Yesterday, Kristen Allison, president of Orange County-based Burnham Benefits Insurance Services, explained 5 of the top 10 benefits trends in 2011. Today, the rest of her top 10, and a new resource for 2011 that you’ll be turning to over and over throughout the year.
6. Reducing premiums through chronic disease management. Alarming rates of chronic diseases like diabetes and heart disease are taking their toll on Americans’ health and on employers’ bottom lines, since companies bear much of the cost associated with treatment.
A remarkably positive partnership has developed between companies and employees joining forces to improve their quality of life through health management and wellness programs. These targeted approaches to specific conditions (e.g., glucose levels, blood pressure, and cholesterol) and “knowing your numbers” through health screenings and health- risk assessments, help companies stay ahead of the cost curve by offering preventive care to at-risk employees and disease management that encourages healthy lifestyle behaviors in those who receive treatment.
Keep up on the differences between California and federal law with ERI’s comprehensive, fully updated desk reference, the 2011 Guide to Employment Law for California Employers.
Significant future savings in the form of avoided health care costs, reduced benefit and disability premiums, and improved morale, retention and productivity-plus an overwhelmingly positive response from employees-mean these programs are here to stay and will likely grow more extensive in years to come.
7. Turning to self -funded programs. Self-funded health care, where the employer assumes the financial risk for benefits claims payments and manages and administers the plan, is an appealing alternative to fully insured plans, because it reduces costs while improving cash flow.
Look for growing interest among all types of employers in this model this year. With HCR community rated requirements, employers will consider alternative funding arrangements to capture their favorable claim costs of their plan participants vs. subsidizing others.
8. Bundling benefits plans. Employers are capitalizing on premium discounts offered by carriers that combine medical plans with comprehensive specialty benefits such as dental, vision, life and disability. With just one team to administer benefits and one premium statement, organizations save money through lower administration fees. Plus, the more employees are enrolled and lines of coverage are bundled, the greater the savings.
Sign up for the 2011 Guide to Employment Law for California Employers and get a fully updated version sent to you automatically each year—it’s the easiest way to stay in compliance with all of your state and federal obligations.
9. Utilizing the Web. Despite initial reluctance to use the Internet for benefit administration, most employers are jumping on the information superhighway, recognizing not only the willingness of employees across all demographics to use a Web interface, but also how online tools simplify processes for HR departments.
Computer-based services such as online enrollment, downloading forms and documents, and access to benefit information and education are among the tech advances coming into daily use, while mobile-enacted information and services for the smartphone platform promise even greater efficiencies in the near future.
10. The loss of executive benefits. A casualty of the economic downturn and new healthcare reform legislation, executive benefits are now under greater scrutiny than ever before. Many companies were forced to weigh the competitive edge of executive benefits—an essential tool in attracting and retaining talented staff—providing the costs and risks they entail. Some employers had no choice but to set these policies aside as they struggled to stay afloat in challenging economic times. The new year is an opportunity for organizations to get creative with alternative incentives and retain key players.
Conclusion
The key take-away is that companies must get employees involved in their medical decisions, expenses and overall health in order to sustain viable, work-based benefits programs. As the economy slowly improves this year, the job market will become vital again, and companies who maintained robust programs will be at an advantage in meeting productivity goals and retaining desirable employees, while they make significant inroads into improving the health of American workers and their families.
It’s Not Just Healthcare You Need To Keep Up On in 2011…
…it’s everything. Benefits…wage/hour…recordkeeping…leaves…the list goes on and on. And it’s especially tricky for HR professionals in California, who often have to deal with an entirely different — and much more stringent — set of rules than the rest of the country does.
Fortunately, we’ve got all the answers for you in an easy-read one-stop reference, the 2011 Guide to Employment Law for California Employers.
This comprehensive binder gives you:
- Over 400 pages of reliable, plain-English guidance on key HR issues arranged by key topics in an easy-to-use, quick-reference format
- Highlights of the latest legal changes and developments from the past year
- Updates on new legislation and regulatory changes and what they mean for you in 2011
- Coverage of precedent-setting court decisions
- Quality overviews and analysis of both federal and California requirements
- And much, much more!
Order now for the special price of just $199—you’ll turn to it again and again in the year to come. Learn more here.
Executive Summary: Healthcare Reform for California Employers
Talking to employees about the benefits that mean the most to them is a valuable use of your time. There’s no point in knocking yourself out and busting the budget over something they really don’t care about all that much – and the only way to find out is to ask.
Talking to employees about the benefits that mean the most to them is a valuable use of your time. There’s no point in knocking yourself out and busting the budget over something they really don’t care about all that much – and the only way to find out is to ask.