of employee benefits insurance.
Management 2000, is a Indiana PEO Company equipped to bring aid to your business so that you can focus on the future.
According to a white paper published by TriNet in 2009, one of the "Top 5 HR Compliance Concerns for Small Business" is
Current Benefit Regulation and Law Not Being Followed. "Small businesses spend 80% more per employee on federal regulatory compliance than large companies." This is further supported by a "Heath Care Policy Cost Index: Ranking States According to Policies Affecting the Cost of Health Care" conducted by The Small Business & Entrepreneurship Council's (SBEC). Beyond premiums that are traditionally 18% higher, small business owners do not have the infrastructure to manage the multitude of federal and state regulatory requirements associated with Employee Benefits Administration. SBEC states that
"Additional negative factors in the health care equation are government mandates and regulations... But each mandate comes with added costs." Management 2000 is a Small Business PEO with offices located in Dayton, OH and Indiana with an Employee Benefits Management team waiting to assist your small business in remaining complaint with both federal and state requirements. You may not be able to control the many mandates currently facing your business but you can maximize available resources thereby minimizing the overall cost and impact.
In an ever-changing environment, why not bring stability to your business and employees by utilizing the expertise of a Professional Employee Organization.
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