New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

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

Healthcare Provider Update: Healthcare Provider for IAC IAC, officially known as IAC/InterActiveCorp, is known for its diverse portfolio of subsidiaries across various industries, including media, technology, and telecommunications. The primary healthcare provider associated with IAC is UnitedHealthcare, which is the health insurance division of UnitedHealth Group. UnitedHealthcare provides a range of healthcare plans and services, including individual and family coverage through platforms such as the Affordable Care Act (ACA) marketplace. --- Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, significant premium hikes are expected for ACA marketplace plans in 2026, with some states reporting increases exceeding 60%. This surge in costs is attributed to rising medical expenses, the potential expiration of enhanced federal subsidies, and aggressive rate hikes from major insurers like UnitedHealthcare. A staggering 92% of policyholders may face an out-of-pocket increase of over 75% if subsidies are not renewed, highlighting a challenging financial outlook for millions relying on affordable healthcare options. It's essential for consumers to be proactive in managing their healthcare decisions amidst this anticipated landscape. 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 IAC employee, it is imperative to account for this information and plan ahead as to ensure the welfare of you and your family.

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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 IAC 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 IAC 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 IAC companies are cutting benefits such as life insurance and death benefits. IAC 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 IAC 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 IAC 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 IAC Be Cut?

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

IAC 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 IAC 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

What is the IAC 401(k) plan?

The IAC 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.

How can I enroll in the IAC 401(k) plan?

Employees can enroll in the IAC 401(k) plan by accessing the enrollment portal through the company’s HR website or by contacting the HR department for assistance.

Does IAC offer a matching contribution for the 401(k) plan?

Yes, IAC provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the eligibility requirement to participate in the IAC 401(k) plan?

Employees are generally eligible to participate in the IAC 401(k) plan after completing a specific period of service, as outlined in the plan documents.

What types of investment options are available in the IAC 401(k) plan?

The IAC 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their savings.

Can I change my contribution rate to the IAC 401(k) plan?

Yes, employees can change their contribution rate to the IAC 401(k) plan at any time by accessing their account online or contacting HR.

What happens to my IAC 401(k) account if I leave the company?

If you leave IAC, you have several options for your 401(k) account, including rolling it over to a new employer’s plan or an individual retirement account (IRA).

Are there any fees associated with the IAC 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the IAC 401(k) plan, which are detailed in the plan documents.

How can I access my IAC 401(k) account information?

Employees can access their IAC 401(k) account information through the online portal provided by the plan administrator.

What is the vesting schedule for IAC's matching contributions?

The vesting schedule for IAC's matching contributions is outlined in the plan documents, and it typically requires employees to work for a certain number of years before fully owning the match.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Pension Plan: Since IAC does not have a traditional pension plan, this section is not applicable. 401(k) Plan: Employees are generally eligible for the 401(k) plan if they have completed 30 days of service. Specific eligibility details such as age or years of service for the 401(k) plan are not explicitly outlined, but employees must be employed at the time of plan entry.

Restructuring and Layoffs: In early 2024, IAC announced a significant restructuring plan aimed at streamlining its operations and improving efficiency. This move involves laying off approximately 15% of its workforce across various divisions. The decision is part of a broader strategy to refocus the company’s resources on core businesses and enhance profitability. The restructuring is being closely watched as it reflects IAC's response to economic pressures and evolving market demands. This is crucial to understand given the current economic volatility and potential impacts on job security and company performance. Changes to Benefits and Retirement Plans: IAC has also revised its employee benefits and retirement plans as part of the restructuring. The company has updated its 401(k) match program and introduced new guidelines for pension contributions. These changes aim to align benefits with the company’s revised financial strategy and address recent tax reforms affecting corporate pensions. Understanding these changes is important for employees and investors, as they reflect broader trends in corporate benefit adjustments amid economic uncertainties and regulatory shifts.

Stock Options and RSUs: IAC typically grants stock options and RSUs to key employees and executives. Stock options allow employees to purchase IAC stock at a set price, often with a vesting schedule. RSUs are granted as shares of IAC stock that vest over time or upon achieving certain performance targets. Eligibility: Stock options and RSUs at IAC are generally available to senior management, key personnel, and high-performing employees. The specific terms of these grants vary based on the employee’s role and tenure at the company.

IAC provides comprehensive healthcare benefits including medical, dental, and vision coverage. They offer plans through major providers, with a focus on flexibility and employee choice. The company also includes mental health resources and wellness programs. Terms and Acronyms: PPO (Preferred Provider Organization), HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program).