Improved Employee Benefits Program

A biotechnology company located in the Boston, MA area was using a large international broker when they decided to have Troy Benefits Consulting provide a second opinion on their employee benefits program. We highlighted areas of exposed risk, presented more robust benefits, and made benefits offering compliant, while saving the company several thousands of dollars annually. 

#1. Discovered that the covered monthly earnings or disability maximums only provided adequate financial income replacement to half the employees, which means if the top earners went out on disability, they would not receive the full sixty percent of their salary. IMPROVED: we had the insurer run a top three salary test to justify an increased monthly benefit maximum. Now, even the highest income earners will receive their full sixty percent of salary.  

#2. Discovered their benefit duration was two-year Own Occupation, which means after two years, the insurer would expect employees to find employment, even if meant changing occupations. IMPROVED: we had the insurer provide a more comprehensive definition of disability. Now, all employees have Own Occupation to End of Benefit Duration, insuring that employees have greater protection for the job they are educated and trained to perform. Disability benefits are now in place until Social Security and Normal Retirement take effect.   

#3. Discovered that the hours of eligibility were not congruent with the health insurance plan, which could have caused eligibility and claim issues. For instance, if the employer negotiated a 30-hour workweek for an employee, the employee could receive health benefits. However, given that disability policy, this same employee would not be eligible for disability benefits since the hours were set at thirty-two. IMPROVED: we requested the insurer change the hours of eligibility for disability to line up with the eligibility hours of the health insurance. This simple request will avoid potential claim issue(s).

#4. Discovered they had a fully funded Health Saving Account (HSA) and Flexible Spending Account (FSA), having these two accounts is contrary to IRS rules. IMPROVED: we recommended offering a Limited Flexible Spending Account (FSA) to ensure their employee benefits offerings were in compliance, thus avoiding any potentially non-compliant enrollment errors.   

#5. Discovered the guarantee issue was not high enough to cover most employees adequately, which means most employees would have to complete a health statement to receive the full benefit. IMPROVED: we recommended the insurer run a top three salary test for Life Benefit to justify the increase in guarantee issue amounts and create ease of enrollment for employees.  

#6. Discovered the employer had never been offered a Voluntary Life Benefit, which means the company life insurance was only covering employees. IMPROVED: provided the option for employees to elect Voluntary Life Benefit, which offers, at no additional cost to the company, additional coverage for employees and their spouses and domestic partners.  

#7. Discovered the employer was funding ninety percent of the cost for the health insurance, when the market trend is eighty percent. IMPROVED: we advised changing the funding strategy, which would save the company thousands of dollars annually. We also provided guidance in implementing the plan over a two-year period, as follows.  

BOTTOM LINE: WE IMPROVED THE BENEFITS PROGRAM BY CLOSING AREAS OF EXPOSED RISK, INCREASING BENEFIT COVERAGE, AND SAVING THE COMPANY THOUSANDS OF DOLLARS ANNUALLY.