Broad Reach Benefits

Disability insurance is coverage that provides you with income protection, should you lose time on the job due to an injury or illness. With disability coverage, partial replacement of lost income is paid to you.

For working-age individuals, disability refers to a medical condition that reduces your ability to perform your job duties.

What is long-term disability insurance (LTD)?

LTD is a type of disability insurance coverage that pays employees a set percentage of their regular income after a specified waiting period. For example, if a worker is covered under short-term disability (STD) insurance as well, the LTD insurance would kick in once the STD policy is exhausted, typically after 3 to 6 months.

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Today, many women choose to balance their career with starting a family, so many employers face the issue of pregnancy and maternity leave among their employees. Companies handle maternity leave in different ways, but there are federal mandates for certain aspects of employee pregnancy and leave. Understanding and abiding by these regulations will help your company stay in compliance, avoid discrimination lawsuits and maintain an attractive benefits package for employees. Read the rest of this entry

The ADA Amendments Act of 2008 broadened the definition of disability previously established by ADA and effectively expanded the group of people who would qualify as disabled. The amendments put more pressure on employers to provide reasonable accommodations and created more potential liability for companies that are not in careful observance of the law. This article provides helpful guidance for employers to follow, as well as common mistakes to avoid.

What Employers Can Do

There are steps employers can take to protect themselves from liability and prepare their company in case of a future lawsuit. Read the rest of this entry

On April 11, 2011, a federal district court in Florida held that an employer’s wellness program did not violate the Americans with Disabilities Act (ADA) because the program fell under the ADA’s safe harbor for bona fide benefit plans.

This Broad Reach Benefits, Inc Legislative Brief summarizes the court’s ruling and provides some information on what it means for employers that offer wellness programs. 

ADA Requirements

The ADA prohibits employers from discriminating against employees based on disability. As part of this prohibition, the ADA limits when an employer may obtain medical information from applicants and employees. Once employment begins, as a general rule, an employer may make medical inquiries or require medical examinations only if they are job-related and consistent with business necessity. However, according to the Equal Employment Opportunity Commission (EEOC), an employer may conduct medical examinations and activities that are part of a voluntary wellness program without violating the ADA, as long as medical records are kept confidential. A wellness program is considered voluntary if the employer neither requires employees to participate nor penalizes employees who decline to participate. Informal EEOC guidance suggests that a wellness program may not be considered voluntary if it includes a mandatory health risk assessment (HRA) or a penalty for non-participation.

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Long-term care (LTC) insurance is a benefit that seems ripe for the needs of today’s workforce. Yet, when employers offer employees the chance to purchase long-term care coverage through the workplace, the participation is usually low. (Typically, LTC insurance is offered as a voluntary benefit, for which an employee pays the entire premium.) A study contracted by the U.S. Department of Health and Human Services (HHS) found that, while purchase rates varied considerably among the group of surveyed employers, 40% saw participation rates below 2%. A separate study published by the Employee Benefit Research Institute (EBRI) found employee participation rates for LTC insurance averaged less than 10%. Read the rest of this entry

So your broker negotiated a three year rate guarantee for your life and disability program and was able to lower your premiums.  You don’t have to think about this for the next three years, right?  Better think again.  The market is extremely competitive and what was a great deal last year may look middle of the road today. 

 Many employee benefits brokers simply don’t bother to perform the due diligence and shop the market in a given year because the clients’ rate was either locked in or renewed with no rate change.    Receiving a renewal with no rate increase is great.  But how do you know that the reason you didn’t get a rate increase was because you were over paying based on your better than expected claims history? 

It is essential to not only review the underwriting assumptions the carrier is using but also to go out into the marketplace and acquire competitive quotes.  Your broker can then evaluate the incumbents’ numbers and benchmark them against the competition to ensure you have the best programs in place.  Make sure your employee benefits broker is carefully evaluating your plans each and every year.

The Genetic Information Nondiscrimination Act (GINA) prohibits discrimination in health coverage and employment on the basis of genetic information. Title II addresses discrimination in employment, and prohibits employers from acquiring genetic information about employees, and from using genetic information for hiring, firing or promotion decisions, and for any decisions regarding terms of employment. Since the term “genetic information” is defined broadly, it’s important that employers understand the many situations in which GINA can apply. Final regulations from the Equal Employment Opportunity Commission provide guidance on this. Read the rest of this entry

Most people view life insurance as merely a death benefit for their dependent children or surviving spouse. However, life insurance, specifically a life insurance program called second-to-die or survivorship insurance, can additionally be a very effective asset preservation tool for estates of all sizes.

This type of life insurance covers two individuals (most often spouses) through a single life insurance policy. The premium for survivorship insurance is usually much less expensive than other individual life insurance policy options and the policy respects martial estate tax deductions that defer estate taxes until both insured spouses are deceased. The benefit will not be paid out until both individuals on the policy are deceased.

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Unfortunately, the concern stemming from developing a chronic health issue isn’t limited to your medical needs and health. On the insurance side of things, you’re not just an everyday Jane or Joe purchasing life insurance any longer.

While you might not be considered a standard risk any longer, there are still life insurance programs that can provide you with the coverage you need. One such option is called impaired risk coverage. This is a special form of life insurance designed to provide coverage for individuals that are no longer a standard risk. An impaired risk is life insurance underwriting terminology used to describe an individual that has some factor making him an above average risk to insure, such as an unfavorable health history or current health condition. Most underwriters consider an individual an impaired risk if any of the following statements are answered with a yes:

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Voluntary benefit plans are not a fad that will quietly go away.  They are here to stay.  And more employers are realizing they offer a win-win opportunity for both them and their employees.

Here are four reasons why a growing number of employers are instituting Voluntary Benefits plans for their employees:

1.       Voluntary benefits offer employers a solution for beefing up their benefit package without adding cost to the bottom line.

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