Exchange plan premiums competitive with employer coverage—one of 3 things you need to know this week in employee benefits

Exchange plan premiums competitive with employer coverage

Since the implementation of the Affordable Care Act, marketplace health plans have been striving to compete with employer coverage. A new infographic from Families USA provides a closer look at how the competition stacks up.

“The average employer plan pays for 85% of people’s medical expenses, on average, and costs $6,119 per year,” the infographic points out, while the highest tier in the marketplace comes in cheaper at $6,058 and covers 90% of expenses. In addition, nearly 85% of people that buy marketplace health plans also qualify for a subsidy, lowering costs even further.

10 do’s and don’ts for FMLA and ADA compliance

Thompson Information Services provides its top 10 tips for complying with the Family and Medical Leave Act and the Americans with Disabilities Act, based on legal action thus far in 2014.

TIS’s advice for employers includes questioning a provider’s opinion on whether an employee is fit for duty only after the employee has returned to work, and providing “decisive and final employment determination” in the case of termination.

TIS also reminds employers that a policy requiring a doctor’s note for intermittent FMLA leave is improper.

This week’s hidden gem: All target-date funds not created equal

While discussing allocation strategies for retirement savings, The Wall Street Journal reveals data showing that target-date funds with the same “target year” yield significantly varied results.

Long-known as “set it and forget it” retirement savings option for employees, the WSJ report offers a caveat emptor (“buyer beware”) for people enrolling in these options. An examination of two 2025 target-date funds shows performance increases ranging widely—from 1.4% all the way to 14.9%.

When selecting a target-date fund, WSJ cites experts who say investors should be comfortable with how the fund’s asset mix grows more conservative closer to its target date (“glide path”).

The experts also advise staying the course, not jumping ship from a fund after a negative quarter or year. Lastly, they remind investors to keep an eye on how fees can eat into returns as well.

Bonus: Join Thursday's Benefits Communication Master Class

Interested in learning more about the art of employee benefits communication? There's still 3 days left to register for the first session in our Benefits Communication Master Class! Join Benz Communications CEO & Founder Jennifer Benz on Thursday for the first of five free webinars, Creating results: Three steps to success with your benefits communication.