PROVIDENCE, R.I. — Waiting in line at the pharmacy to pick up prescriptions, Lawrence Cafero Jr. can't help but feel a bit guilty.
Cafero is a state representative in Connecticut and taxpayers subsidize his generous health insurance plan, which requires only a $10 copay for any brand-name prescription drug.
"I'm standing behind either an elderly person or a working-family person and they're taking out wads, like dropping 20, 40, 60 bucks. And I've got $10 — $5 for a generic," said Cafero, R-Norwalk. "I'm embarrassed."
Pressure is mounting in states hit worst by the recession to take back some of lawmakers' generous health benefits that are funded by taxpayers.
A review by The Associated Press showed lawmakers in 12 states get health insurance for free, while those in 28 states share the costs with taxpayers, often getting a better deal than private sector workers.
In California, where finances are so bad the state has issued IOUs, the citizen commission that sets benefits for elective officials voted in June to reduce funds for lawmaker health insurance. The change takes effect in December.
"There are employees on furlough and people being laid off," commission member Ruth Lopez Novodor said. "It just didn't seem right to keep the compensation at the same levels."
In Michigan, supporters are renewing efforts to end lucrative retiree health benefits for lawmakers or at least force lawmakers to work longer before they qualify for them. Similar proposals failed in 2007.
"What's good for us should be good for them," said Ray Holman, a child abuse investigator for the Michigan Department of Human Services, who has seen his health insurance costs rise steadily. He will lose six days of pay this year as state leaders try to close a deficit.
"When you see the lawmakers who have the generous benefits and appear to be working part-time, it's just not good leadership," Holman said.
Meanwhile, many Rhode Island lawmakers accustomed to free health insurance at taxpayer expense have bowed to public pressure and started voluntarily contributing toward its cost.
Last year Rhode Island cut state-funded health care for immigrant children and 1,000 adults, forced the poor to take cheaper generic drugs and raised health insurance costs for state workers.
Yet Sen. Charles Levesque, D-Portsmouth, believes his free health care reasonable considering lawmakers make $14,018 in salary. Although they meet only about six months a year, Levesque, an attorney, considers his elected post a full-time job.
"I am the senator from Portsmouth when I walk out in my bathrobe to get my newspaper in the morning, when I go to the local pharmacy to buy whatever prescription medication I need to keep me going," he said.
Federal lawmakers, who are debating an overhaul to the nation's health care system, also get subsidized insurance. Members of Congress are covered by the federal employees health plan and get VIP medical access at Walter Reed Army Medical Center in Washington and the National Naval Medical Center in Bethesda, Md. For about $500 a year, federal lawmakers can also have unlimited visits with a physician assigned to the Capitol for routine care.
At Tuesday's town hall meeting in New Hampshire, President Barack Obama was asked why he hadn't talked more about the differences between the benefits offered to federal lawmakers and the system for everyone else. Obama responded that his proposal would give the public options similar to those given to federal employees.
Some state lawmakers also receive generous benefits:
_ Michigan lawmakers get retiree health care after six years of service and can tap into their benefits at age 55. That perk is the envy of workers in a state with 15.2 percent unemployment rate.
_ Members of the Massachusetts Legislature pay about $200 to $230 per month for family health coverage, about 18 percent less than what the average U.S. consumer pays, according to a national survey by the Kaiser Family Foundation and the Health Research and Educational Trust.
_ Connecticut lawmakers get retiree health insurance after working a decade for the state. Some lawmakers get retiree health care for free, while others pay 3 percent of their salaries. Brand-name drugs require a $10 co-payment.
In comparison, about 63 percent of employers offered health coverage last year, according to Kaiser's annual survey of roughly 1,900 firms. Health insurance for the average single employee ran around $4,700 annually, and workers paid 16 percent of the tab. Premiums for family plans averaged around $12,680, and workers were responsible for 27 percent of the cost.
The disparities could influence how lawmakers think, said Peter Sepp, a vice president for policy and communications at the National Taxpayers Union.
"It can skew their perspective on how much it might cost a family or small business to provide such insurance," he said. "It can also in some instances lead them to believe that the affordability of their coverage is something that the entire nation can be made to afford."
Not all lawmakers have it so easy. Legislators in New Mexico, South Dakota and Wyoming cannot get state health insurance, while their counterparts in Nebraska, Nevada, New Hampshire, West Virginia, Alabama and Vermont must pay the full price themselves if they want state coverage.
Vermont Rep. Carolyn Partridge, D-Windham, went without health insurance after being elected to office. As a farmer, she cannot afford to pay for the state health plan. Partridge and her husband now qualify for Medicaid.
They paid out-of-pocket for an annual physical and have avoided treatment for anything except emergencies. Partridge said hospitals are willing to work out payment plans for the uninsured.
"The bottom line is, you get taken care of," she said. "The worst bottom line is they take your house, if you own one."
In Rhode Island, House lawmakers passed a bill last year requiring lawmakers to pay 10 percent of their premiums, but it died in the Senate. A similar bill sponsored by Rep. Amy Rice, D-Portsmouth, never made it to the floor this year.
Wednesday, August 12, 2009
Sunday, August 09, 2009
Congress and Health Care
Congress and senators went home and hold town hall meetings on Health Care it quickly became apparent that there was a strong movement aginest a public program and maybe even a legislative solution.
While we look like we are a long way from seeing a formal bill there are many things being run through the legislature. One of the most salient points I believe is that there is no participation by the legislature in any plan they propose and even some that specifically excludes them. If Mr. Obama, the legislature and government employees won't participate, then a question arises as to why. Simply put they want to force us to have less while maintaining there rich benefits. I feel a solution which could work puts everyone in the same boat.
While we look like we are a long way from seeing a formal bill there are many things being run through the legislature. One of the most salient points I believe is that there is no participation by the legislature in any plan they propose and even some that specifically excludes them. If Mr. Obama, the legislature and government employees won't participate, then a question arises as to why. Simply put they want to force us to have less while maintaining there rich benefits. I feel a solution which could work puts everyone in the same boat.
Wednesday, July 22, 2009
What Does Consistent Participation in 401(k) Plans Generate?
This Issue Brief presents recently available longitudinal data from the EBRI/ICI 401(k) database on consistent participation in a 401(k) plan, through year-end 2007.
Looking at consistent participants in the EBRI/ICI 401(k) database over the eight-year period from 1999 to 2007, the average 401(k) account balance increased at an annual growth rate of 9.5 percent over the period, to $137,430 at year-end 2007.
The median 401(k) account balance (half above, half below) increased at an annual growth rate of 15.2 percent over the period, to $76,946 at year-end 2007. Data for 2008 are currently being analyzed and are expected to be published later this year.
Looking at consistent participants in the EBRI/ICI 401(k) database over the eight-year period from 1999 to 2007, the average 401(k) account balance increased at an annual growth rate of 9.5 percent over the period, to $137,430 at year-end 2007.
The median 401(k) account balance (half above, half below) increased at an annual growth rate of 15.2 percent over the period, to $76,946 at year-end 2007. Data for 2008 are currently being analyzed and are expected to be published later this year.
Thursday, July 16, 2009
Thursday, July 02, 2009
Wednesday, July 01, 2009
Tool of the Month: Lilly Ledbetter Fair Pay Act Guide
Many employment laws have been enacted during and for the first half of 2009 with many more anticipated for the rest of the year and beyond. For a refresher, you now can review a variety of helpful information in the HR Support Center, including the key aspects of the Lilly Ledbetter Fair Pay Act of 2009. With a simple one-page document, you can easily reference:
• The Ledbetter Case,
• The Ledbetter Act, and
• The Recommended Actions.
In the HR Support Center website under the Essentials tab section, simply search for the “Lilly Ledbetter Fair Pay Act Guide.”
Lay Off Using Layoffs to Manage Poor Performing Employees
With many employers seeing the business need to layoff employees during the past several months, it may be tempting for a manager to use it as a way to avoid confronting problem employees. When conducting a formal layoff, however, employers would need to follow certain guidelines and be aware of specific state and federal laws. In general, employers are often better off taking the more appropriately accountable route of employment termination for cause using progressive discipline.
In turn, keep the following three points in mind:
1. Eliminate the Position. A layoff involves eliminating positions and not people. Determine your business-essential positions, and your supporting documentation should demonstrate that a position to be eliminated is due to decreased work demands and / or financial reasons. If you want to get rid of a poor performing employee, then getting rid of that job position would likely be not in your best interest since the work still needs to be done.
2. Select the Worker. For the eliminated position in question, identify all employees with similar job titles and roles. After review the type of the work that still needs to be done, figure out which of the employees are the lesser qualified. After assessing the employees’ overall work experience, knowledge, skills, and abilities, pick the least qualified individual. If that individual happens to be the poor performing employee you initially had in mind, then you now would have a more solid basis to end the employment relationship with a layoff.
3. Don’t Fill the Position. If an employer has a legitimate business reason to eliminate a job position, then there should be no need to bring back that position in the near future. Otherwise, the alleged layoff may be viewed as a veiled termination for cause which can cast questions on the company's true intentions and general integrity if ever challenged. The suggested rule of thumb is to not reopen the position for about a year.
In the bigger picture, if you are in Management, part of your direct responsibility is to effectively manage employee confrontations. Addressing employee performance problems through corrective action holds employees accountable for their behaviors and their outcomes. You can leverage various strategies to motivate employees to positively change their performance levels as well as to establish proof of your company’s good faith efforts to help all employees improve.
In turn, keep the following three points in mind:
1. Eliminate the Position. A layoff involves eliminating positions and not people. Determine your business-essential positions, and your supporting documentation should demonstrate that a position to be eliminated is due to decreased work demands and / or financial reasons. If you want to get rid of a poor performing employee, then getting rid of that job position would likely be not in your best interest since the work still needs to be done.
2. Select the Worker. For the eliminated position in question, identify all employees with similar job titles and roles. After review the type of the work that still needs to be done, figure out which of the employees are the lesser qualified. After assessing the employees’ overall work experience, knowledge, skills, and abilities, pick the least qualified individual. If that individual happens to be the poor performing employee you initially had in mind, then you now would have a more solid basis to end the employment relationship with a layoff.
3. Don’t Fill the Position. If an employer has a legitimate business reason to eliminate a job position, then there should be no need to bring back that position in the near future. Otherwise, the alleged layoff may be viewed as a veiled termination for cause which can cast questions on the company's true intentions and general integrity if ever challenged. The suggested rule of thumb is to not reopen the position for about a year.
In the bigger picture, if you are in Management, part of your direct responsibility is to effectively manage employee confrontations. Addressing employee performance problems through corrective action holds employees accountable for their behaviors and their outcomes. You can leverage various strategies to motivate employees to positively change their performance levels as well as to establish proof of your company’s good faith efforts to help all employees improve.
HR Advisor July 2009 The Monthly Newsletter from your AMS HR Support Center
Federal Minimum Wage Rate Increase.
Effective July 24, 2009, the federal minimum wage rate will increase from $6.55 per hour to $7.25 per hour.
E-Verify Federal Contractor Rule Delay.
For the fourth time, the effective date requiring certain federal contractors and subcontractors to use the federal government's E-Verify program has been delayed to become effective on September 8, 2009.
Age Bias Decision Favoring Employers.
On June 18, 2009, the U.S. Supreme Court placed a greater burden on workers to prove their claims of being targets of workplace discrimination due to age.
Effective July 24, 2009, the federal minimum wage rate will increase from $6.55 per hour to $7.25 per hour.
E-Verify Federal Contractor Rule Delay.
For the fourth time, the effective date requiring certain federal contractors and subcontractors to use the federal government's E-Verify program has been delayed to become effective on September 8, 2009.
Age Bias Decision Favoring Employers.
On June 18, 2009, the U.S. Supreme Court placed a greater burden on workers to prove their claims of being targets of workplace discrimination due to age.
What is being said about health care changes!
I was a little surprised to read a recent poll stating that the majority of Americans are receptive to the idea of increased government influence over health care if it means a reduction in cost and better coverage.
The CNN/Opinion Research Corp. poll found that 63 percent of respondents would favor an increase in federal influence over health care plans if it translated into lower costs and more coverage, while 36 percent opposed the idea.
Also, a little more than 60 percent of Americans said they believe the government should guarantee health care for all Americans, versus 36 percent who opposed the idea.
Another question involved the concept of raising taxes in order to improve health care for every American, with 47 percent favoring the idea and an equal number opposing it, even if it meant not providing health care for all Americans.
It will not come as a shock when I tell you that opinions were starkly split down party lines, with the majority of Democrats supporting increased government influence and just one-quarter of Republicans favoring the idea.
Of course, these are tough and often very personal beliefs and decisions. Many in the industry oppose government control and there is no shortage of arguments on both sides. Just one first-hand experience either way can erase years of arguments and counter-arguments. This promises to remain an enormous topic in our country for years and probably decades to come.
The questions continue and whether you are for or against its important to be informed.
Questions:
1) Can the government financially support a health care system?
2) Will increased taxes bring about a more beneficial health care plan without excess burden on individual tax payers?
3) Considering Medicare as a system which is almost ready to go bankrupt and which as increased costs to seniors, can the government do better with health care in general?
4) Can a national health care system come about because there is a call to change, without the time to bring about meaningful change with a well thought out plan?
5) Can Insurance companies, Health Care Providers, and all the players in the field of providing benefits and care truly come together putting aside their self interest to create meaningful change?
Would appreciate hearing your comments:
The CNN/Opinion Research Corp. poll found that 63 percent of respondents would favor an increase in federal influence over health care plans if it translated into lower costs and more coverage, while 36 percent opposed the idea.
Also, a little more than 60 percent of Americans said they believe the government should guarantee health care for all Americans, versus 36 percent who opposed the idea.
Another question involved the concept of raising taxes in order to improve health care for every American, with 47 percent favoring the idea and an equal number opposing it, even if it meant not providing health care for all Americans.
It will not come as a shock when I tell you that opinions were starkly split down party lines, with the majority of Democrats supporting increased government influence and just one-quarter of Republicans favoring the idea.
Of course, these are tough and often very personal beliefs and decisions. Many in the industry oppose government control and there is no shortage of arguments on both sides. Just one first-hand experience either way can erase years of arguments and counter-arguments. This promises to remain an enormous topic in our country for years and probably decades to come.
The questions continue and whether you are for or against its important to be informed.
Questions:
1) Can the government financially support a health care system?
2) Will increased taxes bring about a more beneficial health care plan without excess burden on individual tax payers?
3) Considering Medicare as a system which is almost ready to go bankrupt and which as increased costs to seniors, can the government do better with health care in general?
4) Can a national health care system come about because there is a call to change, without the time to bring about meaningful change with a well thought out plan?
5) Can Insurance companies, Health Care Providers, and all the players in the field of providing benefits and care truly come together putting aside their self interest to create meaningful change?
Would appreciate hearing your comments:
Aetna wants to help you get lower group health rates with new RAF program!
Click for quotes:
| RAF Program update | ||||||||
As of Wednesday, July 1, Aetna will only accept the original renewal received by a group to determine eligibility for our RAF promotion. Revised renewals will not be accepted. Aetna will continue requiring submission of prior year and current renewals (original only). We've expanded our RAF promo through 12/31/09 and AB1672 eligible groups moving from a large group contract are now eligible for our RAF program. To qualify, groups must provide a large group renewal of less than 20% increase within 90 days of their requested effective date. Click here RATES! | ||||||||
Tuesday, June 30, 2009
Travel Insurance for those on the go or vacationing!
Go Here for Travel BargainsMedical Insurance for people traveling outside their Home Country,Perfect for trips between 15 days and 3 years. Immediate coverage is available once you are satisfied with the quotation. Print your ID Card immediately!
The plan is underwritten by Virginia Surety Company, Inc., a U.S. insurance company rated A+ "Superior" by AM Best.
Protect your tickets, your luggage and your health worldwide,Why round trip? So you'll be prepared. Who knows what could happen during a trip abroad – or before you even depart. Benefits include: Trip Cancellation; Interruption/Delay; Medical Transportation; Lost or Stolen Baggage; Missed Connection; Assistance Services.
Permanent health insurance coverage for non-U.S. residents, while in the U.S.A.,Providing comprehensive health insurance for persons residing outside of the United States, RESIDE Prime provides benefits to non-U.S. residents.
Control Blood Pressure with Music? Experts Say Yes
Music may be food for the soul, but Italian researchers say it also is good therapy for controlling blood pressure in heart and stroke patients.
Learn More by clicking on the link in the title: Control Blood Pressure with Music?
Learn More by clicking on the link in the title: Control Blood Pressure with Music?
Sunday, June 21, 2009
Friday, June 19, 2009
Do you know what to do when hiring your first employee to letting your first employee go?
Most small employers have little experience with the ins and outs of employees. What do you do first; I suggest a good HR program where there is no HR department to manage the day to day issues in managing employees.
A good HR program has the necessary resources to help you with;
1. Guidelines to conduct an interview
2. Employee Application
3. Employee Evaluation
4. IRS forms required to obtain a Tax ID number
5. State Guidelines and forms for taxes and insurance
6. Employee Handbook
7. State and Local laws
8. Maintain employee files
9. Employee termination and layoff, i.e., guidelines, forms, notification
When you will be hiring it will be necessary to have a payroll system in place to manage the necessary book work, form and checks required to pay an employee;
1. Payroll programs like bank systems and quicken
2. Payroll services
3. PEO (employee leasing)
Consider Benefit programs which will help you hire and retain employees. Part of you operational budget for employee cost like salary, bonus, benefits are important considerations. You can create a modest budget with the right plans and consultant.
1. Health, Dental, Vision and Life benefits
2. Pension Plans
3. Health Management and Education programs
4. Vacation and Sick leave
Resources are easy to obtain so that you can maintain the best employee management programs. Many small business employers do not always consider the many issues regarding employees and due to the constraints of managing a business it can be challenging.
While you can do the research by using the Federal Tax and Labor sites along with local State sites it is much easier to have all the information in one place.
A good online system such as our value added HR ANSERLINK program is free to clients when using one of our benefit programs or ABC Payroll our Payroll Affiliate.
A good HR program has the necessary resources to help you with;
1. Guidelines to conduct an interview
2. Employee Application
3. Employee Evaluation
4. IRS forms required to obtain a Tax ID number
5. State Guidelines and forms for taxes and insurance
6. Employee Handbook
7. State and Local laws
8. Maintain employee files
9. Employee termination and layoff, i.e., guidelines, forms, notification
When you will be hiring it will be necessary to have a payroll system in place to manage the necessary book work, form and checks required to pay an employee;
1. Payroll programs like bank systems and quicken
2. Payroll services
3. PEO (employee leasing)
Consider Benefit programs which will help you hire and retain employees. Part of you operational budget for employee cost like salary, bonus, benefits are important considerations. You can create a modest budget with the right plans and consultant.
1. Health, Dental, Vision and Life benefits
2. Pension Plans
3. Health Management and Education programs
4. Vacation and Sick leave
Resources are easy to obtain so that you can maintain the best employee management programs. Many small business employers do not always consider the many issues regarding employees and due to the constraints of managing a business it can be challenging.
While you can do the research by using the Federal Tax and Labor sites along with local State sites it is much easier to have all the information in one place.
A good online system such as our value added HR ANSERLINK program is free to clients when using one of our benefit programs or ABC Payroll our Payroll Affiliate.
Thursday, June 18, 2009
Health Insurance
Lic.# 0294220
Individual and Family Health Plans Shop Online for an affordable Individual & Family HMO or PPO plan. All Major Companies represented.Short-Term Plans - Up to 12 Months of Temporary Coverage. Between Jobs, Temporary Employment & Students.
Medicare Supplements - Click for rates if you are 65+
Medicare Supplements - Click for rates if you are 65+
Dental InsuranceGet Rates for individual and family dental plans. Rates, Benefits and Applications online...
Term Life Insurance Compare level premium low cost term life insurance plans. Provide security for your family at very affordable rates.
click on the blue links above:
Agency Marketing Services - Insurance License: 0294220
Need Insurance For Your Small Business? Health, Dental, Life, Vision Plans and More. Shopping for group insurance has never been easier or more convenient. We offer a wide selection of the biggest and best names in the business. With over 750+ group insurance plans in our nationwide database, you're certain to find a plan that will offer you the most value for your insurance dollar.
Shop and Compare Group Insurance Plans OnlineInsurance For Today's Progressive Small Business.
Click Here
Need Insurance For Your Small Business? Health, Dental, Life, Vision Plans and More. Shopping for group insurance has never been easier or more convenient. We offer a wide selection of the biggest and best names in the business. With over 750+ group insurance plans in our nationwide database, you're certain to find a plan that will offer you the most value for your insurance dollar.
Shop and Compare Group Insurance Plans OnlineInsurance For Today's Progressive Small Business.
Click HereHealth care reform impacts dental benefits
Delta Dental educates Americans
The importance of considering how health care reform might impact dental benefits is the focus of the national Delta Dental Plans Association and located. They are helping to educate the public, regulators, lawmakers and policymakers about how oral health might be helped or hindered under new health care proposals put forward by Congress. The web site includes information about:
· The effects of poor oral health
· The connection between oral and overall health
· The significant differences between medical and dental benefits
· The importance of preventive dental treatment
· Implications of the potential new taxes on those who currently enjoy employer-sponsored dental benefits.
“Delta Dental is committed to including wider access to affordable dental care in overall health care reform,” says Gary D. Radine, president and CEO of Delta Dental of California, Pennsylvania and affiliated companies. “Given how important we know dental benefits are for promoting overall health, it is critical to preserve the deductibility of dental benefits for employers and individuals who purchase them,” says Radine.
Contact us for additional information;
800-334-7875
Largest nationwide dentist network
Delta Dental provides more access and cost-saving opportunities
Delta Dental maintains the largest network of dentists in the nation, a position we have held for more than five decades. A new report by NetMinder shows that our Delta Dental Premier® network has more than 128,500 dentists – 61,000 more dentists than our closest national competitor.
“Having the largest network of dentists in the nation is tremendously important because it offers more cost-saving opportunities to clients and enrollees through our fee agreements with network dentists. It also fulfills our commitment to promoting good oral health by creating greater access to affordable dental care,” says Gary Radine, president and CEO of Delta Dental of California, Pennsylvania and affiliated companies.
Delta Dental Premier® network
128,500 dentists
198,000 dentist locations
Delta Dental PPOSM network
68,000 dentists
Delta Dental PPOSM network
68,000 dentists
120,000 dentist locations
DeltaCare® USA network
22,000 dentist locations
DeltaCare® USA network
22,000 dentist locations
Statistics from Delta Dental Plans Association Network Analysis Quarterly Reports, March 2009.
Tuesday, June 16, 2009
California Health Insurance - Google Docs
Individual and Family Health Plans Shop Online for an affordable Individual & Family HMO or PPO plan. All Major Companies represented.
Thursday, June 11, 2009
Spot Trends in Business and Adapt!
Your business needs to be able to adapt and evolve with the ever-changing times, which means as a business owner, you need to be tuned in to what’s coming down the pipeline in your industry.
How can you spot the latest trends in your industry?
Listen – It might seem like a no-brainer, but listening is something business owners don’t do enough of. Ask your customers for feedback on your products and services and find out from them directly what they’re looking for next.
Pay attention – Read up on trade publications for your industry and any related industries that might impact/benefit your business, i.e. fashion, music, technology. Even makes a habit of reading about the industries that have nothing to do with his business.
Follow trends online – Trend-hunting Web (google it-Small Business Trends) can help to keep you in the know by serving up the daily trends. Social networks and chat rooms can also be a good source for discussion. When you see some common themes coming up in discussions, this is a clear indication of a new trend on the verge of breaking.
Trust your gut – When you dabble in an industry long enough, you start to develop an intuition for what to expect next. If you suspect something new might be on the rise, you’re probably right.
How can you spot the latest trends in your industry?
Listen – It might seem like a no-brainer, but listening is something business owners don’t do enough of. Ask your customers for feedback on your products and services and find out from them directly what they’re looking for next.
Pay attention – Read up on trade publications for your industry and any related industries that might impact/benefit your business, i.e. fashion, music, technology. Even makes a habit of reading about the industries that have nothing to do with his business.
Follow trends online – Trend-hunting Web (google it-Small Business Trends) can help to keep you in the know by serving up the daily trends. Social networks and chat rooms can also be a good source for discussion. When you see some common themes coming up in discussions, this is a clear indication of a new trend on the verge of breaking.
Trust your gut – When you dabble in an industry long enough, you start to develop an intuition for what to expect next. If you suspect something new might be on the rise, you’re probably right.
International Trend in Pension Plans
Excerpt: "Unless people prepare for it properly in advance, a perfect storm of demographic and financial trends could derail people's retirement plans, a global survey from HSBC Insurance finds. In its fifth annual Future of Retirement study, HSBC's It's Time to Prepare finds 9% of the 15,000 people it surveyed in 15 countries expect to delay their retirement because of the economic downturn and only 19% intend to retire as they had previously planned. Many are doing the opposite of what they should be doing: 17% are reducing retirement savings or have stopped saving for retirement altogether." (The National Post Company)
What should your strategy be for the long run so you do not allow the market to win, and keep you in the game? Dollar cost averaging has been the saving value for most people since it is simple and it works.
The market historically has highs and lows so that a $1 today buys a share of stock, while a $1 tomorrow can buy 2 shares or ½ a share. If you follow this strategy you gain market momentum which produces an upward trend line the same as when you look at the market over 10, 20 or 50 years.
The other consideration is determining your risk tolerance, changing that tolerance over time as you age to a more conservative position from a more aggressive position when you are younger.
If you study this strategy you will be certain of its success and less tempted to allow the market to dictate your be in or out of the market depending the markets ups and downs.
How can your company maintain benefits and reduce cost?
In these difficult economic time I am often asked how can I maintain benefits and reduce costs. While there is no easy answer, there are some way in which an employer may approach these issues. The following are some highlighted ideas to consider.- Create a fixed budget for benefits within the scope of the companies ability to maintain costs. Develop a multiple plan offering for benefits; ie., HMO, PPO, HSA etc. from which employees can choose a plan which will best meet theirs and their family needs considering personal budget for benefits. Offer a Sec. 125 employee tax savings plan to help reduce the cost which are paid by the employee.
- Offer ancillary benefits which the employee can choose from and as above pay with tax benefited dollars on a voluntary basis. This may include; life insurance, dental insurance, supplemental accident policies, disability and long term care policies.
- Utilize an HRA self funded program with fixed risks to company expenses for claims and benefits, and combine with the above suggestions.
- Consider a combination HRA and HSA plan.
- Offer an HSA plan where some of the savings is funded by the company from premium savings.
- Initiate health and welfare programs for physical fitness, weight loss, smoking, diabetes and other programs. It has been proven that these programs provide for healthier employees, better work attendance, more productivity on the job, lower ultimate health cost and absenteeism.
We are available to consult with you about these and other programs which will benefit employees and employers.
800-334-7875
Friday, June 05, 2009
How can your company make the Best Employer list in your area.
Here is how one company made the Bay area list of best employer for the second year.
We are thrilled to be on the list for our second year in a row," said John Sensiba, Managing Partner of Ireland San Filippo. "While it's rewarding to make it on the list, even more important are the tangible changes we're able to make based on the survey's employee feedback. Particularly in today's economic climate, we are consistently challenging ourselves to be a role model in our industry and are actively improving what has already been established and recognized as a great working environment. Our goal is to not just be a 'best place to work' company, but to be the 'best place to work.'"
Over the three years that ISF has participated in the Best Places to Work Survey, the firm has utilized survey feedback to build upon existing best practices. The results include improved employee benefits, creative flexible working schedules, competitive compensation programs, increased software training tools, increased team-building activities and continuing education programs for employees.
We would like to know your thoughts.
We are thrilled to be on the list for our second year in a row," said John Sensiba, Managing Partner of Ireland San Filippo. "While it's rewarding to make it on the list, even more important are the tangible changes we're able to make based on the survey's employee feedback. Particularly in today's economic climate, we are consistently challenging ourselves to be a role model in our industry and are actively improving what has already been established and recognized as a great working environment. Our goal is to not just be a 'best place to work' company, but to be the 'best place to work.'"
Over the three years that ISF has participated in the Best Places to Work Survey, the firm has utilized survey feedback to build upon existing best practices. The results include improved employee benefits, creative flexible working schedules, competitive compensation programs, increased software training tools, increased team-building activities and continuing education programs for employees.
We would like to know your thoughts.
Thursday, June 04, 2009
Why Government-Run Public Plan is Misguided
NOTE: There are many views on Health Care in the U.S. and many professionals in the Insurance and Health Care field share these views. Its our goal to present the facts and look for comments as the country moves into a major review and process of change.
• Reforms to the private insurance markets are widely recognized as necessary. But
the creation of a government-run public plan is a bad idea and a waste of
resources that would likely displace tens of millions of happily insured Americans
and exacerbate the worst elements of our current system: gross inefficiency, high
costs, and bureaucracy. Creating a mammoth, complex, hugely expensive, illdesigned
reform that is not likely to be popular when understood.
• Reforms to the private insurance markets are widely recognized as necessary. But
the creation of a government-run public plan is a bad idea and a waste of
resources that would likely displace tens of millions of happily insured Americans
and exacerbate the worst elements of our current system: gross inefficiency, high
costs, and bureaucracy. Creating a mammoth, complex, hugely expensive, illdesigned
reform that is not likely to be popular when understood.
• As a prominent Lewin study concluded, a government-run public plan would
likely attract consumers not by virtue of superior performance on cost control and
quality, but by its ability to exploit unfair advantages that would tend to shift and
hide its costs away from enrollees and enrollee premiums.1 Nearly 6 out of every
10 Americans (118 million) with private coverage could lose their current health
care coverage, and 130 million Americans could end up on a government-run
health care plan if the government sets payment rates at Medicare rates.
• Expansion of government-run programs could also exacerbate the cost-shift that
already drives up average health care spending by $1,788 (or 10.7 percent)
annually per family.2 A government-run plan would exacerbate the cost shift
because when government payment rates are too low, providers shift costs to
private payers to make up the difference.
• Existing public plans provide less coverage and restrict provider access more than
the average employer-sponsored plan. The Congressional Budget Office (CBO)
estimated that the benefit package for Medicare is 15 percent below the average
employer-sponsored plan. Under Medicaid, specialists are often inaccessible
without long waits. Under a new government-run plan, Americans will find it
more and more difficult to make appointments with physicians and other health
care providers. This is because lower payments will make it increasingly
unaffordable for providers to see patients—particularly the increasing number of
patients with public coverage. o MedPAC: 30% of Medicare enrollees seeking a new primary-care physician have difficulty finding one o MedPAC: 30% of physicians taking no new Medicaid patients
• Public programs like Medicare moreover lag behind the private insurance industry
in terms of containing cost and improving quality. Medicare just recently started
refusing to pay medical care providers for ‘never events’ where a patient suffers a
knowable and catastrophic mistake such as having the wrong limb removed. The
private insurance market has been doing this for years.
• A government-run plan like Medicare does not have to comply with varying state
insurance regulations nor does it have to underwrite applications because
1 The Lewin Group, “The Cost and Coverage Impacts of a Public Plan: Alternative Design Options,” Staff Working Paper #4, April 6, 2008. 2 Millman, “Hospital and Physician Cost Shift Payment Level Comparison of Medicare, Medicaid, and Commercial Payers,” December, 2008. Medicare is open to all seniors at the same cost. Reforming the insurance market could significantly reduce administrative costs for private plans.
• Private insurers must build provider networks. These networks can include highvalue
providers and exclude low-quality providers. Except for certain
circumstances, including criminal acts, Medicare is forbidden from excluding
poor quality providers. It lets in everyone who signs up. So one question to ask is,
will a public plan have Medicare’s indifference to quality -- or invest in the cost
of a network?
• Private insurers must negotiate rates. Medicare just fixes prices using a statutory
and regulatory scheme. And anyone who imagines a public plan would be less
costly than private plans must keep the following issue front and center: In the
many procedure categories where Medicare’s statutory price does not cover full
provider costs, shortfalls are shifted to private payers who end up subsidizing the
public program. So, will a public plan negotiate rates or simply use fiat as a
means of gaining subsidies from private insurance?
• Private insurers must combat fraud -- or go out of business. Indeed, these payers
have every incentive to invest in antifraud personnel and strategies down to the
point where return and investment are equal. But anyone who thinks that a public
plan could serve as a "yardstick" for the private sector needs to consider
Medicare’s dismal record with regard to fraud, waste and other abuse.
• In fact, the total amount of Medicare fraud is unknown. The government does not
measure or estimate fraud in its programs; instead, it measures payments made “in
error.” According to Medicare's own most recent data, payments made in error
amount to over $10 billion annually. (Medicaid's payment errors in 2007 equaled
a whopping $32.7 billion, according to a report by the Department of Health and
Human Services.) Others have claimed Medicare’s payments made in error are
much higher. Even with the inclusion of the budget of the inspector general for
the Department of Health and Human Services, Medicare spends less than onefifth
of 1% on antifraud measures -- a small fraction of what private plans invest
in their efforts to build a network of honest providers.
• And because of the vagaries of politics, in four of the past five years Congress has
turned back Medicare’s pleas for $579 million of additional antifraud funding, on
the grounds that these dollars subtract from the budget funds for curing cancer
and anti-obesity campaigns. Based on experience, Congress will always
underinvest in fraud. Yet according to a House of Representatives Budget
Committee hearing in July 2007, return on investment for certain Medicare
antifraud measures were estimated to be in excess of 13-1. Will a public plan also
hemorrhage from fraud because of chronic Congressional underinvestment?
o “The significant size of Medicare’s erroneous payments suggests that the
program’s low administrative costs may come at a price.” MedPAC, March 2009
o “The traditional fee-for-service Medicare program does relatively little to
manage benefits, which tends to reduce its administrative costs but may raise its
overall spending relative to a more tightly managed approach.” CBO, December
2008 Private administrative costs cover important services like disease management programs
and research to determine which interventions actually work. It is ironic that the same
advocates who frequently cite the need for the government to spend billions in taxpayer
dollars to improve health outcomes are the same who decry the high administrative costs
in health care plans. As Ezekiel Emanuel, an adviser to President Obama on health care
(and brother of White House Chief of Staff Rahm Emanuel), wrote, “The idea that we
could wring billions of dollars in savings [from cutting administrative costs] is seductive,
but it wouldn’t really accomplish that much. For one thing, some administrative costs are
not only necessary but beneficial. Following heart-attack or cancer patients to see which
interventions work best is an administrative cost, but it’s also invaluable if you want to
improve care.”3 Additionally, Medicare loses up to $60 billion to Medicare fraud each
year due to inadequate scrutiny of claims. While private health providers pay (out of
administrative costs) for programs to keep fraud to a minimum, the federal government
invests little, and as a result taxpayers pay more.
• None of these considerations should be interpreted as a defense of the status quo,
or a denial of the fact that major health reform is needed.
• The creation of a government-run public insurance plan would make the
government the gatekeeper – the controller of prices and the provider of coverage.
Health care decisions would increasingly be made in Washington and subject to
political pressures that take into account neither patient needs nor economic
realities. The cost of the program would be such that the effort to pay for it would
become the central concern of American politics – crowding out other
government priorities. As is seen around the world, health care is a central part in
ballooning welfare states.
• There are really only two ways to keep costs under control: by building a real
marketplace in which cost-conscious consumers make choices in a more efficient
delivery system or by imposing arbitrary limits, determined by the government,
on care. 3 Ezekial Emanual and Shannon Brownlee, Washington Post Op-Ed, “5 Myths on Our Sick Health Care System,” November 23, 2008.
Sunday, May 31, 2009
Keeping your employees fit!
A study done for the California Department of Health Services on chronic disease, estimated that physical inactivity, obesity, and being overweight cost California $21.7 billion in direct and indirect medical care, workers' compensation, and lost productivity in the year 2000. These costs were projected to rise to over $28 billion in 2005. More than 75 percent of medical care costs are attributable to largely preventable chronic diseases.
Research from diverse and reputable sources report a significant relationship between employee health and fitness and increased productivity, reduced absenteeism, employee loyalty, and decreased health care costs associated with illness, injury, and worker compensation.
In these difficult economic times, implementing an employee wellness program may be one of the wisest business decisions you can make to reduce costs. If you invest in maintenance for equipment and facilities to achieve long-term cost efficiency, it makes sense to do it for your workforce.
In fact, the National Business Group of Health says employers can achieve a potential three to one ROI, or $300 for every $100 spent per employee, on implementing preventive services and health improvement programs.
Let us help you design a low cost employee health and fitness program. Many Health Plans offer value added programs and ancillary health programs can include value added health and fitness programs. One of the best ways to see these programs blossom and work is to offer small incenetives to employees using and maintaing these programs.
Contact us for more information at info@amsinsure.com or 800-334-7875.
Tuesday, May 26, 2009
Despite the Market Downturn, Participants Continue Contributions to Their Retirement Plans
Many financial publications show; a stay-the-course mentality that is either a stubbornness or inertia that could be hazardous to wealth. It's not that experts are suggesting ordinary investors ought to stop kicking funds into the retirement kitty or that they should completely overhaul the investment strategy. It's that investors can't ignore the last few years of volatility, as well as a decade where the broad market has been flat to down, when picking the proper investment strategy for their retirement savings. “Hewitt Associates released a study showing that, despite record losses in 401(k) accounts in 2008, savings and investing habits barely changed at all."
While this view counters the principal of Dollar Cost Averaging, one must consider the nature of savings for retirement. Anything short of a time line where someone is close to retirement and could be adversely affected by a down turn, the advantage of continued savings can far out way the loss of available dollars from not contributing to ones retirement plan.The simple idea of continuing to make contributions allows the principal of Dollar Cost Averaging to work over a long period of time. As one makes a contribution it is invested as the plan is instructed to by the plan participant at the cost of that investment for that contribution. In times of a good market the amount of savings may buy less of unit’s investment and when times are on a downturn the same contribution will buy more units of an investment. This therefore allows over a period of time to have a continual growth in funds and fund values which at any given moment in time may have more or less value.
The timing of when a person is going to retire should reflect the nature of the investment as to risk being high or low. In today’s market one can utilize life style or target investment vehicles where professionally managed funds will help to provide the best tools for someone not wanting to develop their own investment model.The most important consideration is that of time and not market volatility, as time shows that there is a general uptrend over many years, and while the market may dip further or may start a recovery which for some time does not get back to the previous highs, investing over time will prove to be the best hedge for long term growth.
Tuesday, May 19, 2009
2010 Minimums and Maximums for Health Savings Accounts Plans and High-Deductible Health Plans
On May 14, 2009, the Internal Revenue Service (IRS) released Revenue Procedure 2009-29,1 which announced various inflation-adjusted amounts for 2010 for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). The IRS calculates the annual adjustments using the 12-month period ending March 31.
The new numbers are shown in the chart below.
2010 Minimums and Maximums for HSAs* and HDHPs
Maximum
$3,050 Individual
$6,150 Family
Annual HSA Contribution
(up $50 from $3,000 in 2009) Individual
(up $200 from $5,950 in 2009) Family
Minimum
$1,200 Individual
$2,400 Family
HDHP Deductible
(up $50 from $1,150 in 2009) Individual
(up $100 from $2,300 in 2009) Family
Maximum
None Individual
None Family
HDHP Deductible
Maximum
$5,950 Individual
$11,900 Family
HDHP Expense ***
Out of Pocket (up $150 from $5,800 in 2009) Individual
(up $300 from $11,600 in 2009) Family
*HSAs, established by the Medicare Modernization Act (MMA) as of January 1, 2004, allow individuals or employers to contribute to an HSA as long as the individual is covered under an HDHP.
** As in 2009, individuals age 55 or over can contribute an additional $1,000 to their HSAs in 2010 and subsequent years.
*** The out-of-pocket expense does not include premiums.
Group Health Plans
Individual and Family Health Plans
The new numbers are shown in the chart below.
2010 Minimums and Maximums for HSAs* and HDHPs
Maximum
$3,050 Individual
$6,150 Family
Annual HSA Contribution
(up $50 from $3,000 in 2009) Individual
(up $200 from $5,950 in 2009) Family
Minimum
$1,200 Individual
$2,400 Family
HDHP Deductible
(up $50 from $1,150 in 2009) Individual
(up $100 from $2,300 in 2009) Family
Maximum
None Individual
None Family
HDHP Deductible
Maximum
$5,950 Individual
$11,900 Family
HDHP Expense ***
Out of Pocket (up $150 from $5,800 in 2009) Individual
(up $300 from $11,600 in 2009) Family
*HSAs, established by the Medicare Modernization Act (MMA) as of January 1, 2004, allow individuals or employers to contribute to an HSA as long as the individual is covered under an HDHP.
** As in 2009, individuals age 55 or over can contribute an additional $1,000 to their HSAs in 2010 and subsequent years.
*** The out-of-pocket expense does not include premiums.
Group Health Plans
Individual and Family Health Plans
Monday, May 18, 2009
The Business Owner’s Bonus Plan
Are you a business owner?
Is your business organized as an S corporation, partnership, or LLC?
If so, you probably have a big question on your mind: “What about me?” As a business owner, you spend time, money, and other resources to build your business. This includes the costs of recruiting, rewarding, and retaining key employees. But eventually you need to think about yourself and start saving for retirement.
“What About Me?”
Perhaps you have already helped some of your key employees prepare for retirement by offering supplemental benefits such as nonqualified deferral plans or salary continuation benefits. Or maybe you have offered your key employees 401(k) Look-Alike Plans or some sort of split dollar benefit. But as the owner of a “pass through” entity (S corporation, partnership, or LLC), you have been told that these arrangements are not available to you. So after helping your key employees save for retirement, you ask again: “WHAT ABOUT ME?” The answer to “What about me?” is the Business Owner’s Bonus Plan. The Business Owner’s Bonus Plan is personally owned benefit plans which can help small business owners create a tax-efficient source of supplemental retirement income.
Potential Benefits
The Business Owner’s Bonus Plan uses life insurance purchased with after-tax funds to provide both death benefit protection and cash value accumulation which can be used to supplement the business owner’s retirement income. This arrangement can be an effective strategy for providing a tax-efficient source of supplemental retirement income along with death benefit protection for the business or the owner’s family.
The Business Owner’s Bonus Plan can provide the following potential benefits for the business owner:
Supplemental Retirement Income – Bonuses are used to purchase a life insurance policy which accumulates cash values.- Tax-Deferred Growth – No income tax is payable while money is accumulating inside the life insurance policy.
- Tax-Free Income1 – Provided the life insurance policy is not structured as a modified endowment contract (“MEC”), the business owner will be able to attain tax-free income through a combination of policy withdrawals and loans.
- Income Tax-Free Death Benefit2 – The life insurance policy provides protection for the executive’s family in the event of death.
- No IRS Distribution Requirements or Penalties – Distributions from a Business Owner’s Bonus Plan can occur before age 59 ½ without a premature distribution penalty from the IRS, and there are no required minimum distributions at age 70 ½ or thereafter.
Contact us for additional information: 800-334-7875 or email info@amsinsure.com
Wednesday, May 13, 2009
President Obam's Letter regarding initial Health Care Debate in Congress
Good afternoon,
You are receiving this email because you signed up at WhiteHouse.gov. My staff and I plan to use these messages as a way to directly communicate about important issues and opportunities, and today I have some encouraging updates about health care reform. The Vice President and I just met with leaders from the House of Representatives and received their commitment to pass a comprehensive health care reform bill by July 31.
We also have an unprecedented commitment from health care industry leaders, many of whom opposed health reform in the past. Monday, I met with some of these health care stakeholders, and they pledged to do their part to reduce the health care spending growth rate, saving more than two trillion dollars over the next ten years -- around $2,500 for each American family.
Then on Tuesday, leaders from some of America's top companies came to the White House to showcase innovative ways to reduce health care costs by improving the health of their workers. Now the House and Senate are beginning a critical debate that will determine the health of our nation's economy and its families. This process should be transparent and inclusive and its product must drive down costs, assure quality and affordable health care for everyone, and guarantee all of us a choice of doctors and plans.
Reforming health care should also involve you. Think of other people who may want to stay up to date on health care reform and other national issues and tell them to join us here:
http://www.whitehouse.gov/EmailUpdates
Health care reform can't come soon enough. We spend more on health care than any country, but families continue to struggle with skyrocketing premiums and nearly 46 million are without insurance entirely. It is a priority for the American people and a pillar of the new foundation we are seeking to build for our economy. We'll continue to keep you posted about this and other important issues.
Thank you,
Barack Obama
P.S. If you'd like to get more in-depth information about health reform and how you can participate, be sure to visit http://www.HealthReform.gov.
You are receiving this email because you signed up at WhiteHouse.gov. My staff and I plan to use these messages as a way to directly communicate about important issues and opportunities, and today I have some encouraging updates about health care reform. The Vice President and I just met with leaders from the House of Representatives and received their commitment to pass a comprehensive health care reform bill by July 31.
We also have an unprecedented commitment from health care industry leaders, many of whom opposed health reform in the past. Monday, I met with some of these health care stakeholders, and they pledged to do their part to reduce the health care spending growth rate, saving more than two trillion dollars over the next ten years -- around $2,500 for each American family.
Then on Tuesday, leaders from some of America's top companies came to the White House to showcase innovative ways to reduce health care costs by improving the health of their workers. Now the House and Senate are beginning a critical debate that will determine the health of our nation's economy and its families. This process should be transparent and inclusive and its product must drive down costs, assure quality and affordable health care for everyone, and guarantee all of us a choice of doctors and plans.
Reforming health care should also involve you. Think of other people who may want to stay up to date on health care reform and other national issues and tell them to join us here:
http://www.whitehouse.gov/EmailUpdates
Health care reform can't come soon enough. We spend more on health care than any country, but families continue to struggle with skyrocketing premiums and nearly 46 million are without insurance entirely. It is a priority for the American people and a pillar of the new foundation we are seeking to build for our economy. We'll continue to keep you posted about this and other important issues.
Thank you,
Barack Obama
P.S. If you'd like to get more in-depth information about health reform and how you can participate, be sure to visit http://www.HealthReform.gov.
Tuesday, May 12, 2009
Benefit News
- Newsletters: click here to view
Employee Benefit Newsletter current issue here
The latest benefit information for Business Owners, HR Managers, CFO’s. We cover changing markets and legislation, along with what others are doing today and looking into the future of benefits.
Business Edge Newsletter current issue here
Keeping the business owner up to date on financial news, benefits and resources to help manage your business.
Financial Monitor Newsletter current issue here
Stay abreast of current financial topics for Individuals and Families.
21st Century Retirement Planning Newsletter is up to date, informative and packed with ideas you will want to know about now in planning for retirement."
Insurance Online
click here
Need Insurance For Your Small Business? Health, Dental, Life, Vision Plans and More. Shopping for group insurance has never been easier or more convenient. We offer a wide selection of the biggest and best names in the business. With over 750+ group insurance plans in our nationwide database, you're certain to find a plan that will offer you the most value for your insurance dollar.
Need Insurance For Your Small Business? Health, Dental, Life, Vision Plans and More. Shopping for group insurance has never been easier or more convenient. We offer a wide selection of the biggest and best names in the business. With over 750+ group insurance plans in our nationwide database, you're certain to find a plan that will offer you the most value for your insurance dollar.
Friday, May 08, 2009
Controversary on Taxing Employer Provided Health Care
Chairman of the House Ways and Means committee Representative Charles Wrangle said he could not support the taxing of health care paid for by business.
Under current law, employers can take tax deductions for their contributions to the cost of employee health insurance, and the benefits are not counted as taxable income to workers.
While the Senate Chairman of the Finance committee said he would support this idea and Mr. Wrangle had not suggested an alternative to how to fund health care for the people currently 45 million uninsured, it is President Obama who has suggested that the tax be used for that purpose. This idea was originally floated by Senator MC Cain and rejected by President Obama who latter changed his support on recommendations from his advisers.
Many in Business, Labor Unions and others have stepped up there criticism of the idea of taxing business financed health care for employees. Eliminating the tax break “has a huge potential of destabilizing the private market and leaving more Americans uninsured.
While there will be many more discussions as Health Care is a candidate for change, it is unsure on the direction which the President, Congress and the public take over the next several months. Stay tuned and informed, as well as consider voicing your opinion by writing your congress people and senators.
Thursday, March 26, 2009
Independent Businesses Can Cost Effectively Add Valuable Retirement Planning Tools to Employee Benefits
Independent businesses can cost effectively add value to employee benefit packages by including a simple retirement planning software tool for employees to track and manage their personal retirement scenario, according to financial planning software experts (http://www.amsinsure.com/).
Reported in early march by The Wall Street Journal the Obama Administration’s 2010 budget requires businesses two years and older with more than 10 employees to automatically enroll them in retirement savings plans. Leading associations for businesses affected by the mandate, the National Federal of Independent Businesses (http://www.nfib.com/) and the National Small Business Association (http://www.nsba.biz/), have expressed interest in the financial and risk consequences of the proposal.
"Although the costs and details are under debate, there is almost universal agreement that small businesses will become more involved in their employees’ retirement preparation and planning,”. “Experience tells us that whether by government mandate or voluntary participation, small businesses that deepen their commitment to employees’ long-term financial well-being will gain loyalty and competitive advantage.”
“Employers that Maintain Benefits Through Tough Times Will Gain Loyalty,” an article in the Credit Union Times (http://www.cutimes.com/) cites remarks by Dallas Salisbury, president of the Employee Benefits Research Institute (http://www.ebri.org/).
The entity that can maintain its benefits through this process is going to be in the strongest position in terms of retaining employees and adding to the workforce. If … it worked its way through it and honored all its commitments, it will have earned loyalty … When times are tough is when you can build your strongest bonds with your workers. Don’t be shy about communicating to your employees that you’re doing this as a matter of conscious decision making. It may squeeze earnings a little, but it is important.
Thursday, March 12, 2009
White paper uploaded on how a small business can survive during recession
A white paper for small business entrepreneurs has been uploaded to the blog. This paper exclusively covers the planning and strategy one should follow during recession. It is based on comprehensive research and the advices from small business experts.
You can download it from the download section with a title: This article was on Linked in Portal and is a good way to work with other business all looking to be mutually supportive.
“How Small Businesses Can Survive Recession”
Let us in addition to the points in the white paper help to reduce your companies;
Benefits costs:
Payroll costs:
Receive free HR portal:
Updated newsletters:
You can download it from the download section with a title: This article was on Linked in Portal and is a good way to work with other business all looking to be mutually supportive.
“How Small Businesses Can Survive Recession”
Let us in addition to the points in the white paper help to reduce your companies;
Benefits costs:
Payroll costs:
Receive free HR portal:
A great tool for business if you have not found it is Linked In (google it), please look for my profile also, under John A. Beyer, Agency Marketing Service.
Updated newsletters:
Wednesday, March 04, 2009
National Results: 2008 UBA Health Plan Survey
Annual Benchmark Survey Shows Average Annual Health Plan Cost is $7,327 Per Employee; Largest Percentage Increase in CDHP Adopters Comes from Employers in the Northeast with a 90% Increase Over the 2007 UBA Health Plan Survey Results.
With responses from 18,019 health plans sponsored by 12,860 employers nationwide who employ nearly 2.4 million people (approximately 5.4 million employees and their families), the 2008 UBA Health Plan Survey is the nation's largest and most comprehensive survey of plan design and plan costs. "With a growth rate of approximately 10 percent over last year's previously unprecedented number of respondents, the report defines benchmarks for a greater number of specific industries, regions, and employee size categories than have been available previously," said Bill Stafford, UBA’s vice president of member services, "The results will be especially valuable to employers in evaluating the effectiveness of their current plans and to knowledgeably making future adjustments while keeping their benefits competitive and cost-effective."
"Certainly the continued growth of CDHPs is a key headline to come out of this year’s survey," said Stafford. "Fee For Service and Exclusive Provider Organizations have now virtually disappeared from the market, and HMOs are losing ground as employers seek to help contain the rising cost of health care and insurance premiums."
With responses from 18,019 health plans sponsored by 12,860 employers nationwide who employ nearly 2.4 million people (approximately 5.4 million employees and their families), the 2008 UBA Health Plan Survey is the nation's largest and most comprehensive survey of plan design and plan costs. "With a growth rate of approximately 10 percent over last year's previously unprecedented number of respondents, the report defines benchmarks for a greater number of specific industries, regions, and employee size categories than have been available previously," said Bill Stafford, UBA’s vice president of member services, "The results will be especially valuable to employers in evaluating the effectiveness of their current plans and to knowledgeably making future adjustments while keeping their benefits competitive and cost-effective."
"Certainly the continued growth of CDHPs is a key headline to come out of this year’s survey," said Stafford. "Fee For Service and Exclusive Provider Organizations have now virtually disappeared from the market, and HMOs are losing ground as employers seek to help contain the rising cost of health care and insurance premiums."
Tuesday, March 03, 2009
Leading the News on Doctors requesting fees up front
More physicians said to be seeking medical fees at time of service.
On the front page of its Health section, the Washington Post (3/3, HE1, Kritz) reports, "More and more physicians are asking for the patient's share of that day's medical fees, including any deductible set by the insurer, at the time of the visit." According to Red Gillen, an analyst with consulting firm Celent, "in the past few years...employers and insurers have shifted more [medical] costs to consumers," and as a result, those payments are "an increasingly large share of doctors' incomes." And, "largely through new software programs that assess both a patient's insurance coverage and the day's charges," patients can now see "a full adjudication of the bill" within "just minutes" of their visit.
But, Mark Rukavina, executive director of the Access Project, notes that "not all providers have let their patients know that payment[s]...are expected at the time of care."
William Dolan, a trustee of the American Medical Association, and an orthopedic surgeon, explains that "the AMA has no policy on patients being asked for payment at the time of care but suggests that doctors give patients warning weeks before implementing a new payment policy."
On the front page of its Health section, the Washington Post (3/3, HE1, Kritz) reports, "More and more physicians are asking for the patient's share of that day's medical fees, including any deductible set by the insurer, at the time of the visit." According to Red Gillen, an analyst with consulting firm Celent, "in the past few years...employers and insurers have shifted more [medical] costs to consumers," and as a result, those payments are "an increasingly large share of doctors' incomes." And, "largely through new software programs that assess both a patient's insurance coverage and the day's charges," patients can now see "a full adjudication of the bill" within "just minutes" of their visit.
But, Mark Rukavina, executive director of the Access Project, notes that "not all providers have let their patients know that payment[s]...are expected at the time of care."
William Dolan, a trustee of the American Medical Association, and an orthopedic surgeon, explains that "the AMA has no policy on patients being asked for payment at the time of care but suggests that doctors give patients warning weeks before implementing a new payment policy."
Saturday, February 21, 2009
Lean Times Call for Cutbacks in Health Care Benefits
Bailout Offers Some Relief to Unemployed, But Part-Time Staff Stand to Lose Insurance
Employers are cornered into making distressing decisions between providing health care benefits to workers and staying in business during a recession, say experts.
Employers are cornered into making distressing decisions between providing health care benefits to workers and staying in business during a recession, say experts.
“Employers are cutting benefits for part-time employees,” says John Beyer, owner of AMS Benefits Insurance Services, an insurance broker. “We are definitely seeing employers require increased employee participation in the monthly premiums.”
Though insurance lines have decreased in premium price, health care rates are rising, in turn causing reduction in staff for employers and loss of benefits for employees and their dependents.
He adds that health insurance premiums were a source of concern even before the downturn.
To help you find better cost solutions for your company:
http://www.amsinsure.com/ or 800-334-7875
Thursday, February 19, 2009
The Furlough Weekend: An Alternative To Layoffs?
Would you like 10 more three-day weekends per year?
Would you still take them if the third day was unpaid -- and if your alternative was getting laid off?
One of the biggest costs of any employer is payroll. In the ongoing economic crisis, employers are looking for any way to cut costs and many are resorting to layoffs.
But many others — from an RV-maker in Oregon to the state government of California — have turned to involuntary furloughs, or unpaid days off, as a way of cutting payroll costs while avoiding painful layoffs.
That got us here at The Ticker thinking: What if employees facing furlough could choose their furlough days?
Call it the Furlough Weekend.
While this idea may not be for everyone due the type of work, importance of a worker or manager it can be employed by those who would be creative and want to keep valuable workers availabel for the future when the economy will turn around.
Would you still take them if the third day was unpaid -- and if your alternative was getting laid off?
One of the biggest costs of any employer is payroll. In the ongoing economic crisis, employers are looking for any way to cut costs and many are resorting to layoffs.
But many others — from an RV-maker in Oregon to the state government of California — have turned to involuntary furloughs, or unpaid days off, as a way of cutting payroll costs while avoiding painful layoffs.
That got us here at The Ticker thinking: What if employees facing furlough could choose their furlough days?
Call it the Furlough Weekend.
While this idea may not be for everyone due the type of work, importance of a worker or manager it can be employed by those who would be creative and want to keep valuable workers availabel for the future when the economy will turn around.
Tuesday, February 17, 2009
It's time to fix the 401(k)
The 401(k) plan can be a powerful savings tool. But for more of us to enjoy a secure retirement, we need a bigger, better idea.
Alicia Munnell is a Harvard-trained economist. She served as an assistant secretary of the Treasury and is regarded as one of America's foremost experts on 401(k)s. You'd think she'd be terrific at managing her own retirement, but even she has to fess up to some mistakes. "When my son got married, I took some money out of my plan to help," says Munnell, who heads Boston College's Center for Retirement Research (CRR). "And I ended up paying a 10% penalty and taxes."
In the jargon of the retirement business, that's called leakage. It's a common problem: About 60% of job switchers with a 401(k) plan cash it out.
That's just one of the many pitfalls. Lots of people start saving too late, save too little or make missteps with their portfolio. And all of us are vulnerable to risks that we can't control. Your employer might not offer a plan or might choose one with second-rate investments. Or you may hit a market storm at precisely the wrong moment: the year you stop working.
That last problem is especially obvious now. Over the past 12 months, a 64-year-old investor in an age-tailored "target date" mutual fund has lost 26%. Savers with high balances can recover from that. But many lost more, and the typical near-retiree with a 401(k) has less than $50,000 stashed away in it. That will spend down quickly, and once the money's gone, it doesn't matter if the market roars back.
A recent CRR study shows that a bear market retiree could easily end up with just half the income from a 401(k) as someone retiring during a bull market. "Any system that delivers such wild swings in retirement income is just not working," says Munnell.
She isn't the only one who's worried. A growing number of policy experts who study 401(k)s think they fall short. So why not rethink America's retirement system from the ground up? No, it won't be easy: We're in an economic crisis, and lobbyists for the financial services industry will fight like tigers for the status quo. But that doesn't make the task any less urgent. Some 78 million baby boomers are hurtling toward retirement. Their poverty, if it comes to that, will be a burden to their children and lead to calls for taxpayers to support them.
What would a better system look like? It would be universal and strike a more conservative balance of risk and return. Most of all, it would be designed for savers, not employers or money managers. Here are five principles for reform.
To learn more:
It's time to fix the 401(k)
Alicia Munnell is a Harvard-trained economist. She served as an assistant secretary of the Treasury and is regarded as one of America's foremost experts on 401(k)s. You'd think she'd be terrific at managing her own retirement, but even she has to fess up to some mistakes. "When my son got married, I took some money out of my plan to help," says Munnell, who heads Boston College's Center for Retirement Research (CRR). "And I ended up paying a 10% penalty and taxes."
In the jargon of the retirement business, that's called leakage. It's a common problem: About 60% of job switchers with a 401(k) plan cash it out.
That's just one of the many pitfalls. Lots of people start saving too late, save too little or make missteps with their portfolio. And all of us are vulnerable to risks that we can't control. Your employer might not offer a plan or might choose one with second-rate investments. Or you may hit a market storm at precisely the wrong moment: the year you stop working.
That last problem is especially obvious now. Over the past 12 months, a 64-year-old investor in an age-tailored "target date" mutual fund has lost 26%. Savers with high balances can recover from that. But many lost more, and the typical near-retiree with a 401(k) has less than $50,000 stashed away in it. That will spend down quickly, and once the money's gone, it doesn't matter if the market roars back.
A recent CRR study shows that a bear market retiree could easily end up with just half the income from a 401(k) as someone retiring during a bull market. "Any system that delivers such wild swings in retirement income is just not working," says Munnell.
She isn't the only one who's worried. A growing number of policy experts who study 401(k)s think they fall short. So why not rethink America's retirement system from the ground up? No, it won't be easy: We're in an economic crisis, and lobbyists for the financial services industry will fight like tigers for the status quo. But that doesn't make the task any less urgent. Some 78 million baby boomers are hurtling toward retirement. Their poverty, if it comes to that, will be a burden to their children and lead to calls for taxpayers to support them.
What would a better system look like? It would be universal and strike a more conservative balance of risk and return. Most of all, it would be designed for savers, not employers or money managers. Here are five principles for reform.
To learn more:
It's time to fix the 401(k)
Thursday, February 05, 2009
Tool of the Month: Employee Handbook
While it is considered a best practice as oppose to a legal requirement to have an established company Employee Handbook, not having one could put your business at greater risk of unfair employment-related claims.
An effective Employee Handbook should include topics and items such as:
At-Will Statement,
Equal Employment Opportunity Statement,
Harassment Policy,
Confidentiality Policy,
Disclaimer, and
Acknowledgement of Receipt.
In the HR Support Center website under the “Essentials” tab section, you can easily download a sample template for handy reference. A free Value Added service to our clients.
An effective Employee Handbook should include topics and items such as:
At-Will Statement,
Equal Employment Opportunity Statement,
Harassment Policy,
Confidentiality Policy,
Disclaimer, and
Acknowledgement of Receipt.
In the HR Support Center website under the “Essentials” tab section, you can easily download a sample template for handy reference. A free Value Added service to our clients.Wednesday, February 04, 2009
Study suggests seniors who reach Medicare's "doughnut hole" are less likely to use prescription drugs.
CQ (2/4, Attias) reports, "Two studies released Tuesday show that, while the Medicare Part D drug benefit reduced out-of-pocket spending for seniors and increased their use of essential medicines during its first year in 2006, Part D patients increased their use of less beneficial medications and decreased medication usage when they entered the coverage gap known as the 'doughnut hole.'" Therefore, the studies' authors "recommended redesigning the benefit to provide additional coverage in the doughnut hole to prevent adverse health effects in seniors." CQ notes that the "coverage gap was originally implemented to keep the cost of the program within the amount specified by the congressional budget resolution." Although "the Centers for Medicare and Medicaid Services did not comment directly on the studies, agency spokesman Peter Ashkenaz said CMS data show that in 2007 and 2008, the average number of prescriptions filled showed little change as enrollees entered the coverage gap." Both studies were published online in Health Affairs.
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