How Healthy Employees Save You Money

America is one of the most obese countries in the world. As a result, many Americans suffer from chronic illnesses such as diabetes and heart disease. On average, two-thirds of all US medical spending goes toward combatting the complications associated with these two ailments. The majority of these expenses are related to health problems resulting from unhealthy, sedentary lifestyles that compound existing issues. For example, lack of exercise and poor diet exacerbates existing health issues and leads to employees visiting the doctor’s office rather than their workplace. To mitigate the prevalence of health problems and rising medical costs, employers offer workplace wellness programs.

What are workplace wellness programs?

Workplace wellness programs range from healthy lunch and snack options in the office break room to on-site fitness centers. The aim of wellness programs is to improve the health and well-being of employees, increase their productivity, reduce their risk of costly chronic disease, and improve control of chronic conditions. These programs consist of two components: a lifestyle management program and a disease management program. Lifestyle management programs promote the idea of health promotion, which according to the World Health Organization is the process of enabling people to increase control over, and to improve, their health. The other aspect, disease management, represents a coordinated effort to help employees with an existing chronic disease to take better care of themselves to avoid serious complications associated with their disease. Workplace wellness programs have grown in popularity and now represent a $6 billion a year industry in the USA.

What saves employers money?

According to a study conducted by the Rand Corporation, the workplace wellness program itself reduces health care expenses for the employer by about $30 per member per month (PMPM). In layman’s terms, a company can save a boat load of money if they pay attention to the health needs of their employees. Of the two components, the disease management program generates the most savings PMPM because the measures implemented in this component cut the number and length of expensive hospital stays as a result of chronic disease. On the other hand, lifestyle management programs do not offer massive savings PMPM; however, one must not forget about their importance in contributing to healthy lifestyles. More employees partake in the lifestyle management programs than disease management programs and participation in lifestyle management increases productivity and reduces absenteeism, two metrics that contribute to elevated company revenues.

Benefits of workplace wellness programs.

Workplace wellness programs benefit both the employer and the employee. For the employer, these programs allow them to save money on health care costs. While statistically disease management programs ultimately save the employer more money than lifestyle management programs, there are significant benefits to both. The benefits of disease management programs are realized in a shorter term because they combat imminent health care costs. Lifestyle management programs’ benefits are more of a long-term benefit because they contribute to prevention of chronic disease down the road. Employers need to have clear-cut goals for their workplace wellness program that focus not only on disease management to mitigate health care costs but also on lifestyle management so that the people that they employ can enjoy a better quality of life that translates into increased productivity. Workplace wellness is a win for everyone involved!

6 Reasons Why “Technology-Backed” Trumps “Technology-Based” Employee Benefits

What do you expect from your broker when offering employee benefits? 

Employee BenefitsAre you looking for a trusted advisor who offers the expert help and service needed for you to choose the best employee benefits for your company? Or are you looking for a way to streamline paperwork and ease the administrative burden on HR? Either way, an independent insurance agency, like Wallace Welch & Willingham, is always going to be your best bet.

An independent agency gives you the expert guidance that makes the benefits selection, implementation, and analysis a smooth process. We use technology to offer you a variety of tools and resources that make the benefits administration process virtually painless.

If you are considering moving your HR tasks to a platform like Zenefits or Gusto you must take a look at the bigger picture. These companies can give you HR software, with benefits thrown into the mix, but they are, first and foremost, technology-based and technology-focused. You will not receive the benefits support and personalized service that a local agent provides.

Check out what Wallace Welch & Willingham can offer compared to these new technology-based companies.

1.) Industry Focused

We are focused on your needs and have the expertise necessary to guide you through the plan-choosing process. We’re here to answer questions, provide guidance, and support your HR needs with our HR tools: MillsonJames and the Seay HR Hotline. We’re here to serve you, and we have the personalized service, backed by technology, to help you succeed.

Technology-based companies are focused on providing you with HR software. Once they lure you in with free basic HR technology, they encourage you to switch to them for your benefits—helping  you with benefits is a concern secondary to the software.

2.) Local Presence

Wallace Welch & Willingham is located near you, and we’re proud members of this community. We understand what’s happening in the benefits marketplace, both locally and nationally, and we understand your business. If you want to communicate on the phone or over email, we’ll respond promptly. We’ll be there to sit down face-to-face and guide you through the benefits selection and strategic planning process. When you need us, we’re here for you.

Technology-based companies are headquartered in other states, working in virtual clouds. Zenefits, for instance, is based out of California. Their representatives rarely, if ever, meet with clients and they lack a local presence and understanding. If you enroll in benefits through them, you forfeit the ability to have personalized, face-to-face meetings to help you achieve your goals.

3.) Knowledge & Experience

We help you choose the best benefits, guide you through the open enrollment process, run health claims diagnostics, and sit down with you to develop strategic plans for lowering costs due to health claims. We understand that benefits are more than just benefits—they are an important recruitment and retention tool and choosing the right ones will help you keep your employees happy. We also provide you with compliance information and employee communications, so you are never left to struggle on your own. W3 has been in the insurance industry for over 90 years. We have the knowledge behind our products to offer the best solutions to our clients.

Technology-based companies will automate what they can, but, unfortunately, expert insight and advice cannot be obtained from a computer. Their sales people have were hired (recently) with one objective; to sell their product. Their ability to compete with local insurance agencies based on product knowledge is extremely limited.

4.) Service & Year-Round Support 

We are here for you year-round, and you never have to wonder if you’ll be able to reach someone. While open enrollment is often the most challenging time of the year, we don’t abandon our clients the other 11 months of the year. When you work with us, you’ll personally know who you’re talking to.  We bring an understanding of your business and a solid history of past exchanges to each new conversation. We provide consistent, prompt communication and guidance, and we are ready to serve you.

Zenefits is massive, but its size can be a disadvantage for clients who want to know who they are speaking to. You also want to know that your broker has a contextual and institutional understanding behind each new question or concern.

5.) Pricing Transparency

We are upfront with you about costs. If we are ever going to charge you a fee for an added service, we’ll let you know in a clear and timely manner so you can make an informed decision. We promise never to say “free” if we don’t mean it.

Technology-based companies claim to be free.  That statement is true for their “core features, ” however, beyond those basics, clients run into extra costs. These costs often include a monthly fee per-employee for certain features and even a per-employee charge for delaying implementation of core features.

6.) Compliance and Content

We provide our clients with content to meet business and employees’ needs.  We give you access to W3 Client Connect, a content portal, where you can target the information you need if you want to self-serve. Need help with compliance? Want employee newsletters? Need articles explaining benefits or related topics? Thinking about starting a wellness program? Want to make benefits education fun with short videos for employees? Whatever you’re looking for, we can deliver customized content and training for you.

These new technology-based companies don’t have a content library, employee educational articles, videos or newsletters, or wellness staff and program materials.

Technology-backed or Technology-based? 

When you are faced with a choice between Wallace Welch & Willingham and a technology-based company, consider what makes us different. Are you looking for a trusted advisor who can offer assistance while being backed by technology to make the process easier? Or are you looking for a technology-based solution that kicks service and expertise to the curb?

If you’re looking for a benefits expert who is technology-backed to meet your needs, contact Wallace Welch & Willingham today.

 

Be Active, Be Healthy

Instead of investing an hour at the gym, what if you could become more fit with 10 minutes here, 10 minutes there throughout your day? The American Heart Association suggests at least 150 minutes per week of moderate exercise or 75 minutes per week of vigorous exercise (or a combination of moderate and vigorous activity). Thirty minutes a day, five times a week is an easy goal to remember. However, you will also experience benefits even if you divide your time into two or three segments of 10 -15 minutes per day.

The best ways to increase your motivation to exercise is to understand the importance of it.

benefits of a healthy lifestyle

 

Everyone can gain the health benefits of physical activity – age, ethnicity, shape or size do not matter.

www.heart.org

Now that the Supreme Court has ruled… what’s next?

Now that the Supreme Court has ruled... what's next?The individual mandate will stand as a “tax” versus commerce and Affordable Care Act will move ahead.  With all the fanfare Employers are beginning to plan for their next steps.

Some next steps Employers need to be thinking about:

1). Review your benefit offerings to make sure they meet the guidelines of essential coverage.

2). Watch your mail for notice of the MLR rebate and determine how you will distribute if your
plan qualifies.

3). Confirm with your carrier that your plan has been amended to comply with the Women’s Preventive Care provisions.  Must comply as plans renew beginning 8/1/12.

4.) Be on the lookout for your new Summary of Benefits and Coverage. Carriers are required to provide these for open enrollments/plan years beginning 9/23/12.

5.) If you have a Flexible Spending Account (FSA) you will need to check the allowable maximum. It is now restricted to $2,500 per person up to $5,000 per family.

6.) Employers who submit 250 or more W2 for 2012 must include the value of health care coverage in box 12 on employees W2. Check with your payroll vendor to make sure this amount can be tracked and reported.

Looking further ahead 2014 marks the deadline for many of the major provisions in Obama Care. Individual mandates begin, wellness initiatives are strengthened, automatic enrollment is mandated, waiting periods are restricted, penalties for NOT providing coverage begin, exchanges roll out, pre-existing provisions are eliminated and premium subsidies for lower income individuals become available.

Wallace Welch and Willingham is monitoring the events as they unfold and will keep you up to date on steps towards compliance. We welcome your questions and will be happy to assist.

This legislation still has many voids and unanswered issues. We anticipate seeing significant clarification and revision.  The 2012 presidential election could also have significant impact on the Affordable Care Act. So, for some employers “wait and see” may still be the best next step.