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HRFocus HUMAN CAPITAL PRACTICE May 2012 — Issue 59 HR CORNER 10 TIPS TO AVOID A DOL WAGE & HOUR INVESTIGATION Knock, knock … Surprise! Believe it or not, the federal Department of Labor (DOL) does not require an investigator to previously announce the scheduling of a wage & hour investigation. The investigator has sufficient latitude to initiate unannounced wage & hour investigations, in many cases, in order to directly observe normal business operations and quickly develop factual information. The following are some strategies to prevent this knock from sounding at your company’s front door! AVOID UNFAIR COMPENSATION PRACTICES Make sure employees are compensated in a consistent manner. If an employer’s pay practices are consistent, complaints are less likely to arise, and the employer will be in a better situation if DOL does launch a wage & hour investigation. UNDERSTAND THE REGULATIONS It is important that employers take the time and make a concerted effort to understand and familiarize themselves with the Fair Labor Standards Act (FLSA). It is the law, and if employers fail to follow the law they may face litigation or a DOL audit. TRAINING Train managers so they are fluent in the language of the FLSA. ANALYZE STATE VERSUS FEDERAL LAW Determine whether the state’s wage & hour laws conflict with federal law, then follow the law that is most beneficial to the employee. PAY PAST OVERTIME DUE If it is determined that an employee is wrongly classified as exempt, the employer should determine how many overtime hours the employee has worked in the past 2 years, then pay the employee the overtime due. The employer should also have the employee sign a release to free the employer from further liability. Paying past overtime due to employees now will be far less expensive than paying them in a DOL settlement. FOLLOW CHILD LABOR LAWS Employers must determine a minor’s age and set his or her job duties and work schedules accordingly and carefully. Also, employers must www.willis.com TABLE OF CONTENTS HR CORNER 10 Tips To Avoid A DOL Wage & Hour Investigation 1 HR Metrics: 10 Ways To Assess Strategic Business Context Of Your Organization 2 LEGAL & COMPLIANCE ERRP Funds Exhausted 3 FAQS On How HHS Will Define Essential Health Benefits 4 Maryland Allows Same-Sex Marriage 5 San Francisco: HCSO Annual Reporting Form Now Available 6 CHIP Model Notice Revised 6 SINCE YOU ASKED HSA Contribution Limits: Account Holders, Spouses And Adult, Non-Dependent Children 7 WELLNESS Assessing The Health Of Your Population 9 WEBCASTS 11 CONTACTS 12

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  • 1. HUMAN CAPITAL PRACTICE HRFocus May 2012 Issue 59www.willis.comHR CORNER10 TIPS TO AVOIDA DOL WAGE & HOUR INVESTIGATIONKnock, knock Surprise! Believe it or not, the federal Departmentof Labor (DOL) does not require an investigator to previouslyannounce the scheduling of a wage & hour investigation. Theinvestigator has sufficient latitude to initiate unannounced wage &hour investigations, in many cases, in order to directly observenormal business operations and quickly develop factual information.The following are some strategies to prevent this knock fromsounding at your companys front door!AVOID UNFAIR COMPENSATION PRACTICESMake sure employees are compensated in a consistent manner. If anemployers pay practices are consistent, complaints are less likely toarise, and the employer will be in a better situation if DOL doesTABLE OF CONTENTSlaunch a wage & hour investigation.HR CORNERUNDERSTAND THE REGULATIONS10 Tips To Avoid A DOL WageIt is important that employers take the time and make a concerted & Hour Investigation 1effort to understand and familiarize themselves with the Fair LaborHR Metrics: 10 Ways To AssessStandards Act (FLSA). It is the law, and if employers fail to follow theStrategic Business Context Oflaw they may face litigation or a DOL audit.Your Organization 2LEGAL & COMPLIANCETRAININGTrain managers so they are fluent in the language of the FLSA.ERRP Funds Exhausted3FAQS On How HHS Will DefineANALYZE STATE VERSUS FEDERAL LAWEssential Health Benefits 4Determine whether the states wage & hour laws conflict with federalMaryland Allows Same-Sex Marriage 5law, then follow the law that is most beneficial to the employee.San Francisco: HCSO AnnualReporting Form Now Available6PAY PAST OVERTIME DUE CHIP Model Notice Revised 6If it is determined that an employee is wrongly classified as exempt,the employer should determine how many overtime hours the SINCE YOU ASKEDemployee has worked in the past 2 years, then pay the employee theHSA Contribution Limits:overtime due. The employer should also have the employee sign a Account Holders, Spouses And Adult,release to free the employer from further liability. Paying pastNon-Dependent Children7overtime due to employees now will be far less expensive than payingWELLNESSthem in a DOL settlement. Assessing The Health OfYour Population 9FOLLOW CHILD LABOR LAWS WEBCASTS11Employers must determine a minors age and set his or her job dutiesand work schedules accordingly and carefully. Also, employers mustCONTACTS12

2. file the minor employees age certificate, keeping it for aslong as the minor is employed. HR METRICS: 10 WAYS TO ASSESS STRATEGICPAY YOUR INTERNS, UNLESS THEY MEET A STRICT TESTInternships in the for-profit, private sector will most oftenBUSINESS CONTEXT OFbe viewed as employment by the DOL, unless a strict test ismet. Interns who qualify as employees rather than trainees YOUR ORGANIZATIONtypically must be paid at least the minimum wage and HR metrics are the key for HR professionals to beovertime compensation for hours worked over 40 in a active participants in a business strategic decisions.workweek. HR metrics provide the means for HR professionals to communicate with management. However,RESPOND TO INTERNAL COMPLAINTS EXPEDITIOUSLY typically, busy HR leaders can spend only 10 percent ofIf an employee files a wage & hour complaint internally, the their time at the strategic level, and only 2 in 10 have aemployer should take it seriously. Since manyprocess in place for measuring the businessinvestigations are prompted by an employees complaint,performance of employees. These numbers indicateemployers might be able to prevent an investigation by that success is not being measured as well as it shouldaddressing an employees initial internal complaint. be, which can ultimately keep HR from being the key contributor to organizational success that it could be.SEEK COMPLIANCE ASSISTANCE FROM DOLIn a BLR webinar titled HR Metrics: How to MeasureVarious compliance tools and information are available onand Communicate Your Strategic Value in Bottom-DOLs website. Line Terms, Ronald Adler and Jennifer Burdick outlined how the use of HR metrics allows HRCONDUCT A SELF-AUDIT professionals to tell their story eectively.Employers can hire attorneys to audit their companiesorthey can do it themselves before DOL initiates anHR METRICS: TELLING YOUR STORYinvestigation. Conducting a self-audit helps ensureHR Metrics are about telling a story about yourcompliance with federal and state laws. As part of an audit, organization. Like other stories, your story:employers should: Must have contextReview job descriptions to determine whether they areShould consider historical information (laggingstill accurate, reect the jobs being performed, and indicators)reect the skills necessary to perform the job.Should report current information (coincidentReview employees actual job duties to ensure that theyindicators)still fall within the administrative, executive, Should indicate possible future events (leadingprofessional, computer, or outside sales exemptions. indicators and predictive analytics)Make sure overtime for nonexempt employees has Should consider its audience (there is a growingbeen properly calculated list of internal and external stakeholders and usersMake sure the required posters have been hung in the of HR metrics)appropriate places in the workplace. Should engage the audience and motivate actionDOL investigators look for complete, accurate, and What stories do your metrics tell about yourunambiguous pay records for every employee for each payorganizations human capital and HR management?period from the past 3 years. As a result, it is imperativeAre your executives listening?that employers strive to keep accurate, well-organized wage& hour records that can be produced quickly. If violationsare found, the employer may owe back pay, face penalties,and be advised by DOL to make changes in employmentpractices in order to avoid future violations.This article provided by BLR. 2Willis North America 05/12 3. HR METRICS: STRATEGIC BUSINESS CONTEXTThe starting point in developing the right metrics to effectively tell your story is to fully understandthe strategic business context youre working in. Here are 10 areas to assess in order to understandthe strategic business context of your organization:How does your organization produce revenue?How does human resources add value to your organization?Are HR activities and employment practices aligned with your organizations strategic andbusiness goals and objectives? How do human resources impact these objectives?What are your organizations key business measurements and metrics currently? How does yourorganization measure success? Whats on your organizations scorecard? Adler noted that this isa starting point for your whole discussion.How do human resources impact your organizations key business measurements and metrics?What are your organizations business imperatives, i.e., what distinguishes your organization inthe marketplace? How do HR activities and employment practices impact these imperatives?What are your organizations risks and opportunities? How do HR activities and employmentpractices impact these risks?What decisions do you want to influence?Can you connect the dots between the metric and decision making?What happens if your organization misses the target?By understanding these 10 areas, you can begin to best understand what HR metrics will be mostuseful to develop and which will best tell your story to the organizations leaders.This article provided by BLR.LEGAL & COMPLIANCEERRP FUNDS EXHAUSTEDOn February 17, 2012, the Early Retiree Reinsurance Program (ERRP) announced that requests forreimbursement had exceeded the $5 billion funding allocated to the program. Reimbursementrequests which exceed the programs $5 billion will now be held in the order of receipt, pending theavailability of funds. Plan sponsors with reimbursement requests on hold can expect to receive anemail notifying them that their reimbursement requests have been placed on hold pending theavailability of funds. Plan sponsors who have received such an email can call the ERRP ContactCenter to obtain updated information on the position of the reimbursement request in the list of heldreimbursement requests.The Centers for Medicare & Medicaid Services (CMS) has indicated it will continue to payreimbursement requests in the order received until available funds are exhausted. If there are notsucient funds to pay in its entirety the rst reimbursement request that causes the initialexhaustion of the funds available for payment, CMS will partially honor that reimbursement request,and will pay the balance of that reimbursement request if additional funds become available throughoverpayment recoupment eorts. In the event that funds become available as a result of overpaymentcollections, CMS will pay subsequent reimbursement requests in the order of receipt until funds areonce again exhausted.Related to ongoing ERRP requirements, CMS has announced its expectation that plan sponsors willuse ERRP reimbursement funds they have received, or will receive, as soon as possible, but in no caselater than December 31, 2014. Plan sponsors can view the Common Question on this topic, 800-13,which is posted in the "Use of Reimbursement" section of the Common Questions on www.errp.gov. 3 Willis North America 05/12 4. BACKGROUNDThe ERRP was established by the health care reform law with appropriated funding of $5billion. It became effective June 1, 2010. The program provides reimbursement to plansponsors of participating employment-based plans for a portion of the cost of healthbenefits for early retirees and their spouses, surviving spouses and dependents. In order toobtain reimbursement under the ERRP, plan sponsors had to first submit a completedapplication to the Department of Health and Human Services (HHS) and be accepted intothe program. HHS began accepting ERRP applications on June 29, 2010 but stoppedaccepting them in May 2011. The program was slated to end no later than January 1, 2014,but HHS had the authority to stop taking ERRP applications based on the availability offunding.Once a plan sponsors ERRP application was accepted, the plan sponsor could submitdocumentation of actual costs for early retiree health care benefits and receivereimbursement from the ERRP. Claim reimbursements began in October 2010. InDecember 2011, ERRP announced that reimbursements would be unavailable for claimsincurred after December 31, 2011.For more information on the ERRP, see Willis Human Capital Practice Alert, Vol. 3, No. 7,Its a Start: Guidance on the Early Retiree Reinsurance Program.FAQS ON HOW HHS WILL DEFINE ESSENTIALHEALTH BENEFITSThe Department of Health and Human Services (HHS) has added a set of FAQs to itsprevious releases on the approach it intends to follow in dening essential health benets(EHB).NOTE: The health care reform law directs the relevant agencies to dene EHB so that a planproviding EHB will be similar in scope to typical employer-provided health benets and willinclude coverage in 10 broad categories of health care. HHS has indicated that it intends toissue regulations under which each state chooses a benchmark plan from among severaloptions and then determines what must be added so that the resulting plan providescoverage of all 10 categories of health care that the statute species for EHB. This meansthat there will be multiple state-specic denitions of EHB, rather than a single denition.The new FAQs primarily provide details on how HHS will work with states to dene EHB.They also include, however, information on how an employer would use the EHB denition incomplying with the lifetime and annual dollar limits provisions of the health care reform law.WHY THE EHB DEFINITION MATTERS TO EMPLOYERS SPONSORING HEALTH PLANSEmployers generally are not responsible for ensuring that their group health plans provideEHB. Insurers may be required, however, to ensure that the group policies they sell toemployers in the small group market or through an insurance exchange provide EHB. Self-insured, grandfathered and large-market insured group health plans are not required toprovide EHB at all.NOTE: The significance of the term essential health benefits (as well as the confusinglysimilar term minimum essential coverage) is discussed in Willis Human Capital PracticeAlert, July 2011, Looking Ahead Compliance After 2011. 4 Willis North America 05/12 5. Employers are responsible for ensuring that the group health plans they sponsor whether insured, self-insured, grandfathered or non-grandfathered comply with thehealth care reform laws provisions regarding annual and lifetime dollar limits. (Thereare several types of excepted benefits programs which need not comply, as explained inWillis Human Capital Practice Alert, July 2011, Looking Ahead Compliance After2011.) The annual and lifetime dollar limits provisions apply only with respect to EHB they do not limit plans ability to impose dollar limits on non-EHB.FAQS ADDRESS COMPLIANCE WITH LIFETIME AND ANNUAL LIMITS PROVISIONSThe provisions regarding lifetime and annual dollar limits on EHB are currently ineffect, but one of the open questions about them has been which of the benefits a planoffers is non-EHB which may be subject to such limits. See Willis Human CapitalPractice Alert, July 2010, Patients Bill of Rights Guidance Issued. The enforcingagencies have said that they will take into account good faith efforts to comply with areasonable interpretation of EHB until regulations defining the term are finalized. Withspecifics on exactly which benefits are EHB lacking, however, most employers havesimply not applied lifetime or annual dollar limits to any benefits. Multi-stateemployers were particularly disappointed when previous HHS releases indicated thatregulations will allow each state to define EHB for itself.The new FAQs provide some details on the meaning of EHB for purposes of the annualand lifetime dollar limits provisions, at least for group health plans that are self-insured,grandfathered or provided through large-market insurance policies. Such plans maychoose any one definition of EHB that is authorized by HHS, and the enforcing agencieswill treat that as a permissible EHB definition for purposes of the lifetime and annuallimits provisions. It seems clear that, once the individual states definitions are in place,an employer may choose any one of those definitions and amend its plan to imposelifetime or annual dollar limits on benefits that are outside of that definition. It isunclear exactly what plans may or must do between now and the time that statesfinalize their EHB definitions.The National Legal & Research Group will continue to monitor developments involvingthis issue and provide information on them as needed.MARYLAND ALLOWS SAME-SEX MARRIAGEOn March 1, 2012, the governor of Maryland, Martin OMalley (D), signed the CivilMarriage Protection Act (HB 438). This law will allow same-sex couples to marrystarting January 1, 2013. Opponents of the law have stated their intent to gather enoughsignatures to put the law up to a voter referendum that would appear on the November2012 ballot.Maryland currently requires insurance carriers to oer domestic partner coverage ifrequested by the policyholder. Insurers will now be required to provide coverage tosame-sex spouses whether the policyholder requests the coverage or not. Self-insuredplans that are governed by ERISA will not be aected by the state law. Regardless ofwhat Maryland law says, it will generally be trumped by federal law. Therefore, same-sex spouses are typically treated as non-spouses for all federal laws that includesCOBRA, federal tax, FMLA, etc. However, same-sex spouses will be eligible for thosebenets and rights conferred by Maryland law.5 Willis North America 05/12 6. Maryland joins Connecticut, Iowa, Massachusetts, New Hampshire, New York, Vermont, the state ofWashington (legislation legalizing same-sex marriage was signed on February 13, 2012 and is eectiveJune 7, 2012) and Washington D.C. in legalizing same-sex marriage. For a discussion on how same-sexmarriage aects employers and employer-sponsored benets, please see Willis Human CapitalPractice HR Focus, August 2011, Issue 50, New York Enacts Same-Sex Marriage Law.SAN FRANCISCO: HCSO ANNUAL REPORTING FORMNOW AVAILABLESan Franciscos Health Care Security Ordinance (HCSO) requires that medium and large businessesmake certain minimum contributions toward their San Francisco employees health care. Under thismandate, an employer may either contribute at least the minimum amount to a medical plan or otherhealth benets or pay that amount into the publicly available program established by the HCSO. (SeeWillis Human Capital Practice Alert, Issue 112, for additional details on the HCSOs requirements.)The HCSO requires covered employers to report on their health care expenditures by April 30 of eachyear. A copy of the 2011 ARF is now available on the Oce of Labor Standards Enforcements (OLSE)website.The ARF has been updated to reect the HCSO amendments that were eective January 1, 2012. Forinformation about the amendments, please see Willis Human Capital Practice HR Focus, January2012, Issue 55, San Francisco Health Care Ordinance Amended.CHIP MODEL NOTICE REVISEDThe Department of Labors (DOL) Employee Benet Security Administration (EBSA) has released anupdated CHIP model notice. The revised notice can be found by clicking here. A printable version isalso available by clicking here. The DOL also makes the notice available in Spanish; click here.Employers who had already fullled the CHIP notice requirement prior to the release of the newnotice are not aected by the revised notice (redistribution of the notice is not required). However,employers who have not yet complied with the notices annual distribution requirement will want tobe sure they use the most recent notice.BACKGROUNDAn employer is required under the Childrens Health Insurance Program Reauthorization Act(CHIPRA) to provide a CHIP notice if it maintains an insured or self-insured group health plan underwhich it offers benefits in a state that provides a premium assistance subsidy under Medicaid orCHIP. An employer must provide the CHIP notice to employees who reside in these states, regardlessof the employers location or principal place of business (or the location or principal place of businessof the group health plan, its administrator, its insurer or any other service provider affiliated with theemployer or the plan), and regardless of an employees enrollment status in the employers grouphealth plan.Employers were required to provide an initial CHIP notice by the later of either (1) the first day of thefirst plan year after February 4, 2010 or (2) May 1, 2010. Accordingly, for plan years that beganbetween February 4, 2010, and May 1, 2010, employers should have provided the CHIP notice by May1, 2010. For plans with plan years that began after May 1, 2010, employers should have provided theCHIP notice by the first day of the plan year (i.e., January 1, 2011, for calendar year plans). Afterdistributing the initial CHIP notice, employers must provide the notice annually. 6Willis North America 05/12 7. SINCE YOU ASKED:HSA CONTRIBUTION LIMITS:ACCOUNT HOLDERS, SPOUSES ANDADULT, NON-DEPENDENT CHILDRENThe National Legal & Research Group (NLRG) is frequently askedabout who may contribute to a Health Savings Account (HSA) andwho is eligible for tax-free reimbursements from an HSA. NLRG wasrecently asked several questions in regard to an employee, age 59,who elected to cover an adult child under an HSA-qualied high de-ductible health plan (HDHP). She elected full family coverage, cov-ering herself, her spouse, age 60, and the adult child. The spouse alsohas an HSA-qualied HDHP through his employer and has alsoelected full family coverage (covering himself, his spouse and theadult child). The adult child does not qualify as a tax dependentunder Internal Revenue Code (IRC) 152 as a qualifying relativebut was added to the parents coverage following enactment of thePatient Protection and Aordable Care Act of 2010 (PPACA). PPACArequires employer-sponsored group health plans that provide cover-age for employees children to make that coverage available until thechild reaches age 26.NLRG received the following questions regarding this situation:1. How much can the employee contribute to her HSA?2. How much can the spouse contribute to his HSA?3. What is the interaction, if any, between the employees and the spouses ability to contribute to their individual HSAs?4. Can the adult child contribute to her own HSA, and, if so, how much?BACKGROUNDHSA CONTRIBUTIONS ANYONE, EVERYONE?In order to make a tax-deductible contribution to an HSA, a personHSAs are individual accounts, owned bymust be an eligible individual. A person is an eligible individual, individuals. The HDHP, however, is an employer-with respect to any month, if the person is:sponsored group health plan. While the employersets the eligibility criteria for the HDHP, federalCovered by a plan that qualifies as a high deductible health plan tax rules determine whether an individual with an(HDHP)HDHP can enroll in and contribute to an HSA.Not covered at the same time by any other plan which is not anThese rules also determine how much they canHDHP, but which covers the same benefits as the HDHP (other contribute to the HSA.health plans include general purpose health Flexible SpendingAccounts) The amount that the account holder or any otherNot claimed as a dependent on another persons tax return (aperson (e.g., an employer) can contribute to thespouse is not considered to be a tax dependent under either IRC account holders HSA depends on the category of151 or 152, even though a taxpayer may claim an exemption for HDHP coverage the account holder has (i.e., self-the spouse) only or family), the account holders age, the dateNot enrolled (not just eligible, but actually enrolled) in Medicare the account holder becomes an eligible individual,Part A or B (eligible employees age 65 or over may contribute toand the date the account holder ceases to be anan HSA, including the catch-up contribution, as long as they areeligible individual. For 2012, if the account holdernot enrolled in Medicare)7 Willis North America 05/12 8. has self-only HDHP coverage he can contribute up to $3,100, and ifFinally, to answer the last question onthe account holder has family HDHP coverage he can contribute upwhether the adult child can contribute to herto $6,250. The HSA contribution limit for an HSA-eligible individualHSA and how much, the maximumwho has family HDHP coverage is not aected merely because one or contribution limit is determined for eachmore of the other covered family members also has non-HDHPeligible individual. In the current situation,coverage or HDHP coverage with a lower deductible.the adult, non-dependent child is not adependent eligible to be claimed on theIf the account holder is an eligible individual who is age 55 or older at parents tax return. In addition, she is alsothe end of the account holders tax year (usually December 31), the covered by a plan that qualies as an HDHPaccount holders contribution limit is increased by $1,000. For (she is actually covered by two HDHPs).example, if the account holder has self-only coverage, he can Assuming she is not covered by a non-HDHPcontribute up to $4,100 (the contribution limit for self-only coverageand she is not enrolled in Medicare, she will be($3,100 for 2012) plus the additional contribution of $1,000).an eligible individual. This means she wouldbe eligible to establish her own HSA. SinceThere are special contribution rules for married individuals. Ifshe has family HDHP coverage, she would beeither spouse has family HDHP coverage, both spouses are treated as allowed to contribute up to the maximumhaving only that family HDHP coverage. If each spouse has familyfamily contribution amount ($6,250 in 2012).coverage under a separate plan, their combined contribution limitfor 2012 is $6,250. The contribution limit is split equally between CONCLUSIONthe spouses unless they agree on a dierent division. If both spouses To summarize who can contribute what in theare 55 or older, each spouses contribution limit is increased by the fact pattern provided above, the employee andadditional $1,000 catch-up contribution. If both spouses meet the spouse could make a combined HSAage requirement, their total HSA contributions cannot be more thancontribution of $6,250, split between their$8,250 ($6,250 plus the additional $2,000 in catch-up HSAs however they see fit, plus they can eachcontributions). Each spouse must make the additional catch-up make an additional $1,000 catch-upcontribution to his or her own HSA (joint HSAs do not exist). contribution, as they are both over age 55, totheir respective HSAs (a grand total HSAThe maximum annual HSA contribution for the year is based uponcontribution between them of $8,250). Thethe individuals category of HDHP coverage (self-only or family) on adult, non-dependent child could contributethe rst day of the last month of the account holders tax year up to $6,250 to her own HSA.(December 1 for most taxpayers). For example, if the account holderhad family HDHP coverage on the rst day of December, his Taken as a group, the family is essentially ablecontribution limit for 2012 is $6,250 (this is true even if the account to contribute a combined $14,500 into HSAsholder had single coverage earlier in the year). In other words, thein 2012. And, if the parents had a secondaccount holder is treated as having the same HDHP coverage for theadult, non-dependent child under the sameentire year as he had on the rst day of that last month. ThisHDHP, the total would be $20,750. The taxmaximum contribution level, however, is contingent on maintaining code provides an incentive for adult, non-HDHP coverage throughout a specied testing period. The testing dependent children, to aggressively fund anperiod begins with the last month of the account holders tax yearHSA (on a tax preferred basis) while coveredand ends on the last day of the 12th month following that month (aunder a parents employer-sponsored HDHP.total of 13 months). For example, December 1, 2012 throughDecember 31, 2013 would be the testing period for contributions For questions about whether an adult childmade in the 2012 tax year.who is not a tax dependent may have hismedical expenses reimbursed through aSo, to answer questions 1, 2 and 3, each spouse, as they both meet theparents HSA, please see Willis Human Capitalage requirement, can fund their own HSA with the $1,000 catch-upPractice HR Focus, June 2011, Issue No. 48,contribution and they can contribute an additional $6,250 eitherSince You Asked: Who is Eligible for Tax-put $3,125 in each HSA account or split any other way the spouses Free HSA Reimbursements?agree upon (the spouses should discuss with their tax adviser theissue of who should make what HSA contribution).8Willis North America 05/12 9. WELLNESSASSESSING THE HEALTH OF YOUR POPULATIONIdentifying risk factors in an employee population is the rst step toward improving overall health and controllinghealth care spending. Perhaps the most eective way for employers to do this is to oer questionnaires, commonlyreferred to as a health assessment (HA) to their employees.WHAT IS A HEALTH ASSESSMENT?An HA is a questionnaire that gathers information from individuals in order to identify their risk factors for healthconditions and diseases. Typically HAs collect information on demographics, individual medical history, lifestylebehaviors and biometric data such as blood pressure and cholesterol level. After completing an HA, participants areprovided with individualized feedback and information on any identified risk factors in order to improve health,sustain health and/or prevent disease. According to the 16th Annual National Business Group on Health/Towers WatsonSurvey Report, 79% of employers surveyed offer HAs.WHY OFFER A HEALTH ASSESSMENT?To:Provide behavioral motivators for your employees and their dependentsPredict future health care trendsCreate targeted messaging for worksite wellness programmingProvide employee health awareness and determine appropriate program interventionImprove health plan design and services through valuable feedbackEmployers should examine their organizational culture and choose an administration format that will best meet theneeds of the majority of their employees. All assessments should be written at or below a sixth grade reading level.Typically, an older workforce and retirees prefer a paper-based questionnaire. Most employers are offering anelectronic HA to their workforce, or transitioning from paper-based to electronic HAs. Reasons for the migrationinclude greater freedom over question customization, better integration with other program data and the opportunityto provide instant feedback.HEALTH ASSESSMENT COMPONENTSThese should be structured so that they: Provide a personalized follow-up report to employees Are electronically available Assess readiness to change Cover risk factors recommended by the United States Preventive Services Task Force Incorporates clinical values, such as blood pressure, cholesterol levels, body mass index and/or waist circumferenceAssess stress level Assess physical activity level 9Willis North America 05/12 10. Assess tobacco and drug useAssess absenteeism and/or presenteeism (ideally, both)Can, if the employer has a clinical staff onsite be integrated withclinical information gathered by onsite staffWHAT ARE THE DIFFERENT METHODS OF FOLLOW-UP TO A HEALTHASSESSMENT?Employees should always be granted the option of being contacted afteran assessment. Once a risk factor is identified and the employee has givenhis or her consent to be contacted, a variety or a combination of differentfollow-up methods can be used.POPULAR FOLLOW-UP METHODS INCLUDE:Health coach contact; telephonic (recommended for first contact),electronic or in personElectronic personalized materials or links to resources24-hour nurse lineTear-off sheet to take to the employees physicianReview with personal wellness coordinatorFollow-up with occupational health nurses/health professionals atthe work siteImmediate one-on-one counseling by subject matter expert/healthprofessionalOffering several options for employee follow-up allows the greatestchance of achieving high satisfaction as well as removing potentialbarriers to compliance. Reports indicate that when information andresources are convenient for people to access they are more likely to usethem. Reports indicate that one-on-one counseling sessions achieve thegreatest employee satisfaction levels, and they are highly recommendedfor initial contacts. Once the employee has been contacted, the contactingparty can ask how the employee prefers to be reached in the future.Implementing a health assessment can be the first step in creating acomprehensive wellness program in your organization. For additionaltools and resources, please contact your local Willis Associate.10 Willis North America 05/12 11. WEBCASTSSOLVING COMPLIANCEHEALTH REFORM:PROBLEMSWHAT THE SUPREMEUNDER THE NEW FMLACOURT SAID; WHATREGULATIONS THE SUPREME COURTTUESDAY, MAY 15, 2012WILL SAY.2:00 PM EASTERN TIMETUESDAY, JUNE 19, 2012Presented by:2:00 PM EASTERN TIMEKIMBERLY HARRELL, MS PHR, SR.Presented by:HUMAN RESOURCES CONSULTANT,PRESENTED BYHR PARTNERJACK TOWARNICKY, JDEMPLOYEE BENEFITS ATTORNEY,The recently issued Family and MedicalWILLIS NATIONAL LEGAL &Leave Act (FMLA) regulations are requiringRESEARCH GROUPemployers to rethink their FMLA policies,procedures and documentation.Recently the U.S. Supreme Court heardoral arguments about four specic issuesThe new regulations also provideregarding the Patient Protection andinterpretations to major FMLAAordable Care Act of 2010. The issuesdevelopments, including GINAs safe harborwere whether the legal challenge wasrules and the in loco parentis rule.timely, whether the individual mandate isconstitutional, whether the individualThese new regulations have not lessened themandate can be severed from the rest ofconfusion for employers, especially in areasthe law and whether expanded Medicaidsuch as determining what is a qualifyingcoverage is an impermissible mandate onserious health condition, complying withthe states.notication and certication requirements,and providing intermittent leave.Join Willis National Legal ResearchGroup for a Health Reform Update.Please join us for an informational overviewWe will review the implications of theof FMLA as it exists today, including recentSupreme Court decision as well as nextcourt cases interpreting FMLA, as well as ansteps in terms of compliance forupdated look at what the future holds foremployer-sponsored health plans.FMLA legislation and strategic enforcement.PARTICIPANT ACCESSIf the decision is delayed, we will scopeout the various permutations of theseAdvance reservations are required toissues and how a favorable or unfavorableparticipate. Click here to RSVP forruling for each might impact employer-this call.sponsored coverage. Immediately after These programs have been approved for 1the decision is announced, we will follow (General) recertication credit hour toward PHR, SPHR and GPHR recertication through the HRup with an Alert. Certication Institute. For more information about certication or recertication, please visit the HR Certication Institute website atPARTICIPANT ACCESSwww.hrci.org. The use of this seal is not an endorsement by the HRAdvance reservations are required toCertication Institute of the quality of the program. It means that participate. Click here to RSVP forthis program has met the HR Certication Institutes criteria to bepre-approved for recertication credit. this call.11 Willis North America 05/12 12. KEY CONTACTSU.S. HUMAN CAPITAL PRACTICE OFFICE LOCATIONSNEW ENGLANDWilmington, DEJacksonville, FL 302 397 0171904 355 4600Auburn, ME207 783 2211 ATLANTICMarietta, GA 770 425 6700Bangor, ME Baltimore, MD207 942 4671 410 584 7528Miami, FL 305 421 6208Boston, MA Bethesda, MD617 437 6900 301 581 4261Mobile, AL 251 544 0212Burlington, VT Knoxville, TN802 264 9536 865 588 8101Orlando, FL 407 562 2493Hartford, CT Memphis, TN860 756 7365 901 248 3103Raleigh, NC 704 344 4856Manchester, NH Nashville, TN603 627 9583 615 872 3716Savannah, GA 912 239 9047Portland, ME Norfolk, VA207 553 2131 757 628 2303Tallahassee, FL 850 385 3636Shelton, CTReston, VA203 924 2994 703 435 7078Tampa, FL 813 490 6808NORTHEASTRichmond, VA813 289 7996 804 527 2343Buffalo, NYVero Beach, FL716 856 1100 Rockville, MD 772 469 2842 301 692 3025Cranford, NJ MIDWEST908 931 3005 SOUTHEAST Appleton, WIFlorham Park, NJ Atlanta, GA 800 236 3311973 410 4622 404 224 5000 Chicago, ILMorristown, NJ Birmingham, AL312 288 7700973 829 6374 205 871 3300312 348 7700973 829 6465 Charlotte, NC Cleveland, OHNew York, NY 704 344 4856216 861 9100212 915 8802 Gainesville, FL Columbus, OHNorwalk, CT352 378 2511614 326 4722203 523 0501 Greenville, SCDetroit, MIRadnor, PA 704 344 4856248 539 6600610 254 728912Willis North America 05/12 13. Grand Rapids, MISan Antonio, TX616 957 2020210 979 7470Milwaukee, WI Wichita, KS414 203 5248316 263 3211414 259 8837WESTERNMinneapolis, MN763 302 7131Fresno, CA763 302 7209559 256 6212Moline, ILIrvine, CA309 764 9666949 885 1200Pittsburgh, PALas Vegas, NV412 645 8506602 787 6235602 787 6078Schaumburg, IL847 517 3469Los Angeles, CA213 607 6300SOUTH CENTRALNovato, CAAmarillo, TX415 493 5210806 376 4761Phoenix, AZAustin, TX602 787 6235512 651 1660602 787 6078Dallas, TXPortland, OR972 715 2194503 274 6224972 715 6272Rancho/Irvine, CADenver, CO562 435 2259303 765 1564303 773 1373San Diego, CA858 678 2000Houston, TX 858 678 2132713 625 1017713 625 1082San Francisco, CA415 291 1567McAllen, TX956 682 9423San Jose, CA408 436 7000Mills, WY307 266 6568Seattle, WA800 456 1415New Orleans, LA504 581 6151The information contained in this publication isnot intended to represent legal or tax advice andOklahoma City, OK has been prepared solely for educational405 232 0651purposes. You may wish to consult your attorneyor tax adviser regarding issues raised in thisOverland Park, KS publication.913 339 0800 13 Willis North America 05/12