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EMPLOYEE BENEFITS WORLDWIDE |
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When it comes to employee benefits, we make all the pieces fit
Why you should work with AXIS Benefits
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Coming to the U.S.? Know the American difference and the most common employee benefit related start-up errors. There are no shortcuts. Proper planning is essential.
Have employees on international assignment around the world? A Global Benefit Plan provides them with greater health care security and reduces your administrative costs.
Already established in the U.S.? Learn about our services and what it means to have the AXIS Advantage.
Need travel or short-term posting solutions? Understand all the health care protection options available.
View our newsletters for employee benefit insights See the issues surrounding employee benefits in the United States.
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What is the American Difference? America is a big country with a big difference: There is no national health care system for working age adults. As a U.S. employer, you will be expected to provide health care and welfare benefits, even if your start-up operation has one person. How will you identify the appropriate level of benefits? How will you estimate the costs? How will you manage the costs? How will you obtain and implement the benefits your American operation needs to succeed?
The challenge of working within America’s privately run and mostly employer-funded health care, insurance and employee benefits system cluster around three main factors: Access, Cost Control, and Regulatory Compliance. AXIS Benefits will assist your firm in managing these factors, not only for your expatriate employees, but also for your U.S. hires. And not just at start-up when it seems easiest to make an error, but at all stages of the organization’s life cycle
As a new market and business location for your firm, the United States presents as many challenges as it does opportunities. In the U.S., employee benefits go far beyond housing allowances, salaried compensation, and pension plans. And because there is no national health care and welfare system, these employee benefits pose a uniquely American business problem. But with roughly 280 million potential customers (who are proven consumers), it’s one worth solving.
As your benefits partner, AXIS can assist you in identifying the benefit options, estimating the costs, and then obtaining and implementing the benefits that are right for your situation. As your operation becomes more successful and grows in size, we can provide you with strategic management of your employee benefit plans as well as comprehensive benefit administration services. The three main start-up factors:
Access Finding, obtaining, and implementing the appropriate benefit plan is difficult because the number of U.S. employees affects benefit plan availability. For “missionary” type start-ups that send a single employee to America this can be especially challenging. In particular, promising a key expatriate employee a particular benefit in advance of the business start-up may create later problems. Keeping expatriate employees satisfied, secure and focused while in the United States means having the right benefits.A little known fact: If your firm has two employees on a U.S. payroll then it is eligible for group benefits and all the advantages that they provide. And while a common tactic, simply grossing up employee salaries to cover expenses may result in excessive withholding taxes and gaps in benefits. In addition, the design of the benefit plan must take into account what is appropriate, not just what is available. Costs can easily rise when plan design fails to account for cultural, regional, and industry differences. Both Federal and State laws regulate many employee benefits. These regulations are subject to frequent change and are the subject of many employer-employee disputes. For example, if your company has 20 or more U.S. employees then they will have certain rights under Federal law to continue being covered under the company health plan after they leave your employment. As the employer, you have certain administrative procedures you must follow under this regulation. If you have fewer than 20 employees, then their rights may be controlled by State law (each state varies on this). In addition, new Federal privacy rules pertaining to health plans became effective in 2003. Certain aspects of particular plans may also have tax implications.
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Common Employee Benefit Errors at Start-Up |
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Error Possible Outcomes |
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Assuming that all the benefits available in the home country are also available in the host country, and making promises to that effect
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§ Initial benefit package is too generous § Recruitment or motivational issues when promised benefits prove unavailable
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Paying employees more salary (“grossing-up”) so that they can buy benefits on their own instead of providing company-sponsored employee benefits
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§ Employer pays excess withholding taxes § Employer loses tax-deduction for employer sponsored portion of benefits expense § Over time, employees tend to consider gross-ups as part of normal compensation § Salary component of payroll becomes excessive
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Leaving expatriate employees on individual international plans that require the employee to pay first then wait for reimbursement |
§ Reimbursement delays frustrate employees § Time spent on claims issues distract from the work of the international assignment
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Structuring employee agreements in the host country the same way as in the home country (regarding employee benefits only) |
§ Recruitment or motivational issues because employees are unable to qualify for individual products or cannot match expected group benefit levels with individual products § Employer provides advantages not consistent with cultural or industry norms
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Allowing the first U.S. employee to procure and/or dictate the employee benefits package |
§ Selects a plan that is too generous or otherwise inappropriate because of poor knowledge of how to purchase benefits § Selects a plan that impedes recruitement since it is too tailored to the first employee’s specific needs § Lack of coordination and poor implementation because the first employee is typically too busy selling § Mandated coverages overlooked because most U.S. workers do not understand the regulations surrounding employee benefit products
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Not having clear benefit administration processes and communication channels established |
§ Motivation issues since employees do not understand their benefits and feel devalued § Productivity issues since employees spend work-time figuring out what their benefits are and how to use them § Recruitment issues because the benefit plan is perceived as inadequate
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Not working with an integrated Employee Benefits and Insurance Specialist such as AXIS Benefits Consultants
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§ Uncertain regulatory compliance § Poor implementation leading to employee dissatisfaction § Inappropriate benefit plan that impedes recruitment and growth § Rigid administration structure with needless costs
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Global Employee Benefits Click here to see short term posting and travel solutions Establishing an expatriate employee for 3 years is an investment typically exceeding $1.4 million (USD). Health care is an estimated 1 to 2% of the overall cost.1 Don’t let that small percentage jeopardize the remaining 98-99% of your business investment.
When key employees and their families are on international assignment they need:
q Quality doctors and hospitals q Reliable access to emergency care q Dependable medical claims services q Quick medical expense reimbursement
Host country health care issues, medical claims processing difficulty and reimbursement delays frustrate your international employees and keep them from being their most productive. And handling benefit claims, currency conversions, and translation issues are an extraadministrativeexpense to your home office as well.
The solution is a global health care management system specifically designed around international expatriate needs. This is health care coverage that provides access to skilled, quality care at the local level. Some of the program services available worldwide via a toll-free, multilingual 24 hour International Service Center are:
q Help in finding qualified local doctors and hospitals q Coordination with hospitals to gain admission q Verifying benefits and guaranteeing payment In addition, the global networking features of the program are designed to provide your international assignees and their families with security and peace of mind is areas such as:q Emergency local assistance (when requested)q Coordination with evacuation companies q Personalized employee and dependent support
Finally, the administrative expense to your firm of managing international assignees is reduced by a centralized claims processing system with truly global capabilities that include:
q Wire transfers directly to health care providers q A toll-free fax line for accepting claims submission in virtually any language q Currency conversion and rapid reimbursement in a wide variety of currencies q Claim error resolution q Maximum privacy and confidentially
And the program doesn’t stop at medical care. Other global employee benefit plans that are available include:
q Dental q Life & ADD q Long Term Disability q Evacuation/Repatriation Contact AXIS Benefits today to learn how we can help you. Before they go…see us
1Source: National Foreign Trade Council, 2002/CIGNA International |
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Short-term Posting and Travel Solutions If your firm has two or more expatriate employees, you need a Global Benefit Plan These brief descriptions are not intended as complete plan summaries. Some restrictions may apply, and not all products may be available in all countries or for all countries. Please contact us for full details. For companies with executives or sales personnel who travel often for short periods, or who shuttle frequently between two or more countries.
A blanket health care travel policy is available. Simply calculate how many weeks of travel your firm does each year and the level of protection you wish. Coverage is tied to the number of travel weeks for which your firm is purchasing protection, not individual employees.
For example, if your company incurs 26 weeks of travel in a year, then you would purchase medical benefit protection for 26 weeks. It does not matter which employees travel, they will all be covered.
This coverage is also useful for the employee who spends a month in the host country, then returns to the home country for a month, alternating between countries until the project is completed. The plan can be structured so that coverage is in effect only in the host country, not in the home country where the employee has medical benefits.
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For companies with employees traveling outside of their home countries:
q For non-U.S. citizens traveling outside their country of citizenship, medical benefit coverage is available from 15 days up to two (2) years. There is a one-year maximum if travel is within the U.S.
q For U.S. citizens traveling abroad, medical benefit coverage is available from 15 days to two (2) years.
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AXIS Benefits Consultants Newsletter Index
Renewal Outlook Published quarterly. Renewal Outlook examines the factors that drive business health insurance renewal rates. Important reading for executives and senior level employee benefit plan buyers. In 2002, U.S. health care spending was roughly $1.3 trillion, about the same size as the Gross Domestic Product (GDP) of France. Renewal Outlook helps you stay on top of what drives U.S. health care costs.
q 2nd Quarter Renewals: Healthcare “Unbundled” q Health Reimbursement Arrangements (HRAs): Understand the trade-off q Announcing our Coast-to-Coast Service q Developments to Watch q Short Term and Student Medical Insurance: Affordable health insurance for special needs
q 1st Quarter Renewal Trend: The Year in Review q Consumer Driven Health Plans: What, if any, are the pitfalls? q Announcing our Newest Associate q Developments to Watch q Fraudulent Health Plan Alert
q Renewal Trends to Date: Double-Digit 4th quarter q Renewal Rates: The “Big” Myth of Agency Size q Announcing our New Web Site q Developments to Watch q Long Term Care Insurance: Why Now?
Benefit Plans and Trends Published bi-monthly. Benefit Plans and Trends provides practical, day-to-day information to help your company’s employee benefits administrator work more effectively and efficiently. Benefit Plans and Trends keeps you on top of regulatory requirements and administrative pitfalls.
July/Aug 2003: Changes in Prescription Drug Coverage
May/June 2003: Claims Servicing Under the HIPAA Privacy Rule
Mar/April 2003: COBRA, HIPAA and USERRA Call Employers to Duty when Employees Serve
Jan/Feb 2003: COBRA Notifications, Alternatives and HIPAA
Nov. Dec. 2002: CASE STUDY: Flexible Spending Accounts under COBRA
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Why Work With AXIS Benefits Consultants? Click here for a checklist of our services Experienced Since 1995 we have been advising U.S. and foreign-based firms on their employee benefits plans. Whether the firm has 1 or 1,000 employees, our services, process and recommendations provide a solid footing for growth.
Focused We are dedicated to employee benefits issues. We know the regulations. Whether they are COBRA, ERISA, HIPAA, State Continuation, or State Coverage Mandates, we make sure nothing is overlooked. And as the firm grows, AXIS is able to advise on the necessary benefit plan changes to accommodate that growth.
National We are licensed in 18 states plus the District of Columbia, and growing. We can work with clients who are operating, starting up or expanding in one state or many states.
Diverse AXIS works with firms of all sizes, from large established companies to U.S. start-ups of foreign-based firms. We specialize in employer group benefits but also work with key employees on an individual basis. No matter what benefit service or product is required, AXIS has a suitable source.
Consultative Our approach is client-directed. We tailor our services to match the business needs of the company. Established companies, start-up firms and fast growing organizations all have different benefit plan needs. AXIS can work on a fee-for-service basis, sales commission basis or a blend of the two. This flexibility produces the best client outcome.
Integrated AXIS can function in a consultative capacity, an insurance broker capacity, or a benefits administration capacity. We can see issues from all sides, and we can bring the most complete set of knowledge, skills, and abilities to bear on client needs.
Supportive Because employee benefits are complex, we provide superior service that continues long after the benefit plan is up and running, including employee comunication support. When it comes to questions about how to use the plan, file a form, or understand a certain provision, we are always at hand.
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Checklist of our Services Does not include all services. Inquiries invited |
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Brokerage Services for Group Employee Benefit Products |
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Advance renewal notice |
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Insurance carrier market analysis |
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Plan design analysis spreadsheet |
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Coordinate all enrollment materials |
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Conduct employee enrollment meetings |
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Use only A.M. Best rated, financially sound carriers |
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Custom newsletters with analysis |
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Employee communications |
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E-mail and Fax alerts |
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Web site support |
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Claims intervention |
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Billing intervention |
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Regulatory expertise |
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Full Benefits Administration Services |
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Open enrollment coordination |
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Routine claims intervention and advocacy |
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Monthly premium statement auditing |
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Disability claims and waiver-of-premium filings |
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COBRA or State Continuation Administration |
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Notify new and terminated employees of benefits and options |
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Counsel terminated employees on options |
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Distribute continuation forms |
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Communicate status change to carriers |
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Track elections and payments |
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Collect and forward payments |
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Provide continuation status reports |
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Payroll AdministrationAvailable as a separate service through an AXIS preferred service provider |
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Employee deduction authorization documentation (both pre-tax and after tax plans) |
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Employee plan election and status change documentation |
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Division classification and date of hire documentation |
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Payroll deduction administration |
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Payroll withholding coordination for Federal, State and Local Tax |
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Coordination of company Federal and State filing requirements |
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Payroll accounting reports |
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Payroll tax withholding form distribution |
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W-2 processing and distribution |
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Federal, State, and Social Security Administration filing and reporting services |
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On line payroll reports |
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Direct deposit services |
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Flexible Spending Account (FSA) Administration |
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Data entry of: Plan document, eligible employees, employee elections |
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Enrollment: Provide materials, conduct enrollment, counsel employees |
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Claims payment notification and review |
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Quarterly participant contributions, claims and account balances |
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Quarterly employer contributions, payments and account balances |
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Non-discrimination reports and Schedule A information upon request |
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