Employers offering a self-insured health plan have additional compliance burdens under the ACA, CAA, HIPAA, and other laws. This session of Newfront Office Hours covers the key additional compliance items that employers must address when offering a self-insured health plan.

Office Hours: Compliance Considerations for Self-Insured Plans

https://pages.newfront.com/WBN2023-04-18OfficeHoursSelf-InsuredPlans_LP-Registration.html

Last year, a fast-growing unicorn Newfront client faced a non-renewal of their D&O insurance program. Their industry had segmented, and they’d faced unexpected management changes. Unfortunately, they were forced to accept an unfavorable replacement program with a significant price increase. Moreover, the underwriter required a retro date inception, forcing the expiring policy into runoff. 

Erik Stenson, Senior Vice President at Newfront, knew there had to be a better solution.

Throughout the next several months, Erik and his team worked closely with the client to improve the company’s risk profile. At the same time, the team identified and worked with underwriters mid-term to prepare for the upcoming renewal. Through the client’s diligent efforts and development under Erik’s advisement, and underwriter commitment to the process, the policy was recently renewed with 3x the limit at the expiring policy cost, enabling the client to achieve the cost-effective, benchmarked-appropriate limit level that they had originally desired. 

It’s stories like these that explain why Erik, a 30-year insurance and InsurTech veteran, was named a 2023 Financial Services Power Broker by Risk & Insurance. 

“Clients appreciate Erik’s refreshing ability to succinctly explain how and why an insurance solution will work for them and the steps required to achieve it,” says Rod Sockolov, EVP of Property & Casualty at Newfront. “Erik values his ability to meet client requests, prioritizing responsiveness, while proactively connecting throughout the year to provide market updates, check on operations, and help them think around corners to avoid surprises.”

Erik has spent his career focusing on venture capital-backed, high-growth, unicorn, and public companies with an emphasis on the FinTech/Crypto/Web3/NFT and Digital Health segments. To always remain an expert in the rapidly changing field, Erik is a quick study comfortable with frame-breaking business models.

“My clients trust Newfront to understand their business, guide them through their program, and create solutions. I have a strict ‘don’t delay, tell it like it is approach,’” Erik says. “I enjoy partnering with and mentoring colleagues to aid in tough risk situations.” 

Congratulations to Erik, along with Shantelle Cabir, Cameron Lock, and John McCall, who were all named to the 2023 Power Brokers program. Additionally, we want to congratulate our other team members that were finalists for the Power Broker designation:

A Risk & Insurance Power Broker® is an individual who stands out among their peers for the exceptional client work they delivered over the past year. While brokers play many key roles in the insurance industry and risk profession, a Power Broker® award recognizes problem solving, customer service and industry knowledge. The Power Broker awards program is a way to broadly recognize and promote outstanding risk management and customer service among the brokerage community.

Power Brokers are selected by risk managers based on the strength of the testimonials they provide to a team of 15 Risk & Insurance editors and writers.

Risk & Insurance recently named Erik Stenson a leading commercial insurance broker.

Meet Erik Stenson, a Newfront 2023 Technology Power Broker

Newfront, the tech-driven insurance brokerage firm based in San Francisco, welcomes Jennifer Wilson as its new Head of Cyber. Recently named by Insurance Business America as one of the top 100 insurance specialists in the country, Wilson will lead cyber coverage negotiation and claims advocacy at Newfront. She will report to Deirdre Finn, Head of Executive Risk. Wilson is joined by Michele Lepper, Jennifer Kelly, Ellie Hughes, and Arturo Perez-Reyes, Cyber Lead Strategist, who joined Newfront in 2022.

"In our evolving economy, every business has cyber exposure and vulnerabilities," said Newfront Chief Commercial Officer John Newell. "Our new colleagues will help our clients stay on the cutting-edge of identifying, understanding, and mitigating cyber risk."

Wilson was named to the prestigious Insurance Business Magazine's Elite Women in Insurance list for 2022. She also recently graduated from the prestigious Chubb and Carnegie Mellon's Cyber COPE Insurance Certification (CCIC) Program and is a regular contributor to the Women in Insurance Global Network. Wilson brings more than 25 years of experience in the industry, primarily in specialty coverage, claims, and risk management. Most recently, she was the National Cyber Claims Leader for HUB and the Cyber Leader for New England.

Jennifer Kelly, Senior Cyber Broker, brings 15 years of experience as an attorney in the insurance industry across cyber, property, and casualty. Michele Lepper, Cyber Claims Advocate and Contract Specialist, has almost 25 years of experience with insurance regulations throughout the country. Ellie Hughes, Cyber Broker, is a rising star in the cyber landscape as she also recently graduated from the CCIC program.

At Newfront, the cyber team will deliver a comprehensive service offering in cyber risk, working with clients to identify and scope cybersecurity threats, guiding them to strengthen cyber defenses, and ensuring policy compliance and eliminating coverage gaps. The team will advocate for clients through its extensive carrier relationships and will lead them in data-driven benchmarking, vendor selection, and negotiating policy terms and conditions.

"There has been tremendous change in the tech and cyber space following the pandemic which brought a great deal of chaos to the industry," said Wilson, who is located in Boston. "The onslaught of ransomware claims has created heightened scrutiny from the underwriters who have implemented stringent IT security protocols on their insureds. I am excited to lead our Cyber Practice, and partner with the cyber ecosystem and our trading partners to best combat, protect, and mitigate our clients' ever-evolving risk."

Wilson's hire is the latest in several high-profile additions for the top 40 brokerage by revenue and bolsters an unmatched female risk practice leadership roster that already includes Wendy Cook, Head of Insurance Placement, Finn, Head of Executive Risk, Frannie Epps, Head of Casualty, and Lauren Pratscher, Head of Casualty Placement. With female-led executive risk, casualty, and cyber practices, Newfront is among the most progressive brokerages in the industry.

MEDIA CONTACTS:
Traci Johnson
Newfront
press@newfront.com 

The San Francisco-based brokerage builds out its strong cyber practice group.

Newfront Welcomes Jennifer Wilson to Lead Expanding Cyber Practice

The San Francisco Office of Labor Standards Enforcement (OLSE) has opened the Health Care Security Ordinance (HCSO) Employer Annual Reporting Form (ARF) website. All covered San Francisco employers must submit the ARF by May 1 (April 30 falls on a Sunday).

The ARF website includes the report covered employers must complete as well instructions, previews, and educational video overviews.

Which Employers are Required to Complete the ARF?

A covered employer is defined as an employer who: 

employed one or more workers within the geographic boundaries of the City and County of San Francisco;

were required to obtain a valid San Francisco business registration certificate pursuant to Article 12 of the Business and Tax Regulations Code, and

employed 20 or more persons worldwide (for profit) or a nonprofit organization that employed 50 or more persons worldwide. 

Note: The ARFs for 2019 (April 2020) and 2020 (April 2021) were cancelled because of the pandemic. It returned to normal schedule for the 2021 ARF last year (April 2022).

Where Can Employers Find Information on the ARF?

The ARF is now available on the HCSO website along with instructions, previews of the reporting entries, and a webinar:

What Information Do Employers Need to Complete the ARF?

Seven digit San Francisco Business Account Number

Total number of employees in each quarter (nationwide)

Number of employees covered by the HCSO in each quarter (only employees who work in SF)

Total health care expenditures made for each quarter of 2022 including:
o   Total quarterly payments for health coverage (medical, dental, vision)
o   Total quarterly contributions to the SF City Option
o   Total quarterly employer contributions to HSAs

Fair Chance Ordinance reporting (related to hiring and employment process for individuals with arrest and conviction records) for the 2022 calendar year: 
o   The number of part-time, temporary, seasonal employees and telecommuters who work within the geographic boundaries of San Francisco
o   Information on whether the employment application forms for San Francisco jobs request arrest or conviction information
o   Information on whether the company conducted background checks on conviction and or arrest records before a live interview (including a telephone interview) 
o   Information on whether the company conducted background checks on conviction and or arrest records before making a conditional offer of employment
o   Number of people hired with a conviction history
o   Indicate whether the company is covered by some aspect of the background check provisions of the FCO.  See the instructions for further information.  

Quarterly Expenditures are Also Due by May 1, 2023

Under the HCSO, Covered Employers with 20 or more employees (50 or more employees for nonprofits) in any quarter are required to make a minimum level of health care expenditures for that quarter for any employees:

Who have been employed by the employer for at least 90 days,

Who have performed at least 8 hours of work in San Francisco,

And who do not meet any of the exemption criteria below. 

For more details: 2023 San Francisco HCSO Expenditure Rates Released.

Don’t Forget about Remote Employees Working in San Francisco

Some employees have returned to the office full time, and others are still working remotely. Employers are not required to make expenditures for any employees who work outside of the geographic boundaries of San Francisco. For any employees who have returned to work part-time in San Francisco, employers will need to track the hours worked in San Francisco for the HCSO spending requirement. Employers still are required to make health care expenditures for any remote employees who live in San Francisco and work from home. 

For more details: SF HCSO Compliance in the Work-From-Home Era.

Which Employees are Exempt or Excluded from Eligibility under the HCSO

There are five categories of exempt employees:

Employees who sign a waiver form and voluntarily waive their right to have employers make Health Care Expenditures for their benefit. 

Employees who qualify as Managers, supervisors or confidential employees AND earn more than the applicable salary exemption amount.

Employees who are covered by Medicare or Tricare.

Employees who are employed by a non-profit corporation as a trainee in a bona fide training program.

Employees who receive health care benefits pursuant to the San Francisco Health Care Accountability Ordinance (HCAO)

For more information on all of the HSCO requirements directly from the City, check out the San Francisco OLSE’s official HSCO website. 

For more information from us, see our Newfront San Francisco Health Care Security Ordinance (HCSO) Guide.

Disclaimer: The intent of this analysis is to provide the recipient with general information regarding the status of, and/or potential concerns related to, the recipient’s current employee benefits issues. This analysis does not necessarily fully address the recipient’s specific issue, and it should not be construed as, nor is it intended to provide, legal advice. Furthermore, this message does not establish an attorney-client relationship. Questions regarding specific issues should be addressed to the person(s) who provide legal advice to the recipient regarding employee benefits issues (e.g., the recipient’s general counsel or an attorney hired by the recipient who specializes in employee benefits law).

Newfront's Karen Hooper covers the Health Care Security Ordinance Employer Annual Reporting Form due date and related topics.

HCSO Employer Annual Reporting Form Due May 1

Health Care Security Ordinance Employer Annual Reporting Form Due May 1

You ‍
deserve ‍

a ‍
better ‍
insurance ‍
experience. ‍

We’re a brokerage built for the 21st century.

At Newfront, we provide
comprehensive risk management
powered by advanced technology
and a client-obsessed culture.

Newfront for Businesses

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Latest Articles

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Meet Erik Stenson, a Newfront 2023 Technology Power Broker

Newfront Welcomes Jennifer Wilson to Lead Expanding Cyber Practice

Office Hours: Compliance Considerations for Self-Insured Plans

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We’re a brokerage built for the 21st century.

Newfront for Businesses

Newfront for Employee Benefits

Newfront for Private Clients

Connect with us.

Latest Articles

Upcoming Event

.css-13o7eu2{display:block;}Meet Erik Stenson, a Newfront 2023 Technology Power Broker

Newfront Welcomes Jennifer Wilson to Lead Expanding Cyber Practice

Office Hours: Compliance Considerations for Self-Insured Plans

You ‍
deserve ‍

a ‍
better ‍
insurance ‍
experience. ‍

Meet Erik Stenson, a Newfront 2023 Technology Power Broker