Winter 2023 Issue

News

Winter 2023 Issue

Long-term care insurance – but what if I don’t need it?

By Tom Strangstalien, Insurance Advisor

We all know the risks of a long-term care event devastating our family’s finances as well as our mental and personal well-being. Roughly half of those who reach the age of 65 will require some form of long-term care assistance during their lifetime.

Read more…

Rising health insurance premiums

By Chris Noffke, GBDS, CSFS, Vice President of Employee Benefits

Health insurance premiums are constantly on the rise. According to the Centers for Medicare & Medicaid Services, “U.S. health care spending grew 2.7 percent in 2021, reaching $4.3 trillion or $12,914 per person.” Everyone from employees to employers are feeling the squeeze of high-cost premiums.

Read more…

Exercise your financial muscles to get financially fit

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

“Those who work their land will have abundant food, but those who chase fantasies have no sense.” This ancient advice from Proverbs illustrates the importance of financial fitness.

Read More…

Medicare questions to ask

By Mary Krueger, Medicare Specialist

Before enrolling in Medicare, there are several decisions Medicare recipients need to make regarding their existing coverages or changes in their health insurance needs.

Read More…

Small business claims that can be surprisingly expensive

By Society Insurance Human Resources, reposted with permission from Society Insurance

While running a small business, there’s a decent chance that throughout its course you’ll have to file some sort of insurance claim (often unexpectedly). Whether due to fire, theft, on-site injury or other incident, some experts estimate that 75% of small businesses faced an insurance-worthy incident just last year.

Read more…

Long-term care insurance – but what if I don’t need it?

Tom Strangstalien

By Tom Strangstalien, Insurance Advisor

We all know the risks of a long-term care event devastating our family’s finances as well as our mental and personal well-being. Roughly half of those who reach the age of 65 will require some form of long-term care assistance during their lifetime. What this means for a married couple is likely one of them will incur costs for long-term care. Because of the astronomical odds, the cost of long-term care insurance is certainly not inexpensive.

Despite the odds, the biggest objection that I receive when formulating a plan for one of our members when it comes to long-term protection is, “If I don’t use it all the money that I spent will be wasted.” Plus, we’re all invincible superheroes anyway, right? “It will never happen to me, so I’ll just save and invest the money and take my chances.” Thankfully, with the evolution of long-term care planning over the past few years, there is another alternative that makes a great deal of sense!

The life insurance industry has existed much longer than long-term care insurance. Actuaries, as it pertains to life insurance, have these statistics down to microscopic precision in calculating how long on average a person will live and what sums of monies will be paid out and when. When it comes to long-term care, this really isn’t the case, and is in part why the costs of protection are high. As consumers of life insurance, we also know that without a doubt the benefits will be paid out, and what we have paid for the benefits. In addition, we have the added benefit that the proceeds will likely be income tax free.

Are you aware that there are now policies where some or all of the life insurance benefits can now be utilized for costs incurred for long-term care while you are alive? And on a tax advantaged basis? All proceeds of the policy will be paid either in the form of long-term care protection or a life insurance benefit to named beneficiaries. If the policy is in force, the money is guaranteed to never be wasted!

These policies can also involve some dual planning, such as a charitable gift or estate planning scenarios if the proceeds are paid out in the form of a life insurance benefit. Lastly, these plans are priced attractively, as actuaries know exactly what benefits will be paid out and on average when.

I am a big advocate of this relatively new concept in planning for long-term care. If you haven’t addressed long-term care as part of your overall financial portrait, I would encourage you to promptly do so. You may be very pleasantly surprised by the cost to benefits ratio! At WisMed Assure, we are always here to help!

Reach out to me and my team at WisMed Assure at insurance@wismedassure.org, complete this quick online form or call 608.442.3810.

Medicare questions to ask

By Mary Krueger, Medicare Specialist

Before enrolling in Medicare, there are several decisions Medicare recipients need to make regarding their existing coverages or changes in their health insurance needs.

Typically, six months prior to becoming eligible (eligibility for Medicare may be because of disability or turning 65), it is a good idea to speak with a Medicare Specialist to establish an open dialog about what you want in your benefits and how much of your budget to designate for it.

Here are a few questions:

  • Will I be in a network or have the freedom to choose where I go?
  • What are the benefits of choosing a Medicare Advantage or a Medicare Supplement?
  • Who will help me if I have a claim and don’t understand the billing?
  • Will I need to get preauthorization for my surgery?

These are a few of the concerns that are voiced regularly. Medicare has been providing coverage since 1965. Plans have changed over the years and so have the benefits, which is why it makes sense to have someone who can walk you through these and many other issues with Medicare.

I have enjoyed helping in those decisions for more than 40 years, and it is my pleasure to assist in the decisions Medicare recipients make. Contact me at 715.760.1350 or mary.krueger@wismedassure.org.

Rising health insurance premiums

By Chris Noffke, GBDS, CSFS, Vice President of Employee Benefits

Chris Noffke

Health insurance premiums are constantly on the rise. According to the Centers for Medicare & Medicaid Services, “U.S. health care spending grew 2.7 percent in 2021, reaching $4.3 trillion or $12,914 per person.” Everyone from employees to employers are feeling the squeeze of high-cost premiums. As rising premiums keep employers frustrated, benefits-users are also enduring less and less being paid by insurance. Business owners are having to make decisions like sacrificing benefits to save money on premiums to afford higher wages. Many employers are asking if they should self-fund. 

Having a really big company with lots of the employees covered by the health plan means these employers have more money being paid into the premium pools – the basic rule of large numbers. In Wisconsin, any group with more than 50 employees is considered a large group and is not qualified for the Affordable Care Act marketplace plans. While companies with as few employees as 50 may qualify for a self-funded benefit, it could also be a liability that causes a business bankruptcy. An employer can hedge their premium dollars against only having a few high-cost health care claims per year. These same strategies don’t work for smaller companies, because they may not have many employees enrolled in the health plan (especially if the employer contributions are too low) which means they have even fewer premium dollars to cover when their work family does have a high-cost claimant(s).

For example, if a smaller group (50 employees for this scenario) has a high-cost claimant who costs $50,000 a year, that means a lot of your collected premiums are needed just to cover this one claimant. Assuming an average employee premium of $1,000 a month per employee (averaging employee and family), your employer premiums are $50,000 a month ($600,000 a year). That means one employee used one-twelfth of your premium funds.

In our example we have only covered $50,000 in claims and we still have 49 remaining insureds who may each spend the $12,914 average. The math, 49 persons at $12,000 means $588,000 potential you may have to pay. This is not yet taking into account that there are multiple people in your employee’s families who may have claims.

It is not just claims you pay for when you are self-funded, you are also responsible to pay for a selected insurance company or third party administer (TPA) to process your groups’ claims, your use of a network for discounts, a pharmacy benefit manager, stop loss insurance, Patient-Centered Outcomes Research Institute (PCORI), terminal liabilities, aggregate accommodations and other administrative costs just to name a few.  This all may not make sense yet or it might sound like another language. Just let me know and we can talk. Give me a call at 608.442.3734. While true self-funding may not be the best answer for your company, utilizing strategies, other funding arrangements and even our association health plan may be a solution.

Exercise your financial muscles to get financially fit

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

Mark Ziety

“Those who work their land will have abundant food, but those who chase fantasies have no sense.” This ancient advice from Proverbs illustrates the importance of financial fitness.

There are many ways to gain control of your finances; you can increase earnings, decrease spending, start saving more (short-term and longer-term) and implement debt management. For many, earnings are difficult to influence in the short-term, so tackling the spending side of the equation will yield the quickest results. Below we consider six principles that will help you get into financially fit shape wherever you find yourself in life.

Six principles for financial fitness

 “An investment in knowledge pays the best interest.”—Benjamin Franklin

  • Set goals. If you don’t have concrete financial goals, both short and long term, reaching some kind of level of financial fitness becomes much more problematic. Simply put, you don’t have a destination. You are financially adrift. As George Harrison has noted, “If you don’t know where you’re going, any road will take you there.”

Short-term goals you might consider: Establishing an emergency fund with three to six months of cash or saving for a vacation, a car or a down payment on a home. Long-term goals: college savings for your kids and saving for retirement—at least 15%.

  • Know which of the four buckets your income lands in. Use the four Fs: Fixed, Future, “Ph”ilanthropy and Fun.
    • Fixed are your survival expenses like housing, utilities, groceries and transportation. It is not recurring subscriptions each month – those belong in the Fun category.
    • Future is often retirement savings, but shorter-term goals like paying cash for a vehicle or college expenses for kids belong here too.
    • A financially fit person has extra to help those in need, so Philanthropy is one of the four buckets.
    • Fun rounds out the buckets and is self-explanatory.
  • Your lifestyle shouldn’t exceed your income. If it does, you are burning through savings or taking on debt, and your stress level will reflect it.

Excessive spending leads to financial stress rather than financial fitness. You want financial space in your life. You want ‘money at the end of the month,’ not ‘month at the end of your money.’

  • Invest wisely. The proper mix of investments will be influenced by your financial goals, both short and long term, and other various factors. A diversified portfolio that crosses the spectrum can reduce risk and enhance your return over the long run.

“Don’t look for the needle in the haystack. Just buy the haystack!” advises John Bogle, founder of Vanguard. In other words, diversify!

We are here to assist you with that. Our recommendations are tailored to your financial goals and your unique circumstances. Accumulation of wealth over a longer period is our goal. We believe it should be yours, too.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas,” says Paul Samuelson, the first American to win the Nobel prize in economics.

  • Enjoy your retirement. Many enter retirement after accumulating wealth over decades. They have learned how to save. For some, suddenly relying on that savings rather than earning income from labor seems like a daunting leap, one they may be ill-prepared to make. It doesn’t have to be that way.

While your tolerance for risk (losing money) may change, we might recommend a portfolio that allows for a degree of growth and a spending rate that ensures your finances last longer than your retirement.

  • Protect your assets. Do you have life insurance, health insurance and personal liability insurance? Do you have a will and estate plan? Who are your beneficiaries? What happens if you become disabled? Do you have a trusted advisor to handle your affairs?

If you own your home without a mortgage, do you have homeowners’ insurance? Surprise, not all do. If you rent, renters’ insurance is cheap. It’s a must-have protection.

Absorbing the fundamentals—the foundation for success

Every situation is unique. You may have mastered the fundamentals, and only need to apply the principles we highlighted selectively, plugging small holes and shoring up your finances. Or a more aggressive approach might be in order. Focus on one theme at a time. Some might apply, while others don’t.  

Having said all that, you are not alone on a financial lifeboat. We are always here to assist.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Fall 2022 Issue

Affordability testing

By Chris Noffke, GBDS, CSFS, Vice President of Employee Benefits

The Affordable Care Act (ACA) brought a lot of extra work to employers and insurance companies. Whether you are pro-health care reform or against it, per the Health Affairs article, the ACA has not made insurance more affordable.

Read more…

Don’t forget to call your mom – and your insurance agent

By WisMed Assure Service Team

With the intention of easing administrative burden for WisMed Assure client physicians, several of our Medical Professional Liability carriers have significantly reduced or suspended asking for renewal applications over the past few years. While this does save time, renewal applications were an opportunity to touch base, review and discuss any changes to your practice that could impact your premium or coverage.

Read More…

Year-end tax planning for 2022

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Want to put thousands of dollars back into your pocket? Who doesn’t. Choices you make during your employer’s open enrollment period and for year-end tax planning can really add up.

Read More…

Graded premium disability? Yes, you can!

By Tom Strangstalien, Insurance Advisor

I recently worked with a young physician to set him up with personal disability protection to provide some financial security if life throws him and his family a curve ball. Prompting our planning was that one of his peers in the general surgery specialty sustained a serious hand injury, ending his ability to perform hands-on surgery.

Read more…

5 ways to develop inclusive hiring practices

By Society Insurance Human Resources, reposted with permission from Society Insurance

Inclusive hiring practices recognize diversity and embrace a wide range of perspectives that candidates from all walks of life bring to the organization. And according to research from Monster, “Four in five (86%) candidates globally say diversity, equity and inclusion in the workplace is important to them.”

Read more…

5 Ways to develop inclusive hiring practices

By Society Insurance Human Resources, reposted with permission from Society Insurance

Inclusive hiring practices recognize diversity and embrace a wide range of perspectives that candidates from all walks of life bring to the organization. And according to research from Monster, “Four in five (86%) candidates globally say diversity, equity and inclusion in the workplace is important to them.”

Below we delve into why it’s important to address in the workplace and several tactics your business can work towards implementing to achieve more inclusive hiring practices.

Why is Inclusive Hiring Important?

  • Organizations that recognize diversity and the fresh perspectives of their employees typically outperform organizations that don’t.
  • Workplace discrimination is illegal and building a strong foundation of inclusive hiring practices and updating those with the times can mitigate potential risk to your business.
  • Not employing inclusive hiring practices can damage your reputation and open you up to a host of new problems.

Inclusive hiring practices help to level the playing field for all who apply—combating bias and discrimination. Read, ‘7 Tips: How to Build Company Culture.’

How to Build a More Inclusive Hiring Program

 1. Write Inclusive Job Descriptions

In order to attract diverse talent, you need to make it obvious that you’re trying to do so. This starts with the job descriptions.

  • Use local language
  • Avoid gendered language (eg. use “you” instead of “he/she”)
  • Ensure easy legibility — don’t use complex phrases, keep verbiage easy to understand
  • Use fonts that allow for people with disorders such as dyslexia to easily read and comprehend the description

2. Widen Your Search

If the same types of people apply for your jobs, you may need to widen your search and evaluate where you are posting jobs. Note: sometimes niche jobs require particular skills, so this may be harder to achieve.

  • Advertise in many different places
  • Try recruiting from new college campuses
  • Post your job descriptions on a variety of social platforms
  • Try new ways and news outlets to attract talent rather than relying on the same job board every time

3. Make Your Website Inclusive

  • Include actual pictures of your team instead of stock photos
  • List job descriptions in multiple languages if applicable to your locale
  • Use dyslexia-friendly fonts
  • Implement website accessibility software to make web browsing easy (or indeed possible at all) for disabled people

4. Conduct Inclusive Interviews

  • Include a diverse panel of interviewers if possible
  • A diverse panel can reduce bias and highlight your company’s diversity to the candidate, potentially easing their nerves
  • Avoid using internal slang, acronyms or jargon during an interview

5. Develop Inclusive Company Culture

  • Hiring inclusively is great, but retaining it is just as important
  • Explicitly express that diversity in workforce is a goal and that it’s always considered with new hires
  • Top-down culture: have an empathetic leadership team that understands there are different hurdles for different workers
  • Inclusion is ongoing, not a one-and-done training session
  • Managers should ask each individual employee what they can do to help them thrive

Please reach out to the WisMed Assure team at insurance@wismedassure.org, complete this online form or call 608.442.3810 to explore employee benefits and other insurance options.

Reposted with permission from Society Insurance

Graded premium disability? Yes, you can!

Tom Strangstalien

By Tom Strangstalien, Insurance Advisor

I recently worked with a young physician to set him up with personal disability protection to provide some financial security if life throws him and his family a curve ball. Prompting our planning was that one of his peers in the general surgery specialty sustained a serious hand injury, ending his ability to perform hands-on surgery.

He didn’t have personal disability protection, and although his group benefits offered some benefits, it fell well short of what he envisioned for himself and his family of four. Though he had looked into coverage in the past, he thought that it was too expensive at this point in his career. Why not wait until his income was more substantial and coverage was more affordable? Unfortunately, waiting changed his financial world forever.

Perhaps if our physician member had explored graded premium disability insurance, he would have elected to purchase the protection at a very affordable price, thereby protecting his income throughout his lifetime.

So, what is graded premium disability insurance? The premise is that as your income increases, your premium increases. Premiums start out at a much lower price early in your career, compared to traditional level premium coverage. Each year, premiums will increase slightly. When you’re on a tighter budget, it enables you to put the amount of coverage needed in place, and it can never be taken away. Making graded premium disability coverage more beneficial is that you can elect to lock in your premiums at any time you choose! In other words, you can convert to a level premium policy when your income and budget allows you to do so.

When I work with our residents, fellows and young physicians, we always look at graded premium plans as an option. We almost always package this with a future insurability option, so you are guaranteed to increase your benefits in the future, with no medical underwriting, as your income increases. You are able to put disability protection in place by using a graded premium plan, where you otherwise wouldn’t be able to do so. You always want to acquire the most coverage you can, and as early in your career as possible!

As a young member in the medical profession, don’t make the mistake of assuming your budget does not allow you to purchase disability protection. Yes, you can! Life happens and it truly throws us curveballs. Reach out to me and my team at WisMed Assure at insurance@wismedassure.org, complete this quick online form or call 608.442.3810, and let’s determine if a graded premium disability plan can protect your financial world!

Don’t forget to call your mom, and your insurance agent

By WisMed Assure Service Team

With the intention of easing administrative burden for WisMed Assure client physicians, several of our Medical Professional Liability (MPL) carriers have significantly reduced or suspended asking for renewal applications over the past few years. While this does save time, renewal applications were an opportunity to touch base, review and discuss any changes to your practice that could impact your premium or coverage.

Please contact WisMed Assure if any of the following changes have occurred or are anticipated in your practice:

  • Have any health care professionals changed practice procedures, such as added or reduced surgical procedures?
  • Have you contracted with any independent health care professionals to provide services?
  • Are any physicians changing their practice hours? How many hours per week are they working now? 
  • Have you added or changed your use of telemedicine? 
  • If you are a Wisconsin Medical Society Member with Medical Professional Liability coverage through ProAssurance, you can earn premium credit on your renewal by completing their online risk management coursework. If you are not a member and would like to become one, please let us know.

Contact your agent or insurance@wismedassure.org 608.442.3810 with any questions or changes to your practice.

WisMed Assure is the Wisconsin Medical Society’s insurance agency – profits earned support the mission of the Medical Society.