The problem with high-deductible health plans

By Jared Bilski

With the bulk of employers turning to high-deductible health plans (HDHPs) and banking on employees becoming better overall consumers, the findings in this report can be very disheartening for HR pros.

According to a recent study by the American Institutes for Research (AIR), 42% of individuals are “not likely” or just “somewhat likely” to review a healthcare plan’s details before signing up for coverage. What’s worse, only 20% of health plan participants could correctly calculate how much they owe for a routine doctor’s visit, the AIR study found.

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EEOC’s third wellness lawsuit focuses on ADA and GINA: What HR should know

By Jared Bilski

Bad things, such as celebrity deaths and high-profile federal lawsuits, tend to come in threes. Recently, the Equal Employment Opportunity Commission (EEOC) completed its trifecta by filing its third wellness-related lawsuit of 2014.

Honeywell International, Inc., is the latest organization to find itself on the wrong end of an EEOC lawsuit.

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Tip Tuesday! IRS Announces Other Benefit Limitations for 2015

By Larry Grudzien Attorney-At-Law

The Internal Revenue Service announced  in Revenue Procedure 2014-61  the annual inflation adjustments for more than 40 tax provisions for 2015, including the tax rate schedules, and other tax changes. This Revenue Procedure provides details about these annual adjustments. 

  

There are several benefit limitations for 2015 included: 

* The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) is increased to $2,550.

  

*The amount for the adoption credit or the amount excluded for adoption assistance allowed for an adoption of a child with special needs is $13,400.

  

*The dollar amount for employee health Insurance expense of small employers is $25,480.

  

*The monthly limitation for qualified transportation fringe benefit regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $130. The monthly limitation regarding the fringe benefit exclusion amount for qualified parking is $250.

  

*The limitations regarding eligible long-term care premiums includible in the term "medical care," are as follows:

  

Attained Age Before the Close of the Taxable Year            Limitation on Premiums

  

40 or less                                                                                              $380

More than 40 but not more than 50                                                      $710

More than 50 but not more than 60                                                   $1,430

More than 60 but not more than 70                                                   $3,800

More than 70                                                                                     $4,750

.

*For Medical Savings Accounts, the term "high deductible health plan"  means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,200 and not more than $3,300, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,450.

  

*For Medical Savings Accounts, the term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $4,450 and not more than $6,650, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $8,150. 

For a copy of Revenue Ruling 2014-61, click here.

Read more from Larry here.

6-step plan for managers to turn around angry employees

By Tim Gould

Let’s face it. Working isn’t always a day at the beach. People get frustrated and angry — and frustrated employees aren’t productive. So HR expert Mel Kleiman has come up a few ways for your managers to bring angry employees back into the fold.  

According to Kleiman, who runs the consulting firm Humetrics, angry or frustrated employees have three choices: They can speak up, let things simmer inside, or they can leave.

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How Wellness Programs Affect Affordability and Minimum Value Calculations

By Linda Rowings

We field a lot of questions from employers about wellness programs and how they comply with PPACA.  Here are two of the most common ones from UBA’s “Frequently Asked Questions (FAQ) About Wellness Programs’ Legal Requirements”:
Q:      How does a wellness program affect affordability calculations?

A:      The proposed regulations provide that when deciding if the employee’s share of the premium is affordable (less than 9.5% of the employee’s safe harbor income), the employer may not consider wellness incentives or surcharges except for a non-smoking incentive. In other words, the premium for non-smokers will be used to determine affordability (even for smokers). Any other type of wellness incentive must be disregarded.

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Email’s not good enough for FMLA notices either, court rules

By Christian Schappel

Courts don’t trust the U.S. Post Office or Gmail, Yahoo Mail, AOL Mail, or any other email service to deliver your Family Medical Leave Act (FMLA) notices to employees. So what’s an employer to do?

Use certified mail or some other form of correspondence with “verifiable receipt” — or deliver the notice in person and get the employee to sign a document stating he or she received it.
Anything short of that, and your hopes of dismissing an FMLA notice claim short of it going to trial are next to nil thanks to recent court rulings.

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Tip Tuesday! 22 PPACA provisions small businesses need to know

By Alson Martin

Changes to health reform laws could present a bit of challenge for small businesses. Don't be caught unprepared before open enrollment begins in November.

1. Which employers are eligible for the tax credit for the purchase of health insurance available in 2010 and thereafter?

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