Financial Safety Nets for Employees
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Money is a top stressor for employees, and a looming recession has reinforced that fact. Employers are uniquely poised to help support employees with much-desired financial guidance and resources. When employees experience less financial stress, employers may see greater employee productivity and morale and lower absenteeism. Those positive feelings can also translate into a strong employee retention rate and help employers attract top talent. Economic recovery will take some time, but voluntary benefits could help decrease employees’ financial stress.
More employers are looking for ways to help employees save for unexpected financial emergencies. This article explores ways that employers can offer financial safety nets for employees.
Employer Considerations
The reality is that many Americans worry about covering living expenses and unexpected expenses. In fact, 57% of U.S. adults are unable to afford a $1,000 emergency expense, according to Bankrate’s Annual Emergency Fund Report. Lacking sufficient funds to pay for a major medical emergency or other urgent needs can jeopardize an employee’s food and housing security for several years.
A financial safety net will mean different things to employees, depending on their age and personal financial goals. The following common employee benefits can offer valuable financial protection:
- Life insurance—Employer-sponsored coverage can be offered in a variety of ways. Employers may offer a term policy, permanent coverage or both. Though life insurance is an important asset for future financial security, many employees don’t realize its importance. Teaching employees about the value of life insurance may increase loyalty to the organization as they better appreciate this benefit.
- Disability insurance—Disability insurance has become an increasingly valuable part of a comprehensive employee benefits package and can fill gaps in financial protection offered by other programs, such as Social Security. While employees appreciate the peace of mind they receive as their income replacement benefits are being paid, employers can use the resources offered by insurers to manage time and productivity losses and find the most effective ways to return employees to work.
- Retirement accounts—Whether employees are close to retirement or have decades left in the workforce, saving for retirement is a key component of their financial security. Offering a 401(k) account or other retirement benefits as part of employee benefits packages can increase employee loyalty, especially if employers offer a contribution match. Good retirement benefits are also a great recruitment and retention tool. However, benefits are only helpful if employees are aware of and understand them.
- Financial planning or coaching—Employee assistance programs support workers facing various challenges, including financial ones, by offering resources and counseling. Employees with access to financial education and tools are more likely to increase their savings and make progress toward their financial goals. Furthermore, employees with a plan or access to help are less likely to feel stressed or overwhelmed by their financial situations.
- Emergency savings fund—An emergency savings fund helps offer peace of mind and resources employees may use instead of their retirement savings or other accounts. Employers can offer guidance for starting an emergency savings fund regardless of how much employees may have for an initial investment. Many employees may believe they don’t have enough money to build one, but employer-provided education and guidance can help them understand that even a small amount of cash can help start an emergency savings fund. An alternative approach for employers may be to offer an employer-sponsored emergency savings account alongside traditional benefits. Although an emergency savings account is a top benefit wish of many employees, very few employers offer them. Still, by helping employees build emergency savings funds, employers can boost their workers’ confidence in navigating finances and increase happiness in the workplace.
- Student loan debt assistance—Student loan debt weighs heavy on many employees in the United States, but some employers are trying to help by offering student loan debt assistance. Employers can offer various forms of support beyond loan repayments, such as student loan payment counseling, third-party low-interest or interest-free educational loans, debt consolidation, and refinancing services.
Summary
Ultimately, having a financial safety net can translate into peace of mind for employees. As more employers consider ways to help employees save for unexpected financial emergencies, they can offer employee benefits that help workers achieve their financial goals and save more of their hard-earned money for both expected and unexpected expenses.
Contact RISQ Consulting for additional resources.
- Published in Blog
Medicare Mayhem – How to Navigate Medicare in Alaska
By Alison Nelson, Employee Benefits Account Manager
“I’m turning 65 and need to learn more about Medicare. What do I do?” This is a common and very valid question that I’m often asked. Medicare is daunting, and with 75% of Medicare beneficiaries worrying about affording costs beyond premiums, you’re going to want to understand all of your options.
I want to start by noting that I am not a Medicare expert. However, before you scroll away, I can provide some tools and resources that could be helpful in your Medicare journey.
A great first resource is medicare.gov. I know, I know. The government’s Medicare website for info on Medicare… revolutionary! But it truly is a great and underutilized site that breaks down the ins and outs of Medicare. In summary, there are four main plans with additional coverage available:
- Medicare Part A: Hospital Coverage
- This is often free and is automatic if/once enrolled in social security.
- Medicare Part B: Provider Coverage
- $170.10/month (or higher depending on income).
- We see most people waive Part B as long as they are enrolled in a qualified employer-sponsored health plan.
- Part B has no out-of-pocket maximum, so you would be responsible for 20% of expenses with no cap – this can add-up quickly. If employer coverage is terminated, we often recommend enrolling in a Medigap or Medicare Supplemental policy. This puts a “stopgap” or out-of-pocket limit to expenses. If this coverage is obtained following the loss or termination of qualified coverage, you can likely forego underwriting. If Medigap is waived at initial eligibility and obtained later, underwriting is likely – meaning if there are pre-existing conditions, you could be denied coverage.
- Medicare Part C: Medicare Advantage
- Part C is offered by Medicare-approved private companies that must follow rules set by Medicare. Medicare Advantage Plans include Part A and B coverage, and many include Part D drug coverage as well. However, it’s important to note that Part C is not available in Alaska.
- Medicare Part D: Prescription Coverage
- The costs vary by plan
- Medigap or Medicare Supplemental Coverage
- You are able to obtain supplemental coverage if enrolled in Part A & B.
- RISQ Consulting has a dedicated individual who is appointed by Medicare and is able to assist with Premera Medicare Supplemental Plans. There are no fees for her service.
- An additional popular Medicare Supplemental plan is with United Health Care through AARP.
Another resource, and one of the most comprehensive and digestible guides, is the Medicare & You 2023 Guide.
However, my number one recommendation is to reach out to the amazing folks at the Alaska Medicare Information Office! This is a free service for Alaskans by certified Medicare professionals. These pros are able to provide personalized recommendations and can walk you through the complexities of Medicare.
Becoming Medicare eligible can seem overwhelming, but with the right tools and resources, you’ll be able to navigate it like a pro. And, as always, if you have any questions or need to be pointed in the right direction, RISQ Consulting can help.
- Published in Blog
The RISQ RECAP:
May 8th – May 12th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
FEMA Releases New Flood Insurance Rates by ZIP Code. Brace for Impact.
“When the Federal Emergency Management Agency unveiled its new Risk Rating 2.0 methodology for calculating flood insurance, advocates and critics alike warned that it would mean higher premiums for thousands of property owners, especially in low-elevation coastal areas. Now, the full impact of the sticker shock is becoming clear, thanks to new data released by FEMA that shows price increases – and decreases – by county and by ZIP codes. For some parts of Florida, including the appropriately named Hell Gate on the East Coast, flood insurance will spike an average of 342%, according to the Miami Herald, which analyzed some of the data.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Payor/Provider Convergence and What it Means for You “Health care providers are increasingly taking financial risk in their contracts with health insurance companies and, in turn, health insurance companies are becoming more involved in the delivery of care.” Full Article – Foley & Lardner LLP
PHIPAA Privacy Rule Changes Coming in 2023: Five Steps to Prepare “If HHS finalizes the Proposed Rule as written, HIPAA-covered entities and business associates must update their privacy policies and procedures, security standards, notices of privacy practices (NPP), authorization and disclosure forms, and business associate agreements, among other documents, to reflect the modifications required by the rulemaking.” Full Article – McGuireWoods
IRS Chief Counsel Discusses Cafeteria Plan Substantiation Rules “The IRS Office of Chief Counsel has issued Memorandum Number 202317020 to explain the substantiation rules for claims made under health and dependent care FSAs by means of six commonly encountered factual situations, in five of which it concludes that the plan is not a cafeteria plan and the reimbursement is not shielded from income and employment taxes.” Full Article – The Wagner Law Group
Evolving Laws and Litigation Post-Dobbs: The State of Reproductive Rights as of May 2023 “It has been almost a year since the US Supreme Court returned the question of abortion to the states, resulting in a proliferation of legislation across the country banning, restricting, expanding, or protecting access to abortion. Employers will need to continue monitoring this area closely to ensure that their policies and benefit plans comply with state and federal requirements.” Full Article – Morgan, Lewis & Bockius LLP
Can a Telehealth-Only Plan Continue After the End of the COVID-19 Emergency? “If the PHE ends on May 11, 2023, a calendar year telehealth-only plan could remain covered by the exemption until the end of 2023. But if the plan year is, for example, June 1-May 31, the relief applies only until the end of the current plan year on May 31, 2023; as of June 1, 2023, that plan would have to comply with the preventive services mandate and the prohibition on annual and lifetime limits.” Full Article – Thomson Reuters/EBIA
First Circuit Holds Blue Cross Was Not a Fiduciary When it Allegedly Overpaid, Reprices, and Mishandled Benefit Claims “The court was unpersuaded by the arguments of the Fund and its amici (including the DOL) that finding Blue Cross to be a nonfiduciary would lead to anticompetitive practices that concededly could harm plans and their participants. Thus, based on ERISA’s far from pellucid statutory definition of fiduciary, the First Circuit allowed Blue Cross to evade fiduciary responsibility to the tune of $1.4 million in plan losses caused by its medical claims pricing and payment practices.” Full Article – Kantor & Kantor LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW JERSEY
New Jersey’s Temporary Workers’ Bill of Rights is First in the Nation to Require Equal Pay for Temporary Workers
“This new law, the most expansive of its kind in the nation, provides ‘temporary workers’ with new rights and protections, including the right to receive pay equal to that of regular employees.” Full Article
– Ford Harrison
CALIFORNIA
On-Call/Standby Time: Do We Really Have to Pay Employees When They Are Not Working?
“Disputes regarding whether employees are entitled to be paid for time spent engaged in certain activities are increasingly common, and claims alleging that employees should be paid for time spent ‘on call’ or ‘on standby’ are prime examples.” Full Article
– Hopkins & Carley
California Lawmakers Vote in Favor of Defamation Protection for Sexual Assault Survivors
“Following the #MeToo movement, experts noted an uptick in defamation lawsuits against accusers. These lawsuits are typically brought by the accused and seem aimed at rehabilitating their reputations and, some would say, silencing the victims.” Full Article
– Frankfurt Kurnit Klein & Selz P.C.
INDIANA
Indiana Bans Physician Non-Competes for Primary Care Physicians, Adds Restrictions for Others
“Indiana’s legislature has passed an amendment, Senate Enrolled Act No. 7. Senate Enrolled Act No. 7 would invalidate a significantly broader category of physician non-compete agreements entered into on or after July 1, 2023. Governor Eric Holcomb is expected to sign the bill into law.” Full Article
– Jackson Lewis P.C.
NEW YORK
CLIENT ALERT: New York Department of Labor Finalizes Updates to the State’s Model Sexual Harassment Prevention Policy
“The updated model policy was developed consistent with a law that went into effect on October 9, 2018, which requires New York employers to either adopt and disseminate written sexual harassment prevention policies that meet or exceed the minimum standards set forth in Section 201-G of the New York Labor law or adopt the model policy published by the NYDOL.” Full Article
– Morgan, Brown & Joy LLP
- Published in Blog
Getting Buy-in on HR Initiatives
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
While today’s HR professionals are tasked with many organizational goals ranging from improving employee engagement to attracting and retaining talent, such initiatives take time, resources and continuous effort. As such, building and maintaining successful HR initiatives can be challenging without support from the overall organization and leadership. HR professionals need stakeholders to listen, understand, and support their views before any initiative can get off the ground.
This article explores strategies for HR professionals to obtain organizational buy-in on their initiatives.
Winning Over Stakeholders
To start, buy-in is the encouragement or support of one’s ideas. Getting buy-in does not mean 100% agreement with a plan or initiative, but it’s receiving the support of key team members or stakeholders—even if they don’t wholly agree. HR professionals will spearhead a myriad of initiatives for an organization. Common initiatives are related to talent and learning and development efforts, or it could be more specific, such as integrating new technology or artificial intelligence. Before an initiative kicks off, others in the organization must approve it or give their blessing. Support may also require a financial investment (e.g., expenses and labor costs) depending on the initiative.
Regardless of the nature of the initiative, there are general strategies HR professionals should consider when trying to pursue a new idea but may be facing roadblocks within the organization. Take into account the following tips:
- Lead with a clear vision. A well-defined vision demonstrates confidence in the proposed idea. Developing a clear vision involves:
- Identifying the problem
- Providing examples of the proposed solution
- Leaning on data and metrics to substantiate the solution
- Considering potential risks associated with the plan
- Align with business goals. An initiative is more likely to gain support if aligned with business goals, core values and other companywide efforts.
- Establish credibility. With a proven track record, leaders and key stakeholders are more likely to support HR professionals and their new initiatives.
- Know the audience. Everyone has different perspectives and opinions, so knowing the stakeholders is essential. A successful pitch will address an important issue to that person or deliver on success for the organization. Strong interpersonal skills help HR professionals build relationships before the next big idea. Still, they can also help them navigate these conversations better by knowing what piques the interest of certain individuals.
- Leverage metrics and data. Harness the power of HR data to help prove the need for an initiative and perhaps ways that others have experienced success. Facts and figures don’t lie, so HR professionals can use data to prove their points.
- Calculate the return on investment (ROI). ROI is often the ultimate measurement tool and the key piece of information stakeholders are interested in. Many organizational leaders understand and relate to ROI, and including this information can help validate the proposed initiative.
- Practice the pitch. Before meeting with stakeholders, practicing the pitch to become more comfortable presenting the idea and supporting information is essential.
- Expect common questions. While it’s important to be prepared for the actual pitch, it’s just as critical to be ready for stakeholder questions. Make a list of expected questions and answers to be properly practiced beforehand. It’ll help show confidence in the plan by not faltering on a question.
Being open to feedback or inviting others to expand on the idea is critical. This collaboration could strengthen the idea, demonstrate a willingness to compromise and build stronger interpersonal skills.
Summary
HR professionals are critical in driving significant impact and transformation within organizations. There are countless options for implementing HR initiatives, but securing stakeholder support is vital for them to either go anywhere or, hopefully, be successful. By selecting the appropriate workplace initiatives and striving to get buy-in from leadership, HR professionals can help bolster their influence and achieve notable results for the organization.
Contact RISQ Consulting for more HR resources.
- Published in Blog
Nonprofit Sector Trends to Watch
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Nonprofit organizations operate to fulfill their missions, benefit the community and serve the public. They are essential for maintaining a thriving society and contribute greatly to health care, higher education, environmental stewardship, human services, religious services, arts and culture, and other vital services.
However, in the months and years ahead, the nonprofit sector could face several challenges posed by industry trends, including economic uncertainty, labor shortages and heightened cybersecurity risks. These factors may lead to a drop in fundraising and rising operational costs.
As such, it’s important for nonprofit organizations to closely monitor these sector concerns and adjust their risk management practices as needed. This article provides more information on nonprofit sector trends to watch.
Economic/Recession Concerns
Numerous nonprofit organizations—especially those in the health and human services sector—experienced an increased demand for their services during the COVID-19 pandemic and may have seen an accompanying surge in federal funding and private donations. However, federal support and other funding streams appear to be tapering off due to concerns about an impending recession and high inflation.
Many economists and business analysts agree that a recession is likely to happen within the next year. As a result, many organizations will be challenged with changing consumer behaviors, increased costs, labor market changes and increased reputational risk. For nonprofit organizations specifically, economic downturns often result in a decline in private contributions from individual, corporate and foundation donors, decreased funding from the government and reduced endowments.
Data from the Chronicle of Philanthropy found that the recent significant reduction in donations may signal serious financial trouble for nonprofit organizations as the recession hits. According to the report, donor numbers fell 7% in the first half of 2022 compared to the first half of 2021, with the number of people making contributions of $100 or less dropping more than 17%. In fact, nonprofits are experiencing compounding donor loss each quarter, and the most significant concern these organizations face is an uncertain economic year.
Since U.S. nonprofit organizations are valuable contributors to society and the economy in general, it’s important they focus on innovative solutions and effective risk management to ensure short-term survival as the economic downturn leads to a loss of funding. Best practices include diversifying funding sources, aligning with partners across the nonprofit sector to maximize the pool of potential donors and developing a communication strategy to reach target audiences.
Labor Shortages
The nonprofit sector has the third-largest workforce in the United States, employing over 12 million people. However, employment fell by 1.6 million during the pandemic and decreased even more during the Great Resignation—an unprecedented mass exit from the workforce spurred by the pandemic. As a result, a tight labor market and a shrinking pool of workers have increased talent competition, leaving many nonprofit organizations understaffed. Since these organizations may struggle to offer competitive salaries and benefits, they often lose employees and candidates to better-paying jobs elsewhere. Even volunteerism remains below pre-pandemic levels—dropping 7% between 2019 and 2021, according to a U.S. Census Bureau and AmeriCorps survey—as people continue to worry about their health, vaccine protocols and sanitation practices.
Inadequate staffing at some nonprofit organizations may lead to delays or a complete loss of needed services, causing the communities they serve to suffer. A survey from the National Council of Nonprofits found that 26% of nonprofit organizations have a waitlist more than a month long, and 21% don’t even have a waitlist because they are currently unable to accept new clients. In addition to issues with providing services, inadequate staffing can lead to financial instability, damaged reputations, data breaches, insufficiently trained staff and board member liability issues.
To attract and retain staff, some nonprofits have started to offer better pay and benefits as well as improved workplace advancement opportunities and flexibility. Many nonprofits are also making an effort to increase the diversity of leadership and staff, which can have a positive impact on employee and client relationships and help attract and retain top talent. Nonprofit insurance coverage—including general liability insurance, commercial property insurance and business income insurance—can also help organizations ensure the continued protection of people and assets while they fulfill their missions.
Heightened Cybersecurity Risks
Cybersecurity risks are becoming increasingly severe, targeted and frequent across all sectors. However, nonprofits are particularly at risk since many organizations don’t have the funding to implement adequate cybersecurity protocols. In addition, nonprofits often collect and store highly valuable information about their clients, donors and employees, making them a prime target for cybercriminals. The shift to remote work during the COVID-19 pandemic also significantly increased exposure to data breaches and cyberattacks for several reasons, including expanded attack surfaces, less oversight by security staff and unsecured hardware and networks.
Unfortunately, the way many nonprofit organizations conduct business makes them vulnerable to cyberattacks. For example, while technology has made it easier to accept donations online, it has also made it easier for cybercriminals to steal from them, especially if the website is unsecured. Technology has also allowed for simpler communication processes, but clicking a bad link, downloading a file or opening a malicious PDF can result in a cybersecurity incident with potentially devastating consequences. And while volunteers may have good intentions for volunteering their time, there may be cybercriminals who slip through quick onboarding processes and leave organizations at risk of a cyberattack.
Since nonprofit organizations tend to operate on a limited budget, investing in robust cybersecurity measures or recovering from a data breach may be more difficult than it is for other organizations. However, many cyberattacks can be prevented by locking down the digital donation system, securing email communications, and obtaining a criminal background check on all staff and volunteers.
Conclusion
Overall, there are several trends currently impacting the nonprofit sector. By staying on top of these developments and taking steps to mitigate their associated exposures, nonprofit organizations can effectively position themselves to maintain long-term growth and operational success.
For additional, industry-specific risk management guidance, contact us today.
- Published in Blog
The RISQ RECAP:
May 1st – May 5th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Insurance Could and Should Help Drive Gun Safety Efforts, Survey Says
“Three out of four Americans believe gun owners should be required to have firearm liability insurance. Those are the numbers out of a new Value Penguin survey of 1,995 people ages 18 to 77 exploring attitudes about the role insurance could play in reducing gun violence. While some may say that it isn’t the insurance industry’s place to get involved in the country’s ongoing debate about requirements regarding gun control, insurance has long been an instigator and standard bearer when it comes incentivizing and implementing safety measures that protect people and property.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Pay Equity Audits for the Transparency Era “In recent years, workplace pay equity has become a priority for many states and cities, as seen by the growing number of pay transparency laws being implemented across the country. In turn, pay equity has become a critical priority for employers.” Full Article – Akerman LLP
Educate Managers on FMLA/ADA Overlap “Time and again, I see managers conflate the two, and thereby create liability issues for the organization. A recent DOL opinion letter exemplifies how this issue can arise, particularly when an employee requests to limit the employee’s daily work hours.” Full Article – Levy Employment Law, LLC
NLRB Proclaims the Punishment Arrows in its Quiver “If the NLRB finds that you have committed an unfair labor practice (and maybe more than once), just what can it do? In Noah’s Ark Processors, a three-member panel of the board recently took an opportunity to pronounce available punishments for repeat labor offenders, and it was not shy.” Full Article – Bradley Arant Boult Cummings LLP
The EEOC’s “Best Practices” for LGBTQI+ Employment Equity “Sometimes, in addition to the recitation of federal sector cases, the EEOC will include an in-depth article on a particular topic of interest. Although these digests (and the articles they contain) are geared towards the federal government, the EEOC’s approach to certain employment issues can also be helpful for private employers.” Full Article – Shawe Rosenthal LLP
What Tiger Woods’ Foot Can Teach Employers About Managing Employees’ Medical Conditions “Golfing icon Tiger Woods had to withdraw from the Masters tournament in Augusta, Georgia, last week due to a painful foot condition called plantar fasciitis (which causes a stabbing pain in the heel or foot). Video footage showing Tiger limping during his third round of play, after re- aggravating the condition while competing in the tournament.” Full Article – Ford Harrison
EEOC, FTC, and Other Federal Agencies Release Joint Statement on Confronting Bias and Discrimination in AI and Automated Systems “On April 25, 2023, officials from four federal agencies released a joint statement pledging to increase “enforcement efforts to protect the public from bias in automated systems and artificial intelligence” (“AI”). The agencies taking part in this effort include the Equal Employment Opportunity Commission (“EEOC”), the Federal Trade Commission (“FTC”), the U.S. Department of Justice (“DOJ”), and the Consumer Financial Protection Bureau (“CFPB”).” Full Article – Proskauer Rose LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW JERSEY
New Jersey’s Temporary Workers’ Bill of Rights is First in the Nation to Require Equal Pay for Temporary Workers
“This new law, the most expansive of its kind in the nation, provides ‘temporary workers’ with new rights and protections, including the right to receive pay equal to that of regular employees.” Full Article
– Ford Harrison
CALIFORNIA
On-Call/Standby Time: Do We Really Have to Pay Employees When They Are Not Working?
“Disputes regarding whether employees are entitled to be paid for time spent engaged in certain activities are increasingly common, and claims alleging that employees should be paid for time spent ‘on call’ or ‘on standby’ are prime examples.” Full Article
– Hopkins & Carley
California Lawmakers Vote in Favor of Defamation Protection for Sexual Assault Survivors
“Following the #MeToo movement, experts noted an uptick in defamation lawsuits against accusers. These lawsuits are typically brought by the accused and seem aimed at rehabilitating their reputations and, some would say, silencing the victims.” Full Article
– Frankfurt Kurnit Klein & Selz P.C.
INDIANA
Indiana Bans Physician Non-Competes for Primary Care Physicians, Adds Restrictions for Others
“Indiana’s legislature has passed an amendment, Senate Enrolled Act No. 7. Senate Enrolled Act No. 7 would invalidate a significantly broader category of physician non-compete agreements entered into on or after July 1, 2023. Governor Eric Holcomb is expected to sign the bill into law.” Full Article
– Jackson Lewis P.C.
NEW YORK
CLIENT ALERT: New York Department of Labor Finalizes Updates to the State’s Model Sexual Harassment Prevention Policy
“The updated model policy was developed consistent with a law that went into effect on October 9, 2018, which requires New York employers to either adopt and disseminate written sexual harassment prevention policies that meet or exceed the minimum standards set forth in Section 201-G of the New York Labor law or adopt the model policy published by the NYDOL.” Full Article
– Morgan, Brown & Joy LLP
- Published in Blog
Mental Health in the Workplace, Part 2
By Alison Nelson, Employee Benefits Account Manager
In case you couldn’t tell from this article I wrote last year, mental health is something I am very passionate about. I aspire to contribute to the destigmatization of mental health, especially in the workplace, in whatever capacity I can. When I recently read this article stating that only 19% of employees used their mental health benefits in 2022, I was saddened, but not shocked by that statistic. The article goes on to say:
“A new report by One Medical and Workplace Intelligence, which surveyed 800 employees and 800 human resources (HR) professionals, found that, not only did over nine in 10 (91%) employees tell surveyors mental health was negatively impacting their productivity, but the usage of benefit offerings already in place by employees was extremely low. Less than a fifth (19%) of employees said they used their mental health care benefits in 2022.”
Why don’t employees utilize their mental health benefits? According to Business Wire, it may be because employees undervalue their mental health and tend to reserve benefits for more urgent needs. In other words, people tend to prioritize their physical health over their mental health. I hypothesize that this is, in part, due to the differentiation between physical healthcare and mental healthcare. They are often discussed as two completely different disciplines, but, in truth, mental health IS health.
According to the Mental Health Foundation, “one in three people with a long-term physical health condition also has a mental health problem, most often depression or anxiety.” Physical health and mental health are two sides of the same coin and should be treated as such. If an employee can call out sick when they have the flu, they should also be able to call out sick due to an anxiety attack.
Employees should be able to take mental health days, and one way an employer can encourage that is by implementing a separate mental health policy. Having a separate bucket of mental health days can help encourage employees to recharge without forcing them to choose between taking a day or powering through a panic attack, just in case they spike a fever and need a sick day down the road.
This survey conducted by Breeze in 2022 indicates a number of interesting things, but most notably:
- 63% of employees have taken a mental health day in the last year
- Nearly half of all people who took a mental health day fibbed to their employer on why they needed the day off out of fear of being judged
- 50% of employees left their jobs in 2021 for mental health reasons, including 68% of millennials and 81% of Gen-Z
Adding a mental health policy to your business’ employee offerings is a great way to support employees and show that you care about their entire wellbeing. There is also the additional benefit that employees who take mental health days are less stressed, which results in long-term productivity. No one should feel embarrassed about taking a mental health day. Having a specific policy in place for mental health is a step in the right direction to end the stigma. Here is a great article that lists some other ways employers can implement a mental health policy to support employees and end the stigma. Remember, mental health IS health.
- Published in Blog
Is It a Race? Am I Winning?
By Teri Tibor, Employer Services Account Specialist
I came to a startling revelation this year. I realized that I was sprinting as fast as I could through everything on my to-do list. I don’t mean actually running or speeding, just anxiously rushing through every task I have on a daily basis in an attempt to feel caught up or on top of things. The end result was less like a runner’s high and more like high anxiety.
I noticed that I had little to no memory of what I had done that day and didn’t really get anymore done than I would have if I had approached it at more relaxed pace. I also realized that the people and things that I cared the most about suffered for this.
The consequences of this self-imposed unyielding pace were detrimental. It took a toll on my health and my relationships. I had been living in fight or flight mode for a long time and it was no longer sustainable. 2022 had been a tough year; I lost my oldest friend two months after I started my new job. Then, in the midst of a busy fourth quarter and the holidays, our family had the chance to buy a house and we made the move on Christmas Eve. It was a great opportunity, but not without ample stress.
My typical schedule left no room for rest or relaxation. I have never taken an actual vacation in my entire life. My family and I do go camping in the summer and I liked to think of those trips as mini vacations. Yet, they are just for the weekend and can sometimes feel more stressful than relaxing.
I also realized that I almost never did things for myself. Apparently, they call this self-care. I always had too many other things I deemed more important. You know, the important things in your life like your kids, your family, your pets, your job, your home and all the necessary chores and general upkeep of all the afore mentioned. But just managing these things alone was not leading me down a path I enjoyed. I wanted to do more than just survive as I ran through life.
So, I decided to change directions. It hasn’t been as easy as I hoped to change my outlook and day to day behavior to reach this more enjoyable path, but a new path requires new and healthier habits. I know it will take time like anything worth doing, so for now, I am practicing this strange new concept of self-care. I think of it like buying new sneakers, a fancy water bottle, good athletic shorts, and putting together a rocking playlist. Because if I’m going to be running through life, I might as well enjoy the run.
Here are a few things I found helpful for me:
https://communitychiroak.com/ – I have been seeing Dr. Peter Ryan for 17 years. He is awesome and has saved me from needing spinal surgery.
https://www.chryswell.com/ – Tammy Smith is amazing and has helped me with mind and body healing.
https://solsticebodyworkak.com/ – Jamie Newsom Eaton is wonderful and does lymphatic drainage massage and barefoot massage.
- Published in Blog
The RISQ RECAP:
April 24th – April 28th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Q1 Net Income Up 21% at The Hartford but Personal Lines Unprofitable
“The Hartford Financial Services reported first quarter 2023 net income of $535 million, nearly a 21% increase over $443 million a year ago. In the company’s property/casualty segments, results were carried by net income of $421 million in commercial lines — offsetting a loss of $1 million in personal lines during the first three months. A year ago, Q1 net income in commercial was $383 million and $77 million in personal.” Full Article
– Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Courts Continue to Scrutinize ERISA Health Plan Benefit Denial Letters “In asking the administrator to ensure the denial letters accurately reflect the administrator record, the court, is requiring the administrator to refrain from standard, stock language and draft a more personalized explanation for denying benefits.” Full Article – Troutman Pepper, via Lexology
The Disconnect: More View Health Savings Accounts as Investment Accounts Than Use Them This Way “The majority (62 percent) of health savings account (HSA) accountholders reported that they are using the account to pay for out-of-pocket expenses. And most (69 percent) viewed the HSA as a savings account.” Full Article – Employee Benefit Research Institute [EBRI]
New Guidance on Gag Clause Attestation “To ensure compliance with the Gag Clause Prohibition, plans must annually submit an attestation of compliance with the law to the Departments. The Departments have now launched a website for submitting attestations and issued instructions, a system user manual, and a Reporting Entity Excel Template for plans and issuers to submit the required Compliance Attestation.” Full Article – Seyfarth Shaw LLP
Court Rejects Mental Health Parity Claim for Wilderness Therapy Coverage Denial “Noting that a successful MHPAEA claim requires a participant to plead facts showing a disparity in the plan’s treatment of MH/ SUD and medical/surgical benefits, the court concluded that the participant’s allegation was unsupported and contradicted plan language expressly applying the exclusion to both types of benefits.” Full Article – Thomson Reuters/EBIA
IRS Clarifies Ability to Reimburse Certain Programs Under HSAs, FSAs and HRAs “Programs to treat a drug-related substance use disorder, programs to treat an alcohol use disorder, and smoking cessation programs qualify as medical care because the programs are considered treatment for a disease. However, therapy, nutritional counseling, and weight-loss programs will only be considered medical care if used to treat a specific disease (e.g. obesity). Programs for general health or wellbeing will not qualify as medical care.” Full Article – Foley & Lardner LLP
Departments Issue Guidance on Preventive Services Under the ACA Following the Braidwood Decision “Preventive care requirements receiving an A or B rating from the USPSTF before March 23, 2010, are not affected by the ruling, which means plans and issuers must still cover those preventive care services without cost-sharing. FAQs Part 59 clarifies the Braidwood decision’s effect on the high deductible health plan (HDHP) preventive care deductible safe harbor.” Full Article – Bradley Arant Boult Cummings LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
Columbus, Ohio Prohibits Asking Applicants Their Salary History “Recently, the City of Columbus joined a growing number of states and municipalities that have passed laws prohibiting employers from inquiring into a job applicant’s salary history. In Ohio, Toledo and Cincinnati currently have such ordinances.” Full Article – Vorys, Sater, Seymour & Pease LLPOHIO
Pennsylvania Court Holds Employer Must Reimburse Out-of-Pocket Costs for Medical Marijuana “A Pennsylvania Court held that an employer violated the state Workers’ Compensation Act (WCA) by refusing to reimburse an employee for out-of- pocket medical marijuana expenses related to a workplace injury.” Full Article – Jackson Lewis P.C.PENNSYLVANIA
New York State Releases Updated Model Sexual Harassment Prevention Policy and Training “The New York State Department of Labor (“DOL”) has released its long- awaited updated model sexual harassment prevention policy that addresses issues such as gender identity, remote work, and bystander intervention.” Full Article – Proskauer Rose LLPNEW YORK
Colorado’s Pay Transparency Laws “Colorado’s Equal Pay for Equal Work Act (“EPEWA”) requires employers to include compensation and benefits information in all job postings and notifications of promotional opportunities. The EPEWA covers all employers, public or private, that employ at least one person in Colorado. Employees of covered employers must also comply with the pay transparency requirements of the EPEWA.” Full Article – Bryan Cave Leighton Paisner LLPCOLORADO
California Seeks to Ban Most Criminal Background Checks “California legislators met on April 11, 2023 to discuss a proposed overhaul of employment-related criminal background checks. Simply put, if the Fair Chance Act of 2023 (SB 809) is passed into law, California will have the most restrictive criminal background check law in the country, and will significantly limit the way California employers can vet applicants for employment.” Full Article – Baker & McKenzie LLPCALIFORNIA
- Published in Blog