Who says wellness isn’t worthwhile?

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Experience shows that worksite wellness is a big part of every high-quality health plan.

We take exception with a recent JAMA study that said wellness simply isn’t working. While we could point out many reasons why their assessment is short-sighted, our main objection is that their viewpoint was based on the assumption that all wellness programs are the same. Not true!

Corporate Fitness & Health, our worksite wellness subsidiary, has designed, implemented and maintained customized corporate wellness programs for businesses since 1985 – long before worksite wellness became a common part of the employee benefits landscape.

After serving as a consulting resource for clients around the country, CF&H knows that like health plans, there are no cookie-cutter solutions to worksite wellness. Our experience in both the fully-insured and self-funded markets helps CF&H design programs that work because they target the risks driving healthcare costs.

One thing we will concede is that short-term returns from wellness are tough to come by. Health is complex and you simply cannot influence behavior overnight. Yet, CF&H generates 80% participation in the corporate wellness programs it manages and 61% say their program has lowered healthcare costs.

Fostering a culture of wellness within an organization does take time. But when long-term health and well-being, employee attraction and retention and developing a sense of community within the work space are at stake, the investment is more than worthwhile.

Tell Us How You Feel!

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Proposals on Many Wish Lists

self-fundingNow that the makeup of the new Congress has been decided, many employers are hoping Washington can work together to address a few of their important concerns. High on many lists, especially those belonging to large employers, would be doing away with the Cadillac Tax on high-cost health plans once and for all. While implementation has been delayed until the 2022 tax year, the law will require insurers and large employers to pay a 40% excise tax on the costs that exceed $11,100 for employee-only coverage and $29,750 for family coverage.

Other items that employers have been talking about for a long time include making HSAs considerably more user friendly and easing ACA reporting requirements to allow employee statements to be provided electronically rather than by mail.

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It’s PCORI Filing Time Again!

IRS ACA Patient Centered Outcomes Research Institute (PCORI) Fees Due July 31st.

For 2018, the annual fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI), paid by employers that sponsor self-insured health plans and by commercial group health insurance providers, will go up by about 10 cents per employee or dependent enrolled in the health plan. The fees are due by July 31. The chart below shows the fees to be paid in 2018, which rose slightly from the fees owed in 2017.

The chart below shows the fees to be paid in 2018, which rose slightly from the fees owed in 2017:

Jan. 1, 2017, through Sept. 30, 2017 $2.26 (up from $2.17) per Covered Life (including spouse & children)
Oct. 1, 2017, through Dec. 31, 2017 (including calendar year plans) $2.39 (up from $2.26) per Covered Life (including spouse & children)

For self-funded plans, the self-insured employer is responsible for submitting the fee and accompanying paperwork to the IRS. PCORI fees are reported on IRS Form 720, Quarterly Federal Excise Tax Return. On page two of Form 720, under Part II, the employer needs to designate the average number of covered lives under its applicable self-insured plan. Although the fee is paid annually, employers should indicate on the Payment Voucher (720-V)—located at the end of Form 720—that the tax period for the fee is the second quarter of the year. Failure to properly designate ‘2nd Quarter’ on the voucher will result in the IRS’s software generating a tardy filing notice.

The PCORI fee will not be assessed for plan years ending after Sept. 30, 2019, which means that for a calendar-year plan, the last year for assessment is the 2018 calendar year.

ATTENTION DIVERSIFIED GROUP CLIENTS:

Clients who have elected to have Diversified Group assist with PCORI fee calculation can expect an email by June 25th that will include a copy of the completed Form 720 along with the PCORI calculation worksheet with supporting documentation. Clients will need to file Form 720 with payment by July 31, 2018.

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Commonsense Reporting Bill Introduced

dg-commonsense-reportingIn October, a bipartisan group of senators introduced a bill that would ease the ACA reporting mandates for employer-sponsored health plans. The bill would roll back the reporting requirements of Section 6056 and replace them with a voluntary reporting system. The bill would also allow payers to transmit employee notices electronically rather than having to send paper statements by mail.

While self-funded health plans must now comply with Sections 6055 and 6056, it is not yet clear how the bill would affect Section 6055 requirements. Senators Rob Portman of Ohio and Mark Warner of Virginia, sponsors of the bill, say their proposal would give the government a more effective way of applying premium tax credits to consumers who purchase insurance through an Exchange, something the administration has been trying to accomplish.

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