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  • As health care costs keep rising, both employees and employers are looking for ways to manage these expenses and make coverage more affordable. However, balancing these growing costs while ensuring employee satisfaction can be challenging for employers. To achieve this balance, employers can implement a variety of strategies to effectively lower health care costs while keeping employees happy, healthy, and productive. 

    What Do Health Care Costs Include

    Health care costs include all expenses related to maintaining or improving an individual’s health. While many services can fall under the umbrella of “health care”, these costs typically include accessing and utilizing health care services such as prescriptions, health insurance, doctors’ visits, deductibles, copayments, premiums, and more. While offering health care and health benefits can be expensive, they are essential to attract and retain top talent. Continue reading to learn a few ways you can reduce your health care costs.  

    Invest In Prevention

    Prevention is the best medicine, especially when it comes to health. By encouraging employees to focus on their health, either through developing healthy habits or scheduling regular check-ups, you help them focus on their current health and avoid future health issues. Regular check-ups, screenings, vaccinations, and telehealth appointments can significantly reduce long-term health care costs and prevent more serious and expensive conditions down the line. 

    Implement Wellness Programs

    Wellness programs are designed to enhance the health and wellness of individuals. They can focus on physical activity, nutrition, stress management, and mental health. According to a recent study, 91% of companies reported that their health care costs decreased because of their well-being program. These programs can include fitness challenges, stress management workshops, financial wellness resources, nutrition assistance, and more.  

    By fostering a culture of wellness, employers can reduce absenteeism, improve productivity, and increase morale. When employees feel supported, they are more likely to take better care of themselves and adopt healthier behaviors, which can lead to reduced use of health care benefits and ultimately lower health care costs. 

    Offer Telemedicine Services

    Telemedicine has expanded in the past decade, effectively transforming the health care landscape. Telemedicine provides employees with the ability to have a doctor’s appointment online. It provides greater efficiency and flexibility for physicians and patients alike. Employees are able to receive help for minor ailments and follow-up appointments, and receive faster care than going in person, reducing employee absenteeism and improving productivity. The convenience of telemedicine saves employees time by eliminating travel and waiting periods, and also reduces the need for time off work and costly co-payments. 

    Implement Additional Savings Accounts

    Another effective way to lower health care costs is by offering a Health Savings Account (HSA). An HSA is a special type of account that allows individuals to save money specifically for qualified health care expenses. With an HSA, contributions can be made tax-free as long as the funds are used for eligible medical expenses, which include deductibles and copayments. However, insurance premiums are generally not considered qualified medical expenses. To be eligible to contribute to an HSA, one must be enrolled in a high-deductible health plan (HDHP). These accounts can lower premium costs for employers and allow employees to save pre-tax dollars for medical expenses, giving them more control over their health care spending. 

    How CPEOs Lower Health Care Costs

    Reducing health care costs is a growing priority among business owners. While many business owners are reducing their coverage options to save money, this can leave employees vulnerable to higher health care-related expenses. Managing employee health plans isn’t an easy task, especially if you’re managing it alone. Luckily, Group Management Services (GMS), a certified professional employer organization (CPEO), can help you manage your employee benefits and the associated costs. 

    Our benefits experts can help you make the most of your benefits while saving you money. We provide expert guidance on health plan design and ensure compliance with the Internal Revenue Service (IRS). With our HSA and Federal Spending Account (FSA) administration services, we can simplify your account management.  

    We also provide comprehensive group health insurance plans that can reduce your premiums and deductibles. GMS represents more than 50,000 employees, which allows us to help businesses purchase group health insurance at rates up to 24% lower for employee premiums and up to 15% lower for family premiums compared to the U.S. average. 

    Employee health care and benefits are not easy to manage. That’s why having a knowledgeable partner to walk you through your options is essential. Learn more about how GMS can help simplify your health care and benefits today.  

  • In today’s competitive job market, employers are constantly looking for ways to strengthen their employee retention rates and improve morale. While there are a variety of solutions for low retention and morale, enhancing your benefits offerings with supplemental insurance is a great place to start.

    Supplemental insurance plans, also referred to as voluntary benefits plans, aren’t required by law but do provide valuable benefits that can be used to complement your group health insurance plan. But what exactly are these plans, and how do they benefit both parties?

    What Are Supplemental Insurance Plans?

    Supplemental insurance plans are additional insurance policies that employees can purchase to complement their primary health insurance coverage. These plans are designed to cover health costs that fall outside of normal health insurance coverage, such as copayments, deductibles, and other out-of-pocket costs.

    These plans can include:

    • Life
    • Dental
    • Vision
    • Accident and critical illness
    • Long-term and short-term disability
    • Pet
    • Pre-paid legal
    • Home and auto
    • Telehealth

    If offered, employees can opt in to these plans. For example, not every employee may want or need a pet insurance plan, but an employee with a dog may be very interested in coverage.

    Benefits for Employees

    Offering supplemental insurance plans is a great perk for employees and shows they are cared for and valued.

    • Greater control: With supplemental insurance plans, employees can customize their benefits packages to fit their own needs as well as their spouse’s or children’s needs. They’ll also have greater control over how they utilize their benefits, helping them manage and utilize their plans more effectively and efficiently.
    • Access to specialized care: Plans like dental and vision insurance allow employees to access specialized care without worrying about high out-of-pocket costs. This encourages regular check-ups and preventive care, contributing to overall health and well-being. Supplemental insurance plans are beneficial because employees only pay for the specific care they need, rather than covering costs for services that other employees might require.
    • Flexibility: Employees can choose the insurance that best suits their needs and budget. This flexibility allows them to tailor their insurance coverage to their specific health requirements and financial situation.
    • Broader coverage: Depending on the plan, supplemental insurance can provide employees with broader coverage than a group health plan, ensuring they are protected against unexpected medical expenses that their primary insurance might not cover. This added layer of protection can be crucial in maintaining financial stability and peace of mind.

    Benefits for Employers

    As an employer, providing supplemental insurance for your workforce has several benefits for your business, including improving workplace morale, company loyalty, and your company’s bottom line.

    • Attracting top talent: Offering supplemental insurance as part of a benefits package can make a company more attractive to potential employees. In a competitive job market, comprehensive benefits can be a deciding factor for candidates choosing between job offers.
    • Employee retention: Supplemental plans can be a powerful tool to retain top talent. Providing robust benefits can increase employee satisfaction and loyalty because when employees feel valued and supported, they are more likely to stay with the company long-term.
    • Improved productivity: Healthier employees are more productive. By offering supplemental insurance, employers can help ensure their workforce has access to necessary medical care, reducing absenteeism and improving overall productivity.
    • Savings: While offering supplemental insurance can increase your premiums, it can lead to long-term savings. Healthier employees mean fewer sick days and lower health care costs, which can positively impact the company’s bottom line.

    Group Management Services and Supplemental Insurance

    Supplemental insurance plans are a valuable addition to any benefits package, offering significant advantages for both employees and employers. By providing enhanced coverage, financial security, and access to specialized care, these plans contribute to the overall well-being of employees.

    If you want to offer supplemental insurance for your employees, but aren’t sure where to start, consider partnering with Group Management Services (GMS), a professional employer organization (PEO). With the help of our knowledgeable team, GMS can help you offer great benefits and supplemental insurance packages at an affordable price. We offer a higher collective buying power that can lower your premiums and provide benefits comparable to those of a Fortune 500 company.. We will help you find the right package to offer to your employees and walk you through the entire process. that of a Fortune 500 company. We will help you find the right package to offer to your employees and walk you through the entire process.

    Contact us to learn more about how we can help your business!

  • It’s clear that employee burnout and mental health issues have been an ongoing problem in the last several years. 76% of respondents in a Mental Health America and FlexJobs study agreed that workplace stress affects their mental health and 75% experienced burnout. Despite employees investing in programs to address stress and improve emotional well-being, a significant number of employees are still struggling with high levels of anxiety and burnout.

    According to a recent report from Aflac, 57% of employees are experiencing at least moderate levels of burnout. There has also been a decline in employees’ confidence that their employers truly care about their well-being.

    Aflac’s Chief Human Resources Officer, Jeri Hawthorne, notes that factors such as the upcoming presidential election, financial worries, long work hours, and other stressors could heighten the burnout issue even further this year.

    The Importance Of Employer Action

    Hawthorne stresses that the burden falls on small business owners to be at the forefront of addressing employee burnout and improving their situations. Burned-out employees are less productive, more likely to be absent or have behavioral issues, and more inclined to leave their jobs if they don’t feel their employer cares about them. Burned-out employees are also less likely to go above and beyond for clients, which can lead to a negative impact on your company’s performance.

    To combat this, Hawthorne recommends that employers take a proactive and engaged approach:

    • Regularly remind employees about available benefits, time off, and wellness programs, making them easy to access and understand.
    • Provide opportunities for employees to give back or volunteer, as this can boost their sense of purpose and well-being.
    • Continuously communicate about benefits and wellness offerings, not just during open enrollment periods.
    • Tailor communications and programs to specific employee demographics and their unique needs.
    • Solicit regular feedback from employees on what additional support they require.

    By taking these steps, employers can demonstrate their genuine care for employee well-being and work to reverse the troubling trends around burnout and declining confidence. Prioritizing mental health and emotional wellness will be crucial for organizations looking to support their workforce and maintain high performance.

    Show Your Employees You Care

    Remind your employees about taking paid time off (PTO) and about available benefits. Encourage employees to use the PTO they’ve earned, whether it’s for a vacation, personal matters, or simply to recharge. Employees proved that they could successfully work from home during the pandemic. Giving employees the opportunity to work and taking time off when needed is important.

    In addition, navigating employee benefit offerings during open enrollment can be overwhelming. It’s crucial to make these offerings, tools, and programs understandable and readily available for when employees need them and can easily access that information.

    Employers should also talk with their employees and ask for their feedback on their benefits packages and conduct surveys. Ask your employees what they are looking for and what they value. Act on their feedback and implement new strategies.

    Prioritize Employees’ Mental Health With GMS

    By partnering with GMS, you can demonstrate your commitment to your employees’ well-being and create a workplace culture that prioritizes mental health. This not only benefits your team, but also contributes to improved productivity, engagement, and overall business success. When you partner with GMS, we provide you with mental health benefits for your employees, such as:

    • Affordable health insurance plans through our group health insurance
    • Employee assistance programs (EAPs)
    • Access to our learning management system (LMS), where employees can partake in mental health training
    • Access to wellness programs
    • And more!

    Take the final step towards empowering your workforce. Contact GMS today to learn how we can help you implement a comprehensive mental wellness program that meets the needs of your employees and your organizations.

  • Offering appealing employee benefits is critical to attracting and retaining top talent. In fact, 77% of employees tend to stay longer with a company if they receive a comprehensive benefits package. With living expenses and inflation continuing to rise, employees’ needs and expectations regarding benefits are evolving.

    As a small business owner, it’s your responsibility to keep up with industry trends and provide an extensive benefits package to keep your skilled employees satisfied. Not only does this enhance workforce morale and loyalty, but it also establishes your business as an employer of choice in a competitive market.

    Traditional Employee Benefits

    Employers offer benefits as extra perks and advantages beyond base salaries and wages to demonstrate a commitment to employee welfare and financial security. Traditionally, employers provide health insurance, retirement plans, and paid time off (PTO). While these benefits are an essential foundation to a comprehensive package, these perks alone no longer meet the expectations of the modern workforce. To keep up with evolving standards, you must supply more desirable and innovative benefits that surpass basic needs.

    Factors Contributing To The Changing Landscape

    In today’s economic uncertainty, the value of an inclusive benefits package has increased, leading employers to rethink their strategies to obtain and keep talented workers. Various elements have caused this shift in attitude towards employee benefits. These factors include:

    • Millennials and Generation Z: The preferences of younger professionals are a significant factor influencing employee benefits trends. These generations prioritize flexibility, work-life balance, and opportunities for personal development.
    • Competitive job market: Businesses must set themselves apart from competitors by offering more than just attractive salaries. Benefits packages should address the diverse and aspirational needs of potential employees.
    • Impact of COVID-19: The pandemic has accelerated the change in trends, highlighting the importance of benefits such as remote work options, mental health support, and financial wellness programs.

    Current Trends In Employee Benefits

    As a small business owner, you must stay up to date on what trends are currently attracting employees. Although every business has differing priorities and strategies, consider adding the following to boost employee satisfaction and productivity:

    Flexibility in work arrangements

    Encouraged during the COVID-19 pandemic, the option to work remotely and choose flexible hours remains a desirable benefit. Offering employees the opportunity to work from home or anywhere with internet access can aid in cultivating a healthy work-life balance. In addition, adopting flexible hours allows employees to manage their work schedules based on their individual needs, adjusting hours for personal commitments and peak productivity times. By embracing these flexible work arrangements, small businesses can foster a more inclusive and accommodating workplace culture.

    Focus on health and wellness

    Many modern employee benefits include initiatives to support employee health and wellness. Businesses are increasingly offering resources and programs to support their employees’ emotional and mental well-being, reflecting the growing focus on mental health in recent years. Benefits can include support systems such as counseling services, hotlines, and educational materials to promote better stress management. Employee Assistance Programs (EAPs) are another way employees can receive counseling along with referrals to external resources. In addition, employers can encourage healthy lifestyles through wellness programs such as fitness challenges, health screenings, nutrition training, and more. Providing benefits that support health and wellness can create a positive and thriving work environment.

    Emphasis on financial well-being

    With 80% of employees experiencing some degree of financial stress, it’s imperative for businesses to offer benefits that help employees improve their financial well-being. Small business owners can empower employees to make informed financial decisions by supplying a range of financial literacy resources, including workshops, online courses, and planning tools. Contributing tuition reimbursement or assistance with student loans is another effective method while also supporting their education. Benefits that equip employees with the necessary tools and knowledge to navigate their finances can help them develop better economic stability.

    Diversity, equity, and inclusion initiatives

    Improving diversity, equity, and inclusion (DEI) is a main priority for many employers to raise awareness and cultural competence among employees. One key component of a successful DEI program is ensuring all your employees have access to benefits that suit their needs. These inclusive benefits packages include expanded health care coverage, flexible paid holidays, comprehensive parental leave policies, and more. Catering to various unique needs through extensive benefit options helps attract and retain diverse talent.

    Strategies To Stay Ahead

    To outpace competitors, employers must develop strategies to meet the evolving needs of their workforce. Regular employee surveys and feedback sessions are essential for obtaining valuable insights regarding employee preferences and areas for improvement. These findings empower you to tailor your benefits package to better meet your employees’ specific needs. Regularly researching industry trends and staying informed about emerging best practices will also help ensure your benefits offerings are relevant and attractive to potential and current employees.

    Overcoming Challenges When Implementing New Benefits

    Implementing new benefits policies and procedures can present its own set of challenges. Budget constraints can pose a significant hurdle as businesses may have limited financial resources to allocate towards new benefits initiatives. Ensuring compliance with ever-changing legal requirements regarding benefits adds another layer of complexity. Moreover, employees may resist change, feeling hesitant toward new benefits programs or initiatives.

    As a small business owner, you can overcome these challenges by developing creative solutions and keeping employees involved. To address budget constraints, consider reallocating resources from less critical areas, such as non-essential equipment upgrades or extra office supplies, and prioritize benefit initiatives based on their potential impact and cost-effectiveness. In addition, stay in line with regulations by remaining current on legal requirements and investing in compliance training for relevant staff.

    Openly communicating and engaging employees in the decision-making process can ease employee concerns about new benefit initiatives. Proactively handling these challenges can help ensure a successful rollout of updated benefits, contributing to the success of your business and your employees in the long run.

    Manage Your Employee Benefits With GMS

    A professional employer organization (PEO) like GMS can help you find a benefits package that meets the diverse needs of your workforce and serves your business’s best interest. From group health insurance coverage to supplemental plan options, we have various employee benefits for you to explore and choose from. Along with finding a plan that makes sense for your goals, we can also support you in managing and administering benefits so that you can concentrate on operating and growing your business. Contact us today to learn more about our comprehensive benefits solutions!

  • Navigating HR responsibilities is a complex task, and while there isn’t a perfect approach to managing them, several courses could land you in hot water. Employers often overlook their HR duties, setting up policies and procedures only to leave them for long periods without review.

    As a small business owner, you have a lot on your plate, and though you may not be intentionally neglecting your HR responsibilities, things slip through the cracks. Creating and implementing a plan for your company’s HR needs is the best way to ensure your business is protected and compliant.

    But what’s the right choice for your company – building an in-house team of HR experts or partnering with a professional employer organization (PEO) to tackle your HR needs? While only you can answer that question, we’ve compiled a short comparison of your options to help you make the best decision for you and your business.

    Cost Of A PEO VS. In-House HR

    It’s essential to understand the cost of each option to determine the best option for your business. While PEOs can offer access to various benefits, they may not be the best choice depending on your goals, business size, and current needs.

    Economies of scale vs. variable cost

    One of the most compelling financial arguments for partnering with a PEO is the benefit of economies of scale. The co-employment model allows PEOs to pool employees from multiple client companies, creating a larger collective workforce. This scale enables PEOs to negotiate better rates for health insurance, retirement plans, and other benefits compared to what a small or medium-sized business could achieve on their own. If you’re struggling to offer competitive benefits due to high costs, a PEO could be a game-changer, providing access to premium benefits packages that attract and retain top talent.

    Depending on your size and complexity, you may need to outsource certain services to third parties, such as legal counsel for compliance issues or specialized payroll services, if you opt for an in-house HR team. These variable costs can fluctuate significantly, making budgeting for HR more challenging.

    While larger companies may absorb these costs more easily, small to medium-sized enterprises (SMEs) must carefully consider these potential expenses, as they can significantly impact the cost-effectiveness of maintaining an in-house HR department.

    Fee structure vs. salaries and overhead

    PEOs typically charge businesses a percentage of the overall payroll or a per-employee per month (PEPM) fee. This structure allows PEO services to scale seamlessly with your business as it grows, with the key advantage being the bundling of services. However, for some companies, particularly smaller ones with minimal HR needs, the cost of partnering with a PEO might exceed the expense of maintaining a small, in-house HR team.

    Opting for an in-house HR department introduces different costs, primarily the salaries for your HR professionals, in addition to the overhead associated with supporting these functions internally. This includes the cost of HR software platforms, ongoing training and development for HR staff, and other resources necessary to maintain an effective HR department.

    Services Provided By PEOs Vs. In House HR

    PEOs offer comprehensive HR services, including managing payroll, administering benefits, handling workers’ compensation claims, and overseeing risk management. In other words, PEOs are a one-stop shop where the complexities of HR management can be outsourced to a team of specialists, allowing your company leaders to focus on core business strategies and growth. The breadth of services offered by PEOs can be particularly appealing if you want to streamline operations and reduce the administrative burden associated with HR tasks.

    In addition, partnering with a PEO can help ensure compliance with federal and local labor laws and implement best practices in HR management. As rules and regulations are subject to change, PEOs can give you peace of mind that your policies are up-to-date, and your business is safeguarded. PEOs offer the support needed to manage a workforce effectively, avoiding common pitfalls and legal risks, particularly for SMEs.

    Unlike the co-employment model used by PEOs, traditional HR management means that all employment tasks, responsibilities, and liabilities remain solely within your company. If you prioritize a unique company culture or have specific HR management needs, in-house HR provides the flexibility to implement customized solutions. This direct relationship between employer and employee can facilitate a closer connection and potentially more personalized management of your team’s concerns and needs. However, it also means that your business retains all legal responsibilities and risks associated with employment – so you’ll need to stay vigilant to protect your team and your business.

    Value Of PEOs Vs. Traditional HR

    Beyond the day-to-day management of HR tasks, PEOs bring a strategic edge to human resources planning. With access to extensive data analytics and industry insights, PEOs can guide businesses in making decisions that enhance HR functions. This strategic approach can lead to higher employee retention rates and increased job satisfaction, as initiatives are backed by solid data and tailored to meet your team’s and your company’s needs.

    Having an on-site HR team means employees can access HR support whenever needed. An in-house team is also deeply integrated into a company’s culture and daily operations. This proximity allows HR professionals to develop a nuanced understanding of your company’s ethos, values, and interpersonal dynamics, enabling them to tailor HR strategies and initiatives that align closely with your business goals.

    Ultimately, a thorough cost-benefit analysis should guide you in choosing between partnering with a PEO or hiring in-house HR professionals. Your decision should not only fit within your financial framework but also align with your long-term business objectives. In other words, consider the immediate costs and savings in addition to the broader impact this decision will have on your company’s operations, culture, and growth potential.

    How GMS Can Help

    GMS provides comprehensive HR solutions to small, medium, and large companies throughout the United States. As HR professionals, we take on the administrative burdens that companies don’t have the time or expertise to manage effectively, including:

    If you haven’t made up your mind and are still turning over that question of which option is the best one for you, GMS can help. Our primary goal is to help you navigate your options with clarity and confidence. Contact us today, and let us help you make the most informed decision possible.

  • California has recently made updates to two crucial pamphlets that employers are required to provide to new hires. These changes aim to ensure that workers are well-informed about their rights, benefits, and the procedures to follow in the event of workplace-related issues.

    Understanding The Updates

    The California Department of Industrial Relations Division of Workers Compensation has revised the “Time of Hire” pamphlet. Employers must provide this document to all newly hired employees. The pamphlet serves as a comprehensive guide, explaining the intricacies of workers’ compensation, including the process of filing claims and accessing medical care. This update showcases the state’s commitment to ensuring employees are equipped with the necessary knowledge to navigate the complexities of workers’ compensation.

    The ”For Your Benefit” pamphlet

    In addition, the Employment Development Department (EDD) updated its “For Your Benefit” pamphlet, which must be provided to new hires and employees upon discharge. This document outlines the various benefits that the state provides to employees in the event of termination or when they’re on specific types of leave. It also offers valuable insights into obtaining unemployment insurance, tax requirements related to unemployment benefits, eligibility criteria for state disability insurance, and a list of workers who may not qualify for unemployment benefits.

    Compliance And Accountability For Business Owners In California

    These updates remind employers of their legal obligations to provide accurate and updated information to their employees. By complying with these regulations, employers contribute to a more transparent and accountable work culture where employee rights are respected and upheld.

    In light of these updates to mandatory pamphlets for new hires in California, professional employer organizations (PEOs) can play a pivotal role in assisting businesses in the state. PEOs can provide invaluable support by ensuring businesses remain compliant with the updated regulations and offer expert guidance on workers’ compensation, state-provided benefits, and other related matters. GMS’ HR experts are here to take on the administrative burdens of small business owners in California. Contact us today to learn more!

  • If you’re like most Americans, you’ve probably changed jobs several times in your career. And each time, you may have left behind a small retirement account with your former employer. But what happens to those accounts when you move on? Do you keep track of them? Do you roll them over to your new employer’s plan or an Individual Retirement Account (IRA)? Or do you cash them out and spend the money?

    According to the U.S. Department of Labor (DOL), millions of workers lose track of their retirement savings when they change jobs. This can result in lower retirement income, higher fees, and more taxes. To address this problem, the DOL recently proposed a rule that would facilitate automatic portability of retirement accounts for workers who switch jobs.

    What Is Automatic Portability?

    Automatic portability is a feature that allows your retirement savings to follow you from one employer to another without any action required from you. It works like this:

    • When you leave a job with a retirement plan with savings totaling $7,000 or less, the plan can automatically roll the money into a Safe Harbor IRA if the plan document allows it and you do not take action after receiving the required notices.
    • When you start a new job with a retirement plan, the Safe Harbor IRA provider can automatically transfer your savings to your new employer’s plan if the plan document allows it and you do not opt out after receiving required notices.

    The DOL’s proposed rule would allow vendors to charge reasonable fees for processing these transactions, which are currently prohibited by law. It would implement provisions of the federal SECURE 2.0 Act that allow automatic portability providers to receive reasonable fees in connection with executing automatic portability transactions through a new exemption in the Internal Revenue Code. In addition, the rule would also impose certain safeguards to protect workers’ interests, such as disclosure of fees, fiduciary responsibility, data security, and record keeping.

    What Are The Benefits Of Automatic Portability?

    Automatic portability can help you save more for retirement by:

    • Keeping your retirement savings consolidated in one place, making it easier to manage and monitor your investments
    • Reducing the risk of losing track of your retirement accounts or forgetting your passwords and login information
    • Avoiding the temptation of cashing out your retirement savings and paying taxes and penalties
    • Saving on fees and expenses that may be higher in Safe Harbor IRAs than in employer-sponsored plans
    • Taking advantage of the higher contribution limits and employer-matching contributions that may be available in employer-sponsored plans

    How Can You Take Advantage Of Automatic Portability?

    To benefit from automatic portability, check with your current and former employers to see if their retirement plans offer this feature. If they do, you must ensure you receive and read the notices informing you of your rights and options. You’ll also need to update your contact information with your current employer and IRA provider so they can reach you when necessary.

    If your current employer doesn’t offer automatic portability, you can still take action to consolidate your retirement accounts on your own. You can either roll over your old accounts to your new employer’s plan or an IRA of your choice. This way, you can avoid the drawbacks of having multiple small accounts and enjoy the benefits of having a larger retirement nest egg.

    Remember, your retirement savings are your future. Don’t let them get lost or forgotten. Take advantage of automatic portability or rollover your accounts today. Your future self will thank you.

    Actions For Employers

    As a business owner, the first step in supporting your employees is determining whether your retirement plan currently allows automatic portability transactions. If it doesn’t, decide what steps you need to take to make that feature available in your plan. Or, you can partner with a professional employer organization (PEO) like GMS. Our retirement experts at GMS ensure seamless transitions for employees when transitioning to our retirement plan. No more burdens associated with managing employees’ retirement benefits. Partner with GMS to unlock opportunities for your business and your employees. Get a quote from us today!

  • Stepping into adulthood comes with a game-changing moment – hitting the big 26 and waving goodbye to the safety net of your parent’s health insurance. It’s like unlocking a new level of independence but navigating the health care landscape can feel like a rollercoaster ride. This transition isn’t just about paperwork and getting the proper coverage; it’s a real-life journey into adulting. Picture this blog as your guide, unraveling the ins and outs of claiming your own health coverage. It’s going to feel like a breeze when you approach the 26th year of your life.

    Understanding The Transition

    Young adults lose coverage from their parents’ plans because of the Affordable Care Act (ACA), which only requires companies to cover dependents on a parent’s plan until they turn 26. Before the ACA, insurance companies dropped young adults from their parent’s policies after they reached a certain age or stopped attending college. This resulted in many young adults losing their insurance earlier in life. Now, with the ACA, adults 26 years and under can stay on their parent’s plan even if they:

    • Have started or finished school
    • Are no longer a dependent
    • Are married
    • Adopt or have a child
    • Turn down group health insurance through work 

    What this means is that when you turn 26, you’ll need to find alternative coverage to ensure you’re protected in case of illness or injury. Understanding the options available to you is crucial as you embark on this new phase of your life.

    Exploring Your Health Care Options

    It’s essential to understand you have various options when choosing health care options. Let’s take a look at your options:

    Employer-sponsored plans: If employed, your company may offer health insurance benefits. It’s essential to familiarize yourself with the coverage options and enrollment periods provided by your employer.

    Health insurance marketplace: You can explore plans through the Health Insurance Market, where you may be eligible for subsidies based on your income. A subsidy is a benefit given to an individual, business, or institution, usually by the government. It can be direct (cash payments) or indirect (tax breaks). It’s typically given to remove some burden and is often considered in the public’s overall interest, given to promote a social good or an economic policy.

    COBRA coverage: You may qualify for the Consolidated Omnibus Budget Reconciliation Act (COBRA) for a temporary extension of your parents’ plan, although it can be costly. This coverage gives workers, and their families who lost their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances, such as voluntary or involuntary job loss.

    Medicaid: Depending on your income, you may qualify for Medicaid, which provides low-cost or free health care coverage. In all states, Medicaid provides coverage for some low-income individuals, families and children, pregnant women, the elderly, and those with disabilities.

    Transitioning off your parents’ health plan can pose several challenges, such as understanding insurance jargon, comparing different plans, and budgeting for health care expenses. It’s normal to feel overwhelmed, but there are resources available to guide you through this process. The following are a few resources available to you:

    Financial Considerations

    • Budgeting for premiums: Evaluate the cost of premiums for different plans and consider how they fit into your monthly budget. For a healthy 26-year-old, the average cost of a marketplace plan is $372 per month.
    • Out-of-pocket expenses: Understand the potential out-of-pocket costs for deductibles, copayments, and coinsurance when comparing plans.
    • Health savings accounts (HSAs): If eligible, consider opening an HSA to save for medical expenses with pre-tax dollars. An HSA is a type of savings account that lets individuals set aside money on a pre-tax basis to pay for qualified medical expenses.

    In addition, it’s essential to understand the plan coverage:

    • Network providers: Check if your preferred doctors and health care facilities are included in the plan’s network to ensure continuity of care.
    • Prescription drugs: Assess how different plans cover the cost of prescription medications you may currently use or anticipate needing in the future.

    What Next?

    If 26 is just around the corner, you must start thinking about this process. Being able to compare your options allows you to get the best coverage for the best price as opposed to waiting until the last minute and rushing this decision. If your employer offers health insurance, you’re in luck. Your colleagues should be able to offer you advice, and if you’re lucky, your company might have a designated benefits specialist who can walk you through the entire process. If your employer doesn’t offer health insurance, the process will be longer, and you’ll have to make decisions on your own.

    For employers, have you considered partnering with a professional employer organization (PEO) like GMS? As your employees transition to their independent health care coverage, it’s essential you provide them with the tools and resources to make the right choice. When you partner with GMS, we provide access to comprehensive group health plans, leveraging our buying power to offer competitive rates and quality insurance. In addition, our Benefits Account Managers work with you and your employees to guide them through the enrollment process. We will also simplify complex paperwork, ensure compliance with regulations, and get the coverage your employees want and need. Contact our benefits experts today to ensure a seamless process for employees during this transitional period.

  • The phrase “aging with grace” has taken on a new meaning in modern times. As we age, we not only face the typical challenges associated with getting older but also a new set of factors that have reshaped the aging process. It’s crucial for individuals to confront these challenges head-on rather than avoiding them altogether. The good news is that people are becoming more proactive about aging, particularly those who have taken on the role of caregivers themselves. Recent data from New York Life reveals members of the Sandwich Generation, who care for aging parents and children, are actively saving for retirement, purchasing long-term care insurance, and setting aside funds for their children’s future care.

    Changing Care Options

    The aging population continues to transform the landscape of care options. In the past, Americans could rely on federal support to meet their retirement needs. However, today’s retirees can no longer be certain about the availability of such support. Federal programs are already under strain, with a significant increase in the number of retirees receiving social security benefits. In addition, the U.S. Census Bureau states approximately 4.4 million Americans (12,000 people per day) will turn 65 in 2024, placing even more pressure on an already stretched system.

    Statistically, individuals aged 65 or older have a 70% chance of requiring some form of long-term care support. Surprisingly, Medicare does not cover long-term care, and Medicaid coverage is limited to approved facilities, leaving individuals with minimal control over their aging journey. In addition, to qualify for Medicaid coverage, individuals must exhaust a significant portion of their hard-earned assets. Although some states have introduced long-term care funding programs, the limited benefits they offer are unlikely to cover the substantial costs associated with long-term care.

    The Role Of Private Insurance

    The retreat of many private insurance carriers from the long-term care space has left consumers with fewer options. However, private insurance alone cannot provide a comprehensive solution. While the current landscape may appear overwhelming, there are viable options available. As a business owner, you play a crucial role in supporting your client’s lifestyle goals as they age, including helping them design a robust financial strategy to meet their long-term care needs.

    Pandemic-Era Trends And Costs Of Care

    The COVID-19 pandemic has further highlighted the importance of at-home care, with 88% of Americans expressing a preference for receiving ongoing assistance in their own homes or with loved ones. In-home care costs an average of $60,570 annually, while a one-bedroom assisted living apartment costs around $63,337 annually. The average cost of a year’s care in a private Medicare-certified long-term nursing home room is $116,577. This preference for at-home care places additional strain on caregivers, impacting their personal finances, mental health, and social lives. Caregiving is often emotionally, socially, physically, and financially more challenging than expected, particularly for women who tend to spend more time caring for aging relatives.

    Building Support Systems

    As more individuals opt for aging at home, robust support networks become increasingly critical. Caregivers face mounting physical and mental health challenges, making it essential to establish reliable support systems. Data indicates that caregivers are already seeking help, with family members and friends being the most common sources of support. Planning for a network of paid and unpaid caregivers empowers individuals to maintain control over their care situation while alleviating the burden on individual caregivers.

    The Role Of Financial Planning

    Financial planning is often the weakest link in people’s support systems. Encourage your clients to plan early for their long-term care needs, regularly reassess their plans, and make necessary adjustments. Collaborating with a trusted financial professional can make all the difference, providing clients with the confidence and peace of mind they need as they navigate the complexities of long-term care.

    Addressing Long-Term Care Challenges With A PEO

    In navigating the increasingly complex landscape of long-term care, small business owners face unique challenges in supporting their employees and planning for their future care needs. A professional employer organization (PEO) can lend a helping hand in this journey, offering comprehensive solutions to address the evolving needs of employees and employers.

    Small business owners can access tailored benefits packages, expert guidance on financial planning for long-term care, and support in establishing robust support systems for employees when they partner with a PEO. In addition, GMS, a certified PEO (CPEO), can provide access to cost-effective insurance options and valuable resources to help small business owners and their employees navigate the intricacies of long-term care planning. Address the long-term care needs of your employees while securing their financial well-being by partnering with GMS. Contact us today to learn more.

  • As we enter the new year, Pennsylvania and New Jersey residents should prepare for changes in health care regulations. This 2024 legislative lineup promises new improvements ranging from coverage for donor breast milk to prescription-free hormonal birth control. The following is what you should anticipate from these pivotal new laws.

    Pennsylvania’s Owen’s Law

    Pennsylvania’s Owen’s Law underscores the benefits of breast milk over formula, particularly for newborns battling severe health conditions. Under this new law, Medicaid will now cover the cost of screened, pasteurized breast milk for mothers who are unable to meet the demand themselves, helping the fight against newborn malnutrition and gastrointestinal issues. Taking effect around January 20th, 2024, Medicaid coverage applies when breast milk is essential for infants with certain serious conditions. Most of this milk is given to newborns in hospital neonatal intensive care units, and some are sold in outpatient settings but can cost as much as $4 per ounce.

    Patients’ Rights In Pennsylvania

    Another Pennsylvania law safeguarding patients’ rights requires health care providers to receive both verbal and written consent before performing pelvic, rectal, or prostate examinations on anesthetized or sedated patients. This addition to the state’s Medical Care Availability and Reduction of Error Act promotes autonomy by ensuring that patients are informed and gave consent to such procedures. This does not apply in cases of emergencies when exams are necessary for providers to reach a diagnosis or provide treatment.

    Detecting Illicit Substances In Pennsylvania

    A new law requires health providers in Pennsylvania to test patients for xylazine and fentanyl, drugs frequently implicated in overdose deaths across the state. In addition, hospitals must now provide patients with educational materials and resources about the risks posed by these substances. Coupled with state-wide reporting of positive tests, these changes offer a dual approach to curbing drug addiction: data-driven intervention strategies and targeted patient education.

    New Jersey’s Road To Accessible Contraception

    Meanwhile, in the neighboring state of New Jersey, the contraception landscape is being transformed. An unprecedented law passed in 2023 now enables pharmacists to dispense hormonal birth control without a prescription. This radically increases accessibility for those seeking contraceptives.

    Capping Essential Medicine Prices In New Jersey

    A critical move for residents with certain health plans, New Jersey Governor Phil Murphy has introduced price caps for essential medications, including EpiPens, insulin, and asthma inhalers. With these cost-control measures, out-of-pocket expenses will be significantly lowered. Patients will only have to cover capped costs of $35, $25, and $50, respectively, for these essential medications, offering relief for individuals managing these chronic conditions.

    How PEOs Help Navigate These New Health Care Laws

    Due to these groundbreaking new laws, 2024 signifies an exciting new chapter for health care in Pennsylvania and New Jersey. The changing landscape of health care laws in these states presents challenges and business opportunities. Partnering with a professional employer organization (PEO) like GMS stands as a proactive solution. By leveraging the expertise of a PEO, business owners can navigate the complexities of these new regulations, gain access to comprehensive health care options, and streamline HR operations. This partnership with GMS ensures compliance and fosters a thriving and resilient workforce, ultimately paving the way for sustainable growth in this evolving health care landscape. So, as the new year unfolds, let us keep an eye on how these laws shape the health care landscape in your state so you can focus on growing your business. Contact us today to learn more.