One-Third Of U.S. Women Have Not Completed Basic Retirement Planning
Source: Insurance Broadcasting
Despite being more concerned about the potential risks they face in retirement than men, a new study by LIMRA found that fewer women had completed any of the basic retirement planning activities (determining expenses and income, calculating assets, etc.). Thirty-two percent of women said they had done no retirement planning. (chart)
"We know from earlier studies that working women, on average, have accumulated 40 percent less than men for retirement, which was confirmed again in this study," said Cecilia Shiner, senior analyst, LIMRA retirement research. "Even though 6 in 10 women are concerned they aren't saving enough to last throughout their retirement, we see few women taking steps to mitigate for this risk."
LIMRA found that women were less engaged in retirement and investment activities - only a third of women said they were actively involved in monitoring and managing their retirement savings, compared with nearly half of men (46 percent). Two-thirds of women were not confident that they would be able to live their chosen retirement lifestyle, yet only 26 percent of women spend time investigating financial products that could help them.
"The knowledge gap between men and women continues to be an issue - just 33 percent of women felt they were knowledgeable about financial products and services, compared with 55 percent of men," noted Shiner. "Our research shows that when consumers feel more knowledgeable about financial products, they are more likely to be engaged. Advisors and companies should be developing new strategies to educate women and increase their engagement level."
Looking at women who said they were knowledgeable about financial products and services, nearly twice as many (60%) were actively involved in monitoring and managing their retirement savings, and more than half of these women were confident that they would be able to achieve the retirement lifestyle they want.
"Engaging and educating women should be a top priority of our industry," said Alison Salka, LIMRA corporate vice president and director of Retirement Research."There are approximately 16.6 million women within 10 years of retirement (age 55 to 70 and not yet retired). Our research reveals that many of them are financially unprepared for retirement and because of their lack of knowledge and understanding of our products and services, are not taking the steps to reduce the risk that they run out of money in retirement."
LIMRA, a worldwide research, consulting and professional development organization, is the trusted source of industry knowledge, helping more than 850 insurance and financial services companies in 73 countries increase their marketing and distribution effectiveness. Visit LIMRA at www.limra.com.
Catherine Theroux | Director | Public Relations | LIMRA | 300 Day Hill Road | Windsor, CT 06095
Summary of Benefits and Coverage could wreak communication havoc
Source: eba.benefitnews.com
by Ed Bray
In a meeting talking about the upcoming healthcare reform requirements and it was time to present the Summary of Benefits and Coverage document, which will need to be distributed in the next few months. As part of my show-and-tell, I passed around the sample SBC that the Department of Labor posted on its website. The first reaction was, “This looks like the information you receive with a credit card approval letter [that no one reads].” As the ever-professional, I simply said, “yes, it’s pretty detailed” but on the inside I was saying something more like, “wasn’t the intent of this to make the communication of medical insurance coverage easier?”
Have you seen your SBC yet? Here is the sample provided by the Department of Labor: https://www.dol.gov/ebsa/pdf/SBCSampleCompleted.pdf.
I’ll leave the judging to you but just a few comments about the SBC (or what the federal government refers to as the “easy-to-understand summary about a health plan’s benefits and coverage.”)
- The SBC may not exceed four pages in length. Convincing employees to read four pages wouldn’t be so bad, right? But the regulations from February 12, 2012 contain two extra words that make a huge difference: “cannot exceed four double-sided pages.” (emphasis my own.) Eight pages of medical benefits stuff! Call in the employee engagement police! And just for kicks, the word count in the sample SBC is 2,671 words.
- If you provide an annual health & welfare insurance benefits guide to employees (typically around open enrollment), you will most likely have your work cut out for you. Here’s why. There’s a good chance you include information about the company’s medical insurance plan options in that guide. So, will you continue to create that guide as is and offer the SBC along with it (causing employees to wonder why they are receiving two different sources of medical insurance information) or will you remove the medical insurance information from the guide and provide the SBC along with it (causing employees to wonder where the medical insurance information went and then why the medical insurance information in the SBC looks different than the rest of the health insurance information in the benefits guide) or something else? Any way you look at it, there is a good chance for some level of confusion when distributing the SBC in a population used to receiving a comprehensive health & welfare insurance benefits guide.
- If you haven’t checked the list on this website published by The Center for Insurance Information & Insurance Oversight —https://cciio.cms.gov/resources/factsheets/clas-data.html — you may want to, especially if you are developing your own SBCs. Section 2719 of the Public Health Service Act requires group health plans and health insurance issuers offering health insurance coverage to provide the SBC in a “culturally and linguistically appropriate manner.” Thus, if you operate in a county in which 10% or more of the population is literate in only the same non-English language, English versions of the SBCs must include a prominently displayed statement in the applicable non-English language indicating how to access the language services provided by the plan or issuer. Upon request, a written translation in the non-English language of applicable notices must be provided. The list on the website includes all of the counties which currently meet or exceed the 10% threshold. This list will be updated annually.
What is the real cost of free women’s health care?
By Marli D. Riggs
https://ebn.benefitnews.com
Although eight new prevention-related health care services for women included in the Patient Protection and Affordable Care Act are now available at no cost to female patients, many are left wondering about the real price tag.
Tanya Boyd, owner of Sunnyvale, Texas-based Tanya Boyd & Associates, believes the Department of Health and Human Services and the Obama administration should not tout the word “free” when talking about health care coverage. “It is completely misleading,” she says.
Free is more of a fallacy and should be replaced with the more appropriate word “covered,” when talking about health care services covered for women, adds Reid Rasmussen, owner of McKinney, Texas-based Benefit Brainstorm. “While many call these ‘free’ services, there is still a cost that’s being shared by Americans who are buying insurance,” he says.
As of Aug.1, the new rules in the health care law requiring coverage of these services take effect at most health insurance plans’ next renewal date.
The services are expected to cover 47 million women, and the total number of prevention-related health care services for women climbs to 22, rising from 14 that became effective in September 2010, according to the federal government. The eight new prevention-related services are based on recommendations from the Institute of Medicine, which polled independent physicians, nurses, scientists and other experts, as well as evidence-based research, to develop its recommendations.
Non-grandfathered group health plans offering group or individual health insurance coverage must provide coverage for preventive care without any cost-sharing requirements such as copayments, coinsurance or deductibles, as long as services are administered by physicians and other health care professionals who participate in the plan’s network.
Group health plans and issuers that have maintained grandfathered status are not required to cover these preventive services. In addition, certain nonprofit religious organizations, such as churches and schools, are also not required to cover these services.
Boyd claims that the services were already readily available to women who needed and wanted them. “Many women who put health care at the top of their priority list have always had the services done, whether they paid a copay, found a clinic that provided services for free, or paid 100% out of their pocket,” Boyd says. “Now insurance companies are forced to pay for these services, which will be reflected in the premiums we all pay.”
Putting it bluntly, Boyd says: “All of this ‘free’ stuff is going to be very expensive.”
Balancing Benefits Communication
Source: https://www.hreonline.com
By Mark McGraw
Recent research shows a majority of companies struggle with communicating benefits information to employees on a year-round basis. Experts urge HR leaders to incorporate the technology and tools at their disposal to make communication strategies more successful, and to document their efforts to ensure consistency.
HR professionals know that a healthy workforce generally equates to a more productive workforce. And, HR professionals know they need to consistently encourage healthy behaviors among employees. Actually driving this important message home on a regular basis, however, seems easier said than done.
A recent Benz Communication survey of 298 benefits professionals finds less than one-third of employers communicating with employees throughout the year about benefits program information, despite nearly 80 percent of respondents citing "getting employees engaged year-round" as one of their biggest challenges.
Economics and antiquated approaches are two of the biggest culprits behind breakdowns in benefits communication, says Jennifer Benz, founder and CEO of Benz Communications, headquartered in San Francisco.
"Part of the issue is bandwidth and capacity. Benefits teams have been trimmed back while their responsibilities get bigger and bigger," she says. "You have large organizations with small teams responsible for all aspects of benefits -- regulatory, compliance and communication.
"You also have a lot of companies still using old tools that make it expensive and more difficult to manage communication," Benz continues. "This kind of connects to the bandwidth issue, and makes communicating year-round impossible. But if organizations transition to new tools like social media, blogs and websites, they could better manage ongoing communication."
For example, many organizations still rely on print newsletters and/or brochures to relay benefits-related information to employees, she says. "Some companies still feel that individuals can't rely on online channels if they don't have computer access during the day. But that's just not true. Print newsletters are expensive and take time to put together. And, the same can be said of brochures and employee meetings as well. Trying to orchestrate them takes a lot of time. These channels are viable, and can be used to complement more modern methods, but they require a lot more resources."
Creating a website outside the company's firewall that includes video and other multimedia resources is just one relatively simple example of how embracing technology can aid benefits communication, Benz continues.
"These tools just make the message easier to understand and more accessible. Benefits managers have been focusing on communication, but there's still a big gap between the way benefits communication works and the rest of the world communicates."
But, however successful your efforts in getting employees to read benefits materials -- in print and/or online ? may be the challenge of getting employees engaged in health benefits programs remains, says Helen Darling, president and CEO of the Washington-based National Business Group on Health.
"People have always done very little related to their benefits until a problem arises or when they are required to actively enroll in plans," says Darling. "Inertia tends to be one of the most powerful forces in health benefits."
To spur employees into action, employers "have to do a number of things," she says, "such as . . . paying employees through reduced premiums or money into accounts to encourage engagement.
"And, more effective, targeted and clever communication can help ensure more success. HR can evaluate what they've done in the past, segment their populations, target communications to them, use diverse approaches and track which methods and messages are most effective."
The study does suggest some movement on this front, with 56 percent of participants reporting the effectiveness of their benefits-communication efforts has improved during the last three years.
"While it may not always feel like it, we're at a very exciting time for HR and benefits communication," says Jim Hoff, principal at Aon Hewitt's communication practice in Chicago.
"The role of effective communication is more important than ever, as organizations need to get their people healthy and productive, and need to show an increasing return on the investments they're making in people and benefits programs," says Hoff. "Plus, there are more and better tools and tactics at our disposal to truly market benefits programs and drive new behaviors."
Despite making strides, however, nearly half (45 percent) of survey respondents indicate they still aren't satisfied with their current communication strategies, with another 28 percent describing themselves as "ambivalent" about their approach.
First and foremost, successful benefits-communication strategies should be comprehensive, and not just a calendar of benefits-related activities, says Hoff.
"HR leaders and benefits communicators can ask questions like, 'What are the goals of the business and HR overall, and how can communication efforts drive behaviors that will achieve those goals? How can we best segment and target our audience to ensure we're delivering the right messages to the right people via the right channel at the right time? And how can we best use the channels and technologies available in a multichannel approach -- traditional web and email, mobile sites, text messaging and very targeted use of print?' "
Beyond using the technology and tools at HR's disposal, communication plans should start with understanding the three-to-five year strategic priorities of the business -- healthcare cost management, growth by acquisition, improving productivity and customer service, and attracting and retaining talent, for example, says Hoff.
"Associated with each of these priorities are one- to two-year HR outcomes," he continues, "with a focus on measurable return and a few outcomes that are aggressive but achievable. From there, a communication strategy can be tied to those outcomes.
Within each of these focus areas, the strategy should address the key messages for each critical audience as well as stakeholders and opinion leaders within the organization, says Hoff. An effective approach should also include what he describes as a "multi-channel blend of push and pull communication, so that busy employees get the information -- and motivation -- they need while having access to additional information when they want it. And, on top of all this should be a relentless focus on making it easy and relevant."
The entire strategy should be documented as well, in order to track and measure consistency and progress throughout the year, adds Benz.
"Without having some sort of documented strategy, you can't tell if what you're doing is effective," she says. "I think HR leaders can make this a priority within their organizations, and can elevate the role of benefits to something that's critical to business, rather than just being thought of as a necessary administrative function."
Hiring rises while employee engagement falls
Source: https://www.benefitspro.com
Although employers are hiring more workers, employee engagement is down, according to Mercer’s 2012 Attraction and Retention Survey.
In fact, more than 40 percent of respondents report that they are bringing in more employees in 2012 as opposed to 27 percent in 2010, and 16 percent of respondents are cutting staff compared to 25 percent in 2010. Still, 24 percent of respondents say they are seeing lower levels of employee engagements, a jump from 13 percent in 2010.
“Employee loyalty has been eroding the past few years due to companies’ responses to the economic downturn,” says Loree Griffith, principal with Mercer’s rewards consulting business. “Actions like layoffs, pay freezes and limited training opportunities have created an evolving employment deal for employees due to uncertainty about what is expected and how employees will be rewarded. Meanwhile, firms are still aggressively managing people costs while finding ways to re-energize and re-motivate engaged employees.”
Turnover is a major contributor to the attention employers are giving employee engagement as nearly 60 percent of respondents expect to see higher voluntary turnover with the job market and economy improving. Certain jobs are in higher demand than others because of skills shortages and market demand. Among these positions are information technology, research and development and scientific engineering, and executive level and top management.
“Employees with the ‘right’ skill sets are in demand,” says Griffith. “Despite the increase in hiring, many firms are experiencing talent shortages due to critical gaps between skills employees possess and skills businesses need. Now more than ever, firms need to engage and develop their high-potential employees and critical work force segments.”
Both cash and noncash rewards remain an important part in strengthening employee engagement and retention, and this is especially true as many employers are cutting base pay increases and offering smaller bonuses, the survey finds. Merit increases are particularly popular as 95 percent of respondents providing some form of increase for 2012.
Of the noncash reward programs implemented by organizations over the past 18 months, are communicating total reward value to employees at 25 percent, use of social media to boost the employee work experience at 25 percent, formalized career paths at 22 percent, internal and external training at 22 percent and special recognition at 22 percent. These responses are similar to those from 2010, although more respondents are relying on social media and team building.
Despite the higher use of noncash rewards, respondents expect the top rewards that drive employee engagement and retention in 2012 to be base pay increases at 50 percent, vertical career progression at 47 percent and leadership development at 46 percent. Rewards that are expected to have a moderate impact on employee engagement and retention are variable pay, health care benefits, work-life programs, performance management, time-off programs and training.
“While noncash programs, like work-life initiatives and formal career paths, are important for employee engagement all the time, employers must revisit pay in light of the changing business environment to stay competitive, retain their top-performing employees and ultimately buy or build required skills for the future,” says Jeanie Adkins, partner and segment co-leader of Mercer’s rewards consulting business.
IRS Raises 401(k) Contribution Limit
On Thursday October 18, 2012 the Internal Revenue Service(IRS) announced that effective January 1, 2013 employees will be able to contribute an additional $500 a year into their 401(k)s, tax free.
The tax-free contribution limit for retirement plans will increase to $17,500 for 2013, up from $17,000 this year. This will be the second in a row that the IRS has increased the limit by $500 as a result of the rising inflation rate.
The catch-up contribution limit-the additional amount of tax-free money employees over 50 are allowed to contribute to their retirement plan- remains unchanged at $5,500 on top of the initial $17,500.
Limits for Defined Contribution Plans
Individual Limitation-
The limit on contributions made on behalf of an individual to a defined contribution plan will be increased from $50,000 to $51,000. Application of this limit will remain the lesser of 100% of pay or $51,000.
401(k) Deferrals-
The dollar limitation on employee deferrals in 401(k) plans is increased from $17,000 to $17,500. 401(k) limits are based on the calendar year regardless of plan year end.
Catch-Up Contributions-
Catch-up contribution for participants 50 years or older remains unchanged at $5,500. This is also a calendar year limit regardless of plan the year end.
Defined Benefit Plan Limits-
Effective January 1, 2013, the limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) is increased from $200,0000 to $205,000.
Annual Compensation Limits-
The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $250,000 to $255,000.
Key Employees-
The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of a key employee in a top-heavy plan remains at $165,000.
Highly Compensated Employees-
The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remains at $115,000.
The impact of this is that employees who earn in excess of $115,000 in the plan year that begins in 2012 will be considered highly compensated for the plan year beginning in 2013 and an employee who earns in excess of $115,000 in 2013 will be considered highly compensated employees in 2014.
These limits are applicable to calendar year plans.
A prescription for healthier retirement savings through wellness
Source: https://www.benefitspro.com
BY TIM MINARD
For years, most people looked at their physical health and their financial situation as two very different issues. But that’s changing. Today, the overwhelming majority of American workers recognize the link between health and wealth. Our recent survey found 84 percent of workers see physical health as an investment in their financial future.
Employers are also beginning to see employee wellness as an investment in the financial condition of the business. Healthier employees can lead to a healthier bottom line due to increased productivity, decreased absenteeism and—most significantly—reduced healthcare costs for the business.
There is another side benefit from wellness in the workplace that is gaining attention. Wellness programs may just be what the doctor ordered to boost retirement savings. Employees with fewer health problems logically would potentially have more money available to save for retirement. And down the road, healthier retirees could potentially spend less of their nest egg on medical expenses.
Because it is getting harder to separate health from ultimate wealth at the employer and employee level, discussions about benefits will likely focus more and more on the idea of total wellness. No matter what kind of benefits you sell, having a good understanding of the intersection between wellness benefits and retirement plans helps position you as being on the leading edge of this burgeoning trend.
Fortunately, the body of research proving the connection between physical and financial wellness and the positive impact on both employee and employer is growing.
Here’s a closer look at some compelling proof points that demonstrate the overall benefits of a total wellness approach:
Financial benefits to employees
- The short- and long-term costs of chronic diseases. Diabetes, for instance, has a known cost. The American Diabetes Association says for every dollar a healthy person spends on healthcare, a diabetic employee will spend $2.30. Obesity is also known to raise medical costs by 41 percent and boost prescription drug costs by 80 percent. In fact, the U.S. Centers for Disease Control says almost 10 percent of U.S. medical costs are attributed to obesity.
- Wellness programs reduce health risks. A brand new study conducted by Principal Wellness Company of 12,000 adults, found that participants in comprehensive workplace wellness programs achieve a significant reduction in health risks in as little as 18 months. For individuals participating in one-on-one health coaching, more than one in three (34 percent) moved from a high risk status to a lower risk category. This shift significantly decreases their likelihood to develop diabetes, heart attack or stroke. The percent of participants considered low-risk increased by more than 11 percent.
- How wellness can help employees free up funds for additional savings. By spending less on healthcare today, employees have more money to set aside for retirement. Take, for example, the case of someone who smokes 10 cigarettes a day. Using the calculator at www.smokefree.gov, if he quits and diverts what he had been spending on cigarettes ($5.73 a pack) to a retirement account, that savings would amount to an estimated $12,773 in additional retirement savings over the course of 10 years.
- Ways improved health can help to reduce healthcare expenses duringretirement. Those reduced costs can help make retirees’ savings last longer. That’s a huge benefit in light of the Employee Benefit Research Council’s estimate that a typical, moderately healthy retired couple will need to have saved over $250,000 just to address unreimbursed healthcare expenses (and premiums) throughout an average retirement.
Financial benefits to employers
- For every dollar an employer spends on a wellness program, its medical costs are improved by approximately $3.27 — and another $2.73 in savings is realized in lower absenteeism costs, according to the Health Management Research Center at the University of Michigan.
- Healthier employees can also lead to soft cost savings, such as higher-energy employees and increased levels of engagement in their jobs.
There is one other way that wellness programs can help retirement programs. The wellness folks have learned that when it comes to motivating participation, incentives work.
It’s not surprising that the number of employers offering wellness programs continues to increase. The Society for Human Resources reports that in 2012 just over 60 percent of American workers have access to wellness programs that also offer incentives if they participate.
A new white paper, Wellness = Retirement Savings, offers insights into how wellness programs and retirement plans can work together and can help you be prepared for the inevitable total wellness discussion.
Want wellness? Offer some motivation
Source: https://www.benefitspro.com
By their very definition, incentives serve as motivation to elicit specific actions.
When used by employers as part of a medical management program—particularly wellness and disease management—incentives are proven to significantly raise participation rates, leading to improved member health, increased productivity, reduced health care spending and, ultimately, positive returns on their investment.
The challenge is determining how to structure an incentive program to deliver the desired results.
Studies and our experience have shown that incentives of $50 per employee per month, or $600 per employee annually, yield participation levels of 75 percent or better when the member answers the call. In other words, with the right incentive, you can lead a horse to water, and you can expect him to drink, at least three-fourths of the time.
Successful medical management programs target high-risk plan members with medical conditions or lifestyle behaviors that drive costs for employers. When implementing an incentive program, however, it is wise to cast a wider net.
Although it might seem counterintuitive to offer incentives to employees who are already healthy, it’s important to engage the entire member population. Doing so deepens the pool from which you can identify candidates with chronic conditions or emerging lifestyle risks who would benefit from one-on-one coaching from a registered nurse or behavior-change specialist.
Remember, about 75 percent of those you engage will agree to participate. So if you are able to reach a larger percentage of the overall population, your participation rate will increase proportionately. Plus, even the healthiest of plan members can benefit from learning more about how the decisions they make can influence their personal health and well-being.
Consider a plan structure with a primary incentive that appeals to the total population, complemented by a secondary incentive used to target the at-risk population. Primary incentives often are distributed in the form of premium reductions or additional dollars applied to an employee’s paycheck, a health savings account or as part of a value-based benefit plan.
These incentives typically are used to motivate members to complete clinical health risk assessments and biometric health screenings, both of which help identify individuals for potential coaching intervention.
These at-risk or high-risk individuals are candidates for secondary incentives. They may have a chronic medical condition, such as diabetes, heart disease or asthma. They may have a higher likelihood of developing complications during pregnancy. Or they may have one or more lifestyle risks, such as obesity, tobacco use or a lack of physical activity.
Secondary incentives can encourage these members to work with a health coach toward managing their medical condition or making health sustainable changes to their behavior.
Their participation may be required in order to remain eligible for premium reductions, or they may receive secondary incentives in the form of gift cards or reduced or waived copayments or coinsurance for:
- Therapeutic class medications used to treat chronic diseases
- Diabetic supplies
- A newborn’s inpatient stay following delivery
- Nicotine replacement therapy gum or patches
- Weight loss or fitness club memberships
Our experience shows that, on average, more than 80 percent of those who enroll in coaching will complete the process, equipping them with healthy habits and techniques that are sustainable for a lifetime.
When combined with an effective medical management plan, the right incentives will help employers move employees’ personal wellness forward, move their corporate health culture forward, and reduce their plan costs long-term.
Employers get sneak peek at health care exchanges
By Kathleen Koster
Source: https://ebn.benefitnews.com
Communicate early, say employers using retiree exchange
Before eligible individuals and small employers begin shopping in the public health care exchanges in 2014, private retiree Medicare exchanges provide a glimpse of what public and private health insurance exchanges could look like.
In two years, brokers and other benefit advisers will help people choose appropriate plans from an array of insurance carriers. In particular, platform providers of multi-carrier Medicare exchanges believe they are in a unique position to help employees navigate the public exchanges.
"We see our role as the air traffic controller helping to organize these exchanges and information, and on behalf of those organizations, helping enroll early retirees and part-time workers to the plan that's right for them," says Bryce A. Williams, president and CEO of Extend Health, Inc., which operates a large private exchange in the U.S.
Williams, who has been meeting with several states on health care exchange development, anticipates 15-to-20 states will have a fully functioning exchange ready to offer a broad diversity of plans starting Jan. 1, 2014. Those leading the pack are Maryland, Oregon and California. States not ready at that time will have access to the federal government exchange.
"There will be an array of new choices for employees, part-time workers and early retirees with some of America's biggest companies to access guaranteed-issue individual plans for the first time," explains Williams.
For many new entrants, the exchange will be new territory, so advisers like Extend Health hope to provide information and direction to help individuals find the right plan at the right price.
PPACA "allows for external agents and brokers to connect into the system ... and get ready to place individuals into the exchanges where it's the right fit," and alert them if they qualify for subsidies, Williams adds.
Each exchange must establish a navigator program to fund outreach and education efforts. Community-based organizations and professional associations will act as navigators to help consumers understand the new health insurance options available through the exchange. Navigators are also tasked with raising broad public awareness around the exchange and providing referrals to relevant consumer assistance programs. Agents and brokers may also serve as navigators, provided they meet required standards.
The Massachusetts experience
The Massachusetts exchange, enacted through state law in 2006 under former governor and Republican presidential nominee Mitt Romney, will continue to play a central role in delivering health care to the uninsured. The state plans to improve the usability of its current website interface with federal support, as well as link seamlessly to federal databases.
"We will be building Web functionality that links to federal databases so that we can, in real time, evaluate people's eligibility for coverage in the exchange, including their eligibility for subsidies, and quickly route them through a crystal clear, cutting-edge, simple and comprehensible shopping experience," says Glen Shor, executive director of Massachusetts's Commonwealth Health Insurance Connector Authority.
In addition to its website, the Massachusetts Exchange will continue to provide a call center with "top-notch customer assistance" for help with the benefit selection and billing process, as well as help picking the best value plan, says Shor.
"We're going to work extraordinarily closely with brokers ... We want to make it easier and more efficient for brokers to assess the landscape of health insurance options for the small businesses they serve," he adds. The state is also working with nonprofit organizations to help low-income people enroll for health care and receive any possible subsidies.
In addition, a new wellness track feature helps small business employees and individuals using the Health Connector tool make healthy behavior choices. By participating in the wellness program, a subset of small businesses can qualify for a 15% rebate on the employer share of a health insurance premium, which can then put toward covering their employees.
To qualify for a wellness rebate, employers need a certain percentage of employees to get an annual physical. Outreach to small employers has already begun, and public education will escalate as 2014 approaches. The state introduced the Health Connector through employer road shows.
"We've learned in Massachusetts that outreach and public education, including around opportunities to access affordable coverage through the Health Connector, is critical to bringing people into the ranks of the insured and keeping them [there]," says Shor, adding that "in general, the Affordable Care Act gives us an opportunity in Massachusetts to [expand] what has been a very successful model," he says.
Exchange transparency
When Extend Health first introduced retirees to its private Medicare exchange six years ago, many people simply chose the cheapest plan - no matter their health status and needs. Once they realized how high their out-of-pocket costs were in high-deductible health plans, they would call the support team asking to switch plans.
In order to prevent that buyers' remorse, Extend Health now has 1,000 benefit advisers in call centers ready to take retiree questions and advise them on plan choices based on their health needs and medications.
For the public exchanges, Extend Health believes that trained, licensed advisers who have access to federal databases can be helpful in determining eligibility for employees and early retirees.
Individuals will either shop in the public exchange or get coverage from one of the 80 carriers on Extend Health's exchange platform.
Bryce says the company will provide "private and public exchange products from one platform, one call, one place." In addition, employers will be able to monitor in real-time when their population makes an exchange election or connects with an adviser.
Expectation of paternalism
"People have an expectation if they've just come off of a group plan of open enrollment selection," Williams says. "Employers have an expectation of paternalism; they expect that everyone is going to get coverage."
Four employers have used the beta version of Extend Health's BenefitView tool, each successfully completing their pilot test. Extend Health is now rolling out the tool to all its employer-clients. The tool helps ensure that every retiree is contacted and advised on choosing the best plan that meets the individual's needs. BenefitView assures that the employer-client has full transparency on the status of the transition of its retirees' from group coverage to individual coverage.
Employers can monitor engagement of specific population segments and reach out more aggressively to groups not making appointments with advisers or benefit selections.
The Web platform also shows the HR department how many plans have been selected over how many carriers, and the average insurance premium. It can also give HR statistics about the anticipated or past wait times for the call center.
U.S. retirees and Medicare-eligibles at International Paper entered the Extend Health exchange in July 2012, and over 10,000 people have selected 806 different plans among 66 different carriers.
The company started communicating about the new process in February and has monitored retirees' progress.
"We wanted to make sure [participants] were getting the information they needed, because this is a very different animal for them as opposed to the one-size-fits-all methodology that we had in the past from our medical plan," explains Melissa (Missy) Hartfiel, benefits planner, International Paper.
Lessons learned
By watching what communication efforts retirees were responding to and what modes weren't engaging, the company was able to make adjustments and prod groups that weren't getting involved. The best part: HR could gather information itself and present it immediately to executives when needed.
"As an HR professional, it's nice when you can pull your own information. Through BenefitView, I could look at any population, day or night," says Hartfiel.
Reflecting on its marketing campaign, Hartfiel advises sponsors to start strategizing and communicating early about the public exchanges.
"Once you start parsing down [to communicate to different group populations], it takes time to really craft that message," she explains.
Another user of the exchange agrees: "You need to overcommunicate to make sure you reach the intended audience that you're trying to reach," says Scott McIntyre, manager of employee benefits, Oak Ridge National Labs.
McIntyre and the Extend Health advisers were able to contact 99% of the company's retirees, and 3,360 were enrolled in 68 different plans from 30 different carriers.
"If I'm an employer and I'm going to subsidize the health care cost [for employees or early retirees], I certainly would want a mechanism to ensure that employees enroll in plans that they are interested and comfortable in," McIntyre says.
Hartfiel explains that using Extend Health's model - even though it's a retiree Medicare exchange - has "given us an idea of how [the public and private] exchanges will work as we start planning our strategy for the 2014 exchanges."
International Paper plans to analyze its population health data later this year to decide whether it will engage any segment of employees in the future public or private exchanges.
Small-business owners say wellness has positive financial impact
Survey: 3 in 4 small business owners tout health and wellness programs
While most small businesses don’t offer health and wellness programs to their employees, three of four that offer such programs find the initiatives positively impact their bottom line.
That’s one of the key conclusions of a study of more than 1,000 small-business owners by Humana Inc. (NYSE: HUM), Louisville, Ky., and the National Small Business Administration (NSBA), Washington, D.C. Conducted by the research firm StrategyOne, New York, the study aims to uncover health and wellness needs and barriers facing small businesses in today’s post-recession business recovery.
The survey defines health and wellness programs as initiatives designed encouraging employees to make healthier choices such as getting preventative care, eating right and exercising.
More than 9 in 10 (93 percent) of the study’s respondents consider their employees’ physical and mental health to be important to their financial results, but only one-third express confidence in their ability to help employees manage their well-being.
More than half of the people surveyed maintain that insufficient information is available that pertains to small businesses introducing health and wellness programs. Among companies less than 10 years old, more than six in 10 (63 percent) having already adopted health and wellness programs.
A key factor in small business owners’ decision about whether or not to introduce a health and wellness program rests with employee interest, the study indicates, adding that:
● Startups find their employees, many of them younger, prefer and pursue such offerings.
● 85 percent of startups say wellness programs are worth the investment and 63 percent are already adopting such programs.
● Most startups say these programs aid in recruiting and retaining employees.
While often focused on physical health, well-being programs can impact mental health too, the study notes, adding that:
● High employee stress is the number one concern for small business decision-makers, especially those at smaller companies, with stress levels more than triple other employee well-being concerns.
● Understanding this issue and incorporating stress-management into wellness offerings will be an important consideration for small business owners moving forward.
● 67 percent of respondents say offering programs that help keep employees healthy would be the best health-related option received by employees, versus only 17 percent who say allocating more sick days.