Benefit News & Trends
With all the legislative changes affecting employee benefit programs,
it is nearly impossible for business owners of small and medium sized
companies or organizations to remain current while maintaining their
daily operational duties.
Benefit Resources, Inc. is the number one resource for keeping you up-to-date on the latest regulations, best practices, communication tools, as well as new products.
Recent articles of interest below:
Spring 2007: Views
Health Care Costs still too high?
Maybe your company can be doing more to lower them. Many firms are taking action, cutting annual increases to about 2.5%, a third of what most employers face this year and next.
There is no magic bullet for employers. But small steps can yield big results.
Basic principles to keep in mind:
1) Prevention is crucial. Be aggressive in persuading employees to get regular checkups and enroll in disease management programs to lower the odds of expensive complications.
2) Give workers a stake in lowering costs. Financial incentives are a smart investment if they reduce the number of costly illnesses.
3) Pay attention to those most at risk, such as employees who smoke or are overweight.
4) And make sure workers have the tools they need, including access to information. If you haven’t yet considered Health Risk Assessments for your employees, now is a good time. Call us for a referral to Midland Health.
New Federal HSA Rules make Individual High-Deductible Health Plans Easier to Sell
Major features of the new rules include:
1. A one time transfer from an Individual Retirement Account (IRA) to an HSA is permitted.
2. A one time rollover from a Flexible Spending Account (FSA) and/or Health Reimbursement Arrangement (HRA) to an HSA is permitted.
3.The Health FSA grace period no longer impacts HSA eligibility, based on certain conditions.
4. The maximum annual contribution limitations are no longer based on the lesser of the HDHP deductible or IRS limit.
5. Contributions are no longer required to be pro-rated when an individual enrolls in an HDHP mid-year under certain conditions.
6. Cost of living adjustments will be based on the consumer price index and published by June 1 of the prior year the adjustments are effective.
7. For HSA account-holders on a group plan, when employers contribute to an employee’s HSA (via the employee benefits program), they may make greater contributions outside of a Section
125 cafeteria plan for non-highly compensated employees without violating HSA comparability rule.