Newfront, the tech-driven insurance brokerage firm, has been named the 2023 winner of the San Francisco Business Times’ Corporate Pride award. This honor recognizes one Bay Area-based company that consistently goes above and beyond in advancing LGBTQ+ equality in the workplace and community.

“This fabulous news is a well-deserved acknowledgement of the inclusive environment at Newfront and the hard work of emerge, our LGBTQ+-focused employee resource group,” said Newfront Executive Vice President and Southwest Market Leader Linde Hotchkiss, who serves as executive sponsor for the group. 

From its inception in 2021, emerge has aimed to provide a safe workplace for LGBTQ+ colleagues, family members, and allies by promoting positive work alliance and diversity in talent acquisition and vendor selection. In 2022, the group’s Pride Month programming for Newfront team members included sessions from the Equality Institute and Mercury Stardust, the Trans Handy Ma’am. Newfront’s programming for Pride Month 2023 features a fireside chat with transgender drag entertainer Paris Sukomi Max, allyship and family training courses, and a glam session hosted by Elijah Alexx. 

Newfront will be honored at a reception next week, along with 13 Bay Area leaders recognized for making a difference in the business world. See the full list of honorees at https://www.bizjournals.com/sanfrancisco/event/169231/2023/the-business-of-pride.  

To learn more about Newfront, visit: https://www.newfront.com/.

Newfront is transforming the delivery of risk management, employee experience, insurance, and retirement solutions by building the modern insurance platform. Transparent data delivered real-time translates into a lower total cost of risk and greater insights. Newfront makes insurance work for you. Headquartered in San Francisco, Newfront has offices throughout the country and is home to more than 800 employees who serve clients across the United States and globally.

Newfront has been named the 2023 winner of the San Francisco Business Times’ Corporate Pride award. This honor recognizes one Bay Area-based company that consistently goes above and beyond in advancing LGBTQ+ equality in the workplace and community.

Newfront Named 2023 Winner of San Francisco Business Times Corporate Pride Award

Research shows that more than 70 percent of Asian American, Native Hawaiian, and Pacific Islanders (AANHPI) believe they are expected to care for their parents—which can cause a financial toll in addition to emotional stress. As AANHPI Heritage Month wraps up, we take a look at what this responsibility means for members of the AANHPI community and tips on how best to prepare.

Caring for aging family members is a common scenario in many cultures, especially as our demographics continue to shift worldwide, but AANHPI individuals may feel more obligated due to a strong commitment to extended family. They are also more likely to experience income equality, costly living due to greater concentration in urban areas, and high spending on children and education.  

From housing to daily tasks, the circumstances around the care of a parent or another family member all carry costs, including mental energy, time, and financial sacrifice. Medical care can add up exponentially, impacting desired generational wealth in the AANHPI community. While these discussions are difficult, the best way to ensure a healthy outcome for all is to be prepared. Here are five tips:

1. Organize the financial picture: Before outlining a plan, collect any and all financial information for both the caregiver (you) and the relative. This should include bank account statements, savings accounts, retirement accounts, insurance coverage, and social security information, to name a few. Reviewing all of the pertinent details will help paint a picture to increase awareness for both parties and give you a path forward.

2. Work to solve any gaps: Armed with the financial landscape, next, you can identify what areas of opportunity exist. This evaluation can include reducing spending and increasing savings to address immediate cash needs with an emergency fund, working to pay down debt, or evaluating the current protection plan with insurance needs (discussed below). Improving areas of weakness can help put guardrails in the overall financial plan to prevent catastrophe and aid in your ability to care for loved ones.

A brief note on a protection plan, which is a critical component of any financial strategy and is even more important when planning to care for loved ones: Your approach should expand beyond adequate coverage for the home, automobile, and personal items, also covering life and disability insurance.

In the event of premature death, or, more likely—long-term disability—you may find insufficient income or assets to support loved ones. Review the benefits available through your employer; disability and life insurance are standard in employee benefits packages. You might also consider working with an insurance agent to help with this decision-making. Aim to have at least 60 percent income replacement on both short and long-term disability, and take into consideration future income, debt payments, potential college expenses, and potential burial costs for life insurance.

3. Ensure you and your elder loved ones have an estate plan set up: Similar to an insurance plan, an estate plan is another element that can create a lot of hassle if not set up properly. Fundamentally, an estate plan ensures assets are going to the correct persons and places upon passing. However, it is much more than that.

Most are familiar with the Last Will and Testament, which outlines your final wishes, but it is also important to account for things like financial powers of attorney and healthcare surrogates, including a living will. This helps create stop gaps in the event your elder loved ones become incapacitated and are unable to make decisions. The last thing you or your loved one would want is to leave decision-making up to the courts.

4. Exercise good investing habits: This is true during any phase of financial life, but there is greater emphasis when considering caring for loved ones in the future. You want to have sufficient assets to help cover your retirement, and you may also need to account for additional expenses beyond that if caring for loved ones. Aim to have a well-diversified investment portfolio to help minimize investment risk and maximize return.

5. Consider working with a professional: Each of the actions outlined above are challenging to accomplish, especially on your own. Consider working with professionals like CFP®s, CPAs, estate planning attorneys, and insurance agents to help you along the way. Though members of the AANHPI community tend to be self-reliant and lifelong learners, collaborating with a professional can help you identify unexpected areas of growth and opportunities.

Taking care of a loved one is no small task and is something that should be properly planned for. Consider speaking with your elder loved ones about the possibility of caregiving and lay out expectations. Ensuring everyone is on the same page can go a long way in your efforts to care for your AANHPI loved ones.

The author is not a member of the AANHPI community and does not have firsthand knowledge or understanding of the social or economic challenges faced. This blog is purely based on research and we recognize that this does not address every financial challenge faced by those who identify as AANHPI.

Newfront Retirement Services, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration as an investment adviser does not imply any level of skill or training, and does not constitute an endorsement by the SEC. For a copy of Newfront Retirement Services disclosure brochure, which includes a description of the firm’s services and fees, please access www.investor.gov or click HERE for the disclosures on our website.

AANHPI and Finances: Five ways to prepare for the care of aging family members

The IRS has released IRS Notice 2022-59 providing the adjusted $3.00 Patient-Centered Outcomes Research Institute (PCORI) fee per covered individual for health plan years ending on or after October 1, 2022 and before October 1, 2023, which includes 2022 calendar plan years. The fee has increased $0.21 per covered individual from last year (from $2.79). 

The annual PCORI fee must be reported and paid to the IRS by July 31, 2023 via the second quarter Form 720. 

The fee is imposed on health insurance issuers and self-insured health plan sponsors in order to fund the Patient-Centered Outcomes Research Institute (PCORI). The institute operates under three overarching goals: 

Substantially increase the quantity, quality and timeliness of useful and trustworthy information available to support health decisions. 

Speed the implementation and use of patient-centered outcomes research evidence. 

Influence clinical and healthcare research funded by others to be more patient centered. 

The institute currently maintains a robust portfolio of patient-centered outcomes research that addresses a variety of high priority conditions and topics, including projects targeting certain populations of interest such as: racial and ethnic minorities, low socioeconomic status, women, older adults and individuals with multiple chronic conditions. The PCORI website lists current and completed research projects as well as outcomes. 

Fully Insured Medical Plans: Health Insurers are responsible for paying the fee on fully insured health policies. This fee is built into the insurance premium, so there is no action required by employers. 

Self-Insured Medical Plans: The plan sponsor (the employer) is responsible for paying the PCORI fee for self-insured health plans. Self-insured plans include “level funded” plans. 

For more details: Newfront Office Hours Webinar—Compliance Considerations for Self-Insured Plans 

Fully Insured Medical Plan with an HRA: The insurance carrier will pay the PCORI fee for the insured medical plan, and the employer will pay the PCORI fee based on employees enrolled in the HRA. This includes both HRAs designed to cover cost-sharing under the major medical plan and specialty HRAs such as those designed to cover infertility, abortion-related travel assistance, gender dysphoria, mental health, and other specific medical expenses. 

Self-Insured Medical Plan with an HRA: As long as the self-insured (including level funded) medical plan and HRA have the same plan year, the employer will pay the PCORI fee only for the self-insured medical plan (not the HRA). This would apply to those employees who are enrolled in the self-insured medical plan and also enrolled in a specialty HRA (such as those designed to cover infertility, abortion-related travel assistance, gender dysphoria, mental health and other specific medical expenses). 

Action Item: The employer must file the Form 720 and pay the fee for a self-insured or level funded medical plan or HRA. 

To Which Plans Does the PCORI Fee Apply? 

The PCORI fee generally applies only to major medical plans and health reimbursement arrangements (HRAs). (See below for an exception that applies to many HRAs.) 

The PCORI fee does not apply to dental and vision coverage that are excepted benefits (whether through a stand-alone insurance policy or meeting the “not integral” test for self-insured coverage). Virtually all dental and vision plans are excepted benefits. For full details, see our post: ACA and HIPAA Excepted Benefits. 

The PCORI fee also does not apply to health FSAs (which must be an excepted benefit to comply with the ACA) or HSAs (which are not a group health plan). 

For a quick reference guide, the IRS has published a table which summarizes the applicability of the fee to common types of health and welfare benefits. 

Yes, an HRA is a self-insured health plan. This includes both HRAs designed to cover cost-sharing under the major medical plan and specialty HRAs such as those designed to cover infertility, abortion-related travel assistance, gender dysphoria, mental health, and other specific medical expenses. 

For more details: Newfront Fringe Benefits for Employers Guide 

However, the PCORI rules provide an exception to the fee requirement for an HRA where it is offered along with a self-insured major medical plan that has the same plan year as the HRA. This avoids the need to pay the PCORI fee for both the HRA and the self-insured major medical plan (i.e., each person covered by both plans is counted only once for purposes of determining the PCORI fee). 

There is no exception from the PCORI fee for an HRA offered along with fully insured major medical coverage. While the insurance carrier is responsible for paying the PCORI fee for the fully insured medical plan, the employer is responsible for paying the PCORI fee on the HRA. The IRS is essentially double-dipping in this scenario by imposing the PCORI fee on the same lives covered by both the major medical and the HRA. In recognition of this, the HRA PCORI fee paid by the employer is determined by counting only one life per employee participating in the plan (and not dependents). 

Employers offering a specialty HRA alongside both a fully insured medical plan and a self-insured (including level funded) medical plan will need to calculate the cost and pay the PCORI fee for the HRA only for those employees who are not enrolled in the self-insured medical plan. For employees enrolled in the self-insured (including level funded) medical plan option and the HRA, the PCORI fee will be paid based only on the headcount in the self-insured medical plan. 

Action Item: The PCORI fee is required for an HRA unless it is paired with a self-insured major medical plan that has the same plan year as the HRA. Where the PCORI fee is required, the employer is responsible for filing the second quarter Form 720 and paying the PCORI fee for an HRA solely for the covered employees (not dependents). 

Plan Sponsors of self-insured health plans (other than an HRA) calculate the fee based on the average number of total lives covered by the plan (both employees and dependents). Plan sponsors of an HRA (including specialty HRAs) alongside a fully insured plan will calculate the fee based only on the number of employees enrolled in the HRA. 

Plan Sponsors can use one of three alternative methods which are summarized by the IRS in its PCORI fee homepage and PCORI fee FAQs: 

How Much Do I Need to Pay on the July 2023 Form 720? 

The PCORI fee is due July 31, 2023 of the calendar year following the plan year end date as follows: 

Plan Years Ending January 2022 – September 2022: $2.79 per covered life (including spouses/dependents) 

Plan Years Ending October 2022– December 2022: $3.00 per covered life (including spouses/dependents) 

For calendar plan years, the applicable rate for the 2022 plan year filed July 2023 will be $3.00 per covered life. 

The IRS has published a table of the applicable filing deadline and rate for each plan year ending date. 

Employers filing for a self-insured medical plan should keep in mind that the plan year is the ERISA plan year reflected in the plan document, SPD, and Form 5500 (if applicable). The PCORI fee also applies to short plan years, defined as any plan year less than 12 months. 

Employer with a calendar plan year first changed to a self-insured medical plan (including level funded) effective January 1, 2022. Employer must file the first Form 720 to pay the PCORI fee in July 2023 based on the $3.00 PCORI rate. 

Employer with a calendar plan year first changed to a self-insured medical plan (including level funded) effective January 1, 2023. Employer will file the first Form 720 to pay the PCORI fee July 2024. 

Employer with a July 1 plan year first changed to a self-insured medical plan (including level funded) effective July 1, 2022. Employer will file the first Form 720 to pay the PCORI fee of $3.00 per covered life July 2024. 

Employer with a self-insured medical plan has short plan year from July 1, 2022 through December 31, 2022 to transition to a calendar plan year as of 2023. Employer must file the Form 720 in July 2023 to pay the PCORI fee for both the full plan year ending June 2022 ($2.79 per covered life) and the short plan year ending December 2022 ($3.00 per covered life). The PCORI fee amount is prorated for the short plan year, as detailed in the IRS PCORI Fee FAQ. 

The PCORI fee is always filed on the second quarter IRS Form 720, regardless of the employer’s plan year. The second quarter Form 720 is due by July 31, 2023. Form 720 is used to pay the Quarterly Federal Excise Tax. Employers may want to coordinate with their accounting/tax departments if the company files any other excise taxes. Much of the form is irrelevant to the PCORI filing. 

Instructions for Completing the PCORI-Related Portions of IRS Form 720 

The employer will complete their name and address and employer identification number at the top of the form. 

Quarter ending will be June 30, and the year in which they are filing. 

Final return will be checked if the employer is going out of business, or no longer has a self-insured medical plan or HRA. 

Address change will be checked if the employer has changed their address since the last filing. 

Skip to Part II, (if no other taxes are being paid on this form) line 133 – Applicable self-insured health plans and choose the plan year. ending. Line (c) is for plan years ending before October 1 (non-calendar year plans) and line (d) is for plan years ending on or after October 1 (generally calendar year plans). 

The number of lives will be entered on either line (c) or (d) using one of the methods outlined above. An employer may enter the number of lives on both lines if they are filing for a full 12-month plan year and a short plan year. 

The number of lives in lines (c) or (d) is multiplied by the rate in column b and the result is entered in column (c) Fee. 

The total of lines (c) and (d) in the Fee column is brought over to the tax column. 

The same total is brought down to line 2 Total. 

Line 3: The same total from Line 2 is brought forward to this line.

Line 10: The amount from line 3 is brought down to line 10.

The form needs to be signed and dated and returned with payment. 

Employers paying via check would complete the payment voucher 720-V at the end of the form with their EIN, amount paid, business name and address. The tax period is second Quarter. Consult the IRS Instructions for Form 720 for additional direction on completing the form (see page 9). 

Another July 31 Deadline: Form 5500 Filing 

One other deadline looming for calendar year health and welfare plans with 100 or more covered employees at the beginning of the plan year is the Form 5500 filing. The Form 5500 filing is due to the DOL by the end of the 7th month after the end of the health plan year, normally July 31st. 

Plans are permitted to file a Form 5558 with the IRS for an automatic 2 ½-month extension of this deadline (to October 15, 2023 for calendar plan years). 

For more details: Newfront ERISA for Employers 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 breaks down all you need to know about the recently-released IRS notice providing the adjusted PCORI fee per covered individual for health plan years ending on or after Oct. 1, 2022 and before Oct. 1, 2023.

Increased PCORI Fee Due July 31 via IRS Form 720

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

Newfront Named 2023 Winner of San Francisco Business Times Corporate Pride Award

AANHPI and Finances: Five ways to prepare for the care of aging family members

Increased PCORI Fee Due July 31 via IRS Form 720

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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

.css-13o7eu2{display:block;}Newfront Named 2023 Winner of San Francisco Business Times Corporate Pride Award

AANHPI and Finances: Five ways to prepare for the care of aging family members

Increased PCORI Fee Due July 31 via IRS Form 720

You ‍
deserve ‍

a ‍
better ‍
insurance ‍
experience. ‍

Newfront Named 2023 Winner of San Francisco Business Times Corporate Pride Award