The document summarizes key issues that nonprofit employers may face under the Patient Protection and Affordable Care Act (PPACA). It notes that nonprofit employers must consider whether each member of a controlled group can independently meet the requirements of offering health care coverage to avoid penalties. It also emphasizes ensuring proper classification of employees versus contractors to avoid penalties. Additionally, it states that true nonprofit volunteers do not count towards determining employer responsibilities under PPACA, but hours worked by employees volunteering after hours should be tracked. The document also discusses available accommodations from the contraceptive mandate for certain religious nonprofits if their plans lose grandfathered status.
Health Care Reform Strategies for Small Employers:
• Health Care Tax Credits and Penalties
• The Recently Delayed Pay or Play Mandate
• Health Insurance Exchanges
• SHOPs
• Other Cost-Savings Opportunities
• Strategic Decision Making for Large and Small Employers
• And more!
Health Care Reform - Small Business Health Options Program (SHOP) UpdatesCBIZ, Inc.
One of the components of the Affordable Care Act is the Small Business Health Options Program (SHOP). The SHOP is the marketplace, sometimes referred to as “exchange”, specific to small employers.
An open enrollment checklist, created by eHealthInsurance, to help employees find the best personal health insurance solution for the 2012 benefit year - via http://www.eHealthInsurance.com
Employer coverage and the era of exchangesagavrilescu
The document summarizes key provisions of the Affordable Care Act that impact employers and their decisions around offering health insurance. It discusses the employer mandate requiring firms with over 50 employees to offer affordable coverage or face penalties, and notes that while the mandate was delayed until 2015, other ACA requirements like the individual mandate and health insurance exchanges take effect in 2014. The summary examines factors that may influence employer decisions around offering coverage, such as reducing workforce size, limiting hours, lowering premium contributions, and dropping coverage for early retirees to mitigate costs under the new rules.
Health Reform Bulletin 125 | Updated Employer Shared Responsibility Guidance,...CBIZ, Inc.
The latest HRB has been released. Get updates on the following: 1) Updated Employer Shared Responsibility Guidance; 2) ACA Implementation Guidance; 3) Gender Identity Discrimination: Preliminary Injunction Issued; 4) Final Rules - Premium Tax Credit; and 5) 2018 Benefit and Payment Parameters.
When a company considers offering an HRA, they want to be sure their employees will find it valuable.
In this first session in a three-part webinar series, we’ll show exactly what the HRA experience is like for an employee. We’ll walk through:
The basics of how an HRA works
How your employee can buy health insurance
What they need to do when they go to the doctor or have another expense
How they’ll submit expenses for reimbursement
How your employee will receive reimbursement
Which expenses are eligible
How an expense is approved
How the allowance works, including rollover, recommended amounts, and more
Need help understanding your health insurance options?
Don't know what to do during open enrollment?
Want to help your employees with their healthcare costs but don't know how?
We got you.
Open Enrollment 101 will teach you everything you need to know about open enrollment, how to evaluate your plan options, and how employers can help their employees out with their healthcare costs.
In today's multi-generational workforce, health and wellness benefits are weighted equally with salary expectations. This is why it's important for small and large businesses alike to embrace health and wellness benefits to recruit top talent as well as retain valued employees.
While offering these benefits has been shown to improve employee engagement and productivity, it comes with some challenges. This webinar reviews common questions human resources professionals confront when offering health and welfare benefits to employees.
Facilitated by ERISA attorney Larry Grudzien, this webinar covers the following:
- Questions Surrounding Tax
- Reporting Disclosures
- ERISA, COBRA & FMLA
- Workers Compensation
- Affordable Care Act (ACA)
Benefits are a critical piece of an employee compensation package, with health care benefits reigning most important. Whether you're already offering these benefits or considering adding them to your benefits offerings, view our webinar to learn more and remain competitive in the talent marketplace.
Health Care Reform Strategies for Small Employers:
• Health Care Tax Credits and Penalties
• The Recently Delayed Pay or Play Mandate
• Health Insurance Exchanges
• SHOPs
• Other Cost-Savings Opportunities
• Strategic Decision Making for Large and Small Employers
• And more!
Health Care Reform - Small Business Health Options Program (SHOP) UpdatesCBIZ, Inc.
One of the components of the Affordable Care Act is the Small Business Health Options Program (SHOP). The SHOP is the marketplace, sometimes referred to as “exchange”, specific to small employers.
An open enrollment checklist, created by eHealthInsurance, to help employees find the best personal health insurance solution for the 2012 benefit year - via http://www.eHealthInsurance.com
Employer coverage and the era of exchangesagavrilescu
The document summarizes key provisions of the Affordable Care Act that impact employers and their decisions around offering health insurance. It discusses the employer mandate requiring firms with over 50 employees to offer affordable coverage or face penalties, and notes that while the mandate was delayed until 2015, other ACA requirements like the individual mandate and health insurance exchanges take effect in 2014. The summary examines factors that may influence employer decisions around offering coverage, such as reducing workforce size, limiting hours, lowering premium contributions, and dropping coverage for early retirees to mitigate costs under the new rules.
Health Reform Bulletin 125 | Updated Employer Shared Responsibility Guidance,...CBIZ, Inc.
The latest HRB has been released. Get updates on the following: 1) Updated Employer Shared Responsibility Guidance; 2) ACA Implementation Guidance; 3) Gender Identity Discrimination: Preliminary Injunction Issued; 4) Final Rules - Premium Tax Credit; and 5) 2018 Benefit and Payment Parameters.
When a company considers offering an HRA, they want to be sure their employees will find it valuable.
In this first session in a three-part webinar series, we’ll show exactly what the HRA experience is like for an employee. We’ll walk through:
The basics of how an HRA works
How your employee can buy health insurance
What they need to do when they go to the doctor or have another expense
How they’ll submit expenses for reimbursement
How your employee will receive reimbursement
Which expenses are eligible
How an expense is approved
How the allowance works, including rollover, recommended amounts, and more
Need help understanding your health insurance options?
Don't know what to do during open enrollment?
Want to help your employees with their healthcare costs but don't know how?
We got you.
Open Enrollment 101 will teach you everything you need to know about open enrollment, how to evaluate your plan options, and how employers can help their employees out with their healthcare costs.
In today's multi-generational workforce, health and wellness benefits are weighted equally with salary expectations. This is why it's important for small and large businesses alike to embrace health and wellness benefits to recruit top talent as well as retain valued employees.
While offering these benefits has been shown to improve employee engagement and productivity, it comes with some challenges. This webinar reviews common questions human resources professionals confront when offering health and welfare benefits to employees.
Facilitated by ERISA attorney Larry Grudzien, this webinar covers the following:
- Questions Surrounding Tax
- Reporting Disclosures
- ERISA, COBRA & FMLA
- Workers Compensation
- Affordable Care Act (ACA)
Benefits are a critical piece of an employee compensation package, with health care benefits reigning most important. Whether you're already offering these benefits or considering adding them to your benefits offerings, view our webinar to learn more and remain competitive in the talent marketplace.
This document summarizes the benefits available to Starbucks partners. It describes health coverage including medical, dental and vision insurance. It also mentions a 401k retirement plan with company matching, stock equity programs, tuition reimbursement, paid time off, and various other benefits. The document provides details on eligibility requirements and enrollment processes for various benefits programs.
Open enrollment is the only time of year to get an individual policy without a qualifying life event. Our webinar makes sure you and your employees are prepared.
The document discusses how the federal government is incentivizing small businesses to offer a full portfolio of employee benefits through tax credits and regulations, even if employees pay for the benefits themselves. It provides an overview of the benefits that should be offered (health insurance, retirement, etc.), tax credits available for small businesses that offer health insurance, and how setting up a cafeteria plan can reduce taxes for both employers and employees who purchase voluntary benefits like life insurance.
The ICHRA vs. the QSEHRA: Which is right for your business?PeopleKeep
This document compares the Individual Coverage Health Reimbursement Arrangement (ICHRA) and the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). It discusses eligibility requirements for employers and employees, allowance caps and budgetary guidelines, premium tax credit compatibility, and considerations for which arrangement may be a better fit depending on an employer's needs and budget. The presenter concludes by describing the ICHRA offering available from PeopleKeep starting in September 2019.
The document provides information about changes to employee benefits in 2017 including changes to medical plans and networks. It encourages employees to research their options for urgent care centers versus freestanding emergency rooms to help save on costs. It also provides a reminder about tobacco surcharges and cessation programs to help control premium costs.
Accountable Care Act Employer Compliance.sharedoc.Roberta Winter
This document provides a roadmap for employers to comply with the employer shared responsibility provisions of the Affordable Care Act (ACA). It explains that employers with 50 or more full-time equivalent employees must offer affordable health insurance that provides minimum value to full-time employees and their dependents or pay a penalty. It outlines the process for determining the number of eligible employees and calculating any penalties owed based on two tests: a W-2 wage test or look-back measurement method. The document also provides guidance on the criteria a health plan must meet to avoid penalties, including coverage and benefit thresholds.
The document analyzes data from over 2,000 employers using a defined contribution health benefits solution, finding that on average employers offer $426 per month allowance, while employees utilize $380 on average. Compared to traditional group health insurance, employers using a defined contribution solution save an average of 57% on health benefits costs. The defined contribution model is being adopted most by small employers with 1-49 employees across a variety of industries nationwide.
Maimonides Medical Center in Brooklyn has formed a formal wellness committee with representatives from top management, unions, and rank-and-file employees to expand existing wellness programs and introduce new initiatives in 2014. The hospital's workforce of 6,500 includes members from several unions and non-union management. The goal is to promote employee health to improve patient care and support employee well-being. Existing programs include a walking competition and plans to strengthen smoking cessation and wellness fairs. A grant will fund incentives for participation in selected wellness activities.
Health Reform Policy and Information UpdateTom Daly
The document discusses key provisions of the Affordable Care Act, including the individual mandate, health insurance exchanges, essential health benefits, Medicaid expansion, and the employer mandate. It provides details on eligibility and requirements for the individual mandate, health insurance exchanges, and employer mandate. The document also outlines goals and funding mechanisms for expanding health insurance coverage.
This document provides an overview and update on upcoming health care reform provisions taking effect in 2014. Key points include:
- Beginning in 2014, employer-sponsored plans must limit waiting periods to 90 days and annual out-of-pocket costs. Essential health benefits must also be covered.
- Health insurance exchanges will be available for individuals and small businesses to purchase coverage. Employers with 50+ employees face potential penalties if not offering affordable coverage.
- Annual limits and preexisting condition exclusions will be prohibited. Premium subsidies and an individual mandate also take effect. Small business tax credits are available.
- Wellness program incentives are increasing. Expanded Medicaid coverage was ruled unconstitutional but other provisions remain on track for 2014 implementation
The document summarizes key provisions of the Affordable Care Act that will impact employers in 2013 and beyond. It outlines requirements around counting employees, defining small and large groups, waiting periods, health insurance exchanges, employer tax credits, and affordability standards. It also provides an overview of the Summary of Benefits and Coverage documents employers must provide employees and auto-enrollment provisions for larger companies.
This document discusses employee benefits offered by hospitals, including benefits that are tax-free or taxed at preferential rates, as well as benefits where tax liability is deferred. It provides an example to calculate the total value of benefits for a hypothetical hospital employee. The total value of benefits for this employee, including payroll tax contributions, retirement plan contributions, paid time off, health care, life insurance and long-term disability, is over $21,000, representing approximately 30% of their total compensation.
The document discusses a Wellness Transformation program developed by A Charitable Life ("ACL") that provides supplemental employee benefits while saving employers money on payroll taxes. Through a cafeteria plan, the program reduces employees' taxable income which lowers payroll taxes for both employers and employees. Employers can expect to save an average of $660 per employee annually in FICA taxes. The tax savings are used to provide employees with benefits like life insurance, health-related products, and retirement income with no reduction in take-home pay.
The Insurance Act 2015 comes into effect today, meaning that any insurance or reinsurance contract entered into or varied from today will be governed by the Act.
The effects of the Act are far reaching: changing insurance legislation that has been in place for over a century, and impacting on any transaction governed by the laws of England, Wales, Scotland and Northern Ireland, with a potential to affect organisations across the world.
Chapter 6Alternative Responses and Initiatives of Institutions aJinElias52
Chapter 6
Alternative Responses and Initiatives of Institutions and Professions
Nongovernmental health care organizations provide most medical services and handle the financing of much of the system. For-profit and nonprofit institutions operate side by side, often competing directly for the same business.
This chapter identifies a number of strategies that individuals and organizations adopt in response to governmental programs or initiate on their own to influence health policy. We start with Table 6-1, which outlines the actors and the alternatives for responding to government actions and the marketplace. Where alternatives have been addressed and terms defined in earlier chapters, we try not to repeat that information.
6.1 COMMON RESPONSES
All of the players listed in Table 6-1 employ strategies to influence the marketplace and its regulators. These can be classified into three main types of interventions:
• Public relations
• Marketing and education
• Lobbying
Table 6-1 Responses and Initiatives of Institutions and Professions
Common Approaches
• Public relations
• Marketing and education
• Lobbying
Payers
• Employers
• Eligibility
• Subsidy offered
• Plans offered
• Relationship with insurers/self-insurance
• Worker education and training
• Insurers
• Method of organization
• Method of payment
• Plans offered
• Case management/carve-outs
• Utilization constraints
• Consumer education
Providers
• Professionals
• Organization of practice
• Services offered
• Incentives
• Pricing
• Patient relationships
• Primary versus specialty care
• Efficiency
• Institutions
• Organizational structure
• Scope and scale of services
• Pricing/discounts
• Efficiency
• Quality improvement
• Consumer information
• Credentialing decisions
• Involving payers in change processes
• Professions
• Quality improvement
• Provider education
• Consumer education
Consumers
• Plan selection
• Provider selection
• Self-help
Each player manages its relationships with the media and with politicians and regulators directly, and each acts indirectly through trade associations and professional groups. You will see illustrations of this throughout the cases included in this text and in subsequent chapters dealing with political feasibility and values. The focus of each intervention changes depending on the nature of the specific market. Lobbying is particularly intense in administered markets such as Medicare and Medicaid, especially when new legislation is under consideration. Lobbying also goes on continuously with the relevant executive branch agencies. Public relations and education are used more assertively when regulators are considering changes, and marketing, especially advertising, is most intense where the market is less regulated. The term education can apply to the many different types of efforts to influence behavior. Government antismoking campaigns can be characterized as education, for example, but the term can also ...
#2 What is voluntary insurance why do employees need itThomas C. Williams
Voluntary insurance provides additional coverage to employees to help pay medical and living expenses not covered by major medical insurance. It is not required but is completely optional for employees to enroll in. Many employees are interested in voluntary insurance because nearly half have less than $1,000 to pay out-of-pocket medical costs, and two-thirds would struggle with the costs of a serious injury or illness. Voluntary insurance can help employees pay deductibles, coinsurance, copays, and bills that continue after an illness or injury when someone cannot work. It benefits both employees and employers by providing financial protection for employees with no direct cost to companies.
Several scam websites have been suspended that were misleading people about accessing their pension funds before age 55. The National Crime Agency has suspended around 18 pension scam websites as well as those using text messages and cold calls. Normally people cannot access pensions before 55 unless seriously ill, but scammers were enticing people to access funds early against the rules. Managing frozen pension plans still requires active management and planning like active plans, reviewing strategies for funding, investments, benefits and finances. Pension plans may be frozen to minimize total obligations, and companies will need plans for covering shortfalls if underfunded and making lump sum payouts.
The document discusses the important responsibilities and duties of being an executor of an estate. It notes that being named executor is an honor that shows the deceased trusted you, but it can also be a difficult and time-consuming role. Some key duties of an executor include arranging for the funeral, notifying agencies, protecting assets, inventorying property, paying debts and taxes, and distributing remaining assets according to the estate documents. The executor has an important fiduciary duty and could be held liable for any mismanaged funds. Researching state laws and consulting advisors can help make the process easier.
Accountants Guide to Workers Compensation & Health BenefitsADP, LLC
Accountants, as trusted advisors, are often called upon to help small business clients figure out their insurance needs. Few accounting firms have a licensed insurance agent available — only 8% of survey respondents were licensed or had a licensed insurance agent in the firm. Review this guide to help you understand how you can help!
Controlling Workers’ Compensation Costs by as Much as 20% - 50%Richard Swartzbaugh
What is Workers’ Compensation?
Who Benefits from Workers’ Compensation Cost Control? Everyone!!!
Worker’s Comp costs can be one of your Company’s greatest “out of control” costs, or, YOU can but in a proven 19-step system to reduce Workers’ Comp costs by as much as 20% - 50%, and utilize critical metrics to address:
- Why workers’ compensation metrics are important
- The formulas for how to calculate 5 critical metrics
- How to leverage these metrics to make an impact at your organization
Following the step-by-step instructions in 19-Step system for the calculation and application of critical metrics will address:
- Workers’ comp viewed as a cost of doing business
- Getting management to understand value of return to work
- Convincing policy holders to embrace a worker recovery program
- Lack of informed and effective employer involvement in WC claims issues
- Stakeholder apathy
- Managers and supervisors not taking seriously their duty to protect workers
Avoiding Workers’ Comp mistakes & loopholes will help drive three major points:
- Drivers of human behavior
- Disincentives to “Return to Work”
- Most common employer mistakes
Finally:
- Evidence-based medicine will create better Workers’ Comp claim outcomes.
- In organized environments, executing successful return to work programs with Unions (and members) is essential.
- As part of a comprehensive workers compensation program, employers should maintain close communications with injured employees to ensure they recover quickly, do not drop out of the workforce and return to work rapidly. Get Well Cards are part of a positive, proactive communication strategy.
Running head EMPLOYEE BENEFITS PROGRAMS .docxtodd271
Running head: EMPLOYEE BENEFITS PROGRAMS 1
EMPLOYEE BENEFITS PROGRAMS 7
Strategic Value of Employee Benefits Programs
Phyllis Spears Jones
Strayer University
HRM599 Capstone
Dr. Gary Wash
June 2, 2020
Strategic Value of Employee Benefits Programs
For a commercial entity to stay competitive in the changing business world, it needs to have a strategic human resource department that acts as a strategic partner to ensure it has the best to gain a competitive advantage. The human resources department, therefore, needs to put itself in a decisive role that helps it to attract and retain highly skilled employees. This is affected by several factors that include types of benefits from the company that accrues to the workers. In other words, employee benefit programs are useful in creating an atmosphere that makes employees more engaged and motivated (Klonoski, 2016). Therefore, for a company to be strategically in terms of competition, the human resources department needs to step away from conventional administrative roles to be a strategic partner who recognizes the value of employee benefit programs and the role they play in generating a significant competitive advantage. This makes it vital to be mindful that an excellent employee benefits package attracts and maintains the skills required to distinguish a company from its competitors. This paper discusses the factors to considers when providing employee benefit programs, compares and contrasts income protection programs, and pays for time not worked programs and other benefits that are necessary for the benefits package.
Factors to Consider Before Providing Employee Benefits Programs
Everyone is aware that rewards are components of an organization's overall incentive package. It is also worth noting that other than the traditional pensions and healthcare plans, employees need a broader choice of benefits that reflect the changing needs and lifestyles (Hagel & White, 2016). It is undeniable that every commercial entity must ensure that it has in place attractive employee compensation packages to attract and retain the talent needed to gain a meaningful competitive advantage. It must, however, be recalled that many essential variables play a crucial role in deciding an economic entity's employee benefits programs. One of these variables is the type of benefits to be provided. Some benefits are too expensive to provide while others are within reach of many business organizations. Therefore, a commercial enterprise must weigh its financial soundness to avoid providing a benefits program that works against its overall objectives.
Another variable to consider is aligning the benefits strategy with the business objectives. The human resource department of an organization must revisit a plan quite regularly to ensure that it meets the changin.
This document provides an overview and summary of the benefits available through an employee group benefits plan sponsored by Automobile Solutions Americas Inc. for their employees. Key details include medical, dental, life insurance, and other coverage. It outlines things like eligibility, how to submit claims, and contacts for additional assistance or questions. The plan is administered by Manulife Financial and provides employees with financial security and support in the event of illnesses, injuries, or other unforeseen circumstances.
This document summarizes the benefits available to Starbucks partners. It describes health coverage including medical, dental and vision insurance. It also mentions a 401k retirement plan with company matching, stock equity programs, tuition reimbursement, paid time off, and various other benefits. The document provides details on eligibility requirements and enrollment processes for various benefits programs.
Open enrollment is the only time of year to get an individual policy without a qualifying life event. Our webinar makes sure you and your employees are prepared.
The document discusses how the federal government is incentivizing small businesses to offer a full portfolio of employee benefits through tax credits and regulations, even if employees pay for the benefits themselves. It provides an overview of the benefits that should be offered (health insurance, retirement, etc.), tax credits available for small businesses that offer health insurance, and how setting up a cafeteria plan can reduce taxes for both employers and employees who purchase voluntary benefits like life insurance.
The ICHRA vs. the QSEHRA: Which is right for your business?PeopleKeep
This document compares the Individual Coverage Health Reimbursement Arrangement (ICHRA) and the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). It discusses eligibility requirements for employers and employees, allowance caps and budgetary guidelines, premium tax credit compatibility, and considerations for which arrangement may be a better fit depending on an employer's needs and budget. The presenter concludes by describing the ICHRA offering available from PeopleKeep starting in September 2019.
The document provides information about changes to employee benefits in 2017 including changes to medical plans and networks. It encourages employees to research their options for urgent care centers versus freestanding emergency rooms to help save on costs. It also provides a reminder about tobacco surcharges and cessation programs to help control premium costs.
Accountable Care Act Employer Compliance.sharedoc.Roberta Winter
This document provides a roadmap for employers to comply with the employer shared responsibility provisions of the Affordable Care Act (ACA). It explains that employers with 50 or more full-time equivalent employees must offer affordable health insurance that provides minimum value to full-time employees and their dependents or pay a penalty. It outlines the process for determining the number of eligible employees and calculating any penalties owed based on two tests: a W-2 wage test or look-back measurement method. The document also provides guidance on the criteria a health plan must meet to avoid penalties, including coverage and benefit thresholds.
The document analyzes data from over 2,000 employers using a defined contribution health benefits solution, finding that on average employers offer $426 per month allowance, while employees utilize $380 on average. Compared to traditional group health insurance, employers using a defined contribution solution save an average of 57% on health benefits costs. The defined contribution model is being adopted most by small employers with 1-49 employees across a variety of industries nationwide.
Maimonides Medical Center in Brooklyn has formed a formal wellness committee with representatives from top management, unions, and rank-and-file employees to expand existing wellness programs and introduce new initiatives in 2014. The hospital's workforce of 6,500 includes members from several unions and non-union management. The goal is to promote employee health to improve patient care and support employee well-being. Existing programs include a walking competition and plans to strengthen smoking cessation and wellness fairs. A grant will fund incentives for participation in selected wellness activities.
Health Reform Policy and Information UpdateTom Daly
The document discusses key provisions of the Affordable Care Act, including the individual mandate, health insurance exchanges, essential health benefits, Medicaid expansion, and the employer mandate. It provides details on eligibility and requirements for the individual mandate, health insurance exchanges, and employer mandate. The document also outlines goals and funding mechanisms for expanding health insurance coverage.
This document provides an overview and update on upcoming health care reform provisions taking effect in 2014. Key points include:
- Beginning in 2014, employer-sponsored plans must limit waiting periods to 90 days and annual out-of-pocket costs. Essential health benefits must also be covered.
- Health insurance exchanges will be available for individuals and small businesses to purchase coverage. Employers with 50+ employees face potential penalties if not offering affordable coverage.
- Annual limits and preexisting condition exclusions will be prohibited. Premium subsidies and an individual mandate also take effect. Small business tax credits are available.
- Wellness program incentives are increasing. Expanded Medicaid coverage was ruled unconstitutional but other provisions remain on track for 2014 implementation
The document summarizes key provisions of the Affordable Care Act that will impact employers in 2013 and beyond. It outlines requirements around counting employees, defining small and large groups, waiting periods, health insurance exchanges, employer tax credits, and affordability standards. It also provides an overview of the Summary of Benefits and Coverage documents employers must provide employees and auto-enrollment provisions for larger companies.
This document discusses employee benefits offered by hospitals, including benefits that are tax-free or taxed at preferential rates, as well as benefits where tax liability is deferred. It provides an example to calculate the total value of benefits for a hypothetical hospital employee. The total value of benefits for this employee, including payroll tax contributions, retirement plan contributions, paid time off, health care, life insurance and long-term disability, is over $21,000, representing approximately 30% of their total compensation.
The document discusses a Wellness Transformation program developed by A Charitable Life ("ACL") that provides supplemental employee benefits while saving employers money on payroll taxes. Through a cafeteria plan, the program reduces employees' taxable income which lowers payroll taxes for both employers and employees. Employers can expect to save an average of $660 per employee annually in FICA taxes. The tax savings are used to provide employees with benefits like life insurance, health-related products, and retirement income with no reduction in take-home pay.
The Insurance Act 2015 comes into effect today, meaning that any insurance or reinsurance contract entered into or varied from today will be governed by the Act.
The effects of the Act are far reaching: changing insurance legislation that has been in place for over a century, and impacting on any transaction governed by the laws of England, Wales, Scotland and Northern Ireland, with a potential to affect organisations across the world.
Chapter 6Alternative Responses and Initiatives of Institutions aJinElias52
Chapter 6
Alternative Responses and Initiatives of Institutions and Professions
Nongovernmental health care organizations provide most medical services and handle the financing of much of the system. For-profit and nonprofit institutions operate side by side, often competing directly for the same business.
This chapter identifies a number of strategies that individuals and organizations adopt in response to governmental programs or initiate on their own to influence health policy. We start with Table 6-1, which outlines the actors and the alternatives for responding to government actions and the marketplace. Where alternatives have been addressed and terms defined in earlier chapters, we try not to repeat that information.
6.1 COMMON RESPONSES
All of the players listed in Table 6-1 employ strategies to influence the marketplace and its regulators. These can be classified into three main types of interventions:
• Public relations
• Marketing and education
• Lobbying
Table 6-1 Responses and Initiatives of Institutions and Professions
Common Approaches
• Public relations
• Marketing and education
• Lobbying
Payers
• Employers
• Eligibility
• Subsidy offered
• Plans offered
• Relationship with insurers/self-insurance
• Worker education and training
• Insurers
• Method of organization
• Method of payment
• Plans offered
• Case management/carve-outs
• Utilization constraints
• Consumer education
Providers
• Professionals
• Organization of practice
• Services offered
• Incentives
• Pricing
• Patient relationships
• Primary versus specialty care
• Efficiency
• Institutions
• Organizational structure
• Scope and scale of services
• Pricing/discounts
• Efficiency
• Quality improvement
• Consumer information
• Credentialing decisions
• Involving payers in change processes
• Professions
• Quality improvement
• Provider education
• Consumer education
Consumers
• Plan selection
• Provider selection
• Self-help
Each player manages its relationships with the media and with politicians and regulators directly, and each acts indirectly through trade associations and professional groups. You will see illustrations of this throughout the cases included in this text and in subsequent chapters dealing with political feasibility and values. The focus of each intervention changes depending on the nature of the specific market. Lobbying is particularly intense in administered markets such as Medicare and Medicaid, especially when new legislation is under consideration. Lobbying also goes on continuously with the relevant executive branch agencies. Public relations and education are used more assertively when regulators are considering changes, and marketing, especially advertising, is most intense where the market is less regulated. The term education can apply to the many different types of efforts to influence behavior. Government antismoking campaigns can be characterized as education, for example, but the term can also ...
#2 What is voluntary insurance why do employees need itThomas C. Williams
Voluntary insurance provides additional coverage to employees to help pay medical and living expenses not covered by major medical insurance. It is not required but is completely optional for employees to enroll in. Many employees are interested in voluntary insurance because nearly half have less than $1,000 to pay out-of-pocket medical costs, and two-thirds would struggle with the costs of a serious injury or illness. Voluntary insurance can help employees pay deductibles, coinsurance, copays, and bills that continue after an illness or injury when someone cannot work. It benefits both employees and employers by providing financial protection for employees with no direct cost to companies.
Several scam websites have been suspended that were misleading people about accessing their pension funds before age 55. The National Crime Agency has suspended around 18 pension scam websites as well as those using text messages and cold calls. Normally people cannot access pensions before 55 unless seriously ill, but scammers were enticing people to access funds early against the rules. Managing frozen pension plans still requires active management and planning like active plans, reviewing strategies for funding, investments, benefits and finances. Pension plans may be frozen to minimize total obligations, and companies will need plans for covering shortfalls if underfunded and making lump sum payouts.
The document discusses the important responsibilities and duties of being an executor of an estate. It notes that being named executor is an honor that shows the deceased trusted you, but it can also be a difficult and time-consuming role. Some key duties of an executor include arranging for the funeral, notifying agencies, protecting assets, inventorying property, paying debts and taxes, and distributing remaining assets according to the estate documents. The executor has an important fiduciary duty and could be held liable for any mismanaged funds. Researching state laws and consulting advisors can help make the process easier.
Accountants Guide to Workers Compensation & Health BenefitsADP, LLC
Accountants, as trusted advisors, are often called upon to help small business clients figure out their insurance needs. Few accounting firms have a licensed insurance agent available — only 8% of survey respondents were licensed or had a licensed insurance agent in the firm. Review this guide to help you understand how you can help!
Controlling Workers’ Compensation Costs by as Much as 20% - 50%Richard Swartzbaugh
What is Workers’ Compensation?
Who Benefits from Workers’ Compensation Cost Control? Everyone!!!
Worker’s Comp costs can be one of your Company’s greatest “out of control” costs, or, YOU can but in a proven 19-step system to reduce Workers’ Comp costs by as much as 20% - 50%, and utilize critical metrics to address:
- Why workers’ compensation metrics are important
- The formulas for how to calculate 5 critical metrics
- How to leverage these metrics to make an impact at your organization
Following the step-by-step instructions in 19-Step system for the calculation and application of critical metrics will address:
- Workers’ comp viewed as a cost of doing business
- Getting management to understand value of return to work
- Convincing policy holders to embrace a worker recovery program
- Lack of informed and effective employer involvement in WC claims issues
- Stakeholder apathy
- Managers and supervisors not taking seriously their duty to protect workers
Avoiding Workers’ Comp mistakes & loopholes will help drive three major points:
- Drivers of human behavior
- Disincentives to “Return to Work”
- Most common employer mistakes
Finally:
- Evidence-based medicine will create better Workers’ Comp claim outcomes.
- In organized environments, executing successful return to work programs with Unions (and members) is essential.
- As part of a comprehensive workers compensation program, employers should maintain close communications with injured employees to ensure they recover quickly, do not drop out of the workforce and return to work rapidly. Get Well Cards are part of a positive, proactive communication strategy.
Running head EMPLOYEE BENEFITS PROGRAMS .docxtodd271
Running head: EMPLOYEE BENEFITS PROGRAMS 1
EMPLOYEE BENEFITS PROGRAMS 7
Strategic Value of Employee Benefits Programs
Phyllis Spears Jones
Strayer University
HRM599 Capstone
Dr. Gary Wash
June 2, 2020
Strategic Value of Employee Benefits Programs
For a commercial entity to stay competitive in the changing business world, it needs to have a strategic human resource department that acts as a strategic partner to ensure it has the best to gain a competitive advantage. The human resources department, therefore, needs to put itself in a decisive role that helps it to attract and retain highly skilled employees. This is affected by several factors that include types of benefits from the company that accrues to the workers. In other words, employee benefit programs are useful in creating an atmosphere that makes employees more engaged and motivated (Klonoski, 2016). Therefore, for a company to be strategically in terms of competition, the human resources department needs to step away from conventional administrative roles to be a strategic partner who recognizes the value of employee benefit programs and the role they play in generating a significant competitive advantage. This makes it vital to be mindful that an excellent employee benefits package attracts and maintains the skills required to distinguish a company from its competitors. This paper discusses the factors to considers when providing employee benefit programs, compares and contrasts income protection programs, and pays for time not worked programs and other benefits that are necessary for the benefits package.
Factors to Consider Before Providing Employee Benefits Programs
Everyone is aware that rewards are components of an organization's overall incentive package. It is also worth noting that other than the traditional pensions and healthcare plans, employees need a broader choice of benefits that reflect the changing needs and lifestyles (Hagel & White, 2016). It is undeniable that every commercial entity must ensure that it has in place attractive employee compensation packages to attract and retain the talent needed to gain a meaningful competitive advantage. It must, however, be recalled that many essential variables play a crucial role in deciding an economic entity's employee benefits programs. One of these variables is the type of benefits to be provided. Some benefits are too expensive to provide while others are within reach of many business organizations. Therefore, a commercial enterprise must weigh its financial soundness to avoid providing a benefits program that works against its overall objectives.
Another variable to consider is aligning the benefits strategy with the business objectives. The human resource department of an organization must revisit a plan quite regularly to ensure that it meets the changin.
This document provides an overview and summary of the benefits available through an employee group benefits plan sponsored by Automobile Solutions Americas Inc. for their employees. Key details include medical, dental, life insurance, and other coverage. It outlines things like eligibility, how to submit claims, and contacts for additional assistance or questions. The plan is administered by Manulife Financial and provides employees with financial security and support in the event of illnesses, injuries, or other unforeseen circumstances.
This document provides an overview and summary of the benefits available through an employee group benefits plan sponsored by Automobile Solutions Americas Inc. for their employees. Key details include medical, dental, life insurance, and other coverage. It outlines things like eligibility, how to submit claims, and contacts for additional assistance or questions. The plan is administered by Manulife Financial and provides employees with financial security and support in the event of illnesses, injuries, or other unforeseen circumstances.
The Affordable Care Act (ACA) has significantly impacted businesses and the healthcare landscape since it was passed in 2010. It has resulted in both positive outcomes like coverage for pre-existing conditions, but also increased costs for many. In response, insurers and benefit consultants are developing new plan options like self-funded plans that can provide better coverage at lower costs. Technology is also integrating benefits administration, payroll and reporting to help businesses navigate ACA compliance and offering requirements.
This document discusses 9 important benefits decisions facing employers in 2016. It covers deciding whether to offer health insurance and pay penalties, managing required benefits reporting, weighing high-deductible health plans, switching to a health insurance exchange, offering voluntary benefits, providing tools to help employees choose benefits, using wellness incentives, planning spouse/partner coverage, and preparing for the upcoming Cadillac tax. The document provides context and considerations for each decision to help employers navigate an evolving benefits landscape.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals to continue their group health plan coverage in certain situations. Specifically, COBRA requires group health plans to offer continuation coverage to covered employees and dependents when coverage would otherwise be lost due to certain specific events...
HBAK should expect major changes from health care reform taking full effect in 2014. This will be the most significant reform since Social Security and will guarantee coverage regardless of health status. Premiums for healthy individuals are estimated to increase 60-90% on average due to community rating and not being able to medically underwrite. HBAK is establishing a health insurance trust that would pool members into a large risk pool to avoid some risk rating provisions and associated premium increases for lower risk members. The trust will be fully insured by Anthem and provide other benefits like dental and vision.
This document summarizes information presented by Matt Graves on navigating health reform, including:
1) An agenda covering the history, timeline, changes and delays of the Affordable Care Act, individual mandate, poverty level guidelines, taxes and fees, and impacts on small and large employer groups.
2) Details on the implementation timeline of the ACA from 2010-2015, including coverage requirements, essential health benefits, marketplace openings.
3) Explanations of the individual mandate penalties, poverty level guidelines used to determine subsidy eligibility, and various taxes imposed by the ACA on health plans and insurers.
4) An overview of the employer mandate and penalties for applicable large employers who do not offer
This document summarizes an employee benefits plan from ECOH Management Inc. It outlines the company's group policy with Manulife Financial to provide medical, dental, life, disability, and other insurance benefits to employees. Key benefits include health and dental coverage, an extended health care plan, life and accidental death insurance, long-term disability coverage, and access to health resources through Manulife Financial.
The document provides an overview of key provisions of the Affordable Care Act (ACA) for employers, including requirements for large employers to offer affordable minimum essential health coverage. It defines terms like full-time employees, dependents, minimum essential coverage, affordability, minimum value, and outlines penalties for noncompliance. It advises employers to assess their status as a large employer based on employee headcount, identify which employees must be offered coverage, ensure coverage meets affordability and minimum value standards, and consider actions needed like amending cafeteria plans to prepare for 2014 requirements.
This document summarizes a presentation on health care in the workplace. It discusses the history of employer-provided health insurance in the US and key provisions of the Affordable Care Act (ACA) including the individual mandate, employer mandate, and potential economic impacts. The presentation covers the major goals and components of the ACA, how it affects individuals, businesses, and the overall economy. It also discusses current policy debates around defining full-time work and other issues related to implementing the ACA.
This document discusses the importance and benefits of voluntary (supplemental) insurance for businesses and employees. It makes three key points:
1) Voluntary insurance helps protect employees from unexpected medical costs and makes them more satisfied. It is an important part of an employer's benefits package for attracting and retaining talent.
2) Many employees are unprepared to manage the rising costs and responsibilities of healthcare. Voluntary insurance can provide financial protection from out-of-pocket costs like deductibles and coinsurance.
3) Voluntary insurance benefits both employers and employees. It boosts employee satisfaction and loyalty while costing employers little to nothing. It also supports healthier employees and lower workers compensation claims.
The document discusses key aspects and requirements of the Patient Protection and Affordable Care Act (PPACA), also known as Obamacare. It summarizes that the PPACA will affect everyone through provisions taking effect in 2014 such as health insurance exchanges, essential health benefits, penalties for individuals without coverage, and penalties for large employers not providing affordable coverage. The document also compares fully insured versus self-funded health plans under the PPACA, noting advantages of self-funding including more flexibility and ability to control costs.
2. 2
Gallagher Nonprofit Practice
Insurance Brokerage | Benefits and Retirement Consulting | ERM | Claims Administration and Advocacy | Investment Advisory and Fiduciary Services
Unemployment Insurance | Alternative Risk Financing | Risk Management | International Mission and Travel | Nonprofit Compensation
Serving more than 24,000 charities around the world.
Nonprofit Employers
Under PPACA
Phil Bushnell, Managing Director,
Nonprofit Practice
phil_bushnell@ajg.com
314.800.2241
This article highlights the most significant
concerns of the Patient Protection and
Affordable Care Act (PPACA) encountered by
nonprofits that provide employer-sponsored
healthcare coverage.
SIGNIFICANT ISSUES INTRODUCED BY PPACA
In general, PPACA creates challenges for nonprofit employers due to their
governing values, infrastructure and their special status under federal law.
Issues may arise as nonprofit employers work towards complying with
the Employer Shared Responsibility mandate because many employees
of these organizations are not highly compensated, and often nonprofit
organizations rely upon volunteers, including volunteer hours from their
own employees. These issues are further complicated if the employer is part
of a controlled group. These topics are examined below.
Nonprofit employers must address potential employer shared
responsibility penalties within a “controlled group.” When determining
employer size for purposes of the Employer Shared Responsibility
mandate, all employees of all members of a controlled group are included
in the determination. Although all nonprofit organizations may not be
“owned,” regulations issued under the internal revenue code specifically
address how the controlled group rules apply to tax-exempt organizations.
Those rules substitute the “right to control” for ownership, which includes
an assessment of who has the right to elect or appoint the tax-exempt
organization’s trustees or directors. Thus, under certain circumstances, even
nonprofit organizations may be part of a controlled group.
Frequently, members within a group participating in a health plan across
a diocese or a convention will have different eligibility requirements and
sometimes even different contributions rates. These issues may make
it difficult for each member of a controlled group to meet the offer of
coverage requirements and may trigger nondiscrimination issues. Care
should be taken by a nonprofit employer controlled group to analyze
whether each member of the group will meet the requirements to offer
coverage.
Careful consideration must be taken when determining employee
classification. Workers in the nonprofit environment are sometimes
incorrectly classified as independent contractors when they are actually
common law employees. Under the PPACA, employers must refer to the
common law standard when determining who is an employee and thus
who may be a full-time employee for purposes of the employer mandate
and IRS reporting. An employer who has inadvertently misclassified
common law employees as independent contractors may need to offer
coverage to workers it had previously considered ineligible for medical
benefits to avoid penalties.
Nonprofit volunteers do not impact an organization’s responsibility
under the employer mandate. Nonprofit organizations often depend
upon the work and dedication of volunteers. As long as those volunteers
meet the definition of a volunteer, they will not impact an organization’s
potential liability under the employer mandate. Specifically, the final
Employer Shared Responsibility regulations state “the hours worked
by a volunteer who does not receive (and is not entitled to receive)
compensation in exchange for the performance of services are not treated
as hours of service for purposes of section 4980H.” True volunteers
are individuals who: (1) work toward objectives related to public
service, religious or humanitarian purposes; (2) do not expect or receive
compensation for their services; and (3) do not displace any employees.
If employee-volunteers do not meet these requirements, they should be
viewed as employees, and their hours of services should be tracked for
purposes of the PPACA (as well as Fair Labor Standards Act purposes).
There should also be mindfulness of nonexempt employees who
“volunteer” after hours. These individuals may actually be working in their
employment capacity and thus should have their hours of service tracked
for purposes of determining if they are full-time employees under the
PPACA.
Nonprofit employers may be eligible for accommodation from the
contraceptive mandate. Non-grandfathered plans must provide coverage
for preventive services without cost sharing. This includes all FDA
approved contraceptives and contraceptive devices for women. Although
religious employers are exempt from this requirement, religious-affiliated
nonprofit employers are not. However, certain nonprofit religious-affiliated
employers (called “eligible organizations” under recent guidance) may
obtain an “accommodation” from the requirement whereby their plans will
not directly pay for, nor provide contraception, for plan years beginning on
or after January 1, 2014.
Nonprofit employers should carefully evaluate the impact of loss of
grandfather status. Upon loss of grandfather status, employer-sponsored
plans must cover FDA-approve clinical trials for plan years beginning on
or after January 1, 2014. Approved clinical trials include phase I, phase II,
phase III or phase IV clinical trials that are conducted in connection with
the prevention, detection or treatment of cancer or other life-threatening
disease or condition and is federally funded through a variety of entities or
departments of the federal government.
This means that non-grandfathered group health plans may not: (1)
deny coverage for participation in an approved clinical trial; (2) deny,
3. 3
Gallagher Nonprofit Practice
Insurance Brokerage | Benefits and Retirement Consulting | ERM | Claims Administration and Advocacy | Investment Advisory and Fiduciary Services
Unemployment Insurance | Alternative Risk Financing | Risk Management | International Mission and Travel | Nonprofit Compensation
Serving more than 24,000 charities around the world.
limit or impose additional conditions on coverage for routine patient
costs for items and services furnished in connection with a clinical trial;
or (3) discriminate against individual because of participation in a trial.
Furthermore, the plan must provide coverage for “routine patient costs.”
Routine patient costs include items and services typically provided under
the plan for a plan participant not enrolled in a clinical trial. However,
the plan is not required to cover items and services that include (a) the
investigational item, device or service itself; (b) items and services not
included in the direct clinical management of the patient, but instead
provided in connection with data collection and analysis; or (c) a service
clearly not consistent with widely accepted and established standards of
care for the particular diagnosis.
Some of the approved clinical trials may clash with a nonprofit employer’s
religious beliefs.
ACTION STEPS
Determine whether each entity within controlled group
will meet the standards to avoid employer shared
responsibility penalties once the employer mandate is
applicable.
Examine whether workers are correctly classified as either
an independent contractor or an employee in order to
avoid potential employer shared responsibility penalties or
errors in IRS reporting.
Establish whether volunteers fall within the exception to
rules for counting hours of service and thus potential
status as a full-time employee under the employer
mandate.
Determine whether the organization will seek an
accommodation from the “contraceptive mandate” if the
organization’s plan has lost grandfathered status.
Explore whether clinical trial coverage would conflict with
a religious-affiliated nonprofit employer’s religious beliefs.
Contact your Gallagher advisor for more information and
assistance.
Saving to Serve More
Matt Dietz, Nonprofit Practice, Analyst
matt_dietz@ajg.com
630.634.4573
Does your nonprofit pay state unemployment
tax? As a 501(c)(3) organization, a nonprofit
may opt out of this tax, potentially saving your
organization thousands of dollars every year.
Since the 1930s, employers have paid state
unemployment taxes. These taxes are used to fund administrative costs and
the costs of unemployment insurance at state unemployment agencies.
This tax money is also to build a fund balance it can draw on when
unemployment spikes.
Nonprofits that qualify as a 501(c)(3) organization are exempt from
federal unemployment taxes but are responsible for reimbursing the state
unemployment pool for any unemployment claims paid out for former
employees’ claims. A nonprofit has three options to choose from to
reimburse the state for paying unemployment claims:
1. Pay state unemployment taxes – This option is usually the most
expensive as these taxes help pay for the unemployment claims of all
employers of the state. The tax rate depends on the loss experience of
your state’s unemployment pool’s loss experience and the size of the
debt load of your state government.
2. Opt out of state unemployment taxes and self-fund reimbursement of
the state unemployment pool – This option has a high risk/reward ratio.
The dollar amount of unemployment claims paid by the state on behalf
of your organization is the amount that will be paid out of pocket (self-
fund) by your nonprofit to reimburse the state for paying these
unemployment claims if your organization decides to opt out of paying
state unemployment taxes.
Examples
• If your organization has no unemployment claims for a calendar, it will
pay $0 in taxes and in unemployment claims.
• If your nonprofit has $75,000 in unemployment claims during a
calendar year, your organization will have not paid any unemployment
taxes but will owe the state unemployment agency $75,000 for the
unemployment claims the state paid on your organization’s behalf.
PROBLEMS WITH THE SELF-FUNDING OPTION
• Unemployment claims can be volatile.
• Is not a clear budget item.
• There is no insurance against excessive claims which creates
unprotected liabilities.
• There is a 12% overpayment rate when staff untrained in state
unemployment insurance law settles your organization’s unemployment
claims as opposed to trained TPAs.
4. 4
Gallagher Nonprofit Practice
Insurance Brokerage | Benefits and Retirement Consulting | ERM | Claims Administration and Advocacy | Investment Advisory and Fiduciary Services
Unemployment Insurance | Alternative Risk Financing | Risk Management | International Mission and Travel | Nonprofit Compensation
Serving more than 24,000 charities around the world.
3. Private Unemployment Insurance – Several insurance carriers such First
Nonprofit/AmTrust, 501(c)(3) Trust/Great American and Valley Forge
have products that will help your organization save at least 20% on your
organization’s unemployment insurance costs by insuring the
reimbursements to the state for paying unemployment to your former
employees.
ADVANTAGES
• Guaranteed savings of at least 15% and up to 75% (Gallagher saved
one nonprofit client $75,000) when compared to paying state
unemployment taxes;
• Four quarterly payments as opposed to one lump sum payment when
paying state unemployment taxes;
• TPA services that provide proven professionals trained in state
unemployment insurance law to settle your organization’s
unemployment claims;
• Rates of private unemployment insurance are based on just your
organization’s unemployment claims experience as opposed to the state
unemployment system rates which are based on the financial health of
your state government and the unemployment experience of all
employers of your state; and
• Private SUI reimbursement insurance is a fixed budget item.
ORGANIZATIONS THAT QUALIFY
• Social service organizations
• Educational service organizations
»» Charter and private schools
»» Colleges and universities
• Charitable foundations
• Healthcare agencies and hospitals
• Mental health and behavioral services
• Religious charities and service organizations
• Governmental sector entities
Most states have a deadline of November 30 to opt out of paying state
unemployment taxes for the following year, except for the following states:
• Illinois, New Hampshire, New York and Wisconsin – December 31
• Oklahoma, Oregon and Utah – January 31
• New Jersey – February 1
• Tennessee – May 31
• California and Minnesota – Nonprofits can opt out on the last day of
any quarter
Getting Started with
Risk Management
Alyson Pepperill, CFIRM ACII, Client Projects
Director, UK Charities
alyson_pepperill@ajg.com
Cell +44 (0)7824.492665
Many nonprofits struggle with how to get
started with risk management. In the United
Kingdom, depending on income level, charities
need to comply with Statement of Recommended Practice (SORP) in
one of its guises. Statements need to be made about key risks and risk
management within the charity.
The IRM Charities SIG took “getting started with risk management” as
our main theme for 2015 and created a very practical, step by step suite of
media that is easily accessible to any charity anywhere in the world.
This includes:
• A three-leaf step-by-step guide that tells you in one page how to do risk
management;
• A supplementary eight-page guide that adds some explanations around
the three-leaf document; and
• A set of five “bite-sized chunk” YouTube-accessed PowerPoint slide
narrations that take you through each step in straightforward language
and examples of what has worked for others.
We also publish quarterly newsletters where hot topics are discussed.
So how do you get started with risk management? We advocate
the ISO31000 approach that works anywhere in the world, for the
organization as a whole, specific projects under review, and for individual
departments and directorates.
This simple process is all about thinking about the context; i.e.,
understanding your objectives against which you want to manage the
uncertainties of the environment you operate in, assessing what risks could
stop you achieving the objectives, how you could reduce the risks, keep
track of changes and most importantly of all how you communicate what
you are doing on risk management to the myriad of stakeholders you have.
MAIN PROBLEMS OR CHALLENGES RAISED BY THE
SECTOR AT A ROUNDTABLE EVENT HOSTED BY
ARTHUR J. GALLAGHER & CO.
• Difficulties in gaining engagement with senior management and board;
• There tended to be a tick box mentality in operation;
• Risk was viewed as a negative – “halting” opportunities style function; and
• Not much linkage between the corporate risk register and the
objectives of the organization.
5. 5
Gallagher Nonprofit Practice
Insurance Brokerage | Benefits and Retirement Consulting | ERM | Claims Administration and Advocacy | Investment Advisory and Fiduciary Services
Unemployment Insurance | Alternative Risk Financing | Risk Management | International Mission and Travel | Nonprofit Compensation
Serving more than 24,000 charities around the world.
These issues emphasize the need to start thinking about and engaging with
the organization about risk when you start your planning and budgeting
cycles. If you can show how the process works and that using it helps with
informed decision making, it will be much easier to win over the directors
and board trustees.
This can then cascade down throughout the organization so those that are
on the front line and “feel” the burden of operational risk in particular
know that those above are engaged, listening and know how to speak up
and be heard. Escalation of how risks change as the world changes, as
well as new risks that come along through new activities, legislation and
regulation is a very important part of the risk management continuous
cycle as displayed in the ISO 31000 model.
Let’s get evangelical and spread the word about how to get started on risk
management and the real benefits that this brings in terms of creating a
sustainable charity sector that is thoughtful and reflective about the risks it
faces.
In the United Kingdom at the moment we are at a tipping point.
Throughout 2015 there have been events that have sadly eroded public
trust in the sector.
The key ones have been a death that our media sought to link to
telemarketing by charities (often using third party private companies)
that focuses on the elderly and vulnerable; this on the back of continuous
abuse allegations by celebrities into which charities have been drawn by
connection; continued press activity slating high paid charity directors; and
the failure of a number of charities in suspicious circumstances.
How better to bounce back than to be able to demonstrate to the world
what your charity is all about, how it will achieve its objectives and how it
is managing the risks that could stop you achieving your objectives?
Risk management is the answer.
Establish context
Risk treatment
Communicationandconsultation
Monitoringandreview
Risk assessment
Risk identification
Risk analysis
Risk evaluation
RISK MANAGEMENT PARADIGM