Enrollment Services, Employee Surveys

Enrollment services. Do they really work? How can an employer or their benefits broker weed through all the promises?
Colonial Life puts their money where their mouth is, by offering employees the opportunity to rate the communication, knowledge, and professionalism of our enrollers with a simple online survey.
If you want to know the effectiveness of your benefits communication, let Colonial handle your enrollment and judge the results for yourself.

I have moved my blog.

I have moved my blog to Wordpress. Please follow the link and follow my new blog.
Thanks you.
J. Keith Johnson

The COBRA's Bite or How the Stimulus Bill Will Kill Business

The problem I see in this stimulus bill is the COBRA/state continuation element of the package. Far from stimulating the economy, it will create a tremendous burden for already strapped small business by requiring a 65% participation in COBRA premium, retroactive to last September 1st. (Aren't ex post facto laws unconstitutional? U. S. Constitution, Article 1, Section 9. I know it is in regard to criminal law. I just don't see how any punitive ex post facto law is moral.)

Granted, an employer may offset the premium with a credit against his payroll taxes, but every company I know is looking for income and sales, not costs and credits. In addition, I believe that insurance premiums are paid on a monthly basis, in advance, whereas a payroll tax credit would be quarterly, after the fact. Nice of Congress to create debt for businesses. Of course, they are the experts.

Oh, has anyone examined the effect this payroll tax short fall will create on the Ponzi scheme we call Social Security? Prior to the stimulus bill, we were robbing Peter to pay Paul. Now we're robbing both of them.

This is bad legislation, poorly conceived, poorly written, and soon to be poorly administered.

New COBRA requirements

This is from benefitsblog...

Late on Friday, the Senate approved the economic stimulus legislation sending the bill to the President for his signature. It is unclear when he will sign the legislation, but his signature is expected this week.
As I indicated last week, the bill contains a number of important COBRA revisions that plan sponsors will need to immediately implement. These provisions are discussed in more detail below. In addition, beginning March 1, 2009, the bill also increases the monthly amount for transit passes to the level allowed for parking, and the bill also makes certain changes with respect to the HIPAA privacy and security rules implemented as part of the health information technology provisions. For those who would like to review the actual language, I have attached Division B of the bill to this email. The COBRA provisions begin on page 396 of the PDF.
The COBRA revisions are effective March 1, 2009. Due to this very short deadline, a conference call has been scheduled for Wednesday between Treasury and the benefits community. We expect that a number of questions will be answered during that call. Due to the importance of Treasury input in this process, we will be distributing our Legal Alert after this call so that we can incorporate the guidance which is expected to flow from that call. With that in mind, the following is a summary of the final COBRA revisions.
COBRA Subsidy
The COBRA premium subsidy applies to involuntary losses of employment between September 1, 2008 and December 31, 2009. Under the subsidy, the qualified beneficiary would pay 35% of the applicable COBRA premium and 65% of the premium would be subsidized by the employer. The employer may then claim the amount of that subsidy as a credit against its payroll taxes. The subsidy would expire after 9 months, leaving the remaining months as unsubsidized. If a second qualifying event occurred during that timeframe, it appears that the qualified beneficiary would be able to continue utilizing the subsidy (e.G., a divorce or death). The bill requires a special 60-day election period for those who are eligible for the subsidy but failed to previously elect COBRA - e.g., an individual who terminated employment in October 2008 and who did not elect COBRA would receive a second chance to enroll currently. Further, the bill allows, but does not require, employers to allow current COBRA participants to switch to any other medical option under the employer’s plan. The COBRA provisions specifically do not apply to health FSAs. Finally, the subsidy starts to phase out for individuals with incomes above $125,000 for single and $250,000 for married couples.
COBRA Expansion
The House version of the bill would have expanded COBRA for those individuals who are at least 55 years old or who have at least 10 years of service. This provision was eliminated by the conference committee, and is not in the final bill.
Preparation for Change
A number of administrative revisions will be needed to implement the new COBRA provisions. These revisions include the following:
1. Employers/COBRA administrators will need to prepare a special enrollment notice and send that notice to all employees who terminated employment since September 1, 2008. These employees could then elect COBRA currently with the premium subsidy. COBRA would continue for the remainder of its original term.
2. Employers/COBRA administrators will need to prepare a special notice to existing COBRA participants informing them of the new premium subsidy and their new premiums going forward, and possibly allowing them the opportunity to change to another medical option offered by the employer. The bill includes a 60-day grace period that allows refunds of previously paid premiums.
3. Administrative procedures will need to be developed to implement all of the changes (e.g., new premium structure, new notices, and calculating the amount of the subsidy actually utilized each month so that the proper amount can be credited against the employer’s payroll taxes). In addition, the subsidy only applies to involuntary terminations. Failure of employers to properly identify those who are eligible for the subsidy will mean that the employer’s payroll taxes are unpaid, potentially subjecting employers to underpayment penalties.
4. Additional notices will need to be developed to inform COBRA participants when they reach the maximum subsidy limit.
5. Additional procedures and notices will need to be developed to allow high income enrollees to opt out of the subsidy. An attestation process is included in the final bill.
6. The existing COBRA initial notice and election notice will need to be modified to include the new subsidy rules on a going forward basis.
Some of these issues should be become clearer after the Treasury conference call on Wednesday. We will incorporate the Treasury guidance in our Legal Alert that will be sent later this week. If you have any questions, please feel free to contact me.
recovery_bill_div_b
Mark L. Stember
Kilpatrick Stockton LLPSuite 900607 14th Street, NWWashington, DC 20005t 202.508.5802f 202.585.0018
[?]

Why Is Health Care So Expensive?

Watch this link for an idea on why healthcare is so expensive and what we can do to control it.
http://www.youtube.com/watch?v=JYC2DJWU41s

New Creation Story

This link should take you to a tongue in cheek take on creation and health insurance.
Enjoy.

http://docs.google.com/Presentation?id=d3z83ct_13d7jj5cg4

Rising Cost of Insurance

http://docs.google.com/Presentation?id=dfk9fpgn_5gv7j35dn

This link will take you to a Google document presentation by Partners Insurance out of Arkansas. Please note the focus is on wellness and claims errors.
I believe that a shift to the consumer driven/one deductible plans will encourage the insured to monitor their costs and their bills. Once we take the waste out of the health delivery system we can start to control costs and, therefore, premium.

Short Term Disability

By J. Keith Johnson

One of the most overlooked coverages in America today is disability. We protect our home, our vehicle, our health, even our life, but we do not protect the one thing that pays for all of that, our paycheck.
Does this make sense?

In Madoff We Trust

This is an article written by Peter Schiff of Euro Pacific Capital.
December 16, 2008
In Madoff We Trust
As the multi-billion dollar Ponzi scheme orchestrated by Wall Street insider Bernard Madoff unravels in the media spotlight, the nation is being presented with a rare opportunity to understand the true nature of many of our most cherished financial structures. Hopefully we have the wisdom to connect the dots.Although the $50 billion loss engineered by Madoff is truly a staggering accomplishment (and was done using old-fashioned fraud rather than the mathematical wizardry that has characterized Wall Street’s recent larcenies) the size of the scheme pales in comparison to the multi-trillion dollar Ponzi structures run by the United States government. In fact, rather than looking to jail Madoff, President-elect Obama should consider making him our new Treasury secretary. If not that, at least make him the czar of something!
Madoff’s inspiration came from Charles Ponzi, the Italian-born American immigrant who promoted an investment plan in the early 1900s’ that traded postal coupons. Rather than paying investors from legitimate investment returns, Ponzi hit upon the innovative idea of paying out early investors with money collected from new investors. By creating an illusion of success, interest in his investment plan ballooned. Over time the schemes have become known by many other names, such as chain letters or pyramid schemes. They are united by the fact that they always fail in the end.
When the influx of new investors inevitably slows to the point where distributions to current investors can no longer be maintained, investors look to withdraw funds. When this happens, the entire structure falls apart. The profits received by those who “invested” early as well so any funds skimmed off by the promoter, are offset by all the losses of those who came late to the party.
To a large extent, the same concept has driven the major asset bubbles of the last decade. Given the ridiculously high valuations that were assigned to tech stocks and real estate during their respective booms, the only way the bubbles could be perpetuated was if newer “investors” could be found to pay even more outrageous prices (the greater fool). But when these new buyers balked, the whole structure crumbled. Although there was no Ponzi or Madoff to orchestrate these manias, the entire financial and economic apparatus of the country had successfully convinced the public that “investments” in tech stocks and condominiums were bullet proof and that the supply of new buyers was endless.
Unfortunately, the Ponzi economy doesn’t stop there. A chain letter is no more viable when run by governments than when run by private citizens. However, government orchestrated pyramids have the advantage of required participation. As a result, they can maintain the illusion of viability for several generations. But the longer such schemes operate the larger will be the losses when they ultimately collapse.
The Social Security Administration runs its “trust funds” with precisely the same methods used by Madoff and Ponzi. As money is collected by from current workers, the funds are then dispersed to those already receiving benefits. None of the funds collected are actually invested, so no investment returns are ever generated. Those currently paying into the system are expected to receive their returns based on the “contribution” made by future workers. This is the classic definition of a Ponzi scheme. The only difference is that Ponzi didn’t own a printing press.
The United States Government runs its own balance sheet based on the Ponzi principal as well. Our national debt always grows and never shrinks. As existing debt matures, proceeds are repaid by issuing new debt. Interest payments on existing debt are also made by selling new debt to investors. The whole scheme depends on an ever growing supply of new lenders, or the willingness of existing lenders, to continue to roll over maturing notes. Of course, as was the case with Madoff, if enough of our creditors want their money back, the music stops playing.
In Madoff’s case, the rug pulling was provided by the huge financial losses suffered by some of his clients in other non-Madoff investments. When enough of these clients looked to sell some of their apparently well-performing Madoff assets to help offset such losses, the scam collapsed. The same thing could befall the United States Government. Now that China and our other creditors are looking to spend some of their U.S. Treasury holdings to stimulate their own economies, look for a similar outcome with even more dire implications.
The main difference is that while Madoff took elaborate steps to conceal his scheme, the U.S. government operates in broad daylight. It truly is amazing how faith in government is so pervasive that many can believe that politicians will succeed where private individuals fail, and that governments are somehow immune to the economic laws that govern the rest of society. Like those unfortunate to have been duped by Madoff and Ponzi, the world is in for a rude awakening.

For a more in depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar denominated investments, read my new book “Crash Proof: How to Profit from the Coming Economic Collapse.”

Effective Benefits Communication

Effective Benefits Communications Saves Your Company Money, Time and Energy

by J. Keith Johnson
Agency Development Manager
Colonial Life


As health care costs continue to rise, it’s more important than ever that your employees understand and appreciate the benefits you provide for them. Along with increasing health insurance costs comes increasing competition for quality employees, and you want to attract and retain the best. In fact, the average turnover rate of top-performing employees is 17 percent at companies that offer rich benefits programs but poorly communicate them to workers, as opposed to 12 percent at businesses with less comprehensive programs but better communication strategies.[1]
A sound benefits package is a plus but only if employees know and understand what you make available to them. A quality voluntary benefits partner can help by providing professional, consistent communications throughout the entire enrollment process. As a result, employees will not only understand their benefits but also appreciate them.
Effective benefits communications has two integral phases: before the enrollment and during the enrollment. For each phase, your voluntary benefits partner should be able to deliver a wide range of services and capabilities.

Pre-Enrollment Communications
Custom Communications. A quality voluntary benefits provider can provide enrollment communications such as letters, fliers, PowerPoint presentations, brochures, e-mails, posters, tent cards — whatever works best to help employees learn the about the upcoming enrollment and the key details of the benefits offerings.
Group Meetings. To help provide background on the overall benefits program, highlight any major changes in the program and introduce any new offerings, the enrollment process should begin with a group employee meeting that covers key highlights of the benefits program.

Enrollment Communications Through One-on-One Sessions With a Benefits Professional
Advances in enrollment technology have made enrollments simpler and easier to administer; however, nothing can replace the value of having a trained benefits professional meet with employees individually to review and enroll their benefits. Two-way communications between a benefit professional and an employee is critical for effective benefits communications.
Using the latest enrollment technology, a benefits professional can help employees consider their personal benefits situation and see the impact of their benefits selections on their paycheck. Communication services can include:
· Helping employees verify and update basic employee data.
· Highlighting each employee’s existing benefits, pointing out what the employee contributes and what the employer contributes.
· Reviewing the employee’s benefits selections and how each affects the paycheck so the employee can see exactly what the deductions will be and, if pretaxing, what the savings can be.
· Showing the employee his or her entire benefits package, including paid time off, uniform costs or any specific benefits you want to highlight. Again, the employee can see his or her own contributions to the benefits package, as well as what you contribute.
· Providing a detailed listing of the employee’s selections and contributions as one last verification of plan information and premiums.

So what’s the advantage of effective benefits communication? You’ll save costs, time and energy — plus, you’ll gain greater employee satisfaction through personal, quality benefits communication.


About the Author
J. Keith Johnson is an Agency Development Manager for Colonial Life. Keith is responsible for marketing Colonial Life’s products, programs and services in the Kansas/Missouri area.
Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through their workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49 states, the District of Columbia and Puerto Rico. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group.
For more information about Colonial Life’s products and services or opportunities with the company, call Keith at 913-205-6396 or visit www.coloniallife.com.


[1] 2005 Watson Wyatt Worldwide WorkUSA® study on effective employee-driven financial results

Prescription price gouging?

This is an interesting article from the Miami Herald on a possible/probable cause for high prescription prices.
http://www.miamiherald.com/business/story/849177-p2.html

CMS requirements

Employers, health carriers, and their health insurance brokers are busy during a usual quiet time due to the government requiring dependent SSN's on all covered employee's. Extra requirements mean extra costs.

Benefits Solutions

Benefits Solutions to Health Insurance Dilemma

by J. Keith Johnson
Benefits Representative- Olathe, KS
Colonial Life


Rapidly rising health care costs and the plight of the uninsured have reached the status of nearly daily mention in most news media. As health care costs continue to increase, many businesses are moving toward high-deductible major medical plans in an effort to better manage benefits program costs. Yet this approach can put employees at greater financial risk, forcing them to pay the expanding difference between what their health insurance covers and what their medical care costs. In addition, premiums for employer-sponsored health insurance have been rising four times faster on average than workers’ earnings since 2000.1
While that’s bad enough news for workers with health insurance, it’s a potential disaster for those who don’t have health coverage to help buffer these costs. A recent Census Bureau report estimated 47 million Americans have no health coverage.2 Still more worrisome is the fact that most uninsureds belong to a family with at least one working member. 3
The good news is employers have access to two solutions to meet this health coverage dilemma:
§ A voluntary supplemental health insurance plan can help fill gaps in coverage under a high-deductible major medical plan, such as increased deductibles and out-of-pocket maximums.
§ A group limited benefit hospital confinement indemnity insurance plan for employees who don’t have access to major medical insurance through their workplace or their spouse’s workplace.

Voluntary Supplemental Health Insurance
With voluntary supplemental health insurance, businesses can offer their employees a solution to help fill coverage gaps and protect employees against increasing out-of-pocket expenses. These products typically pay lump-sum benefits for medical expenses resulting from inpatient hospitalization and rehabilitation unit or outpatient services, diagnostic testing, doctor’s office visits and wellness checkups. For example, an employee who has to go into the hospital may have to pay a $1,500 deductible before health insurance kicks in — money the employee has to pay up front. With voluntary supplemental health insurance, the employee would receive a lump-sum benefit payment for the inpatient confinement and could use it to help pay for the deductible.

Group Limited Benefit Hospital Confinement Indemnity Insurance
This type of insurance is a group product that provides benefits to help insureds pay many routine, noncatastrophic health care expenses. It’s not major medical coverage, and it isn’t a replacement for major medical coverage. Offered through the workplace at group rates, this plan can meet the need for affordable, limited and clearly defined health benefits for full-time and part-time workers who don’t have access to major medical insurance and need some coverage for basic, routine medical expenses. Coverage is available for:
Doctor’s office visits
Outpatient diagnostic and lab tests
Inpatient hospital stays
Surgery
Prescription drugs

With either plan, benefits communication plays a critical role in successful implementation. Consistent, clear communication through group and one-on-one meetings with employees helps ensure they understand what their plan covers and what it doesn’t. This leads to much greater satisfaction with the benefits plan. A quality voluntary benefits provider can deliver this service at no direct charge to the employer.
Rising health care costs and the resulting plight of the working uninsured are not likely to go away anytime soon. But innovative products like voluntary supplemental health insurance and group limited benefit hospital confinement indemnity insurance provide workable solutions for the health care cost issue.

About the Author
J. Keith Johnson is an agent for Colonial Life. A veteran of more than six years in the insurance and benefits industry, Mr. Johnson is responsible for marketing Colonial Life’s products, programs and services in the Kansas/Missouri area.
Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through their workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49 states, the District of Columbia and Puerto Rico. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group.
For more information about Colonial Life’s products and services or opportunities with the company, call J. Keith Johnson 913-205-6396 or visit www.coloniallife.com.
# # #


1 The Henry J. Kaiser Family Foundation, 2006 Employee Health Benefit Survey, September 26, 2006.
2 U.S. Census Bureau report, Aug. 28, 2007.
3 California Health Care Foundation, 2005.
4 “Growth Potential of Small Business Markets,” LIMRA, 2006.
5 “Statistics of U.S. Business,” U.S. Census Bureau, 2004.