From me:
The current house bill has provisions included that have tax credits and incentives for small business owners who participate in wellness programs. California Governor Schwarzenegger and his Senior Health Advisor, Herb Schultz are both pro-prevention and wellness.
What can you and I do in the next few weeks? If you know Diane Feinstein or Barbara Boxer or want to email them or write a letter, now would be the time. Specifically, it would be good to encourage them to make sure that those tax credits and incentives are included.
Unfortunately, my understanding is that the CBO, though a financial number crunching machine, is not taking into account the hundreds and hundreds of documented studies that point to the fact that one of the single most important ways to cut costs is a focus on prevention and wellness.
See below for a more technical outline of what is taking place overall.
From Blue Cross of California:
This week's debate focused on last Saturday's approval of health care reform legislation by the House of Representatives. Some members of the media have raised concerns over the costs associated with the Democrat version of health care reform, highlighting the challenges Democrats might face politically as health care reform legislation evolves in Congress.
House and Senate Negotiations
House Passes Health Care Reform Legislation: Late last Saturday, the House narrowly passed its health care reform package with a 220-215 vote, which included opposition from 39 Democrats. One Republican, Rep. Joseph Cao (R-LA), voted in favor of the bill. President Barack Obama visited Capitol Hill on Saturday morning to encourage House Democrats to pass the legislation.
The $1.1 trillion legislation passed by the House would extend coverage to an estimated 36 million Americans, vastly expand Medicaid, establish a government-run option, and create individual and employer mandates. It would also bar insurers from denying coverage based on pre-existing conditions or from dropping coverage for those who become sick. To pay for the expansion, the House passed measures including a $400 billion cut in Medicare spending over the next 10 years and new taxes on the wealthy. While the Congressional Budget Office (CBO) estimates that the bill will reduce the federal deficit by about $104 billion over a decade, the bill's longer term impact remains unclear, and some Democrats are still raising concerns over its costs.
In order to secure enough votes for passage, House Speaker Nancy Pelosi (D-CA) agreed to hold a vote on an amendment that would specifically bar the public plan from covering abortion and prohibit those who receive insurance subsidies from using the subsidy to purchase private plan options that cover abortion. The amendment was approved 240 to 194, with 64 Democrats in favor. Abortion rights supporters, however, vowed to oppose the final legislation if it remains in the amendment, highlighting the difficult road ahead.
AARP and AMA Back House Bill: The House reform legislation received a boost last Thursday, winning the support of two highly influential lobbies - AARP and the American Medical Association (AMA). The announcements came at a critical time as the House Speaker was working to shore up the last votes needed to pass the reform legislation.
Small Businesses Voice Concern: Groups and coalitions representing small businesses showed their opposition to the health care reform late last week, sending letters to lawmakers urging them to vote against the House health care reform bill. In a statement Saturday, Susan Eckerly, Senior Vice President of the National Federation of Independent Business, said, "With unemployment at a 26-year high, the punitive employer mandates and atrocious new taxes will force small business owners to eliminate jobs and freeze expansion plans at a time when our nation's economy needs small business to thrive."
Obstacles Remain for Senate: While Senate Majority Leader Harry Reid (D-NV) waits for the CBO to review the Senate's health care proposal, many hurdles remain before securing the 60 votes needed for it to pass. These obstacles include the incorporation of a public option, issues associated with federal funding for abortion, and how to pay for the health care overhaul. Recent reports indicate that Sen. Reid is favoring an increase in payroll tax on the wealthy to help pay for reform. In addition, U.S. drug makers, medical-device manufacturers and insurers are gearing up for another opportunity to reduce proposed industry fees in the Senate version of reform legislation.
With continuing pressure from White House officials to pass health care reform legislation by the end of the year, Sen. Reid has indicated that he will bring the reform package to the Senate floor for debate as early as Monday. However, Senators have indicated that, more realistically, voting will take place before Christmas, with the final passage in mid-January. In an effort to spur on Senate Democrats, Former President Bill Clinton - whose health care reform efforts failed 15 years ago - told the senators over lunch last Tuesday that "passing health care reform is not only a moral issue but also an economic imperative."
Public Opinion
American Support Slips for Passing a Health Care Reform Bill: A new Gallup Poll released last Monday shows that Americans have moved in a more negative direction on whether or not a new bill should be passed into law. Thirty-eight percent of Americans now say they would advise their member of Congress to vote against a new health care bill this year, while 29 percent would advise their member to vote for it. In addition, 41 percent say a new health care bill would make the U.S. health care system better in the long run, while 40 percent say it would make things worse.
Other Activities
Republicans Mobilize to Increase Opposition: In an effort to drum up opposition to the Democratic health care reform bills, Senate Republican Conference Chairman Lamar Alexander (R-TN) indicated that Republicans are "quietly" planning approximately 50 in-person and telephone town hall gatherings over the next three weeks.
Looking Ahead
CBO estimates of the cost of the Senate health care reform package are expected late this week or early next week, which will clear the way for Senate Majority Leader Harry Reid to bring the legislation to the Senate floor for debate as early as Monday.
Monday, November 16, 2009
Tuesday, October 6, 2009
Great new company...
Little know but powerful option for independent consultants as well as small-medium businesses are HRA's (health reimbursement arrangements). HSA's (health savings accounts) have taken over in the news and gotten lots of attention.
However, HRA's have been around for a couple of decades and used by many large organizations for years. We'll talk more about them and do so with our clients all the time.
Last week I had lunch with one of the individuals at Vida Card located in San Francisco. What a great company! Also, what a great model. They will do well. We have already discussed their services with a number of groups who see the value and get it.
Bottom line you can save 20-50% on your health insurance by being a wise consumer, taking the time to get properly educated and thinking outside the box a little. So many of us are focused on healthcare reform that we miss the daily ways we can cut costs now.
This week alone (it's only Tuesday) I have met with 3 individuals (either independent consultants, executives or small business owners) who, within 15 minutes have seen the above savings and learned how to utilize their plans better.
However, HRA's have been around for a couple of decades and used by many large organizations for years. We'll talk more about them and do so with our clients all the time.
Last week I had lunch with one of the individuals at Vida Card located in San Francisco. What a great company! Also, what a great model. They will do well. We have already discussed their services with a number of groups who see the value and get it.
Bottom line you can save 20-50% on your health insurance by being a wise consumer, taking the time to get properly educated and thinking outside the box a little. So many of us are focused on healthcare reform that we miss the daily ways we can cut costs now.
This week alone (it's only Tuesday) I have met with 3 individuals (either independent consultants, executives or small business owners) who, within 15 minutes have seen the above savings and learned how to utilize their plans better.
Friday, September 11, 2009
Upcoming Education Events...
We are excited about a number of new speaking and education opportunities. You can find detail on our calendar to the left.
In partnership with Technology Credit Union we have two HSA (health savings account) webinars to discuss design, use and strategy of HSA's:
October 8, 2009 10am
November 5, 2009 10am
One specialty of SMB is with startups and technology companies. We are an endorsed vendor of VCOMA (Venture Capitol Office Managers Association) and have a nationwide webinar entitled, "navigating the healthcare maze" in January.
Also, working with the Mountain View Chamber of Commerce, we are part of the business booster speaking series. You can view the flier here.
There are a number of valuable speakers and topics. Details are below as well as the 3 dates that we are presenting. If you are in the area, come join us!
Chamber details:
Make your Tuesday mornings matter by attending one, or
some, or all, of these action-oriented workshops. Refine
your existing skills while developing new ones.
Be inspired by our creative, enthusiastic presenters as they cover a
variety of topics uniquely relevant to professionals both in
and out of the workplace. The workshops will focus on
various topics such as: social media, healthcare, marketing
& branding, sales and much more.
NOVEMBER 17
Navigating the Healthcare Maze
APRIL 13
Wellness programs in the
workplace that positively impact
employee recruitment/retention
JUNE 8
Understanding Healthcare
Vendors and/or vendor selection
In partnership with Technology Credit Union we have two HSA (health savings account) webinars to discuss design, use and strategy of HSA's:
October 8, 2009 10am
November 5, 2009 10am
One specialty of SMB is with startups and technology companies. We are an endorsed vendor of VCOMA (Venture Capitol Office Managers Association) and have a nationwide webinar entitled, "navigating the healthcare maze" in January.
Also, working with the Mountain View Chamber of Commerce, we are part of the business booster speaking series. You can view the flier here.
There are a number of valuable speakers and topics. Details are below as well as the 3 dates that we are presenting. If you are in the area, come join us!
Chamber details:
Make your Tuesday mornings matter by attending one, or
some, or all, of these action-oriented workshops. Refine
your existing skills while developing new ones.
Be inspired by our creative, enthusiastic presenters as they cover a
variety of topics uniquely relevant to professionals both in
and out of the workplace. The workshops will focus on
various topics such as: social media, healthcare, marketing
& branding, sales and much more.
NOVEMBER 17
Navigating the Healthcare Maze
APRIL 13
Wellness programs in the
workplace that positively impact
employee recruitment/retention
JUNE 8
Understanding Healthcare
Vendors and/or vendor selection
Friday, August 7, 2009
This week in healthcare reform and a few other things...
The debate over health care intensified this week as House members returned to their districts and the Senate prepared to adjourn for the remainder of August. Many House members held town hall meetings with constituents this week, adding fuel to the health care debate.
Public PlanHouse Committee on Energy and Commerce Completes Markup: After weeks of negotiation, the House Energy and Commerce Committee was the last of three House committees to complete work on sweeping health care reform legislation. The committee approved the bill on a vote of 31-28, with all Republicans and five Democrats voting against the bill. The vote clears the way for the legislation to move to the House floor.
Alternative Plans
Senate Finance Committee Delays Until September: Senate Finance Committee members confirmed that they would not complete a draft bill before the August recess and that negotiations would continue into September. After a meeting with President Obama Tuesday, Senate Finance Committee Chairman Sen. Max Baucus (D-MT) has set a mid-September deadline for completion of a bipartisan bill. President Obama pressured Senate Democrats to move forward with health care reform if a bipartisan bill cannot be reached; he vowed Wednesday to get a reform bill through Congress this year even without Republican support. President Obama will meet with six negotiators from the Committee Thursday at the White House to discuss the bipartisan bill.
Financing the Plan
Obama Renews Pledge to Not Raise Middle Class Taxes but Remains Open to Taxing Health Insurance: White House officials scrambled to retract statements made by top economic advisors last Sunday, indicating that a tax increase on the middle class is an option to pay for health care reform. However, President Obama remains open to a proposal to tax health insurance.
***(My thoughts below are not about the best plan from a political viewpoint nor an objective summary of the current proposals being discussed. That information is difficult to find as there is quite a bit of disinformation in the media. Rather,an appeal to you as the reader, business owner or individual to review your current health insurance plan - added 8.8.09).***
What do I think of all this? As all of this goes on there are, in my opinion, a lot business owners, public entities and non-profit(s) can do to be proactive and drive change in their respective organizations to realize bottom line savings.
Despite the debate and the continued rising costs those who are embracing wellness, consumer driven health plans and alternative funding strategies are seeing terrific results! Those who are slow to change will continue to see very large, double digit increases and only have two options; both of which are cost shifting - change your deductible or lower your contribution.
Why not rather spend a little time learning about options that are available now? Regardless of the outcome, public or private, as a business owner or individual you will still need to analyze the cost benefit of the plan you choose.
We have put together multiple proposals for companies with 2 employees to those with 100's and in each scenario we are seeing significant savings and, often, increasing the coverage. There is typically a little more administration and some education but how hard are you willing to work to save 20-50% on one of the most expensive costs within your organization and/or to your family?
If you have watched the shift in plan options from all major carriers in California (Kaiser, Blue Shield, Blue Cross, Aetna, Health Net and UHC) over the past 4 years you will have seen the same emphasis. There is an increasing wave of offerings focused on transparency, consumer driven plans (HSA, HRA, FSA, HIA - way too many acronyms), wellness programs/integration and voluntary gap products. There is still a lot of skepticism.
Many times it was brokers engaging the carriers to push for alternative plans and products and now the adoption is accelerating at a rapid pace. Most of the discussion at a National level is about pouring money into IT infrastructure, pushing for more transparency in regard to costs and utilizing consumer driven plans so that consumers (you and I) will take more responsibility. The California market is doing the same thing. Kaiser has led the way but others have are doing the same.
Just last month the National Association of Actuaries (a group of very smart, number crunching individuals) published a report on the short and long term savings (or lack thereof) with HSA and HRA plans. If you would like a copy email me and I'll be happy to send it to you. The findings? They work for both short-term savings and long-term savings. And the early studies show that they are changing behavior.
So let's talk. What are you waiting for? In almost every one of the companies that have decided to work with us over the past 8 weeks we have done the analysis and these type of plans have, hands down, been the best option; for both savings and for coverage.
Whether you want to change from your current broker or not give us a call and we would be happy to provide for you the education and the analysis.
Thursday, July 30, 2009
Friday, July 17, 2009
Health Care Reform: A Historic Milestone
From the Alan Katz healthcare blog;
History was made today. The Senate Health, Education, Labor and Pensions Committee approved comprehensive health care reform legislation, the first Congressional committee to do so in decades. Never mind that the bill is well to the left of the emerging consensus concerning health care reform. Never mind that it passed on a party line 13-10 vote. What is meaningful is that a congressional committee moved comprehensive health care reform forward. Significantly, three House committees are likely to follow suit within the next three-to-four weeks.
The legislation approved by the Senate HELP Committee, which carriers a $600 billion price tag, would require individuals to obtain coverage, employers to help their workers pay for it, and carriers to accept all applicants regardless of their health conditions. Individuals and families earning up to 400 percent of the Federal Poverty Level ($88,000 for a family of four) would be eligible for subsidies. The Associated Press provides additional information and reaction to the Committees vote, but in my mind, the details are secondary. The vote itself is what is significant. Remember, the Clinton Administration health care reform proposal was never voted upon by any Congressional Committee.
Read the rest here.
History was made today. The Senate Health, Education, Labor and Pensions Committee approved comprehensive health care reform legislation, the first Congressional committee to do so in decades. Never mind that the bill is well to the left of the emerging consensus concerning health care reform. Never mind that it passed on a party line 13-10 vote. What is meaningful is that a congressional committee moved comprehensive health care reform forward. Significantly, three House committees are likely to follow suit within the next three-to-four weeks.
The legislation approved by the Senate HELP Committee, which carriers a $600 billion price tag, would require individuals to obtain coverage, employers to help their workers pay for it, and carriers to accept all applicants regardless of their health conditions. Individuals and families earning up to 400 percent of the Federal Poverty Level ($88,000 for a family of four) would be eligible for subsidies. The Associated Press provides additional information and reaction to the Committees vote, but in my mind, the details are secondary. The vote itself is what is significant. Remember, the Clinton Administration health care reform proposal was never voted upon by any Congressional Committee.
Read the rest here.
Tuesday, July 7, 2009
Why women's financial needs are different...
We are hosting our first WOW Seminar (Women's opportunity for Wealth). This intimate meeting will be for women only and is only open to 8 attendees.
We will be in a beautiful setting in Atherton, CA. For more info click on events on the right side of our blog. You can also RSVP at events@smbinsure.com.
From an article on MSN:
We will be in a beautiful setting in Atherton, CA. For more info click on events on the right side of our blog. You can also RSVP at events@smbinsure.com.
From an article on MSN:
Why are Women's Financial Needs Different?
At first glance, it may be difficult to believe that women's financial needs are all that different from men's. However, while the general principles of financial planning are universal, women face unique challenges that amount to different financial needs.- Women live longer than men (an average of 7 years) so they need 20% more for retirement.
- On average, women earn 25% less than men.
- Since women tend to take time off to raise children or take care of parents (women take off approximately 11 years more from work than men), they save less than men do for retirement.
- After earning lower salaries for fewer years, women's social security benefits are about half of men's.
- The majority of women had certificates of deposit (CDs) in their retirement savings accounts when a more aggressive investment vehicle was more appropriate.
The Consequences are Serious.
- Almost 1 in 4 women are broke within two months of a husband passing away.
- Over 75% of all women are eventually widowed at an average age of 56.
- 53% of women are not covered by a pension compared to only 22% of men.
- A staggering 87% of the poverty stricken elderly are women.
Saturday, June 27, 2009
Side-by-Side Comparison of Major Health Care Reform Proposals
In Congress, a number of comprehensive reform proposals have been announced as the debate begins over how to overhaul the health care system. This interactive side-by-side compares the leading comprehensive reform proposals across a number of key characteristics and plan components. Included in this side-by-side are proposals for moving toward universal coverage that have been put forward by the President and Members of Congress.
This is the most comprehensive and easy to follow outline of the major proposals on the table. It has been updated as of 6/23/09.
Find it here.
This is the most comprehensive and easy to follow outline of the major proposals on the table. It has been updated as of 6/23/09.
Find it here.
Friday, June 19, 2009
Only 59% of consumers know about HSA's...
NEW YORK, June 3 /PRNewswire/ -- The Guardian Life Insurance Company of America (Guardian), a leading provider of employee benefits for small and mid-sized companies, today announced the results of a comprehensive survey on consumers' attitudes and beliefs regarding healthcare coverage, including health savings accounts (HSAs) and high-deductible health plans (HDHPs).
The Benefits & Behavior: Spotlight on Consumer-Driven Health Plans survey (the survey) revealed that there is still widespread uncertainty about healthcare coverage options. Six years after HSAs were introduced as part of the solution to reducing healthcare costs, only 59% of consumers know about them and more than half of those who are aware do not understand key features of HSAs.
Read the rest here.
The Benefits & Behavior: Spotlight on Consumer-Driven Health Plans survey (the survey) revealed that there is still widespread uncertainty about healthcare coverage options. Six years after HSAs were introduced as part of the solution to reducing healthcare costs, only 59% of consumers know about them and more than half of those who are aware do not understand key features of HSAs.
Read the rest here.
Thursday, June 11, 2009
Public Health Insurance Plan...
The Democrats in the House unveiled the outlines of their healthcare reform bill on June 9 that includes a government-backed health plan option to increase coverage. Already powerful lobbies are lining up against this possibility, including the AMA and the health insurance industry, claiming an end to the employer-provided health coverage system if this plan is adopted. Lessons from Massachusetts and projections from studies conducted by the insurance industry itself tell us that the likeliest scenario will depend on the plan details.
Wednesday, June 10, 2009
Launch Silicon Valley Winners Announced...
Yesterdays event at Launch Silicon Valley was very exciting. If you are interested in technology and the latest ideas that are being turned into companies, you can check out the results below;
Session Winners announced for Launch: Silicon Valley 2009
Yesterday, Tues June 9, 30 companies, including a last minute substitute, byjobi, presented to a capacity crowd at Launch: Silicon Valley 2009. Great presentations, lots of energy, and some tight voting in each session for "the company most likely to succeed." Videos of their pitches & copies of their presentation slides are available at http://launch2009.fordela.com (courtesy of Fordela, www.fordela.com)
Winners of the 6 sessions as follows:
Session 1 - Next Generation Internet......eCitySky
Session 2 - Technology 1.....................
Session 3 - N. G. Internet/Mobile...........
Session 4 - Technology 2.....................Replay
Session 5 - Mobile........................
Session 6 - CleanTech.....................
Session Winners announced for Launch: Silicon Valley 2009
Yesterday, Tues June 9, 30 companies, including a last minute substitute, byjobi, presented to a capacity crowd at Launch: Silicon Valley 2009. Great presentations, lots of energy, and some tight voting in each session for "the company most likely to succeed." Videos of their pitches & copies of their presentation slides are available at http://launch2009.fordela.com (courtesy of Fordela, www.fordela.com)
Winners of the 6 sessions as follows:
Session 1 - Next Generation Internet......eCitySky
Session 2 - Technology 1.....................
Session 3 - N. G. Internet/Mobile...........
Session 4 - Technology 2.....................Replay
Session 5 - Mobile........................
Session 6 - CleanTech.....................
Tuesday, June 2, 2009
health industry delivers health savings plan to Obama
The Associated Press -
Jun. 1: Washington - Health industry officials sought Monday to make good on a $2 trillion savings proposal announced with great fanfare at the White House, but they came up short by several hundred billion dollars.
Nevertheless, the officials claimed success in producing solid proposals in time for a deadline set by President Barack Obama after a White House photo op May 11 where they promised to curb their own costs to help his health care agenda.
Obama asked for a progress report by early June and the five industry groups and one labor union delivered it on Monday. They sent the White House a letter along with a series of cost-savings proposals they said could total $1 trillion to $1.7 trillion in savings over a decade.
"What you've seen is the coming together of some really unlikely bedfellows and it really is very important," said Dr. Nancy Nielsen, president of the American Medical Association. "This is a very serious collaborative effort."
The groups identified three big areas for savings: $150 billion to $180 billion from more-efficient use of health care services, $350 billion to $850 billion from better managing chronic diseases, and $500 billion to $700 billion through administrative and business improvements such as standardizing claim forms.
The groups — insurers, doctors, hospitals, drug makers, medical device manufacturers and a leading health care union — contended that the savings could be even bigger because they were conservative in their estimates and some of the ideas in their proposal hadn't been studied enough to be quantified.
Jun. 1: Washington - Health industry officials sought Monday to make good on a $2 trillion savings proposal announced with great fanfare at the White House, but they came up short by several hundred billion dollars.
Nevertheless, the officials claimed success in producing solid proposals in time for a deadline set by President Barack Obama after a White House photo op May 11 where they promised to curb their own costs to help his health care agenda.
Obama asked for a progress report by early June and the five industry groups and one labor union delivered it on Monday. They sent the White House a letter along with a series of cost-savings proposals they said could total $1 trillion to $1.7 trillion in savings over a decade.
"What you've seen is the coming together of some really unlikely bedfellows and it really is very important," said Dr. Nancy Nielsen, president of the American Medical Association. "This is a very serious collaborative effort."
The groups identified three big areas for savings: $150 billion to $180 billion from more-efficient use of health care services, $350 billion to $850 billion from better managing chronic diseases, and $500 billion to $700 billion through administrative and business improvements such as standardizing claim forms.
The groups — insurers, doctors, hospitals, drug makers, medical device manufacturers and a leading health care union — contended that the savings could be even bigger because they were conservative in their estimates and some of the ideas in their proposal hadn't been studied enough to be quantified.
Saturday, May 30, 2009
a wellness program already available for you...
Most health insurance companies already have tools and resources built into your current health plan. Depending on the company and plan you can get discounts and even cash for participating.
Check with your provider or broker. For example, if you are with Kaiser they have a plan for members (just get a username/password) with the following:
Check with your provider or broker. For example, if you are with Kaiser they have a plan for members (just get a username/password) with the following:
What you'll get
Healthy lifestyle programs give you ongoing support based on your unique needs. Some of the features available to you:- a personalized plan to reach your goals
- tools to track and monitor your progress
- exercise and stretching videos
- relaxation and guided imagery podcasts
- health news
- and more
Do they work?
Yes. But don't take our word for it. Participants report these encouraging results:- 55% of Balance users lost weight after 6 months.
- 58% of Relax users had a decrease in symptoms of excess stress.
- 91% of Nourish users improved their eating habits.
- 52% of Breathe users were still off tobacco after 6 months.
- 78% of Care for Pain users were better able to manage pain within 30 days.
Wednesday, May 27, 2009
Thursday, May 14, 2009
Congress plans incentives for healthy habits
I went running again last night. Does that count?
Providing healthy incentives for employees making healthy decisions makes a difference.
New York Times -
May 11: Washington - In its effort to overhaul health care, Congress is planning to give employers sweeping new authority to reward employees for healthy behavior, including better diet, more exercise, weight loss and smoking cessation. A web of federal rules limits what employers and insurers can do now.
Congress is seriously considering proposals to provide tax credits or other subsidies to employers who offer wellness programs that meet federal criteria. In addition, lawmakers said they would make it easier for employers to use financial rewards or penalties to promote healthy behavior among employees.
Two Democratic senators working on comprehensive health legislation, Max Baucus of Montana, the chairman of the Finance Committee, and Tom Harkin of Iowa, have taken the lead in devising such incentives. “Prevention and wellness should be a centerpiece of health care reform,” said Mr. Harkin, who regularly climbs the stairs to his seventh-floor office on Capitol Hill.
The White House agrees. One of President Obama’s eight principles for health legislation is that it must “invest in prevention and wellness,” a goal espoused in almost identical words by Republican senators like John Cornyn of Texas and Orrin G. Hatch of Utah.
Providing healthy incentives for employees making healthy decisions makes a difference.
New York Times -
May 11: Washington - In its effort to overhaul health care, Congress is planning to give employers sweeping new authority to reward employees for healthy behavior, including better diet, more exercise, weight loss and smoking cessation. A web of federal rules limits what employers and insurers can do now.
Congress is seriously considering proposals to provide tax credits or other subsidies to employers who offer wellness programs that meet federal criteria. In addition, lawmakers said they would make it easier for employers to use financial rewards or penalties to promote healthy behavior among employees.
Two Democratic senators working on comprehensive health legislation, Max Baucus of Montana, the chairman of the Finance Committee, and Tom Harkin of Iowa, have taken the lead in devising such incentives. “Prevention and wellness should be a centerpiece of health care reform,” said Mr. Harkin, who regularly climbs the stairs to his seventh-floor office on Capitol Hill.
The White House agrees. One of President Obama’s eight principles for health legislation is that it must “invest in prevention and wellness,” a goal espoused in almost identical words by Republican senators like John Cornyn of Texas and Orrin G. Hatch of Utah.
Wednesday, May 13, 2009
Health and Wellness
If you are a customer (business or individual) you should be aware of the great tools offered by Blue Shield at no cost to you:
Your employees can turn to Blue Shield's many prevention and wellness programs for additional help in managing their physical, psychological, and lifestyle well-being.
Wellness Discount Programs: As Blue Shield members, your employees receive discounts and access to popular, health-related programs and plans, including Weight Watchers, 24 Hour Fitness, and drugstore.com.
NurseHelp 24/7 (PDF, 62KB): Members can contact an experienced registered nurse for immediate and reliable answers to their health questions 24 hours a day, seven days a week.
LifeReferrals 24/7 (PDF, 108KB): This program offers our members referrals to master's-level counselors and a team of experienced professionals ready to assist them with personal, family, financial, legal, and work-related issues.
Lifepath ResourcesSM offer a variety of professional services that support a healthy lifestyle and informed healthcare decisions. Download the employer brochure (PDF, 87KB) or the employee brochure (PDF, 84KB) to learn more.
Lifepath Decision Guide: Members can research and compare hospitals, treatment options and medications.
Blueshieldca.com: Members, employers, producers and providers can access health and wellness and benefit information at any time. Examples of special services are:
RelayHealth: Members who choose physicians that participate in this program can conduct secure online visits with their doctor and request appointments and referrals.1
Direct-to-Physician: Delivers clinical reminders and patient-specific alerts to physicians.
Healthy Lifestyle Rewards: This interactive, online program is designed to help members and their families adopt and maintain healthy lifestyle behaviors. Learn how to promote Healthy Lifestyle Rewards to your employees.
Prenatal education: New parents can find healthy lifestyle guidance before, during and after pregnancy.
Preventive health guidelines: Members can learn about health screenings, immunizations and other health checkups.
You can find the info here.
Your employees can turn to Blue Shield's many prevention and wellness programs for additional help in managing their physical, psychological, and lifestyle well-being.
Wellness Discount Programs: As Blue Shield members, your employees receive discounts and access to popular, health-related programs and plans, including Weight Watchers, 24 Hour Fitness, and drugstore.com.
NurseHelp 24/7 (PDF, 62KB): Members can contact an experienced registered nurse for immediate and reliable answers to their health questions 24 hours a day, seven days a week.
LifeReferrals 24/7 (PDF, 108KB): This program offers our members referrals to master's-level counselors and a team of experienced professionals ready to assist them with personal, family, financial, legal, and work-related issues.
Lifepath ResourcesSM offer a variety of professional services that support a healthy lifestyle and informed healthcare decisions. Download the employer brochure (PDF, 87KB) or the employee brochure (PDF, 84KB) to learn more.
Lifepath Decision Guide: Members can research and compare hospitals, treatment options and medications.
Blueshieldca.com: Members, employers, producers and providers can access health and wellness and benefit information at any time. Examples of special services are:
RelayHealth: Members who choose physicians that participate in this program can conduct secure online visits with their doctor and request appointments and referrals.1
Direct-to-Physician: Delivers clinical reminders and patient-specific alerts to physicians.
Healthy Lifestyle Rewards: This interactive, online program is designed to help members and their families adopt and maintain healthy lifestyle behaviors. Learn how to promote Healthy Lifestyle Rewards to your employees.
Prenatal education: New parents can find healthy lifestyle guidance before, during and after pregnancy.
Preventive health guidelines: Members can learn about health screenings, immunizations and other health checkups.
You can find the info here.
Saturday, May 9, 2009
wellness, tax credits and other ways to improve your employees health
I keep talking about this as it is central to our message; wellness, prevention and behavioral change is key to keeping your health costs down. However, with small group employers (under 50 employees) there has been no way to see measurable results when implementing such a plan.
We believe those changes are coming. In some states (see below) the conversation is already on the table. I had a discussion last week with Kaiser to see what they are up to. You can see some of it in a post from a few days ago on presenteeism. I admire what they have been doing as it is on the cutting edge of wellness, prevention and developing tools to allow employees access to better care. Aetna and others are doing similar things.
I found this article on Iowa State and some of their discussions for small businesses - highlights:
We believe those changes are coming. In some states (see below) the conversation is already on the table. I had a discussion last week with Kaiser to see what they are up to. You can see some of it in a post from a few days ago on presenteeism. I admire what they have been doing as it is on the cutting edge of wellness, prevention and developing tools to allow employees access to better care. Aetna and others are doing similar things.
I found this article on Iowa State and some of their discussions for small businesses - highlights:
- Seventy five percent of costs related to health care in the United States can be attributable to chronic disease (Centers for Disease Control and Prevention [CDC], 2003).
- Behavioral choice is one factor that contributes to the prevalence of these health conditions
- Investment in wellness programs return $4.91 for every dollar spent
- Small businesses lack the resources to implement wellness initiatives
- Iowa is looking into tax credits for such initiatives
- Qualified wellness initiatives must include assessment, evaluation and education
Thursday, May 7, 2009
GE to spend $6 billion on healthcare
General Electric plans to spend $6 billion over the next six years in an effort to improve health-care quality and drive down costs to consumers, the company announced Thursday.
read the rest here but the parts that stood out to me are areas we are focusing on now with small/medium employers:
"Consumers and providers are calling for more quality and transparency and access," Immelt said. "Health care needs new solutions. We must innovate with smarter processes and technologies that help doctors and hospitals deliver better health care to more people at a lower cost."
The company will continue to focus on wellness and safety programs at its work sites and will work on partnerships with health-care providers to reduce costs, he said. GE will turn its 175 health centers into wellness clinics and increase employee incentives for healthy activities, the company said.
GE's goals for the program are to reduce the cost of procedures using GE technologies and services by 15%, to increase access to health care services by 15% and to improve the quality and efficiency of health care by 15 percent.
read the rest here but the parts that stood out to me are areas we are focusing on now with small/medium employers:
"Consumers and providers are calling for more quality and transparency and access," Immelt said. "Health care needs new solutions. We must innovate with smarter processes and technologies that help doctors and hospitals deliver better health care to more people at a lower cost."
The company will continue to focus on wellness and safety programs at its work sites and will work on partnerships with health-care providers to reduce costs, he said. GE will turn its 175 health centers into wellness clinics and increase employee incentives for healthy activities, the company said.
GE's goals for the program are to reduce the cost of procedures using GE technologies and services by 15%, to increase access to health care services by 15% and to improve the quality and efficiency of health care by 15 percent.
Thursday, April 30, 2009
Friday, April 24, 2009
10 Ways to Keep Health Coverage if You Lose Your Job
Top 4 that I found interesting from National Center for Health Policy Analysis: (read all 10 here)
6. Shop for Individual Coverage. There may be cheaper alternatives to COBRA, especially if you have no severe health problems. For example, a Dallas family of four with both parents in their 20s could buy a preferred provider organization (PPO) plan with a $2,000 deductible for a $4,680 annual premium. That same family's annual COBRA premium would be closer to $13,000, on average. If the family chose a $5,000 deductible, the annual premium would be less than $3,500. Some of these plans also qualify for an HSA, allowing the policy holder to set money aside tax-free to pay medical expenses. You can contact independent insurance agencies to compare policies or shop online at sites that compare prices, such as http://www.ehealthinsurance.com. Some insurers even offer short term medical "gap" coverage for people between jobs, retiring prior to Medicare eligibility, or not yet eligible for company benefits and for students about to graduate.
7. Even if You Are Uninsurable, You May Be Able to Get Insurance. Under federal law, people who have been continuously insured with no significant gaps in coverage (that is, no more than 62 days), cannot be denied individually purchased coverage because of health status. Different states enforce this federal requirement in different ways. Some states require insurers to accept all applicants, regardless of pre-existing conditions. However, in states with so-called guaranteed issue regulations, premiums are often two to three times as high as those in states that allow insurers to charge premiums based on health status. More commonly, 35 states have high-risk pools to insure those who are turned down by commercial insurers. Twenty-nine states requires insurers to make at least one "guaranteed issue" plan available to those who have been continuously covered, regardless of health status.
9. Consider a Limited Benefit Plan. Limited benefit plans - sometimes called mini-meds - have a maximum annual benefit. They may pay for a set number of office visits per year and may only cover generic drugs. These policies usually also cover some hospitalization. However, benefits may be capped at a maximum of, say, $10,000, $25,000 or possibly $50,000 in a given year. When Tennessee moved many families on its Medicaid program (TennCare) to limited benefit plans, about 98 percent of enrollees never exceeded their $25,000 annual maximum.
10. Join a Concierge Physician Practice. Some innovative physician practices provide primary care in return for monthly (or annual) fees. Dallas-area physician Nelson Simmons offers a package of services for less than $500 a year. About 70 small business owners pay $40 per employee per month for Simmons' plan. In return, employees get same-day primary care services and steep discounts. Enrollees must pay out-of-pocket for specialist care, surgeries and diagnostic tests, but Simmons negotiates the rates with providers. The total out-of-pocket cost is typically much lower than what you would pay as an uninsured individual. For example, a tonsillectomy for a child costs less than half of the normal fee ($2,100 versus $4,800) and an MRI scan can be less than one-fourth the standard rate ($350 versus $1,600).
An Arizona-based firm, the No Insurance Club, has a package that allows individuals to see a primary care physician up to 12 times per year in return for an annual fee of $480. A family can share 16 visits per year for $680. Generic drugs are discounted and most routine lab tests are low cost or included in the annual fee. This type of arrangement may even be combined with a catastrophic health plan to ensure a major illness doesn't turn into a financial catastrophe. Physicians are joining the practice in selected cities nationwide.
6. Shop for Individual Coverage. There may be cheaper alternatives to COBRA, especially if you have no severe health problems. For example, a Dallas family of four with both parents in their 20s could buy a preferred provider organization (PPO) plan with a $2,000 deductible for a $4,680 annual premium. That same family's annual COBRA premium would be closer to $13,000, on average. If the family chose a $5,000 deductible, the annual premium would be less than $3,500. Some of these plans also qualify for an HSA, allowing the policy holder to set money aside tax-free to pay medical expenses. You can contact independent insurance agencies to compare policies or shop online at sites that compare prices, such as http://www.ehealthinsurance.com. Some insurers even offer short term medical "gap" coverage for people between jobs, retiring prior to Medicare eligibility, or not yet eligible for company benefits and for students about to graduate.
7. Even if You Are Uninsurable, You May Be Able to Get Insurance. Under federal law, people who have been continuously insured with no significant gaps in coverage (that is, no more than 62 days), cannot be denied individually purchased coverage because of health status. Different states enforce this federal requirement in different ways. Some states require insurers to accept all applicants, regardless of pre-existing conditions. However, in states with so-called guaranteed issue regulations, premiums are often two to three times as high as those in states that allow insurers to charge premiums based on health status. More commonly, 35 states have high-risk pools to insure those who are turned down by commercial insurers. Twenty-nine states requires insurers to make at least one "guaranteed issue" plan available to those who have been continuously covered, regardless of health status.
9. Consider a Limited Benefit Plan. Limited benefit plans - sometimes called mini-meds - have a maximum annual benefit. They may pay for a set number of office visits per year and may only cover generic drugs. These policies usually also cover some hospitalization. However, benefits may be capped at a maximum of, say, $10,000, $25,000 or possibly $50,000 in a given year. When Tennessee moved many families on its Medicaid program (TennCare) to limited benefit plans, about 98 percent of enrollees never exceeded their $25,000 annual maximum.
10. Join a Concierge Physician Practice. Some innovative physician practices provide primary care in return for monthly (or annual) fees. Dallas-area physician Nelson Simmons offers a package of services for less than $500 a year. About 70 small business owners pay $40 per employee per month for Simmons' plan. In return, employees get same-day primary care services and steep discounts. Enrollees must pay out-of-pocket for specialist care, surgeries and diagnostic tests, but Simmons negotiates the rates with providers. The total out-of-pocket cost is typically much lower than what you would pay as an uninsured individual. For example, a tonsillectomy for a child costs less than half of the normal fee ($2,100 versus $4,800) and an MRI scan can be less than one-fourth the standard rate ($350 versus $1,600).
An Arizona-based firm, the No Insurance Club, has a package that allows individuals to see a primary care physician up to 12 times per year in return for an annual fee of $480. A family can share 16 visits per year for $680. Generic drugs are discounted and most routine lab tests are low cost or included in the annual fee. This type of arrangement may even be combined with a catastrophic health plan to ensure a major illness doesn't turn into a financial catastrophe. Physicians are joining the practice in selected cities nationwide.
Tuesday, April 7, 2009
Massachusetts Healthcare Update
Boston Globe -
Apr. 7: On the third anniversary of Massachusetts' landmark health insurance overhaul, a new report shows that employers, consumers, and state government paid the same, proportionately, for health coverage after 2006 as they did the year before the initiative started.
The study, released yesterday from the Center for Health Law and Economics at the University of Massachusetts Medical School, found that employers contributed about half (48 percent) of the overall spending on coverage in Massachusetts in 2007. Individuals accounted for about a quarter of the total, and government - divided between the state and federal level - contributed about 27 percent.
"With all the criticism from the left and the right before health reform started - that individuals will have to pay more or that government will have to pay too much - this says both of the concerns are unfounded," said Michael Widmer, president of the Massachusetts Taxpayers Foundation, a business-funded public policy group. The foundation played a key role in creating the 2006 law.
The report, commissioned by the Blue Cross Blue Shield of Massachusetts Foundation, found that overall spending on healthcare coverage increased $4.7 billion, or 23 percent. Nearly $21 billion was spent on coverage in 2005, while $25.5 billion was spent in 2007. But the majority of the increase, the report found, was not from the new law.
Sixty percent of the rise was due to healthcare inflation unrelated to the law. Another 31 percent was linked to new enrollment in already-existing programs, such as employer-paid healthcare or Medicaid, according to the report.
And the debate continues...
Also today from the Sac Bee:
Apr. 7: Gov. Arnold Schwarzenegger briefly returned his attention Monday to universal health care, a subject he hoped to make part of his legacy before the state had to focus on the more basic task of paying its bills amid a multibillion-dollar deficit.
The Republican governor, along with Washington Gov. Chris Gregoire, hosted the fifth and final regional White House health care forum in Los Angeles. The town-hall style meeting came as Congress is constructing a health care overhaul plan.
President Barack Obama and congressional leaders have taken the lead on health care this year after states and cities pursued their own universal coverage efforts in recent years. "The action is now," Schwarzenegger said. "Not acting would be irresponsible. We've got to act and we've got to create the action, and this is the year we have got to do it."
In California, lawmakers last year rejected a plan that would have cost nearly $15 billion. Proponents, including Schwarzenegger, said the plan would have been self-funded. But opponents feared that it would have worsened the state's budget deficit.
Congressional Democrats have built a framework that would require all people to have health insurance while demanding that insurers cover all patients regardless of pre-existing conditions, similar to California's plan. But the proposal has big questions, such as who will foot the bill and to what extent a public alternative to private health insurance should exist.
Apr. 7: On the third anniversary of Massachusetts' landmark health insurance overhaul, a new report shows that employers, consumers, and state government paid the same, proportionately, for health coverage after 2006 as they did the year before the initiative started.
The study, released yesterday from the Center for Health Law and Economics at the University of Massachusetts Medical School, found that employers contributed about half (48 percent) of the overall spending on coverage in Massachusetts in 2007. Individuals accounted for about a quarter of the total, and government - divided between the state and federal level - contributed about 27 percent.
"With all the criticism from the left and the right before health reform started - that individuals will have to pay more or that government will have to pay too much - this says both of the concerns are unfounded," said Michael Widmer, president of the Massachusetts Taxpayers Foundation, a business-funded public policy group. The foundation played a key role in creating the 2006 law.
The report, commissioned by the Blue Cross Blue Shield of Massachusetts Foundation, found that overall spending on healthcare coverage increased $4.7 billion, or 23 percent. Nearly $21 billion was spent on coverage in 2005, while $25.5 billion was spent in 2007. But the majority of the increase, the report found, was not from the new law.
Sixty percent of the rise was due to healthcare inflation unrelated to the law. Another 31 percent was linked to new enrollment in already-existing programs, such as employer-paid healthcare or Medicaid, according to the report.
And the debate continues...
Also today from the Sac Bee:
Apr. 7: Gov. Arnold Schwarzenegger briefly returned his attention Monday to universal health care, a subject he hoped to make part of his legacy before the state had to focus on the more basic task of paying its bills amid a multibillion-dollar deficit.
The Republican governor, along with Washington Gov. Chris Gregoire, hosted the fifth and final regional White House health care forum in Los Angeles. The town-hall style meeting came as Congress is constructing a health care overhaul plan.
President Barack Obama and congressional leaders have taken the lead on health care this year after states and cities pursued their own universal coverage efforts in recent years. "The action is now," Schwarzenegger said. "Not acting would be irresponsible. We've got to act and we've got to create the action, and this is the year we have got to do it."
In California, lawmakers last year rejected a plan that would have cost nearly $15 billion. Proponents, including Schwarzenegger, said the plan would have been self-funded. But opponents feared that it would have worsened the state's budget deficit.
Congressional Democrats have built a framework that would require all people to have health insurance while demanding that insurers cover all patients regardless of pre-existing conditions, similar to California's plan. But the proposal has big questions, such as who will foot the bill and to what extent a public alternative to private health insurance should exist.
Monday, April 6, 2009
Health 2.0 Conference
If you are planning on being in Boston later this month and interested in healthcare and emerging technology, then you may want to visit the Health 2.0 conference. If you cannot make Boston then check out the website as well as video from last year's (and the 1st) here in San Francisco.
Below is an outline from their website on what "health 2.0" means:
So what’s the definition of Health2.0?
Actually there are several. Defining Health2.0 is also a user-generated phenomenon. You can choose your own definition. Scott Shreeve has one here. Jos Bakker from Philips disagrees and uses another more limited one—his is largely based on the O’Reilly definition of Web2.0. Ingenix CEO Andy Slavitt has a third. David Kibbe from AAFP has recently been talking about it too, and Cleveland Clinic’s John Sharp gave a good talk on it in 2007. Most recently Ted Eytan has been creating a definition including discussion of “participatory medicine”.
Our definition is currently focusing on user-generated aspects of Web2.0 within health care but not directly interacting with the mainstream health care system. That means, a) search, b) communities, c) tools for individual and group consumer use. But clearly there are blurring boundaries between all these, and the question of connecting Health2.0 user-generated content to the wider health care system—which hasn’t exactly adopted Web1.0 with a flourish yet—is coming into closer focus as more clinicians and organizations start to use these technologies to communicate with consumers.
There is huge room for debate about whether we’re talking about limited use of tools and technologies or a wider movement to change the whole healthcare system—or perhaps if it’s just all buzzwords with no substance.
If you aren't going to Boston come by and visit us and we'll talk about it.
Below is an outline from their website on what "health 2.0" means:
So what’s the definition of Health2.0?
Actually there are several. Defining Health2.0 is also a user-generated phenomenon. You can choose your own definition. Scott Shreeve has one here. Jos Bakker from Philips disagrees and uses another more limited one—his is largely based on the O’Reilly definition of Web2.0. Ingenix CEO Andy Slavitt has a third. David Kibbe from AAFP has recently been talking about it too, and Cleveland Clinic’s John Sharp gave a good talk on it in 2007. Most recently Ted Eytan has been creating a definition including discussion of “participatory medicine”.
Our definition is currently focusing on user-generated aspects of Web2.0 within health care but not directly interacting with the mainstream health care system. That means, a) search, b) communities, c) tools for individual and group consumer use. But clearly there are blurring boundaries between all these, and the question of connecting Health2.0 user-generated content to the wider health care system—which hasn’t exactly adopted Web1.0 with a flourish yet—is coming into closer focus as more clinicians and organizations start to use these technologies to communicate with consumers.
There is huge room for debate about whether we’re talking about limited use of tools and technologies or a wider movement to change the whole healthcare system—or perhaps if it’s just all buzzwords with no substance.
If you aren't going to Boston come by and visit us and we'll talk about it.
Thursday, April 2, 2009
New Cobra Law
There is a fair amount of confusion over a recent piece of legislation passed. The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA.
Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months.
The following link will take you to the COBRA Model Notices posted on the DOL site, including the Notice in Connection with Extended Election Periods.
http://www.dol.gov/ebsa/COBRAmodelnotice.html
Plans subject to the Federal COBRA provisions must send the Notice in Connection with Extended Election Periods to any assistance eligible individual (or any individual who would be an assistance eligible individual if a COBRA continuation election were in effect) who:
1. Had a qualifying event at any time from September 1, 2008 through February 16, 2009; and
2. Either did not elect COBRA continuation coverage, or who elected it but subsequently discontinued COBRA.
This notice includes information on ARRA’s additional election opportunity, as well as premium reduction information. This notice must be provided by April 18, 2009.
If you have additional questions or would like some guidance give us a call at 650-533-8387 and we would be happy to talk it through with you.
LEGAL CAVEAT:
As you know, our blog is for information purposes only and does not provide legal or health advice. This information should be reviewed with appropriate legal/health counsel.
Eligible individuals pay only 35 percent of their COBRA premiums and the remaining 65 percent is reimbursed to the coverage provider through a tax credit. The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months.
The following link will take you to the COBRA Model Notices posted on the DOL site, including the Notice in Connection with Extended Election Periods.
http://www.dol.gov/ebsa/COBRAmodelnotice.html
Plans subject to the Federal COBRA provisions must send the Notice in Connection with Extended Election Periods to any assistance eligible individual (or any individual who would be an assistance eligible individual if a COBRA continuation election were in effect) who:
1. Had a qualifying event at any time from September 1, 2008 through February 16, 2009; and
2. Either did not elect COBRA continuation coverage, or who elected it but subsequently discontinued COBRA.
This notice includes information on ARRA’s additional election opportunity, as well as premium reduction information. This notice must be provided by April 18, 2009.
If you have additional questions or would like some guidance give us a call at 650-533-8387 and we would be happy to talk it through with you.
LEGAL CAVEAT:
As you know, our blog is for information purposes only and does not provide legal or health advice. This information should be reviewed with appropriate legal/health counsel.
National Coalition on Health Care April 14, 2009
There is quite a bit of discussion about National Healthcare. This came through my desk today. If you are interested on the variety of options on the table you may want to attend this event in Sacramento:
"The future of health care – in the United States and here in California – could be changed fundamentally by decisions made in the next few months. The stakes – for the health and well-being of all of us, for the growth and competitiveness of our economy, and for our living standards – are enormous.
Speakers will include (in alphabetical order):
·John Arensmeyer, Founder and CEO, Small Business Majority
·Barbara Blake, State Secretary, United Nurses Associations of California
·Denny Delk, Member of the National Board, American Federation of Television and Radio Artists
·Ted Epperly, M.D., President, American Academy of Family Physicians
For a more detailed list of speakers and more information or to register click here.
"The future of health care – in the United States and here in California – could be changed fundamentally by decisions made in the next few months. The stakes – for the health and well-being of all of us, for the growth and competitiveness of our economy, and for our living standards – are enormous.
Speakers will include (in alphabetical order):
·John Arensmeyer, Founder and CEO, Small Business Majority
·Barbara Blake, State Secretary, United Nurses Associations of California
·Denny Delk, Member of the National Board, American Federation of Television and Radio Artists
·Ted Epperly, M.D., President, American Academy of Family Physicians
For a more detailed list of speakers and more information or to register click here.
Tuesday, March 31, 2009
Health Reimbursement Arrangements (HRA's)
If you are like most business owners, you are frustrated with the high cost of health insurance. The new administration is, like past ones, continuing to discuss alternatives.
Until the time comes that someone comes up with a plan it makes sense that you would continue to look for competitve, cost saving alternatives. In these tough economic times it's tougher than ever to increase profits let alone face high insurance costs.
One option to consider is to consider educating yourself on consumer driven healthplans. There is alot of information circulating in regard to these plans. They include a number of options including HSA, HRA, FSA (both employee and employer sponsored) and CDHP plans. For informatio on what these mean watch one of the videos on our partner links.
Today I will focus on HRA's otherwise known as Health Reimbursement Arrangements. HRA's have been around for a couple of decades and, yet, are not widely understood. If you are a large employer you have the ability to enter into a self-funded plan and typically, if designed correctly, capture some savings by taking on some additional risk and managing your plan expenses and administration.
In the small group (under 50 employees) the risk associated with self-funding is usually too high. However, an HRA allows you to accomplish a similar model without the risk. You purchase a high deductible plan (typically 30-50% savings). With the savings you put together an analysis that wil allow you to reimburse your employees a good portion of the deductible when they do to a doctor. If designed correctly you can realize great savings and improve the benefits offered to your employees.
Along with HSA plans HRA's are one of the fastest growing plans among several carriers on the market today. In January Kaiser released two new HRA plans. Today (April, 1 2009) Aetna is releasing a couple of extremely competitive HRA plans. If implemented correctly you can anticipate 20-40% savings without much change in the benefits offered to your employees.
Advantages of HRAs for employers include: (wikipedia)
Until the time comes that someone comes up with a plan it makes sense that you would continue to look for competitve, cost saving alternatives. In these tough economic times it's tougher than ever to increase profits let alone face high insurance costs.
One option to consider is to consider educating yourself on consumer driven healthplans. There is alot of information circulating in regard to these plans. They include a number of options including HSA, HRA, FSA (both employee and employer sponsored) and CDHP plans. For informatio on what these mean watch one of the videos on our partner links.
Today I will focus on HRA's otherwise known as Health Reimbursement Arrangements. HRA's have been around for a couple of decades and, yet, are not widely understood. If you are a large employer you have the ability to enter into a self-funded plan and typically, if designed correctly, capture some savings by taking on some additional risk and managing your plan expenses and administration.
In the small group (under 50 employees) the risk associated with self-funding is usually too high. However, an HRA allows you to accomplish a similar model without the risk. You purchase a high deductible plan (typically 30-50% savings). With the savings you put together an analysis that wil allow you to reimburse your employees a good portion of the deductible when they do to a doctor. If designed correctly you can realize great savings and improve the benefits offered to your employees.
Along with HSA plans HRA's are one of the fastest growing plans among several carriers on the market today. In January Kaiser released two new HRA plans. Today (April, 1 2009) Aetna is releasing a couple of extremely competitive HRA plans. If implemented correctly you can anticipate 20-40% savings without much change in the benefits offered to your employees.
Advantages of HRAs for employers include: (wikipedia)
- 20-40% Savings to your bottom line.
- Only contribute if employee goes to doctor.
- Reimbursements of qualified claims are tax-deductible for the employer.
- Contributions that employers make can be excluded from employees' gross income.
- Reimbursements may be tax free if the employee pays qualified medical expenses.
- Unused funds in the HRA can be rolled into future years for reimbursement.
- HRAs may be offered in conjunction with other employer-provided health benefits including Flexible Spending Accounts (FSAs).
- Employees do not have to be covered under any other health care plan to participate, unlike (for example) a Health Savings Account (HSA) which requires a High Deductible Health Plan.
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