by Devon Bellamy | Jan 31, 2024 | Compliance, Employee Benefits, Human Resources
On January 22, 2024, the Departments of Labor, Health and Human Services, and the Treasury jointly issued a comprehensive set of FAQs concerning the contraceptive coverage mandate specified in the Affordable Care Act (ACA).
This release aims to clarify the mandate’s scope, tackle compliance issues head-on, and introduce an innovative approach for managing the coverage of FDA-approved contraceptive drugs and devices.
This update is pivotal for shedding light on crucial facets of healthcare coverage, which is why we at Launchways took notice.
Understanding the Contraceptive Coverage Mandate
The ACA ensures that most health plans cover specific preventive care services without charging extra. One of these services is contraception. This is outlined in the Health Resources and Services Administration (HRSA) supported guidelines. However, there are exceptions to this rule. For example, employers with religious or moral objections can opt out of providing this coverage due to their beliefs and values.
According to the Departments of Labor, Health and Human Services, and the Treasury (Departments), this mandate requires health plans to cover (without cost-sharing) no less than one type of contraception for each listed in HRSA’s guidelines. Those include:
- Intrauterine devices with progestin
- Injectable contraceptives
- Oral contraceptives-combined pill
- Emergency contraception-levonorgestrel
Also covered are any FDA-approved, -cleared, or -granted products and contraceptive services that a person’s doctor determines as being medically appropriate. These can include newer products, even if outside the HRSA’s guidelines.
When HRSA’s guidelines do not specify how often, how, where, or with what method to provide a particular birth control method (or for similar services not covered in HRSA’s rules), health plans and insurance companies can use fair medical management strategies.
When that occurs, the issuer or plan must make it easy for employees to request exceptions. If an employee’s doctor states a specific birth control method is medically necessary, that process should be transparent, not too difficult, and without additional costs.
Unreasonable Medical Management Strategies
In an effort to control healthcare costs, it’s no surprise that some health plans and insurance companies are imposing “widespread barriers” that make it difficult for people to get birth control. These include unfair medical management strategies.
Examples of these problematic practices include the following:
- Requiring people to try out several different types of products or services to satisfy step-therapy protocols before they agree to cover the one their doctor recommends.
- Applying age limits for a contraceptive product or service that your doctor states is necessary.
- Imposing overly complex administrative requirements to get an exception process.
- Demanding cost sharing for secondary but necessary services vital to the primary service. An example of this is a medically required pregnancy test before specific contraceptive options.
Your New Optional Approach
To tackle compliance issues, the FAQs introduce a fresh alternative for health plans and issuers to adhere to the ACA’s contraceptive coverage mandate. This alternative, known as the therapeutic equivalence approach, offers a new method for ensuring compliance with the law.
With this approach, when health plans or insurance companies use certain methods for managing FDA-approved contraception within a specific category, they’re seen as fair if they do the following:
- It includes all FDA-approved birth control pills and devices in that group (or similar ones) without making employees pay anything extra, except for those with at least one similar option covered without cost-sharing by the plan or insurance company.
- It offers a process for employees to get an exception to cost-sharing for the specific birth control pill or device needed. This is especially important for medical necessities.
If one birth control pill or device is seen as therapeutically equivalent to another, it means they do the same job in the body. This can be verified by checking the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations (Orange Book).
Key Takeaways
With the government’s attention on birth control coverage, it’s a good idea for employers to check if their health plans comply with the ACA. This applies to health plans and insurance companies that aren’t ‘grandfathered’ in. Plans that are grandfathered or self-funded have more flexibility in how they’re set up, but companies should think about how limiting certain services might affect people.
Employers should watch for troublesome medical management strategies designed to limit access, like complex step-therapy rules, age limits, or complicated paperwork.
Since many use step-therapy rules to save money, leaders must consider how they will handle the new guidance. A new therapeutic equivalent approach was introduced. Employers and decision-makers in charge of health plans might want to know a bit more about it if plan members ask. Check out the FAQS ABOUT AFFORDABLE CARE ACT IMPLEMENTATION PART 64 (dol.gov).
by Devon Bellamy | Jan 22, 2024 | Employee Benefits, Human Resources, Leadership
In today’s working world, employee benefits play a crucial role in getting and keeping great employees. It’s not just about the regular paycheck – companies offer extra benefits to stand out and make their workers happy and healthy. These benefit packages help organizations improve employee satisfaction and improve their overall well-being.
Here, Launchways explores the multifaceted aspects of employee benefits. We’ll focus on strategies to save money while fostering a culture of well-being at the workplace.
Understanding Employee Benefits
Employee benefits encompass a wide range of offerings. They are designed to support employees’ financial, physical, and mental health. These can include, but are not limited to, the following:
- Health insurance
- Retirement plans
- Paid time off
Beyond traditional monetary compensation, benefits often include non-monetary perks. They might include gym memberships, employee assistance programs, or professional development opportunities.
These perks contribute to overall job satisfaction and can be seen as an additional form of compensation. Employees get a more comprehensive view of their overall earnings when considering the entire set of wages and benefits.
Financial Wellness Initiatives in Employee Packages
One significant aspect of employee benefits is the emphasis on financial wellness. Many firms now integrate the following into their benefit packages:
- Financial education programs
- Investment options
- Student loan assistance
These initiatives aim to empower employees to make informed financial decisions. They can ultimately contribute to their long-term financial stability.
Strategies for Cost-Efficient Health Benefits
Encouraging healthier lifestyles is crucial for cost-effective health benefits and employee well-being. Employers can use intelligent strategies to make their workforce healthier. That helps save on healthcare costs for both the employees and the company.
Things like preventive care programs, gym memberships, and mental health support can make the team healthier and more productive. By focusing on preventing health issues and supporting overall well-being, companies can create a foundation for long-term benefits for both employees and the organization.
Building Future Wealth
Many workers worry about their future. They fear they may not have enough money to sustain them through their non-working years. Therefore, maximizing employee retirement planning is a critical aspect of employee benefits.
Companies often offer 401(k) plans, pensions, or other retirement savings options. Understanding and actively participating in these plans can significantly impact an employee’s financial future. Less stress about the future results in a higher level of well-being.
Work-Life Balance Boost: Flexible Benefits for Overall Well-being
Achieving a good work-life balance is a priority for many employees. Organizations can enhance overall employee well-being by implementing and leveraging flexible benefits. This involves offering choices in benefits to accommodate diverse needs. These may include:
- Flexible work hours
- Remote work options
- Personalized leave policies
By providing flexibility, companies empower employees. This helps them to achieve a better work-life balance and reduce stress. This, in turn, helps to foster a positive workplace culture that prioritizes individual well-being.
Key Takeaways
At Launchways, we take employee well-being seriously. When employees feel supported and valued through comprehensive benefits, it positively impacts their engagement and productivity. A satisfied and engaged workforce tends to be more productive. That indirectly affects the overall value of the wages and benefits package.
Here are the key points to remember:
- Employee benefits are a vital component of a competitive compensation package.
- Financial wellness initiatives contribute to the long-term financial stability of employees.
- Cost-efficient health benefits strategies can result in a healthier and more productive workforce.
- Maximizing retirement plans is crucial for building future wealth and financial security.
- Flexible benefits play a key role in promoting work-life balance and overall employee well-being.
In conclusion, employee benefits extend beyond mere perks. They are strategic tools that contribute to employee satisfaction and retention. They also contribute to the company’s overall success.
Organizations can create a desirable workplace culture by understanding, optimizing, and effectively communicating these benefits. It will not only attract top talent but also nurture its employees’ well-being and financial success.
by Devon Bellamy | Nov 28, 2023 | Employee Benefits, Employee Recruitment, Mental Health in the Workplace
The world of employee benefits is transforming significantly due to changing work dynamics and post-pandemic employee needs. There’s no question that COVID-19 reshaped the way we work. In addition to changing what day-to-day work life looks like, the pandemic shone a spotlight on adaptable benefits, particularly ‘Time Off.’ This could be good news.
Although many companies embrace the changes that occurred then, such as remote work and flexible schedules, others pine for a return to “normalcy.” Some are adopting a middle-ground “hybrid” approach as a sort of compromise.
As businesses navigate the changing tides, understanding the importance of time off is crucial. It goes a long way toward ensuring employee well-being, productivity, and satisfaction.
Here at Launchways, we take a closer look at this fascinating trend.
Changing Priorities in Employee Benefit Trends
The pandemic reshaped the understanding of traditional employee benefits, highlighting the emergence of ‘Time Off’ as a critical aspect. In a landscape fluctuating between remote, hybrid, and office setups, recognizing the value of time away from work has become essential.
It’s more than just vacations; it’s about meeting the evolving needs of a workforce seeking flexibility, mental health support, and work-life balance.
Addressing Post-Pandemic Employee Needs
Employees’ needs have transformed post-pandemic, with mental health concerns rising sharply alongside the demand for flexible work arrangements. These concerns significantly affect workforce productivity, with an estimated global loss of 12 billion workdays annually to depression and anxiety, costing about $1 trillion.
Both companies and workers look for answers. Unfortunately, many are unaware of their options, and many more need help navigating them.
Simplifying Time-Off Laws and Regulations
Navigating paid leave laws like Paid Family Leave (PFL) alongside existing ones such as the Family and Medical Leave Act (FMLA) has become more complex. Changes in state regulations, like those in Oregon and Colorado, add confusion.
Managing Family and Medical Leave (FML) can be tricky, requiring a knowledgeable HR team to ensure compliance and guide employees through the process.
Prioritizing Employee Understanding and Accessibility
Educating employees about their rights under FMLA is crucial. When employees know how to request leave and what documents are required, they’re more likely to seek help when needed. Ensuring job security upon return and providing a simple process to request FMLA, integrated with other benefits, is essential for consistency and ease.
Offering ‘Time Off’ as a Premier Benefit
‘Time Off’ has expanded its role in employee benefits, directly impacting employee satisfaction, retention, and overall well-being. To ensure more accessible access to FML (Family and Medical Leave), simplifying the request process by integrating it with other employee benefits, like 401K, payroll deductions, and Employee Assistance Programs (EAP), proves effective. A unified platform or system that merges FML with these benefits streamlines accessibility.
Employing standardized software prevents inconsistencies, which is vital for large employers managing different regional accesses, promoting uniformity in FML availability. This approach eliminates barriers and enhances access to crucial leave benefits.
Offering ample vacation time isn’t just a perk; it’s an investment in workforce health and productivity. But how can your company effectively manage employee time off in these complex times?
Strategies for Effective Time-Off Management
Adapting HR strategies is vital to meet evolving workforce preferences. Customizable leave policies, automation, and technology-driven solutions streamline leave management, optimizing workforce productivity.
HR’s Responsibility in Effective Policy Implementation
HR leaders are crucial in aligning policies with employee needs and business goals. Educating employees, ensuring compliance, and fostering an equitable work environment are essential components.
Prioritizing ‘Time Off’ for a Thriving Workforce
Ample leave reduces burnout, enhances mental health, and boosts employee satisfaction, positively impacting organizational performance.
Challenges and Solutions in Embracing ‘Time Off’
Managing time off amid changing laws requires clear guidelines and simplified processes, ensuring employees understand their rights.
Key Takeaways
‘Time Off’ has evolved into a cornerstone of modern employee benefits. Recognizing its impact on well-being, productivity, and organizational success is crucial. Businesses must embrace and prioritize this evolving benefit to cultivate a resilient workforce in the post-pandemic era.
- Prioritize understanding employee needs for flexibility and mental health support.
- Educate employees about FMLA rights for easy access to support when needed.
- Integrate FMLA request processes with other benefits for consistency and simplicity.
- Recognize the strategic value of ‘Time Off’ in fostering a healthier, more productive workforce.
As time passes, it becomes increasingly evident that change is here to stay. The “new normal” requires a degree of flexibility. We at Launchways intend to remain up-to-date and will ensure our clients remain informed.
by Devon Bellamy | Nov 13, 2023 | Employee Benefits, Human Resources, Open Enrollment
It’s that time of the year again – open enrollment. Sure, for “Zillennials” (the micro-generation that falls between Generation Z and Millennials), talking about benefits and paperwork might not be the most exciting thing.
Trust me, though; getting it right can make a difference. Let’s dive into some key strategies for this age group to navigate open enrollment success.
Understanding Zillennial Perspectives on Open Enrollment
Zillennials tend to want things quick, digital, and hassle-free. The days of lengthy paperwork and confusing benefit structures are a thing of the past. Today’s new employees value benefits that align with their lifestyles and aspirations. So, for open enrollment success for Zillennials, let’s keep it streamlined and relevant.
Plus, let’s talk tech. Zillennials grew up in the digital era, and they’re not afraid to embrace it. Automated solutions and user-friendly interfaces are their thing. When choosing benefits, they appreciate platforms that make the process straightforward, allowing them to make informed decisions without the headache.
Open Enrollment Challenges for Zillennials
One of the challenges often faced today is information overload. So many options and so many details – it can get overwhelming.
Plus, have you ever tried to enroll in benefits using a clunky interface? It’s like trying to order food from a confusing menu. When it’s complicated, they’re out.
Clear communication is critical. Employers, break down open enrollment for Zillenials. Simplify the jargon and highlight what matters most. Trust me, they’ll appreciate it. Zillennials thrive on simplicity.
User-friendly interfaces also make the process smoother, ensuring they can get in, get their benefits sorted, and get back to what they do best – living their lives.
Leveraging Automation for Open Enrollment Success
Let’s talk about the game-changer – automation. Automated HR services are like having a personal guide through the benefits maze. They streamline the process, provide real-time assistance, and ensure Zillennials don’t miss opportunities. Plus, these servives fit perfectly into their fast-paced lives.
Automation isn’t just a buzzword; it’s a friend that simplifies complex tasks. Personalize the experience, highlight the options that align with their needs, and let them make decisions at their own pace. It’s all about empowerment.
A Step-by-Step Guide for Zillennials
Step 1: Know What You Need
Before diving into benefits, understand your needs. Are you focused on health coverage, planning for the future, or looking for perks that fit your lifestyle? Knowing this sets the stage for a successful open enrollment experience.
Step 2: Explore Your Options
Don’t settle for the default. Explore the available benefits. There might be hidden gems like wellness programs, flexible spending accounts, or lifestyle perks. Choose what resonates with you and adds value to your life.
Step 3: Seek Guidance When Needed
If you’re feeling lost, don’t hesitate to seek guidance. Reach out to your HR department, use available resources, or leverage automated assistance. Remember, open enrollment success can feel like a significant moment – make the most of it.
The Takeaway
To ensure open enrollment success, choosing wisely is the key for Zillennials. Keep instructions simple, embrace technology, and prioritize clear communication.
In the world of information overload, clarity is everything. When communicating benefits, keep it concise. Break down the details into digestible chunks. Remember, Zillennials are more likely to engage with content that respects their time.
Use contemporary tools. From benefit calculators to decision-support tools, nteractive tools make the process engaging and informative. During open enrollment, guide Zillennials through the options interactively. It’s like having a conversation, minus the confusion.
Tailoring open enrollment for Zillennials isn’t just about the present; it’s an investment in the future. Companies that understand their needs today build a foundation for lasting employee satisfaction, loyalty, and productivity.With the right benefits consultant by your side, open enrollment success for this demographic is not just a goal – it’s a reality. Let’s make benefits work for us, not the other way around.
by Devon Bellamy | Oct 23, 2023 | Employee Benefits, Open Enrollment
Open enrollment season has arrived. It’s that time of year when employees have the opportunity to select benefits that will shape their financial future. In today’s economic landscape, marked by record-high inflation, the significance of financial and healthcare benefits cannot be overstated. Many employees are feeling the pinch as out-of-pocket healthcare costs rise. They face increasing financial burdens.
As employers, you have a crucial role in helping your workforce make informed choices during open enrollment. In your arsenal, you have two powerful tools: the HSA and the FSA.
Understanding these options can significantly impact your employees’ financial well-being and satisfaction. Here, we’ll explore what an HSA and an FSA are, how they differ, and how you can assist employees in selecting the benefits that best suit their needs. For more information, you can contact us at Launchways.
What Is an HSA?
A Health Savings Account, or HSA, is an employee-owned account where all funds belong to the employee. The critical point is that even if employees change jobs or retire, the HSA and its funds remain in their possession.
Both employees and employers can contribute to an HSA, and contributions are considered pre-tax. For 2024, HSA contribution limits will increase to an all-time high. This makes it an attractive option for saving money. Employees can adjust their contribution amount throughout the year. Plus, when necessary, they can forego funding the account initially and choose to contribute later.
One of the distinguishing features of an HSA is its potential for saving money for healthcare expenses in retirement. Additionally, employees can invest a portion of their unused HSA funds. This makes it an attractive option for those looking to maximize their savings and investments.
What Is an FSA?
A Flexible Spending Account, or FSA, differs in some key ways. The employer owns an FSA. Any unused funds will be forfeited back to the employer if an employee quits or retires. This can be a significant drawback compared to the HSA, which allows employees to keep their funds even after they leave their jobs.
Both employees and employers can contribute to an FSA. Contributions are made through pre-tax payroll deductions. FSA contribution limits typically have a lower cap compared to HSAs.
Helping Employees Choose the Best Benefits
As an employer, you can play a crucial role in guiding employees through the open enrollment process. Here are some key considerations to help employees make informed decisions:
- Account Ownership and Contributions: Many employees may not even know which type of account they are enrolled in. Help them understand the key differences.
- Savings Potential: Both FSAs and HSAs allow employees to reduce their taxable income. They do this by contributing pre-tax dollars to pay for eligible healthcare expenses. Highlight the savings potential of both accounts.
- Expanded Eligibility Rules: Help employees understand the eligibility rules for FSAs and HSAs. Ensure they are aware that many wellness items and everyday expenses can be purchased with tax-free funds. Encourage employees to think beyond traditional healthcare expenses. They can use their accounts for items like over-the-counter medication and high-tech health devices.
- Deadline or Not: Clearly explain the crucial difference between an FSA and an HSA when it comes to the deadline for spending. FSAs have an annual deadline, while HSA funds can roll over from year to year.
In Conclusion
Open enrollment allows employees to make choices that impact their financial well-being. As an employer, your role is to provide clear information and guidance. You can empower your employees to make informed decisions that will benefit them throughout the coming year.
By understanding the differences between HSAs and FSAs, you can help employees find the right fit. One of the critical distinctions between an HSA and an FSA is the rollover of funds.
While HSA funds can roll over from year to year, ensuring that employees don’t lose their savings, FSA funds have a deadline for spending. This deadline is December 31 for most organizations, although it can vary based on the plan year.
Furthermore, it’s essential to clearly communicate any FSA deadline extensions. A partial rollover of unused funds, a grace period extending 2.5 months after the plan year ends, or a run-out period can make a difference.
To further ensure a smooth and satisfactory open enrollment process, contact Launchways. We offer solutions.
