At Jesse Consulting we believe the employer’s benefit plan should attract and retain top talent to remain globally competitive today and in the future as an Employer of Choice.
Our Clients’ Bottom Line Drives Our Efforts
At Jesse Consulting we use a consultative approach. We provide objective recommendations based on our clients’ goals, independent marketplace research, and government compliance.
We work closely with our clients to make sure their dollars are used wisely. We analyze these major elements:
Employer and Employee Cost Share
We assist employers in calculating the appropriate amount they contribute; this is balanced with the employee’s payroll deduction.
Benefits offered to Employees
We work closely with our clients when designing and updating the components of their plan. This can include combining group and voluntary benefits.
Who Can Enroll
We recommend that employers determine if they are offering a group medical plan or not. If a group plan is offered, then determine if the plan is being offered to employees, to their children, and their spouses/domestic partners.
Fully Insured and Self-funded Plans
The type of plan funding choices range from fully insured to self-funded arrangements. We work closely with the employer’s financial stewards, taking into consideration their risk tolerance to determine their best option.
Health Benefits (Medical, Prescription Drug, Dental and Vision Plans)
We provide marketplace research on the essential elements of an employee benefit plan. Some benefits have been standardized nationally and we focus on the differences which include:
Patient cost. This cost is the employee and their family members’ financial responsibility. This includes deductibles, copays, coinsurance amounts, and paycheck deductions, basically their ultimate financial exposure; and
Provider network. We provide research analyzing the provider network. Employers who have multi-state locations, within the U.S., have a critical need that the provider network serves all their locations properly.
Tax Saving Plans
Employers can reduce their payroll tax liability by implementing one or several tax savings plans. Usually, this saving offsets or exceeds the administrative cost of the plan. Employees can reduce their taxable income and potentially increase their net income. These plans are:
- Health Savings Accounts, HSA;
- Premium Only Plan, POP;
- Flexible Spending Account, FSA;
- Dependent Day Care;
- Transportation (commuter expense reimbursement); and
- Health Reimbursement Account, HRA.
We encourage employers to consider voluntary plans in their benefit strategy. These plans can enhance a benefit program with little or no cost to the employer; and provide employees with choices they can customize for themselves and their families.
Life insurance proceeds provide payment to the decedent’s beneficiaries. A group plan can be employer and/or employee paid.
Disability insurance can help protect the income and assets of an employee.
Short Term Disability
Short term disability is designed to provide people with a weekly income when they are unable to work. The waiting period for benefits is usually between zero and 90 days. The benefit maximum period can be up to two years. A group plan can be employer or employee paid. These plans can be purchased separately or integrated with a long term plan.
The advantage of purchasing a short-term disability plan with a long term plan is the integration of rehabilitation.
Rehabilitation during the short term period can be cost-effective and claimants are usually more receptive and consequently more employable. This can be an important factor to reduce retraining and employee replacement. Also, presenteeism and absenteeism issues may be mitigated.
Long Term Disability
Long term disability insurance provides people with a monthly income when they are unable to work. The waiting period can be from 30 days to 24 months. The maximum benefit period can be a specific time period or age. A group plan can be employer or employee paid.
Employer and/or Employee Paid Premiums and Taxable Benefits
The IRS has guidelines which allow employers to offer short and long term disability plans and also gives employees the choice of having a taxable or a tax-free benefit.
Disability premiums that are paid by an employer for the benefit of an employee are a tax deductible expense.
Generally, if the employee pays the premium on a post-tax basis then their benefits are not subject to taxes. We review these IRS requirements and plan designs with employers. These plans are generally known as “gross-up” plans.
Long Term Care Insurance
Long term care policies cover a wide range of medical, personal, and social services. These services are usually required when someone has lengthy illness or a disability.
Medicare does not cover ongoing non-medical services. Medicaid provides coverage. However, it can be challenging to meet the qualifications to become eligible for Medicaid.
The type of care may include assistance with activities of daily living such as dressing, bathing, eating, and toileting. The providers of care and location can be the home, nursing home, adult day care, and a group living facility.
Long Term Care Insurance as an Employee Benefit
The employer can offer long term care to a specific class of employees such as executives and the premium may be excluded from the employee’s income. Also, generally, the employer-paid premium may be deducted as a business expense which varies by business entity type.
Squeezed Middle Generation
The growing importance of long term care insurance is not only for that recipient but also for their family members. Many times an elderly parent may need time and care that an adult child cannot provide. The adult children may be working full-time and also funding higher education for their children, paying a mortgage, and other expenses. Thus, a long term care insurance plan may be a good option for adult children and their families.
Your Benefits are Our Business. ™