HR Strategies, LLC
Monthly Strategies
What to Tell Workers during
Open Enrollment for 2014
By Stephen Miller, CEBS
Workers will be confronting a changed benefit
landscape in 2014. For one thing, all Americans will
be required to have health care coverage or face a
penalty. By Oct. 1, 2013, employees should have
received a required notice about their options under
federal- or state-run health care exchanges
(marketplaces), notices that many will find more
confusing than enlightening. Employers also may
be making changes to rules that determine which
employees are eligible for health coverage,
perhaps excluding part-time workers who
previously received coverage. But the recent
Supreme Court decision that resulted in federal
recognition of same-sex marriages may mean more
spouses and dependents are eligible for benefits.
“Employees typically spend very little time
choosing their health benefits each year,” Craig
Rosenberg, leader of consultancy Aon Hewitt’s
health and welfare benefits administration practice,
said in a news release. “This year that can be a
risky, and potentially costly, strategy. In some
cases, not making an active decision during
enrollment means employees could get defaulted
into a health care plan that doesn’t meet their
needs.”
To ensure workers make the best benefits choices
for themselves and their families, organizations
should send or post the following tips during
enrollment season, Rosenberg suggests.
Participate in the enrollment process. Make sure
you understand what’s changing, when you need to
make your choices and what your employer is
requiring of you. Use the information and tools
provided to get educated about your options and to
make your decisions.
Volume 10, Issue 10
October 1, 2013
Review coverage that your employer offers
before making a decision about purchasing
health insurance through a state
marketplace. You will hear a lot about these new
marketplaces, including the availability of federal
subsidies based on your income. In most cases, if
your employer offers coverage that meets certain
minimum coverage and cost levels, you will not be
eligible for a subsidy in the marketplace. Make sure
you take the time to understand the health plans
your employer offers before declining coverage to
purchase insurance through the marketplace. It is
important to note that most employers subsidize
coverage they offer and allow you to pay for it on a
pretax basis, which saves you money by lowering
your taxable income. Coverage purchased through
the marketplace, however, is not pretax. You can
visit healthcare.gov to learn more about the
marketplaces.
Reassess your and your dependents’ health care
needs. Reserve time before open enrollment begins
to take a fresh look at your health care needs for the
year ahead and how you and your family have used
health care in the past year. Consider how much
you’ve spent out of pocket (e.g., deductibles, copays and co-insurance), the number of doctor visits
you typically make and the cost of regular
prescription drugs. Online tools can help you
calculate your past expenses and estimate your
future health care needs.
If you are enrolled in a health care flexible spending
account (FSA), evaluate whether your contribution
is right based on your actual and expected expenses.
Remember: You must use any money in an FSA
within the current year (sometimes with an extra
grace period through mid-February) or you'll lose it.
Evaluate whether a CDHP is right for
you. Consumer-directed health plans (CDHPs)
often have lower premiums but higher deductibles,
coupled with employer-funded health
reimbursement arrangements (HRAs) or health
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savings accounts (HSAs) that can be used to pay for
eligible out-of-pocket costs. You can save money
with an HSA by contributing dollars on a pretax
basis—up to $3,300 in 2014 or $6,550 if you have
family coverage, with no use-it-or-lose-it rule.
When evaluating CDHPs, you should figure out
how much you are likely to spend out of pocket
before you meet your deductible. Also factor in how
much your employer will put into your HRA or
whether your company will make contributions to
your HSA. If you plan to enroll in a CDHP with an
HSA, make sure you understand that any additional
FSA would be limited to dental and vision care
coverage.
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enrollees give employers a terrific opportunity to
show workers the real value of the plans they offer,"
said Benz. "Based on the ACA plan levels—
Bronze, Silver, Gold, Platinum—plans offered by
the majority of large employers are equivalent to the
Platinum and Gold plans being offered by the
exchanges.”
Moreover, “While the ACA and the health
insurance marketplaces are throwing up a lot of
hurdles for you to scale, they also offer you a
chance to back up the value statements you’ve
broadcasted for years about your generous benefits
plans,” Benz noted.
Take advantage of wellness program
opportunities. Most employers offer wellnesspromoting tools and programs, such as health-risk
questionnaires and biometric screenings (e.g., blood
pressure and cholesterol testing). And you may even
receive a financial incentive from your employer for
participating in these programs. By learning more
about your health risks, you can take action earlier.
The Allure of Exchange Subsidies
Understand supplemental benefits and their
costs. As you assess your health plan options for
2014, look holistically at your health and financial
well-being, including health care, life and disability
insurance, and retirement planning. Many
employers include voluntary supplemental
coverage, such as income-replacement insurance or
extra critical-illness coverage, as part of their annual
enrollment process. Be sure to carefully review the
available options and their costs, and then determine
if certain voluntary coverage meets your needs.
“Without a subsidy, employees will be paying more
for less coverage. Let them know that the coverage
they are getting from your company is fuller and
provides better value than anything they will get on
an exchange. Show them—using detailed
comparisons of your plan vs. exchange plans—that
they are getting a Gold or Platinum plan for the
price of a Bronze plan,” she recommends.
Your Health Plans vs. the Marketplace 'Metals'
Health care reform's individual mandate under the
Patient Protection and Affordable Care Act (ACA)
takes effect in 2014, and starting Oct. 1,
government-run health care exchanges
(marketplaces) will be beckoning your employees,
according to Jennifer Benz, founder and CEO
of Benz Communications, an HR and benefits
communication strategy firm.
“The high-visibility advertising and marketing
efforts insurance exchanges are using to attract
Employees may be tempted by publicity about
government subsidies for exchange-based plans.
Benz advises employers to directly address the issue
and inform workers they most probably aren’t
eligible for them.
Employers considering this tactic should be aware
that there isn’t a national example of a Platinum
plan—nor one for a Bronze, Silver or Gold plan—
since the Department of Health and Human
Services is allowing states choose their own
benchmark plans and what services will be included
in addition to those deemed essential. With so many
states defaulting to the federal exchange, however,
there may be a de facto national standard for the
majority of Americans.
Still, “It will be very difficult for employees to
make a pure apples-to-apples comparison of an
employer’s plan and an exchange-offered Platinum
plan—even with a new Summary of Benefits and
Coverage," Benz observed. She recommends
including the following to help employees navigate
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the exchanges.



Define your plan in marketplace terms. Talk
to your actuaries about the value of your plans in
terms of the four plan levels. Do you offer all
Platinum-plus plans? Or a mix of Gold and
Platinum?
Do the math. Once you’ve categorized your
plans, compare the price tags. You’ll get
employees on board much more quickly if they
know exactly how the employer contribution
offsets their total costs. And you can show them
what a similar plan would cost if they purchased
it on their own.
Monthly Strategies




Draw a picture. This isn’t a message that’s
easily delivered with words alone. Using
infographics, simple charts and videos will help
make your message stick.

Changes - Executive Order
11246 Affirmative Action Plans
Written AAPs created pursuant to E.O. 11246 have
the most detailed and comprehensive requirements
and include both statistical and narrative
components. The law governing the components of
this type of plan is found at 41 C.F.R. §60-2. These
AAPs must contain the following 10 components:




An organizational profile, providing
the OFCCP with a numeric depiction of the
staffing pattern within a contractor’s
establishment, 41 C.F.R. §60-2.11.
A job group analysis, combining job titles within
a contractor’s establishment into manageable
groups for purposes of statistical analysis, 41
C.F.R. §60-2.12.
Incumbent placement percentages, identifying
the percentage of minorities and women
employed within each established job group, 41
C.F.R. §60-2.13.
A determination of availability, estimating the
number of qualified minorities or women
available for employment within each
established job group, 41 C.F.R. §60-2.14.

A comparison of incumbency and availability,
identifying areas where minorities or women are
underutilized, 41 C.F.R. §60-2.15.
Stated placement goals, creating objectives or
targets reasonably attainable given the
circumstances so as to measure progress toward
achieving equal employment opportunity, 41
C.F.R. §60-2.16.
Designation of responsibility for the
implementation of the AAP to an official within
the contractor’s organization, 41 C.F.R. §602.17(a).
Identification of problem areas, providing indepth analysis of the workforce by
organizational unit and job group, personnel
activity, compensation systems, personnel
procedures and any other areas of operation to
determine whether and where impediments to
equal employment opportunity exist, 41 C.F.R.
§60-2.17(b).
Stated action-oriented programs, spelling out
programs designed to correct any problem areas
identified by the affirmative action plan
analysis, 41 C.F.R. §60-2.17(c).
Planned periodic internal audits, providing an
auditing system that periodically measures the
effectiveness of its total affirmative action
program, 41 C.F.R. §60-2.17(d).
Penalties for Noncompliance
In the event of the contractor’s noncompliance with
the nondiscrimination clauses, or with any of the
rules, regulations or orders enforcing them, the
potential consequences may include the following:

Contractor may be debarred and declared
ineligible for any future government contracts.

Contract may be canceled, terminated or
suspended in whole or in part.

For subcontractors, liability may exist if
debarment causes the prime contractor to be in
breach of the prime contract.

Where a violation is material, the Department
of Justice (DOJ) may bring suit to enforce the
regulations or enjoin noncompliance; the DOJ is
also authorized to bring a criminal action for the
furnishing of false information to the DOL.
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The OFCCP generally seeks to enter into mediation,
conciliation or settlement for any violations before a
contract is canceled or terminated.
On, August 27, the Office of Federal Contract
Compliance Programs (OFCCP) announced new
rules outlining how federal contractors should
handle their affirmative action and
nondiscrimination obligations for protected
veterans. These rules, in large part, mirror each
other and fundamentally alter the rules for
compliance with The Vietnam Era Veterans’
Readjustment Assistance Act which governs
protected veterans.
The changes include:


Applying the “internet applicant” rule to the
new rules so that electronic applications and
inquiries will be handled the same way they
are handled for other groups covered by
affirmative action (race, color, religion, sex or
national origin);
Changing the 2-year record-keeping
requirement to 3-years;
Although some aspects of the rules were made less
onerous, the final version includes significant
requirements for employers. Under the rule, the
OFCCP requires employers to achieve specific
numeric goals to document compliance.
EEO-1 and Vets 100 Reports due
September 30, 2013
Don’t forget that the EEO-1 and Vets 100 Reports
are due September 30, 2013. Please refer to last
month’s edition of Monthly Strategies for more
information and requirements.
If your organization would like to learn more about the
items in this newsletter, please feel free to contact Tricia
Clendening at 302.376.8595 (office) or 302.373.1784
(cell) or [email protected]. Please contact us if
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