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1/25/2020 0 Comments

Understanding the Impact of Healthcare Reimbursement Accounts and Health Savings Accounts

For any business, investing in employee benefits is crucial. With benefits becoming a differentiating factor for many employees, companies that offer the most get to attract the cream of the crop. With the above mentioned, health benefits such as Healthcare Reimbursement Accounts – HRAs and Health Savings Accounts – HSAs are some of the best ones.

Even employers recognize that they are better than group health insurance policies, which can have restrictions imposed by the provider, have higher costs, and require active participation from employees. To simplify things, introducing HRAs and HSAs is a great idea. Both accounts also encourage consumerism from employees by helping them focus on their healthcare costs and understand how they can be more prudent regarding their healthcare.

Additionally, both HRAs and HSAs encourage contribution since all unused funds are carried forward for the next year, allowing them to start the year off with a small nest egg for their health care.

What are Healthcare Reimbursement Accounts – HRAs?

​Despite the title, HRAs are not physical accounts where funds will accumulate. Instead, they can have a classification as notional accounts. These are used by employers to actively reimburse their employees with their medical expenses and health insurance. Employers also pay employees after all costs have been incurred.

Advantages You Can Get with HRAs

HRAs offer certain advantages that employers find to be better for their business. The following are the major ones in the following categories:

 Control – Employers get more control on HRAs since they are the only ones who contribute to it. The coverage of medical expenses with this account will only be made to the pre-defined extent. Anything exceeding this will not be covered.

Flexibility – Usage of this account is also flexible, and employers can make contributions for single or family-based coverage. In 2019, contributions for single employees come up to $5,150, whereas families are eligible for $10,450, but these can vary based on the status of the family. Qualifying employees should meet at least the minimum essential coverage requirements. HSAs can also be used with FSA but have a few restrictions on their usage.

Simplicity – Getting coverage through HRAs is easier. Since funds are available in a company account, the employees only need to submit proof of payment, such as receipts and receive the funds. All rules for the HRAs are defined by the company’s plan and guidelines from the IRS.

Given these advantages, it is easy to see why most employers prefer to use HRAs for their employees.

What are Health Savings Accounts – HSAs?

​Unlike HRAs, HSAs are financial accounts that are established with any banking institution of the employee’s choice. Individuals need to establish these accounts, but they can only be used for medical expenses that qualify for it. Additionally, the HSA has to be linked with a health insurance plan (high deductible). The good news here is that anyone, employers and employees, can contribute to this account.

Advantages You Can Get with HSAs
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HSAs are designed to be advantageous for all parties involved. The following are the significant advantages in the following categories:

Control – Unlike HRAs, with HSAs, the employer pays the employees regularly on intervals, as defined by the company. This payment is made whether there are any medical expenses incurred or not. Funds will also go directly into the employee’s HSA, and employees can take these funds with them when they leave the company. Additionally, contributions can be made by employers, employees and third parties as well.

 Flexibility – HSAs are incredibly flexible and have uniformity regarding coverage from employers. To qualify for HSAs, employees need to have high deductible plans which meet the requirements of the HSA. In 2019, contributions for single employees came up to $3,500, whereas families are eligible for $7,000 only. While HSAs can occur along with FSA, there are a lot of restrictions and usability is limited at best.

Simplicity – Setting up an HSA is the responsibility of the employee, which can mar the simplicity in usage. Employees need to open up the account in a banking institution or facility, which also has a separate policy with an insurance company. Employees are solely responsible for managing the account and submitting all expenses and proof for payments. IRS establishes all rules and regulations and applies them to HSAs.

The advantages offered by HSAs make them very beneficial for employers and employees, which is why they are often preferred.


​Which One is Better?

When looked at comparatively, both HSAs and HRAs are beneficial and have their pros and cons in usage. Most places tend to use HRAs since they have more control over the whole process. On the other hand, having HSAs is more attractive to some employees since they can contribute to the account as well.

On the other hand, qualifying for HSAs can be difficult for employees as compared to qualifying for HRAs. Additionally, both these accounts are tax-free in different ways. Contributions for HSAs are deducted from the person’s tax returns. Contributions made for HRAs are usually excluded from the wages of the employees.


Using Both – HRAs and HSAs for Your Employees


Confused about which one should be used? Don’t be. Many employers and employees often benefit from using a combination of both HSAs and HRAs. Additionally, employers can give their employees better benefits by offering them coverage in this manner. Encouraging employee consumerism in this area is also beneficial for businesses since employees are more invested in their healthcare. Introducing plans like these are not only good for their wellbeing but can also improve their engagement in the workplace. Keep in mind that while employers can use HRAs and HSAs together t o offer the best value to their employees, not all employees can do so with ease. They need to ensure that they meet all the qualifying requirements as defined by HSAs and HRAs. These can differ so make sure that your employees are aware of this factor.

If you have any questions- contact us today! 
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1/20/2020 0 Comments

Meditation at Work Can Boost Your Productivity Levels

Imagine being able to rewire your brain’s functionality whenever you feel a burnout coming on. Meditation is not magic; it simply stems from your ability to practice mindfulness and switching your day off temporarily and hitting the refresh button. Most employees and leaders complain of stress and impending pressure to perform, and many workplaces have adopted meditation in their daily routine to beat the grind. Read on to see why!

Neurogenesis:
Your brain’s ability to create newer and healthier neurons is facilitated by a few minutes of meditation daily. The brain’s center of memory, intelligence and learning are boosted and your ability to perform multiplies instantly!
 
How so?
The simple act of meditation strengthens the brain’s most used pathways and engages the least used ones too. Who wouldn’t want an instant upgrade? Check out this video to see more of what neuroscientists found out about the love story between meditation and the brain. A stronger brain means a stronger you!

Meditate Together to Stay Together:
Some studies show that meditating in the workplace increases employee engagement, satisfaction, and teamwork. Researchers have also observed increased creativity and improved problem-solving skills. Workplace bonds create loyalty and fraternity, and meditation sessions during work hours seem to foster that; a happy team ensures employee retention and a healthier social environment. Win-win for all!

Hocus, Pocus, Focus!
You have several post-its with “to-do” lists pinned on your desk, a file staring right at you, and 10 tabs open in your head – crazy, isn’t it? Stress and anxiety tax our ability to focus and lower energy levels. Meditation helps employees in controlling their response to stress by volumizing the brain’s cortex which assigns attentional resources – meaning you’re going to be better at ignoring stressful thoughts and attending better to your work!

Various workplaces are investing in their employees’ mental health. Some have hired performance coaches, introduced “personal days” off, and even renovated their architecture. Since we care, we won’t leave you hanging, check out this article to quickly meditate at your desk and have a productive day!
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1/16/2020 1 Comment

ARE YOU COVERED FOR DATA BREACHES?

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Data breaches cause companies to lose money and customers. A digital data breach can significantly impact your business finances, with incidents costing an average of $3.9 million, according to 2019 research by IBM.  Exposing sensitive customer or client information can tarnish your business reputation and cause the public to lose trust in your company. In fact, a 2018 Gemalto report found that two-thirds of customers are willing to abandon a business that compromises their sensitive or financial information because of a data loss incident. Managing electronic data liability and risks entails a mix of IT security best practices, employee training, and the right insurance coverage. 

General Liability Insurance vs. Cyber Liability Insurance

​To assess your electronic data insurance needs, it’s important to understand the difference between general liability and cyber liability insurance and what each policy covers.

General liability insurance: is a necessity for most companies and protects against lawsuits stemming from physical injury to a third party, damage to someone else's property, or advertising and copyright infringement claims. When writing policies, insurance carriers make a distinction between tangible property and digital property because each comes with its own risks. Many general liability policies only cover tangible property and exclude information stored, created, used, or transmitted digitally. Some policyholders may get confused because their general liability insurance has a digital data protection endorsement, but this typically only covers data loss caused by physical damage, such as an employee breaking a server.

Cyber liability insurance: Companies that store or transmit digital information will likely need to purchase cyber liability insurance to respond to a data breach and protect themselves from related lawsuits. There are two different types of electronic data insurance coverage with a cyber policy:

First-party response: This version of cyber liability insurance pays for notifying affected customers that their data has been compromised and providing them with credit and identity monitoring services. It also covers PR and advertising campaigns to help rebuild the reputation of your business. 
Third-party defense: Third-party electronic data insurance protects your business if customers sue you because their information was exposed in a data breach.

Note that states have different guidelines and requirements for managing data breaches, so check your local laws before you finalize a policy.

Tips for Buying Cyber Liability Insurance

When considering cyber liability insurance, there are a few things you can do to ensure that you have adequate protection. Assess your industry risks, employee count, and the amount of electronic information you handle will determine your risks and data insurance needs. Nearly all IT and e-commerce businesses should carry cyber liability insurance, but healthcare organizations actually stand to lose the most from a data breach. IBM puts the cost of an average incident in the healthcare industry at nearly $6.5 million. Healthcare practitioners can greatly reduce their digital data risks by complying with the HIPAA security rule.

Put coverage before cost since a data breach can cost a business millions of dollars, resist the urge to make decisions solely based on price when purchasing cyber liability insurance. Buying a policy with a lower deductible might save money in the short term, but if a data loss disaster strikes, you could end up paying more out of pocket to respond to it or defend yourself in court.

​Review and ask questions about your coverage.Take time to review your cyber liability insurance policy, and ask your agent for clarification about any unclear language. 

Click here to contact one of our representatives today! 

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