You specialize in designing benefit packages for large employers, with 50 or more employees. How does the process work?
Rather than them come to me with a plan, I like to get in on the design stage. A lot of employers I meet with, whether it’s a director of operations or CEO, CFO level, we work together to build a custom plan they can roll out to their employees. Every employer’s needs are different. We have a lot that are competing with other manufacturers or tech companies in their industry. They have to provide top-notch benefits for competitive reasons. I have some groups who are bare minimum and just want to be compliant with the Affordable Care Act. There is a wide range in the designing phase. Once we build that plan together, it is my job to implement that plan and communicate it to the employees.
What’s the most sought after benefit?
Typically, it’s medical insurance. Right next to medical would be dental and life. Vision comes in a close third or fourth and then of course the disability. I think the disability is a benefit that sometimes gets, not put on the back burner but maybe more overlooked than some of the other benefits are. It’s because you want that card, that dental or medical card. That’s up front. Nobody expects to get disabled or need short-term disability. It’s similar to life insurance.
There have been a lot of changes in the past few years with the ACA, but it’s seemed to level out. Are there any more big bumps ahead?
Of course, we have a presidential election in November and who knows what the turn out will be there. However, the Cadillac tax is the last piece of the Affordable Care Act that has not been implemented. It was originally supposed to take place in 2018 and now it is 2020. That’s where an employer will technically pay a penalty for providing too rich of a benefit plan to their employees. If the cost is greater than $10,200 for individual coverage and $27,500 for other than individual coverage, then the employer faces a penalty. That is a per employee cost. Even if you as an employee contribute into a flexible spending account your money, that also counts toward the $10,200 amount.
Why penalize a company for offering good benefits?
I believe they have got to pay for all this somehow. The more penalties and fines that can be assessed, that means more money.
Millennials are the largest workforce demographic. How are they changing the game?
Is all about technology, technology, technology. Your baby boomers, they want a paper form, they want to speak with someone about their benefits, they want to see you in person. Millennials are online; where is the web link? We are prepared and have been prepared with online enrollment tools, software, they can have their ID card on their cellphone, etc. Convenience is key. I read an article in USA Today back toward the beginning of the year that said baby boomers want to know their primary care physician and have that relationship. Your millennial is all about what’s convenient. Is it the clinic at CVS? Or is it online telemedicine? That’s really taking off locally.
We’ve heard talk growing of unlimited vacation time. Is it a pipe dream or is it really catching on?
It could absolutely become more frequent because that is what the millennials want. They want to work from home. They want that flexibility. If you can get your job done – and because of your work ethic and prioritizing – in three days, why come in on Thursday or Friday? I think it is very rewarding for those individuals that choose to be efficient with their time. They might not be working on Friday, but they might be working 30 minutes a night every night from their phone. With technology these days, for example in my field, between my phone, laptop and even my car having Wi-Fi., I’m never disconnected from my clients. It doesn’t matter if I am sitting here in this building or not, I am always connected.
