Cyber Liability – Zero Trust Security Explained
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.
Traditional cybersecurity protocols can’t keep up with the rapidly evolving modern workplace environment. The complexity of hybrid work, the rising number of fully remote employees and the dramatic increase in the use of cloud-based systems make traditional perimeter security ineffectual. A new security model is needed to keep the corporate network safe. This model is “zero trust.”
Zero trust is adapted to the modern workplace. It embraces mobility and protects people, networks, applications and devices, regardless of their location. Review the following guidance to learn why zero trust is important, how it works and how it can benefit your organization.
What Is Zero Trust?
Traditional network security trusts the identity and intentions of users within an organization’s structure. This puts the organization at risk from malicious internal actors and rogue credentials by allowing unauthorized and uncompromised access to the organization. The phrase “trust, but verify” is often used to describe traditional network security approaches.
The zero-trust approach removes the concept of trust from within an organization’s structure. With zero trust, a data breach is assumed with every access request. Every access request must be authenticated and authorized as if it originated from an open network. The concept “never trust, always verify” is emblematic of the zero-trust approach.
What Are the Benefits of Zero Trust?
The zero-trust approach is one of the most effective ways for organizations to control their network, applications, and data.
This is especially important today, as companies expand their infrastructure to include cloud-based applications and servers. The growing usage of locally hosted machines, VM and Software-as-a-Service products, and a dramatically increasing number of remote employees have made it difficult for organizations to secure their systems and data.
Implementing a zero-trust approach benefits companies in a wide range of ways, including:
- Minimizing your organization’s attack surface—By granting the lowest level of access possible for users and devices to perform their essential functions, organizations can minimize the affected area within their organization should a breach occur.
- Improving audit and compliance visibility— The first step to implementing zero trust is for an organization to know what devices exist and which credentials are on each device. In this way, devices are constantly kept in an audit-ready state.
- Reducing risk, complexity and costs—All access requests are vetted prior to allowing access to any company assets or accounts. This dramatically increases real-time visibility within the organization and helps prevent costly data breaches.
- Providing Layer 7 threat prevention— Layer 7 refers to the application level of the Open Systems Interconnect model. This layer identifies communicating parties, supports end-user processes and applications, and consults privacy and user authentication. By establishing who can access the different levels of your organization at any given time the zero-trust approach stops unauthorized users or applications from accessing your organization’s crucial data and prevents the unwanted exfiltration of sensitive information.
- Simplifying granular user-access control— Zero trust requires an organization to define which users may access certain aspects of an organization. As a rule, each user is granted the least privilege possible to perform their necessary functions.
- Preventing lateral movement—Segmenting the network by identity, groups and function allows organizations to contain breaches and minimize the damage from a hacker who was allowed to move freely within the organization’s perimeter.
How Does Zero Trust Work?
By combining a wide range of preventative techniques, including identity verification, behavioral analysis, microsegmentation, endpoint security, and least privilege controls, implementing a zero-trust approach can significantly reduce an organization’s risk of becoming a data breach victim.
Zero trust relies on three essential principles:
- Verify explicitly. Every user request must be authenticated and authorized using all available data points. This step is designed to ensure the person or application requesting access is who they say they are.
- Use least privileged access. Users should be given the least amount of access necessary to perform their authorized functions. Just-in-time (JIT) and just-enough access (JEA), risk-based adaptive policies and data protection can all help secure data and user productivity.
- Assume breach. Use end-to-end encryption to prevent data from flowing to undesired endpoints. Use analytics to drive threat detection, improve visibility and enhance defenses.
How Can I Implement Zero Trust?
Zero trust is relatively simple to deploy. Adopting the principles of zero trust doesn’t require any costly products. Use the following principles to employ zero trust at your organization:
- Define the attack surface. To adopt a zero-trust framework, your organization’s critical data, assets, applications and services must be identified. This critical information forms a “protect surface,” which is unique to every organization.
- Create a directory of assets. Determine where the sensitive information lives and who needs access to it. Know how many accounts there are and where they connect. Consider removing old accounts and enforcing mandatory password rotation.
- Adopt preventative measures. Give users the least amount of access necessary to do their work. Use multifactor authentication to verify accounts. Establish micro-perimeters to act as border control within the system and prevent unauthorized lateral movement.
- Monitor continuously. Inspect, analyze and log all data. Escalate and store logs with anomalous activity or suspicious traffic. Have a clear plan of action for how to handle anomalous activity.
For additional risk management guidance and insurance solutions, contact us today.
- Published in Blog
Reviewing Preemployment Drug Testing Policies to Comply With Marijuana Laws
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.
There’s currently a patchwork of marijuana-related laws throughout the United States. While marijuana, including medical marijuana, remains illegal under federal laws, many states have legalized medical and/or recreational marijuana, decriminalized the drug or enacted workplace protections for its usage. As more states legalize marijuana and expand workplace protections regarding its usage, ensuring compliance with federal, state and local laws remains a challenge for employers.
Moreover, attitudes throughout the United States surrounding marijuana use have shifted, causing some employers to change their drug testing policies. Many organizations have altered their marijuana testing policies in recent years. Five years ago, many employers would likely have terminated an employee for testing positive for marijuana; today, state and local laws, as well as other considerations, are forcing organizations to proceed with more caution. As a result, many employers are reevaluating their preemployment marijuana drug testing policies.
This article outlines considerations for employers when reviewing their preemployment drug testing policies. Due to the complex nature of marijuana-related laws, employers are encouraged to consult with local legal counsel regarding any questions or concerns.
Increased Protections for Marijuana Usage
In addition to states that are either legalizing or decriminalizing marijuana use, an increasing number are adopting workplace protections for employee marijuana use. While the protections vary, these laws may require employers to treat marijuana usage like other medications. As a result, employers may need to accommodate employee marijuana usage or be prevented from taking adverse action based solely on a positive drug test.
Importantly, state laws vary on when a positive marijuana drug test can be used to discipline or as the basis to refuse to hire an individual. The laws can limit or determine what actions an employer can take before adversely impacting the employment of an individual who has tested positive for marijuana. For example, New York City and Philadelphia prohibit preemployment drug testing for marijuana. Additionally, Nevada bans employers from taking an adverse employment action based on a positive preemployment marijuana test result. Therefore, it’s vital that employers familiarize themselves with all applicable state and local marijuana laws as well as drug testing requirements. Additionally, they should review their workplace drug policies and procedures to ensure they comply with any state and local legal requirements.
Marijuana Testing Issues
Marijuana presents certain challenges for employers in terms of drug tests, as it can often produce inaccurate or unreliable results. Currently, most drug tests can only show the presence of tetrahydrocannabinol, or THC—a psychoactive compound found in marijuana—in a person’s system at the time of testing; however, they are not able to accurately determine the level of an individual’s impairment or intoxication. For instance, marijuana can stay in urine samples for up to a month or longer and in hair samples for a year. Additionally, individuals metabolize cannabinoids differently, and drug tests cannot capture or process these differences, leading to unreliable test results. Further, cannabinoid components, including legal substances such as CBD, can produce false positive results, making it difficult for employers to be confident in test results.
To address these issues, some employers rely on objective indicators and observations in addition to positive drug test results. This can include the following:
- Unusual behavior
- Dizziness
- Strong odors
- Dilated eyes
- Impaired speech
- Blank or confused facial expressions
Saliva tests have been shown to be more accurate at detecting marijuana usage within 24 hours. As a result, employers are increasingly relying on these tests. Even the U.S. Department of Transportation has recently changed its drug testing requirements to use saliva tests to detect marijuana.
Workplace Safety Concerns
Even in states that have legalized or decriminalized marijuana usage, there are certain exemptions regarding workplace protections for marijuana usage. These typically include carve-outs for safety-sensitive positions or jobs involving driving or piloting vehicles. However, in many cases, preemployment drug tests may not be a reliable indicator of potential future workplace safety issues. Instead, employers are implementing reasonable suspicion and post-accident drug testing policies to address workplace safety issues. Organizations can also develop separate workplace policies for safety-sensitive positions. Under these policies, job positions are treated differently based on whether their requirements and duties involve legitimate safety concerns, such as operating heavy machinery. This can be an effective way for employers to protect employees and customers as well as reduce potential legal risks.
Strategies for Preemployment Marijuana Testing Policies
While more accurate testing measures can provide employers with results they can confidently rely on, many employers may hesitate before taking adverse employment action against an applicant in response to a positive test result due to ever-changing marijuana regulations. Because of the legal complexities and potential future compliance obligations surrounding the drug, there is no one-size-fits-all approach to preemployment marijuana testing. Instead, employers should consider which option best serves their organization and specific business needs.
The best practices for employers that conduct drug testing for marijuana will depend heavily on the applicable state laws; nonetheless, the following is general guidance for employers when reviewing and implementing preemployment marijuana testing policies:
- Apply state and local policies and practices to preemployment testing.
- Adopt policies and practices that comply with the most restrictive laws for any states and localities where an employer operates.
- Employ an “as-needed” approach to required preemployment marijuana testing based on business necessity.
- Eliminate preemployment marijuana testing in states and localities where there is no legal testing requirement.
Employers operating in multiple states should review their policies to ensure they comply with all applicable state and local requirements. Some organizations that operate in multiple states may decide to implement a universal policy that applies to all employees regardless of location or adopt state-specific policies depending on where employees work. If employers decide to forgo preemployment testing altogether, they should determine whether doing so may expose their organizations to legal risks, such as claims of negligent hiring.
Additionally, accommodating employee marijuana usage does not mean employers must tolerate unsafe work environments or individuals working under its influence. Most state laws, even those permitting medical and/or recreational marijuana usage, do not permit individuals to use marijuana while at work or during work hours.
Summary
The expanding network of marijuana laws in the United States is forcing many employers to reevaluate their workplace policies, including preemployment drug testing. Rescinding a job offer due to a positive marijuana result could expose an organization to legal risks and liabilities, including civil fines, lost wages, compensatory damages and attorneys’ fees. This is a rapidly changing area of law, so it’s critical that employers regularly review their workplace policies to ensure they comply with the most current marijuana and drug testing laws. Employers should monitor state and local laws for further developments.
For more workplace resources related to medical or recreational marijuana use, contact RISQ Consulting today.
- Published in Blog
Supporting Employees During the 2023-24 School Year
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.
As summer comes to an end and fall begins, employees with school-age children may have increased caretaking responsibilities as their kids begin a new academic year. In addition to other day-to-day challenges, parents are now dealing with school pick-up and drop-off, unexpected sick days and other occurrences that could affect their work-life balance.
Employers can support employees during this transition into the school year by acknowledging these changes and offering flexibility. This article explores considerations for acknowledging and responding during the back-to-school season.
Supportive Leave Policies
As Americans continue to live with COVID-19 circulating just like the common cold and flu, illnesses are inevitable. Therefore, employers may want to review their leave policies. While an organization’s policies may accommodate employees who become ill, family members could also become sick. Employers should consider offering workplace flexibility that allows them to leave and care for their family members if needed. Some employers have leave policies that allow employees to take time off when they or their family members are sick or when they need to receive vaccines for these illnesses. With the back-to-school season approaching, employers may be reevaluating their current leave offerings to ensure they reflect these realistic needs.
Flexible Working Arrangements
Remember that life happens, and unexpected circumstances will arise. Employers can consider providing remote and hybrid work models when possible or as needed. Even when remote and hybrid work is not feasible, flexible scheduling can allow employees time for other tasks, such as dropping off or picking up their children from school.
Furthermore, the workplace could implement core hours that allow employees some leniency in when they can start and stop their days. Whichever accommodations an employer chooses, it’s important to communicate to employees that the company is willing to work around events that may arise in their lives. This assurance may reduce stress during the back-to-school transition and could positively impact employee retention. However, it’s important to note that accountability should come with flexibility, so employees must work out any arrangements with their managers and teams.
Resources for Caretakers
Family caregivers account for an estimated 18% to 22% of the U.S. labor force, according to the Rosalynn Carter Institute for Caregivers. Furthermore, nearly one-third of caregiver employees have voluntarily left a job at some point during their careers because of their caregiving responsibilities.
While it may not be feasible for all employers to directly provide caretaking services, they can help ensure their employees have access to such resources.
Employers may consider hosting a workshop, distributing a handout or otherwise providing information regarding caretaking resources. Even if there are no specific caregiving benefits available at an organization, managers or supervisors could simply ask working employees how they are doing during the back-to-school season. This kicks off an open dialogue, demonstrating an interest in how they’re doing as a person and helping reduce guilt about juggling personal and work responsibilities.
Many schools end between 3 p.m. and 4 p.m., which means working parents might need child care for several hours or leave to handle it themselves. When school is closed due to holidays or professional development, working parents may have to find a secondary plan for those days while they’re still working. Helping employees feel supported during their search for caretakers or after-school programs for their children can go a long way in making them feel supported and may boost overall employee retention.
Takeaway
The back-to-school transition may initially seem misplaced to the workplace, but the reality is that many employees have school-age children and associated caretaking responsibilities. As a result, employers should prepare to be flexible, accommodate employees during this transition and provide relevant resources. These efforts can help make a difference and ultimately assist in appealing to and keeping workers during a time when attraction and retention are significant challenges for organizations.
Contact us for additional workplace resources.
- Published in Blog
Educating Young Employees on Open Enrollment
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.
Many employees need help with open enrollment. This is particularly true among younger workers, who typically have less experience selecting benefits than older generations that have been in the workforce longer. A study by insurance and employee benefits provider MetLife found that 26% of Generation Z (Gen Z) employees are insecure about making benefits decisions.
Employers who successfully educate young employees about open enrollment are likely to find that workers are more satisfied with their benefits packages, make better financial decisions and are more likely to recommend their organization to other people. Such positive outcomes can significantly influence an organization’s overall financial performance.
To this end, employers can implement several strategies for educating young employees to help them navigate open enrollment.
Educating Young Employees
Clear communication is crucial to ensure workers understand the open enrollment process and the benefits they’re signing up for. Employers should consider the following strategies for educating younger employees on open enrollment:
- Prioritize internal communications. Young employees may be unfamiliar with the open enrollment process. Inform employees about the upcoming open enrollment through multiple channels (e.g., emails, flyers and meetings). Ensure every employee knows when open enrollment begins, the last day to complete enrollment and the consequences of failing to enroll in time.
- Create multiple avenues for communication. Ensure young workers know how to ask questions about open enrollment and feel comfortable speaking to HR and their managers about the upcoming enrollment. Encourage these employees to discuss their benefits plans with their friends, family and more experienced coworkers.
- Provide educational resources. Give workers the information they need to make informed benefits decisions during open enrollment. To target young workers, employers should provide digital resources such as online webinars, videos, social media posts and articles.
- Explain benefits options. Employees are likely to think primarily of health insurance during open enrollment and may overlook voluntary benefits that could be useful to them. Employers should provide information about employee benefits choices (e.g., pet insurance, student loan repayment assistance and employee assistance programs) so that young employees don’t forgo benefits they may want later in the year.
- Cater to employee needs. Young generations of workers have different benefits needs than older generations. For example, they’re more likely to prioritize mental health resources and student loan assistance over life insurance or financial planning for retirement. Employers should capitalize on the wants and needs of younger generations to educate them on benefits they care about.
- Encourage young employees to take their time. Rushing through open enrollment can cause workers to forgo crucial benefits. This is especially true of young workers, who may feel stressed or unsure of the open enrollment process. Give employees ample time to research and select their benefits and encourage them to ask questions.
- Communicate all year round. Benefits education should be more than a flurry of activity during the open enrollment window. Employers should provide employees with the resources they need to understand and maximize their benefits all year round, highlighting the direct financial impact benefits decisions can have on employees. This can help young workers understand the importance of open enrollment and the impact that rushing through the process can have on their financial well-being, increasing the likelihood that they’ll make informed benefits decisions when the time comes.
Conclusion
Open enrollment can be a nerve-wracking period for all employees. The stress of selecting benefits is often most keenly felt by younger workers with less experience selecting benefits. Employers can use open enrollment as an opportunity to increase communication and trust with young workers by educating them on the process and their benefits choices. This may increase younger generations’ satisfaction with their benefits packages and jobs, improving organizations’ employee attraction and retention and ultimately their bottom lines.
Contact us today for more information.
- Published in Blog
Top 10 High-cost Claim Conditions in 2022
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.
Stop-loss provider Sun Life released its 2022 list of high-cost claims, revealing the COVID-19 pandemic’s widespread impact on Americans’ medical care, mental health and infant care.
Sun Life analyzes its claims data annually to help self-funded employers understand trends and potential impacts of the highest-cost medical and injectable drug claims. According to the report, 71% of all stop-loss claims in 2022 came from the following top 10 conditions, diseases or disorders:
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Malignant neoplasm: $324.8 million in stop-loss reimbursements
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Cardiovascular: $142.2 million
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Leukemia, lymphoma and multiple myeloma: $115.2 million
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Orthopedics and musculoskeletal: $106 million
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Newborn and infant care: $106 million
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Sepsis: $89.7 million
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Gastrointestinal: $70.2 million
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Neurological: $70 million
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Respiratory: $69.4 million
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Urinary and renal: $54.3 million
While COVID-19 dropped from the top 10 to number 11, it continues to impact other medical conditions. For example, COVID-19 can affect cardiac risk, potentially triggering or accelerating preexisting coronary artery disease. Additionally, mental health conditions increased during the pandemic, with alcohol-related disorders as a top subcategory. Newborn and infant care claims due to preterm births are also on the rise. According to the report, pregnant women in the United States who have had or have COVID-19 have a 40% higher risk of preterm birth. Sun Life suggests that the alarming rate of preterm births is attributed to inadequate prenatal care and preexisting maternal health conditions—such as hypertension, diabetes and COVID-19—which added challenges in terms of underlying health and access to care.
View the full Sun Life report to discover the top 20 high-cost conditions for 2022 and how these numbers have trended over the past few years.
Employer Takeaways
Cancer remains the largest driver of high-cost claims, with 11 of the top 20 high-cost injectable drugs related to cancer treatment. However, cardiovascular disease continued to rise and took the number two spot in 2022. Heart failure, specifically, is the largest cardiovascular claim subcategory. Based on this report, COVID-19 continues to have a ripple effect on Americans’ health and access to care.
Employers should continue to monitor health-related trends to make the right employee benefits decisions for their organization and employees.
Contact us today for more information.
- Published in Blog
Supreme Court’s Affirmative Action Ruling Could Impact Workplace DEIB Programs
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.
The U.S. Supreme Court issued several consequential decisions as its most recent term ended, including addressing affirmative action programs in college admissions. While these rulings will likely not directly affect employers, they may impact workplace diversity, equity, inclusion and belonging (DEIB) initiatives, including how organizations promote and implement them.
This article provides an overview of the Supreme Court’s affirmative action rulings. It explores how these rulings may impact workplaces in 2023 and beyond to help employers prepare for potential changes and navigate the evolving labor and employment law landscape.
Supreme Court’s Rulings
In Students for Fair Admission Inc. v. President & Fellows of Harvard College and Students for Fair Admissions Inc. v. University of North Carolina, the Supreme Court struck down affirmative action programs at the University of North Caroline and Harvard University, holding that the universities’ affirmative action programs violated the Equal Protection Clause of the U.S. Constitution and Title VI of the Civil Rights Act of 1094. In doing so, the court effectively overruled its 2003 decision of Grutter v. Bollinger, which allowed universities to consider race—among other factors—in university admissions because diversity in education was considered a legitimate aim. As a result, these rulings will likely end the consideration of race in university admissions for private and public institutions.
The Rulings’ Impact on Workplace DEIB Programs
The Supreme Court’s affirmative action rulings did not change any employment-related laws; however, they could create a framework to challenge race-based recruitment and workplace DEIB programs. As a result, they could have an indirect effect on DEIB initiatives and other programs that promote workplace diversity.
Title VII of the Civil Rights Act prohibits covered employers from discriminating against applicants and employees based on race, color, religion, sex and national origin. While the Supreme Court has approved extremely limited race-conscious hiring plans to address past discrimination by a particular employer, it has not created an exception for making race-conscious employment decisions to improve workplace diversity. As a result, the Supreme Court’s decisions regarding affirmative action programs in college admissions could have the following impact on employers:
Individual Lawsuits
While the Supreme Court’s rulings did not directly address hiring or employment practices, employers may face increased scrutiny over their hiring practices and DEIB initiatives. This will likely take the form of individual reverse discrimination lawsuits, with applicants or employees claiming to be disadvantaged by an employer’s DEIB initiatives. For example, employers that rely on DEIB programs that impact employment decisions could be at a higher risk of potential litigation than those that simply offer employee resource groups (ERG). As a result, the Supreme Court’s ruling could impact individual hiring and promotion decisions for organizations with a strong public commitment to increasing workplace diversity.
Mentorship Programs, Affinity Groups and Other DEIB Programs
Some organizations offer mentorship programs, affinity groups (or ERGs) or other DEIB programs to address and strengthen workplace diversity. The Supreme Court’s recent decisions could impact these programs and groups. While it’s unlikely that employers will need to eliminate these programs and groups in light of the rulings, organizations may face legal challenges for limiting program and group membership based on a specific protected characteristic, such as race or gender.
Affirmative Action for Federal Contractors
Employers who are covered federal contractors are required to engage in affirmative action, meaning they must take action to recruit and advance qualified minorities, women, persons with disabilities and covered veterans. While the Supreme Court’s decision does not directly impact this requirement, federal contractors should consider reviewing any actions they take to comply with their regulatory obligations to ensure they don’t run afoul of federal law.
Considerations for Employers
The Supreme Court’s rulings come at a time when many employers are exploring DEIB programs. While dialing back DEIB programs is an option, these rulings do not mean employers can’t or shouldn’t have such initiatives. However, organizations may need to be more critical and thoughtful about designing and implementing their DEIB programs.
With so much uncertainty, employers may need to navigate changing legal landscapes and adjust their DEIB programs and strategies accordingly. This may mean casting a wider net when recruiting. For example, employers can advertise job openings in publications, attend more career fairs or use multiple online channels to expand their talent pool. Employers can also continue to focus on creating an inclusive workplace where employees feel they belong and are treated fairly. Additionally, reviewing workplace policies and practices can help employers ensure they do not reflect implicit bias or illegal impact on individuals based on protected characteristics.
Takeaway
How the Supreme Court’s affirmative action decisions will impact workplace DEIB programs and initiatives is a developing issue, and it’s currently unclear what the landscape will look like for employers. Time will tell whether these rulings will impact or alter established labor and employment laws and workplace DEIB practices. Awareness of these cases and their potential effects on workplaces can help employers prepare and feel confident in their ability to navigate any changes.
Employers should monitor the situation carefully since this is a rapidly developing issue. Consulting with legal counsel can help ensure that employers’ DEIB programs comply with any changes or legal developments.
For more workplace resources, contact RISQ Consulting today.
- Published in Blog
A Primer on QSEHRAs
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.
Due to rising health care costs, small businesses often struggle to provide employees with affordable, high-quality benefits. In fact, many small businesses choose not to offer employee benefits because of cost constraints. Failing to offer health benefits can place small businesses at a disadvantage when it comes to attracting and retaining key talent compared to their larger counterparts. However, qualified small employer health reimbursement arrangements (QSEHRAs) offer small businesses the opportunity to provide employees with affordable, quality care.
A QSEHRA is a health reimbursement arrangement (HRA) that allows a small business to provide employees tax-free reimbursements for health insurance premiums and other qualifying health care expenses. Compared to traditional group health plans, QSEHRAs can offer small businesses more flexibility and affordability when administering health care benefits while tailoring benefits offerings to fit employee needs.
This article provides a general overview of QSEHRAs and outlines some considerations for employers to keep in mind when deciding whether to offer employees this coverage.
What Is a QSEHRA?
A QSEHRA is a health reimbursement arrangement for employers with fewer than 50 full-time employees. It allows qualifying small businesses without employer-sponsored group health benefits or any excepted benefits, such as dental and vision, to provide tax-free reimbursements to employees for eligible medical expenses. To qualify for tax-free reimbursements, employees must be enrolled in health plans that meet the minimum essential coverage (MEC) requirements outlined in the Affordable Care Act.
How Do QSEHRAs Work?
An employee with MEC can submit qualified medical expenses and supporting documents to their employer for reimbursement. Qualifying expenses typically include:
- Insurance premiums
- Coinsurance
- Copays
- Deductibles
- Prescription or over-the-counter drugs
The employer then provides tax-free reimbursements to the employee, up to a specified annual maximum amount. The IRS imposes annual maximums per employee, with separate limits for individual and family coverage. If an employee’s medical expenses do not reach the annual maximum reimbursement amount during the plan year, the employer may keep the remaining balance or roll it over for the following year. Employees may not receive cash payments for the difference if their expenses fail to reach the annual maximum amount.
QSEHRA Eligibility Requirements
The eligibility requirements for QSEHRAs differ for employers and employees.
Employer Eligibility Requirements
For employers to be eligible to offer a QSEHRA, they must meet the following requirements:
- Employ less than 50 full-time employees
- Not offer a group health plan, excepted benefits or a flexible spending account (FSA)
Employee Eligibility Requirements
Most employees of an eligible employer may qualify to participate in a QSEHRA. Even employees without MEC can still participate in their employer’s QSEHRA, but their medical reimbursements will be taxable. Additionally, employees with group health coverage through their spouse can participate in a QSEHRA, but their group health premiums cannot be reimbursed. However, employers can exclude certain categories of employees, including part-time and seasonal employees as well as employees younger than age 25.
Considerations for Offering a QSEHRA
QSEHRAs allow small businesses to offer employees health benefits without having to manage a group health plan. This can help small businesses avoid the potential downsides of traditional health insurance plans, such as expensive premiums, restrictive participation, contribution requirements and annual rate increases.
QSEHRAs can also benefit employers offering health benefits for the first time since these plans allow employers to control costs, provide flexibility and scale their benefits as their organization grows. They are often a good option for organizations with a remote and geographically disbursed workforce because small businesses may be unable to find a national carrier that provides high-quality, affordable health benefits. Additionally, QSEHRAs can offer employees more choice in how they spend their health care dollars than traditional health plans.
Summary
QSEHRAs offer a valuable solution for small businesses seeking to provide health benefits to their employees without incurring the costs typically associated with traditional group health plans. Leveraging the flexibility and tax advantages of QSEHRAs can help small businesses offer competitive benefits to attract and retain top talent while controlling costs.
Reach out to us today for more information on QSEHRAs.
- Published in Blog
PSYCH 101 – Anxiety
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.
Experiencing occasional anxiety is normal. However, if your feelings of anxiety are extreme, last for an extended period or interfere with your daily life, you may have an anxiety disorder. People with anxiety disorders frequently experience intense, excessive and persistent worry and fear about everyday situations.
Although often used interchangeably, anxiety is not the same as fear. According to the American Psychological Association (APA), anxiety is a future-oriented, long-acting response broadly focused on a diffuse threat. At the same time, fear is an appropriate, present-oriented and short-lived response to an identifiable and specific threat.
Keep in mind that anxiety also is not interchangeable with stress. Both are emotional responses, but stress is generally caused by an external trigger (e.g., a work deadline, conflict or chronic illness). These terms are often confused since anxiety leads to similar symptoms.
The National Institute of Mental Health estimates that 31% of Americans will experience an anxiety disorder during their lifetimes. There are several types of anxiety disorders, and having more than one simultaneously is possible. When excessive anxiousness lasts more than six months, it is then considered and treated as an anxiety disorder.
Here are some of the most common anxiety disorders:
- Generalized anxiety disorder (GAD) includes persistent and excessive anxiety and worry about activities or events that are often ordinary or routine. These stressful feelings can jump from topic to topic, occurring most days. GAD is diagnosed when a person worries excessively about various everyday problems for at least six months. Physical symptoms accompanying this condition include fatigue, headaches, irritability, nausea, frequent urination and hot flashes.
- Panic disorder involves repeated attacks of terror, known as panic attacks, usually accompanied by a pounding heart, sweating, dizziness and weakness. During these attacks, a person may flush or feel chilled, their hands may tingle or feel numb, and nausea or chest pain may occur. Panic attacks usually produce a sense of unreality, a feeling of impending doom or a fear of losing control. They can occur at any time, even during sleep. Some people who experience panic attacks become so fearful that they refuse to leave home. When the condition progresses this far, it is called agoraphobia—a fear of open spaces.
- Social anxiety disorder is diagnosed when individuals become overwhelmingly anxious and excessively self-conscious in everyday social situations. People with this phobia have an intense, persistent and chronic fear of being watched and judged by others and doing things that will embarrass them. They may worry for days or even weeks before a dreaded situation. Many individuals with social phobia realize that their fear is unwarranted but are still unable to overcome it.
- A specific phobia is an intense and irrational fear of something that poses little or no threat, such as heights, escalators, dogs, spiders, closed-in places or water. Similar to social anxiety disorder, individuals understand these fears are irrational, but feel powerless to stop them. The causes of specific phobias are not well-understood, but symptoms usually appear in childhood or adolescence and continue into adulthood.
The causes of anxiety disorders aren’t fully understood. For example, life experiences can trigger anxiety disorders in people already prone to anxiety. Inherited traits may increase a person’s chance of developing an anxiety disorder or anxiety could result from a medical condition that needs treatment. The APA notes that women are more likely to experience anxiety disorders than men.
In general, anxiety disorders are treated with medication, therapy or both. Before treatment begins, a doctor must conduct a careful diagnostic evaluation to determine whether an anxiety disorder or a physical problem causes a person’s symptoms. Sometimes alcoholism, depression or other coexisting conditions strongly affect an individual, and treating their anxiety disorder must wait until those conditions are controlled. Those with anxiety disorders usually try several different treatments or combinations of treatments before finding the one that works for them.
Anxiety looks and feels different for everyone, so it’s important to understand how anxiety can present itself. Common symptoms of anxiety include the following:
- Anxious thoughts that are difficult to control
- Fatigue
- Irritability
- Restlessness
- Sleep problems, such as difficulty falling or staying asleep
- Trouble concentrating
- Unexplained aches and pains
Anxiety may not go away on its own and can worsen if left untreated. Many people will experience an anxiety disorder at some point in their lives, and, fortunately, they are very treatable. If you feel like you’re worrying too much and these feelings are interfering with your work, relationships or other aspects of your life, contact your doctor or a mental health professional.
- Published in Blog
28% of Employers Consider Covering FDA-approved Weight Loss Drugs
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.
An annual report by pharmacy benefit consulting company Pharmaceutical Strategies Group (PSG) found that 43% of employers currently cover FDA-approved weight loss medications, while 28% are considering doing so in the next one to two years.
The report surveyed over 150 employers and health plans. Smaller and larger employers are nearly equally likely to be currently covering these medications (42% and 40%, respectively); however, small employers are less likely to be considering this coverage compared to larger employers (20% and 36%, respectively). Many employers are familiar with popular weight loss drugs, such as Wegovy and Mounjaro, and an increasing number of health plans are starting to cover FDA-approved weight loss drugs in response to employee desires.
Although the American Medical Association recognized obesity as a disease in 2013, employers are divided on whether it’s a lifestyle condition that should not be covered (24%) or a chronic condition that should be treated (21%), according to the PSG report. The top reason employers decided not to cover FDA-approved weight loss drugs was because they consider the medications to be lifestyle drugs. Other reasons employers excluded weight loss drugs include:
- The medications are too expensive, often costing more than $10,000 per individual per year.
- There are concerns that the medications may not lead to long-term weight loss.
- The medications would need to be taken for an indefinite duration.
Regarding employers who cover FDA-approved weight loss drugs, the report found that 22% of employers require employees to participate in a lifestyle modification program in order to be eligible for the drugs. For 20% of employers, participation in such programs is voluntary. Of employers who cover weight loss medications, only 16% currently measure the outcomes of these drugs. However, 36% plan on implementing such measures in the future. The report also found that 50% of employers who measured outcomes of weight loss medication were somewhat or very satisfied versus 20% who were dissatisfied.
Even though employers can put limitations on weight loss medications coverage, such as cost or duration of treatment limits, only 14% have done so.
Employer Takeaway
The popularity of weight loss drugs has reached a fever pitch in the United States, with more employees inquiring with employers about these medications. As a result, employers are faced with the difficult decision of whether to cover these expensive medications.
The PSG report shows that employer responses to the rise of weight loss medications differ. Understanding these trends can help employers decide what’s best for their organizations and their benefits plans.
Contact RISQ Consulting for more employee benefits resources.
- Published in Blog