JULY 2009

Second Annual Corporate Health Care Policy Forecast Survey

Last month two respected organizations announced the results of their second annual Corporate Health Care Policy Forecast Survey, measuring the current perspectives and attitudes of leading corporate benefits professionals on the direction of health care policy in the coming months.

By wide margins — and regardless of their personal political affiliation — the people who are responsible for structuring and managing employer-sponsored health plans expressed serious concerns about many features of health care reform that the President and several Congressional leaders have embraced and the absence of sufficient attention to improving the quality of health care and containing the costs of health coverage.

Health Reform “Exchange” Plan Would Have Big Implications for Employment-Based Benefits

A key element being discussed as part of health reform - the creation of a health insurance exchange that would offer new forms of insurance pooling, combined with an individual mandate and guaranteed issue - would restructure the health insurance market and has major implications for the existing employment-based benefits system that provides the majority of Americans with health coverage, according to a study released last month by a leading nonpartisan research organization.

The question of a health insurance connector/exchange and the various interdependent policy components has been central to the national health reform debate since the state of Massachusetts adopted that approach. The study examines issues related to managed competition and the use of a health insurance exchange for the purpose of addressing cost, quality, and access to health care services.

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JUNE 2009

New Mental Health Parity Law To Take Effect Soon

The Wellstone - Domenici Mental Health Parity and Addiction Equity Act of 2008 (The Wellstone-Domenici Parity Act), enacted into law on October 3, 2008, will end health insurance benefits inequity between mental health/substance use disorders and medical/surgical benefits for group health plans with more than 50 employees. The law becomes effective on January 1st, 2010. Under this new law, 113 million people across the country will have the right to non-discriminatory mental health coverage, including 82 million individuals enrolled in self-funded plans (regulated under ERISA), who cannot be assisted by State parity laws.

Study: Obesity Key Driver of Rising Health Care Costs

Underscoring the enormous strain that obesity places on our nation's health care system and economy at-large, the National Business Group on Health released new data documenting the staggering costs associated with obesity and called on Congress to make important tax changes to encourage employees to participate in employer-sponsored health and wellness programs. The briefing included highlights of Pitney Bowes innovative and nationally recognized strategies in combating obesity among its 35,000 employees.

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MAY 2009

Six-Year Study of Consumer-Directed Health Plans Gauges Savings

A six-year study of health care claims and utilization for members of a consumer-directed health (CDH) plans was recently released. The study demonstrates that their CDH members sustained savings for employers over a five-year period, with employee members getting the care they need.

Workplace Wellness Programs Fare Well During Economic Downturn

Many employers are increasing their employee wellness communications and most expect wellness budget cuts will be no greater than other cutbacks, because these programs help employees cope with issues brought about by the economic downturn. These are among the survey findings of a recent study.

Generic Drugs Can Be Good For Your Health And Your Wallet

According to results of a new survey, community-based programs led by employers are helping to expand consumer use of safe, effective, and lower-cost generic prescription drugs.

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APRIL 2009

DOL, IRS Provide Guidance for COBRA Premium Reduction Under ARRA

The American Recovery and Reinvestment Act (ARRA) signed into law by President Obama in mid-February included a temporary subsidy to help workers who have involuntarily lost their jobs maintain their healthcare insurance through COBRA. Last month the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) provided guidance for employers.

Ninth Circuit Ruling on San Francisco Health Ordinance Threatens Employer-Based Health System

The ERISA Industry Committee (ERIC), a Washington, D.C.-based trade association representing America's major employers, strongly criticized a decision of the Ninth Circuit Court of Appeals to deny a rehearing en banc of an earlier panel ruling holding that San Francisco's health security ordinance was not preempted by federal law. If the decision stands, it will pull out the linchpin that holds employer-provided health care coverage together.

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MARCH 2009

Economic Stimulus Includes Premium Subsidy for COBRA

The recently enacted American Recovery and Reinvestment Act, intended to provide economic stimulus and assist taxpayers at risk, includes a temporary subsidy to assist workers who have involuntarily lost their jobs to maintain their health care insurance through COBRA. The subsidy will cover 65% of the monthly premium for up to nine months. While the Internal Revenue Service (IRS) and the Department of Labor (DOL) are not expected to issue regulations pertaining to this act until mid-to-late March, employers should not wait to prepare.

Employers Take a Look At Who Is Covered Under Their Health Plan

Employer-provided health care plans are a prized benefit among employees and a costly benefit for employers. Continually rising health care costs have caused many employers to reexamine their plans, looking for money-saving options.

Employee Weight Loss Programs Offered By Half of Employers Who Provide Wellness Programs

Watching your weight? So are many employers. A recent survey conducted by the International Foundation of Employee Benefits Plans found that of those organizations that offer wellness programs, 49% offer a weight loss program.

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FEBRUARY 2009

Study Examines Issues in Capping Tax Exclusion of Health Coverage

The nonpartisan Employee Benefit Research Institute (EBRI) last month published a detailed study of the implications for employers and workers involved in capping the tax exclusion for employment-based health coverage, an issue that could come up during this year's expected debate over overhauling the nation's health care system.

Public Sector Employers Turn to Wellness and Disease Management Programs to Control Costs and Improve Quality

As employers nationwide struggle with rising health care costs, many have implemented a variety of cost saving initiatives. A recent health care survey found the majority of public sector employers are working to control costs by implementing disease management and wellness programs, instead of introducing consumer-driven health plans (CDHPs).

Using Health Information Technology in Hospitals Linked to Fewer Deaths, Lower Costs

A study published in the Archives of Internal Medicine, finds that when physicians in hospitals use health information technology (health IT) to its full potential there are fewer deaths, fewer complications, and lower health care costs. The study surveyed physicians from 41 hospitals in Texas treating a diverse group of patients across a variety of conditions including heart attack, heart failure, and pneumonia.

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JANUARY 2009

Rand Study Indicates Lower Drug Copays Better Than Cost Regulations

While imposing European-style prescription drug price regulations in the United States would generate modest cost savings, it would impose a larger burden in the future by stifling medical innovation that can extend lives.

Multiple Generations Look to Employers for Benefits Education

A recent study conducted by Harris Interactive and commissioned by Unum reveals that when it comes to employee benefits, two very different generations have something important in common: they both consider the workplace their best source of benefits education.

U.S. Workers Taking Steps To Lower Medical Costs

In the midst of an economic crisis, rising health costs are leading an increasing number of U.S. workers to take steps to reduce their own spending on medical care.

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DECEMBER 2008

Final Rules on Family and Medical Leave Published

The U.S. Department of Labor published a final rule on Nov. 17 to update its regulations under the 15-year-old Family and Medical Leave Act (FMLA) - a measure that will help workers and their employers better understand their rights and responsibilities, and speed the implementation of a new law that expands FMLA coverage for military family members.

Employers Want National Approach to Health Care-Still Believe Employer-Based System Works Best

While the majority of employers believe the best way to fix the broken health care system is a complete overhaul, they are confident that the U.S. should not move away from an employment based insurance system. In a recent survey of employers who sponsor health care plans, 64% believe that employer-based health care should continue to be the primary mechanism for benefits delivery.

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NOVEMBER 2008

Employees Want to Improve Their Health and Want Employer Help

Although employees want to improve their health, many are finding that the demands of work, personal life, and overall stress levels are making it difficult for them to achieve their health improvement goals.

The survey found that a vast majority of employees (88 percent) have taken steps to improve their health within the past year or have been regularly doing so for more than a year. However, nearly half of those surveyed (47 percent) say work demands are preventing them from leading a healthier life.

Survey Finds CDHP Consumers Are More Health And Cost Conscious

People enrolled in consumer directed health plans (CDHP) are more likely to budget for healthcare costs and participate in health and wellness programs, according to new survey.

The industry-wide survey also found that CDHP enrollees are 30 percent more likely to track their health expenses than those in more traditional health insurance plans and 27 percent more likely to ask their doctors about the cost of treatment.

Mental Health Parity Measure Tacked onto Wall Street Aid Bill

When the Congress and President Bush enacted legislation to bail out Wall Street last month, they tacked-on changes in mental health parity.

When implemented, this legislation will require that health insurance equally cover both mental and physical health - to assist those seeking treatment for mental health and substance use disorders.

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