Acronym IQ Quiz
In today’s complex benefits environment, acronyms are tossed around like every day words. Sometimes, however, we forget the exact meaning of certain acronyms. So here’s a quiz:
1. COBRA stands for…
A. Comprehensive Omnibus Budget Reconciliation Act of 1987
B. Consolidated Omnibus Budget Reconciliation Act of 1985
C. Comprehensive Obligatory Budget Reform Act of 1986
2. HIPAA stands for…
A. Health Insurance Priorities Accounting Act
B. Health Insurance Portability and Accounting Act
C. Health Insurance Privacy and Accounting Act
3. HRA stands for…
A. Health Reimbursement Account
B. Health Reimbursement Arrangement
C. Health Reimbursement Accrual
Answers are at the bottom of this message.
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What type of hold music do you prefer? Classical, Jazz, Pop, Show Tunes or Easy Listening
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The Crosby Method
Our method is unified and reiterative. Every part of it is important, every part is connected to the others, and every part contributes to a solution that works now and adapts to your future needs.
Engage
Above all, we engage our clients. For us, engagement is not a state of being; it is action, an ongoing exchange of ideas that promotes trust and creativity. Throughout our engagement with you, we take the time and effort to evaluate not only your current circumstances but also the direction of your benefits program and its relation to your broader business objectives. So that we can understand how your program fits with your organizational goals, we meet with your executives and, when appropriate, with your board. We can facilitate focus groups in order to learn your employees’ attitudes toward your current program and their expectations for improvement.
Develop
At this stage, we combine what we’ve learned about your organization and your benefits program with a) your short- and long-range benefits objectives, and b) our knowledge of all aspects of health and welfare benefits management, including both brokerage and administration. This assures that our solution will fit your organization and, at the same time, take into consideration the most recent innovations and likely trends in the benefits industry, including new regulations, legislation, and technologies.
Generate
At this stage, we implement our solution. A design is only effective if it translates into a working component that meshes with the rest of your program. We do everything necessary to make certain that both managers and recipients are prepared for any changes. This includes a timeline, which allows for full communications to all parties, clear educational materials and presentations to your employees, and whatever other support and coordination you may need for enrollment and compliance. And this is not a temporary commitment from Crosby: we continue to be available whenever you need our support.
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Quiz Answers: 1. b 2. b 3. b
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Welcome to the Crosby Benefit Systems Newsletter
Over the past few months, we have been phasing out the use of our Client Community. This is the first newsletter to be sent in our new format and we hope you continue to enjoy receiving it. As always, your feedback is welcomed.
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Are You In Compliance?
Section 125 Plan Documents
A Plan Document and Summary Plan Description (SPD) are mandatory documents needed for organizations that utilize Section 125 benefit plans (soon to be a requirement for Massachusetts organizations). The documents outline the rules of the plan and provide an explanation to participants about how the plan operates. To accommodate the rapidly changing regulatory environment, Crosby offers a Legal Document service for our clients. For those that choose this option, Crosby provides an up-to-date plan document; if the law changes, Crosby will automatically mail a plan document amendment.
Non-Discrimination Testing
The IRS requires annual non-discrimination testing to ensure Section 125 Plans do not favor highly compensated employees and/or shareholders. The tests fall under two categories, eligibility tests and contributions/benefits test. If the plan does not pass, some higher level employees will have adverse tax consequences. It is important to perform these tests annually and we recommend testing before the end of the plan year because changes cannot be made once the plan year ends.
5500 Filing
Once your plan year run-out is completed, Crosby will calculate and provide you with the data required for filing your organizations Form 5500 for your FSA, if applicable to your plan. This information is typically provided within 60 days following your run-out period. If you have any questions on when you can expect this information, please contact you account representative.
For more information about any Crosby Plan Document service or Non-Discrimination Testing, please contact Darla Rosenfeld at 617-928-0700 x168 or drosenfeld@crosbybenefits.com.
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Mass Health Care Fast Facts
With the Massachusetts Health Care Reform implementation date fast approaching, it is important to understand the key components of the law. Here is a list of some of the more common terms and their definitions:
Fair Share Contribution
The Fair Share Contribution is a fee an employer will pay if it does not make a "fair and reasonable" premium contribution to the health insurance of its employees. These fees help finance health plans that are subsidized by the state and are available to people who do not have access to employer-sponsored health insurance.
Section 125 Plan
A Section 125 Plan allows employees to pay for heath insurance coverage on a pre-tax basis and is not subject to state and federal income taxes or federal FICA withholding taxes. A Section 125 Plan can benefit both the employer and the employee, since both will have lower payroll-related taxes. This requirement goes into effect July 1, 2007.
Free Rider Surcharge
The Free Rider Surcharge is a charge on employers who do not comply with the requirement to set up a Section 125 Plan that meets the regulations of the Commonwealth Connector. The surcharge is levied for "state-funded health services" that are incurred by employees and/or their dependents. This requirement goes into effect July 1, 2007.
HIRD (Health Insurance Responsibility Disclosure) Form
Two types of HIRD forms will exist: the Employer HIRD Form, and the Employee HIRD Form. The employer HIRD form will need to be completed by all Massachusetts employers who employ more than 10 employees. The employee HIRD form will need to be completed by all employees who are employed at an organization that has 10 or more employees. Both forms will certify that each group is abiding by the law and that all necessary parties are either offering coverage or that they have coverage.
Minimum Creditable Coverage
Massachusetts will set minimum coverage standards for health insurance plans. The Massachusetts Health Insurance Connector has issued draft regulations containing a definition of "minimum creditable coverage." The definition specifies the minimum level of insurance coverage that individuals must have as of January 1, 2009 in order to comply with the individual health insurance mandate.
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Room For Improvement
In our monthly newsletter in particular, we’re often touting the things that Crosby Benefit Systems does well. To add a balancing component to that mix, we thought, in the interest of honesty, it might be valuable to identify some of the areas that we think we still need improvement:
Training
While we also consider this a strength, it is our strong contention that our employees can never get enough education. Our everyday work lives often do not allow time for studying and learning new and existing benefit rules and changes. Through certification programs, onsite trainings and encouragement of our employees to increase their knowledge by taking advantage of tuition reimbursement, we move towards improvement in this area.
Communication
So much information, so little time. We’re all forced to deal with this dilemma. By utilizing various means of communication, from email to discussion of cubicle walls to notes left on sticky notes, it is vital that we communicate better. More communication leads to greater understanding and better teamwork.
Transparency of Data/Information
Though self-service isn’t always desirable, more and more, we all want it to be an option. Our goal is to allow for as much self-service as possible, so our clients and customers have a choice. Whether that’s to access information at 1am or run customized reports or just being able to get the right form quickly, we want create more options for our clients so that this information is available at their fingertips.
Our commitment to excellence means that we are always improving and growing our service offerings. We hope this article has given you some insight on our current projects. As always, we welcome your feedback.
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