Navigating the Future: What Ensign Group Employees Should Know About Potential Benefit Changes

Healthcare Provider Update: Ensign Group Healthcare Provider The Ensign Group primarily operates skilled nursing facilities, assisted living facilities, and memory care services. They are known for providing a diverse range of healthcare services, including rehabilitation and care for patients with chronic conditions. Their operating model emphasizes patient-centered care, and they often partner with various healthcare providers to ensure comprehensive service delivery to their residents. Potential Healthcare Cost Increases in 2026 As the landscape of healthcare continues to evolve, significant premium hikes are anticipated in 2026, particularly for Affordable Care Act (ACA) marketplace plans. With some states forecasting increases exceeding 60%, the loss of enhanced federal premium subsidies could lead to average out-of-pocket costs spiking by over 75% for the majority of policyholders. This surge is attributed to rising medical costs and the record profits reported by major insurers, creating a perfect storm for healthcare consumers facing steep financial challenges ahead. As consumers prepare for 2026, proactive financial strategies will be essential to mitigate the impact of these escalating costs. Click here to learn more

According to Principal Financials' 2022 Well-Being Index, 65% of businesses surveyed anticipate a recession in the next six months, and 63% report having already been negatively impacted by inflation and want to cut costs such as employee benefits. As a Ensign Group employee, it is imperative to account for this information and plan ahead as to ensure the welfare of you and your family.

benefitshttps://secure02.principal.com/publicvsupply/GetFile?fm=EE12520&ty=VOP

Why?

As a potential recession looms, increase in job changes, additional training, inflation, and  an older workforce has forced employers to cut health and maternity leave benefits. If you are a Ensign Group employee dependent on these benefits, it is essential to account for this transition and adjust your spending accordingly.

One method employers use to quickly reduce costs is reducing these benefits back to FMLA requirements of about 12 weeks rather than offering more than the requirement.

U.S. employers expect health benefit costs per employee to rise 5.6% on average in 2023, according to early results from Mercer’s National Survey of Employer-Sponsored Health Plans 2022 released Aug. 10. According to MarketWatch, the average couple retiring at age 65 can expect to spend $300,000 on health care in retirement, which does not include long-term care needs. As a Ensign Group employee planning to retire, you may want to consider these values and determine if it is a good idea to start saving more money to supplement your future medical bills.

https://www.marketwatch.com/story/vanguard-reverses-decision-to-cut-retiree-medical-benefit-after-employee-outcry-11633632066

“So, the expectation is that health care costs will accelerate in the coming years regardless of what happens to inflation,” he says. Mercer’s research also found that employers were not looking to put the brunt of rising health care costs on employees, such as raising deductibles or copays. Just 36% of survey respondents are making cost-cutting changes in 2023, down from 40% in 2022 and 47% in 2021. 

So,  who is cutting benefits?

Some Ensign Group companies are cutting benefits such as life insurance and death benefits.  Ensign Group employees feel their former employer is reneging on a promise made when they were hired 20-30 years earlier.  As many find that these cuts don't apply to top executives, who have life insurance under a separate company-paid program, which the company can't reduce without their permission.

These companies state that the cuts for other retirees will bring their benefits more in line with the benefits at other large employers, and that only a handful of  Fortune  100 companies still offer most employees life insurance that continues after retirement. If you are a Ensign Group employee, you may want to consider planning in accordance to these cuts as to not be taken by surprise in the event they are implemented at your workspace.

https://www.wsj.com/articles/at-t-slashed-promised-life-insurance-for-former-workersand-time-runs-out-at-year-end-11640544022?st=a8293xazk6a3cb0&reflink=desktopwebshare_permalink   

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Can Ensign Group legally cut benefits

As we mentioned in prior articles the Allstate case discusses companies' options with respect to terminating benefits.  

In the early 1980s, Allstate distributed booklets to employees that described the retiree life insurance benefit as being provided at 'no cost.' Starting in 1990, Allstate distributed summary plan descriptions (SPDs) that, unlike the earlier booklets, reserved 'the right to change, amend or terminate the plan or the provisions of the plan at any time.'

The US 11th Circuit Court of Appeals ruled in  Klass v. Allstate Insurance Co.  that Allstate did not violate the Employee Retirement Income Security Act (ERISA) when it terminated retiree life insurance benefits.   After this ruling we saw other companies pursue terminating retiree life insurance benefits.   https://law.justia.com/cases/federal/appellate-courts/ca11/20-14104/20-14104-2021-12-28.html

https://www.govinfo.gov/app/details/USCOURTS-ca11-20-14104

Can Retiree Health Benefits Provided by Ensign Group Be Cut?

For employees and retirees who work or worked at Ensign Group that provide post-employment health care benefits, an important question to ask is under what circumstances can the company reduce or terminate these benefits. 

Ensign Group employees and retirees should know that private-sector employers are not required to promise retiree health benefits. Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits—unless they have made a specific promise to maintain the benefits. The key to understanding your Ensign Group retiree health benefits lies in the documents governing your plan.

https://robertsdisability.com/eleventh-circuit-affirms-allstate-retirees-are-not-entitled-to-lifetime-life-insurance-benefits/

Prudential Freeze on Retiree Benefits Left Some Feeling 'Betrayed'

In 2022 Prudential Financial will stop contributing to retirement medical savings accounts for current, according to a letter sent to employees in December. In addition, Prudential retirees must now use all the money accrued in the accounts over 20 years, rather than over their lifetime, and any remaining balance reverts back to Prudential life.  https://www.inquirer.com/business/prudential-financial-retiree-medical-savings-accounts-healthcare-costs-20211215.html