Large gaps seen in health perceptions vs. reality

Source: https://eba.benefitnews.com
By Tristan Lejeune

A new survey from Aon Hewitt, the National Business Group on Health and The Futures Company indicates that many American workers and their families — even those who know what it takes to get and stay healthy — have inaccurate perceptions about their own weight, condition and the cost of their health care. The survey results, released this month by Aon Hewitt, further indicate satisfaction and claims of positive behavior changes associated with participation in consumer-driven health plans.

More than 2,800 employees and their dependents covered by employer-sponsored health plans were surveyed about their thoughts, attitudes and behaviors toward health and wellness. Eighty-seven percent of respondents reported being in good health, yet more than half of those (53%) gave height and weight combinations that categorize them as having a body mass index in the overweight or obese categories. Only 23% of all respondents believe they are actually overweight or obese, when in reality that number is 34%.

“Employees want to be healthy, but many have an overly rosy perception of their health and may not see an urgent need to take action,” says Joann Hall Swenson, Aon Hewitt’s health engagement leader. “For others, the activities and stresses of daily life take priority over good health, and many consumers are unwilling to make sacrifices to improve their health.”

She says employers need to offer workers and their families “the necessary tools and resources that give them a realistic picture of their health,” then follow up by encouraging healthy decision making.

Consumers’ incorrect perceptions extend to cost, the survey finds. Total health care costs per employee were $10,522 last year, according to an analysis, of which employers paid $8,318. When asked, however, how much of their bill their employer pays, the average respondent guessed around half that amount.

“These survey results,” says Helen Darling, president and CEO of the National Business Group on Health, “underscore the challenges employers face as they seek to engage employees and their families in health improvement as a means to better managing rising health care costs. It is critical for employers to bridge the knowledge gap evident in this survey.”

It seems one way to do that is by offering a consumer-driven health plan, the survey reveals, as 60% of those in a CDHP say they have made positive behavior changes in regards to their health, including more preventive care (28%), seeking lower-cost options (23%) and more frequent research of health costs (19%). In addition, 63% of respondents say they would complete a health risk questionnaire for a monetary reward, and just under that would engage in a healthy eating or weight management program.

“Consumers are looking for solutions that address their specific health needs and concerns,” says Christine Baskin, senior vice president at the Futures Company. “Tailored, targeted feedback such as that given in the HRQ process, along with understanding individual consumer's attitudes towards health, are essential ingredients to having employees take actions to improve their health and their lifestyle.”


Preservation of social media, what every company needs to know

Source: https://www.insidecounsel.com

BY VINCENT SYRACUSE, PAUL SARKOZI, MATTHEW MARON,GEORGE DU PONT

Facebook, LinkedIn, Twitter. At times these social media outlets are purely personal communications. Other times, they are part and parcel of how a company does business. How does a company identify which social media data it must retain as part of its overall policies for preserving electronically stored information (“ESI”)? In large part, the answer may be found by examining the degree to which the social media communication is truly a company-related communication. If the company permits or authorizes social media communications on its behalf, it likely will need to take steps to preserve and review such data even if it is made by an employee on a personal, password-protected account on a home computer.

That is not to say a company must always be its employees’ keeper. When company employees create social media accounts for purely personal communications (e.g., a personal Facebook account), a company typically will not have any obligation to preserve such data, particularly where such accounts are accessible by a username and password known only by the individual employee and not the company. Companies can help insulate themselves from ESI obligations with respect to such accounts by enacting policies that prohibit any use of such private personal social media accounts for work-related communications on behalf of the company.

In some instances, however, companies will want to encourage or permit employees to use personal social media accounts for work-related communications. For example, recruiters at personnel staffing companies routinely use personal LinkedIn accounts to reach potential candidates. In such circumstances, even though the companies may not have the passwords or usernames for these accounts, the company may have a duty to preserve the social media communications they contain.

While a body of case law has not yet developed, there is no reason to believe that principles developed concerning other forms of “personal” ESI will not be applied to Facebook, Twitter and their social media cousins. See e.g. Equal Emp't Opportunity Comm'n v. Simply Storage Mgmt, LLC, (applying traditional discovery principles to compel production of social network site data). For example, courts have required companies to produce relevant ESI that their employees stored in internet-based personal email accounts. See e.g. Helmert v. ButterballLLC. Courts may well treat personal LinkedIn accounts the same way.

To ensure that companies will not face the extra costs of disputes with their employees to obtain access to the ESI they are required to produce, companies that rely on employee use of social media should establish clear policies governing the use of workplace computers and other electronic devices that access company systems (e.g., smartphones, tablets and other portable electronic devices) with a particular focus on regulating social media usage on company systems and the duties that may be triggered to preserve data generated from such usage. Companies should instruct employees to engage in work-related communications on behalf of the company only from accounts to which the company has access.

In addition, because social media can be accessed anywhere there is an Internet connection, companies should alert employees that even when they are outside of the office, certain work-related ESI generated on their personal social media accounts can be subject to the company’s preservation obligations, and that in the event litigation is reasonably anticipated or when faced with a subpoena, the company may instruct its employees to preserve social media content from their own personal accounts, which may contain relevant information.

Taking these steps may help ensure that companies will be able to access social media used by its employees on behalf of the company. However, companies that rely on their employees’ social media use also need to make sure that they can preserve such data to avoid spoliation claims. The Sedona Conference’s Primer on Social Media (available at thesedonaconference.org) notes that tools for preserving social media are constantly evolving, and some of the suggested methods currently used for preserving relevant social media data include capturing and preserving static images of relevant social media data or by using site monitoring software.

In making these recommendations, we offer an important caveat: Prior to requesting access to an employee's personal social media account, a company should check with employment counsel to ensure the company does not run afoul of laws that prohibit asking employees for personal social media account passwords.

 


HHS Issues Proposed Rule on Exchange Liability; IRS Provides Coordination Options for Noncalendar-Year Plans

On Jan. 14, 2013, the Department of Health and Human Services (HHS) issued another lengthy proposed rule under the Patient Protection and Affordable Care Act (PPACA).  Among other things, the proposed rule provides some information on how employers will be notified if an employee applies for a premium subsidy / tax credit and how an employer may appeal a determination of premium subsidy eligibility that it believes is incorrect.  The proposed rule is HERE

Employee Requests for Premium Subsidies

An employee will be eligible for a premium subsidy only if:

  • His household income is less than 400 percent of federal poverty level,
  • He purchases coverage through the public exchange,
  • He does not have access to affordable, minimum value coverage through his employer, and
  • He is not covered by a plan through his employer that provides minimum essential coverage (even if that coverage is not affordable or it does not provide minimum value)

The employee will be required to provide information to the exchange about his income and access to employer-provided affordable, minimum value coverage.  The exchange (or HHS if the state asks HHS to do this) will attempt to verify this information from available data bases, but in all likelihood it will need to contact the employer for verification of information regarding coverage.

HHS is considering the use of a one-page template that the employer would complete with respect to the employee’s eligibility for coverage, plan affordability and plan value.

Employee Eligibility for a Premium Subsidy

Under the proposed rule, HHS or the exchange would notify the employer if an employee is determined to be eligible for a premium subsidy (“certified under Section 1411”).  The employer would have 90 days to appeal the determination if it believed the employee should not be eligible for the subsidy.  (All employers, regardless of size, would receive the notice that an employee has been found to be eligible for a premium subsidy. Employers large enough to be responsible for paying a penalty on employees who receive a premium subsidy would receive a separate notice from the IRS actually assessing the penalty. The IRS notice most likely would be sent during the second quarter after the calendar year for which the premium subsidy was provided.)

Coordinating Exchange and Plan Open Enrollments

On Jan. 2, 2013, the IRS issued a detailed rule that, among other things, provides that noncalendar-year plans may amend their Section 125 plans to allow employees to make midyear changes because of PPACA.  Open enrollment for the exchanges will begin in October 2013 for a Jan. 1, 2014, effective date, and the individual coverage mandate also begins Jan. 1, 2014.  The proposed rules provide that employers with noncalendar-year plans may amend their Section 125 plans to allow participants to drop coverage as of Jan. 1, 2014, to enroll in an exchange plan.  Employers also may amend their plans to allow employees who had declined coverage to enroll and pay premiums on a pre-tax basis as of Jan.1, 2014, so that the employee can meet the coverage requirement.  (Employers considering allowing a special enrollment for those who had declined coverage should obtain the consent of their carrier or reinsurer before implementing this option.)   The proposed rule is here:
https://www.gpo.gov/fdsys/pkg/FR-2013-01-02/pdf/2012-31269.pdf

 

Important: The HHS rules are still in the “proposed” stage, which means that there may be changes when the final rule is issued.  Employers should view the HHS proposed rule as an indication of how plans will be regulated beginning in 2014, but need to understand that changes are entirely possible.

 

 


Let’s Go Wellness

Most business leaders (87 percent) see value in worksite wellness programs, according to a recent online survey of HR leaders. Seventy-four percent of polled executives said they would be open to sharing ideas with other business leaders in their community to come up with unique and effective wellness initiatives, the report said.


Bad Flu

The Centers for Disease Control and Prevention (CDC) is predicting a particularly nasty flu season this winter. Health officials detected a jump in influenza cases in five Southern states in early December. Luckily, people seem to be better prepared this season, with more than a third of Americans already being vaccinated, CDC officials said


PPACA: Play or Pay? 7 Reasons Why ‘Pay’ is Not the Easy Answer

By Thom Mangan, CEO, United Benefit Advisors
Source: https://www.insurancebroadcasting.com

With every day that goes by, the nation’s employers move a step closer to having to make a decision: Do I play or pay?

Employers now have just a little more than one year to prepare themselves and their workforces for the arrival of the core of the Patient Protection and Affordable Care Act (PPACA), which requires employers with 50 or more full-time employees to offer medical coverage or pay a penalty. Although a year might seem like ample time, the decision isn’t an easy one, and it’s fraught with financial, legal and competitive implications.

Some employers assert that the play-or-pay mandate will raise their costs and force them to make workforce cutbacks. As a result, a number are considering eliminating their health care coverage altogether and instead paying the penalty on their full-time employees. While the “pay” option might be worth considering, there are strong reasons why employers should look carefully at all of their options and do their best to calculate the actual outcomes of each.

Here are some of the issues employers should factor into their decision-making process:

1.    Lost Tax Advantages—Employers that eliminate health care coverage or opt not to offer it to full-time employees will be missing out on tax breaks (as will their employees).  Employer contributions for health care coverage are not considered taxable income to the employee (and are deductible by the employer).  Employee premiums that are paid through a Section 125 plan reduce the employee’s taxable income, which reduces both the employer’s and the employee’s FICA tax.

2.    Reporting Burdens Remain—Employers that don’t offer health care coverage will still face federal reporting requirements, in part so the penalty amount can be determined.  In addition, employees who are not offered coverage are likely to go to the exchanges for coverage. These exchanges will require a variety of employee data from employers, particularly for employees who may be eligible for the premium tax credit, which means employers may have to deal with a significant number of inquiries from exchanges (staff time, effort, costs).

3.    Recruitment and Retention Challenges—Employers who opt not to offer health care coverage could be doing long-term damage to their employment brands, making it difficult to attract top talent in the future. Even worse, they could lose current employees to organizations that do provide coverage. And the damage to the brand could be even greater for employers that once offered coverage but elect to eliminate it in favor of paying penalties. Not offering coverage could tarnish the employment brand and disrupt business in another way: Employees who are forced to use exchanges—especially untested or insufficiently staffed exchanges—could feel undervalued or abandoned by their employers.

4.    Counting Employees Can Be Complex—What constitutes a full-time employee?  Answering this question can be tricky; in late August the IRS issued 18 pages of rules that only partly answer the question. Employers that believe they won't face penalties for dropping or not offering coverage because they have fewer than 50 employees may have calculated incorrectly. If that happens, the results could be costly. Be certain you know how to count full-time and full-time equivalent employees and what your obligations are.

5.    The Cost of Coverage Can Be Adjusted—While employers may have to cover more people, they do have options for reducing the costs of this coverage. For example, employers could reduce their lowest-cost coverage to stay just above the 60 percent minimum value threshold; they could reduce workers’ hours below the “full-time employee” level; and they could consider paying targeted penalties (e.g., not providing “affordable coverage” to certain segments of their workforce).

6.   Other Financial Implications—Employees may demand additional compensation from employers that elect to drop coverage to cover the cost of health care they must now purchase with their own, after-tax dollars. Employers who haven't properly budgeted for nondeductible penalties may compound their financial burdens, especially if they don't make long-term plans for penalty increases.

7.    Carriers Will Address Plan Designs—Insurance carriers will become experts on coverage requirements out of sheer necessity, so the myriad of plan design criteria won't likely be a burden on many employers. In addition, carriers will implement a variety of tools to communicate with employees, helping to keep business disruptions to a minimum.

These play-or-pay decisions actually represent just one aspect of PPACA, and there are obligations and implications attached to both sides of the argument. Again, employers would do well to consider all of their options and calculate the outcomes as accurately as possible.

 


How Ergonomics Can Save You Money

Source: https://safetydailyadvisor.blr.com
By Chris Kilbourne

More companies are beginning to view ergonomics as an overall business tool. And they’re saving money.

According to veteran ergonomics consultant Dan MacLeod, the value of ergonomics is often underrated—especially when budget time rolls around. Macleod, however, has catalogued many ways ergonomics can save money.

  • Dramatic reduction in workers' compensation costs. Good ergonomics programs cut comp costs an average of 60 percent and up to 90 percent in some cases.
  • Improved productivity. According to MacLeod, ergonomic improvements commonly raise productivity by 10 to 15 percent.
  • Fewer mistakes and less scrap. People working in awkward and uncomfortable postures commonly make mistakes. At one business, a $400 mechanical device eliminated a $6,000 annual loss in scrap caused by employees who had been unable to consistently perform a demanding physical task. The return on investment was 1500 percent!
  • Improved efficiency. Ergonomics improves efficiency due to improved working posture, less exertion, fewer motions, and better heights and reaches.
  • Less fatigue. Fatigue has long been known to result in lost productivity. Ergonomics specialists seek the causes of excessive fatigue and ways to reduce or eliminate them.
  • Reduced maintenance downtime. For example, providing clearance, reducing exertion, and reducing motions can speed up the time in which operations can be brought back online.
  • Protecting human resources. Loss of key personnel due to ergonomics injuries can be a costly problem, especially in smaller organizations.
  • Identifying waste. By evaluating elements such as motion and exertion, it is possible to identify and eliminate wasted activity.
  • Offsetting the limitations of an aging workforce. Making ergonomic adaptations can help older workers be as productive as younger ones, if not more so.
  • Reduced turnover. Employees working in uncomfortable environments that cause them pain are more likely to seek other employment and leave.
  • Reduced absenteeism. Absenteeism can be an indicator of the early stages of a musculoskeletal disorder. "Work that hurts doesn’t exactly encourage people to come in every day," says MacLeod.
  • Improved morale. Frustration, aches, and pains caused by ergonomic problems are likely to affect morale—and not in a good way!
  • More engaged employees. Ergonomic improvements directly benefit employees, and this serves as a positive reinforcement for participation.
  • Improved labor relations. Ergonomic issues can be a source of positive labor/management problem solving. This collaboration can extend to other aspects of the work environment.
  • Resurgence of "methods engineering." Methods engineering is an old business efficiency technique that seeks to reduce costs and optimize reliability by analyzing task performance. Ergonomics brings these ideas back in a valuable "new and improved" format, says MacLeod.
  • Linking to LEAN. Ergonomics, with its emphasis on waste reduction, can help businesses advance their LEAN programs.
  • Keep regulators at bay. OSHA has issued some historically high fines for ergonomics violations.

MacLeod adds that humans have been "doing ergonomics" for thousands of years. It's a proven practice. He points to examples such as the stone ax and the wheel.

In addition, ergonomics can provide valuable insights that can lead to other improvements. Any new perspective in the workplace helps leaders identify ways to improve and motivates them to make improvements that result in higher profits.

 


Fiscal Cliff Averted

Legislators pulled the nation away from the so-called "fiscal cliff" and inked a budget deal on the first day of the New Year. As part of the agreement, Congress opted to remove the 2 percent payroll tax cut. The removal of the cut means that 77 percent of U.S. households will see higher taxes this year, according to the Tax Policy Center. In addition, the deal expands unemployment benefits. Lawmakers also voted to continue the tax-favored status of educational assistance and mass-transit expenses.


Financial Wellness Training Makes Good Cents

https://safetydailyadvisor.blr.com
by Chris Kilbourne

January is National Financial Wellness Month, which presents a good opportunity to start your training year off with a "soft" yet important wellness session on finances. Why? Personal financial problems can be a huge distraction for your employees and could cause them to lose focus on the job and take unsafe actions. Today's Advisor gives you solid information for training on financial wellness.

Celebrating a new year is a good time for employees to take a new look at their finances. Encourage employees this year to approach their financial health with the same wellness attitude they bring to their physical health.

For example, start your training sessions by giving employees this holistic list of what financial wellness looks like:

  • Living within your means
  • Managing debt successfully
  • Saving for the future
  • Investing wisely
  • Having a cushion in case of emergencies
  • Avoiding financial problems

Based on this list, ask employees if their finances are in good shape. Explain to them that just as physical wellness combines healthful eating with regular exercise, financial wellness combines asset acquisition with debt management.

Asset examples include:

  • Cash and bank accounts
  • 401(k) and IRAs
  • Investments
  • Personal property, including homes, cars, boats, and jewelry

 

Debt examples include:

  • Mortgage
  • Credit card debt
  • Car loans
  • Other loans
  • Outstanding bills

 

Reiterate that just as employees take several steps to achieve physical wellness, they need to take several actions to achieve financial wellness. One action is to take stock of their financial wellness action plan. Give them the Finance Checkup in the next section.

Finance Checkup

Ask employees if they are taking all the right steps to get into good financial shape. Give them this checklist to do their own personal financial checkup. Do they:

  • Have a budget for monthly spending?
  • Stick to your budget?
  • Take steps to control spending if you’re overextended?
  • Save every year?
  • Take full advantage of your 401(k)?
  • Understand investment options?
  • Invest wisely, considering the risks?
  • Know what kind of investor you are—conservative, moderate, or aggressive?
  • Choose credit cards wisely, and use them carefully?
  • Pay credit card and other bills on time?
  • Pay off as much of credit card balances as you can each month?
  • Know your credit score?
  • Know how to improve your credit score?
  • Check your credit report annually?
  • Think carefully before you take out loans?
  • Read the fine print on loan contracts, and understand interest charges?
  • Take prompt action when you experience financial problems?
  • Consult a reputable financial counselor if you need help?
  • Handle major life events successfully from a financial point of view?

Why It Matters

  • According to a CareerBuilder® survey, around three-quarters of working Americans live from paycheck to paycheck.
  • Another study from the American Psychological Association showed that financial problems are the number one cause of chronic stress and lead to as much as 25% of American employees missing work because of stress-related issues.
  • These workers can miss up to 16 days a year.

 


Gadgets Stir Security Worries for HR

While advances in technology can spawn increased productivity and lower costs for a company, security concerns about the use of mobile devices and social media remain a hot-button issue for employers and HR professionals.

A recent poll by My Sammy and Holos Research found that security concerns rank as the top reason that employers block employee access to social media sites in the office, according to a report by Human Resource Executive Online. Of the respondents whose companies blocked access, 77 percent cited security as the primary reason, followed by productivity concerns at 67 percent.

Facebook and Twitter aren't the only tech trends that keep HR leaders up at night. The hardware that employees use to access these and other Internet sites can open the door to serious security breaches, as well, a report by the Society of Human Resource Management (SHRM) noted.

As the sophistication of mobile devices has advanced in the last few years, so have malware, viruses and other threats that specifically target these devices. "The bad guys are getting better at making their apps look legitimate," Bob Hansmann, senior product marketing manager for Websense Security Labs, said in the SHRM report.

Bad apps can steal passwords and credit card numbers and can track website visits and text messages, said Robert Siciliano of antivirus software firm McAfee.

The problem is compounded when employees use their personal tablets and phones for work purposes.

Employers need to keep their policies and technologies sharp to avoid these security threats, experts say.  For instance, employers can limit the amount and types of information that employees can access on these devices, Hansmann suggests.

Siciliano recommends that employees be educated about the risks and be encouraged to be vigilant when shopping for mobile apps -- whether they be for personal or professional use. The company, however, should always take the lead when enforcing security policies, he said.

"Lock, locate and wipe is fundamental to any bring-your-own-device policy," Siciliano said in the SHRM report. "Not having some control over that device . . . is irresponsible today."