- Announcing VSRA Association Dental Plan
In response to the overwhelming success of the VSRA Association Medical Plan, we are launching an association dental plan for January 1, 2012 start dates. The plan is insured by Assurant Employee Benefits, a national top ten dental insurance company with approximately 1000 network dental providers in Hampton Roads. - Read More
The Five Most Important Health Insurance Moves for 2012
by Gregg Kennerly | Published Friday, November 4, 2011
Businesses across the country are struggling with the new reality of tighter margins on lower revenue brought on by the recession and continuing malaise in the economy. Providing medical benefits to attract and keep employees continues to be important, but continuing medical plan cost increases are putting unprecedented pressure on companies to not only maintain current spending levels, but cut costs. In our practice, we’ve had success with these strategies that can help maintain benefit levels while easing costs and the administrative burden on HR staff:
The Truth About Profits: Are Health Plans Really the Villains in Battle to Lower Health Costs?
by Gregg Kennerly | Published Friday, December 10, 2010
October 27, 2010
By: Health Care Cost Expert Gregg Kennerly
As health care costs continue to rise, it´s become even more popular to cast Health Insurers as rapacious villains in the struggle to make health care more affordable to Americans. But what do the facts tell us?
According to Morningstar, Health Insurers in 2009 ranked 87th out of 215 industries ranked in net profit margin, with an average of 3.3%. This compares with some industries at the top of the listings such as #1 Beverages (brewing) with a 25.9% profit margin and #7 Drug Manufacturers at 16.5%. It seems Health Plans are at the bottom of the profit hierarchy in the health sector. (more…)
Virginia Businesses are Shifting Health Insurance Burden to Employees as Costs Continue to Rise
by Gregg Kennerly | Published
By: Health Care Cost Expert Gregg Kennerly
September 28, 2010
The economy remains weak. Employers are wary of adding staff too quickly in an uncertain environment. Add the significant financial requirements of Health Care Reform (ARRA) to the mix of obstacles facing business and it´s no surprise that employers are reluctant to absorb additional health care cost increases.
The 2010 Employer Health Benefits Survey by the Kaiser Family Health Foundation was recently released and found that while premiums for family coverage rose a modest 3% this year, employers did not increase the percentage they contribute. According to the study results, the average total cost of family medical benefit coverage stands at an astounding $13,770 per year, or $1147.50 per month. Of this total, employees on average are paying $4000 per year through payroll deduction for family coverage. This means employers are still carrying about 30% of the family health insurance cost burden. (more…)
Beyond Health Insurance in Virginia: New Employee Benefit Growing to Fill Eldercare Need
by Gregg Kennerly | Published Friday, August 20, 2010
America is graying. 13% percent of the American population is age 65 or over and an astounding 19% of Americans over the age of 18 are caring for someone over age 50 at home, according to the National Alliance for Caregiving.
The impact of working caregivers on employers is becoming more dramatic every year. The MetLife Mature Market Institute & National Alliance for Care Giving survey from 2006 estimated the cost to employers of eldercare as $33.6 billion or $2110 per full-time employed caregiver. The costs are specifically from absenteeism, replacing of employees, workday interruptions, unpaid leave, and care crisis work related absenteeism. (more…)
Top 5 Reasons Why Businesses Need an Employee Wellness Program To Reduce Health Insurance Costs
by Gregg Kennerly | Published Monday, July 19, 2010
With the passage of Health Care Reform, there is increased interest in Employee Wellness Programs by employers striving to lower the profit-suffocating cost of offering Health Insurance to their employees. Health reform has clarified the incentives, both positive and penal that will be allowed by the Department of Labor. Surprisingly, there is wide latitude employers may use with incentives and penalties tied to Wellness Plan participation. There is mounting evidence that wellness programs can significantly lower health costs when implemented with proper incentives.
Here are the top five reasons:
#1: Decreased Health Care Costs
Although definitive studies have been difficult to quantify in the past, evidence is currently emerging that strong incentive wellness programs can significantly lower employer health care costs. The key to success lies in getting the participation of all employees. Significant financial incentives such as a $500 cash incentive for completing an evaluation, or significantly lowering contributions for participants who meet certain goals has proven to be cost effective.
#2: Increased Productivity
Healthier employees are productive. With the Great Recession still upon us, employees are being asked to be more productive than ever, just as business owners must be more productive with the resources they have to stay competitive. Keeping you human resources (people) in top shape with preventive maintenance is a common sense way to gain an edge on the competition.
#3: More Responsible Employees
It´s been proven that employees utilize medical care more efficiently when they have "skin in the game". In other words, people care more making smart choices when they have a financial stake in the outcome. Wellness Programs demonstrate to employees that the employer cares about their well being and that their actions have an impact on the company. The movement toward "Consumer Driven" health plans with higher deductibles that give employees a greater stake in their care are perfect partners for Wellness Programs. Employees easily see the advantage of becoming healthier and spending less on out-of-pocket costs.
#4: Reductions in Absenteeism and Sick Leave
This may seem to be common sense, but absenteeism and sick leave costs are significant and improving the health of employees is proven to lower the rate of absenteeism. Wellness Programs educate employees extensively as to avoid illness and often provide personal health improvement strategies that engage employees on a specific level that can reduce sick days for a large portion of the employee population.
#5: Intangibles
Although difficult to put a price on, employers implementing Wellness Programs report a surge in employee morale and loyalty to the company. When employees feel their employer is truly interested in their best interest, they tend to be loyal, hard workers in return. Reduced turnover and recruiting costs are also part of this equation, as a happier workplace results in less turnover.
Many companies that implement wellness tied to meaningful incentives are experiencing double digit decreases in health insurance costs and sick leave. Legal concerns about strong incentive-based wellness programs have been a deterrent to the adoption of programs by some companies. The Obama administration´s Health Reform guidance that permits and actually encourages tough requirements for wellness programs has reinvigorated the market for employer-sponsored wellness plans.
3 Mistakes Businesses Make in Buying Health Insurance and Employee Benefit Plans in Virginia
by Gregg Kennerly | Published Monday, June 28, 2010
Healthcare benefits, health insurance, medical benefits; whatever you want to call them- healthcare in the U.S. is under unprecedented scrutiny. The course of healthcare reform is uncertain at this point- but what is certain is the pain of paying for health coverage by employers and their employees. There are some relatively easy steps that employers can take to lower costs now and make sure they haven´t made one of several common mistakes in providing medical benefits. (more…)
Fresh Ideas to Lower Health Insurance Costs in Virginia
by Gregg Kennerly | Published
As the second largest personnel expense for a company behind salaries, healthcare costs continue to increase faster as a percentage of business revenue than any other single factor. The effort to curb healthcare cost increases has become one of the most important and contentious issues of our time.
The initiatives offered by congress and private industry are many and varied. The complex healthcare cost issue has tentacles that touch almost every sector of the economy, with downstream consequences that are impossible to predict. However, there are a number of strategies that businesses can implement to lower overall costs, help improve employee health, and create better financial outcomes for their health insurance plans. Doing nothing will certainly not improve the situation or give you an edge over your competitors. So what can be done? (more…)
Designing Benefit Plans to Attract Top Employees & Make Health Insurance Affordable in Virginia
by Gregg Kennerly | Published
Employee Benefits are an integral part of business and culture in the United States. Attracting and keeping top talent to stay competitive in the market is the traditional reason employers spend huge sums on employee benefit plans. If not addressed properly, generational differences in the valuation of benefits in the workplace can easily become a source of unexpected tension that can reduce the value of benefit plans.
Why is all this important? The MetLife 7th annual employee benefits trend study in 2008 indicates that benefit satisfaction has a positive relationship with job satisfaction. Among employees across all generations who said they were highly satisfied with their benefits, 73% were also satisfied with their jobs. Only 22% of those employees who were not satisfied with their benefits were satisfied with their jobs. (more…)
Health Insurance Reform Facts: How Virginia Insurance Agents Lower Health Costs & Track Compliance
by Gregg Kennerly | Published
Healthcare industry professionals and political pundits are early in the process of assessing the intended and unintended consequences of healthcare reform. One thing is certain: The Patient Protection and Affordable Care Act will radically change the landscape of healthcare in the United States. Somewhat ironically, the reform bill doesn’t directly address affordability. Most provisions focus on access to care and health insurance market reforms rather than underlying cost structures.
When do the provisions take effect? Although many of the provisions have been touted as “effective immediately”, the earliest any of the regulations become effective is September 22, 2010, or the first health insurance plan year on or after September 22, 2010. In essence, insurance companies and employers are given six months from the effective date of the law to make the changes. These generally will be effective October 1, 2010 at the earliest, and September 1, 2011 at the latest. Among the changes effective in this early stage are: (more…)
Health Insurance Reform Ignores Proven Savings, Will “Kill” HSAs for Health Plans in Virginia
by Gregg Kennerly | Published
A United HealthCare study published in late 2009 confirms that Health Savings Account plans lower costs in the second and subsequent years of enrollment. The results demonstrated that utilization and costs were lower across both large and small employer populations. In spite of these findings, The Patient Protection and Affordable Care Act of 2010, popularly know as “Health Reform”, threatens to derail the adoption of HSAs and High Deductible Health Plans.
The United HealthCare Study showed that employers who implemented HSAs had substantial declines in hospital admissions and emergency room visits. Although the number of prescriptions increased, the overall pharmacy cost declined, suggesting more extensive use of cost-effective generic drugs. The intended effect of encouraging employees to take more control of their own medical care spending seems to be working in HSA plans, the study concludes. (more…)
