Archive for the ‘Benefit Resource’ Category

BRI – Adapting Benefits to The Changing Workforce

While COVID-19 has pushed many companies to offer greater flexibility around where employees work, more adaptation is required to meet the needs of today’s evolving workforce. Companies must consider not just a hybrid or fully remote work model, but also their benefits package.

With home, health, and work stress mounting, employees want more support from their employers to manage the changes and stress from COVID-19. By providing that support and enhancing benefits packages with Specialty Accounts, employers can better meet the employees’ needs, attract and retain talent, and drive business recovery.

Specialty Accounts

• Can be designed to cover a wide variety of expenses.
• Allow employers to set eligibility limits, how the account is funded, and whether funds roll over, etc.
• Enable a maximum spend per person over a certain period (e.g., one month) to control costs.

Workplace Ideas Employees Will Love

Cover Employee Work Essentials

• Reimburse employees’ internet expenses. Reimburse the full bill regardless of price or set the maximum reimbursement amount to the standard cost in their area for a basic plan (e.g., $50).
• Reimburse other essential job-related expenses such as electricity and office supplies.

Design an Alternate Commuter Benefit Program 

With fewer employees commuting every day, switching to a flexible benefits provider can be beneficial with a hybrid work model. Or use a Specialty Account to cover other commuting-related expenses.

Specialty Account plan options outside the scope of a pre-tax commuter benefits plan:

• Reimburse for the cost of gas to/from work.
• Create a generalized micro-commute/last-mile program.
• Design a walk/bike to work incentive program.
• Reimburse for bicycle sharing programs.

Wellness/Well-Being

Wellness Accounts are one of the most popular Specialty Account programs, and for a good reason: a healthy workforce = reduced medical costs and higher productivity. Consider expanding beyond the standard gym/fitness reimbursement. Create a general well-being account and cover:

• Subscriptions to fitness apps (Apple Fitness, Headspace, MyFitnessPal, etc.).
• Mental health services, including mental health/therapy apps.
• Weight-loss meal delivery kits (e.g., Nutrisystem).

Meal Services

Having everyone in the office makes it easy to treat employees to something delicious. Whether it’s early-morning breakfast, sweet treats, or a full catered lunch, it’s a great way to show employees you care.

With meal delivery services, employees can choose what they want to eat and from whom. Here are some options:

• Reimburse for meal-kit services (HelloFresh, Blue Apron, etc.).
• Cover the costs of one or more food delivery platforms (DoorDash, Grubhub, Uber Eats, etc.).
• Create a small business food plan to encourage employees to shop local.
• Provide a general meal-delivery credit each month for all the above.

Adapting to the changing workforce can be easy with Specialty Accounts. To learn more, visit Benefit Resource Inc.

Contact us at 800.696.4543 or info@claremontcompanies.com for assistance when you’re ready to enroll a group in a BRI Specialty Account.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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IRS Releases COBRA Subsidy Guidance

Last week the IRS published guidance on the COBRA Subsidy introduced in the American Rescue Plan Act. BRI has produced a summary of the guidance to help employers, brokers, and administrators better understand and manage the subsidy.

COBRA Subsidy FAQ Key Takeaways

• Employers need to consider facts and circumstances when determining if a termination was voluntary or involuntary. (Questions 24-34).
• Employers who have fallen below the employee count threshold for COBRA but who were subject to COBRA during the lookback period are required to offer a subsidy (Question 45).
• Employers who are not subject to Federal COBRA but are subject to state COBRA requirements are not required to provide a subsidy. (Question 52)
• In general, if premiums were subsidized by the employer, only portions which were payable by the Assistance Eligible Individual are eligible for a Federal subsidy (Question 64).
• Employers who violate COBRA rules could be subject to penalties equal to $100 per qualified beneficiary or $200 per family for every day that the COBRA rules are violated.
• Eligibility and various scenarios are provided in IRS Notice 2021-31.

BRI Resources

• COBRA FAQ Summary
  Includes: Eligibility, Notifications & Election Periods, Premiums & Billing, Administrative Procedures & Actions, and Other Special Considerations
• Flowchart: Am I Eligible for The COBRA Subsidy?
• Legislative Frenzy Webinar and Slides
• Additional COBRA Subsidy materials.

To learn more, visit the U.S. Department of Labor (DOL) Employee Benefits Security Administration and the U.S. Department of Health & Human Services (HHS).

Contact us at 800.696.4543 or info@claremontcompanies.com for assistance when you’re ready to enroll a group in a BRI plan.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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BRI – Stop Buying These 3 Products with FSA Funds

The passage of the Coronavirus Aid, Relief, and Economic Security (CARES) act on March 27, 2020 expands how you can use Flexible Spending Account (FSA) and Health Savings Account (HSA) funds. However, FSAs do not allow certain types of purchases, including the three mentioned below.

Products Not to Buy with FSA Funds

1. Masks

Even though recommended by the CDC, masks are an ineligible expense and cannot be purchased as an over-the-counter item using an FSA card. Learn more.

2. Multivitamins

Over-the-counter vitamins and supplements are not considered an eligible expense because of how the IRS determines eligibility. They are considered a dual purpose item and require a doctor’s note before purchasing. You’ll then need to submit a claim.

FSA funds can be used to purchase doctor-prescribed specific supplements with a Letter of Medical Necessity (LMN).

3. Weight Loss Items

When signing up for a weight loss program and purchasing items to support your health journey, you must have an LMN to back up your purchase. This includes scales, weight loss program costs, and supporting material such as training videos or online coaches.

If your pre-tax benefits are administered by BRi, have your doctor fill out an LMN. Otherwise, it’s best to not use your FSA funds for weight loss.

Eligible FSA Expenses

Visit the healthcare.gov website for eligible FSA expenses.

If you’re a Benefit Resource Inc. client, view the Eligible Expenses Table through your online account. The list contains a breakdown of items and their eligibility status. Just log in to BRiWeb and view the Eligible Expenses Table in documents.

To learn more, visit Benefit Resource Inc.

Contact us at 800.696.4543 or info@claremontcompanies.com for assistance when you’re ready to enroll a group in a BRI FSA.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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BRI – 5 Reasons Why HSAs Are Hot

Health Savings Accounts (HSAs) are the hot new accessory in the benefits world these days and here are five reasons why you may want to consider offering them to your employer groups.

1. Funds Are Kept Forever

The funds contributed to an HSA are kept year over year through the employee’s tenure. And the funds are kept into retirement and stay with the employee even when they switch employers. No matter where someone is in their career, or in life, their Health Savings Account will remain with them.

2. Funds Can Be Nurtured

Some people choose to treat their HSA like they would a retirement account: they put money in, invest that money, and leave it untouched until they retire.

By implementing an investment strategy, HSA funds can grow over time. What’s more, contributions made to an HSA are made before taxes are applied. They also grow tax-deferred while providing a reliable source of funds to turn to for both emergency and everyday medical expenses. A win-win!

3. Funds Can Be Used For Anything

HSAs and 401(k)s pair well together and have similar functionality. HSAs have an extra degree of flexibility in accessing the funds when it comes to eligible expenses.

• An HSA is the only retirement account that is completely tax-free when used for eligible medical expenses.
• At age 65, the money can be taken out for other purposes and it receives the same tax treatment as an IRA.
• There is an additional upside for those that save their receipts. For example: over the life of your HSA you incurred exactly $50,000 in medical expenses. You paid those expenses with other funds and let your HSA balance build. Then, in retirement, you decide to buy a boat for exactly $50,000. Because you saved all your medical receipts, you can reimburse yourself out of the HSA tax-free and use the funds for anything.

4. Skip The Substantiation

With FSAs and HRAs, claims need to be substantiated by the plan administrator. This means submitting supporting documentation within a specific time frame with consequences, such as deactivation of your debit card, if this process isn’t completed on time according to IRS rules and regulations.

HSA expenses still need to be eligible, however, HSAs are a self-substantiation process. Self-Substantiation is basically adhering to the Honor Code. HSA funds used for eligible expenses don’t require proof unless there’s an audit.  So while it’s still a good idea to keep itemized receipts, they can be kept filed away.

To avoid the shoebox full of old receipts, take pictures of receipts with a smartphone! Expensify, a receipt specific app, will help keep everything organized. Adobe Scan can be used as a document scanner. Just scan and send those digitally preserved receipts to a computer for future access.

5. Earn Bragging Rights

According to the 2020 Midyear Devenir HSA Market Survey, there were over 29 million Health Savings Accounts as of July 2020. The key findings included:

• HSA asset growth remains strong, with a year-over-year increase of 19% for assets and 12% for Health Savings Accounts.
• HSA investment asset growth continues. Investment assets increased to an estimated $17.6 billion, up 32% year-over-year.
• HSA investing accelerates. There are now approximately 1.5 million accounts that are investing a portion of their HSA dollars, representing more than 5% of all accounts.
• HSA contributions continue to rise. Account holders contributed almost $24 billion to their accounts in the first half of 2020, up 7% from the year prior.

The increasing popularity of HSAs isn’t slowing down any time soon. To learn more, visit Benefit Resource Inc.

Contact us at 800.696.4543 or info@claremontcompanies.com for assistance when you’re ready to enroll a group in a BRI HSA.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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3 Hidden Advantages of an HRA VEBA

While there are many advantages to tax-free Health Reimbursement Arrangement (HRA) Voluntary Employee Benefit Accounts (VEBAs), including rolling funds and investing options, you may be surprised to learn about the additional hidden advantages of an HRA VEBA.

What is an HRA VEBA?

• An HRA VEBA is a type of HRA that allows employers to contribute funds to a trust account on behalf of their employees to help them pay for medical expenses.
• An HRA VEBA offers employees lower initial premiums and provides better control over premium increases.
• This type of account receives a triple-tax advantage: employer contributions to the account are tax-free, funds grow tax-free, and remain tax-free when used for eligible medical expenses.
• Unused funds stay in employee accounts and earn interest. Funds carry over from month-to-month and year-to-year.
• Employees can invest a portion of their funds into the market for additional growth outside of their annual election.
• Active employees must be on an employer-sponsored health plan to be eligible.
• HRA VEBAs are compatible with other pre-tax medical plans such as FSAs.

Three Hidden Advantages

Freedom on Withdrawals

While HRA VEBA funds are accessible in retirement, they are not viewed as qualified retirement plans and are not subject to the same rules as other retirement accounts, namely 401(k) and 403(b) plans.

Instead, account members can withdraw funds from their HRA VEBA at any time. The only rule is to use the funds to reimburse an eligible expense.

This means employees have more freedom on withdrawals. They can withdraw money from the account to pay for eligible expenses before the standard deadline (age 59) without a tax penalty.

Free Debit Cards

The debit cards that come with an HRA VEBA are provided at no additional cost. Plus, the cards come with smart-card technology and the ability to stack multiple plan types on one card.

When a member is enrolled in another pre-tax account and then enrolls in an HRA VEBA, the funds for both accounts are available on the same card. In most cases, the card will automatically pull from the correct account when purchasing eligible items.

Timing Flexibility

While an employer-funded HRA VEBA might raise concerns among employees about enrolling, there is more flexibility with account usage than employees might think.

Not only do employees have access to HRA VEBA funds during their employment, but they can also use the funds in retirement and if they change employers.

This plan’s flexibility is less common among other pre-tax accounts and is one of the more significant hidden advantages of an HRA VEBA.

Who Can Take Advantage of an HRA VEBA?

HRA VEBAs are a great fit for a variety of groups. Municipal/public-sector employers, schools, and universities, as well as Taft-Hartley union groups can benefit the most.

To learn how your employer groups can leverage HRA VEBA accounts to reduce costs and offer employees the healthcare coverage they need, download this flyer.

Contact us at 800.696.4543 or info@claremontcompanies.com for assistance when you’re ready to enroll a group in a BRI HRA VEBA.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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Help Your Clients and Their Employees Fully Understand HSAs and HDHPs

High Deductible Health Plans (HDHP) can reduce premiums, and when combined with a Health Savings Account (HSA) they can provide investment opportunities and tax advantages with flexibility over how participants use their healthcare dollars.

What is an HDHP?

An HDHP is a health insurance plan with low premiums and high deductibles (meaning participants pay for more of their health care before the insurance plan pays), compared to traditional health plans. With an HDHP, the annual deductible must be met before plan benefits are paid for services other than in-network preventive care services, which are fully covered.

How does an HDHP work?

In general, a health plan starts paying for eligible medical expenses after the deductible has been met, meaning members must pay out-of-pocket (OOP) up to the amount of the plan’s deductible. This applies to high deductible health plans, as well as traditional plans. The amount of the deductible depends on the plan selected.

HDHPs also protect against unexpected and catastrophic out-of-pocket (OOP) expenses for covered services. Once the annual OOP expenses for covered services from in-network providers, including deductibles, copayments, and coinsurance reach the pre-determined catastrophic limit, the plan pays 100% of the allowable amount for the remainder of the calendar year.

HDHPs are great for people who are healthy and usually go to the doctor once a year for an annual check-up or to get a flu shot (both of these are considered preventive care). As a result of the Affordable Care Act (ACA), no payment is required for preventive care for things like cancer screenings, routine prenatal care visits, and vaccines for illnesses like chickenpox.

HDHP Advantages

• Lower premiums: Most HDHPs come with lower monthly premiums. If only preventive care is needed, which is covered at 100% under most plans in-network, then the lower premiums may help save money in the long run.
• Tax-free spending account: Some qualified HDHPs may be paired with a Health Savings Account (HSA). The funds in an HSA can help pay for eligible medical expenses. The money deposited into an HSA is tax-free, which can also help save money.

HDHP Disadvantages

• Higher deductible: If the deductible is higher it means OOP payments are required for medical care up to that amount before the health plan begins to help pay for covered costs. The exception is for preventive care, which is covered at 100% under most health plans when in-network.
• Costly OOP medical expenses: If an HDHP is selected and there’s a need for non-preventive medical care or costly medical care, all of the deductibles will have to be paid before the plan begins to help pay for covered costs. Depending on the participant’s medical needs, these costs could be significant OOP expenses.

What to Consider When Choosing an HDHP

When choosing between an HDHP and a more traditional insurance plan, consider the participant’s anticipated health needs. Are they likely to require medical care above and beyond preventive? If a participant has a long-term health condition or frequent medical needs, an HDHP will be ineffective. These participants will be faced with the high deductible constantly and will essentially be paying for all medical expenses OOP. If so, an HDHP plan with a lower monthly premium may not be an advantage — a more traditional plan with a higher premium and lower deductible might offer improved cost savings.

What is a Health Savings Account (HSA)?

An HSA allows individuals to pay for current health expenses and save for future qualified medical expenses on a pre-tax basis. Funds deposited into an HSA are not taxed, the balance in the HSA and interest grows tax-free, and that amount is available on a tax-free basis to pay eligible medical expenses, including copays, coinsurance, and deductibles. When enrolled in an HDHP, the health plan determines whether the individual is eligible for an HSA or a Health Reimbursement Arrangement (HRA). Like other pre-tax accounts, money is added into the account before taxes are applied, passing on savings of 30-40% to the participant.

HSA Benefits:

• The participant owns the account and can take it to another job.
• Accounts can be funded by the participant, their employer, or a third party.
• Contribution limits for an HSA are higher than contribution limits for a Medical FSA.
• Participants can change their HSA contributions at any time without the need for a qualifying event.
• The funds carry over from year to year, so participants can build up reserves to pay for health care items and services needed later.
• Investment opportunities are available once there’s a certain amount of money in the account.
• Triple-tax benefit. Funds are deposited into the account tax-free, they grow tax-free and they remain completely tax-free when used for eligible medical expenses. This saves 30-40% on every dollar contributed.

What can HSA dollars be used for?

Eligible medical expenses include doctors, hospitals, prescription drugs dental care/ortho, vision care, chiropractic/acupuncture, lab fees, over-the-counter medicines, and more.

HDHP participants don’t automatically qualify for an HSA. To be eligible for an HSA, participants:

• Must be enrolled in an HDHP HSA-compatible health plan.
• Cannot be enrolled in any other health plan including an HRA or FSA (Limited Purpose FSAs are compatible).
• Cannot be enrolled in Medicare.
• Cannot be claimed as a dependent on someone else’s tax return.
• Cannot be in receipt of VA or Indian Health Service (IHS) medical benefits within the last three months.

If at any point the participant becomes ineligible to contribute to an HSA, they can still continue to use the funds in their account until they run out.

If medical expenses are more than the HSA balance, the employer may offer an HSA Bridge that will enable the participant to access future scheduled HSA deposits before a balance has been built. The expense can also be paid with another payment source and reimbursed to the participant later when funds are available.

Carefully weigh the pros and cons of high deductible health insurance plans to offer your clients the healthcare coverage they need and save money.

To learn more, check out this BRI article and video.

Contact us at 800.696.4543 or info@claremontcompanies.com for assistance when you’re ready to enroll a group in a BRI plan.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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BRI FSA COVID-19 Relief

COVID-19 relief for Flexible Spending Accounts (FSAs) was introduced in the recent federal government year-end spending bill signed by President Trump on December 27, 2020.

The year-end spending bill provides five opportunities for employers to ease concerns over losing FSA funds. In many ways, the guidance temporarily suspends the “use-or-lose” aspect of an FSA. The temporary rule:

• Allows plans to permit Health and Dependent Care Flexible Spending Accounts (FSAs) to carryover unused benefits up to the full annual amount from 2020 to 2021 and 2021 to 2022.
• Allows plans to permit a 12-month grace period for unused benefits or contributions in Health and Dependent Care FSAs for plan years ending in 2020 or 2021.
• Extends the maximum age of eligible dependents from “under 13” to “under 14” for Dependent Care FSAs.
• Allows plans to permit a prospective change in election amounts for Health and Dependent Care FSAs for plan years ending in 2021.
• Allows Health FSAs to pay expenses for terminated employees that had unused benefits at the time of term.

To learn more, check out this BRI article and FSA Relief Considerations Q&A video.

Contact us at 800.696.4543 or info@claremontcompanies.com for assistance when you’re ready to enroll a group in a BRI plan.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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Claremont Welcomes Benefit Resource (BRI)

We’re excited to welcome Benefit Resource (BRI). With a full suite of tax-free employee benefit plans, COBRA, and other supplemental services, BRI offers small employers and Fortune 500 companies the right blend of solutions to save time and keep administration costs low.

For over 27 years, BRI has always provided clients with knowledgeable industry experts who have a passion for service. Each client is assigned a Client Support team to ensure their program is implemented and managed seamlessly from initial setup and enrollment assistance to ongoing operational program management.

Employees get one card – the Beniversal^® Prepaid Mastercard^® – to access all their pre-tax account funds. This gives them a convenient, seamless payment method for eligible expenses. Cards can be connected to Digital Wallets such as Apple Pay^®, Google Pay^®, and Samsung Pay^® for a contactless payment experience.

By combining services through the Beniversal Suite, employers can provide a more robust account offering while saving time and money administering their benefits.

• Flexible Spending Account (FSA)
• Health Savings Account (HSA)
• Health Reimbursement Account (HRA)
• Commuter Benefit Plan
• Specialty Accounts
• COBRA Administration
• Direct Billing Services

To learn more, check out the BRI carrier page and contact us at 800.696.4543 or info@claremontcompanies.com. for assistance when you’re ready to enroll a group in a BRI plan.

Questions?
Contact your Claremont team at 800.696.4543 or info@claremontcompanies.com.

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