Search the News Archive

How Insurance Agents Can Ascend Under the New DOL Rule

"It would be logical to conclude that DOL 4.0 has left agents little hope of remaining viable. But the exact opposite is true. Insurance agents have an enormously important contribution to make to their client's retirement security, and in a way that investment advisers and financial planners typically overlook."

Fiduciary Defined: Is Your Broker Suddenly Equipped to be a True Adviser?

"Commissioned brokers with opaque compensation schemes simply won't be able to act as a true adviser and fiduciary. The devious soft-dollar funding arrangements currently used by some service providers will likely be subject to extensive fiduciary scrutiny as well. We expect the retirement landscape to change dramatically over the next 12 to 24 months[.]"

When is a Voluntary Plan Truly a Voluntary Benefit Plan?

"Voluntary benefits have been available for decades, but the whirlwind of changes in how health insurance is purchased and delivered since the implementation of the [ACA] has forced employers and employees to seek solutions to address increasing gaps in traditional health insurance plans that have created larger out-of-pocket costs. Increasingly, voluntary benefits are evolving into a meaningful option that more employers are offering to employees. Many plan sponsors might be surprised to learn that their 'voluntary plans' are not truly voluntary under [ERISA], and that, consequently, the sponsors have not met their ERISA compliance obligations."

The Impact of Furloughs on Employee Benefit Plans

"In many cases, employers may be placing groups of employees on furloughs, assuming that because the employees are still employed and full premiums are being paid, that all benefits remain intact, as if they are in active pay status. In reality, these employees may no longer meet the eligibility or actively-at-work provisions in the employer's group policies, including medical stop loss insurance. Managers may believe they are helping employees by leaving them on the benefits plan; however, it just takes one large medical claim; one death; or one disability and a resulting denial of coverage to lead to a whole host of issues for a plan sponsor and the employees."

The Impact of the Cadillac Tax on the Energy Industry (PDF)

10 pages. "Exploration and production and midstream have rich medical plan designs and coverage levels in their plans, a high average age and gender mix in their employee populations. These factors contribute to higher plan costs that will reach the Cadillac tax thresholds sooner than later.... In 2018, 42 of the 96 energy companies will pay $17.9 million in penalties; by 2022, 85 of the 96 companies will pay $178.4 million."

Why You Can't Overlook Worksite Wellness

"An increasing number of U.S. employers (over 60%) find value in offering worksite wellness. In response to current business challenges, some employers have cut their wellness programs to save money. But eliminating wellness from an organization's overall health plan strategy ignores the harmful effects unhealthy employees can have on the bottom line -- they can be less productive at work and have higher health care costs."

How the Same-Sex Marriage Ruling Impacts Employee Benefits

"There are a number of questions that will need to be answered in future guidance.... In the event any employee benefit plans require changes, what would be the effective date of the change? What deadline might apply to making such changes? Will new 'change in status' events be created for mid-year election changes to Section 125 cafeteria plans?"

Key Differences Between EEOC Proposed Wellness Regs and HIPAA

"[1] The EEOC proposed rule ... places an incentive cap not only on health-contingent programs, but also on participatory programs that include health questionnaires with disability-related inquiries or medical examinations.... [2] The EEOC proposed rule does not dispute the 50 percent incentive level for tobacco-related programming, unless nicotine testing is involved. If the tobacco-related program involves a medical test for nicotine, the incentive cap is 30 percent.... [3] [R]equiring wellness participation for health plan eligibility would deem the program involuntary, according to the EEOC.... [4] When a wellness program is part of a group health plan, the EEOC's proposed rules require employers to provide a detailed notice to participants separate from other notices that are required by HIPAA."

2015 Global Employee Benefit Trends: Shifting Dynamics of $50 Oil (PDF)

7 pages. "In a market where operators can ask or demand that a drilling company renegotiate a rig contract, cost control becomes a critical consideration.... Wringing savings out of plan suppliers/vendors and cost shifting to employees will be a staple of consideration. U.S. cafeteria plan requirements may limit all but the very desperate from making mid-year plan changes, leaving 401(k) contributions as the most significant available cost reduction lever (after actual headcount reductions) available to employers."

Impending Supreme Court Hearing of the Next ACA Case Merits Attention of Large Employers

"On the surface, the case appears to impact only consumers, particularly those who may lose eligibility for current or future subsidies. However, should the plaintiffs prevail, the decision would have a major impact on both consumers and employers in the 34 states that opted not to establish their own exchanges. Employers in those states would then have a good case to challenge the ability of the federal government to impose penalties under the ACA's employer play-or-pay mandate. That, in turn, could nullify play-or-pay for the majority of the country allowing employers in those states much more leeway in determining eligibility provisions and contribution strategies as was the case pre-ACA."