America's Benefit Specialist December 2023

• Identify any potential synergies with the acquiring compa ny in terms of cross-sell or additional tools and resources to strengthen relationships. • Consider the impact of market trends and external factors on the target’s business. CULTURAL DUE DILIGENCE • During the process, the buyer will continue to assess the cultural compatibility between the acquiring and target companies. • Identify potential cultural clashes and integration challenges. significant uptick suggests that ICHRAs are being viewed as successful tools to advance health equity and connect more American workers with health plans that cover a wide range of care options. Lifestyle Spending Accounts emerged in the early 2000s, evolving from a focus on fitness benefits to a broader array of options. These employer-funded accounts are designed to support the physical, mental and financial wellness of em ployees, covering expenses that traditional benefits might not, like gym memberships, wellness programs and person al-development courses. LSAs are classified as taxable income for employees when used, but their flexibility is a significant draw. They allow em ployers to create personalized benefit programs, reflecting a company’s culture and values, and addressing the diverse needs of their workforce. Continued from page 5

• Gauge employee-retention risks during the merger or acquisition. • Develop a plan for cultural integration and change man agement. The specific details and depth of diligence will vary based on the size and complexity of the transaction. Professional guidance through the diligence process can save an inordi nate amount of time and stress, and reduce your risks of a deal not closing. If you’d like to talk more about your company’s diligence readiness, or to get a complementary valuation, please con tact me at 404-992-5541 or Brett@rosenadvisory.com.

THE LATEST IN ACCOUNT-BASED PLANS

In 2023, a study revealed that 75% of large employers (with more than 1,500 employees) offer LSAs, a substantial increase

from 40% the previous year. PROJECTION FOR 2024

As the IRS continues to adjust contribution limits in response to inflation, we can expect to see a continuation of this trend in 2024, with increasing contribution limits across all account types. Additionally, with the ongoing interest in HSAs as wealth-building tools, their growth is likely to persist. 1 www.grantthornton.com/insights/newsletters/tax/2023/hot-top ics/jun-06/irs-provides-2024-hsa-hra-inflation-adjustments 2 www.peoplekeep.com/press/new-report-from-peoplekeep-high lights-ichra

COMPARING HIPAA AND NIST

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Depth and Breadth: HIPAA focuses on ePHI, with specific standards for healthcare-related entities. NIST offers com prehensive information security guidelines, beneficial for developing robust data security strategies. Flexibility: HIPAA offers some flexibility, but its standards are legally mandated for those handling ePHI. NIST provides a more flexible approach, allowing adaptation to specific organizational contexts. Enforcement: HIPAA is overseen by the Department of Health and Human Services’ Office for Civil Rights. NIST is en forced through contractual obligations with the Department of Defense and Department of Commerce.

In summary, while both are crucial for data security and privacy, health insurance agents must prioritize HIPAA compliance due to its direct applicability and legal mandate in handling ePHI. Understanding NIST can further enhance an agent’s approach to data security, complementing HIPAA requirements.

If you have specific questions about HIPAA or cybersecurity, email info@totalhipaa.com or book an appointment through www.totalhipaa.com/get-started.

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