Could a Self-funded Benefits Plan be Right for You?

In today’s business climate, employers need benefits solutions as resourceful and cutting-edge as the organizations they run. Companies of all sizes are looking to mold their plans around the requirements of their businesses, and pre-packaged, fully-insured health plans might not be providing the greatest value.

There are many reasons employers might want to forgo a traditional plan system.

Small and mid-sized employers might want to avoid risk charges and state premium taxes.
Large employers may want to administer their benefits plans themselves and grow their cash flow by holding reserves in an interest-bearing account.
Multi-state employers might want to free themselves from the burden of complying with the insurance regulations of multiple states.
Employers of young, healthy workforces may be looking to capitalize on their advantages by saving on health insurance.
Because each business is unique and requires its own set of insurance solutions, diversity in benefits plans is needed. And for many employers, self-funding could be a better option.

Here’s a quick example from one Raffa Financial client:



Fully-Insured Renewal:                                 $ 887,257

Partial Self-Insured Projected Cost:          $ 684,927

Partial Self-Insured Actual Cost:                $ 558,056



The worst case scenario would have saved the client over $200,000. In actuality, they ended up saving $329,000!

Now that’s one happy client.

Self-funding Advantages
A self-funded group health plan is one in which the employer eliminates obligations to a health plan provider by assuming the financial risk for providing health care benefits directly to its employees.

While experienced, successful business managers are experts at mitigating risks, many will gladly take on risk exposure if the probability is good for a high payout. There are numerous well-documented advantages to self-funding for employers that manage risk well, including:

Reduced insurance overhead costs. Carriers assess a risk charge for insured policies, but self-insurance removes this charge.
Reduced state premium taxes. Self-insured programs, unlike insured policies, are not subject to state premium taxes. The premium tax savings is about 2 to 3 percent of the premium dollar value.
Avoidance of state-mandated benefits. Self-insured plans are exempt from state insurance laws, subject only to ERISA compliance.
Choosing benefits services à la carte.
Flexibility in plan designs, administration and offered services.
Customizable stop-loss insurance to reduce the risk associated with high claims.
Improved cash flow. Self-insured employers do not have to pre-pay for coverage, and claims are paid as they become due.
Additional cash flow if reserves are held in an interest-bearing account.
Complete Customization
One of the greatest assets offered by self-funding is the complete freedom to structure benefits according to needs of your company. Employers can choose what benefits they want to offer, while opting to insure individual benefits through traditional means or forgo offering them altogether.

The following benefits may be self-insured:

Health care (indemnity, PPO, POS and HMO)
Dental
Short-term disability
Prescription drugs
Vision care
Employers can also make the final call on important variables, such as:

Eligibility
Exclusions
Cost-sharing
Policy limits
Retiree benefits
Most advantageous to employers worried about the potential for large claims is the ability to acquire stopgap insurance, allowing managers to determine their total amount of yearly costs with 100 percent certainty.

At Raffa, we know certainty is hard to come by these days. If you’re looking for ways to find more of it, get in touch. We’ll help you evaluate your current plan designs and map out a plan to keep (or get) you moving in the right direction.



We help clients identify organizational challenges, create big picture strategies, and put customized solutions in place. If you’re looking for a corporate employee benefits consultant who is a true business partner, Raffa is here for you.

What Is Civil Court?

Most courts in the United States are either civil or criminal. In criminal courts, people who have been accused of breaking a law are tried. Civil courts are where a plaintiff may sue a defendant. The manner in which a civil matter is tried, and the punishments that may result, is quite different from what happens in a criminal court.

Types of Civil Cases

In a civil suit, a plaintiff sues an individual or entity that they believe has harmed them. This could be a matter in family court like a divorce or custody hearing. It may also be an eviction or a matter where one person sues another because of injuries sustained in a car accident. Bankruptcy cases and lawsuits against debtors are also heard in civil court. Groups or individuals who believe that their civil rights have been violated may also sue in civil court.

How Is a Civil Case Won?

Most people are familiar with the term, "beyond a reasonable doubt." However, that is a criminal court concept. Civil courts are concerned with a "preponderance of the evidence." Essentially, it is up to each of the plaintiff and the defendant to prove that they have the stronger case through the presentation of evidence. Just because the plaintiff brings the suit does not guarantee victory. Decisions in civil court are made based solely on the evidence.

Possible Civil Court Outcomes

Unlike in criminal court where a guilty verdict likely means going to jail, the outcomes of civil matters are quite different. In civil lawsuits, the plaintiff asks for a form of relief, which may be either monetary or equitable.

Monetary relief is asked for when a cash award can repair the damage suffered by the plaintiff. Monetary relief may include back pay for an employee who was wrongfully terminated. Another form of monetary relief is called compensatory damages. This is money paid to address non-economic harm like a damaged reputation or emotional distress. Punitive damages, designed to punish the defendant, may also be ordered. In many cases, the plaintiff may also ask that the defendant pay their attorney's fees.

Equitable relief concerns asking the other party to either perform an act or to refrain from performing an act. Being granted equitable relief may mean that the other party must abide by the terms of a contract. Usually, equitable relief is granted only when monetary relief is inadequate compensation.

Learn About Copyrights, Trademarks and Patents

Protecting intellectual property has become one of the most important practices in today's business world. To this effect, the United States has a robust system for the legal safeguarding of ideas and creativity. The principal options available for intellectual property protection are copyrights, trademarks and patents.

Copyright

All works of intellectual property have an inherent principle of copyright by virtue of authorship, but registration gives a legal and documentary basis to protect the expression of original works. The Copyright Act of 1976 directs the Library of Congress to administer the U.S. Copyright Office, which is a massive registrar of original works such as writings, video and audio recordings, drawings, multimedia productions and many others. Through registration, the copyright holder has the right to reproduce, display, perform, and distribute original works.

Trademark

The unique source of goods and services can be properly identified and distinguished by special names, words or symbols registered with the U.S. Patent and Trademark Office. In essence, this agency provides a way to legally protect a brand and to prevent others from appropriating the goods, services and branding of other entities. Trademarks also offer protection against the use of words, names or symbols maliciously designed to be strikingly similar to those used by competitors. In recent years, the importance of trademarks has been underscored by an increasing wave of organized counterfeiting around the world.

Patent

Individuals and business entities can enjoy exclusive rights to their inventions for a period of 20 years through registration in the U.S. Patent and Trademark Office. Patents can be obtained through an application process that includes an exhaustive search of all other registrations. Holders of patents are granted property rights over their projects, which means that they can legally impede others from trying to capitalize by means of using, manufacturing, implementing, importing, and otherwise selling the inventions. Patents do not necessarily have to be invented in the U.S.; the U.S. Patent and Trademark Office will accept applications for inventions that were conceived abroad through a process of importation. The rights granted by a patent registration can only be enforced in the U.S. and its territories.

Why do policemen touch a tail light when they pull you over?

People often wonder why police officers touch the tail light of a vehicle when they are pulled over. This practice sprang from the risk that police officers are exposed to when on the road to implement traffic laws.

In general, police officers touch the tail light of the vehicles in order to leave their fingerprints on it. This is to secure proof that the officer did approached the vehicle. In case the officer finds himself in a dangerous situation while pulling over the subject vehicle, fingerprint evidence would prove that he was present in the scene and that evidence will lead investigators to the vehicle and to the owner thereof. This safety precaution has been practiced by police officers in the country for decades.

Another reason for this practice is to provide initial shock or surprise to the person inside the vehicle. This is done in order for the driver of the vehicle or for any passenger inside the vehicle to prevent from hiding malicious or prohibited items, such as guns, ammunition, drugs, and others in the vehicle. The continuous practice of this surprise tactic proved to increase the arrest of intoxicated drivers, sellers of prohibited substances, people found in possession of unlicensed firearms, and other road related offenses.

However, there were instances that proved that the practice of touching the tail light of vehicles put our police officers in a risky situation. This is because this practice exposes the police officers' position making them susceptible to attack.

At present, due to the advent of new technology that aids our law enforcers in the maintenance of peace and order in the society, the practice of touching the tail light of vehicles by police officers was set aside. Also, due to the rampant crimes that happens on the road, our police officers have been exposed to greater danger than in the past decades.

In lieu of this practice, our law enforcers, instead, modernized and adopted innovative technology in implementing traffic rules. Now, we have security cameras installed on almost every corner of the road and on police cars themselves.

source: https://thelawdictionary.org/article/why-do-policemen-touch-a-tail-light-when-they-pull-you-over/

How to Write an Affidavit

Affidavits are prevalent in law, business, finance, and more. They can be used in situations such as child support claims in court, to affirm your authority to act for a corporation, or to confirm your identity.

Despite their widespread, frequent use, many of us don’t know what an Affidavit is, how they are used, or how to write one. In this post, we dive into the purpose of Affidavits and provide a simple guide on how to write one for your situation.

What is an Affidavit?

An Affidavit, sometimes called a sworn statement, is a statement of facts written under oath. They’re written by someone who has knowledge that something is true and are often provided as evidence to support some type of assertion.

For instance, an Affidavit could:

• Detail an event (like if you were sexually harassed by a coworker) that you wish to submit as evidence for a court case
• Establish your right to an inheritance
• Verify your residential address
• Formally record financial aspects of your business
• Confirm you served (or were served) with legal documents

Statutory Declarations are similar to Affidavits in that they outline facts for a certain institution (like a bank) but are often used for matters outside of court (for example, if you need to provide a statement for your immigration visa application).

How Do You Write an Affidavit?

Although there isn’t just one way to write an Affidavit, they are commonly styled and structured in the same manner.

In many instances, Affidavits are like stories told from your perspective. They use “I” statements and full sentences to outline facts, such as “I worked for this company for four years”.

Your statement will often begin with a brief background about yourself and the reasons you are creating your Affidavit.

For example, if you are writing an Affidavit to support your claim for alimony, pertinent background information would be how long you were married, how long you and your spouse lived together, your age, what you do for work, and other similar details depending on your relationship.

After your background information, you lay out the important facts in chronological order. A good approach is to include one fact per paragraph. This will make it easier to discuss a particular section, if and when you’re required to.

The number of facts you include is based on your situation.

For example, if you are simply confirming your identity, you probably won’t need four pages of facts. On the other hand, an Affidavit relating to child custody might require multiple pages of information.

If you have additional proof of your situation (like a bank statement or an email), you can include it as an exhibit, which is affixed to the end of your document just like an appendix.

After your Affidavit is written, depending on your jurisdiction and the purpose of your Affidavit, your document is commissioned or notarized and then ready to use or file.

What If Someone Lies in Their Affidavit?

You could be wondering, if Affidavits rely on someone submitting personal knowledge as true facts, what stops someone from lying?

Submitting false facts under oath is perjury and could result in financial penalties and even jail time.

A prominent example of perjury is when rapper Lil’ Kim, as a witness to a gunfight, lied about who was involved in the situation. Once security footage determined she lied about what she saw, she was sentenced to one year in jail and asked to pay a $50,000 fine.

As you can see, there are consequences to lying in your Affidavit, so it’s important to be truthful in order to avoid fines or conviction.

Writing Your Affidavit for Your Situation

Now that you have a grasp of what an Affidavit is and how they are written, you’re ready to create yours.

Remember, no two Affidavits will look the same, so just make sure yours contains all the information it needs for your situation. If you’re unsure if you’ve written your document properly, be sure to get it reviewed by a local attorney.

How to Purchase a Cemetery Plot

It’s not something we like to think about, but when the times comes to purchase a cemetery plot it’s best to be as informed as possible.

From the types of plots you can choose from, to the costs associated with burial sites, we’ll take you through some of the basics of purchasing a cemetery plot in this post.

How Much Does a Cemetery Plot Cost?

The base cost of a cemetery plot can vary widely from hundreds to thousands of dollars, depending on the location of the cemetery and available space, as well as how the remains will be buried (such as in a crypt, mausoleum, or columbarium).

Extra costs, like grave liners for caskets and receptacles for cremated remains, should also be factored into the overall cost of the plot.

Types of Cemetery Plots

There are several different types of burial plots available to you when planning a funeral depending on you and your family’s preferences and budget.

A single-depth burial space is meant for one person, and can be marked with either a flat or upright grave marker depending on your preference and the cemetery’s rules.

A double-depth burial space is used for two people, such as married couples or siblings.

A family lot is used for multiple people, and the amount of spaces needed can be customized depending on your needs and what the cemetery has available.

A lawn crypt is similar to a single- or double-depth burial site (where it is designed for one or two individuals) but the casket or caskets are encased inside a concrete (or another material such as steel, bronze, or marble) grave liner.

A mausoleum crypt is usually found under a church or other building, but can also be a separate building in a cemetery. A mausoleum crypt can be designed to accommodate a single-depth burial for one casket, a side-by-side burial for two caskets, or a family burial for multiple caskets.

A columbarium is a wall structure that has space to store the remains of multiple people. Because the space for each plot in a columbarium is limited, it generally houses cremated remains only.

A private estate is also offered by some cemeteries, and is a private space reserved for one family. A private estate can consist of multiple burial sites within an area, or a designated building designed to the family’s specifications.

Veteran Cemeteries

The U.S. Department of Veterans Affairs provides burial benefits for veterans at no cost to their family. The benefits include a government headstone or marker, a burial flag, a Presidential Memorial Certificate, and a burial site at one of the department’s 135 national cemeteries. Veterans can also choose to be buried in a private cemetery.

Additional costs for burial sites

Depending on the cemetery and your state’s laws, you may need to consider additional costs beyond the price of the plot itself.

For instance, most cemeteries require that you purchase a grave liner if a casket will be placed in the ground. A grave liner can be made of various materials (such as concrete or metal) and cost between $700 to over $10,000. Some cemeteries may even give discounts if multiple plots are purchased at one time.

Since there are a multitude of different options for burials, it’s important that you research each one carefully, and consult the cemetery of your choice to see if they can accommodate what you are looking for.

Can I Pre-Purchase a Burial Plot?

Although the thought of purchasing a cemetery plot for yourself can seem a little macabre, it can lessen the burden on your loved ones later on.

Cemetery plots can be pre-purchased at most American cemeteries and included in your or your family’s funeral plans.

Tt may be wise to pre-purchase a burial plot, especially if you wish to be buried in a specific cemetery. As an example, Ed Koch, a former mayor of New York City, pre-purchased a grave for himself at the Trinity Church Cemetery in Manhattan as prices for plots are on the rise due to the shrinking amount of available space.

If you’re considering pre-purchasing a cemetery plot, remember to include all the additional fees and costs that may come with it when calculating the final purchase price.

How Long Do You Have Your Burial Site for?

In the United States, once you have purchased a burial site it is yours indefinitely. However, some states have stipulations that say if the site doesn’t see any activity for a significant amount of then it can be reclaimed by the cemetery. However, the laws for each state and jurisdiction can vary.

As an example, a Florida statute states that if the owner of a burial site (which would be the remaining family) fails to provide the cemetery with a current residence address for a period of 50 consecutive years, and the cemetery is unable to contact the burial site owner(s) by certified letter mail, then they can begin the legal process of reclaiming the site.

Buying a Burial Plot

Cemetery plots have a plethora of purchasing options that can seem overwhelming, but nonetheless, considering your burial preferences is an important part of a family or individual’s estate plan. Awareness of the costs associated with burial will help you and your family prepare for the future.