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Medical, Dental, Vision & COBRA
For many companies, benefit plan considerations start with and are often controlled by the cost of health insurance coverage. An evaluation of your current benefit plan is the beginning step, and at no charge to you, we' ll review your current employee benefit package. After talking with you about your business goals, employee compensation strategy and budget, we' ll research options and return with options for your consideration. These recommendations will be tailored for your business and will incorporate any new program that may be an advantage for you and your employees.
Medical Expense Coverage is the basic employee benefit for most employers and the single largest expense item of an employee benefit plan. Compounding the issue of medical insurance is the continually rising costs associated with these plans. In 2004, the cost of medical services continues to increase by a factor of +17% annually. Today, employers are facing medical insurance cost factors that are twice what was being paid in just 1999! We view this as the most essential area of concern for most employers and utilize the latest and most effective plan designs to create cost-effective solutions to this ongoing issue.
Dental Coverage is the second most requested employee benefit by employees. Regular dental checkups and cleaning helps ensure healthy teeth and gums. Preventive dental care is the only preventive medical practice that demonstrates actual long-term cost saving benefits. By making it cost-effective for an individual to seek preventive dental care, better overall health is achieved. And when other dental services are required, the policy allows for the cost of the care to be affordable.
Vision Coverage promotes better vision through regular examinations. Often an eye exam can uncover other medical conditions that should be attended to. Eyeglasses and contact lenses are provided at either discounted prices for those enrolled or the expenses are reimbursed by the plan.
COBRA Administration When an employee leaves your company under certain conditions, he or she may choose to continue to receive medical and dental insurance for a period of time by paying the appropriate premiums. Since COBRA is an employer law that affects most employers with 20+ employees and not an insurance law, the burden of proper COBRA administration is the entire responsibility of the employer. Proper COBRA administration requires detailed communications with former employees and insurance plans, paperwork, the collection of premiums and acting within certain deadlines. Employers with fewer than 20 employees have similar requirements for providing terminated enrollees an option to continue their medical insurance.
Whether you have many employees or fewer than 20, Osborne-Brumsey & Associates, Inc. provides guidance and can assist with this process. Additionally, we provide you access to firms that specialize in performing these functions for you.
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Disability
Disability insurance creates income for an individual when injury or illness prevents them from working for the short term or for a longer period of time. Disability plans provide a percentage of the employee' s salary for the period of disability. Since illness or injury can itself be devastating, when it impacts an employee's ability to earn a paycheck, disability coverage offers you and your employees peace of mind and money at a time of need.
Employers have a number of options for disability coverage. We work to create the best plan for you and your employees.
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Group Life Insurance
The death of an employee affects each person associated with a company. Group Life Insurance that' s part of your benefits package may be the only life insurance the employee has, in some cases. This is a very inexpensive addition to an employee benefit plan.
Group Life Insurance may be structured in many ways. Flat amounts for all employees, tiered benefit levels based upon job position, or to provide a multiple of the employee' s salary. Group Life Insurance can also be offered on a voluntary basis where employees may want to purchase additional coverage for themselves or family members.
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FSA, HRA & HSAs
Legislative initiatives in recent years have created several plans that use pre-tax dollars to fund some types of benefits. Structuring these plans so that you and your employees receive the intended benefit and avoid possible complications is what we excel at.
Flexible Spending Accounts (FSA) allow your employees to have some of their salary set aside on a pre-tax basis and used for medical expenses that are not covered by an insurance plan, or for care of dependents. FSAs are salary reduction programs that escape taxation at all levels, including the employer match of FICA and Medicare. Often used by employers for the employee share of their benefit cost and dependents insurance, FSAs can also include an employee salary reduction plan for non-reimbursed medical expenses allowed by the IRC Sec. 213(d) and dependent day care expenses if both spouses are working. Current FSA rules require that the money allocated to the plan be used within the plan year for qualified expenses or be forfeited. An exception now exists for the employee to allocate funds to an HSA account through an FSA plan and for those dollars to remain in the HSA account and accumulate.
Health Reimbursement Arrangements (HRA) are employer-funded and offer medical expense benefits to your employees. Employers use these plans in combination with high deductible medical policies to provide tax-free reimbursement of qualified medical expenses for enrolled members. HRA plans are fully funded by an employer. Generally, the concept is that by acquiring a higher than normal deductible medical insurance policy, the cost savings generated between the two policy options will provide the dollars for the HRA plan. Employers may dictate the valid expenses allowed for reimbursement by the plan. Employee account balances may be allowed to accrue from year to year but are generally forfeited upon termination of employment. Benefits received by employees are not taxed and are not considered part of their compensation.
Health Savings Accounts (HSA) were created as part of the Medicare Prescription Drug, Modernization and Improvement Act of 2003. HSA programs have the potential to revolutionize medical expense insurance programs in the future.
An HSA account requires that the individual be insured with a specially designed High Deductible Health Plan (HDHP). These plans can be provided by an employer as one of their medical insurance plan options (or their only medical insurance option), or by an individual medical insurance policy. The HSA account contribution is a pre-income tax event (and if done through an FSA plan also escapes FICA and Medicare tax). HSAs may be funded by an employer, an individual or both. Account contribution limits are dictated by the deductible level of the HDHP to specified limits that are subject to annual inflationary adjustments. Additional contribution levels are available to those aged 55+. Funding limits are based upon a calendar year basis. Account balances accrue from year to year and may be invested in any investment approved for an IRA account.
The individual account holder 'owns' the HSA account. This means that the account can be taken with an individual upon termination of employment and retained for future use or moved to another employer' s HSA program. HSA account reimbursements for qualified medical expenses (as defined by IRC Sec. 213(d)) are a non-taxable event. Payments from the HSA account for non-medical expenses are subject to normal income tax rules and a 10% excise tax for individual less than age 65.
To see comparisons between FSA, HRA and HSA plans, please click here.
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Qualified Retirement
Retirement plans are set up by an employer for the welfare of their employees. Plans can either be funded by the employer, the employee or both. Those plans that qualify for favorable income tax treatment are referred to as 'qualified' plans. Examples include, pension plans, SIMPLE IRAs, SEPs, Defined Contribution plans, Profit Sharing and 401(k) plans. We are very familiar with the laws and requirements for qualified retirement plans and the relative merits of each plan. We look to your goals in recommending a particular plan or combination of plans to meet your requirements. You can count on us to help find the best providers and manage the details on your behalf or your employees' behalf.
This information should not be considered as tax or legal advice. You should consult your tax and/ or legal advisor regarding your own situation.
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Voluntary Benefit
Employers are often constrained by budgeting limitations to provide the most comprehensive array of benefits for employees. But employees appreciate choices and the convenience of purchasing benefits they wish to have, under the umbrella of their employer' s benefit plan. Voluntary benefits may include an array of items that are meaningful to your employees. Since they are voluntary, there' s very minimal cost to you, but there' s significant convenience for your employees.
Adding additional benefit options to your existing insurance program is an effective expansion of a company' s benefit package. Choosing to add disability, vision or dental coverage, if not offered as part of your current plan, are examples of voluntary benefits.
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Long Term Care Insurance
The good news is that most of us live longer and healthier lives. People retiring at the normal age of 65 can look forward to an additional life expectancy of another 23 years. The bad news is that many will need assistance.
Few of us give a great deal of thought to the expenses associated with long term care unless we' re facing retirement or have older family members who are unable to care for themselves. Long Term Care Insurance has evolved to a point where it offers care options for people who wish to remain in their homes and for those in assisted living centers or nursing homes. Optimum timing for the purchase of Long Term Care Insurance is well before retirement, when premiums can soar.
Employer sponsored Long Term Care insurance plans are increasingly in demand by employees as another benefit option.
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Fiancial Services
Securian Financial Services, Inc. (Securian) is a registered investment advisor and securities broker-dealer offering a range of financial services and investment instruments, including investment advice, securities and insurance products, to the individuals, businesses and other organizations that we serve.
Jade Osborne and Bobbi Brumsey are Registered Representatives and Investment Advisor Representatives affiliated with Securian Financial Services, Inc.
Securities and investment advisory services are offered through Securian Financial Services, Inc., member of FINRA/SIPC.
Osborne-Brumsey & Associates, Inc. is independently owned and operated.
We provide investment advisory services to individuals, businesses, trusts and estates, charitable organizations and pension and profit sharing plans. Our advisory clients may also be our brokerage services customers, and our brokerage clients are not necessarily advisory clients.
Depending upon your needs and the service you select, we typically emphasize the development of an overall investment strategy that is carefully tailored to your needs and objectives. Our emphasis is on providing the investment advice that fits you, the investor.
We offer the following categories of investment services:
- Financial and business Services - We prepare recommended financial programs for individuals that encompass investments, insurance coverages and retirement benefits. These financial programs are based upon an analysis of your financial circumstances and objectives. Our business services include analysis and strategies for succession strategies, qualified and nonqualified benefits and group benefits.
- Investment Services - We provide asset allocation services directly to you, using investment strategies to allocate your assets through some or all of these options:
- Several mutual funds
- Variable Insurance Products
- Individual securities or combination of individual securities and mutual funds
- One or more independent money managment firms, which then manage portfolios of individual securities held in your account.
- Referral Advisor Services - We assist you in selecting and participating in a wrap fee, mutual fund asset allocation or other investment advisory services program sponsored by another investment management firm.
- Seminar Services - We conduct educational seminars on various investment-related topics. The content of our educational seminars is informational and not intended as a specific investment advice purporting to meet the investment objectives or needs of specific individuals.
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