Summer is no different, and it’s just around the corner….so are you ready for the competition?

Most people know they will be wearing less in the summer and so they have to compete to look their best.  Sometimes it’s competing to look better than others, but most importantly it’s a competition with themselves….just to look our personal best.  This is a healthy thing when done right.  Even Olympic athletes aren’t at their peak 365 days a year.  So, if we set goals for ourselves to hit our peak at times of the year such as summer or getting ready for a beach vacation, we can give ourselves the incentive we need to workout more and eat better.

What about kids?  Is summer competitive for them?  It is becoming more so with every year.  Smart parents realize that no matter what age their kids are, they should be preparing.  One day they will want to get into college, get scholarships, and get jobs.  All of these things are absolute competition.  So, smart parents take advantage of the opportunities presented each summer.  This is a chance to get additional cross training for sports and just to stay healthy (and not become another statistic on childhood obesity).  It’s also an opportunity for kids to engage in activities that provide more personal development.  There are great things that kids can take part in that build their focus and other skills that will lead to success in school when they go back at summer’s end.  Are you taking advantage of these opportunities for your children?  Each summer you do not, someone else does….and that means they will be better prepared for winning the competition.

Kids need to have fun–that’s kind of their job, and they won’t have a second chance at a great childhood.  Along with having fun, they can do something worthwhile.  That’s where parents can help pick out great opportunities to really have it all.  Kids rely on their parents to make the best decisions for them.  Some parents are more worried about being their children’s friend than a parent.  This turns to disaster because then the parents allow the children to quit anything that doesn’t fit their mood for the day.  And allowing them to quit just leads to a habit for the future.

So, look for activities for kids to do on their own, and also don’t forget to make time to do things as a family!  More and more today, kids growing up with so much technology and media overload are lacking in socialization and communication skills.  Extra family time can help overcome these challenges.  This isn’t about being their friend like I mentioned, this is good old fashioned “family time”.  So take the video games away and spend time together because like their childhood—we might not get a second chance to spend this time together.

Summer Time is Competition Time!  Compete to Win!

For more information on health, safety and fitness, contact Jeff Dousharm at Jeff@paradigmimpactgroup.com

by Jeff Dousharm, President
Tiger Rock
402-570-1166

“The new windows that I had installed by Papillion Windows and Siding are AMAZING! The windows I originally had were very, very old and were letting all the cold air inside.  Now I have no cold air coming inside, the temperature is controlled and I can’t hear anything going on outside.  My installer was extremely professional, did everything that I asked, and I wasn’t left with a mess to clean up afterwards.” -Stephanie G.

“The first reason that we went with Papillion Windows and Siding is because we wanted to work with a local business.  When Michelle’s father came to our house and pitched the windows to us, we liked the product and they were cheaper to have installed by their company than going to a big box store and buying them to install ourselves.  That DEFINITELY sold us!  A few years later we needed new entry doors, and knew exactly who to call.  We like our windows because they are easy to clean and we can’t hear any of the noise outside.  Our entry doors are really nice, very secure and we especially like the built-in blinds.  We are very pleased with their products, and everyone we have had contact with from their company are very professional, helpful and easy to work with.  We are very happy that we chose Papillion Windows and Siding, and our experience with their quality products and service has made it easy to refer the company to others.” –John and Brenda W.

“I chose Papillion Windows and Siding to re-do all of the windows and siding on my home in Council Bluffs, IA because they had the best products, I felt, that were on the market.  The color Michelle chose for our new siding fit perfect with our existing brickwork and roofing.  I can’t tell you enough how awesome my new windows are!  They are so easy to clean, and I like the way they open and close.  The BEST thing about my experience was working with my installer and Michelle.  Their attention to detail is impressive–they made sure everything was trimmed out on my house perfectly, instructed me on how to best utilize and care for the new windows and siding, and the finished product looks absolutely beautiful.  I can’t even tell you how many compliments I have had, both from family and neighbors, and I love their company and recommend them highly!” –Sharon R.

Papillion Windows and Siding offers lifetime warranties on a majority of their products and services for your complete peace of mind. Contact them today for service throughout Omaha and Papillion by calling (402) 597-1777 or visit the website “contact us” page at www.papillionwindowsandsiding.com for your FREE consultation.

Michelle Christensen, Owner
Papillion Windows & Siding
402-597-1777

Contribution Tax Benefits
If your employer offers a payroll deduction through a Section 125 Cafeteria Plan, you can make contributions to your HSA on a pre-tax basis. The deduction is removed from your paycheck prior to taxes being applied and deposited into your HSA. Ask your employer if they facilitate pre-tax deductions.

Contributions can also be made post-tax as an “above-the-line” deduction. This means you can reduce your taxable income by the amount you contribute to your HSA.

Tax Deduction for Contributions
Health Savings Account (HSA) contributions made by an eligible individual (or by a family member of the eligible individual) are an “above-the-line” tax deduction in determining the gross income of the eligible individual.

HSA contributions are deductible whether or not the individual is itemizing deductions. You cannot deduct HSA contributions as medical expense deductions. For purposes of recognizing your HSA deposits and distributions on your personal tax return, the IRS requires you to complete Form 8889.

Earnings Tax Benefits
The interest on HSA funds grows on a tax-deferred basis. And, unlike most savings accounts, interest earned on an HSA is not considered taxable income when the funds are used for eligible medical expenses.

When do you Pay Taxes on your HSA?
The only time you may pay taxes or penalties on your HSA funds is if you make a non-eligible purchase, or if you contribute more than the yearly maximum contribution limit. However, both misuses can be corrected free of tax penalties by April 15th of the following calendar year.

HSA Contribution Limits
The maximum you may contribute to a Health Savings Account (HSA) is:

Catch-up Contributions
Individuals age 55 and over can make catch-up contributions.

Contribution Frequency
How often you make HSA contributions is completely up to you. You can make an annual lump sum contribution, you can make regular monthly deposits, or you can make multiple deposits in no particular order. Your bank or HSA administrator will always be pleased to accept your money.

A common mistaken impression is that HSA contributions must coincide with your health insurance premium payments (typically monthly, bi-monthly or quarterly). Not so.

HSA Contribution Deadlines
If you want to claim the HSA contribution tax deduction for a particular year, your HSA contributions must be made on or before that year’s tax filing date. For example, 2012 HSA contributions must be made on or before the April 2013 filing deadline.

HSA Contributions must be Cash
Health Savings Account (HSA) contributions must be in cash. Contributions cannot be made in stock or in other property.

Please note: these guidelines should not be the only source you use to make a decision and should not be considered legal or tax advice as that can only be provided by an attorney, CPA or other professional tax advisor.

If you would like to discuss potential health care insurance coverage and requirements it would be best to secure an appointment with one of the health insurance producers in UNICO Midlands who can provide additional help in the area of health care reform. For more information, give us a call today at 402-434-7200.

by Kipp Kissinger, 402-434-7200
UNICO Group, Inc. | www.UnicoGroup.com

What about your family?  Are growing health care costs robbing you of your retirement savings or even a family vacation?

If so, welcome to the club.  Many companies and families are struggling today thanks to health care costs spiraling out of control, and the horizon does not look promising.  Small business owners and families have continued to struggle with one new change after another.  Costs go up. Benefits go down.  And stress goes through the roof.  This isn’t how the American dream is supposed to play out.

Over the last few years I’ve hired several fantastic new people, and they do great things for my companies. As a consequence, I face the challenge of health care costs that are many times what they used to be for new hires.  Frankly, I’d rather have more of this money to increase their pay or to simply have it back in the budget to run my companies.  I hear the same things from the clients and entrepreneurs in my coaching program, mainly that they could do so much more for their families or for their businesses if they weren’t being crushed by regulations and health care costs that are out of control.

If you, your family or your company are struggling with these same things, then I’m not telling you anything new.  It sucks.  So we could continue blaming the government or key people who have been instrumental in these changes and decisions.  In fact, I thought about including more on that in this month’s column, but I would need about twenty more pages.  And at the end of the day, it wouldn’t help us or our families or our businesses.  The only thing that will help us is taking the right actions to DO something about it.

Smart companies are realizing that they can use wellness programs to help lower health care costs.  REALLY smart companies are learning ways to build more engagement (even required participation) in wellness programs by making it part of their company’s culture.  These companies know that helping their staff with health and fitness improves the companies’ bottom line AND helps care for the people that are the backbone of the company itself.

Smart families are working out more and discussing health and fitness as a family.   REALLY smart families are finding activities they can share together so it’s more than just working out.  It’s a family thing.

There are many great choices for companies and families to take back some of the control over health care and related costs.  Tiger Rock Academy is one example that has been helping Lincoln and Omaha businesses and families do this for over 18 years now with Corporate Wellness Programs and programs for family members of all ages. Other fitness facilities and programs have followed suit and now offer many great options for businesses and families.  The private sector has done a fantastic job of overcoming a lot of governmental roadblocks handed to business.   So whenever we feel like complaining about why we are in the position we are—skip it! Instead do something about it!  Help your company, your staff and your families!

by Jeff Dousharm
President, Tiger Rock
402-570-1166

For more information on Health, Fitness and Safety, email Jeff Dousharm at Jeff@paradigmimpactgroup.com

To avoid overcharges and unpleasant surprises, here are 12 dos and don’ts:

Dos

1. Be prepared. The auditor will need all the necessary financial records to conduct the audit and may ask for a tour of the facility.

2. Breakdown payroll records. While the types of breakdown may vary depending upon state statutes and industry, some common beneficial breakdowns are:

a. Job classification. Job classifications are a key factor in Workers’ Comp premiums. With the exception of construction and agriculture, the overall business operation, not individual duties, is assigned a governing classification.

b. Overtime. In most states, overtime pay can be reduced to straight time when determining the Workers’ Comp premium.

c. Severance pay. Employers need to show the auditor exactly what was paid in severance pay.

d. Executive officers. Covered executive officers, individual owners, and partners are subject to minimum and maximum payroll amounts and are required to have a class code assignment based on their duties.

e. Multi state exposures. State laws and carrier contracts can limit or sometimes prohibit Workers’ Compensation payments in a state outside of where the policy is written.

3. Understand separation of payroll opportunities and requirements. If it is allowed, divide an employee’s payroll over different class codes and keep a detailed record of the specific hours worked for each Workers’ Comp class code.  Without adequate records, payroll separation will not be applied.

4. Know what is excluded remuneration. To minimize your exposure, know the rules and exceptions and provide evidence or verification of the exclusion.

5. Be sure certificates of insurance are current and complete. Be sure the insurance matches the requirements of the contract and has not expired or been cancelled.

6. Assign a friendly and knowledgeable person to work with the auditor. A representative of the company familiar with both the operations of the company and the financial records should be present at every audit.

Don’ts

1. Be difficult or combative. Treat the auditor as a welcome guest.

2. Let the auditor leave without getting a copy of the audit work papers. This will allow you to review the audit with your agent and confirm that there are no errors BEFORE the audit is processed and billed (fixing it “after the fact” is more difficult).

3. Volunteer more information than asked. Only answer the questions asked and do not lead the auditor down a path that may prove detrimental.

4. Allow the auditor unescorted access to the premises. If the auditor wants to tour the facilities, be sure that the company representative is present.

5. Hire uninsured contractors. Auditors specifically look for uninsured subcontract labor when conducting the Workers’ Compensation audits.

6. Delay in disputing the bill. While it is best to try to resolve issues before the audit is processed and billed, it’s not always possible or there may be discrepancies between the worksheets and the audit. Be aware of time limits.

The best approach is to proactively develop a defensible position by preparing thoroughly and building an overcharge-proof audit package before the auditor arrives. As Certified WorkComp Advisors, we are trained to prepare employers for audits, spot errors and get them corrected.

For more information, give us a call today at 402-434-7200.

by Tom Champoux
UNICO Group, Inc.
402-434-7200 | www.UnicoGroup.com

In my experience there are three main reasons that Wellness Programs fail.

The first and main reason Workplace Wellness Programs fail is a lack of implementation. Companies begin by putting someone in charge of coordinating the program.  These people bring in outside vendors or resources to be used, set up great programs and maybe even some fantastic access for their people to fitness programs…and then the program sits on the shelf.   Management staff is busy being busy so they cannot give it the support it needs for implementation and the program grows no legs of its own.   This is why many Workplace Wellness Programs end up being “Shelfplace” Wellness Programs—the programs that sit like books on the shelf collecting dust and as a result they ultimately fail.

The second reason Workplace Wellness Programs fail is a lack of communication.  Even for those who do implement, most do not understand how much communication it takes to build awareness.  Employees have no idea that a new program was put in place and even if a couple of emails go out and a poster goes up it is pretty much 100% guaranteed they still don’t know.  Communication to build awareness is about using as many channels as possible as frequently as possible to make people aware of what is going on.  This is a huge undertaking and must be strategically designed from the beginning if there is any hope for success.   When we just wing it or leave it to chance, the program fails.

Finally, Workplace Wellness Programs fail because of a lack of engagement.  People eat bad foods, live in constant stress and frustration, do not exercise, smoke, and engage in all kinds of behaviors and vices that are bad for them.  Some people are ignorant enough to think that these same people don’t “know” these things are bad for them.  They know!  They just don’t care enough to make a change!  They don’t see what’s in it for them to change and so they don’t.  So if the company wants employee buy-in or engagement, they have to overcome this and give them reasons to change.  As with all things, people take action for one of two reasons: 1) hope for reward or 2) fear of punishment or pain.  Sometimes these reasons are also known as the carrot and the stick.  Most companies do not have a rewards system that is motivating to employees and conversely their penalties are either poorly enforced or, worse yet, may sometimes even be illegal the way they are done.   With health care changes coming, there will be even more opportunities for companies to change their structure of rewards and penalties, but one of the big components that may still be overlooked is FUN.  When companies give people motivating reasons to do something and then make it FUN as part of the culture of the program (especially when leaders at the top are visibly participating) then there is a chance of success.  When companies just do it to say they have a Wellness Program then it’s doomed to failure.

So here’s the bottom line:  when you do a Wellness Program (or re-do one) avoid these three landmines and give your program a fighting chance to do what it has the potential to do for the people and families who are counting on you.

by Jeff Dousharm
President, Tiger Rock
402-570-1166

For more information on Health, Fitness and Safety, email Jeff Dousharm at Jeff@paradigmimpactgroup.com

2. What is the large employer 50 FTE formula? – Any employer with 50+ full-time equivalents (FTE) is considered a large employer. This includes all part time employees and the hours they work each month. It is calculated adding the total hours worked in a specific month by all part-time employees and dividing by 120 to arrive at the FTE number. Add that back to your full-time employee count to arrive at total FTE employees to see if the employer goes over the 50 person level.
Note: Seasonal employees are not counted if working less than 120 days a year

3.  What should employers do to avoid penalties? – Beginning in 2014, large employers will pay penalties if they fail to offer health coverage to full-time employees or offer coverage that is either unaffordable or does not provide minimum value. These penalties can be significant.
Coverage is affordable for a particular employee if that person’s required contribution does not exceed 9.5% of the employee’s household income for that taxable year. Because an employer likely will not know an employee’s household income, the IRS has created a safe harbor providing that an employer will not be subject to a penalty if the coverage offered was affordable based on the employee’s Form W-2 wages as reported in Box 1.

4. How much are the penalties? – Two types of penalties will be imposed starting in 2014:
No Coverage Penalty: Applies if an applicable large employer fails to offer each of its full-time employees (and their dependents) group health coverage and at least one full-time employee receives premium assistance to purchase health coverage through a health insurance exchange.

Amount: $166.67 per month for each full-time employee ($2,000 per year), excluding the first 30 such employees from the calculation.

So an employer of 75 FTE employees could pay a penalty of (75-30=45 times $2000 or $90,000).

Unaffordable Coverage Penalty: Applies if the health coverage offered by an applicable large employer is unaffordable or does not provide minimum value and at least one full-time employee receives premium assistance to purchase health coverage through a health insurance exchange.

Amount: $250 per month for each full-time employee receiving premium assistance ($3,000 per year), but not to exceed the amount of the no coverage penalty calculated for that month.
For further discussion on ACA and how it might affect employers, please call UNICO Midlands 402-434-7257.

by Mick Sibbel
UNICO Group, Inc.
www.unicogroup.com
402-434-7205

Mick Sibbel provides Group Benefit and Insurance Plans via UNICO Midlands which is jointly owned by UNICO Group Inc and Midlands Financial Benefits. These guidelines should not be the only source a business owner uses to make a decision and should not be considered legal or tax advice.

Comorbidities double Workers’ Comp claims costs

The number of Workers’ Comp claimants suffering from comorbidities has nearly tripled in recent years and related claim costs are about twice the medical costs of comparable claims, according to a recent study by the National Council on Compensation Insurance, Inc. (NCCI). And while most claims are medical only, about 50% of those with a comorbidity diagnosis are lost-time, While disturbing, the results are not surprising given the percentage of employees who are obese or have chronic health conditions such as diabetes, hypertension, asthma, and so on. The report also had troubling news about claims and drug abuse – from 2000 to 2009 the share of claims with a drug abuse diagnosis, including alcohol and tobacco, more than quadrupled.

The NCCI research brief titled “Comorbidities in Workers Compensation,” also reviews a wide range of issues such as the role of gender, the association of comorbidities with injury types, and the increase in medical services necessary when specific comorbidities accompany a claim.

Lessons learned:
There is a link between employee health and profitability.A healthier workforce lowers direct costs such as insurance premiums and Workers’ Comp, reduces absenteeism and improved productivity. Wellness initiatives, workplace changes that promote physical activity, good nutrition and smoking cessation are key. While employers do not have access to specific employee health records because of federal privacy laws, proactive employers are tapping aggregate data from insurance companies to better understand the chronic conditions that exist in their workforce, how often employees use expensive emergency services and other cost drivers. With this information they can understand their spending and figure out what health plan design is best for the work force.

Employers implementing wellness initiatives, workplace changes that promote physical activity, good nutrition and smoking cessation have seen a positive ROI. With major changes in the employer health insurance market set to take place in 2014, as part of the Patient Protection and Affordable Care Act (PPACA), the U.S. Department of Health and Human Services on Nov. 20 announced a series of proposed rules under the Patient Protection and Affordable Care Act governing employee wellness programs and essential health benefits for certain employers.

by Shaun Ideus. Unico Group, Inc. 402.434.7205. www.UnicoGroup.com

February usually brings to mind two things:  Valentine’s Day and “Black History Month”.  I suppose we could go over goal setting as it relates to romance and how I married out of my league, but a more interesting idea would be to challenge you to do some additional reading.  When we educate ourselves and learn from history and other great leaders, that we can apply lessons to our own life, draw inspiration and gain greater understanding of our others.  The first leader people relate to “Black History Month” is Martin Luther King Jr. who is worthy of many articles.  However, I’d like to point out a few people who may be slightly lesser known, but you will find as incredible leaders who fought through their own setbacks and took the responsibility to accomplish their goals by making changes and not excuses.   Though “Black History Month” originated from a selection of the second week of February marking the birthdays of Frederick Douglas and Abraham Lincoln, there were other very significant people in history connected to February.  Look up the following leaders and find out more about them and their connection to the month of February:

Dr. Carter G. Woodson, W.E.B. DuBois, Hiram R. Revels

Then, for extra credit, look up events from Feb. 3, 1870, Woolworth’s February 1960, and then NAACP New York February 1909.

Read about these people and significant events in history.  Now some may question what this has to do with goal setting and achievement.  It’s very simple– these leaders in history had to overcome major setbacks, losses, injustice and an unending list of challenges—yet they achieved, they set goals and met them.  They did not make excuses or blow off their goals to “next year”.  So, the next time you feel tired and aren’t sure if you want to go workout or aren’t sure if you can stick to skipping a few pieces of cake, think about what some of these leaders accomplished and it kind of puts things in perspective when it comes to making excuses.  We can all achieve great things, but it takes determination, a willingness to make changes and a decision to take control over your life and the goals you will accomplish.

Would you like to write a Health & Wellness column for our magazine?  We are looking for local businesses in this industry who want to GET KNOWN with a regular column.  Call one of our sales associates to find out how you can be known as an expert in Health & Wellness in Strictly Business Magazine!

by Jeff Dousharm, President. Tiger Rock. 402.570.1166.

For more information on Health, Fitness and Safety, email Jeff Dousharm at Jeff@paradigmimpactgroup.com

Historically, Workers’ Comp pricing is cyclical; therefore, indications are that increasing costs will continue for four to five years. To minimize the impact of the market shift, employers should understand the market forces driving the changes, how they impact their Workers’ Comp program and what they can do. There are four major factors propelling higher costs:

• Insurance companies, wanting to gain market share during a troubled economy, delayed increases even as their costs rose. They have paid out more in claims costs than they have taken in from premiums and low investment yields have not offset the underwriting losses. To return to profitability, insurance companies are raising premiums, reducing policy offerings and tightening underwriting standards, taking a particularly hard look at risks.

• Workers’ Compensation rates continue to be driven by medical costs that rise faster than inflation and often faster than medical costs outside the Workers’ Comp system. Rampant narcotic abuse has also exacerbated the problem.

• The National Council on Compensation Insurance (NCCI), which sets the standards for calculating Experience Modification Factors (Mods) used to determine Workers’ Comp costs, revised its standards significantly for the first time in decades. The three-year process that will commence on January 1, 2013 will change how Workers’ Compensation insurance providers calculate the Mod, which will affect premium rates for many buyers in states that use NCCI calculated Mods.

• Rising rates could be compounded by rising payroll in a recovering economy.

Employers with a keen grasp of Workers’ Comp premiums understand that “shopping” for a better rate is not the answer. Unlike most other insurance, Workers’ Comp functions like a Line of Credit. Use it and you will pay back the cost of the injuries plus more; in fact, employers will pay back two to three dollars to the insurance company for every dollar the insurance company pays in claims costs. In most states, an experience rating or Mod, an actuarially based method of determining whether your company’s losses (injury claims) are better or worse than expected, is used in calculating the premium.

Since the formula evaluates the company’s losses over three consecutive policy years, not including the most recent year, the 2013 Mod will use data from 2009, 2010 and 2011. Six months prior to the policy expiration date, the insurance company will submit data about the company’s claims during the previous policy year. If your renewal date is January 1, your Mod for 2013 is already determined. However, actively reducing your Mod today will reap reductions in Workers’ Compensation insurance premiums tomorrow.

While there are administrative steps that can be taken to tighten up costs, implementing safety measures and practices that reduce claims are the game changers regardless of industry or rate environment. Simply put, those employers who have a history of claims will incur greater costs than average. And it’s not just large claims. Frequency is a greater driver of costs than severity. Controlling Workers’ Comp is an ongoing business practice that should be consistent in hard and soft markets. If a company has a good claims record, it is going to be impacted the least when premiums increase.

by J. Scott Nelson
402.434.7205
UNICO Group, Inc
www.unicogroup.com