Archive for July, 2017

Hays Companies of Wisconsin Named One of the Top Workplaces

Hays Companies of Wisconsin has been named as one of Wisconsin’s Top Workplaces by the Milwaukee Journal Sentinel, for the seventh year in a row.

In 2017, there were 1,350 companies invited by the Journal Sentinel to participate in the survey. Employees of the surveyed companies were asked questions revolving around how the employees felt about their job, their view on organizational health, as well as employee engagement. Here are a few of the comments that helped Hays Companies of Wisconsin earn this honor in 2017:

“The people that work here are genuine, sincere and hard-working people. The people make a business and we have the best.”

“I am surrounded by people who want to be here and do their job well.”

“We employ wonderful people who make coming here easy. And if you need help, everyone is there as a resource.”

At Hays Companies, we’ve created a synergy between teams that’s unmatched in the industry. Our employees thrive within the innovative environment that our founding partners helped to cultivate, providing a rich and meaningful workplace that ultimately best benefits our clients.

Hays Companies is one of the fastest growing property and casualty and employee benefits advisers in the country. As a privately held company owned by its managing employees, there are no outside interests or agendas to distract our employees from the business of insurance and risk management. We focus exclusively on meeting the goals established by our clients. Hays Companies is built to be flexible and we collaborate with clients to find business efficient solutions that can be improved upon incrementally over time. Our 700+ team represents a dynamic, entrepreneurial assembly of the best and brightest in the industry.

2018 ACA Safe Harbor Percentages Will Decrease

As the Hays Research and Compliance team plans ahead, we want to inform our clients that there will be safe harbor changes to consider for 2018.

The affordability percentage, under the Affordable Care Act (ACA), for 2018 will be 9.56%, a decrease from the 2017 safe harbor percentage of 9.69 %.

Overview

On May 5, 2017, the Internal Revenue Service (IRS) issued Revenue Procedure 2017-36 to index the contribution percentages in 2018 for purposes of determining the affordability of an employer’s plan under the Affordable Care Act (ACA).

For plan years beginning in 2018, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does not exceed:

  • 9.56 percent of the employee’s household income for the year, for purposes of both the pay or play rules and premium tax credit eligibility; and
  • 8.05 percent of the employee’s household income for the year, for purposes of an individual mandate exemption (adjusted under separate guidance).

Affordability, as used for compliance with the employer mandate under the Affordable Care Act (ACA), relates to the maximum amount an individual must pay for single-only coverage relative to that person’s household income without triggering a penalty for the employer.  Employers may use any one of the “safe harbors” for affordability (W-2, hourly rate-of-pay or the federal poverty line) to set single-only premium contributions that are deemed affordable under the ACA.

For example, an employer can set the amount an employee pays for single-only coverage based upon 9.56% of the federal poverty line and that offer of coverage will be deemed affordable for purposes of compliance with the ACA.

Why are the Safe Harbor Percentages decreasing? 

The 2018 percentage decrease is due to the projected rate of premium growth as it relates to the projected rate of personal income growth.

Issues to Consider for 2018 Renewals:

2018 ACA Maximum Out-Of-Pocket Expenses (non-grandfathered plans)

  • $7,350 for self-only coverage
  • $14,700 for family coverage

2018 HSA & HDHP Design Maximums

  • HDHP minimum annual deductibles:
    • $1,350 for self-only coverage
    • $2,700 for family coverage
  • Out of pocket maximums:
    • $6,650 for self-only coverage
    • $13,300 for family coverage
  • Maximum annual HSA contributions:
    • $3,450 for self-only coverage
    • $6,900 for family coverage
    • Catch-up contribution (Age 55 and older by the end of the tax year) $1,000

Note: DOL, HHS and IRS guidance requires group health plans to embed an individual out-of-pocket maximum in the plan’s family coverage when the family out-of-pocket maximum exceeds the ACA’s out-of-pocket maximum for self-only coverage.

Action Steps

These updated affordability percentages are effective for taxable years and plan years beginning Jan. 1, 2018. This is the first time since these rules were implemented that the affordability contribution percentages have been reduced. As a result, some employers may need to reduce their employee contributions for 2018 to meet the adjusted percentage.

If you have any questions, please contact your local Hays Consultant.

By: Ben Graves, J.D., Director of Research and Compliance at Hays Companies.