How To Create Benefit Programs That Benefit Your Dealership

Kathryn Carlson

Product Director, HR Management

Questions?

If you have questions during the presentation, please submit them

using the “Questions” feature.

Questions will be answered at the end of the webinar.

Copyright © 2011 TK Carsites. All rights reserved. www.tkcarsites.com.

Annual Dollar Limits and Waiting Periods / Pre-Existing Condition Exclusions

For plan years beginning on or after January 1, 2014, employer group health plans may not impose annual dollar limits on essential health benefits, waiting periods of longer than 90 days, or pre-existing condition exclusions.

“Play or Pay” Employer Shared Responsibility

Employers with 50 or more full-time employees plus full-time equivalent employees, must offer affordable, minimum essential coverage of minimum value or potentially be subject to tax penalties.

Wellness Incentives

For plan years beginning on or after January 1, 2014, permitted wellness incentives increase from 20% of cost of coverage to 30% (up to 50% if the wellness program is established for the purpose of tobacco use prevention or reduction).Reduce employer costs of healthcareImprove employee engagement and accountability for healthcare costs

“Automatic” Enrollment & Nondiscrimination Rule

Pending Guidance – May Impact Effective Date and Type of ServicesAutomatic Enrollment: Employers with 200+ full-time employees must automatically enroll new employees in the employer’s group health plan. Nondiscrimination: Insured employer group health plans may not discriminate in favor of highly compensated employees..

Excise Tax on High-Cost Plans (“Cadillac Tax”)

January 2015If group health coverage exceeds certain thresholds, the employer will be subject to a 40% Excise Tax on the cost of benefits exceeding the applicable cost limits. The anticipated cost limits for 2018 are $10,200 for individual coverage and $27,500 for family coverage.

Small Group Coverage Reform

Includes changes to the existing rating methodology, provides certain plan-design limits on deductibles and out-of-pocket maximums, and features a comprehensive package of items and services known as “essential health benefits.”

Alternatives to Standard Healthcare Insurance

Consumer-driven health care (CDHC), are health insurance plans that allow members to use health savings accounts (HSAs), Health Reimbursement Accounts (HRAs), or similar medical payment products to pay routine health care expenses directly, while a high-deductible health plan (HDHP) protects them from catastrophic medical expenses.

Alternatives to Standard Healthcare Insurance

Self-insure by paying for your employees health care ( including buying “stop loss” insurance to protect the business from very high costs) Self-insured plans do not have to offer the “essential health benefits” that each state has defined, they are exempt from the annual insurance fee that insured small groups must pay, and they will not contribute to (or receive) state-based risk adjustments for insured small groups and individuals.

Employee Communications

Plan - Before you get started, define objectives, identify key stakeholders, and create a strategy and plan of action.

Tell the Truth- Employees see through and resent attempts at hiding benefit changes that can be perceived negatively.

Be Consistent: Determine key messages at the beginning and communicate them consistently.

Educate- Supervisors and managers have influence over employees and can be advocates or barriers depending on how you treat them.

Multiply- Reinforce key messages multiple times and across a variety of media in a coordinated way to avoid overwhelming the intended audience.

Get Control- Three Steps

1. Consider alternatives to your current plan

2. What options do you to drive down cost

3. Be ready for ACA provisions

Questions and Answers

Contact Information

14– KPA CONFIDENTIAL –

The recorded webinar and presentation slides will be emailed to you today including your local representative’s contact information.

www.kpaonline.com

kcarlson@kpaonline.com

866-228-6587