R&R Insurance Blog

Most employers - and you may be one of them - don't completely understand Employee Retirement Income Securtity Act (ERISA), how it impacts business and employees, and the possible risks it presents. Ask yourself the following questions:

1. If you have over 100 enrolled participants in any benefit, have you ever filed a Form 5500 with applicable schedules?
   ERISA imposes an $1100 day penalty for each day this filing is late up to amximum penalty for large employer (over 100) of $30,000 annually.
2. If yes, have you ever completed and distributed a SAR (Summary Annual Report)?
3. Have you ever been subject to a DOL audit?
   Audits can be triggered through a DOL investigation reproted through other agencies (IRS), through review of form 5500 filings and most often through Employee reporting or lawsuits.
4. Do you have other ERISA plans such as a 125 plan with FSAs (flexible spending accounts) or HRAs (helaht reimbursement accounts)?
   Health FSAs and HRAs are also ERISA plans and must meet the same documentation and filing requirements.

Did you answer No to questions 1 or 2? Did you answer yes to questions 3 or 4? If so, you may be in violation of Title I of ERISA that governs health and Welfare Benefit plans.

If you have any questions regarding your ERISA compliance, obligations or anything regarding your health insurance or benefits packages; R&R knowledge broker Jane Shevey can help!

Has your company considered the link between obesity and occupation injury?

Journal of Obesity published a recent study by Ian Janssen, et al., which examines this relationship. A sample of 7,678 adult Canadian workers, were placed into normal weight, overweight, and obese categories based on their BMI body mass index. Findings show obese workers were more likely to report occupational injuries, with a great frequency of strains and sprains, along with falls and overexertion injuries. Interestingly, workers 40+ years, female workers and workers in sedentary occupations were particularly vulnerable. While there was not significant increased risk found with the overweight individuals, the impact of loss productivity, absenteeism and overall health costs should be further studied.

At R&R, we are seeing more and more small businesses in Wisconsin having serious discussions about the link between obesity and workplace injury. On top of that – when you factor in wellness programs that will increase the health and longevity of employees and their families – small businesses can have a lot control over their health insurance costs and the productivity of their employees - control that they don't know they have. At R&R Insurance, we call this program WellCompForLife! Join the WellCompForLife discussion on LinkedIn!

For more information about WellCompForLife, about self-funding your health insurance plan, health care reform or basic employee benefits questions, contact knowledgebroker Riley Enright

April 30^th was the deadline for the Wisconsin health insurers to motion if they will join the exchange. While Gov. Scott Walker rejected a state run exchange, insurers still needed to file their plan designs for the federally run exchange. However, information on their plan designs and rates will not be released by the Office of Commissioner of Insurance until July. With enrollment for the exchange scheduled to start in October for January 1, 2014 renewals; this information is essential to companies considering whether to continue offering medical benefits or to send their employees to the exchange.

Companies with 50+ employees are those mainly looking toward the exchange. The penalty for not providing health insurance is $2000-$3000 per employee per year; much less than paying for health insurance with double-digit increases on the horizon.

Reasons for the high premiums may be because of the following inclusions:

• High risk profiles for those in the exchange that other insurers won't cover.
  • Pre-existing conditions
  • Members in the Wisconsin Health Insurance Risk-Sharing Plan (HIRSP)
• New limit on ratings based on age.
  • Instant hike rates for people younger than 50

Wisconsin Business; for more information regarding R&R’s Play or Pay calculator; contact Jane Shevey.

Claim analytics reports can target high risk claims and provide ideas to lower health care costs. The average employer will pay an additional $3000-$4000 annually per risk per employee, so it is important that a company works with an insurance agent to strategize on the following:

• Isolate problem areas
• Customize a wellness program to focus on prevention and high risk reduction
• Educate employees on the effects of a negative lifestyle
• Capture premium savings by making plan changes

WellCompForLife is R&R's stretigic method to controling health care costs. For more information, contact Knowledge Broker Laura Stehno today.

Obtaining claims analytics reports and identifying areas of concern shown in the claims history can easily be done by your insurance angent. Insurance agents are the key to guiding large employers on the best approaches for their company and develop cost-savings options. Using analytical tools, such as a benchmark, will also help a company see how their plan matches up in their industry and size.

R&R's stretigic method to controling health care costs is WellCompForLife. Contact a R&R Knowledge Broker today to develop your cost-saving options.

Collecting claims analytics reports and finding trends are the first steps to keeping your health care costs under control. But what comes next?:

• Engage employees to participate in a wellness program by offering incentives.
• Participate in a health risk assessment and receive a reduction in your monthly premiums.
• Provide educational programs on general nutrition, healthy eating and stress management.
• Work with Managers/Supervisors to increase their support and change the culture to motivate employees to participate.

R&R's stretigic method for controling health care costs is WellCompForLife. Wisconsin Businesses, for more information regarding R&R's WellCompForLife, contact Laura Stehno.

Evaluating claims analytics reports have become the solution for employers who are seeking ways to regain control of their rising health care costs. Rapidly rising health care costs have consumed company’s profits and loss statements. So employers should identify problem areas, implement wellness programs and make necessary plan changes.

What medical claims impact rising insurance costs? The most commonly seen medical claims fall into six major categories:

• Asthma
• Coronary heart disease
• Depression
• Diabetes
• High blood pressure
• Obesity

Wisconsin Businesses, for more information on ways to regain control of your rising health care costs; contact a R&R Knowlege Broker today.

ERISA is one of those areas of HR administration that is probably not high on the list of most HR practitioners' favorite things to do. And, honestly, many simply don't have enough people to spend sufficient time on plan issues. The Department of Labor has recently hired more than 1,000 new employees to - you guessed it - make sure you are in compliance!

An increased chance of an audit means that HR departments need to confirm these things:

• The people running the plan know the plan document inside and out
• Plan operations must be in compliance with the plan document
• The plan document must be in compliance with laws and regulations -- all required amendments must be made.

Ask yourself these questions:

1. Do you know if you offer ERISA health and welfare benefits to your employees?
2. Do you have an ERISA plan document?
3. Do you know what needs to be included in your ERISA plan document (known also as an ERISA wrap-document)?

Here's a link to the full article found in HREOnline.com. Should you have any questions regarding your ERISA compliance or anything regarding your health insurance or benefits packages, please contact knowledgebroker Jane Shevey.

Assume for a minute a disaster strikes your community – a tornado – maybe a major ice storm – an industrial explosion – or a fire in a water/sewer facility.

What is your next step to keep your municipal operations functional?

Take a look at this heart wrenching video of Kentucky Mayors reliving the January 2009 Ice Storm – the largest to ever hit the state.

What do your residents want?

1. Toilets that flush.
2. Water pressure in faucets.
3. Communication and information on what’s happening.
4. Police and fire services.

The League of Wisconsin Municipalities Insurance Trust (Trust) has purchased a service (no cost to your community) that will do the following:

• Arrange for priority delivery of emergency generators, communication equipment and temporary office space
• Assistance in orchestrating logistics and connecting the equipment
• All within 24 – 48 hours of the event

Yes – You may already have a contingency or disaster plan – but, does it include information on generator hook ups and vendors that guarantee equipment, fuel and service for you?

Yes – You have access to the County Emergency Disaster Coordinator – so do all the other county municipalities, schools and private businesses.

The Trust has teamed with a nationally recognized Disaster Recovery Service: AGILITY RECOVERY, which provides the assets and resources to service Wisconsin LWMMI Insureds, including generators, satellite voice and data connectivity, computers and portable office units. Maybe even more important, Agility will help your staff create or enhance your existing Disaster Plan, thereby ensuring the right pieces of the puzzle are in place during the chaos of a disaster.

What do you need to do? Direct your staff to contact Sandy Hagen or Dennis Tweedale at 608-833-9595 or sandra@lwmmi.org for more information. If you are not part of the LWMMI Trust program, contact knowledgebroker Rick Kalscheuer for more information.

The Trustees thank you for participating in the LWMMI Insurance Program. Our mission is to work together, ensuring Wisconsin Municipalities provide the quality services our residents expect.

More images from the 2009 Kentucky Ice Storms