Articles for employers

Employee benefits are designed to make life easier for your hard-working team. But selecting, implementing and maintaining benefit programs can be a daunting task. Our Inside Track series offers a closer look at the products, features and regulations that drive the benefits business.

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Supporting employees with cancer: Best practices for employers (PDF)

A cancer diagnosis is one of the most challenging things a person can face. In addition to the obvious physical effects, cancer can affect a person’s mental health, energy, productivity, friends, family and coworkers. Employers face challenges of their own when assisting employees with cancer. While sympathy and concern for a sick employee is always the top priority, employers must also contend with absenteeism and the emotional and psychological toll of a sick coworker and friend. As an employer or HR professional, how can you best support employees with cancer diagnoses and manage your benefits efficiently?

Accelerated death benefit options (PDF)

Most people associate life insurance with a lump-sum payment to beneficiaries at the time of an insured’s death. But there are times when the policy’s death benefit may serve the needs of insureds while they are still alive. An “accelerated death benefit” is an option found in many group life insurance policies. The provision allows terminally ill insureds to access a portion of their death benefit to help cover expenses such as health care and nursing homes.

Social Security Disability Insurance (SSDI): Apply early for maximum benefits (PDF)

SSDI can provide important support for disabled employees—even if they eventually return to work. To maximize their potential benefits, employees on employer-sponsored disability leave should submit SSDI applications as soon as possible, even if they assume their disability is temporary. Fortunately, many carriers utilize vendors who specialize in assisting employees with this time-consuming process. Learn more about SSDI and how vendors can help.

Understanding the “three-year look-back” rule (PDF)

Disability insurance payments may be considered taxable income, and in some circumstances, taxes may be owed on only a portion of the benefits. In these cases, the percentage of benefits to be taxed is calculated using an IRS formula known as the “Three-Year Look-Back.” Understanding this important rule can help employers better discuss the tax implications of disability benefits with employees.

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Imputed income and the straddle rule (PDF)

Group term life insurance is a benefit most employees don't have to think about until they need it. But employers need to be aware of the potential tax implications of employer-sponsored group term life insurance coverage with benefit amounts over $50,000. Employers are responsible for including this taxable income—known as imputed income—as wages on employee W-2 forms.

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Navigating family and medical leaves (PDF)

Since the introduction of the federal Family and Medical Leave Act (FMLA) in 1993—and the subsequent addition of state and municipal leave programs—employers have had increased responsibility for managing leaves of absence for their employees. That's why many employers look to outside resources to help manage their leave administration platform.

Calculating premium for group disability insurance (PDF)

Because employers must calculate their own premiums based on their covered employees' salaries, it's important to understand the formulas that must be used to correctly calculate these premiums. While there may be some variation, most carriers use two industry-standard formulas to calculate long- and short-term disability premiums. Take a closer look at each type of policy and how their premiums are calculated.

Summary plan descriptions (SPDs) under ERISA (PDF)

Most employers and benefits professionals are familiar with the federal Employee Retirement Income Security Act—or ERISA. In addition to employer-sponsored retirement and health care plans, ERISA rules also apply to “employee welfare” plans such as group life and disability policies.

Waiver of premium benefits: questions answered (PDF)

Group life insurance provides affordable coverage for employees, but what happens if employees can no longer work because of permanent disabilities? Waiver of premium riders offered with many carriers’ group life insurance products allow employees who become permanently disabled to continue their life insurance coverage without paying premiums. The process for obtaining waiver of premium benefits varies, so here are some of the questions you should consider when evaluating group life insurance carriers.

Supporting employee's mental health in the workplace (PDF)

Mental health conditions like depression can have a significant effect on employee productivity and absenteeism. Employers can lessen the impact of mental illness in the workplace by identifying potential mental health concerns and following a few best practices.

The ADA and the “100% rule” (PDF)

Under the Americans with Disabilities Act (ADA), employers are expected to make reasonable accommodations to assist employees dealing with disabling conditions. This typically prevents employers from requiring that an employee be 100% healed before returning to work. Fortunately, resources are available to help employers navigate this complex issue.

10 aspects of group life administration that all employers should understand (PDF)

Group life insurance provides employees with valuable benefits offered conveniently through the workplace with simple enrollment procedures. But for employers who offer group life coverage, there are many administrative details to consider and understand. Failing to consider these details may result in unintended consequences for an employer.

The value of return-to-work programs for group disability plans (PDF)

An employee’s time away from work due to a disabling illness or injury can have practical and financial implications for an employer. That’s why many insurers embed “return-to-work” programs into their group disability plans. An efficient return-to-work program can help contain the costs and reduce the duration of a disability—a win-win for both employers and employees.

Pre-existing condition exclusions (PDF)

Group disability insurance policies typically contain provisions that exclude coverage—or limit the payment of benefits for claims—based upon certain medical conditions that existed before an individual is covered under a plan. When considering disability insurance coverage, it is important to understand how these exclusions or limitations will affect your business and your employees.

Maintaining proper beneficiary designations (PDF)

Life insurance can be tailored to fit a wide array of financial needs, but the ultimate goal for most people is simple: passing along a death benefit to selected beneficiaries in the event of the insured’s death. That’s why designating beneficiaries is not a step to take lightly. Here’s what employees should know to avoid delays in payouts or benefits not being paid out as intended.

Understanding evidence of insurability (PDF)

Applying for group life insurance is generally a simple process. However, when an employee’s requested coverage exceeds the group policy’s guaranteed issue amount, “evidence of insurability,” or EOI, may be requested by the insurer. EOI requirements vary by product and provider, but most carriers rely on similar forms and tests to obtain needed information. 

Defining “disability” in group insurance contracts (PDF)

There is no one-size-fits-all definition of “disability.” Because the scope, severity and duration of employees’ conditions vary, insurers look at several components when determining whether an individual is disabled according to the terms of a group contract. 

Coping in a complex world (PDF)

The realities of day-to-day life can have a larger effect on employee performance and morale than many employers realize. Employee assistance programs (EAPs) provide resources employees may need to cope with personal problems that could ultimately affect your business.

Conversion vs. portability (PDF)

Employer-sponsored group life insurance is often the only financial protection employees have. As a result, many workers are concerned about losing this coverage when they leave their current employer. Fortunately, most group life insurance policies include provisions that allow employees to either convert their coverage to a permanent personal policy, or to temporarily continue their existing coverage. 

Disability benefits and the “FICA match” (PDF)

Disability income insurance can help employees when they need it most. Since disability benefits may be considered taxable income, employers must be prepared to report and match any Social Security and Medicare taxes—commonly known as FICA—paid by employees when these benefits are paid. Get to know the rules and regulations regarding the “FICA match.”

Understanding options for pregnancy-related leaves (PDF)

Pregnancy is an amazing, yet challenging, time of life. Fortunately, many employers offer short-term disability income insurance that provides replacement income for time away from work due to sickness or injury, including time away for pregnancy-related conditions. Review some of the ways short-term disability coverage can help support pregnant employees and how these benefits may complement federal and state-specific leaves.

Continuity of coverage when changing group life carriers (PDF)

A change in group life insurance carriers is a seamless—perhaps even unnoticed—process for most workers. However, employees who are not actively at work on the new policy’s effective date could find themselves cut off from life insurance coverage. Fortunately, many carriers include continuity of coverage provisions in their contracts to help protect these employees.

Improving the Open Enrollment Experience (PDF)

Even if you’ve meticulously researched providers, budgeted the costs and signed the contracts, your employee benefits package will be less valuable without a great open enrollment. Here are some tips to help ensure your next one is a success.

Five Ways Voluntary Benefits Can Support Employee Financial Wellness (PDF)

Discover how these flexible products can help reduce the financial burden for employees.

Critical illness insurance (PDF)

Medical emergencies can happen to anyone at any time. While medical and disability insurance help defray the cost of care and potential loss of income, additional out-of-pocket costs can add financial pressure to an already difficult situation. Critical illness insurance is designed to help with unplanned expenses that can add up quickly when a medical crisis hits.

Maximizing the potential of Health Savings Accounts (HSAs) (PDF)

Whatever direction health care reform takes in the future, health savings accounts—or HSAs—appear positioned to take a larger role. Like a 401(k) for medical expenses, these tax-advantaged savings accounts are designed to help employees accumulate money to spend on qualified medical costs. Here are some of the tax advantages and other benefits HSAs can offer.

Group accident coverage: Expense-based vs. scheduled benefit (PDF)

For many employees, the cost of treatment after an accidental injury can make a bad situation worse. Group accident insurance is a relatively simple and affordable employee benefit that can help relieve some of the financial pressure from hospital stays, doctor visits, X-rays, physical therapy and more. Learn why groups should consider adding accident coverage to their employee benefits package and the advantages and drawbacks of two different policy types—expense-based and scheduled benefit.

Value-add programs can help employees save (PDF)

Employees are used to health care benefits taking a bite out of their paychecks. But what about benefits that help manage or reduce expenses? That’s the idea behind many types of value-add programs that can be included with employee benefit plans. Here’s a review of some frequently used programs that can help employees make the most of their benefits coverage.

Financial wellness at work with voluntary benefits (PDF)

In today’s high-deductible marketplace, employees are expected to pay a growing share of their health care's plan out-of-pocket expenses. That’s why it’s important for employers to balance a cost-effective benefits plan with coverage that meets the needs of employees and their families. Voluntary benefits such as disability, accident and critical illness coverage can help employers ensure their workforce stays financially well while managing the bottom line.

Improving the Open Enrollment Experience (PDF)

Even if you’ve meticulously researched providers, budgeted the costs and signed the contracts, your employee benefits package will be less valuable without a great open enrollment. Here are some tips to help ensure your next one is a success.

Gene & Cell Therapy: Transforming health care at the foundational level (PDF)

While health care innovation is nothing new, the pace at which science and technology are changing medicine today is unparalleled. Nowhere is that more evident than in the areas of gene and cell therapy.

When to consider lasers on a stop loss policy (PDF)

Stop loss coverage reimburses the plan when high-cost claims exceed a designated amount. The cost of coverage is determined by several factors, but one that’s frequently misunderstood is an option known as "lasering".

Resources to keep medical claims in check (PDF)

As the price for medical care continues to rise, more employers are self-funding their employee health care coverage and using stop loss to protect their benefit plans against large or catastrophic claims. Learn how stop loss carriers and other partners can help mitigate excessive claim charges before they hit the books.

Minimizing your self-funded plan’s health care risk (PDF)

Stop loss is an essential purchase for employers who self-fund their employees’ medical benefit plans. If you're considering new coverage or a change at renewal, here are some questions you should consider during your evaluation process.

Advance funding for stop loss claims (PDF)

Employers who self-fund their employees’ medical coverage typically rely on stop loss to help them cover large and unexpected claims. But stop loss is a reimbursement, and the employers must make the initial claims payments themselves. Fortunately, many stop loss carriers include advance funding provisions in their contracts that can accelerate the reimbursement of qualifying catastrophic claims.

Stop loss: What matters to carriers and employers (PDF)

Stop loss helps protect employers who self-fund their medical plans from the financial risk of catastrophic claims. To secure the best stop loss coverage for company’s needs, it may be instructional to understand not only what employers should look for in a stop loss carrier, but also what carriers look for when pricing and evaluating the risk they are assuming.

High-cost pharmaceuticals and their effect on self-funded medical plans (PDF)

In this issue of the Inside Track, we’ll provide a general overview of high-cost pharmaceuticals and discuss how charges for these types of prescriptions can affect self-funded medical plans.

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Navigating enrollment technology (PDF)

Benefits enrollment and other HR functions are important to any business and the employees who work for them. Learn about a growing array of technology solutions that are available for employers of all sizes to streamline and simplify the complexities of HR administration.