WHEN MANAGEMENT AND EMPLOYEES WORK TOGETHER, BENEFITS COSTS GO DOWN

IMMS AOM Team — Fri, 11 May 2012 13:01:54 +0000

A commonality in many workplaces is the rift between employees and management when it comes to health care benefits. Employees usually accuse the company of being too frugal, and management is unable to find a compromise that makes everyone happy. In the end, employees of the company are left feeling like their hands are tied. Luckily, a recent session at the Society for Human Resource Management’s (SHRM) 2010 Annual Conference explained how one company, with fewer than 150 employees, saved around $2 million simply by creating a partnership between the employees and management staff. Together, the company was able cut the soaring costs of medical coverage while still providing excellent benefits to employees and their families. SHRM recommends an ongoing four-stage method to help control health care costs. Through evaluation, education, communication, and motivation, management and employees can work together to keep the costs of health care down.

Evaluation.Health insurance claims are processed by the provider or a third-party administrator, and in most cases, employers do not see the complete picture of how the benefits are being used. By requesting summative claims data, employers are able to see how money is being spent and who it’s going to.An evaluation of claims data can reveal unnecessary expenses, like miscoded treatments, erroneous charges, and misuse of the system. Employers will also notice ways to cut costs without reducing the benefits, such as when employees are prescribed medicines that are either available over-the-counter or in the formulary. The data will provide insight into the amount of out-of-network care that is being used.A thorough evaluation gives employers the information needed to better educate their employees on how to use their health benefits efficiently and eliminate unnecessary spending at the same time.

Education. Just as people tend to breeze through owner’s manuals and other instructions, the Explanation of Benefits statements from the insurance provider usually gets the same treatment. Without a complete understanding of how costs are determined and why rates go up, many employees operate under the guise that “if it’s covered, then just tack it on my bill.”

Meeting with small groups of employees is a great way to educate the staff on how the prices of their insurance premiums are related directly to how the employees, as a staff, use the insurance. Higher annual costs equal increased premiums for the following year and lower annual costs result in cheaper rates.

Give cost efficient suggestions to the staff, letting them know how they can help reduce the amount they spend each year. Recommend using only in-network physicians and clinics, and explain how doctors can provide samples of medication before writing expensive prescriptions for drugs that might not work. Since health care plans often cover the families of employees, make sure to host educational sessions where spouses can attend, as well.

Communication. Communicating the positives of cost effective health care coverage should begin at new employee orientation and continue throughout employment. Dedicating a wall or bulletin board to display current usage data and dollar figures is a key component to keeping employees up to speed on the state of their insurance programs. By making this general data known, employees are able to hold themselves accountable and see how the improvements they have made are affecting the system.

Motivation. With a little motivation from management, employees can see that their bosses are serious about reducing the amount they have to pay for insurance. Rewarding the employees when quarterly costs go down with picnics or even a one-month reprieve of premium charges can motivate the staff to continue to work toward more efficient health care usage.

Tony Alessandra, President of Insurance Solutions in Mission Viejo, California, specializes in Workers Comp CA. He's been assisting business owners, families, individuals, property management firms, the technology industry and Construction Trades for over two decades. Whether you need business insurance, Auto Insurance,Home Insurance, Work Comp Quotes or Group Health Insurance, Tony and Insurance Solutions brings the experience and markets you need to succeed.
949.348.7400 Insurance Solutions

Join The Conversation

Call today for a free quote 800-681-7759!

HOW SMALL BUSINESSES CAN USE LIFE INSURANCE AS A BUSINESS ASSET

IMMS AOM Team — Wed, 09 May 2012 13:59:54 +0000

Small business owners who have previously borrowed money can attest that actually being capable of repaying the loan is the core of credit worthiness. They can also attest that the approval process significantly hinges on how risky the applicant appears. That said, credit worthiness isn’t as simple as the term implies. There are actually many complex variables involved.

First of all, just because a new business has a seemingly valuable potential doesn’t mean things always pan out. In fact, new businesses are often notorious for failing to live up to expectations. A business might launch with an innovative concept, but will usually find that the road from concept to profit is long and hard. It’s also during the initial stages of a business where the owner is trying to figure out and reach their target market, a process that takes time and money when profits are at a bare minimum. This is a common reason that many business owners find themselves unable to make their loan payments.

When determining the credit worthiness of a business owner, lenders also look beyond just how balance sheets add up. For example, the lender might look at intangible aspects such as community leadership and ties, reputation, and character. This might include the lender investigating whether or not the business owner has a history of reliability and timeliness when paying off past financial obligations and how past relationships with the lending institution turned out. All of these factors will help determine whether or not the business owner is granted the loan.

One way to prove credit worthiness outside of the above, is by owning a Life insurance policy, as this can show that the business owner has a financial commitment to his/her business and values that commitment. In the eyes of the lender, the Life insurance policy means that the business owner has left a viable way for their beneficiary to follow-through with any financial obligations.

When a Life insurance policy is bought through the business, it makes it a business asset, and like any other business asset, the Life insurance policy will become part of the balance sheet that lenders will look at. If a portion of the Life insurance benefit is assigned to the lending institution, then the insurance can also be used as loan collateral. As far as loans go, the cash value of a Life insurance policy is another useful tool. The cash value can be a guarantee against defaulting, as it can be borrowed against for payments.

In fact, the cash value of Life insurance policy can actually serve several purposes for the business. Borrowing against it is quick and doesn’t require the business owner to get approved for a loan. Borrowing against a Life insurance policy is tax friendly and the cash value usually accumulates in a tax-deferred status, meaning that there aren’t any earning taxes while the policy is active. In most cases, a withdrawal (not surpassing the amount of paid premiums) isn’t subject to taxation. In the event more money is needed than has accrued in cash value, the business owner can usually borrow against the policy without triggering a taxable event.

View Map

Insurance Solutions, CA

33302 Valle Rd Suite 200
San Juan Capistrano, CA 92675Ph: 800.681.7759
Fax: 949.348.2373

Facebook | Twitter | LinkedIn | Website

Fill out our Happy Customer Survey Here

Join The Conversation

Call today for a free quote 800-681-7759!

ARE YOUR COMMUNICATIONS WITH EMPLOYEES TARGETED AND EFFECTIVE

IMMS AOM Team — Mon, 07 May 2012 13:52:04 +0000

ARE YOUR COMMUNICATIONS WITH EMPLOYEES TARGETED AND EFFECTIVE?

Modern communication methods have brought an overload of information. In this age, immense volumes of mail not only accumulate at the front door, it also accumulates in email in-boxes. The sheer volume alone leads us to delete spontaneously anything that isn’t a bill, personal or business matter, or of other significant importance.

This creates an especially challenging situation for employers attempting to communicate benefit issues with their employees. It also means that employers need to develop benefit communication presentations that employees don’t dismiss instantly and discard if they want to communicate benefit matters effectively. One way to do this is by considering your specific employees when developing communications. By identifying various employee groups, you can then work to target or customize the communications toward them.

It’s important to first understand that topic interest is going to strongly vary from generation to generation, as each will have different current needs and goals for the future. The current work force consists mainly of three generations: Those born after 1980, Generation Y; those born from 1965 to 1980, Generation X; and those born before 1965, the Baby Boomer Generation.

Generation Y are those that are relatively young and still in the beginning stages of their career. This group isn’t very likely to be contemplating their retirement or the importance of retirement savings. As most of us not in this generation can remember, the fallacies of youth might include a feeling of infallibility and an assumption that bad things only happen to others. So, this group might not pay much attention to health benefit information. This generation is accustomed to fast-paced media imagery and usually don’t have very long attention spans. Therefore, this group is more likely to be receptive if the communication is concise and visually catching and received through electronic portals, such as email.

On the other hand, those in Generation X are at a much different point in their lives. Children, a mortgage, contributing to a child’s college education, caring for an elderly parent, and contributions to a future retirement are all common financial responsibilities of this age group, and these responsibilities often compete with one another. This group is usually established enough to know the importance of a retirement plan, but still might not be sufficiently contributing, if at all, due to balancing other financial obligations. Knowing what affects this group can be the perfect gateway to communication. For example, a retirement plan communication that has a budgeting tool as a highlight could serve to gain viewer attention. An EAP (Employee Assistance Program) with a resource and referral service to get elderly care and childcare services might also be something this group would find useful. So, EAP availability could be a highlight of a communication and gateway to discussing other benefits.

Baby Boomers are at the end of their careers and quickly nearing retirement. Many are scrambling to account for bad financial decisions or lapses in savings and preserve whatever they’ve managed to accumulate thus far. Age also brings an increasing concern about health care issues. Any communication that targets these issues is usually very well received by this generation. Many in this generation aren’t very computer savvy and respond better to non-electronic communications.

The bottom line on targeted communications is quite simple: Whatever is interesting and applicable to us now is what we are most likely to read and pay attention to now. It only makes sense that effective communication is best achieved by knowing what’s important and when it’s important, and then developing and presenting communications accordingly.

View Map

Insurance Solutions, CA

33302 Valle Rd Suite 200
San Juan Capistrano, CA 92675Ph: 800.681.7759
Fax: 949.348.2373

Facebook | Twitter | LinkedIn | Website

Fill out our Happy Customer Survey Here

Join The Conversation

Call today for a free quote 800-681-7759!

Break The Cycle Of Workplace Accidents With Effective Accident Investigations

firstlast — Fri, 04 May 2012 13:00:54 +0000

You’ve heard the old adage about people not learning from history being doomed to repeat it? This is certainly applicable to the safety programs of businesses. If accidents are to be avoided, the business must learn how and why they happen in the first place. It’s only through this knowledge that businesses can prevent such accidents from recurring.

An accident investigation should be devised in a manner that will gather information thoroughly and objectively, not assign blame or point fingers carelessly. Accidents are rarely the result of one solitary causative agent. In fact, they generally involve a multitude of direct and indirect factors that result in human failure, mechanical failure, and/or poor work environment. Once a thorough investigation is completed, the business should effectively be able to develop new training and safety protocols to prevent the same incident from happening again. Here are 10 tips to assist you in conducting an investigation into an accident:

Always make sure any injured individuals receive appropriate first aid treatment and medical care.
Don’t disturb the area where the accident took place.
Secure the accident area.
Ensure the site is safe before beginning an investigation, but begin the investigation as soon as it is safe to do so to make sure that evidence hasn’t been disturbed and the incident is fresh on the minds of witnesses.
The safety program should define employee protocol for dealing with an accident site.
The safety program should also have an investigation guideline and checklist to ensure proper protocol adherence.
Materials needed to conduct an investigation should be readily available – camera, video recorder, personal protective equipment, notepads, pens and markers, accident and incident forms, checklists, measuring tape, evidence containers, and so forth. These should be used to document the site of the accident thoroughly, gather and record information, and preserve evidence.
All witnesses should be documented immediately and interviewed as soon after the accident as possible.
Anyone who used the equipment involved or that was near the accident scene just before or after the accident should also be documented immediately and interviewed as soon as possible.
Objective questions should be asked in a manner that will give a comprehensive snapshot of the accident, events leading up to the accident, and the conditions of the environment surrounding the accident. This should include supervisory instruction, equipment condition, work protocol, weather conditions, and such.

From the above, the business should be able to analyze the collected information and evidence and determine how and why the accident occurred. From there, the business will be able to create or adjust safety and training protocols to prevent future accidents.

For more information on Business Insurance, contact Insurance Solutions today!

Insurance Solutions

33302 Valle Road Ste. 200

San Juan Capistrano, CA. 92675

Ph: 800.681.7759
Fax: 949.348.2373

tony@ins-solutions.com

See What People Have To Say About Insurance Solutions!

firstlast — Wed, 02 May 2012 13:00:44 +0000

For years Insurance Solutions focuses on satisfying your entire Insurance request. Our satisfied customers have poured their words in Business Review 360°. Please check out the reviews to get to know us well.

You can write a review, give us a star rating and see what others think about us.

Insurance Solutions

26522 La Alameda

Mission Viejo, CA 92691

Ph: 800.681.7759

Fax: 949.348.2373

eMail: tony@ins-solutions.com