Benefits Trends in U.S. Organizations

Posted by admin on October 11, 2010  |   No Comments »

An overview of the latest findings from the SHRM 2010 Employee Benefits Research Report

  • Most HR professionals at U.S. organizations report that benefit offerings at their organizations were affected by the 2007-2009 global recession.
  • While most benefits remained relatively stable since last year, when compared with five years ago, there has been a clear downward trend in overall benefits offerings.
  • Almost all organizations review their employee benefits offerings at least annually. Future responses to economic and legislative trends could therefore become apparent within a year of a major change such as the health care legislation or any signifi cant shifts in the economy.

Read the Report Here

New Model Consulting Web Presence

Posted by admin on October 11, 2010  |   No Comments »

Welcome to our new website. Browse the site to understand how Model Consulting can deliver outstanding benefits and superior service. Check back often or sign up via RSS feed for the latest HR benefits news and request a guest speaker for your next event.

St. Mary Realizes Substantial ROI Cost Savings

Posted by admin on October 22, 2010  |   No Comments »

Although the WellNow program has only been in place for two years, St. Mary Medical Center, a 2,700 employee hospital located north of Philadelphia, has recognized savings approaching $4 million against their previously forecasted costs. Their investment of $300,000 has delivered real ROI.

The program was implemented with a five year plan for reducing cost for the hospital. After only two years, employee medical claim trends were reduced to 2% (after averaging increases of over 22% in the prior two years). Medical claims trend was halved and 92% of the highest risk employees reduced their risk between evaluation periods. Additionally, 60% of workmen’s compensation and disability claims are due to chronic illness. WellNow will help mitigate chronic illness costs through early detection, and proactive disease management.

EBSA Release Updated CHIP Model Notice

Posted by admin on October 31, 2010  |   No Comments »

The U.S. Employee Benefit Security Administration has released an updated CHIP model notice.

CHIP stands for the Children’s Health Insurance Program. Additional information on this program is available in a fact sheet and on the Web page for the CHIP Working Group

Future Bright for Health Savings Accounts

Posted by admin on October 24, 2010  |   No Comments »

One sign that health savings accounts (HSAs) promote effective consumerism: an employee who bid out his colonoscopy and then chose to drive 60 miles to save $500 on the procedure.

That example sums up the value of adopting consumer-directed health plans (CDHPs), such as HSAs or health reimbursement arrangements (HRAs), according to presenters at the 24th National Conference on Health, Productivity & Human Capital, on Sept. 15, 2010, in Washington, D.C., an event sponsored by the not-for-profit National Business Group on Health. Continue Reading…

Round-up of Recent Guidance on Health Care Reform

Posted by admin on October 15, 2010  |   No Comments »

In the last several weeks, the agencies charged with issuing guidance under the Patient Protection and Affordable Care Act (PPACA) have issued a number of additional items to clarify previously issued rules or to implement further procedures or rules under PPACA. The new items, which are described here:

Legal Alert, October 15, 2010

Employers Subject to Harsh Penalties if Insured Group Health Plan Favors Highly Paid Employees

Posted by admin on October 4, 2010  |   No Comments »

Mayer Brown LLP
Debra Hoffman and Wayne R. Luepker

Notice 2010-63 (the “Notice”), released by the US Internal Revenue Service on September 20, 2010, addresses the application of nondiscrimination requirements to insured group health plans as provided by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act (the “Act”).

Prior to the Act, self-insured group health plans were subject to nondiscrimination rules, but insured plans generally were not. Although the stated purpose of the Notice is to solicit comments regarding the application of the Act to insured group health plans, the Act and the Notice raise substantive issues regarding application of the nondiscrimination rules to insured arrangements. Continue Reading…

No tax on health care benefits – until 2018

Posted by admin on October 13, 2010  |   No Comments »

There have apparently been concerns among many employees that passage of health care reform would mean that they would have to pay tax on the value of health benefits they receive from their employers. One source of this rumor was probably the fact that there is now a space for employers to include, if they wish, the cost of health benefits on the 2011 W-2 Form, which the IRS has just released. Inclusion of the information will be mandatory starting in 2012. Continue Reading…