It's no secret that healthcare costs have risen dramatically over the past several decades; in fact, according to the Kaiser Family Foundation (KFF) healthcare spending rose nearly a trillion dollars between 2009 to 2019 when adjusted for inflation.  

In 2019, according to the KFF’s report estimates, healthcare spending in 2019 almost hit $3.8 billion–which comes out to about $11,582 per person. By 2028, these costs are expected to reach $6.2 trillion, or about $18,000 per person. For a closer look at the cost breakdown in healthcare spending in 2020, check out these handy charts from the American Medical Association.  

With such excessive costs to contend with, employers nationwide are searching eagerly for ways to control costs without negatively affecting employees’ access to sound healthcare coverage. As such, more and more companies are choosing to set aside funds to pay for employees’ healthcare instead of offering a more traditional group healthcare plan.  

When weighing the best plan and healthcare strategy for your workforce, savvy employers nationwide often investigate the differences between healthcare plans that are fully insured or self-funded.

What Is the Difference Between Fully Insured vs. Self-Funded?

Fully Insured Plans

A fully insured health plan is a more traditional route of insuring employees. Employers pay a fixed premium to a carrier that will cover the employees’ medical claims. Although they can be more expensive, employers can save money by providing exceptional service to keep them happy and healthy, which can serve as a powerful tool to attract and retain talent.  

In fully insured health plans, employers pay a premium to the insurance carrier. The premium rates are annually fixed based on your enrolled employees in the plan each month and will only change if your number of employees changes. Employees are required to pay their deductibles or copays.

The main downside when choosing a fully insured health plan is that it stops you from customizing your health plan completely. However, this option does eliminate the administrative duties and expenses often associated with a self-insured health plan. The insurance carrier deals with the employee claims, resulting in lower risk for the employer too.

Self-Funded Plans

When selecting a self-funded health plan, also known as a self-insured health plan, the employer runs the health plan and assumes all the financial risk for providing benefits to employees. Self-funded plans are more flexible than fully insured plans because they give you the potential to design a healthcare plan that meets all employee needs; self-funded plans can also reduce the cost of premiums as a result.

However, if opting for a self-funded health plan, employers must calculate the fixed and variable costs for the plan. Costs can include administrative fees, stop-loss premiums, and other set fees. Additional costs include healthcare claim payouts that vary each month and are contingent on submissions from employees and dependents.

To mitigate the financial risk mentioned above from a self-insured health plan, employers can implement stop-loss or excess-loss insurance, which reimburses the holder for claims that exceed a set amount. This can be used to cover claims for one covered individual or cover claims that exceed the level for a group of covered employees.  

Although self-funded plans can save employers money, self-funded plans require more planning and likely warrant a dedicated internal team to navigate the inherent complexities.  

Which Plan Is Right for You?

If you want to know more about which plan type is right for your business, the next step is to connect with a top-rated, experienced employee benefits broker.  

Looking for more exclusive content? Listen to our latest episode of This Week in Benefits, and check out our By the Numbers blog series.

‍

Paid time off (PTO) policies are always a big part of the equation for individuals comparing benefits offerings across potential employers. Still, despite the need and desire for competitive PTO, 800 million days of PTO go unused by American workers every year, according to an article by Forbes. This number equals about 6.3 days of unused time off per every American with a full-time job.  

Unused vacation days are not only costly for employers, but also can lead to burnout among members of the workforce. What’s worse, these problems have been exasperated by the pandemic due to work-from-home culture and a blurring of lines between work time and personal time.  

In response to these trends, some companies like Goldman Sachs are issuing a mandatory PTO policy, with the hopes of curtailing burnout and encouraging more work-life balance. In this piece, we’ll dive into some of the reasons employers across the nation are weighing the pros and cons of implementing a mandatory PTO policy.  

1. Burnout

A recent study by Deloitte found that 77% of workers reported feeling burned out at their current job. What’s more, 64% said they were passionate about their jobs while admitting they were still frequently stressed out.  

Burnout manifests in different ways depending on the individual, but burnout can lead to reduced production and employee engagement while simultaneously contributing to higher turnover rates. Recognizing the signs of burnout and requiring employees to take their earned vacation time forces them to unplug and take a step back from work, allowing them to recharge and be more productive upon their return.

2. Finances

Requiring employees to use their time off is also good for an employer's bottom line. When employees don’t have leftover PTO days at the end of the year, employers won't need to pay for that unused time or carry them over into the next year. For smaller companies where resources may be more scarce, this makes the accounting process easier to manage.  

3. Culture

One of the reasons employees may be hesitant to take time off work is because of how they believe their coworkers will perceive them. A good work ethic is something that is universally admired, and nobody wants to be the one asking their coworkers to take on more work on their behalf.  

Requiring employees to use their time off not only makes it easier for employees to feel comfortable asking for help, but also sets a precedent that time off is not only encouraged but expected as well. Some companies have even gone as far as tying in financial incentives, specifically by requiring employees to take a certain amount of time off to collect their end-of-year bonus. Changing the company culture around time off is a long-term approach, but one that could lead to a more relaxed and balanced workforce.  

4. Recruitment

Lastly, having mandatory PTO will help recruit young talent. When searching for a job, research reveals that Gen Z workers heavily prioritize maintaining a work-life balance over other working generations. Attractive PTO policies, however, are of no use if a worker gets into their role and discovers that none of their peers utilize the policy. Mandatory PTO can help create a culture that prioritizes a healthy work-life balance, which could prove attractive in recruiting and retaining younger members of the workforce.  

Is Mandatory PTO Right for Your Company?

Mandatory PTO is not a necessary step for every business, especially if your culture has other measures in place to promote work-life balance. However, if you notice that your employees are hesitant to take time off, it may be time to audit your policy and gauge whether mandatory PTO could be a useful strategy.  

Other Ways to Encourage Employees to Take Time Off

Perhaps mandating PTO use is not the best scenario for your company–fair enough. Other ways to encourage time off could include additional all-company holidays that do not necessarily align with the federal holiday calendar. These days can set employees’ minds at ease because they won’t need to worry about getting their work covered or falling behind.

Another viable option: Offering financial incentives for employees to utilize vacation days. For instance, some companies such as PwC have implemented “summer Fridays,” so employees can start their weekends early in the warmer months.

No matter your specific solution, encouraging time off is an important strategy for HR leaders and managers to consistently promote year-round.

For more information, listen to our recent podcast episode, “Combatting Employee Stress and Financial Burnout With Voluntary Benefits,” or read our post “The Pros and Cons of the Four-Day Workweek.”

Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, and be sure to check out our By the Numbers series.

‍

With over 50 years of experience, Omaha-based consultant Marty Traynor is an expert in the world of insurance and employee benefits. Recently, he interviewed other industry experts to get their perspectives on everything from the insurance world to corporate leadership and beyond.

During the interview, Traynor spoke with Kari Beam, a Certified Executive Coach and the Founder of Kari Beam Coaching, about her recent career transition and knowledge of the healthcare industry. For the past 15 years, Beam worked in healthcare leadership, including as a Chief Strategy Officer for Bon Secours Mercy Health and for over a decade at HCA, before starting her own firm in 2022.  

Beam shared her thoughts on pandemic-induced stress being felt by the healthcare industry and the future of the healthcare system. She also offered some advice for those looking to start out in the healthcare industry.  

Beam also discusses her new role as an Executive Coach. She advises those looking to make a similar change to take some time to really get to know themselves before committing to a new direction.  

For more advice and insights, watch the video below for the full conversation. Also, be sure to watch Mployer Advisor’s compelling, on-demand webinar co-presented by Beam– titled “Tips for Managing a Hybrid Workforce and Redefining Company Culture”–or read the recap here.  

Stay tuned for future “A Conversation With” interviews led by Traynor.  

Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, including our recent webinar recaps and show notes from Mployer Advisor’s new podcast “This Week in Benefits.”  

‍

Business travel accident (BTA) insurance, also considered a voluntary benefit, protects employees and organization members when traveling for work. This type of insurance offers coverage against any financial burden that may arise if an employee is injured or even dies in a tragic accident.

The main components of BTA insurance are accidental death and dismemberment; however, some forms of BTA insurance also include medical benefits and on-premise coverage. Employers pay premiums, but payouts go directly to employees or their beneficiaries.

Who Needs Business Travel Accident Insurance?

BTA insurance is recommended if your employees travel frequently, either for domestic or international trips. BTA insurance should even be considered if you take annual excursions with members of your team or the entire company.  

Typically, companies invest in BTA insurance to cover the potential loss they would bear if an employee is injured or even dies while traveling. These professionals could include high-level officials or key position holders whose loss could severely impact the company, but BTA insurance is also recommended for all traveling employees regardless of company rank.

In specific, many travelers can benefit from this type of insurance, including:

• Journalists, war correspondents, or people who visit dangerous destinations for work
• Missionaries

• Frequent business travelers (both global and domestic)
• Government employees

What’s more, business travel insurance mitigates all risks associated with local or international travel. Whether it is the loss of baggage, theft, illness, or trip cancellations, BTA insurance can offer protection against all mishaps. For that reason, providing this should afford traveling employees and employers peace of mind.  

Traveling for business can pose more risks than traveling for leisure, so BTA insurance addresses business travelers' unique concerns, including coverage for terrorism, kidnap and ransom, and emergency evacuation, among many others.

What Do the Policies Cover?

Every BTA insurance policy varies in coverage options, price, and additional benefits. Here are some common coverage options that business travel accident insurance includes:

• Natural disasters and terrorism  
• Trip/baggage delays, interruptions, and cancellations
• Accidental death & dismemberment (AD&D)
• Flight accidents

• Ransom or kidnap
• Emergency evacuation
• Repatriation of remains

Again, various policies have different limiting provisions; for instance, some BTA insurance plans may only cover air travel-related accidents. On the other hand, some BTA plans could stipulate a certain travel distance from home or travel to specific destinations before coverage kicks in.

Why Business Travel Accident Insurance Is a Good Idea

If your business requires employees to travel frequently, you should consider BTA insurance for your employees' financial well-being and protection–not to mention to safeguard your company from unnecessary expenses. In the absence of this insurance plan, any emergency, fall, or slip accident could cost your company thousands of dollars.  

BTA insurance protects your business by helping you avoid medical bills or expensive lawsuits. Of course, this type of insurance also protects your company’s greatest asset: your employees.

Because traveling is unpredictable, BTA insurance eliminates the guesswork out of your employees’ business or paid trips. This coverage also allows both the employer and employees to focus on their work and enjoy a hassle-free trip, rather than worry about possible travel risks or repercussions out of their control.

How to Get Business Travel Accident Insurance

It doesn’t matter if you own a small local retail shop or a large manufacturing company, offering BTA insurance to your employees can protect your workforce–and your bottom line– against injuries and accidents.  

To obtain BTA insurance, work with your business insurance broker to discuss customized options appropriate for your industry and specific needs. An experienced broker can help employers find the right coverage for their unique needs.

Search now on Mployer Advisor to see top-rated commercial insurance brokers near you.

Curious about other insurance topics? Check out the Mployer Advisor blog where you can find all your insurance questions answered.

‍

Business interruption insurance is a type of commercial insurance that compensates your company for any lost revenue or unexpected expenses.  

Business interruption insurance generally does not cover temporary interruptions, such as power outages, or offer protection against losses unrelated to property insurance. If your company experiences an unexpected incident, like a fire, then your office could be forced to close temporarily. During these types of unforeseen closures, business interruption insurance could cover your expenses during that time.

Although your business insurance broker can discuss specific events covered by your policy, below are the different types of expenses that business interruption insurance covers in most cases.  

Rent or Lease Payments

Business interruption insurance covers all your lease and rental payments while your business cannot operate. If you are closing your business temporarily, you will still have to make rent or lease payments on the property. In most cases, business owners must pay for the equipment they don't own.

For instance, if your electronics store is damaged in a fire, you can use business interruption insurance to cover the rental payments until your shop reopens and throughout the renovation period.

Lost Revenue

Let's suppose your business can no longer make sales, serve customers, or work with clients because of damage to your property. Interruption insurance compensates your business for lost revenue, and the policy guarantees that a temporary shutdown does not turn into a permanent closure.

Relocation Expenses

There are times when you could be forced to relocate your business. If any devastating or unexpected event forces you to relocate, business interruption insurance will help you bear the brunt of the moving costs. Your business could also use this money to cover the rent in a new location.

Payroll

Retaining employees and covering their wages can feel impossible doing a temporary business closure business because you may have difficulty paying their wages. With business interruption insurance, you can pay your employee wages on time. Most policies offer coverage for up to a year for each employee.

An example: If a water pipe bursts in an architecture firm, it can flood the office and destroy valuable documents. Moreover, the carpeting, furnishings, and walls could be damaged. With business interruption insurance, the company can pay their employees for up to a year while the space is repaired.

Taxes

Even if your business is experiencing a temporary shutdown, your company will still have to meet its annual and quarterly tax obligations.

With business interruption insurance, you will have enough funds to pay your taxes, even with no revenue.

Loan Payments

Most business owners, especially small business owners, have loans to pay. If you are not making any substantial profits, business interruption insurance will ensure you can make your loan payments and pay down your loan.

How Much Coverage Should You Have?

Typically, business interruption insurance has a coverage limit, or the maximum amount allocated toward a covered claim. All financial losses that exceed your coverage limit become your responsibility. Thus, it is crucial to opt for coverage limits suitable for your business needs.

Here are a few points employers should consider when selecting business interruption coverage:

• How much time would it take to get your business back up after experiencing a loss?
• How well is your commercial building protected?

• Are your sprinklers and fire alarms up to date?
• Is a comparable commercial space available nearby? If not, how long could it take to find a suitable temporary or even permanent location?

Why Is Coverage Important?

Business interruption insurance can help you pay for extra expenses and replace lost income if your business experiences an unexpected and damaging incident. This type of coverage is a crucial component of every solid business plan.  

Business interruption insurance typically has a restoration period that refers to the length of time your policy can help pay for extra expenses and lost income. Ensure you read your policy documents closely and consult your broker to understand your restoration period. Generally, it takes two to three days before the restoration period kicks in, but it can also last for about a year.

The best way to get the right business interruption insurance coverage for your company is to work with an experienced commercial insurance broker, preferably one who specializes in your company’s industry.  

Looking for more exclusive content? Check out the Mployer Advisor blog, and read on for what types of business insurance are required for your company.

‍

A survey of benefits brokers conducted by Wellfleet Workplace and EIS found that brokers’ top pain points all center around demands for better technology from their carriers. The survey, conducted to gauge broker sentiment on partner technologies, also examined factors that impact broker satisfaction and their ability to be successful partners with carriers in the current workplace benefits market.

What Are Brokers' Top Carrier Pain Points?

According to the survey, respondents’ top six carrier pain points are all IT-Related. The specific pain points include:

• Commission structure (52%)
• Billing errors (48%)
• Lack of real-time data insights for the broker and client (44%)
• Time to underwrite the group (43%)
• Limited plan customization and slow data-processing time (42%)

The survey’s results also reveal that while brokers are increasingly embracing their roles as advocates for employer clients, they find themselves in an uphill battle with legacy technology. This finding is critical because technology is the No. 1 reason brokers will recommend a carrier to a client, according to the survey's researchers.

“Employers are stretched thin with the management of their current benefits programs, as well as crafting and implementing benefit strategies that resonate with their employees. When you add in a poor technology experience, the pressure HR benefits managers feel grows exponentially,” said Samantha Chow, LAH Markets Lead at EIS in a statement. “The survey findings reveal the carriers that are able to provide meaningful solutions are going to excel.“

The aforementioned survey also found that, after technology, the other top factors that influence brokers’ carrier recommendation are financial rating (57%) and the claims submission process (36%).

Why Is Technology Needed to Support Client Needs?

In order to meet the growing demands of clients and the changes caused by the ongoing pandemic crisis, brokers have pointed to a need for strong technology enablement from their carriers. Data from the survey reveals that in order for a broker to recommend a carrier to a client, there first needs to be confidence that the carrier will provide a seamless digital experience for both broker and employer.

What’s more, brokers want to be able to provide their clients a digital-first, customer-centric experience; this includes the ability to access portals and microsites, as well as the power to easily integrate with client benefits administration systems.

When asked about the importance of a carrier’s ability to provide a robust digital experience with features such as a broker portal, client analytics, and educational materials, 93% of respondents ranked it as “very important.”

Looking for more content related to brokers and digital transformation? Read on for “How to Choose an HR Software System.”

‍