People Or Values, What's Driving Future Health Care?

With 8% of surveyed employers planning to offer only consumer-driven plans in the future, the CHDP market is still open to expand, especially as people start to think about retiree medical coverage, says Mercer's Tracy Watts in our final interview.

Also, getting the chronically ill in compliance with their treatments has potential for a huge ROI, with the future of value-based benefit design likely hinging on the prescription drug component of it. As for wellness-focused benefits, they better produce quantifiable results or they won't stick around in this economy.

Streamlining Health Care

Creating personal health records is large employers' No. 1 goal in the next five years. Since the big guys are interested in it, smaller groups will follow, says Mercer's Tracy Watts. In part four of our interview, Mercer's health care survey also shows that the future is all about convenience for employees.

Tune in tomorrow for part five, when Tracy will address CDHPs. Could they soon be the only health care plan employers will offer?

Staying In Shape For COBRA'S Future

In the last part of our talk with Bill Sweetnam, principal at the Washington, D.C., employee benefits firm Groom Law Group, Bill says in light of the new COBRA regulations, HR departments need to examine the way they handle terminating employees — particularly how they document firings. Those who don't will suffer the DoL consequences.

And don't be counting on that December 31 end date if the economy's still in bad shape. Since it's "politically difficult" for law makers to stop offering aid to the unemployed, Bill thinks the new COBRA could be here to stay.

Taking Advantage Of Increased Competition

In part three of our interview with Tracy Watts, senior consultant with Mercer, Tracy discusses employers' plans to save costs. With increasing competition in the vendor market, 63% of respondents say they're taking a closer look at fees and making plans to address them.

Stay tuned for part four, where Tracy says large employers' future plans could predict where the employer sponsored health care market is going.

Working Out Interactions With COBRA Administrators

While COBRA administrators are there to take care of the paperwork, it's no excuse to slack because the legal liability still falls on employers, says Bill Sweetnam, principal at the Washington, D.C., employee benefits firm Groom Law Group.

Employers need to communicate with COBRA administrators to let them know which ex-employees were involuntarily terminated, while COBRA administrators need to inform the payroll department of the reimbursement amount to apply for payroll tax refunds.

Stay tuned for part three of our workout with Bill. We move on to the leg machine and work on the future of COBRA reform. Could these regulations be here to stay?



(Note: Revised notices need to be sent to all eligible former employees as of September 2008)

Employers React To The Recession

In part two of our talk with Tracy Watts, senior consultant for Mercer, Tracy addresses employers' response to the economic downturn — including why their contingency plans may lead to an action she hasn't seen in 20-plus years in the business.

Stay tuned for part three, where Tracy talks about employers' plans to save costs.

Flexing The COBRA Muscle

The stimulus bill is now a law and employers are going to need to comply fast. Changes to COBRA — starting with a 65% federal subsidy for employees terminated between Sept. 1, 2008 and Dec. 31, 2009 — take effect March 1.

We met with Bill Sweetnam, principal at employee benefits firm Groom Law Group, in his building's gym to discuss how employers need to get their COBRA compliance muscles in shape.

In part one, Bill says the first thing employers need to do is get their different departments working together. Stay tuned for part two, where we move onto the weights and address why the legal liability will always fall on the employer, no matter who's administrating COBRA.

Will Projected Health Care Costs Stand?

This morning, Tracy Watts, senior consultant for Mercer, took time to speak with us on the results of the company's annual health care survey.

In part one of our five-part interview, Tracy shares employers' projection that health care costs will remain around 6%, where they have been for the last several years. But, since the survey was taken last summer before the economic turmoil really started to churn, the real question is will the trend change?

Stay tuned for part two, where Tracy addresses employers' response to the economic downturn.

Check Out Our March Issue

We're back with a preview of EBA's March issue. Watch us explain why:

• You'll want to get to know the Alfred brothers.
• It's a good sign that you're visiting this blog right now.
• Voluntary benefits are no good without education.
• You don't know as much about CDHPs as you think you do.
• You should step up your game.
  
  
  
  

Want your own sneak peak at the March issue? Contact Robert at robert.whiddon@sourcemedia.com

They're Your Representatives, Talk To Them

Congress has health care reform on the mind. In part two of our talk, Tom Mangan says contact your congressional leaders now to share your thoughts while they're ready to listen.

'A Groundswell Like I've Never Seen'

In meetings with congressional leaders on the Hill yesterday, Thom Mangan of Hub International brought the benefits professional's perspective straight to legislators like Sen. Chris Dodd. Watch as he describes the "fundamental movement of change" in the Senate and explains why he says the House's desire to act on health care is "a groundswell like I've never seen."

Tune in tomorrow for part 2 when Thom discusses how he plans to take that groundswell back home with him.

Bracing For The COBRA Bite

As the Senate gets ready to (most likely) pass its version of the stimulus bill today, allow me to share the thoughts of Christopher Nadeau, chair of The Council of Employee Benefits Executives, on the COBRA regulations included in the bill.

Whatever the final regulation is, in a press conference yesterday I asked him about the role of benefits advisers and brokers in its administration:

"If reimbursement comes directly out of a payroll tax then there may not be a lot for the broker intermediary or the COBRA administrator to handle."

He was more concerned from the claims perspective:

"COBRA populations historically have run about 50% higher than an active population employee."

When the stimulus bill passes, what will be your first communication with employers? Share your thoughts below.

The Benefit Of A Retirement Adviser

On Wednesday, the DoL decided to put off implementing changes to ERISA that would expand access to 401 (k) and IRA investment advice thanks to a White House request for more time to review final rules published before the administration change. The Employee Benefits Security Administration has proposed to extend the implementation date from March 23 to May 22.

Recently, I was on Capitol Hill stalking tourists to comment for our blog when I met John Skelton, a retired teacher from Oregon. Here, John explains the benefit of working with a retirement adviser.



The DoL wants to hear what you think about the investment advice final rule, and so do we. Share your thoughts below.

HSA issues

Expanding on yesterday's House hearing "Health Care Reform in a Struggling Economy" (hey, I was there for 3 hours — I deserve two blog posts about it!), Small Business Committee ranking member Rep. Sam Graves of Missouri brought up the issue of health savings accounts. Several panelists gave their real-world perspective on them:

"Virtually zero people want it."

—Dave Ratner, Dave's Soda & Pet City

"I'm not seeing any."

—Dirck Clark, Heartland Regional Medical Center

"As times get tougher, the employee tends to pull back coverage for money for something else."

—Janette Davis, Southeast American Financial Group

"[HSAs] could keep people from going to the doctor when needed."

—Michael Beene, National Association for the Self-Employed

What has been your experience offering health savings accounts to employers? Share your thoughts below.

Mandated Health Insurance?

Today I ventured to the House side of the Hill to attend a Small Business Committee hearing entitled "Health Care Reform in a Struggling Economy: What is on the Horizon for Small Business?"

A couple of small business owners testified, including David Ratner, owner of Dave's Soda & Pet City in Agawam, Mass., who has this to say about the state of health care in America: "My customers know more about the pet products on my shelves than they do about the doctors they use."

The topic of states mandating that employers provide their employees with health care coverage came up repeatedly, with most witnesses firmly against mandates ("It will kill jobs," said Ratner) unless there is a tax credit involved to offset costs.

During a Q&A session with the representatives, Alissa Fox, senior vice president of policy and representation for Blue Cross and Blue Shield Association, expressed her support for a mandate on the individual level. I asked her to further explain her position as the hearing adjourned:



(Hear highlights of the testimony yourself)

Daschle Is Done

Today Tom Daschle withdrew from the confirmation process to become Secretary of Health and Human Services. Since news first broke of the former Senator's $120,000 tax lapse Daschle had been facing a growing battle to be confirmed.

In a statement, Daschle called being chosen for the post an honor, adding, "But if 30 years of exposure to the challenges inherent in our system has taught me anything, it has taught me that this work will require a leader who can operate with the full faith of Congress and the American people, and without distraction. Right now, I am not that leader."

What do you think about Daschle's choice to withdraw? Vote in our poll to the right of this post. Any thoughts on who Obama should choose to replace him? Comment below.

More Time With Jim Klein

As promised, here is the second part of our interview with Jim Klein, president of the American Benefits Council. Jim discusses comparative effectiveness research (also in the House bill), how turning the focus from sickness to wellness can lead to savings and what the future holds for the council.