Employers spend billions of dollars annually to provide insurance coverage for their employees. Group benefits typically cost less than what's available on the open markets so employees have access to better and more affordable programs. Providing this insurance coverage, however, exposes employers to many government compliance regulations with many imposing financial and criminal penalties for non-compliance.
Kristine Kassel, President of Benefits by Design, an ASBA partner, it's easy for businesses to unintentionally get themselves into trouble. Even if a business is not offering insurance, she says there are ways for a business to get themselves into trouble. The Notice of Exchange was required to be sent out last October, regardless if an insurance plan existed in the company or not. This two-page document could be accessed directly through the Department of Labor website. Kassel says it's important to be following guidelines as to what information needs to be sent out.
If a business is not handing out a Summary of Benefits to their employees, that's another area which can accrue a fine. This needs to be done annually and the Summary of Benefits states what is covered on the insurance plan. Working with a partner, like Benefits by Design, can make a business aware of what needs to be handed out and when.
Kristine Kassel is the President of Benefits by Design and spoke with Arizona Business News during this interview. This Arizona Small Business Association news update has been brought to you by Copper Point, Arizona's premiere workman's compensation insurance. Arizona Business News, a featured network of Sequence Media Group, is brought to you by the ASBA.