From PR Newswire:
With the health care reform expected during newly elected President Obama's term, results of Cowden Associates, Inc.'s Eighth Annual Tri-State Area Employee Benefit Survey could prove to be a benchmark against which recent and upcoming healthcare reform legislation can be measured.
The survey was conducted in late fall 2008 through early 2009. All respondent data were returned before the inauguration of the new administration, providing tri-state employers with baseline data to gauge how their healthcare costs will be affected by healthcare reform.
"We're already starting to see how legislative activity is affecting employer-sponsored plan costs," said Cowden Associates Executive Vice President Vince Wolf. "For example, compliance with COBRA changes and mandated benefit changes, such as mental health parity, are expected to contribute to cost increases in the coming years."
At the same time, however, the promise of national healthcare reform can put downward pressure on other cost trends.
"Historically, when healthcare reform has been high on a new president's agenda, such as when President Clinton took office in 1993, some employee benefit costs have decreased," Wolf said. "I expect we will see both upward and downward pressure on cost trends. As 2009 unfolds, we'll get a much clearer sense of which direction particular trends will move under President Obama."
Cowden Associates, the region's leading independent human resources, compensation and employee benefit consulting firm, compiled results of its 2008-2009 survey from 230 employer participants throughout the tri-state region of Ohio, Pennsylvania and West Virginia. For-profit, nonprofit and governmental employers are among the participants. Size of employers ranged from less than 100 employees to more than 10,000.
Health care renewal costs for tri-state employers rose 7.2 percent in 2008-2009, compared with 5.7 percent in 2007-2008. This year's increase represents the first time in five years that the growth rate was not lower than the previous year's. In addition, this year marks the first time that the tri-state region's increase was higher than national reports of 6.8 percent.
Although premium costs increased, tri-state employers continue to shoulder the majority of premium cost. Employees share about the same percentage of cost as they did last year. In 2008-2009, employees contributed 20.1 percent for individual coverage and 25.5 percent for family coverage.
As employers search for options to reduce their health care costs, high-deductible health plans are an often-discussed alternative. Yet, according to Cowden Associates' survey, employers in the tri-state region are reluctant to provide HDHPs as their primary plan offering. Growth of the plans as the primary plan offering has remained relatively flat. In fact, 79 percent of survey participants report they are not interested in implementing or likely to implement HDHPs as a future offering.
Worksite wellness programs also continue to gain momentum as a cost-containment strategy. This year's survey found that 46.1 percent of participants have wellness programs in place and another 47 percent indicated they are considering such programs. Participants indicate that gift cards (26 percent), cash (23 percent) and reduced employee benefit contributions (14 percent) are incentives that help to drive participation.
"With a new president who has made health care reform one of his top priorities, the coming year could be one full of change for everyone who has a stake in employee benefits - from employers, to employees, to healthcare providers, to insurers," said Jere Cowden, president and CEO of Cowden Associates. "Our eighth-annual survey provides an excellent snapshot of where employers are today in terms of managing this substantial cost while balancing the need to provide a good benefits package that will attract and retain top talent. This year's survey also may serve as a benchmark against which recent and upcoming health care reform legislation can be measured."
UBA's Mink Pens Article for EBN March 2009
UBA Member Gary Mink, executive vice president of HR Benefit Advisors in Rochester, NY, has authored an article on how the economy is affecting stable-value funds for the March edition of Employer Benefit News. Here's an exerpt:
Remember the days when employees sat down with their HR/benefits representative to decide which of the available investment funds to include in a 401(k) retirement portfolio?
One fund looked like a sure thing -- conservative and boring, but safe. Thinking they couldn't go wrong, they may have allocated 50% or more of 401(k) savings to that fund, also known as the "stable-value fund."
Despite the comforting name and generally strong track record, stable-value funds aren't entirely stable anymore. Employee-investors can lose money, and the funds also carry a credit risk. While stable value fund managers try to maintain a stable $1 unit price, they can't guarantee it because the yield and underlying investments fluctuate.
Read the full article
UBA's Ron Dutton to Speak at SAVVY Conference March 2009
UBA Member Ron Dutton of R.J. Dutton, Inc., in Overland Park, KS, will be a speaker at the SAVVY Self-Funding Healthcare Conference & Expo on June 1-3 in Kansas City, MO.
Mr. Dutton, a UBA Board Member, will be speaking at a session titled "Financial Strategies for Self-Insured Plans." The event, targeted toward plan sponsors and employers, will also feature presentations by the Employee Benefits Security Administration, breakout sessions and nearly 100 exhibitors.
Registration costs $539 if you register on or before March 31. The cost is $589 after that date. For more information, please call 800.226.5205 or go to www.savvyemployerconference.com.
'Unbreakable Heart': Simons Featured in EBA Story Feb. 13, 2009
UBA Member Neil Simon of Independent Benefit Services in Rockville, MD, is the cover story in the February edition of Employee Benefit Adviser magazine. The story also appeared in Employee Benefit News online.
In the article, Mr. Simons, a UBA Board Member, shares how losing a long-time client can teach advisors some valuable, albeit painful, lessons. The article explores how IBS lost a key client in 2000 and how that prompted the company to change and become more successful than ever. The article also provides a short biography on Simons.
Read the article