Using the Power of Gen Y in the

Throes of Reform

Danielle Schweiger

Director of Marketing and New Business Development

Benefit Innovations, LLP

Indianapolis, IN

On the Horizon: PPACA Provisions of 2013

W-2 Reporting • Annual reporting begins January 2013 (for 2012 W-2 Forms)

Health FSA Limit • Plan years beginning January 1, 2013

• The annual limit on health FSAs is $2500

• Does not impact mid-year FSAs in 2012 until renewal in 2013

FICA and Medicare Tax Rate Increase • FICA Medicare Tax rate increases .9% for wages over $200,000 ($250,000 for married couples filing

jointly).

• Expansion of FICA to include additional 3.8% tax on unearned income of high income individuals.

Exchange and Subsidy Notice • October 2013

• Notice to plan participants explaining the Exchanges and potential federal subsidies if the employer-

sponsored coverage is “unaffordable”.

Patient-Centered Outcomes Research Institute (PCORI) Fee on Plans • First fee due July 31, 2013

• Fees are affective for each plan year ending on or after 10/1/12

On the Horizon: PPACA Provisions of 2014

Pay or Play

No Annual Dollar Limits on Essential Health Benefits if Required

No Preexisting Condition Exclusions

90-Day Limitation on Waiting Periods

Tax on Plans to Fund Temporary Reinsurance Program • States must establish transitional reinsurance programs to help stabilize premiums for individual

market coverage from 2014-2016.

• Plans and insurers will be taxed

Wellness Rewards • Employers will be permitted to vary premiums up to 30% (possibly increasing to 50%) for

participation in wellness programs.

Exchanges Must Be Established

Federal Subsidies • Premium assistance tax credits and cost-sharing subsidies become available for those eligible

through the Exchanges

Individual Mandate to Purchase Health Insurance

41% of Generation Y-ers have turned down

a job offer in 2009– because they expected

something better.

90% of Generation Y qualify their resume

as “perfect”. • According to National Association of Colleges and Employers; From the “Why

Worry Generation”, by Judith Warner, 5/28/10

Workforce in 2025, According to a BPW Foundation Study:

Gen Y

Everyone Else

5 MISTAKES MANAGERS MAKE

WITH GEN Y IN THE WORKPLACE (Tom McBride)

#1: Managers fail to recognize that the high-tech savvy of this generation—

unparalleled in history—masks their lack of low-tech skills.

#2. Managers fail to perceive the nuances of Gen Y work habits.

#3: Managers associate giving new

employees what they want with an inevitable

and perilous loss of authority. #4: Mangers become overly impressed with the widespread meme about Gen Y: that

they expect to change jobs many, many times.

#5: Managers will try to tell, not show, Gen Y worker what to do.

“The bottom line is that Gen Y workers will become

an integral part of the business environment – if

they haven’t already. By adapting to their

expectations – rather than fighting to go back

to the “old ways” – you can make the most out

of their drive, spirit and ingrained skills in

order to reap unprecedented rewards for your

company.”

-Chad Halvorson (CEO, When I Work)