Speak with an adviser 678.821.3508

START HERE
START HERE
"Workers'
Uncategorized

Offering Group Health Can Affect Workers’ Comp Costs

by Inoventive Solutions
June 29, 2026

Employers who provide group health insurance and wellness programs to their employees tend to have lower overall workers’ compensation costs.

While the programs are separate, employees who have access to preventive care, chronic disease management and wellness resources are often healthier when an injury occurs. This may lead to fewer complications, faster recoveries and lower claim costs.

Studies have found that an employee’s overall health can affect how quickly they recover from a workplace injury. Conditions such as diabetes, hypertension, obesity, depression and substance-use disorders can complicate treatment, slow healing and extend the time an employee remains away from work. Consider the following:

  • The National Council on Compensation Insurance has found that workers’ compensation claims involving comorbidities generate roughly twice the medical costs of similar claims without those conditions.
  • Harbor Health Systems, after reviewing over 7,000 workers’ compensation claims, found that underlying health conditions were associated with longer recovery, more temporary disability days, increased litigation and higher surgery rates.

How health insurance affects workers’ comp costs

Employees with health insurance are generally more likely to schedule annual checkups, undergo preventive screenings, fill prescriptions and seek treatment when medical issues first arise.

That access to care may reduce the severity of chronic conditions before they complicate a workplace injury. Claims involving underlying medical conditions frequently require additional treatment, longer disability periods and more coordination among physicians.

Those factors can increase the likelihood of disputes over treatment, causation or return-to-work decisions, which may contribute to higher litigation costs.

On the other hand, a worker whose diabetes or hypertension is well managed may recover more quickly than someone whose condition has gone untreated.

Access to health insurance may also reduce situations in which employees delay seeking treatment because of cost concerns. And when employees have health coverage for non-work-related illnesses and injuries, there may be less financial pressure to characterize a nonoccupational medical condition as work-related simply to obtain care.

How wellness programs fit in

Employee wellness programs do more than improve overall health. They may also improve workplace safety, which in turn affects workers’ comp claims and costs.

Programs that encourage physical activity, healthy eating, tobacco cessation, stress management and behavioral health support can improve employees’ overall health. Healthy workers are often more aware of their actions and may recover more quickly from workplace injuries.

Telehealth services, employee assistance programs and mental health resources may help employees address health concerns before they become more serious.

Fatigue is another consideration. Employees who are chronically tired, stressed or dealing with unmanaged medical conditions may be more likely to lose focus or make mistakes on the job. Wellness initiatives that promote better sleep, stress reduction and overall health may improve alertness and reduce accident risk.

An investment beyond employee benefits

Many employers view health insurance primarily as a recruitment and retention tool, but it’s really a crucial part of a broader workforce risk management strategy.

Over time, healthier employees may experience fewer workplace injuries, recover more efficiently when accidents occur and generate less costly workers’ compensation claims.

"diabetes"/
Uncategorized

How Employers Can Fight the High Cost of Diabetes

by Inoventive Solutions
June 23, 2026

Diabetes is a devastating illness — and not just for those with the disease. Employers are also shouldering massive and increasing direct and indirect costs due to diabetes.

Diabetes afflicts more than 11% of the adult population, including about 6.3% of full-time workers and 9.1% of part-time workers. 

People with diabetes incur average medical expenditures of about $19,736 annually, with roughly $12,022 directly attributable to the disease, according to the National Institutes of Health. Out-of-pocket costs typically range from $3,300 to $4,600. Costs vary significantly based on whether complications have developed 

Those additional costs also drive group health insurance costs. On top of that, employees who are dealing with diabetes-related complications can also reduce productivity. 

Indirect costs

On average, diabetics miss 5.5 days more of work than other workers, according to Gallup estimates. That adds up to 45 million missed workdays, and productivity costs to U.S. employers of $4 billion.

For employers, these costs may represent just the tip of the iceberg. The Centers for Disease Control estimates that more than 114 million adults in the U.S. — a third of the workforce — have undiagnosed diabetes or prediabetes. 

What can employers do?

With so much at stake, a robust workplace program to fight diabetes can generate a significant return on investment. 

The American Diabetes Association estimates that preventing or delaying the onset of diabetes in just one prediabetic employee can generate more than $50,000 in direct and indirect cost savings over five years.

The CDC recommends that employers design wellness programs that specifically target improvements in the following areas: 

  • Exercise and activity levels
  • Smoking cessation
  • Hypertension reduction
  • Blood cholesterol reduction
  • High blood glucose reduction
  • Weight/obesity

There also are a number of measures employers can take to help mitigate some of the costs to the organization.

Offer ongoing counseling with professional dieticians. Employees who regularly meet with dieticians who can help them set small, manageable goals for themselves, make significant and measurable health improvements, according to the HCCI. The research found that they lost 5.5% of their body weight and reduced blood glucose levels. 

Start a walking club. The American Diabetes Association’s “Stop Diabetes @ Work” program recommends that employers encourage company walking clubs to attend diabetes walk-a-thons like “Step Out: Walk to Cure Diabetes,” or host a community “Walk to Cure Diabetes.”

You can find resources, including posters, articles, training plans and walking guides, at www.diabetes.org.

Encourage self-assessment and screening. According to the CDC, 30% of people with diabetes aren’t even aware of it. Workplace screenings are easy and effective. Many employers provide incentives for workers to participate via reduced insurance copays, or even cash payments. 

All screenings should be confidential and employers should not penalize employees who have diabetes, as this could violate the Americans with Disabilities Act. 

Encourage smokers to quit. Diabetics who smoke have far higher medical costs on average than non-smoking diabetics or non-diabetic smokers. Discouraging tobacco use can pay off in the long run.

"lifestyle
Uncategorized

Lifestyle Spending Accounts Gain Traction as Employers Seek Flexible Benefits

by Inoventive Solutions
June 16, 2026

As employers continue looking for ways to support a multigenerational workforce with diverse needs, lifestyle spending accounts are emerging as a popular addition to employee benefits programs. 

Originally viewed as an extension of wellness programs, LSAs are broader and more flexible. Rather than focusing solely on fitness or preventive care, these employer-funded accounts allow workers to use allocated funds for services tied to physical, emotional, financial and personal well-being.

For human resources and benefits managers, the appeal lies in personalization. Workers at different life stages often value different forms of support.

How LSAs work

An LSA is generally funded entirely by the employer. The company determines how much employees receive annually and what expenses qualify for reimbursement.

Unlike health savings accounts or flexible spending accounts, LSAs are not governed by strict federal rules that limit eligible expenses. That gives employers significant flexibility in designing programs that align with workforce needs and company culture.

Employers may structure the benefit as a yearly allowance or monthly stipend. Employees typically submit receipts or proof of purchase through a reimbursement platform administered internally or by a third-party vendor.

Eligible expenses vary widely by employer, but common categories include:

  • Gym memberships, fitness classes and exercise equipment
  • Mental health apps, meditation subscriptions and life coaching
  • Financial planning, tax preparation and student loan assistance
  • Childcare, elder care and fertility-related services
  • Professional development courses and certifications
  • Nutrition counseling and wellness coaching
  • Home office equipment or commuting costs

Some employers also create broad “lifestyle” categories that allow employees to choose expenses they believe improve their well-being.

Advantages for employers

One of the primary advantages of LSAs is flexibility. Traditional benefits programs often take a one-size-fits-all approach, while LSAs allow staff to select benefits that matter to them.

Employers may also see advantages in recruitment and retention as workers increasingly evaluate employers based on overall well-being support. Offering flexible benefits can demonstrate that a company understands the varied pressures employees face inside and outside work.

One bonus for employers is that they only pay when an employee submits a reimbursement request for an approved expense. Many workers may never use the plan, and some may not use the full amount allocated to their account.

Administrative complexity may also be lower than that of tax-advantaged accounts because LSAs generally involve less regulatory compliance.

Potential drawbacks

Despite their flexibility, LSAs come with challenges:

  • Because the accounts are taxable, employees generally must pay income taxes on reimbursements they receive. Employers must also decide how the benefit will be taxed and reported through payroll.
  • Cost control can also become an issue if programs are not carefully structured. Employers need clear guidelines on eligible expenses, reimbursement limits and documentation requirements.
  • Another challenge is communication. Employees may not fully understand how the program works or what qualifies for reimbursement. Without education and regular reminders, participation rates may lag.

Regardless, LSAs are increasingly being viewed as a way to provide more personalized employee support that complements traditional health and wellness benefits.

"high-cost
Uncategorized

Stop-Loss Insurers Increasingly ‘Lasering’ High-Cost Claimants

by Inoventive Solutions
June 9, 2026

As million-dollar health insurance claims continue to surge, stop-loss insurers that provide excess coverage for self-insured employers are increasingly using a controversial underwriting tactic to limit coverage for high-cost claimants.

The tactic, called “lasering,” entails applying a higher deductible or exclusion to a specific individual or condition, like heart failure or cancer. Instead of the normal attachment point applying uniformly across the group, the insurer carves out higher-risk individuals and shifts more financial responsibility back to the employer.

The trend is accelerating as more employees and dependents generate extremely costly claims tied to cancer treatments, specialty drugs, complex surgeries and chronic illnesses. According to a recent analysis by Sun Life, claims exceeding $1 million increased 29% between 2024 and 2025 and have surged 61% over the last four years.

That growth is reshaping the stop-loss market and creating new challenges for employers that self-fund their health plans.

How lasering works

Under a traditional stop-loss arrangement, an employer may absorb the first $100,000 or $150,000 of an employee’s claims before stop-loss coverage begins reimbursing expenses above that threshold. The stop-loss carrier reimburses the employer’s plan, not the employee.

But with lasering, a stop-loss carrier may impose a $500,000 deductible on an employee undergoing cancer treatment, instead of the same attachment point used for all other workers on the plan.

There are several types of stop-loss lasers:

Standard lasers — Apply a higher attachment point to all claims associated with a specific individual.

Contingent lasers — Apply only to claims tied to a specific diagnosis or condition, such as cancer or diabetes.

Limited contract basis lasers — Restrict the time frame during which certain claims are covered.

Exclusion lasers — Remove a specific individual from stop-loss coverage entirely.

What’s behind the trend

Stop-loss carriers say the growing use of lasering is being driven by rising claims severity and improved predictive analytics.

Advanced claims modeling tools now allow insurers to analyze medical histories, pharmacy utilization and treatment trends with far greater precision. As a result, insurers are requesting more detailed claims information during underwriting and using that data to identify participants likely to generate catastrophic claims.

Employer effects

For employers, lasering may reduce stop-loss premiums, but it can also create substantial financial risks if a lasered employee incurs major expenses. Employers may unexpectedly assume hundreds of thousands of dollars in additional costs for a single claimant.

As a result, some self-insured employers may have to set aside more in reserves and consider increasing employee cost-sharing to account for the added risk.

Also, employers and brokers are increasingly negotiating for “no new laser” provisions during renewals. These provisions limit an insurer’s ability to add new lasers during or after renewal based on emerging claims.

There are other ways to prevent or reduce the need for a laser. We can help you understand your options, workforce demographics, medical claims history and potential financial liability.

"HSA"/
Uncategorized

2027 HSA Contribution, HDHP Cost-Sharing Limits

by Inoventive Solutions
June 2, 2026

The IRS has announced slightly higher health savings account contribution limits for 2027, with the limit increasing 2.3% for individual HSA plans.

The IRS updates HSA contribution limits annually, along with minimum deductibles and out-of-pocket maximums for high-deductible health plans. HSAs help employees save for medical expenses and are only available to those enrolled in qualified HDHPs.

Understanding these amounts now can help you get an early start on human resources planning for next year.

Here are the changes coming in 2027:

HSA annual contribution limit

Plan2027 limit2026 limit
Self-only$4,500$4,400
Family$9,000$8,750
Catch-up contribution (for aged 55 and older)$,1000$,1000

HDHP minimum annual deductible

Plan2027 limit2026 limit
Individual$1,750$1,700
Family$3,500$3,400

HDHP annual out-of-pocket maximum

Plan2027 limit2026 limit
Individual$8,700$8,500
Family$17,400$17,000
Maximum employer excepted-benefit HRA contribution$2,250$2,200

What to do

If you sponsor an HDHP for your staff, review the plan’s minimum deductible and out-of-pocket maximum when preparing for the 2027 plan year.

If you allow employees to make pre-tax contributions to an HSA, you should also update your plan communications to reflect the new amounts.

The many benefits of HSAs

An HSA is a special bank account for your employees’ eligible health care costs. They can contribute to their HSA through pre-tax payroll deductions, deposits or transfers. As the balance grows over time, they can continue to save it or spend it on eligible medical expenses.

Employers can also contribute to the accounts, but the annual contribution limit applies to all employee and employer contributions combined.

The money in the HSA belongs to the employee and is theirs to keep, even if they switch jobs. If their new employer offers qualified HDHPs, they can continue to fund the account.

Funds roll over from year to year and can earn interest. Many plans also have investment options to help savers grow the account further.

There are several benefits for employees who have an HSA:

  • The money an employee contributes to an HSA is not subject to income taxes, which reduces their overall taxable income.
  • They are not taxed on withdrawals.
  • If employees contribute to their HSA with after-tax money, they can deduct their contributions on Form 1040 at tax time.
  • Employees can tap the funds for any approved out-of-pocket medical expenses.
  • They can also grow the account tax-free by investing the funds, like a nest egg for medical expenses in retirement.

HSA-eligible expenses

  • Payments for services or medicine that count toward health plan deductibles, copayments or coinsurance.
  • Dental or vision care, including orthodontics, eye exams and corrective lenses.
  • Medical devices.
  • Certain over-the-counter medicines, such as pain relievers, allergy medication, cold and flu medicine or menstrual products.
  • Vitamins and health supplements, if recommended by a medical or health professional to treat or prevent a specific disease or condition.
Recent Posts
Recent Comments
    Archives
    Categories
    Meta