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MANAGING BENEFITS RESOURCES™ |
Mike Barry, at the Plan Advisory Services Group, writes a column, "Barry's Pickings", that appears in Plan Sponsor magazine in print and on line. His benefits commentary is always insightful, informative, and thought provoking.
PlanSponsor.com is a valuable resource for employee benefits professionals. And be sure to sign up for their daily NewsDash for the latest retirement plan news. |
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Be sure to connect with both Donna and Pete on LinkedIn. |
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Rhodes-Joseph & Tobiason Advisors is a woman owned and managed business | |
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Greetings!
In this newsletter we're focusing on health care.
The actual terms of health care reform aren't yet known and no one can predict for certain that legislation will be enacted. But if the health care system is reworked, there will be both immediate and longer term impacts on employer benefit programs.
Health care reform in the US is a key concern for domestic US companies of all sizes as well as for global employers. Not only will it impact employees and operations in the US, but the significant policy and political changes of health care reform may reverberate outside the US.
It's not too soon to include the possibility of health care reform in your strategic planning.
And while you may be thinking longer term, we're also including a checklist of action items to consider in the near term following this year's open enrollment. |
| HEALTH CARE REFORM - A STRATEGIC VIEW |
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As we write, the House has narrowly passed its health care reform bill. The next step is for the Senate to merge the health care reform bills from its HELP and the Finance Committees, to be followed by full Senate debate of the resulting bill. The timing of Senate action is uncertain but is likely to play out at least through year end.
Although there are some common features in the 3 bills, there are very significant differences on issues of critical importance to employers.
Employers and the groups representing them support the goal of reforming the health care system and remain actively engaged in the Washington debate, but they oppose many of the changes embodied in the current House bill.
What are employers' concerns about the House bill?
Employers are reacting to the bill's pay or play provisions, potential cost shifting resulting from a public plan option and changes in the rules governing retiree health coverage. As well, the House bill fails to adequately address unsustainable health care costs and lacks meaningful incentives for wellness and medical liability reform.
Has the possibility of health care reform already chilled innovation in employer sponsored plans?
We don't think so --- at least not yet.
New consumer directed high deductible plans continue to grow in employer programs. And innovative designs to encourage use of primary care physicians have been announced, including elimination of copays for primary care in some plans.
Employers continue to look to wellness and disease management programs for their longer term impact on health plan costs. These programs have been well received by both employers and employees; their success is the reason employers look to have wellness incentives and disease management provisions included in the health care reform legislation.
What should employers be doing now to prepare for possible health care reform?
Keep up to date, stay involved, and be ready to answer employee questions. The complexity of the competing proposals, the media's often contradictory reports and the resulting confusion during the health care reform debate is a preview of the future. Employees will be hearing that reform will impose many new obligations on employers and employer plans, and on them as individuals. They'll be looking to you for guidance.
Employers must make sure their vendor and service providers understand the strategic goals for the company's health plans. Health plan advisors and plan providers will be transforming their businesses for survival in the future; at the same time they'll be continuing to service pre-reform plans. Employers will need to closely monitor the performance of their vendors and service providers; those who serve employers and their employees well during this difficult transition will have the competitive advantage.
And keep tuned in to cost discussions. As the actual terms of the legislation emerge over the next few months, employers will be able to better estimate their future health benefit costs and incorporate these results into their strategic benefits planning.
We think the impact on employer plans needs to be better understood and taken into account by policymakers as they finalize legislation. The strengths of the employer based benefits system should be preserved, while addressing the important goals of health care reform to broaden coverage, contain costs and improve the health of all Americans. |
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UPDATE ON OPEN ENROLLMENT |
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Employers, their service providers and their employees are in the midst of open enrollment, or have just completed it. Here are some questions, thoughts and follow-ups in the form of an open enrollment MANAGING BENEFITS CHECKLIST™ .
- Did this year's open enrollment communication bridge the gap in employees' understanding of their health plans?
- Did employees compare choices to select the plan most appropriate to their personal and family situation to get the maximum benefit from their plan?
- If new benefits were introduced, did enrollment match expectations? If not, identify improvements for next years communication; start planning now while it's fresh in your mind.
- Evaluate whether the enrollment methods used this year were effective for the employee population; compare the alternatives --- individual benefits counseling, group meetings, web based enrollments, call centers or paper.
- Is there a feedback mechanism in place for employees to ask questions, including questions about the impact of health care reform on their future benefit choices?
- What was employee reaction to any higher health plan premiums and to increased cost sharing though higher deductibles and other out of pocket expenses?
- Are more employees making use of flexible spending accounts than in the past?
- If offered at the time of health plan enrollment, was there interest in additional voluntary disability coverage, life insurance, or long term care coverage?
- Did employees take advantage of open enrollment to update their insurance and retirement beneficiary designations?
Taking Action
To be strategic, the design and communication of benefits should be a year round process. Take a breath --- open enrollment is almost completed. But keep the process and communication going throughout the coming year. |
 THANKSGIVING |
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As we complete the first year of our new company, we have much to be thankful for.
We hope that, as the holiday season approaches, and despite these difficult times, you take a step back and take time to enjoy and appreciate your families and friends.
Have a wonderful Thanksgiving --- this is a year when not only our US friends can be thankful --- it extends to all of our friends throughout the world. | |
Thank you for your referrals - our best recommendations come from clients, colleagues and friends
Best Regards,
Donna Rhodes Joseph
203-542-7260
Pete Tobiason
203-542-7260
© Copyright 2009 Rhodes-Joseph & Tobiason Advisors, LLC
All rights reserved
DISCLAIMER: This newsletter consists of information of general interest and should be viewed and used solely for informational purposes. Rhodes-Joseph & Tobiason Advisors is an employee benefits advisory company which does not provide or engage in the practice of accounting, actuarial, brokerage, investment, legal or tax services. |
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