R&R Insurance Blog

In response to the financial crisis in 2008 and 2009, financial institutions of a certain size are required to undergo regular stress tests. These financial simulations were designed to determine a bank’s ability to withstand an economic crisis and support economic activity.

The pandemic of 2020 and current variant strains in 2021 have dramatically reshaped business and changed the way business operates and manages risk.

For many, their business is their largest financial asset. Should business owners feel comfortable their pre-pandemic approach to their insurance program will perform under a post-pandemic environment?

A few insurance simulations for consideration:

• Phishing, Ransomware Demands, Social Engineering and subsequent lost income, cripple your business. How does your policy respond for each loss scenario?
• Key components to your product are being delayed overseas, orders are backing logging and customers are cancelling orders? Is your business covered for these supply chain risks?
• Does my policy contain virus, bacteria exclusions or limitations?
• Have nuclear verdicts and social inflation rendered my limits of insurance inadequate?
• Do my employees understand the value of tele-medicine options now offered?
• Would a Wellness program improve employee morale, while help manage costs?

Insurance buyers should demand more than a low price quote or two from their agent or broker. If you broker is not asking these questions, along with many others, to “stress test” your current program, you are placing your largest asset at risk.

Real time insights, client focused solutions, custom designed around your business is what R&R does best. Please give us a call, or send us an email, and let an R&R Insurance Knowledgebroker stress test your current insurance program.

A new study regarding exercise and Medicare claims found that those individuals who are exercising before middle age save anywhere from $824 to $1,874 annually on health care after retirement. With people living longer in our society, think of the effects that could save an individual long term!

It’s no secret that physical activity lowers risk for serious chronic conditions, but despite knowing the significant benefits only half of Americans are exercising. Currently, chronic diseases are causing $0.75 of every $1 to be spent on healthcare. This could be avoided or reversed by being active, not smoking, not drinking, getting quality sleep, eating properly, etc.

Another past study shows that physically active older people spend less on health care than those retired due to needing fewer doctor’s visits and medication. While individuals who reported exercising moderately throughout their adult lives saved about 16% on healthcare costs compared to those who are sedentary, and those individuals in their 20’s that significantly focused on daily exercise saved an average of $1,874 on health care after age 65.

There is much more data in this article; however, we cannot deny the data concludes being active while young might have significant impacts on health care costs later. But remember, it is never too late to start!

Despite the vast distribution of COVID-19 vaccines, a challenge is still occurring within our healthcare system. Individuals with preventable chronic health conditions continue to be a growing concern.

According to the Centers for Disease Control and Prevention (CDC), 60% of adults have one chronic condition and 40% of adults have two or more chronic diseases.

What’s interesting is majority of these chronic diseases can be avoided or reversed through things like adjusting lifestyle factors such as quitting smoking, getting your an annual exam, physical activity, proper nutrition, etc.

As we know, the effects of COVID-19 caused individuals to cancel non-emergency care services for months. This has caused signs of chronic disease to advance due to a lack of addressment in an earlier time frame. In fact, the CDC reported, 32% of adults, since last June, have reported that they avoided medical care due to COVID-19 and an additional 12% delayed going to urgent care.

To help combat this, providers have made the switch to integrating remote tools like telehealth, monitoring, and phone apps to help manage chronic diseases from home. Nevertheless, more developments are occurring to meet the needs of the individuals who are suffering. Specifically, the chronic conditions to watch out for are from individuals engaging in behaviors like overeating, being sedentary, drug or alcohol use, and smoking. Stress and anxiety levels can also play into an increase of symptoms.

With the surge finally beginning to subside, healthcare professionals highly recommend individuals get back to their scheduled visits. Especially since some conditions like diabetes and hypertension require continuous care and should not be delayed or symptoms will get progressively worse.

For more information about the chronic disease wave looming post-pandemic, please view this post.

May is National Stroke Awareness Month. According to the American Stroke Association, stroke is the number two cause of death worldwide and the leading cause of disability. That means one in six of us will experience a stroke in our lifetime.

In addition, approximately 80% of strokes are preventable. By controlling high blood pressure, not smoking, controlling blood sugar, implementing a healthy nutritional lifestyle, being physically active and reducing obesity are all some of the lifestyle recommendations one can implement to prevent a stroke. If you are curious about your risk factors for a stroke, feel free to take a minute to complete this quiz.

In terms of gender, strokes are more prevalent in women, so please consider viewing this infographic for risk factors and statistics to consider. In addition, an important concept to remember is F.A.S.T.

It’s good to be familiar with the following as they are the symptoms that indicate a Stroke:

• Face drooping
• Arm weakness
• Speech difficulty
• Time to call 911

If you see someone with any of the indicators above or you yourself are experiencing these, it’s time to call 911. This is an important step that can make a tremendous difference in terms of recovery.

For many more resources and quizzes relating to strokes, please visit the American Stroke Association.

Additional Resource: Heart at Work, AHA

On May 10, 2020, the IRS released Revenue Procedure 2021-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2022. The IRS is required to publish these limits by June 1 of each year.

These limits include:

• The maximum HSA contribution limit;
• The minimum deductible amount for HDHPs; and
• The maximum out-of-pocket expense limit for HDHPs.

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

Eligible individuals with self-only HDHP coverage will be able to contribute $3,650 to their HSAs for 2022, up from $3,600 for 2021. Eligible individuals with family HDHP coverage will be able to contribute $7,300 to their HSAs for 2022, up from $7,200 for 2021. Individuals who are age 55 or older are permitted to make an additional $1,000 “catch-up” contribution to their HSAs.

The minimum deductible amount for HDHPs remains the same for 2022 plan years ($1,400 for self-only coverage and $2,800 for family coverage). However, the HDHP maximum out-of-pocket expense limit increases to $7,050 for self-only coverage and $14,100 for family coverage.

You can download our convenient chart here: HSA HDHP Limits Increase for 2022

It is hard to believe we are already four months into the New Year! Employers are still adapting and elevating their wellness programs for the remainder of the year.

So, what are the employee wellness trends to still consider for 2021?

We know that COVID turned everyone’s world upside down and an emphasis is now being placed on holistic wellbeing and mental health. The Business Group on Health reported from their 2021 large employer plan design survey that:

“45% of employees consider health care strategy to be a critical component in overall workplace strategy which was at 36% in 2019.”

Therefore, a greater focus on holistic wellbeing is needed instead of only focusing on physical activity. This, in turn, creates the need for programs to be more than just a step challenge, walking club, etc. They must incorporate the eight dimensions of wellness to round out a holistic wellbeing strategy for employees.

Companies that are switching to this mentality are focused on employee satisfaction and retention. In addition, by expanding mental health resources, it will help employee’s account for suffering that has occurred from the pandemic. The Standard says, “80% of employees report feeling highly distressed due to the pandemic.” Moreover, there is also an increase in employee assistance programs (EAP’s).

Those who do not have an EAP are researching one and those that have an EAP in place are updating the number of free sessions employees have to utilize. Employers are wanting to provide access online for convenience, as well as recognizing mental health issues are occurring and conducting anti-stigma campaigns around it.

Lastly, expanding financial wellness resources is among another trend for 2021. MetLife says, “81% of employees report feeling major financial stress since COVID.” The value to recognize here is that it’s not only your soon-to-be retirees who can benefit from financial wellness but all of your employees.

Overall, if you are still wondering how to enhance your wellness program for 2021, start with considering one of the three-wellness trends employees are searching for and interested about.

As part of the American Rescue Plan Act signed March 11, 2021, $28.6 billion is allocated to the Restaurant Revitalization Fund program.  Monies from this fund are to be paid as tax-free grants to restaurants, bars, and associated food and beverage related businesses in order to provide them with compensation for their reduced revenues of 2020.

Generally speaking, restaurants can apply for grants that are equal to 2020 gross revenue minus 2019 gross revenue. For businesses in operation for all of 2019 and 2020, the maximum grant size will be $5 million for restaurants and $10 million for restaurant groups. Grant funds will not be taxed like income.

According to Forbes.com, "In addition to qualifying as an eligible entity, a business must also show that they have suffered a pandemic-related loss. In order to do so, an entity only needs to show that they had less gross receipts in 2020 than they did in 2019, but PPP loan proceeds are considered to be revenues for purposes of this calculation.

Therefore, under this new law, if your business kept the same pricing, sold one less side order of fries in 2020 compared to 2019, and received no PPP loan, your restaurant has suffered a pandemic-related loss."

Quick takes for the Restaurant Revitalization Fund:

• Amount given to restaurant in form of grant, not a loan. Does not need to be paid back if used for operating expenses. Grant is nontaxable.
• Definition of restaurant as follows: “Food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample or purchase products, or other similar place of business which the public or patrons assemble for the primary purpose of being served food or drink.”
• Does not qualify if:
  1. State or local government operated business
  2. As of March 13, 2020 owns or operates more than 20 locations regardless of whether the location operates under same or different names
  3. Has a pending application for or has received a Shuttered Venue Operators gram
  4. Is a publicly traded company
• Determining amount of grant for existing restaurants:
  1. Gross receipts of restaurant in 2019
  2. Less gross receipts of restaurant in 2020
  3. Less amount of any PPP loan from first or second draw
• Apply at SBA.gov. No guidance yet on the application process from the SBA
  1. Priority in awarding grants (1) Women owned (2) Veterans (3) socially economically disadvantaged small business. Grant process will be open for 21 days.
  2. Max grant of $10,000,000 per application and grant limited to $5,000,000 per physical location.
  3. Eligible entity makes good faith certification that uncertainty of current economic conditions makes necessary the grant request to support its ongoing operations.

Is your restaurant still looking for tips on opening safely?  Download our complementary re-opening checklist for restaurants.

 

Sources: Forbes.com, USChamber.com

March is National Nutrition Month; the purpose of this theme is to help the public remember the importance of good nutrition and a healthy eating plan. Understanding food labels is the key to leading a healthy lifestyle. It is good to keep the following aspects in mind when shopping and consuming to have the most beneficial impact on your lifestyle:

• Food labels provide key information such as serving size, calories, total fat, saturated fat, cholesterol, protein, carbohydrates, and vitamin content.
• Food labels also contain the list of essential ingredients that may be crucial to utilize if you follow a diet or have food restrictions.
• They can help you cut back on a certain component such as knowing the acceptable amount of sodium or sugar to not exceed for a day.
• They can also help keep you safe with the storage and cooking instructions they provide and detect ingredients that could cause a harmful reaction.
• Food labels can also aid in helping support local food producers based on the food’s origin.

For more information about serving size, calories, percent daily values, and nutrients as well as how to get the most out of your food labels, click here. Feel free to share this infographic with anyone else who would value the information.

February is recognized as American Heart Health Month. Your heart is one of the hardest-working muscles in your body and all of that work can take a toll. Not treating your body right can escalate your risk for serious health issues, like heart disease.

Heart Disease is one of the leading killers in the United States for both men and women, accounting for 1 in 4 deaths annually. That is about 647,000 deaths a year according to the Centers for Disease Control and Prevention (CDC).

Key ways you can help prevent heart disease:

• Eat foods that are low saturated fat, trans fat, and sodium
• Get at least 2.5 hours of moderate-intensity aerobic activity every week. Click here for three suggested workouts to improve heart health
• Keep an eye on your cholesterol
• Reduce your stress levels
• Avoid smoking and excessive alcohol consumption

While in many cases heart disease can be prevented, there are certain uncontrollable factors that increase your risk, including age, as well as sex and family history. For more in-depth information on heart disease and prevention, read more here, and always consult with your doctor.

To learn more about how you can help spread awareness within your community, click here.

Top three ingredients for a Healthy Heart:

1. Olive oil - “4 or more tablespoons per day can lower your risk of heart disease”. Always make sure your extra virgin olive oil is labeled (EVOOs) and check out your local farmer’s market for the best bargain.
2. Whole grains - Always check for the whole grain stamp of approval. There are specific guidelines for a product to produce that label. Whole grains include items such as quinoa, oats, barley, ect. Try replacing one of your refried grains, such as white rice, with a whole grain.
3. Seasonings - Stop using excess salt, pre-packaged seasoning, and pre-packaged dressing. Instead, consider other options such as dry mustard, hot peppers, or citrus juice.

For a more in depth look on how to help keep your heart healthy, read here.

 

Source: https://engagementsource.go365.com/en/health-and-wellness-library/nutrition-and-weight-management/three-best-ingredients-for-a-healthy-heart

 

On January 7, 2021, the Equal Employment Opportunity Commission (EEOC) released two long-awaited proposed rules on wellness programs under the Americans with Disabilities Act (ADA) and the Genetic Information Non- Discrimination Act (GINA). These Notices of Proposed Rulemakings (NPRM) have been cleared by the Office of Management and Budget and sent to the Federal Register for publication and public comment.

Back in October of 2016, the American Association of Retired Persons (AARP) sued the EEOC on the grounds that the EEOC’s wellness rules incentive at the time of 30% was too high a penalty for nonparticipating workers – and therefore could not be considered as “voluntary”. In December of 2018, a federal judge ruled that the EEOC failed to justify its 30% cap on cost incentives for participating in a wellness program and as a result, effective January 1, 2019, vacated the incentive limit. Employers have been waiting ever since for further guidance as to permissible incentive limits.

The EEOC’s Latest Proposed Wellness Rules

What Has Been Proposed?

The proposed ADA wellness rule imposes a “de minimis” incentive limit for most wellness programs that include disability-related inquiries (e.g. a health risk questionnaire) and/or medical examinations (e.g. a biometric screening).

• An employer may not offer more than a “de minimis” incentive (such as a water bottle or gift card of modest value) in exchange for an employee participating in the wellness program.
• There is an exception if the program is a “health-contingent wellness program”(subject to HIPAA’s rules and incentive limits).
  • Example: If the wellness incentive is conditioned on biometric screening results meeting health-contingent outcomes (such as having cholesterol or BMI within a certain range or improving a certain percentage compared to the prior year’s screening), then it must still comply with the ADA as a medical exam but can offer more than a “de minimis” incentive due (subject to HIPAA’s rules and incentive limits).

While health contingent programs have fallen out of popularity throughout the years, these proposed rules, if approved, suggest that wellness vendors would need to make changes to guarantee EEOC compliance to their wellness programming.

The proposed GINA wellness rule likewise “would limit wellness programs to offer a “de minimis” incentive to all family members, not just spouses, in exchange for family members providing information about their manifestation of diseases or disorders.

The proposed rule also continues to prohibit any incentive tied to employees answering questions about their own genetic information. However, there is a small exception allowing a “de minimis” incentive in exchange for family members (including spouses) responding to inquiries about their own manifestation of diseases or disorders.

What is de minimis?

The proposed rules are significantly different from the previous rules regarding wellness incentive limits. The guidance provides that a “de minimis” limit permits only nominal incentives such as a water bottle or a gift card of modest value. The proposed rules also state that a $50/month medical premium surcharge, reimbursement of annual gym membership fees, or free airline tickets would not be considered “de minimis.” Hopefully, further clarification on what will meet the definition of “de minimis” for these purposes will be provided in the final rule.

What’s Next?

These Notices of Proposed Rulemakings (NPRM) have been cleared by the Office of Management and Budget and sent to the Federal Register for publication and public comment. It is important to note that these NPRMs have not been finalized and may not be relied upon.

Comments on the NPRMs are due 60 days after they are published in the Federal Register – which as of the date of this article has not yet occurred. Once the NPRMs have been published on the Federal Register, employers having concerns about how these rules may impact their wellness programs are encouraged to take advantage of the 60-day public comment period. Members of the public will be able to submit electronic comments about the proposed rules at www.regulations.gov in the rulemaking dockets RIN 3046-AB10 and RIN 3046-AB11.

With a new Presidential Administration upon us, it is unclear what impact that may have on these proposed rules. Currently, Republican appointees hold a 3-2 edge at the EEOC until at least July 2022. There is some speculation that the new Administration may put these new rules on hold until post July 2022 or that they may change certain aspects of the final rule when issued, depending on the comments the EEOC receives. At this point, we do not know what impact this may have on moving this forward.

R&R will continue to monitor regulatory guidance and offer meaningful, practical, timely information to you. We welcome the opportunity to eventually discuss what type of wellness program and incentives will best promote good health for your employees and comply with ADA and GINA requirements once finalized.

Resources:
EEOC Proposed Rule for ADA - Proposed Rule - Amendments to Regulations Under the Americans With Disabilities Act | U.S. Equal Employment Opportunity Commission (eeoc.gov)

EEOC Proposed Rule for GINA - Proposed Rule - Amendments to Regulations Under the Genetic Information Nondiscrimination Act of 2008 | U.S. Equal Employment Opportunity Commission (eeoc.gov)