Health costs are not sole success metric of investment in wellness programs

March 11th, 2013

Employers can greatly improve their employee health and wellness management programs’ chances of success by recognizing the relationships between workforce health, productivity and overall corporate performance, several experts say.

Management of employee health and productivity has evolved substantially in recent years, Thomas Parry, president of the San Francisco-based Integrated Benefits Institute, said at the 2013 IBI/NBCH Health & Productivity Forum late last month.

However, too many employers still rely on health costs as the sole success metric of their investment in employees’ health and well-being, he said at the forum, which was sponsored by the IBI and National Business Coalition on Health.

“It’s not that cost isn’t important, but it strikes me that we often miss one of the key aspects of health,” Mr. Parry said during the Feb 25-27 forum in Dallas. “Health and all of its dimensions influence the ability of the company to be successful through its people. That’s how health and human capital drive business performance.”

About 350 people attended the forum.

Sam Gilliland, chairman and CEO of Southlake, Texas-based Sabre Holdings Corp., said during a keynote speech that the travel technology company spent years investing in wellness and other programs designed to lower health care costs, but with little success. That was until 2004, when the company focused on addressing chronic health and productivity risks.

“Today, our first focus is on the health of our people, knowing that cost savings will inevitably come when we can make a lasting impact in our employees’ lives, and the results have been pretty awesome,” Mr. Gilliland said, noting significant year-over-year reductions in heart disease, diabetes and stroke risk factors since 2004 among a sample group of approximately 200 employees.

Many forum sessions focused on the difficulty many employers face in measuring total returns on their investments in health and productivity management programs. A 2012 IBI survey of employers found that while 89% of C-suite executives recognized the value of data that shows the impact of employee health on workplace performance or quality and 82% would benefit from return-on-investment calculations from health risk interventions, some 67% said that information has been unavailable to them.

Donna Cornwell, human resources director at Birmingham, Ala.-based O’Neal Steel Inc., said during a panel discussion that the family-owned company revamped its wellness program in 2011 to add data collection from health risk assessments and biometric screenings, as well as medical, pharmacy, workers compensation and disability claims.

Since then, Ms. Cornwell said the company has gained a much clearer view of its health management successes and failures, as well as a valuable means to communicate the program’s progress toward short- and long-term goals to senior management.

“We’ve seen percentage im-provements in all of these areas in just one year,” Ms. Cornwell said. “We have a lot of employees that are getting out and exercising more, and we’re on target for our goals in blood glucose levels and participation.”

Copyright © 2013. Crain Communications, Inc.

Health costs are not sole success metric of investment in wellness programs

Poll: Health overhaul unpopular, but not as feared

March 12th, 2012

Attacked as a rationing scheme and praised as a lifesaver, President Barack Obama’s health care law remains as divisive and confusing as ever. But a new poll finds Americans are less worried that the overhaul will undermine their own care.

As the Supreme Court prepares to hear arguments on the constitutionality of the Affordable Care Act, the Associated Press-GfK poll shows that Americans are less concerned their own personal health care will suffer as a result of it.

Shortly after the law passed in 2010, nearly half — 47 percent — said they expected the quality of their care to worsen. Now just 32 percent say that’s their worry.

Most of the law’s major changes have yet to take effect, and dire predictions — of lost jobs, soaring premiums and long waits to see the doctor — have not materialized. Provisions that have gone into effect, including extended coverage for young adults on their parents’ insurance and relief for seniors with high prescription costs, only had a modest impact on health care spending.

Lee Sisson, 63, a semi-retired businessman from Winter Haven, Fla., says he figures that he might be better off personally as a result of the overhaul. For example, it would limit how much health insurance companies can charge older adults. But self-interest hasn’t made Sisson a supporter.

“As a guy that’s semi-retired, the law would probably benefit me, and I’m still against it because it’s not good for our country,” said Sisson. He’s concerned about the cost of new government programs getting passed on to future generations.

Most of the drop in people saying they believe their care will worsen actually comes from those like Sisson, who are opposed to it. Of the law’s opponents, 55 percent now say their care will worsen. But in April 2010, soon after the law passed, that share was 67 percent.

Overall, half of Americans say they don’t think the quality of their care will change, while 14 percent expect it to improve.

The health care debate may be getting less edgy, but it’s unclear how much it will help Obama and Democrats heading into a contentious 2012 election season. Americans remain cool to the major domestic accomplishment of the president’s first term, even if they like some of the law’s provisions.

The poll found that 35 percent of Americans support the health care law overhaul, while 47 percent oppose it. That’s about the same split as when it passed. Then, 39 percent supported it and 50 percent opposed it.

Opposition remains strongest among seniors, many of whom object that Medicare cuts were used to help finance coverage for younger uninsured people.

“We were supposed to have a nice, relaxed retirement, and now we are scared,” said Nancy Deister Knaack, 65, of Leawood, Kan., a retired special education teacher. “We don’t know what’s going to happen.”

Confusion about the complex legislation has not helped Obama sell it to the public, contributing to an atmosphere in which wild charges about potential repercussions readily find an audience.

Only about three in ten say they understand the law extremely or very well. Most, 44 percent, say they understand it just somewhat, while 29 percent say they understand it not too well or not well at all.

On the key issue before the Supreme Court, however, public opinion is clear. Nearly 6 in 10 in say they oppose the law’s requirement that Americans carry health insurance, except in cases of financial hardship, or pay a fine to the government.

Opponents argue that such a mandate is an unconstitutional expansion of federal power, amounting to Congress ordering private citizens to buy a particular product.

The administration and many experts believe that the overhaul cannot work without an insurance requirement. The law guarantees that people with pre-existing medical problems can get coverage. Therefore, without a mandate, many healthy people may just postpone buying insurance until they get sick, driving up costs.

Even many Democrats are uneasy about the insurance requirement, although it can be fulfilled by getting coverage through an employer, a government program or by directly buying a policy, in many cases with the help of federal subsidies.

Las Vegas software engineer Michael Hugh, 37, says he supports the president and intends to vote for him, but the health care law should be revised.

“I am for the concept of it, but I am against the penalties,” he said. “It’s a good idea that they are taking down a wrong path because people shouldn’t be penalized for not having health care.” Hugh is currently uninsured but says he plans to get coverage through a new job.

While opposition to an individual insurance requirement remains strong, the poll found that 60 percent support putting the obligation on employers. Businesses are currently under no legal requirement to provide insurance, and the law would penalize medium to large companies that fail to do so.

The Associated Press-GfK Poll was conducted February 16-20, 2012 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cellphone interviews with 1,000 adults nationwide and has a margin of sampling error of plus or minus 4.1 percentage points.

Medigap Insurance Quotes – Three Reasons Why It Makes Sense to Get Them

October 6th, 2011

Medigap Quotes are readily available from many sources, especially this time of year (during the annual enrollment period for the other types of plans – Part D and Advantage plans). It is highly advisable to get quotes for Medigap coverage (also called Medicare Supplements) on an annual basis, if you are already on Medicare. This way, you can confirm that you have the best “deal” available, and if you do not, make a change to save money.

There are three primary reasons why you should obtain Medigap quotes:

1. First of all, and quite simply, the plans are Federally-standardized. If you are on Medicare and have a Medicare Supplement (Medigap) plan currently, you have one of the standardized plans, which are named after letters. For example, a Plan F is the plan that fills in all the gaps in Medicare Parts A & B so that you don’t have any out of pocket costs at the doctor or hospital. If you have a Plan F with one company, it is very easy to compare other Plan F’s with other companies to confirm that your plan is the most competitively priced.

2. Secondly, you should obtain Medigap quotes because it is extremely easy to do and does not cost you anything. In fact, in 90% of cases, you can save money on your Medigap insurance for equal coverage. Because of the above point, that Medigap plans are standardized, you can often save money. Insurance, particularly Medicare insurance, is an extremely fast-moving and changing thing. A plan that is good today may not be competitively priced tomorrow. Because of this, it is important to stay “on top of” your coverage and compare quotes on an annual basis. You can do so online. The rates themselves aren’t published online (this is not allowed by most companies); however, if you find the right independent brokerage, you can get a rate quote comparison sent to you by email. Full disclosure: we do this and would be happy to send it to you if you want to request Medigap quotes.

3. Last of all, you should get Medigap quotes to save money. Since the plans are standardized and the quotes are easy to obtain, you can usually save money. Everyone likes a little extra money in their pocket and this is one of the easiest ways to get it. Keep the same coverage and save money – it’s a no brainer.

If you would like more information or to obtain Medigap quotes by email, please request information on our website or give us a call. While many people do this this time of year, during the annual enrollment period for the Part D plans, you can actually change Medicare Supplements at any time, and should consider doing so whenever your rates change, which is typically on your policy anniversary date.