Author Archives: CorpStrat News

DNA Genetic Testing and Insurance: Can They Co-Exist?

Genomics is transforming medicine, and slowly but inevitably will be reshaping insurance. It was only a matter of time…

The secrets once buried deep, hidden in the paired strands of DNA every person carries. The mysteries of the genome (an individual’s complete set of DNA) remained veiled when the Human Genome Project began, which was an international scientific research project with the goal of determining the sequence of nucleotides that made up the human DNA. Then in 2003, the international research project completed its mission, sequencing the genome.

This rapidly advancing science in forcing the insurance industry to navigate a multitude of actuarial, ethical, privacy and even reputational concerns.

The fundamental business models for life, disability, critical illness, and long-term care insurers could be at stake, given the growing existential threat of information as more people buy insurance, without disclosing their predisposition to certain diseases.

Genomics just may become the greatest disruptor to the insurance industry, the equivalent to global warming, or cybersecurity risks in the property/casualty space.

The sequencing of the human genome, DNA genetic testing (such as 23andMe), and genome editing are changing the way of how we are detecting diseases early on, treatment and even prevention through precision medicine. However, genetic testing companies are in line to influence everything from how insurance is underwritten and priced to how products are designed.

The Rise of DNA Testing

Take, 23andMe for example, which offers risk reports for multiple diseases, providing the public with intimate genetic information. Those who test positive to a serious predisposed illness could buy more coverage than they need and at an unpriced rate. And, those who test negative, could delay purchasing insurance coverage, or allow their policies to expire.

According to Nabholz, Swiss Re’s head of research and development, life and health “more than 12 million people have taken direct-to-consumer DNA tests, with almost 8 million of those tests occurring since 2016.”

“People who get a genetic test back that is unfavorable, of course, they’re going to seek to protect themselves and their family,” Nabholz goes on to say. “That’s a natural reaction.”

But, insurers will have to move cautiously. The science is relatively immature. The regulatory landscape remains uncertain with at least one state proposing a ban on using genetic information to underwrite life policies.

And then there is the matter of privacy, data ownership, and media coverage concern that would follow the rejection of applicants due to gene mutations or variants. The questions that are unanswered are as frequent as the questions yet asked.

One thing is certain: genetic testing will open doors to longevity, healthcare, prevention, and screening, and will ultimately lead to us leading healthier and longer lives.

How an HR System Forces Compliance

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Imagine if you had a foolproof way to affirm, with certainty, that each and every company policy, bulletin, procedure, and process was acknowledged by each and every employee?

No one would ever be able to say “I didn’t get that memo”, or “I didn’t know”. It’s possible, with the help of some modern technology we call an HRIS – a Human Resource Information System. Using a shared platform like an HRIS makes it easier to hold everyone accountable for their responsibilities.

Most companies have systems for everything from inventory to sales and from accounting through attendance. But, few have a fully integrated system to manage the employee lifecycle, from ‘job posting through termination’.

Imagine if there was a fully integrated way to post jobs, vet applicants, pre-screen and offer, onboard, payroll, monitor credentials and licensing, track logins and passwords, integrate benefits and 401k enrollment, track PTO and vacation eligibility, make schedules, write up and performance reviews, push out all company policies and maintain access to every aspect of the employee lifecycle. Sound complex? Too good to be true? Well, just the opposite.

What an HRIS Can do for Your Business

Let’s go back to compliance. With an HRIS, each and every company bulletin, policy, procedure and manual, including those that require annual recurring training, can be affirmed by a digital signature. Employees literally cannot go to work without affirming they have read and acknowledged any policy your company wishes to implement.

A robust HRIS, allows employees to also log in and retrieve their payroll stubs, track their PTO, request time-off, and review any document or performance review they have on file. Employees overwhelmingly want this experience.

As one of our clients said so eloquently, “a fully integrated HRIS is a sight to behold.” With today’s challenging workplace, who wouldn’t want a foolproof way to confirm and affirm your employees’ acknowledgment of any and everything possible.

Ask us how our InfinityHR platform changes everything! Call CorpStrat: 818.377.7260

Using Technology to Improve Relationships

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25 years is a long time for any relationship. Yet it’s ordinary in the world of Ron Berman. Over 20 years ago, Ron, who already had 25 years of legal experience, joined forces with his children and built a full-service law firm with offices across California.

The firm, B3Law now has over 60 employees and serves businesses and professionals with first class legal guidance. However, for Ron Berman, not much has changed. It’s still about the phone call, a handshake, and a trusted advisory relationship, one he has maintained through the years with not only his core advisory team but in particular, with our team at CorpStrat.

B3Law’s had a specific hurdle; competing for talent in a very tight market. The firm had an old-school culture and the market was demanding a new type of employment relationship. By using technology, we were able to move toward a new techno-friendly relationship with their staff.

“There has been a unique, collaborative consulting relationship with CorpStrat, one that has allowed our firms to work closely, to foster a strong benefits platform, one that has enabled the firm to retain their most valuable assets, our people,” says Berman.

For Berman, it’s more than just business, “I’ve known Marty and his team to be unusually responsive to our needs, Not just about insurance matters, but someone I can call upon for guidance and advise about business too” adds Berman.

In 2018, the firm embraced CorpStratHR technology, an HRIS (Human Resource Information System) leading to the integration of their payroll and benefits, helping to establish a uniform platform for all of their offices to comply and communicate. The results have been nothing short of remarkable.

“We trust the team at CorpStrat with our most valuable things and processes,” says Berman.

All in a days work at CorpStrat.

How Trump Tax Code Affects Your IRA’s

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After 30 years, Trump’s tax code plans aim to reduce taxes for the middle-class and corporations. However, this, in turn, has serious ramifications for 401(k) owners retirement plans.

The new Trump Tax Code offers a number of opportunities to save significantly for a limited period of time. Qualified retirement plans (IRA’s, 401K’s, 403B, 457 plans, TSP’s, SEP’s, etc.) lead to problems that most people who are nearing retirement, or are retired often don’t expect.

Problems With Your Retirement Accounts:

Every distribution is taxed at your highest rate.
Distributions may put you in a higher tax bracket.
Distributions often lead to an additional tax on your Social Security Income.
Distributions can lead to more tax on capital gains.
It’s the only account that requires distributions, even if you don’t want or need the money.
It’s the highest tax account to leave to your heirs.
During retirement years, you can easily argue these are the least tax-efficient you own.

How Could the New Tax Code Help?

With the new tax brackets, for single files filing the tax deductions are higher in 2018 than in 2017. For married filers filing jointed the deduction is much higher in 2018 than 2017.

All in all, more of your 401(k) money will be taxed similarly to your savings directed into Roth IRAs: You would put in after-taxes, then withdraw money tax-free during retirement.

There’s already a Roth 401(k) that works this way, and it has been slowly gaining momentum.

One of the best ways to reduce the tax liability of your retirement accounts over time is to pay some tax today (at the new lower rates) and shift money into a Roth IRA. This could save you taxes significantly during your retirement years.

You ask, why you move money from your IRA to a Roth IRA?

The Benefits of a Roth IRA Conversion:

1.) Tax-free distributions (assuming you follow the five-year rules).

2.) If you are over 59 1/2, immediate access to funding, tax-free with no penalties.

3.) No required minimum distributions. Freedom of choice.

4.) Tax-free inheritance to beneficiaries if set up correctly.

5.) It’s grandfathered in against any future tax law changes.

Before you rush out and start transferring your retirement accounts to Roth IRA’s, you really want to meet with a financial planner and your CPA to look at the differences to make sure it makes sense for you financially and to make sure it makes sense for you tax-wise.

Open Enrollment: A Paperless Future for Healthcare

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HR Departments across the country are incorporating technology into their roles to do their jobs more efficiently, including Benefit Administration. Why spend hours collecting paper forms, tracking plan selections and payroll deductions when an HRIS platform can do the work for you.

New and improved tools are making it easier to onboard and enroll employees. Digital processes can speed up inefficiencies, and the right tools can keep information secure from end-to-end.

Paper is still the most common in the healthcare world today, but the risks of mainly using paper include turning away customers who are increasingly paying their bills through electronic online means. Managing employee benefits on a pile of paper seems dated and increasingly inefficient. Not to mention, storing all the data, which is proven to be less secure when it’s not stored on a protected server that incorporates two-factor authentications for access.

Digital benefit enrollment changes all this. It allows for your employees to access robust enrollment data, revisioning, approvals, and seamless usability.

Digitizing Enrollment

CorpStratHR’s Benefit Enrollment capabilities make it convenient for your employees to manage their Open Enrollment elections through one central Web-based system.

Some key features include:

Employees can enroll in or change all aspects of their benefits and other HR-related information themselves.
Allows employees to compare, analyze and check plan costs prior to benefits enrollment.
Allows employees to view plans from different benefit providers, showing only the plans they are eligible for.
Lets employees attach dependents and beneficiaries to benefit plans.
Lets employees submit benefit and HR-related data electronically to you for approval and review.
Provides employees with a benefit summary statement after they enroll in or change their benefits.
Gives employees access to pertinent company and benefits information via the Information Links and Documents sections.
Is easily configurable to include the features and content most relevant to your company.
Is quick and simple for employees to navigate through.

Not only will HR automation streamline your processes and help you gain efficiencies, but it also improves the overall experience for your employees. Contact CorpStrat to learn more.