What steps would help an organization choose which benefits to offer employees quizlet?

(see list 138 for comparisons of these accounts)
1) HSA
a) Must accompany a high-deductible health plan with a minimum deductible ($1200 individual, $2400 family) and maximum out-of-pocket limit ($5950, $11900 family) (year 2011 amounts, indexed for inflation)
b) Can be used to pay for qualified medical expenses, health insurance premiums in limited circumstances, LTC premiums, and LTC services
c) Owned by the employee, who gets to keep the unused balance upon terminating employment
2) HRA - can be used to pay for qualified medical expenses, health insurance premiums, and LTC premiums
3) FSA
a) Can be used to pay for qualified medical expenses
b) The contribution amount must be specified at the beginning of the period, and the employee can use the full amount at any time in the coverage period
c) Funds not used by the end of the period are forfeited

(all plan sponsors must perform these core activities, and the benefits director must be proficient at these)
1) Benefits plan design - create a benefit program that addresses the needs of the organization and can be effectively administered and communicated
2) Benefits plan delivery - involves serving plan participants through various activities (see list 144). Must meet legal standards for quality service (eg complying with ERISA and COBRA standards).
3) Benefits policy formulation - management must make decisions on questions and issues that arise. These decisions must be codified into policies
4) Communications - must effectively communicate benefit programs and plan provisions, which is challenging due to workforce diversity, regulatory requirements and plan complexity. Legal standards require certain communications (e.g. summary plan descriptions, benefit statements, and statement of COBRA rights)
5) Applying technology - involves setting up a database containing information on all the employer's different benefit plans. This information should be secure and easily accessible to the employer and its employees
6) Cost management and resource controls - benefits directors must evaluate proposals from insurers and develop the firm's risk management approach
7) Management reporting - information systems are needed to monitor financial results, utilization and compliance. Reports are needed in order to:
a) Compare to the competition (see list 146)
b) Measure achievement of human resources objectives (through industry surveys, employee surveys, and focus groups)
c) Assess and manage program risks
8) Legal and regulatory compliance - must comply with fiduciary, funding, and other requirements as prescribed by law. Many standards were codified as part of ERISA
9) Monitoring the external environment - involves monitoring various factors that impact benefit management activities (see list 147)

Qualified benefits (can be offered on a pre-tax basis)
1) Employer provided accident or health coverage - this includes medical, dental, vision, disability, AD&D, business travel and accident plans, hospital indemnity, cancer policies, Medicare supplements, and reimbursements for FSAs
2) Individually-owned accident or health policies
3) Employer-provided group term life insurance coverage (only the first $50,000 is nontaxable)
4) Employer-provided dependent care assistance
5) Employer-provided adoption assistance
6) Contributions to a 401(k) plan
7) Contributions to an HSA
Permissible benefits (these can be offered, but are taxable)
1) Cash
2) Paid vacation days
3) Group term life insurance in excess of $50,000

Sets with similar terms

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