July 2023 - VB Voice

Editorial Board

Key Contributors

Editorial Staff

Co-Editors

Trevor Garbers

Trevor@voluntary-advantage com

Heather Garbers

Heather@voluntary-advantage com

For Media and Marketing Requests Contact:

Heather@voluntary-advantage com and Trevor@voluntary-advantage com

Steve Clabaugh CLU, ChFC

Mark Rosenthal PwC

Michael Stachowiak Colonial Life

Jessica DePhillips Mercer

Jack Holder EBIS

Michael Naumann Reliance Matrix

Jennifer Daniel Aflac

Seif Saghri BenefitHub

From the Editor...

This past month we celebrated our first-half birthday with Voluntary Advantage, and we are incredibly proud of the growth and traction our publication is making within our marketplace Most importantly, thank you all for subscribing, sponsoring, and following along on this exciting adventure as we continue to bring you data-driven and industry leading insights within the voluntary benefit marketplace And lastly, thank you to each of our monthly contributing authors as none of this would be possible without your continued input and support. We will continue to focus on our mission statement in making our marketplace a better place for all the stakeholders in protecting generations for years to come.

We were recently interviewed and asked about the sudden growth and take-off of Voluntary Advantage, and it really allowed us to reflect on the past six-months in addition to, looking at the future of not only our publication but our marketplace in general When looking back, we never imagined we would have the following we have today, we could have only hoped to be at this point in year two or year three

We would have never imagined that we would be publishing a featured article around the Metaverse in the benefits industry or, hosting a virtual conference with a national leading engineer to discuss all things ChatGPT As a result, we are constantly retooling our craft to raise our internal bar to stay ahead of the newest trends and discussions happening within our marketplace

As a part of our mission to collaborate as an industry, we are also excited to announce the kick-off of our Giving Campaign, sponsored by Givinga! We talk a lot about employee experience and the engagement of employees through social impact programs with our clients today, and so we are bringing this experience to our followers. Click on the campaign materials and check out the site - and if you feel like it, donate to three great organizations!

As we look ahead, we see so many areas that we will be expanding into this year and next, as we are in the process of finalizing several national endorsements and partnerships that we feel will continue to raise the bar of our everexpanding voluntary benefits marketplace Stay tuned for what we feel will be an incredible second half to 2023 here at Voluntary Advantage

By Trevor Garbers

It's No Accident Voluntary Accident Sales Rebound to Near Pre-Pandemic Levels

Executive Summary

Accident insurance sales are making a strong comeback from their pandemic decline, with more than $1 billion in sales in 2022. Most of these sales are being driven by 10 large carriers.

Accident is a popular product for employers to offer. Nearly 90% of firms with 500 or more employees offer accident coverage, and 60% of even the smallest employers do. But few employers of any size are paying the full cost of this coverage for their employees.

Employees demonstrate strong interest in accident insurance, even if they have to pay for the coverage themselves More than half own coverage on any funding basis, and nearly half (46%) of nonowners are interested in buying accident on a voluntary basis

Brokers also are on board with accident insurance Benefit brokers and voluntary brokers both rank accident in their top five most commonly sold products

Nick Rockwell President

Danielle Lehman Senior Consultant

Eastbridge is the source for research, experience, and advice for companies competing in the voluntary space and for those wishing to enter For over 25 years, they have built the industry’s leading data warehouse and industry-specific consulting practice Today, 20 of the 25 largest voluntary/worksite carriers are both consulting and research clients of Eastbridge

This publication is titled “the Voluntary Benefits Voice” because our goal is to share the voices of Voluntary Benefits leaders across the industry to help us grow both in our own practices by learning from one another, and also as an industry. We try to share insights from a diverse set of leaders and entities across the country in each edition and in that spirit, Michael Naumann, VB RPL at Reliance Matrix, has interviewed several VB leaders about the place for accident insurance in client strategies, recommended improvements, and what sets carriers apart specific to Accident Plans

For this edition, we have interviewed Bradd Westemeyer (BW), Chief Operating Officer for Help Me Choose Benefits; Colin Bradley (CB), President/CEO, Winston Benefits, Inc; Tina Santelli (TS), Vice President, Voluntary Benefits and Enrollment Solutions, Alera Group; Matthew Rednour (MR), Vice President of Ware Group General Agencies; and Rachel McCarter (RM), West Market Sales Leader, Voluntary Benefits, Mercer to learn their thoughts on Accident Insurance today

Michael: So where is the place for accident insurance in client strategies today?

CB - Our belief is that Accident Insurance should play a role in every company’s benefit strategy. With the continuing expansion and adoption of CDHP plans, accident insurance provides an important, costeffective safety net for people to protect themselves from financial hardship caused by an unplanned event

Voices of Voluntary Benefits

By Michael Naumann, Reliance Matrix

CB - Accident insurance is the most commonly selected worksite benefit amongst our client’s employees and its popularity continues to grow each year. For HR teams that are still skeptical about the product, running through a couple of quick claim examples showing sample payouts is an informative and often illuminating process to conduct with your clients

BW - Many client benefit strategies place an Accident Plan in an employer offering when it pairs well with both their core and their voluntary benefits The Accident Plan ideally rounds out or completes a benefit package The often-overlooked strategy question for an employer considers the economic make-up of their employees Does a good percentage of their employees have enough wallet to afford the premium? Do they have employees that may not have enough savings on hand to deal with an accident which requires medical assistance or more? If the answers are “yes” and “we do” their benefit package should include Accident Insurance

RM - Today’s workforce is the most diverse that we’ve ever seen, and employees are more vocal and empowered than they have ever been. To continue to meet the ever-changing needs of the workforce, the need for offering an accident plan is more pivotal than ever. Whether your clients are looking to launch a HDHP for the first time, concerned about out-ofpocket liabilities of a higher deductible, overall financial wellness of employees, or protecting HSA balances, accident insurance plays a big role in all of those strategy discussions

TS - There are myriad ways accident plans make sense in terms of providing robust benefits to employees, while managing costs The key is figuring out which plan makes the most sense, given the organization’s population and objectives That’s where data is key, and why the best way to integrate accident insurance is to tie it to claims. This data allows HR teams to pinpoint potential risks and then, once they have a sense of the likelihood and severity of accidents, determine what level of accident coverage would be best. Once the right plans are in place, it’s important to make them easy to navigate, especially when it comes to filing claims and receiving benefits. The goal is to make sure employees have a positive experience, so they’ll continue to select and value these plans as well as the employer that’s providing them Integrating claims with medical and disability providers can make the employee experience more efficient It also allows the employer to leverage data analytics and identify patterns, trends and risk factors related to accidents With this data in hand, they can then develop targeted prevention strategies that have an impact, refine coverage options and glean valuable insights on risk mitigation This can be achieved through coordinated claims management systems or partnerships between insurers to streamline the claims process, reduce paperwork and ensure seamless reimbursement for covered expenses.

MR - Accident insurance has a place for nearly all employers for many reasons to consider. Employers who have many employees working paycheck to paycheck will find it helpful to supplement their disability and PTO strategies and they will find it a great tool to supplement employees with out-ofpocket medical expenses. It is also a great tool to offer in conjunction with a HDHP with an HSA as most accident plans are HSA compliant Employers who are worried about Monday morning workers compensation claims caused by soft-tissue injuries outside of the workplace will find it a useful tool to avoid numerous small injuries being reported on their workers compensation mod factor, which for larger employers can help lower their mod over time Utilization will primarily be driven by younger active employees, employees with young children playing sports, and older employees who are more susceptible to slips and falls

Michael: What would improve the accident plans available on the market today?

MR - I would love to see more group accident plans that include either return of premium or return of premium upon death benefits For many years carriers have included wellness benefits to help increase persistency and when a consultant chooses a carrier with wellness triggers that align with an employer sponsored wellness or health plan discount requirement, it works quite well However, there are many employers who do not have a sponsored wellness/health plan discount requirement, which then causes the wellness benefits included in an accident plan to often go underutilized The return of premium benefits would be a great substitute to help drive persistency for the carrier and the employer to justify the offering.

CB - Rather than chasing rates to $0, we would rather see carriers offer a series of plan options where the correlation can be drawn between the rate and the quality of benefit. All too often, the marketplace is guilty of presenting a limited set of plan options focused mostly on cost. It’s important that carriers offer plan design flexibility to adjust certain product components (such as AD&D benefits) perhaps when there are similar coverages available through other lines of coverage like AD&D or the client would like to improve certain payout areas This flexibility would drive additional employer adoption because they could customize the plans to better fit with their overall healthcare strategy

TS - While accident plans offer members a lot of benefits, there’s always room for improvement as I see it, in the areas of better coverage for baseline testing and mental health Baseline neurological testing, as part of an annual wellbeing or preventive exam, can assess whether a concussion is present by determining balance and brain function, such as learning, memory, focus and problem solving. This is important because, according to the CDC, 10% of athletes in the U.S. get concussions each year. Recent statistics show that there are between 1.6 and 3.8 million sports- and recreation-related concussions each year. That’s a lot, and many of these concussions are serious In football alone, brain injuries account for as much as 95% of all deaths Being able to compare pre-injury baseline testing results with those post-injury gives clinicians the chance to identify injuries and their effects earlier, and provides the best treatment, as well as recommendations for return to school, play and sports

Today’s workforce is the most diverse that we’ve ever seen, and employees are more vocal and empowered than they have ever been.

Rachel McCarter, Mercer

Accident Plans isn’t necessarily a product enhancement, but instead creating a better engagement experience for employees The communication strategy should educate employees while painting the picture as to why they may need the benefit Guides, videos, testimonials, and benefit recommendation solutions can all help employers engage and nudge employees into fantastic personal benefit combinations. Ultimately the employer can foster their employees with the resources, the environment, and the time to properly research and select their benefits…especially discovering where Voluntary Benefits fit into the puzzle!

Michael: What innovation are you seeing in the marketplace, beyond product design?

RM - One of the best additions that I’ve seen added to accident plans (and the employee experience) from some carriers is predictive claim payments Intuitive claims-payment models anticipate the needs of employees filing an initial claim and pays upfront for additional expected covered costs For example, if an employee with accident insurance files a claim for a documented fracture, the carrier will proactively pay the claim for physician follow-up visits, an X-ray, crutches, and possibly physical therapy A benefit is automatically paid for those expected and covered events upfront at the time of the original claim without requiring the employee to submit more supporting documentation throughout their treatment. This process helps reduce the amount of paperwork required to complete claim payment, improving the value to the employee as well as their experience.

RM - The biggest part of every client conversation that I have regarding supplemental health benefits revolves around the employee experience

Everything from the ease of enrollment, integration with the ben admin platform, claim intake process, benefit verification, gathering of additional information to process the claim, to finally payout; are discussed and explored. Carriers that can tell the best story around this process and offer the best value (not lowest rate) are often winning. If the employee experience isn’t understood and will not be able to be easily communicated to employees, the solution is not going to be a viable long term.

MR - The ease of filing claims is the most important aspect of choosing an accident plan and carrier Does the carrier allow claims to be filed online? Is there an app which someone can take scans or photos of their claims documents and send securely to the carrier? Does the carrier allow for direct deposit via claims forms, website, and app, which can help the employee avoid relying on snail mail to receive a check? Additionally, carriers are becoming more flexible on what they will accept as burden of proof to make claim payment as many providers are making it harder for employees to obtain UB-04 or HCFA 1500 forms

BW - As workforces have gone remote or hybrid the past few years, our industry has experienced an accelerated Insurance Tech leap to next-generation automation, engagement, AI and data sharing capabilities There is a huge opportunity in creating a seamless claims process for Accident Plan participants Reviewing medical codes, it’s easy to identify an injury which may have occurred because of an accident Why not have that trigger a message to a covered individual about a potential claim? Improving benefit enrollment selections and claims utilization experiences for covered benefits, like Accident Insurance, will ultimately prove the value of the product and create demand.

TS - Providing an exceptional customer experience sets a carrier apart This includes offering userfriendly digital platforms, managing claims and making it easy to access customer support. With that said, and from an innovation perspective, I see carriers investing in intuitive mobile apps, selfservice portals and chatbots to enhance convenience and streamline the customer journey, supported by a human element. Carriers leveraging technology and automation to process claims have a competitive advantage Many are using artificial intelligence (AI) and machine learning algorithms to expedite claims assessment and reduce the administrative burden for customers, which drives satisfaction and differentiates the carrier in the market

Providing an exceptional customer experience sets a carrier apart. This includes offering user-friendly digital platforms, managing claims and making it easy to access customer support.

Tina

Michael: What sets a carrier apart when it comes to accident insurance?

There is a huge opportunity in creating a seamless claims process for Accident Plan participants.

Bradd Westemeyer, Help Me Choose Benefits

Santelli, Alera Group

TS - Carriers are also integrating telehealth services into their accident insurance offerings, which makes accessing resources easier for policyholders They can enjoy virtual medical visits, get advice and even get prescriptions from the comfort of wherever they are Talking about inclusivity, telehealth services can increase accessibility and convenience, particularly for minor injuries or non-emergency situations Carriers are going beyond traditional coverage by offering other value-added services, such as access to wellness programs, fitness incentives, preventive care services, health coaching and discounts on health-related products and services all designed to deliver to people a holistic approach to accident prevention, recovery and overall wellbeing

Rachel McCarter, West Market Sales Leader, Voluntary Benefits, Mercer Her current focus is to help current clients and prospects design voluntary benefit programs to drive and deliver value to their organization Rachel is a co-chair of Mercer’s VB DEI counsel, member of Mercer’s Women at Mercer BRG, member of the Denver Belonging Council, and leads Mercer’s Rising Professional Network BRG in Denver.

CB - Coordination of claim continues to be a hot topic of discussion and one that will continue to evolve as technology makes it easier to execute and the carriers have a better understanding, through experience, of how it impacts loss ratios (and therefore rates)

Michael - the future is now, and as you can see, we need to adapt our plans and more importantly, processes, to meet the demands of an ever evolving consumer

Colin Bradley, President/CEO, Winston Benefits, Inc , a nationally recognized leader in the voluntary and benefits administration marketplaces with more than 30 years of excellence and experience helping companies and plan sponsors design, communicate, enroll and administer their employee benefit offerings. In his current role, Colin has overall responsibility for the Company’s business strategy, operations and staff

Matthew Rednour, VBS, GBDS, REBC is Vice President of Ware Group General Agencies located in Eastern Iowa Matt Rednour is Co-Chair, Great River Human Resources Association, & Iowa SHRM State Conference. Matt is responsible for developing supplemental benefit solution strategies for employers and broker/consultant partners throughout Eastern Iowa and Western Illinois

Tina Santelli, CBC, CBDS, Vice President, Voluntary Benefits and Enrollment Solutions, Alera Group She is responsible for leading key top-tier partnerships at Alera Group, strategically developing relationships with preferred carriers. She maintains and strengthens existing carrier relationships, and identifies new strategic partnerships that will benefit Alera Group’s clients across the country

Bradd Westemeyer, Chief Operating Officer for Help Me Choose Benefits Bradd has nearly 23 years of experience in employee benefits, healthcare, benefit administration and retirement solutions. As a Co-founder of HMCB, Bradd is heavily involved with product solution development, marketing their Benefit Recommendation Solution while developing carrier, broker and client relations

The continued expansion of new benefits that address the needs of an ever-changing workforce. How ongoing education and enrollment support tools continue to be critical factors in benefit utilization.

Using data and integrations to simplify the claims experience while maximizing benefits.

VOLUNTARY BENEFITS OPTIMIZATION

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The Popularity and Appeal of Voluntary Accident Insurance: Understanding Buying Profiles

By John Allen, EOI Service Company

Accident insurance has emerged as a highly soughtafter voluntary benefit among employees, with 49% of surveyed employees considering it a must-have benefit and 38% indicating it would be nice to have, according to MetLife's 21st Annual US Employee Benefit Trends Study Employers have taken notice of this trend, especially in firms with 1,000 to 2,499 employees, where accident insurance is most frequently offered, as reported by Eastbridge Consulting Group's Large Case Market Report In this article, we will delve into the reasons behind the popularity of accident insurance and explore different buying profiles among individuals.

Protecting Against the Unforeseen

Accidents can strike at any time, bringing about physical, emotional, and financial hardships for individuals and their families. To mitigate these risks, voluntary accident insurance has become a popular choice, providing an additional layer of financial protection

87%ofemployeesindicatethey musthaveoritwouldbeniceto haveaccidentinsurance.

*MetLife's21stAnnualUS EmployeeBenefitTrends Study

Average Medical Cost for Outpatient Treatment in ER

Bite: Dog - $3,216

Bite: Other, including sting - $3,216

Cut/Pierce - $3,215

Drowning / Submersion - $5,145

Fall - $8,701

Fire / Burn - $4,889

Foreign Body - $6,097

Overexertion - $5,537

Poisoning - $9,085

Struck by /Against - $4,058

Motor Vehicle Occupant - $5,453

Motorcyclist - $9,765

Pedal cyclist (bicycle, etc.) - $7,382

Pedestrian - $9,184

Coverage Options and Benefits

Accident insurance plans offer various levels of coverage, including but not limited to: emergency room and doctor visits, hospitalization benefits, fractures and dislocations, increased benefits for organized sports, and AD&D (Accidental Death and Dismemberment) benefits Unique to healthcare clients, accident plans can also include increased benefits for what is often called "domestic utilization" or "home host" claims. In this case, if care is provided by a client’s own healthcare facility, the employee receives a higher benefit, typically 25% more than if they had sought care outside of the client’s facility.

Demographics and Buying Patterns

Within the book of business of EOI Service Company, accident insurance boasts the highest average participation rate of any voluntary benefit offered, reaching 33%. The appeal of accident insurance extends to different demographic groups, each with distinct motivations and considerations.

Young Adults

Young adults, often on tight budgets, typically opt for High Deductible Health Plans, leaving them financially exposed to significant out-of-pocket expenses in case of unforeseen accidents This demographic group, characterized by their high activity levels, finds accident insurance particularly appealing due to its affordability and benefits that cover fractures, dislocations, emergency room visits, and injuries sustained in organized sports

Married with Children

Married individuals, especially those with children, recognize the increased responsibilities and obligations towards their families With dependents relying on their income, married individuals are more likely to consider voluntary accident insurance as a means of safeguarding against potential income loss resulting from accidents. Moreover, shared financial burdens like mortgages, loans, and other obligations make accident insurance an attractive option to protect their assets and ensure their dependents don't bear additional financial strain.

Age

Age plays a crucial role in the interest and likelihood of purchasing voluntary accident insurance Younger individuals in their prime working years often have higher personal and professional commitments They prioritize protecting their income and financial stability, particularly if they are the primary earners in their households On the other hand, individuals approaching retirement age may view voluntary accident insurance as crucial, given their transition to a fixed income. The potential loss of income due to an accident can significantly impact retirement plans, making accident insurance a vital choice to maintain financial security and independence.

Voluntary accident insurance offers valuable protection for individuals across marital statuses and age groups. Whether married or single, young or nearing retirement, financial security is a universal need Electing accident insurance provides peace of mind, offering income protection and relieving financial burdens associated with accidents While accident insurance is already a popular plan, participation levels can be further increased through appropriate plan designs, competitive price points, and effective communication strategies Employees need to understand the importance of accident insurance alongside their medical plans, and employers should emphasize the reasonable cost and personal need fulfillment aspects when promoting voluntary benefits By prioritizing the unique demographics and preferences of employees, companies can ensure their voluntary accident insurance plans meet the diverse needs of their workforce, ultimately fostering a sense of security and well-being.

Whether married or single, young or nearing retirement, financial security is a universal need.

John is President & Chief Distribution Officer for EOI and is also an owner of the firm. John executes and develops strategic marketing initiatives on a national level, specifically focusing on the enhancement of value-added services that EOI provides for its clients. Since joining EOI in 2009, John has played a key role in the area of strategic marketing, building an outstanding implementation team in the Chicago office and tripling sales in the Midwest region

Federal Government’s Proposed Rule; Potential for Hospital Indemnity Changes

On July 12th, the IRS, Employee Benefits Security Administration and the Department of Health and Human Services issued a joint proposed rule (and request for comment) that has the potential to change the scope of what can be covered in Hospital Indemnity ("HI") plans.

Though supplemental benefits like HI plans are regulated at the state level, each state interprets the federal rules in determining whether or not they possess regulatory authority over these insurance products. The Affordable Care Act ("ACA") and subsequent regulations create the framework states use to determine whether a plan is "excepted" from federal ACA requirements When a state considers a plan to be "excepted" from ACA, they possess authority to regulate the plan and issue an approval for the plan to be marketed in their state If a state deems a plan fall outside of the excepted benefits rules, the state Department of Insurance ("DOI") will not approve the plan for use in their jurisdiction Thus, the federal rules are extremely important to how states regulate supplemental health products like HI

The newly proposed rule has the potential to change the HI landscape significantly We urge readers to read the rule for themselves and share it with interested parties: Proposed Rule for HI Excepted Benefit Plans. As proposed, the rule would draw new parameters around what constitutes an "excepted" HI plan. The purpose of these new parameters is to distinguish HI plans from ACA/Major Medical products and reduce the chances of HI products (or “limited medical” products) being marketed as a "replacement" to comprehensive healthcare coverage

By Hunter Sexton, JD, MHA Sydney Consulting Group

The government seems concerned that without these changes, HI plans are too easily confused with comprehensive coverage leading to consumer dissatisfaction The proposed rule seeks to accomplish the goal of distinguishing HI coverage by severely limiting the methodology of how benefits can be paid. In short, the proposed rule suggests that HI plans can only be considered excepted from ACA requirements where benefits pay "a fixed amount per day of hospitalization or a fixed amount per illness." The proposed rule goes on to explain that benefits that are contingent upon "services or items received" or "level of severity" would not qualify the plan for an exception to ACA requirements The government offers some examples to drive their point home, notably describing how a "blood products" or "office visit" benefit would disqualify the plan for an "excepted benefits" classification even where the benefits were structured to pay "per day" (because the benefits are ultimately contingent upon the service itself being rendered)

If you're in the HI space now, you can appreciate how significantly the proposed rule would change the HI landscape In our estimation, this rule crushes the wellspring of innovation seen from HI carriers in recent years and worse still, the rule threatens to exacerbate the financial liabilities associated with growing costsharing on major medical products.

So, what now? For now, we recommend making your opinion formally known by issuing a comment on the proposed rule. The federal government has asked for comments on the proposed rule and this comment period lasts until September 11th. This is the best opportunity to voice concerns, ask for clarification, or inform the government on how these changes will impact your businesses

The government is required to address unique and substantive comments before issuing a final proposed rule, so commenting may be the best chance for industry to move the needle. After the comment period ends, it becomes harder to predict. The government could issue a final proposed rule with no changes from their current proposal, to be effective sometime in the first quarter of 2024 Alternatively, the final rule could look entirely different than currently proposed or be subjected to contentious litigation for an extended period of time. In any case, we will be following developments closely given the potential for industrywide changes

Please note that this article summarizes a portion of the proposed federal rule For more complete information, or to attend a more indepth Q&A session, please contact Hunter Sexton at HunterSexton@sydneygrpcom and keep a watchful eye for potential follow-up from Voluntary Advantage publications, blogs, and LinkedIn posts

How to submit your opinion:

1 2

Online - Follow the "Submit a comment" instructions

By regular mail - You may mail written comments to the following address:

Centers for Medicare & Medicaid Services, Department of Health and Human Services, Attention: CMS-9904-P, PO Box 8010, Baltimore, MD 21244-8010

Hunter Sexton is a Compliance Consultant with Sydney Consulting Group, LLC Hunter leads a best-in-class Regulatory Compliance Team that works with carriers and regulators to bring supplemental health and life products to market Hunter earned his Masters in Healthcare Administration from the University of South Florida’s College of Public Health and his Juris Doctorate from Stetson University’s College of Law Hunter came to Sydney Consulting after 12 years of industry experience with major medical carriers that included sales, marketing, plan operations, and finance

The Impact of Washington Senate Bill 5319 on the Pet Insurance Industry

By Spot Pet

According to the North American Pet Health Insurance Association (NAPHIA), pet insurance in the United States has seen substantial yearly growth from 2022 to 2023, with a 235% increase in in-force premiums As more people consider their pets as beloved family members, the demand for financial protection against unexpected veterinary expenses has increased. Countrywide, regulation has lagged the expedient growth in the pet insurance market. Thousands of pets were either homed or rehomed during the COVID pandemic. And now, pet owners are becoming more aware of the benefits of pet insurance. They recognize that insurance coverage can help provide financial security and peace of mind in the face of unexpected accidents, illnesses, or chronic conditions

The National Association of Insurance Commissioners (NAIC) drafted the “Pet Insurance Model Act”, which was adopted as model law for the pet insurance industry in the Summer of 2022 Based on the adoption of the “Pet Insurance Model Act” in 2022, the state of Washington quickly followed with their own legislation that primarily adopted the NAIC “Pet Insurance Model Act”, and passed Senate Bill 5319 in April of 2023

It establishes requirements for selling and issuing pet insurance policies, prohibits certain marketing practices, and requires pet insurers and insurance providers to be licensed and trained to sell pet insurance.

Senate Bill 5319 is an example of the evolving pet insurance landscape, which includes clearly defined and standardized definitions, policy administration language, improvements to policy disclosures, preventing misleading marketing practices, and rethinking traditional waiting periods. Updated policy definitions are surfacing across providers’ plans, and they are accompanied by required disclosures that provide clear information on exclusions Coverage due to a preexisting condition, a hereditary disorder, a congenital anomaly or a congenital disorder, or a chronic condition is required to be disclosed if excluded Waiting period restrictions imposed by some plans can be eliminated for accidental injuries And for buyers still determining if pet insurance is the right product for them, a 15-day free look is available where claims are not submitted As the industry continues to grow, new laws are being enacted to ensure transparency, fairness, and consumer protection for pet owners in the marketplace.

More Protection and Less Confusion for Pet Owners

The new pet insurance legislation in Washington contributes to increased transparency in policy terms and conditions Disclosure requirements will help customers better understand their coverage, policy exclusions, deductibles, waiting periods, and reimbursement limits; empowering pet owners to make informed decisions when selecting insurance plans. Standardized definitions ensures fairness and consistency, improving customer satisfaction and trust in the industry. The legislation will help to reduce the number of complaints related to misunderstandings, and positively impact the overall customer experience.

The primary objective of the Washington Senate Bill 5319 and similar legislation is to empower pet owners by providing them with accurate product information and facilitate informed decision-making. Transparency into the marketing efforts across different pet insurance providers ensures fairness and confidence in the products being offered Pet insurance providers that proactively address these compliance requirements demonstrate their commitment to ethical practices and consumer protection

Eliminating waiting periods for accidents and offering waiver options for illnesses require pet insurance providers to be transparent about their claims evaluation process. Efficient and fair claims management systems are crucial to ensure fairness and consistency for every pet owner. As we’ve started seeing the emergence of new pet insurance laws in Maine, Nebraska, Louisiana, Mississippi, and Washington, we could expect to see other states adopting similar frameworks for a regulated pet insurance marketplace. Stricter regulations enhance the overall credibility of the pet insurance industry, foster trust among customers, and instills confidence in the integrity of the policies offered by pet insurance providers

Spot Pet Insurance

New pet insurance laws and regulations play a significant role in shaping the industry, promoting consumer protection, and ensuring ethical practices As one of the leading providers in the pet insurance industry, Spot embraces these regulations that prioritize consumer protection and informed decisionmaking. The flexibility and responsiveness to customer needs can result in better customer experiences as pet owners value the ease and effectiveness of easy-tounderstand coverage options that focus on the wellbeing of both pet and pet parent.

At Spot, we firmly believe that there is no one-size-fitsall approach when it comes to pet insurance Rather, we strive to offer pet parents plans that suit their pets' specific needs and are priced within their budgets Spot plans offer customizable coverage options to help make necessary pet care more affordable and accessible Spot Pet Insurance plan options include accident-only, accident and illness, and preventive care coverage for a little extra cost Pet parents can choose an unlimited annual limit option with no per incident caps, no lifetime caps, and a reimbursement rate of up to 90% for eligible veterinary costs

Having a pet insurance plan can offer benefits including financial protection, peace of mind, and access to quality care for your furry friend, but it’s important to understand how it works. At Spot, we are driven by a shared vision to educate, empower, and engage pet lovers about the benefits of pet insurance to help them pay for covered vet bills so dogs and cats can live healthier, happier lives.

Spot offers discounted plans for your employees and clients, free and easy to setup To learn more, visit https://spotpetins.com/employers

What Your Business Needs to Know About Student Debt

By David Aronson, Peanut Butter

Student loans are a big problem in America; collectively, more than 45 million Americans, or 26% of the U.S. workforce, hold $1.7 trillion in student debt. But student debt also represents a bright opportunity for your company because student loan borrowers are committed to performing for your business Before they ever interviewed at your organization, these individuals selected a college, chose a major, studied, tested, completed group projects, did internships, and earned a degree, all in an effort to start off on the right foot, which might also include landing a job at your company and building a career as a part of your organization Now, your company has a unique opportunity to incentivize workers to join and stay with your firm

In this article, we’ll cover the following topics:

Administrative forbearance of federal student loans and the resumption

of payments in October 2023

The Supreme Court’s June 2023 decision to strike down President Biden’s Debt Relief Plan

The 3 most popular ways employers are addressing student debt, including a tax-free option

In October of this year, student loan borrowers will face a stark new reality.

For the first time in more than 3½ years, they will be required to make a monthly student loan payment, on average, of about $350. How would a $350 hit affect your monthly budget?

For many, it will retake a place among their top 5 monthly expenses:

Rent Food Transportation

Student loan payment

Entertainment

For some, it will cost more to pay down their student debt each month than it will cost them to drive to work.

October’s reality will be stark because the payment amount is significant, and payment resumptions will affect a lot of people; only 10% of all student loans are private loans and thus are not affected It was on March 13th, 2020, when COVID-19 Emergency Relief kicked off a period of administrative forbearance allowing federal student loan borrowers to forego monthly payments and not accrue interest on their loans While some federal loan borrowers continued making payments in an effort to reduce their principal balance, most did not

Debt Forgiveness is Not Coming

On June 30th, 2023, the US Supreme Court ruled President Biden’s Student Debt Relief Plan unlawful in a 6-3 vote Biden’s Student Debt Relief Plan was announced on August 24th, 2022; if enacted, it would have provided $10,000 in debt forgiveness to each federal student loan borrower and up to $20,000 in debt forgiveness to some Across the US, it would have wiped out roughly ⅓ of student debt and reduced the monthly payment for the remaining borrowers from $350 to about $250

After the plan was announced and before it was rejected by the high court, at least 25 million borrowers indicated to the Department of Education that they’d be interested in receiving debt forgiveness under the plan. While future debt forgiveness legislation is possible, it’s neither guaranteed nor coming soon.

So, what does that mean for employers?

In no uncertain terms, it means that student loan borrowers – your employees and your job candidates –want help paying down their debt Based on national statistics provided by the New York Fed, St Louis Fed, and Bureau of Labor Statistics, 26% of the workers at a randomly selected employer are likely to hold student loans For employers in Financial Services, Healthcare, Professional Services, Technology, and Education, it's North of 30% and, for some, as high as 35% of your workforce And for those hiring new graduates, about 70% of your on-campus job applicants will hold student debt.

Employers are Tackling Student Debt and Achieving their Business Goals

The market for talent has never been so hot It remains a candidate’s market, and employers seeking to attract college-educated workers need a way to stand out Companies offering Student Loan Repayment – a defined monthly contribution to employee student loans – are able to hire 13% faster and retain talent 36% longer, and with legislation passed in 2020, employers may even contribute tax-free.

Best of all, Student Loan Repayment plans do not need to be costly in order to be effective Today, the majority of employers (70%) offering Student Loan Repayment contribute just $50/month A portion (20%) contributes $100/month, less (5%) contribute $30/month, and the remainder (5%) contribute another amount With participation rates averaging 25%, the cost of the benefit is modest and predictable From a plan design perspective, employers have largely moved away from holding periods and tiered plans, making the benefit available to all full-time employees from the date of hire. Finally, most employers are choosing to offer their plans tax-free under section 127, thereby avoiding the cost of payroll taxes and the need to withhold income tax.

Many employers haven’t heard workers discuss student debt for the past three years, but that is set to change. October will be a wake-up call for borrowers who need to begin making payments again, and some recent grads will begin making payments for the first time Employers that decide to help will reap the benefits of shorter hiring timelines and longer employee tenure

David Aronson is CEO of Peanut Butter which provides software and service to help employers offer Student Loan Assistance as a benefit Known for speed of implementation, ease of use, and quality of support, Peanut Butter is trusted by employers, large and small Aronson has spoken on student loans at the HR Executives Benefits Leadership Conference, LIMRA’s Worksite Benefits Conference, EBN’s Benefits Forum, Society for Human Resource Management (SHRM) events, and on Capitol Hill. He can also be found in interviews with the Washington Post, Forbes, Inc, and Chicago Sun-Times.

Revolutionizing the Quoting Process & Benefits Administration Experience: Explore Beam's Technology-Focused Approach

In today’s digital world, technology plays a pivotal role in transforming various industries, and employee benefits are no exception For brokers and group administrators, embracing technology is paramount to staying ahead of the curve

Beam Benefits, a digitally-led employee benefits company, stands at the forefront of modernizing the industry. With a laser focus on technology and strategic partnerships, Beam is revolutionizing the quoting process and streamlining benefits administration.

Customized Quotes with the Beam Quoting Tool

At the heart of Beam's technology-driven approach is the Beam Quoting Tool, or BQT This powerful tool allows brokers to obtain quotes that are instant, accurate, and most importantly, customized to the specific needs of a group With its user-friendly interface, brokers can easily navigate the tool's features, leveraging advanced functionalities to their advantage

Shelf rates are often the default among quoting platforms; not the case with the BQT One notable feature is the census uploading capability, ensuring rates are tailored to each client's needs This level of customization sets carriers apart, as brokers can provide their clients with quotes that accurately reflect their workforce demographics and benefit preferences that otherwise would take days of back-and-forth conversations.

Streamlining the Benefits Experience with Advanced Integrations

Our vision is to showcase technological prowess while modernizing the landscape of employee benefits To achieve this objective, we’ve established partnerships that integrate our product offerings directly into the technology platforms that brokers and group admins utilize today. By collaborating with three types of partners – direct digital agencies, quoting platforms, and benefits administration platforms – we solidify our competitive advantage and deliver a seamless experience to our clients.

Direct Digital Agencies: Enhancing Sales and Service

We partner with direct digital agencies, enabling them to self-service promote, market, and sell Beam plans directly on their platforms This streamlined approach allows digital agencies to focus on providing exceptional service to their clients With the assistance of a dedicated support team, direct digital agencies can coordinate real-time quoting, client enrollment, renewals, and ongoing service and benefits administration for their Beam plans This partnership ensures that mutual clients receive the highest level of support while benefiting from Beam’s cutting-edge technology capabilities.

By Elek Pew, Head of Digital Partnerships Beam Benefits

Quoting Platforms: Accuracy and Collaboration

Beam understands that many brokers use quoting aggregator platforms to quote and compare several benefits providers’ products simultaneously Our philosophy is to meet brokers where they are by partnering with these quoting platforms to make accessing real-time, competitive quotes possible in the quoting tools they use most We deliver significant advantages to the quoting experience with these platforms by integrating them directly with Beam’s industry-leading rating API

It’s important to note that when platforms integrate with our API, rates displayed on these platforms are not shelf rates, which are static and may not accurately reflect individual circumstances. Instead, our rates are fully underwritten, using census data when available, and bindable utilizing Beam’s AI-driven pricing methodology. This level of customization ensures that the quotes brokers provide their clients through these platforms are accurate and tailored to their unique requests. It also ensures that risk is calculated appropriately and the group and broker aren’t surprised with hefty rate increases at renewal

Benefits Administration Platforms: Simplifying Enrollment

Our direct integrations and custom API connection with benefits administration platforms bring significant advantages to open enrollment and ongoing employee eligibility maintenance. These platforms offer robust technological solutions that facilitate enrollment processes and provide mechanisms to transmit benefits election data seamlessly to us

Beam integrates with the industry’s leading BenAdmin platforms and offers easy connection methods for ensuring a simple and reliable data transfer Brokers and group admins can count on our ability to receive and process valuable enrollment data from these platforms accurately and quickly, saving time and minimizing the risk of errors

Our tech-focused approach is reshaping the employee benefits landscape Through strategic partnerships and industry-leading integrations, we empower brokers and administrators with real-time solutions,delivering accurate, personalized rates and streamlining benefits administration. As Beam continues to lead the charge in modernizing employee benefits, our commitment to innovation and platform integrations remains unwavering, paving the way for a brighter future in the industry.

Caregiving Solutions: Insights from the Trenches

By Gretchen Barry, Director of Marketing Strategy, BuddyIns

BuddyIns partners with several companies to provide value-added services related to long term care. One such partner is TCARE, an evidenced-based high-tech platform plus human-touch way to support caregivers and prevent their burnout. Recently, I had the opportunity to chat with Lindsey Niemeier (LN), head of strategy at TCARE, to get more insight into the current caregiver crisis in the workplace

Given that up to 25% of the workforce is a family caregiver, what should employers know about caregiver burnout?

LN - I think it’s important for employers to recognize that a larger portion of the workforce is providing care to someone over the age of 18 than they may realize On average between 20-25% of employees are family caregivers, however it typically is not talked about at work as they don’t want to be perceived as being distracted or disengaged, unable to take on more responsibility or a promotion, or potentially needing more flexibility and time away from work. If a group does not have a caregiver-friendly policy or program in place, there is more pressure for employees to manage these responsibilities on their own.

According to the Rosalynn Carter Institute for Caregiving, family caregivers comprise an estimated 22% of the U.S. labor force.

Your data certainly supports other reports I’ve seen. According to the Rosalynn Carter Institute for Caregiving, family caregivers comprise an estimated 22% of the US labor force. So, what are some of the challenges you see with employees who are caregivers for adult family members?

LN - First and foremost, in many instances family caregivers do not necessarily self-identify as a “caregiver,” so they are sometimes balancing a career, family, and everyday responsibilities plus caregiving on their own; without realizing there are programs to help them navigate the complexities of providing care This can lead to a significant amount of time and resources spent trying to identify how to access appropriate, high quality and cost-efficient services at the right place and the right time

Caregivers tend to internalize these pressures, leading to the higher rates of stress and depression, exhaustion, negative impact to their own physical health, and ultimately making tough decisions such as placing a loved one in a long-term care facility. They sometimes feel like they can no longer manage their daily caregiving needs or may even consider leaving their current employer in order to continue to provide care at home.

Why does this impact the workplace?

LN - When you are caring for a loved one, and depending on the care needs of the individual, you don’t just walk into work and leave the caregiving at home When an employer does not have a top-down culture that embraces and supports employees who are managing caregiving responsibilities, then these employees tend to feel isolated This is when we begin to see the disengagement rates climb, concerns about the ability to remain in a full-time role, reduced productivity, and distraction Depending on the industry, this can create other pressures within the team, such as needing to fill missed shifts, reassign work, or maintain high standards of safety which can be negatively impacted by exhaustion and distraction.

I would imagine that has other financial impacts as well. What impact can caregiving have on health insurance premiums?

LN - We have found that as caregiving responsibilities increase, the health status of the family caregiver tends to decline. They may miss their own doctor’s appointments, not follow their own medication adherence, or abandon exercise routines due to lack of time and energy This can lead to increased rates of high blood pressure, higher prevalence of prescriptions for anxiety and depression, and higher rates of obesity and other health concerns

When family caregivers are supported through a program such as TCARE, we are able to provide them with a care plan and targeted activities to support and mitigate these risk factors, so they can regain focus on their own health as they continue to provide care We like to say better care starts with self-care Maintaining the focus on the employee caregiver’s health results in improved health plan claims, risk factors, and ultimately premiums.

Is there advice you can give to an employer who finds out that someone on their staff is experiencing caregiver stress?

LN - When looking at providing caregiver resources, it’s important to communicate that initiative throughout the organization, and foster a culture that supports those with caregiving responsibilities This includes training for managers to understand what to listen for, which may help them identify when someone is caregiving This becomes the perfect opportunity to refer that employee into the family caregiver support program and position it as a commitment the organization has to embrace and support their employees who are caregivers at this critical time

What is the TCARE mission?

LN - Our mission at TCARE is to serve as many caregivers as possible; identifying their needs and providing tailored care plans and advocacy to prevent their burnout We support individuals as they navigate their caregiving journey and empower them to balance caregiving with their professional and personal responsibilities

What is TCARE's process once an employee reaches out?

LN - Employees access our service primarily through our digital platform but can also schedule directly with a specialist for more urgent support Once an employee is engaged, we encourage them to complete our proprietary, evidence-based screener to help us understand their current caregiving status, identify their leading factors to burnout, and provide a caregiver burnout risk score. Those identified at high risk are connected to a certified TCARE Specialist, who becomes their caregiver advocate and establishes an ongoing relationship, developing a personalized care plan for the caregiver to specifically address those leading factors, and reducing their risk for burnout We also leverage our mobile app to support ongoing engagement with all caregivers, provide selfnavigation resources, content, ability to manage caregiver tasks and responsibilities, and access to local services and resources

How does a program like TCARE impact the outcome for employers?

LN - We previously identified several ways caregiving impacts employers, and introducing a family caregiver support program works at addressing these factors and helps to reduce those risks to the employee, as well as the employer. From a policy perspective, many groups have implemented programs to support young, growing families, but many do not have policies or programs in place to support families caring for aging family members; caregiving programs support more inclusive benefits. Additionally, providing a robust and effective program that targets individual needs will support overall health improvement of the caregivers, physically, emotionally, and financially Finally, organizational outcomes such as improved productivity, reduction in time away from work or missed shifts, and improved retention and engagement of those working family caregivers support workforce optimization and financial objectives

How do you see technology helping caregivers in the future?

LN: Technology really enables tailored care delivery and the ability to meet individuals where they are. Caregiving is personal, and everyone’s experience will look different and could change at any moment. Intelligent technology and robust digital tools support improved engagement, predictive analytics to provide appropriate response to changing needs, and provide desired outcomes by reducing the risk for burnout

As more Baby Boomers require long term care, and many of them are without the financial resources to afford robust care options, more employees will face the prospect of caregiving Providing employees with tools to manage these responsibilities will go a long way to helping employers reign in the costs of absenteeism and burnout For additional information regarding caregiver support, please visit TCAREai For information on long term care planning for employers, read our Long Term Care Insurance Guide for Worksite

Prudential and Nayya partner to bring personalized benefits to millions of American employees

NEWARK, NJ, July 17, 2023 -- Prudential Financial, Inc (NYSE: PRU) announced today it has formed a strategic partnership with Nayya, a leading benefits experience platform, to harness artificial intelligence and data science that empowers employees to make better workplace benefits decisions

The new partnership will allow Prudential Group Insurance clients to take advantage of Nayya’s benefits decision support tool during open enrollment, which will help their employees better understand their benefit options and make smart decisions

As healthcare costs and complexity continue to increase in the U.S., many employees are confused about how to select cost-effective benefits that meet their personal needs. According to Nayya’s research, 63% of employees say they don’t understand their benefits, despite the billions of dollars invested in benefits education by companies. Nayya’s platform allows companies to leverage health and financial wellness data to provide real-time, personalized benefits recommendations for their employees, as well as year-round guidance to make the most of their benefits.

“Our goal is to help employers better educate and engage their employees during moments that matter,” said Michael Estep, head of product for Prudential Group Insurance "We are transforming the enrollment experience by providing simple, yet powerful ways to help employers be the rock their employees can rely on when selecting workplace benefits”

Sina Chehrazi, Nayya’s founder and chief executive officer, said the company’s partnership with Prudential represents a key milestone in employee empowerment "Employers are spending more on benefits than ever before and they want to enable their employees to make informed decisions to maximize their health and financial wellness," Chehrazi said "Prudential’s leadership is bringing innovation to the benefits experience with scale and pace It will change the trajectory of our industry and our ecosystem in positive ways”

For more information, please visit prudentialcom/employers/group-insurance or nayyacom

Championship Team Behavior: Part III

Breakdowns, Unsaids and Conditions of Satisfaction

By Steve Clabaugh, CLU, ChFC

Over the past two months we’ve considered how Championship Team Behavior is based on 6 key principles So far, we’ve examined three of the principles including: Working Together as Colleagues; Not Accepting Case Building and Not Tolerating Blaming These are the foundational principles describing the championship team behavior philosophy (working together as colleagues) and stating what we don’t do (case building and blaming).

This month, we consider the action principles that address how we face and deal with the inevitable challenges that come as a result of diverse human beings working together towards a common goal.

In school, it’s completing assignments, which leads to promotion to a higher grade level, which leads to more assignment completion, which leads to another higher grade level, and so on In the insurance business it’s product development, which leads to marketing, which leads to sales, which leads to underwriting and policy issue, which leads to premium collection, which leads to commission and expense payment and reserving, which leads to customer service, which leads to claims payment and … there’s a lot more detail here but I think you get the point.

Here is a real-world story that illustrates all three of these principles and how they work together.

Principal

#4:

We Deal with Breakdowns not Problems.

Principal #5: We say the Unsaids.

Principal #6: We Negotiate Conditions of Satisfaction

In any team endeavor there is a chain of processes and actions that lead to an ultimate conclusion In sports that could be executing plays that lead to scoring points or taking defensive actions that stop the other team from scoring

Our sales force was achieving some excellent results, which impacted all departments and was beginning to strain the various components of our process chain You might think this was a good problem to have - and you would be correct But our Policy Processing Department, in particular, was struggling with the rapid increase in the number of applications they were processing each week (in less than a year the number ultimately doubled)

It didn’t take long before we began to observe a dramatic increase in the number of policies returned by customers due to errors

Misspelled names, incorrect social security numbers, missing policy pages, policies sent to the wrong person, policy jackets sent without a policy included, the wrong policy issued – these were among the most common mistakes that were being made in unacceptably high numbers The Customer Service Department was flooded with complaint calls, agents were frustrated on behalf of their clients and our Sales Department was very upset about the likelihood of their sales momentum being squashed

Department managers acted quickly to correct what they saw as a “problem” by instituting the practice of having each of the processors check each other’s work When this didn’t achieve significant improvement, they assigned a couple of associates to double check the work that had already been checked This resulted in literally doubling the amount of time it took to process applications and still it didn’t gain the quality improvements needed.

The Vice President of Administration and Department Managers were participants in our Relational Leadership Program. We scheduled a “championship team” discussion to determine how to best take on this challenge using the principles of championship team behavior.

First, we determined that this was a “breakdown” and not a “problem” A breakdown occurs when external influences prevent a team from performing its functions in an acceptable manner A problem occurs when a member or members of the team fail to follow the prescribed practices of their assignment or job – this may be due to an issue of behavior, knowledge or competence Problems need to be addressed appropriately and immediately or they tend to expand rapidly

In this case, however, the processors were trying to follow the procedures as they had been taught but were struggling to keep up the quality standards because of the rapidly increasing quantity. It was clearly a breakdown and needed to be dealt with as such even though the processors were totally unfamiliar with championship team behavior.

We decided to introduce them to the principles and apply them to the breakdown. When we gathered them together in the conference room, it was apparent that our processors expected to be criticized and punished for their performance. Imagine their surprise when we briefly shared with them the 6 principles and focused our work together on the breakdowns Once they understood that they weren’t in trouble, we were able to “say the unsaids,” - that is to describe, in straight forward language, the areas of breakdowns When we asked for their participation in “negotiating the conditions of satisfaction”, they were excited to share their ideas One of the team stated that this was the first time they had ever been asked for their thoughts about how to improve their work performance Another team member started crying out of relief that we hadn’t yelled at them or fired them

Together, free from the burden of position, case building or blaming, we were able to come up with several good ideas. The one that had the biggest impact on turning the department into a winner came from a shy individual who seldom ventured to speak out about anything. She suggested that maybe we could stop all the checking and re-checking and ask each processor to think about the person buying the insurance, focusing on being careful to make sure they did it right first and then fast Even though this seemed too simple an idea we agreed to try it and, guess what – it worked We were able to catch up and keep up with new business with the hiring of only a couple additional processors

As we learned from this experience; dealing with breakdowns, saying the unsaids and negotiating conditions of satisfaction, is effective when applied in a championship team behavior organization I’ve witnessed it working at three different companies and with a wide range of associates I highly recommend it to yours

If you have questions or would like to talk about how to implement Championship Team Behavior in your organization please feel free to contact me.

Steve Clabaugh, CLU, ChFC started his career in insurance as a Field Agent, moving on to Sales Manager, General Manager, Regional Manager, Vice President, Senior Vice President, and President/CEO A long time student of professional leadership, Steve created the Relational Leadership program that has been used to train home office, field sales associates, mid-level managers, and senior vice presidents

If you are interested in working with Steve on an individual or organizational basis, contact him at sjcsr@hotmail com