Employee Benefits

Why So Many Americans Are Still Opting out of Health Insurance

Employco USA

Group health insurance expert explains why so many Americans are going without health insurance

The Affordable Care Act was supposed to bring healthcare to millions of Americans who could not afford it, but critics say that the healthcare law was a failure. In fact, many Americans are still choosing not to purchase healthcare, including those who are considered middle-class.

“Surprisingly as it might sound,  it isn’t people with low-wage jobs who can’t afford to buy healthcare in our current market,” says Rob Wilson, President of Employco USA and group health insurance expert. “Due to President Obama’s changes to healthcare law, healthy people and middle-class people suddenly found themselves looking at a steep uptick in prices, and not every family can stand to foot that bill.”

While it is true that the Affordable Care Act helped to lower health insurance costs for people in the lower-income brackets, the result is that other people, such as those in middle-class income brackets, have had to pick up the slack.

“We are looking at big premium increases right now,” says Wilson. “And all it takes is a difference of $10 an hour to find yourself no longer eligible for the federal subsidy to cover healthcare costs.”

Wilson says that the reality is that buying your own individual health plans as a middle class individual or family is becoming too exorbitant, and this won’t change until ACA has been rolled back even further.

“Right now, the health insurance companies have all the power, and we need to put that power back in the hands of the consumer,” says Wilson.

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

30 Days into Trump’s Tax Reform: What’s the Verdict?

Employco USA

Employment trends expert discusses the stats

Tax ReformIt’s a month since President Trump’s tax reform went into effect. So how have these changes impacted the average American worker?

“One thing for sure is that the market loves it,” says Rob Wilson, President of Employco USA and employment trends expert. “We hit the 26,000 mark for the first-time ever, and it’s also the first time we have ever seen such a fast 1,000 point rise.”

Wilson also points out that companies like Walmart, Disney, Starbucks, Apple and Verizon have already rolled out bonuses, raises and other incentives to their employees. However, some lawmakers don’t see the value of these bonuses, such as House Minority Leader Nancy Pelosi who scoffed at these “crumbs.”

“When you look at someone working at Walmart who is making $10 an hour or $20,000 a year, a $1,000 check is far from peanuts. It’s a 5 to 10 percent bonus,” says Wilson, who also points out that Walmart is increasing their wages from $13.85 to $14.50. “These wages will no doubt be matched by other companies like McDonalds among others as they try to stay desirable in the hiring market.”

The tax law is having other important changes on the economy.

“Apple has more offshore earnings than any other U.S. company, but now, as a direct result of President Trump’s tax reform, they are going to pay repatriation tax payments of approximately $38 billion to bring that money back home. They are also going to spend tens of billions on domestic jobs, manufacturing and data centers in the future,” says Wilson.

Also, starting in 2019, individual people will not be penalized for not having insurance. “The employer mandate for those companies with over 50 full-time employees is still in place, however, this removes the burden from the average American who does not want to be forced into buying costly insurance that they don’t need.”

“The bottom line is the tax plan is working,” says Wilson. “Middle America is directly benefiting from the tax reform, and I expect that unemployment and underemployment numbers will continue to decrease.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

How Pres. Trump’s Tax Cuts Led to Wage Hikes for Walmart Employees

Employco USA

Employment trends expert explains why the tax cuts benefited more than just the uber-rich

President Trump’s tax cuts were heavily criticized by Democrats who feared they were merely cuts for the wealthy, but recent decisions by mega-employer Walmart could prove otherwise.

“Changing the corporate tax rate from 35% to 21% might seem like it’s only a benefit for those in the higher-income bracket, but Walmart has just announced that one million employees are going to receive a new hourly rate as a direct result of the tax break,” says Rob Wilson, President of Employco USA and employment trends expert.

Wilson also says that full-time and part-time employees will also receive a one-time cash bonus based on their years of service, noting, “Employees who have been with the company for over 20 years are going to be treated to a $1,000 bonus.”

The average pay increase for hourly workers will go from $13.85 to $14.50, and Wilson says that employees will not be the only ones who benefit from Pres. Trump’s tax plan.

“Customers will likely see lower costs as a result, as well as a higher standard of customer care. Staff will receive better training and see better incentives as a reward for performance,” says Wilson.

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Should You Be Able to Charge Your Company for Your Dress Shoes?

Employco USA

Employment expert discusses the hidden costs of employment 

Presently, teachers are greatly concerned about possibly losing the ability to deduct for the classroom supplies they purchase out of pocket. No matter what side of the aisle you’re on, it raises an important topic that is rarely discussed: The amount of money it costs to keep your current job.

Rob Wilson, employment trends expert and President of Employco USA, says, “There are many costs associated with working that people don’t always consider. Yet, it’s crucial to factor in these expenditures in order to ascertain if your job is worth what you are putting in.”

Here, Wilson explains some of these hidden costs.

“One of the most obvious is the cost of commuting. This includes not just gas money, but also parking, tolls, and fees associated with your car’s upkeep. Driving to and from work each day is hard on your car, especially when it comes to extreme weather and idling in traffic. In fact, sitting in stop-and-go traffic can actually be very harmful to your vehicle.”

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Should Non-Smokers Get More Vacation Days?

Employco USA

Employment solutions expert explains this new trend

SmokeBreakIt is estimated that smokers waste 5 weeks every year with their smoke breaks. So, not only is smoking hazardous to your health, but it can also be incredibly hazardous to your company’s bottom line.

“Wise employers are confronting nicotine-addicted employees through incentivization,” says Rob Wilson, employment solutions expert and President of Employco USA. “For example, Tokyo-based company Piala Inc. is now offering non-smokers extra days off in compensation for all the time they spend working while their other co-workers are out enjoying a smoke.”

The idea is that non-smokers are being offered extra days to make up for the time they don’t spend smoking, and it’s quickly catching on.

“For years, non-smoking employees have complained that they aren’t allowed to take breaks for fresh air, but others can take breaks to inhale toxins,” says Wilson. “Programs like this, as well as employee wellness programs, aren’t just helping to make things more equitable, but they are helping employees to make healthy choices.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Will Your Employer Stop Paying for Your Birth Control?

Employco USA

Group insurance expert predicts how Pres. Trump’s decision will impact average American 

Many people are concerned that their employers are going to opt against paying for birth control now that President Trump has taken steps to reverse the federal mandate requiring companies to do so.

“Headlines across the country have frightened people into thinking that their companies are no longer going to pay for their contraception,” says Rob Wilson, President of Employco USA and group insurance expert. “Thankfully, this is going to be unlikely across the board.  Even before President Obama used the Affordable Care Act to require employers to pay for birth control for employees, 9 out of 10 companies already did so.”

Essentially, the ruling just allows for people to opt against covering contraceptive costs if it challenges their religious beliefs, however, the number of employers who fall in this category will be small, says Wilson. And, he says changes are even less likely when it comes to big firms.

“From a business standpoint, it’s wise to provide affordable contraception options to your workers,” says Wilson. “After all, birth control is much less expensive than the cost of pregnancy and delivering a baby, not to mention family leave. So, the reality is that despite the scary headlines, most employees should expect little to no changes in their contraception costs.”

Nor does he think employers would be wise to use this as a loophole to get out of paying for birth control. “One way or another, all employers pay a price for their workers’ reproductive decisions,” Wilson says. “Financially speaking, contraception is the least expensive option, provided it does not go against your religious beliefs.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Above-Average Rise in Cost of Employee Benefits in 2018

Employco USA

How can employers prepare?

Rob Wilson, President of Employco USA and group insurance expert, says, “Employees say that an employer’s health insurance plan is more important to them than their actual salary, but as these numbers show, offering group insurance can be a losing game for employers. For the last five years, employer costs to insure each employee have risen, but now we are looking at a significant bump: 5  percent or more.”

Wilson points to the fact that Republicans have not yet been able to eradicate the Affordable Care Act, as well as the fact that specialty prescription drug costs are skyrocketing.

“Employers may consider enrolling in high-deductible CDHPs as these plans can help to protect your bottom line. Other cost-saving measures like instituting a surcharge for spouses or employees who smoke can slow cost. Outcome based incentives and wellness programs have also been shown to be useful, as have on-site clinics and prescription purchasing coalitions. Some companies are instilling a policy that requires mandatory generic brand medication,  which can help to reduce costs in a meaningful way.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Here’s How Trumpcare Is Going to Impact the Average American

Employco USA

Group insurance expert reveals what Americans can expect

American Health Care ActPresident Trump’s American Healthcare Act is under ever-increasing scrutiny from politicians and pundits alike. However, misunderstandings and oversights have been rife when it comes to the way many Americans talk about the Republican healthcare bill, says Rob Wilson, group health insurance expert and President of Employco USA.

Here, Wilson identifies key part parts of ‘Trumpcare’ which he believes are important for Americans to become aware of:

  • Elimination of the employer and individual mandates: “It will no longer be a requirement for anyone (such as young, healthy people) to have for health insurance. And, the elimination of penalties means that they will not be penalized if they decide if they would rather spend their hard-earned money elsewhere.”
  • A 30% surcharge to premium cost for lapse of coverage over 60 days: “This will allow insurers to charge people who drop in and out of the market, which will help to keep costs fair and encourage people to keep their health insurance intact.”
  • Repeal tax on over-the-counter medicine: “This will be a nice boon for consumers.”
  • Repeal of tax increase on Health Savings Accounts and increase in maximum contribution for HSA accounts: “This will remove the excess penalty if Americans need to use their HSA for costs other than healthcare bills, and the increase in max contributions will also offer tax benefits for Americans, as these funds are 100 percent tax-deductible.”
  • Repeal of Medical Device Excise Tax: “A $20 billion tax cut, this will help to increase lower costs for manufacturers and breathe life back into states such as Indiana where medical device manufacturing is a multi-billion dollar industry.”
  • Repeal of increased Medicare tax: “Removing the 0.9% Medicare payroll tax on any money Americans earn above $250,000 will be a relief for many Americans.”
  • Repeal of tax on Prescription Medications: “This will amount to a $28 billion tax cut,” he says. “It will lessen the burden on Americans who purchase prescriptions each month, and it will allow drug companies to spend more money on research, production and development of medications.”
  • Repeal of Tanning Tax: “That 10 percent federal tanning tax is going away,” says Wilson.
  • Cadillac tax would not go in to effect until Dec 31, 2025: “The astronomical tax is now being delayed until 2025, which will lift a huge burden on consumers.”

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The Age Penalty in the GOP Health Bill: Will Seniors be Stuck with a Bigger Bill?

Employco USA

Group employment insurance expert weighs in

Many Americans are upset that older people are going to face a ‘age penalty’ under President Trump’s healthcare plan, but not everyone sees the situation as problematic. In fact, some experts think that it won’t be the unfair cost that Americans fear it will be.

Rob Wilson, President of Employco USA and group employment insurance expert says, “For many years, insurers have been able to charge older people higher premiums, as it is understood that they will generally have higher health costs and require more doctor’s visits. This reality has been folded into insurance costs for older people for a significant period of time, so President Trump’s so-called age penalty won’t be changing things too much. The only difference is that Obamacare only allowed insurers to charge older folks three times as much as they what they would charge other people for the same coverage, whereas President Trump’s plan allows for them to charge up to five times as much.”

Still, Wilson doesn’t believe that this means that millennials will be getting a free ride, as he explains that President Trump’s  “continuous health insurance coverage incentive” will hit younger people the hardest.

“Younger people are disproportionately likely to suffer a lapse in insurance coverage,” says Wilson. “And President Trump is asking that people who drop in and out of the insurance market be faced with penalties for doing so. This continuous coverage incentive applies to anyone who opts to go without insurance for longer than 63 days and then desires to resume coverage. The idea is that young people can’t cherry-pick when they want insurance, leaving older folks stuck with a hefty bill.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

The Truth About Health Insurance Penalty Within the American Health Care Act

Employco USA

Group health insurance expert weighs in

American Health Care ActThe American Health Care Act is President Trump’s answer to President Obama’s hotly-debated Affordable Care Act. While many political experts are excited about the new plan, others wonder if the proposed penalty is similar in nature to the dreaded Obamacare penalties, which many complained laid an undue financial hardship on those least able to foot the bill.

Rob Wilson, group health insurance expert and President of Employco USA, says, “President Trump’s plan is exciting for employers for many reasons, including the removal of the taxes, the mandate penalties and the subsidies that were a cornerstone of Obamacare. As for the new proposed penalty, it only applies to anyone who opts to go without insurance for longer than 63 days and then desires to resume coverage.”

The purpose of this penalty, Wilson explains, is to keep people from dropping in out and of the market. However, it also allows for healthy individuals to opt not to buy a healthcare plan if they so desire.

“Part of the problem with Obamacare was that it forced people to buy coverage even when they did not need it or use it,” says Wilson. “Under President Trump’s plan, people can opt to buy insurance only when they actually need it. Even if a person were to take a penalty for not buying insurance and retaining it, it would still amount to less under The American Health Care Act than Affordable Care Act, so Americans still save big.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.