WHAT IS AFLAC?
93% of Americans know our name, and our duck, but, not everyone knows exactly what we do. However, 40 million people worldwide and 400,000 businesses nationally feel that AFLAC is the answer. The answer to what?
Let's face it. We are living in unique times and now more than ever families across our country are living paycheck to paycheck. People are sitting in hospital waiting rooms wondering how they will pay the bills for that expensive chemotherapy, for the injury that has taken them out of work for a month, or for those expensive medications. You see, many people don't know what we do, but what we do is simple ... WE ARE THERE FOR YOU WHEN YOU NEED US THE MOST!
The easiest way to explain what AFLAC is, is to explain what we are not. WE ARE NOT MAJOR MEDICAL INSURANCE. We are much different. Major medical sends all the benefits to the doctors and hospitals. We do the opposite. WE PAY YOU DIRECTLY SO THAT YOU CAN USE THE MONEY EXACTLY HOW YOU NEED TO. That's what we do.
WHY WOULD ANYONE NEED MONEY DURING AN ILLNESS OR ACCIDENT IF THEY HAVE MEDICAL INSURANCE?
It is because three things happen during this time. First, there are out of pocket expenses that no medical insurance will cover 100%. For example, with a cancer diagnosis, major medical only covers about 1/3 of the associated costs. Second, just because you are sick or injured, the meter at home doesn't stop spinning. Everyday living expenses like groceries, car payment, rent, utilities and mortgage keep building up. Third, and worst of all, is LOST INCOME. There is no worse time for a family to lose income from an illness or accident then when bills keep coming. Sometimes, hospitals and physicians will work with you to pay off bills; the mortgage company, power company and grocery store will not. The truth is, at these times, you need help.
AFLAC IS THE ANSWER. WE PROVIDE PEACE AND SECURITY WHEN YOU NEED IT MOST!
WE'VE GOT YOU UNDER OUR WING!
Monday, February 28, 2011
Tuesday, February 22, 2011
Long-Term Care Program Needs Changes, Officials Say
Long-Term Care Needs Changes, Officials SayBy ROBERT PEAR
Published: February 21, 2011
WASHINGTON — One of Senator Edward M. Kennedy’s legacies in the new health care law, intended to allow the chronically ill and people with disabilities to continue living in their homes, is too costly to survive without major changes, Obama administration officials now say.
Jim Lo Scalzo/European Pressphoto Agency
Kathleen Sebelius, the health secretary, says she can fix the long-term care program in the Obama administration’s health care reform package.
Enlarge This Image
Jim Lo Scalzo/European Pressphoto Agency
Senator John Thune says Congress did not give the Obama administration so much flexibility in the long-term care insurance program found in its health law.
Republican lawmakers, who have vowed to repeal the health care law, cite the administration’s acknowledgment as yet another reason to do so. But the health and human services secretary, Kathleen Sebelius, says the law gives her plenty of authority to make the necessary changes to the program without Congressional action.
To make the program viable, Ms. Sebelius said, she is considering changes in the eligibility criteria, including employment and earnings requirements, to ensure that only active workers may enroll. She also said she favored adjusting premiums to rise with inflation.
Senator Tom Harkin, Democrat of Iowa and chairman of the Senate health committee, encouraged the administration to make any changes that might be required to keep the program fiscally sound, so “no one with a disability will be forced to live in an institution.”
Under the current law, the program will allow workers 18 and older to buy insurance from the government to cover the costs of long-term care. After paying premiums for at least five years, they are then eligible for benefits if they become unable to perform basic activities of daily living because of chronic illness or crippling injury. The program is meant for people with severe disabilities who want to live in the community, though benefits can also be used to help pay for nursing home care or assisted living.
An employer can arrange for workers to be enrolled automatically, with premiums paid through payroll deductions. An employee can opt out at any time and, apparently, re-enroll later.
Advocates for older Americans and for people with disabilities say the need for such help will explode as baby boomers age. President Obama’s 2012 budget seeks $93.5 million for a huge “information and education” campaign, with the goal of having 7.7 million people in the long-term care insurance program by 2015.
In debate on the health care bill in late 2009, Republicans and moderate Democrats repeatedly warned that sicker people were more likely than healthy ones to sign up for the long-term care plan. Enrollment is voluntary, but the law stipulates that premiums must be set high enough to guarantee the solvency of the program over 75 years. Higher premiums would discourage healthier people from participating, economists and actuaries say.
Administration officials, who played down such concerns 15 months ago, say they now share them. Under questioning by a Republican at a Senate hearing last week, Ms. Sebelius said the original version of the program, known as Community Living Assistance Services and Supports, or Class, was “totally unsustainable.”
She told the House Ways and Means Committee, “We very much share the concerns that have been expressed that, as written into law, the framework of the program was not sustainable.”
But Ms. Sebelius resisted Republican demands for the program’s repeal. Instead, she said, she is considering changes to make the program “significantly different than the framework that the law itself describes.” A main goal, she said, is to attract more healthy people, thus spreading the financial risk across a larger group.
For example, Ms. Sebelius said, she may alter eligibility criteria, including employment and earnings requirements, to make sure people are established workers when they enroll.
Federal officials have not specified the amount of premiums or benefits. The Congressional Budget Office estimated that nearly 10 million people might enroll in the program by 2019 and said that premiums would start at $123 a month for benefits expected to average $75 a day. Medicare actuaries estimated that 2.8 million people would participate within three years and said premiums needed to be about $240 a month to cover program costs.
Under the current law, Ms. Sebelius said, a person’s premiums will generally stay the same, but cash benefits will increase with inflation. She said she favored adjusting premiums to rise with inflation, a change that could deter some workers from participating.
Federal officials said they were also looking for ways to discourage workers from dropping out and re-enrolling.
The law governing the program specifies that “no taxpayer funds shall be used for payment of benefits,” a provision Ms. Sebelius said was “nonnegotiable.” The health secretary can, however, adjust premiums as needed to maintain the program’s solvency. Her power to revamp it in other ways is unclear.
“Secretary Sebelius seems to believe that she has more flexibility to change the program than Congress gave her,” said Senator John Thune, Republican of South Dakota.
The law also says that up to 3 percent of the program’s premiums may be used to pay administrative expenses, but since no premiums have been paid, Mr. Obama is seeking the $93.5 million to publicize the program.
“The program’s financial solvency and viability will depend on the enrollment of large numbers of participants,” the White House said in its 2012 budget request. “Employers and individuals will need to have access to information about the need for long-term services and supports and the benefits of the program. It will be crucial to educate employers about how to enroll their employees and to inform individuals about how to enroll directly.”
Public confidence in the program is essential if the government expects millions of people to enroll starting next year. But economists and actuaries have raised many questions.
Richard S. Foster, the chief actuary at the federal Centers for Medicare and Medicaid Services; Alicia H. Munnell, director of the Center for Retirement Research at Boston College; and leaders of the American Academy of Actuaries all said the program would be unstable if, as expected, it attracts disproportionate numbers of people with health problems.
Mr. Foster said his analysis showed the program faced “a significant risk of failure” because people who are or expect to be sick or disabled were more likely to sign up. In a study issued this month, Ms. Munnell, an economic adviser to President Bill Clinton, said more stringent work requirements and an effective national advertising campaign could help attract young, healthy people to the insurance pool.
Even so, she said, “premiums may never reach an affordable level for middle-class households,” so “the program faces enormous challenges.”
Mr. Obama’s debt-reduction commission, a bipartisan advisory body, said in its report late last year that Congress should “reform or repeal” the program.
“The program’s earliest beneficiaries will pay modest premiums for only a few years and receive benefits many times larger,” the panel said, “so that sustaining the system over time will require increasing premiums and reducing benefits to the point that the program is neither appealing to potential customers nor able to accomplish its stated function.”
A version of this article appeared in print on February 22, 2011, on page A18 of the New York edition..
Published: February 21, 2011
WASHINGTON — One of Senator Edward M. Kennedy’s legacies in the new health care law, intended to allow the chronically ill and people with disabilities to continue living in their homes, is too costly to survive without major changes, Obama administration officials now say.
Jim Lo Scalzo/European Pressphoto Agency
Kathleen Sebelius, the health secretary, says she can fix the long-term care program in the Obama administration’s health care reform package.
Enlarge This Image
Jim Lo Scalzo/European Pressphoto Agency
Senator John Thune says Congress did not give the Obama administration so much flexibility in the long-term care insurance program found in its health law.
Republican lawmakers, who have vowed to repeal the health care law, cite the administration’s acknowledgment as yet another reason to do so. But the health and human services secretary, Kathleen Sebelius, says the law gives her plenty of authority to make the necessary changes to the program without Congressional action.
To make the program viable, Ms. Sebelius said, she is considering changes in the eligibility criteria, including employment and earnings requirements, to ensure that only active workers may enroll. She also said she favored adjusting premiums to rise with inflation.
Senator Tom Harkin, Democrat of Iowa and chairman of the Senate health committee, encouraged the administration to make any changes that might be required to keep the program fiscally sound, so “no one with a disability will be forced to live in an institution.”
Under the current law, the program will allow workers 18 and older to buy insurance from the government to cover the costs of long-term care. After paying premiums for at least five years, they are then eligible for benefits if they become unable to perform basic activities of daily living because of chronic illness or crippling injury. The program is meant for people with severe disabilities who want to live in the community, though benefits can also be used to help pay for nursing home care or assisted living.
An employer can arrange for workers to be enrolled automatically, with premiums paid through payroll deductions. An employee can opt out at any time and, apparently, re-enroll later.
Advocates for older Americans and for people with disabilities say the need for such help will explode as baby boomers age. President Obama’s 2012 budget seeks $93.5 million for a huge “information and education” campaign, with the goal of having 7.7 million people in the long-term care insurance program by 2015.
In debate on the health care bill in late 2009, Republicans and moderate Democrats repeatedly warned that sicker people were more likely than healthy ones to sign up for the long-term care plan. Enrollment is voluntary, but the law stipulates that premiums must be set high enough to guarantee the solvency of the program over 75 years. Higher premiums would discourage healthier people from participating, economists and actuaries say.
Administration officials, who played down such concerns 15 months ago, say they now share them. Under questioning by a Republican at a Senate hearing last week, Ms. Sebelius said the original version of the program, known as Community Living Assistance Services and Supports, or Class, was “totally unsustainable.”
She told the House Ways and Means Committee, “We very much share the concerns that have been expressed that, as written into law, the framework of the program was not sustainable.”
But Ms. Sebelius resisted Republican demands for the program’s repeal. Instead, she said, she is considering changes to make the program “significantly different than the framework that the law itself describes.” A main goal, she said, is to attract more healthy people, thus spreading the financial risk across a larger group.
For example, Ms. Sebelius said, she may alter eligibility criteria, including employment and earnings requirements, to make sure people are established workers when they enroll.
Federal officials have not specified the amount of premiums or benefits. The Congressional Budget Office estimated that nearly 10 million people might enroll in the program by 2019 and said that premiums would start at $123 a month for benefits expected to average $75 a day. Medicare actuaries estimated that 2.8 million people would participate within three years and said premiums needed to be about $240 a month to cover program costs.
Under the current law, Ms. Sebelius said, a person’s premiums will generally stay the same, but cash benefits will increase with inflation. She said she favored adjusting premiums to rise with inflation, a change that could deter some workers from participating.
Federal officials said they were also looking for ways to discourage workers from dropping out and re-enrolling.
The law governing the program specifies that “no taxpayer funds shall be used for payment of benefits,” a provision Ms. Sebelius said was “nonnegotiable.” The health secretary can, however, adjust premiums as needed to maintain the program’s solvency. Her power to revamp it in other ways is unclear.
“Secretary Sebelius seems to believe that she has more flexibility to change the program than Congress gave her,” said Senator John Thune, Republican of South Dakota.
The law also says that up to 3 percent of the program’s premiums may be used to pay administrative expenses, but since no premiums have been paid, Mr. Obama is seeking the $93.5 million to publicize the program.
“The program’s financial solvency and viability will depend on the enrollment of large numbers of participants,” the White House said in its 2012 budget request. “Employers and individuals will need to have access to information about the need for long-term services and supports and the benefits of the program. It will be crucial to educate employers about how to enroll their employees and to inform individuals about how to enroll directly.”
Public confidence in the program is essential if the government expects millions of people to enroll starting next year. But economists and actuaries have raised many questions.
Richard S. Foster, the chief actuary at the federal Centers for Medicare and Medicaid Services; Alicia H. Munnell, director of the Center for Retirement Research at Boston College; and leaders of the American Academy of Actuaries all said the program would be unstable if, as expected, it attracts disproportionate numbers of people with health problems.
Mr. Foster said his analysis showed the program faced “a significant risk of failure” because people who are or expect to be sick or disabled were more likely to sign up. In a study issued this month, Ms. Munnell, an economic adviser to President Bill Clinton, said more stringent work requirements and an effective national advertising campaign could help attract young, healthy people to the insurance pool.
Even so, she said, “premiums may never reach an affordable level for middle-class households,” so “the program faces enormous challenges.”
Mr. Obama’s debt-reduction commission, a bipartisan advisory body, said in its report late last year that Congress should “reform or repeal” the program.
“The program’s earliest beneficiaries will pay modest premiums for only a few years and receive benefits many times larger,” the panel said, “so that sustaining the system over time will require increasing premiums and reducing benefits to the point that the program is neither appealing to potential customers nor able to accomplish its stated function.”
A version of this article appeared in print on February 22, 2011, on page A18 of the New York edition..
Tuesday, February 15, 2011
It's okay to 'stall' employees
As published in Employee Benefit News:
One practitioner's advice on putting a new communications twist on taking care of business
By Tina Whitelaw
February 1, 2011
If you issue employee communications only through e-mail or company bulletin board postings, I have news for you: Most employees are not listening.
Like what you see? Click here to sign up for Employee Benefit News daily newsletter to get the latest news and important insight into trends in benefits management.
If you have a slick-looking company intranet and even have taken to social media sites, blogging and tweeting information to employees, guess what? They're still not listening.
Here's the thing: Everyone wants your employees' attention 24 hours a day. Their inboxes are full of e-mails; their phones and iPads are constantly buzzing with text messages, tweets, Facebook updates and RSS feeds.
How can you possibly compete with the latest sports story, TMZ's breaking news on celebs in rehab, an old college girlfriend's updated profile picture or even actual work priorities? You can't. You're just another e-mail, tweet, blog or feed that's vying for their attention. And let's face it; your story isn't very sexy.
I reached this understanding - and my breaking point - after sending e-mail after e-mail, posting bulletin board memos, tweeting to the ether and still constantly hearing, "No one ever told us that."
My team of human resource professionals is extremely creative. So to resolve the communications impasse, we got together and, I'll admit it, we stewed. I vacillated between frustration at the lost time spent communicating with, well, apparently no one, and utter contempt that employees were not paying attention to our very important and useful information.
Finally, I came to my senses and asked my team, "What are we doing wrong?" and "How in the world can we get employees' attention, even if only for a minute or two at a time?"
Light bulb moment
After many "ideation sessions," we still had nothing. Then one team member noted how much time is lost every time someone uses the restroom. After looking at said teammate as if they were completely bizarre, light bulbs went off for someone in the group ... what takes place in the restroom other than the obvious?
In most American homes, the bathroom is the library. An a-ha moment!
For most people, it's not commonplace to walk into the restroom at their office with reading materials in tow. (Note I said "most people.")
If reading is going to take place in an office restroom, materials generally are supplied by the company. Why not take advantage of your momentary captive audience and give them some useful information while they take care of business?
Thus, my tips for best results with bathroom benefits communications:
1. Post the communications at average eye level when seated in the stall.
2. Limit in-stall postings to one page.
3. Purchase side-opening plastic posting sleeves for quick and easy communication rotation.
4. Include content-relevant images. Communication studies show people are more likely to pay attention to a message with pictures.
5. Each new communication piece should catch the eye of the reader and visually alert them to recognize that it contains new information. Some suggestions include using different colored paper with each update or using words like "new" or "update."
6. Have a "Take One" magazine rack in the restroom with several copies of previous postings.
7. Change the postings every two weeks. Waiting longer can cause the communication changes to go under-noticed. Sometimes it takes a few reads to fully digest the message, so changing sooner is not recommended.
So given that bathroom communications may be the most effective means of getting your turn at employee attention, is everything else really background noise? Not really.
Don't use the bathroom as your sole communication pulpit. Use it as one piece of your communication strategy. Continue to tweet to the nine people who are actually following you. Give managers elevator speeches.
Hold meetings. Post, blog, Facebook, Web chat and all that other cool stuff. Everyone hears and learns through different methods, and if your message is important enough (what HR message isn't?), you should use every option available.
WARNING! Bathroom postings cause side effects. You will experience an immediate increase in questions about your communication topic. Your team must be prepared to hold intelligent conversation about your benefits. You'll hear chatter and laughter around the water cooler about your department's new communications antics. By all means, laugh with them. They are actually paying attention!
Tina Whitelaw, SPHR, is the vice president, human resources, at Automobile Protection Corporation - APCO in Norcross, Ga.
One practitioner's advice on putting a new communications twist on taking care of business
By Tina Whitelaw
February 1, 2011
If you issue employee communications only through e-mail or company bulletin board postings, I have news for you: Most employees are not listening.
Like what you see? Click here to sign up for Employee Benefit News daily newsletter to get the latest news and important insight into trends in benefits management.
If you have a slick-looking company intranet and even have taken to social media sites, blogging and tweeting information to employees, guess what? They're still not listening.
Here's the thing: Everyone wants your employees' attention 24 hours a day. Their inboxes are full of e-mails; their phones and iPads are constantly buzzing with text messages, tweets, Facebook updates and RSS feeds.
How can you possibly compete with the latest sports story, TMZ's breaking news on celebs in rehab, an old college girlfriend's updated profile picture or even actual work priorities? You can't. You're just another e-mail, tweet, blog or feed that's vying for their attention. And let's face it; your story isn't very sexy.
I reached this understanding - and my breaking point - after sending e-mail after e-mail, posting bulletin board memos, tweeting to the ether and still constantly hearing, "No one ever told us that."
My team of human resource professionals is extremely creative. So to resolve the communications impasse, we got together and, I'll admit it, we stewed. I vacillated between frustration at the lost time spent communicating with, well, apparently no one, and utter contempt that employees were not paying attention to our very important and useful information.
Finally, I came to my senses and asked my team, "What are we doing wrong?" and "How in the world can we get employees' attention, even if only for a minute or two at a time?"
Light bulb moment
After many "ideation sessions," we still had nothing. Then one team member noted how much time is lost every time someone uses the restroom. After looking at said teammate as if they were completely bizarre, light bulbs went off for someone in the group ... what takes place in the restroom other than the obvious?
In most American homes, the bathroom is the library. An a-ha moment!
For most people, it's not commonplace to walk into the restroom at their office with reading materials in tow. (Note I said "most people.")
If reading is going to take place in an office restroom, materials generally are supplied by the company. Why not take advantage of your momentary captive audience and give them some useful information while they take care of business?
Thus, my tips for best results with bathroom benefits communications:
1. Post the communications at average eye level when seated in the stall.
2. Limit in-stall postings to one page.
3. Purchase side-opening plastic posting sleeves for quick and easy communication rotation.
4. Include content-relevant images. Communication studies show people are more likely to pay attention to a message with pictures.
5. Each new communication piece should catch the eye of the reader and visually alert them to recognize that it contains new information. Some suggestions include using different colored paper with each update or using words like "new" or "update."
6. Have a "Take One" magazine rack in the restroom with several copies of previous postings.
7. Change the postings every two weeks. Waiting longer can cause the communication changes to go under-noticed. Sometimes it takes a few reads to fully digest the message, so changing sooner is not recommended.
So given that bathroom communications may be the most effective means of getting your turn at employee attention, is everything else really background noise? Not really.
Don't use the bathroom as your sole communication pulpit. Use it as one piece of your communication strategy. Continue to tweet to the nine people who are actually following you. Give managers elevator speeches.
Hold meetings. Post, blog, Facebook, Web chat and all that other cool stuff. Everyone hears and learns through different methods, and if your message is important enough (what HR message isn't?), you should use every option available.
WARNING! Bathroom postings cause side effects. You will experience an immediate increase in questions about your communication topic. Your team must be prepared to hold intelligent conversation about your benefits. You'll hear chatter and laughter around the water cooler about your department's new communications antics. By all means, laugh with them. They are actually paying attention!
Tina Whitelaw, SPHR, is the vice president, human resources, at Automobile Protection Corporation - APCO in Norcross, Ga.
Saturday, February 12, 2011
Five Benefits Resolutions For Businesses In 2011
Hartford Business.com
Five Benefits Resolutions For Businesses In 2011
By Matthew G. Berger
01/03/11
As Hartford’s unemployment rate begins to show signs of recovery, business owners are shifting their focus to try to identify ways to retain talent, maintain a healthy workforce and provide additional benefits to employees. The aftermath of the recession and the introduction of landmark health reform have made it a critical time to revisit employee benefits.
As we approach the New Year, here are five resolutions that will guide benefits decisions:
1. Demystify health care reform.
Not surprisingly, health care reform tops the list of concerns for human resources executives in 2011. In an Aflac study of employers and employees, HR executives named “understanding the changing health care landscape” as the second-biggest benefits challenge, and 20 percent said appropriately communicating benefits is also a top challenge. Most of the law will be phased in over the next several years, and the regulations to implement those elements may not be published for some time. With so much confusion around these developments, creating a long-term plan to comply with the law and manage health care costs can be an overwhelming task.
HR professionals should seek out benefits options that soften the impact of cost-shifting and rising out-of-pocket expenses for employees. This includes exploring voluntary solutions that provide employers with choices to fit their employees’ needs at no direct cost
to the company.
2. Increase employee engagement and benefits education.
There is often a large disparity between HR executives and their employees when it comes to the effectiveness of benefits communications. According to the Aflac study, 40 percent of HR executives said they believed they were “extremely/very” effective in communications about benefits, whereas 67 percent of employees rated their HR departments “somewhat or not very/not at all” effective.
Given the growing complexities brought on by health reform, 2011 is an ideal time to close that communications gap. For one, employees will need education and advice about the potential impact the flexible spending account limitations and caps will have on their budgets.
3. Address the diverse needs of a four-generation workforce.
As Americans postpone retirement, a growing challenge will be managing the new cocktail of company culture — traditionalists, baby boomers, Generation X employees and Generation Y employees. Each generation has a distinct style of working and abides by different expectations of the workplace, leaving HR professionals to develop strategies to keep the workplace cohesive while meeting the varying needs of each generation.
This rings particularly true when it comes to benefits options. The Aflac study found that only 40 percent of employers tailor their benefits to employees based on needs
at different levels or life stages. Yet, there are clear nuances when it comes to the benefits needs of each generations. For example, life insurance ownership has
reached a 50-year low, with nearly a third of U.S. households having no form of this financial protection.
Company-paid life insurance is among the many benefits that organizations were forced to cut in past years. Employers can make this coverage available at no direct
cost to the company through voluntary life insurance plans.
4. Prepare for potential upticks in adult dependent coverage.
Under the health reform law, young adults up to their 26th birthday can obtain health coverage through their parents’ health insurance plans, marking an important departure from traditional guidelines under which young adults typically lost access to their parents’ coverage once they turned 19 or graduated from college.
HR executives need to forecast and plan for potential cost increases, depending on the number of employee opt-ins. The impact will likely be measureable. The department of Health and Human Services (HHS) estimates that 680,000 to 2.12 million young adults will gain coverage in 2011 as a result of this provision — mostly through new enrollment in employer-sponsored plans.
5. Leverage benefits to set the company apart and motivate employees.
Although we exist today in an employer’s market, it will undoubtedly shift back to an employee-driven environment where top talent will be in short supply and high demand. When this happens, a company’s ability to demonstrate value and goodwill to its workers through an unrivaled benefits package will mean the difference in retention rates.
The establishment of minimum benefits standards and the option to move from employer plans to exchange plans will likely lead to more homogenous major medical coverage. This will make supplemental insurance policies and ancillary benefits offerings a greater differentiator than ever before in the battle to attract a talented workforce.
Simply put, employees will be looking to their employers now more than ever for guidance during this dynamic time in history. Employers who educate and provide employees with benefits choices will be those who can recruit and retain a productive and healthy workforce.
Matthew Berger is the Connecticut state sales coordinator for Aflac. He is responsible for developing and implementing the state’s strategic marketing
Five Benefits Resolutions For Businesses In 2011
By Matthew G. Berger
01/03/11
As Hartford’s unemployment rate begins to show signs of recovery, business owners are shifting their focus to try to identify ways to retain talent, maintain a healthy workforce and provide additional benefits to employees. The aftermath of the recession and the introduction of landmark health reform have made it a critical time to revisit employee benefits.
As we approach the New Year, here are five resolutions that will guide benefits decisions:
1. Demystify health care reform.
Not surprisingly, health care reform tops the list of concerns for human resources executives in 2011. In an Aflac study of employers and employees, HR executives named “understanding the changing health care landscape” as the second-biggest benefits challenge, and 20 percent said appropriately communicating benefits is also a top challenge. Most of the law will be phased in over the next several years, and the regulations to implement those elements may not be published for some time. With so much confusion around these developments, creating a long-term plan to comply with the law and manage health care costs can be an overwhelming task.
HR professionals should seek out benefits options that soften the impact of cost-shifting and rising out-of-pocket expenses for employees. This includes exploring voluntary solutions that provide employers with choices to fit their employees’ needs at no direct cost
to the company.
2. Increase employee engagement and benefits education.
There is often a large disparity between HR executives and their employees when it comes to the effectiveness of benefits communications. According to the Aflac study, 40 percent of HR executives said they believed they were “extremely/very” effective in communications about benefits, whereas 67 percent of employees rated their HR departments “somewhat or not very/not at all” effective.
Given the growing complexities brought on by health reform, 2011 is an ideal time to close that communications gap. For one, employees will need education and advice about the potential impact the flexible spending account limitations and caps will have on their budgets.
3. Address the diverse needs of a four-generation workforce.
As Americans postpone retirement, a growing challenge will be managing the new cocktail of company culture — traditionalists, baby boomers, Generation X employees and Generation Y employees. Each generation has a distinct style of working and abides by different expectations of the workplace, leaving HR professionals to develop strategies to keep the workplace cohesive while meeting the varying needs of each generation.
This rings particularly true when it comes to benefits options. The Aflac study found that only 40 percent of employers tailor their benefits to employees based on needs
at different levels or life stages. Yet, there are clear nuances when it comes to the benefits needs of each generations. For example, life insurance ownership has
reached a 50-year low, with nearly a third of U.S. households having no form of this financial protection.
Company-paid life insurance is among the many benefits that organizations were forced to cut in past years. Employers can make this coverage available at no direct
cost to the company through voluntary life insurance plans.
4. Prepare for potential upticks in adult dependent coverage.
Under the health reform law, young adults up to their 26th birthday can obtain health coverage through their parents’ health insurance plans, marking an important departure from traditional guidelines under which young adults typically lost access to their parents’ coverage once they turned 19 or graduated from college.
HR executives need to forecast and plan for potential cost increases, depending on the number of employee opt-ins. The impact will likely be measureable. The department of Health and Human Services (HHS) estimates that 680,000 to 2.12 million young adults will gain coverage in 2011 as a result of this provision — mostly through new enrollment in employer-sponsored plans.
5. Leverage benefits to set the company apart and motivate employees.
Although we exist today in an employer’s market, it will undoubtedly shift back to an employee-driven environment where top talent will be in short supply and high demand. When this happens, a company’s ability to demonstrate value and goodwill to its workers through an unrivaled benefits package will mean the difference in retention rates.
The establishment of minimum benefits standards and the option to move from employer plans to exchange plans will likely lead to more homogenous major medical coverage. This will make supplemental insurance policies and ancillary benefits offerings a greater differentiator than ever before in the battle to attract a talented workforce.
Simply put, employees will be looking to their employers now more than ever for guidance during this dynamic time in history. Employers who educate and provide employees with benefits choices will be those who can recruit and retain a productive and healthy workforce.
Matthew Berger is the Connecticut state sales coordinator for Aflac. He is responsible for developing and implementing the state’s strategic marketing
Tuesday, February 8, 2011
Want to be more liked? Offer voluntary benefits, survey concludes
By Kathleen Koster
February 1, 2011
According to WellPoint Inc. research, 83% of American employees think more highly of employers that offer voluntary insurance benefits than those that don't.
This extends to job seekers as well, almost all of whom (nearly 90%) consider it important that companies offer a full range of health benefits, including voluntary, when accepting a new position. A full 56% consider it "very important."
Voluntary benefits can improve employees' overall perception of benefits as well. While 82% of employees whose companies offer voluntary benefits are content with their packages, that satisfaction declined by 30% for those companies that fail to offer such benefits.
"The survey findings suggest that employees definitely see the value in voluntary benefits," says Jeff Spahr, staff vice president of vision and voluntary services for WellPoint.
Most often, these benefits are used to fill a gap in coverage. "Voluntary benefits set employers apart by allowing them to offer a more expansive benefits package at any or little direct cost to them," says Elana D'Arciprete, southeast vice president at Colonial Life.
Doug Mantz, vice president of sales, The Farmington Company, agrees, finding these to complement certain types of medical coverage. "For those employers who are opting for HDHPs, offering something to round out coverage to meet specific concerns certainly makes an HDHP plan more palatable," he says.
Two-thirds of employees report that their company currently offers voluntary insurance with specific demographics more likely to have access to these benefits. This includes 71% of men, 74% of those working in the Northeast region of the United States, 81% of workers in large companies, and 74% of those with an average household income of $50,000 or more.
Even though a significant amount of employers offer these benefits, only about half of workers say they are knowledgeable about the voluntary insurance products offered at their companies.
"Just offering the voluntary benefits isn't enough ... If no one is participating, it has little or no value," Mantz says.
D'Arciprete explains that 60% of employees who believe their benefits were more effectively communicated would stay with their current employer even if offered higher pay somewhere else.
Retention is only part of the reason to offer access to these benefits; 67% of employees claim voluntary benefits would increase productivity at work as well.
The main reasons employees enroll in voluntary benefits include cost savings (54%), greater protection for their families (50%) and peace of mind (44%).
The WellPoint survey was conducted online among a national sample of 2,500 Americans ages 18 and up in August 2010.
February 1, 2011
According to WellPoint Inc. research, 83% of American employees think more highly of employers that offer voluntary insurance benefits than those that don't.
This extends to job seekers as well, almost all of whom (nearly 90%) consider it important that companies offer a full range of health benefits, including voluntary, when accepting a new position. A full 56% consider it "very important."
Voluntary benefits can improve employees' overall perception of benefits as well. While 82% of employees whose companies offer voluntary benefits are content with their packages, that satisfaction declined by 30% for those companies that fail to offer such benefits.
"The survey findings suggest that employees definitely see the value in voluntary benefits," says Jeff Spahr, staff vice president of vision and voluntary services for WellPoint.
Most often, these benefits are used to fill a gap in coverage. "Voluntary benefits set employers apart by allowing them to offer a more expansive benefits package at any or little direct cost to them," says Elana D'Arciprete, southeast vice president at Colonial Life.
Doug Mantz, vice president of sales, The Farmington Company, agrees, finding these to complement certain types of medical coverage. "For those employers who are opting for HDHPs, offering something to round out coverage to meet specific concerns certainly makes an HDHP plan more palatable," he says.
Two-thirds of employees report that their company currently offers voluntary insurance with specific demographics more likely to have access to these benefits. This includes 71% of men, 74% of those working in the Northeast region of the United States, 81% of workers in large companies, and 74% of those with an average household income of $50,000 or more.
Even though a significant amount of employers offer these benefits, only about half of workers say they are knowledgeable about the voluntary insurance products offered at their companies.
"Just offering the voluntary benefits isn't enough ... If no one is participating, it has little or no value," Mantz says.
D'Arciprete explains that 60% of employees who believe their benefits were more effectively communicated would stay with their current employer even if offered higher pay somewhere else.
Retention is only part of the reason to offer access to these benefits; 67% of employees claim voluntary benefits would increase productivity at work as well.
The main reasons employees enroll in voluntary benefits include cost savings (54%), greater protection for their families (50%) and peace of mind (44%).
The WellPoint survey was conducted online among a national sample of 2,500 Americans ages 18 and up in August 2010.
Wednesday, February 2, 2011
Is the Tooth Fairy Getting Laid Off? (from Employee Benefit News)
benefitnews_news
http://ebn.benefitnews.com
As voluntary dental gains ground, consumers may find themselves spending more to keep teeth than pay for lost ones.
By Lydell C. Bridgeford
February 1, 2011
The shift to health consumerism hasn't escaped dental benefits. And if health care costs continue to squeeze benefit budgets, then more employers might start turning to voluntary dental plans.
According to 2009 research by LIMRA, dental is the third most requested benefit after major medical insurance and retirement benefits.
There are a variety of options in the marketplace for voluntary dental insurance. Plan designs under voluntary dental insurance come in all shapes and sizes because dental benefits are flexible. Moreover, voluntary coverage can reflect the same coverage offered under an employer-paid dental insurance plan. "
"Since the market is not standardized for voluntary [dental] coverage, an employer should be able to find voluntary coverage that fits their needs," explains Evelyn F. Ireland, executive director of the National Association of Dental Plans. "However, there are basic requirements for voluntary coverage that vary by employer size."
For example, "participation of both a minimum percentage of employees and a minimum number of employees is generally required, although what that minimum is varies from carrier to carrier," she says. "Waiting periods may be required for some procedures covered under the dental policy - particularly for groups that have never had dental benefit."
When comparing funding of dental PPO benefits from 2009 to 2010, NADP found that the funding of benefits on a voluntary basis increased by 3%, from 14% to 17%. By contrast, 100% employer-paid funding dropped by 9%. The research also notes that the largest category where employees and employers share the costs increased by 7%.
Further, NADP's "2008 Purchaser Behavior Survey" suggests that employers were considering shifting funding for dental benefits - either changing their level of contribution (28%) or moving to voluntary coverage (15%).
Analysts, however, were unable to determine if the change in voluntary coverage resulted from existing groups changing their funding or by groups that are adding coverage starting at the voluntary end of the spectrum of funding, Ireland notes.
Turning a negative into a positive
Some see voluntary dental insurance as a great way to turn a negative into a positive, especially if employer contributions to dental benefits have been dwindling, leaving employees to pick up a fair amount of the tab. Rather than eliminating a traditional dental plan, some employers may want to convert the program to a voluntary feature.
"Many underwriting rules for employer-paid programs prevent the employer from contributing less than 50% of the coverage without adding multiple requirements and rate adjustments. When the employer says, 'I can only afford to contribute 40%,' that is when the underwriter will typically encourage the purchase of a voluntary dental product," says Dean C. Hatfield, senior vice president and national health practice leader at Sibson Consulting.
In the past, the main vehicle for voluntary dental would be a DHMO, which offered limited choices. However, "the evolution of a voluntary dental product has now evolved into something that is more PPO-based," says John Doyle, president of the dental division at Dearborn National, a group insurance carrier.
With minor plan adjustments, a voluntary dental benefit can offer employees the flexibility in selecting their preferred dentist and provides a price point that is of value.
According to Doyle, roughly 50% of the employer-market space doesn't offer dental insurance, which makes voluntary dental one of the fastest growing segments in the dental insurance market when it comes to employers without dental insurance.
"While cleanings may be affordable, it's the diagnostic tests and what is discovered during the cleaning that can be expensive. The cost of X-rays and needed treatments (e.g., fillings and crowns) can add up quickly and make dental insurance a very useful benefit for employees," says Ron Agypt, senior vice president of Aflac group broker and market development in the United States.
Perfect timing
"Switching to a voluntary dental plan is one way companies can manage rising health care costs, while continuing to offer employees options to protect and insure their dental health," Agypt adds. "As employers continue to shift benefits costs to their employees, voluntary dental insurance plans are expected to grow in popularity."
A recent Aflac online survey of 1,000 working Americans suggests some workers are poised for voluntary dental insurance.
Conducted in June 2010, the survey looks at which dental plans are most commonly offered by employers, how the plan pays out its benefits and how important dental benefits are when evaluating employer benefits packages. To participate, respondents had to be 25-54 years of age with an income of $30,000 or more.
One-third of respondents are not offered a dental plan at work, with 70% of them being 35 to 54 - prime years for having to cover dependents.
Also, while 77% prefer no coverage restrictions, only 12% have all their dental expenses covered in a group plan, and nearly half are responsible for an annual deductible or copayment.
Nearly two-thirds of respondents worry about affording procedures, and more than half of them have rationed care because of cost concerns.
More options, portability important
Still, 60% say it is important to have a dental plan that is portable if they leave an employer for any reason.
Fifty-eight percent of workers would prefer their employers offer more options for dental coverage. Only 12%, however, have dental plans through their employers that cover all dental expenses.
Based on these findings, employers considering voluntary dental would do well to determine the price point for the benefit, so that it's a successful offering. This means factoring in employees' take-home salary and their contributions to health insurance and the 401(k) plan.
Also, under a voluntary plan, employers will want to provide sufficient options and do as much as they can to ensure employees are able to continue visiting their own dentists.
Dental benefits enrollment drops
Dental benefits enrollment declined by 5.7% in 2009, according to the National Association of Dental Plans. It's the first drop in dental enrollment since 1994, the year NADP began tracking enrollment.
The "2010 Dental Benefits Enrollment Report," issued by NADP and Delta Dental Plans Association, revealed that 166 million Americans (54%) were covered by some form of dental benefit through group or individual plans in 2009.
The 5.7% dip reflects about 10 million fewer Americans with dental coverage, compared to 2008 figures. Still, enrollment from 2006 through 2008 increased in line with U.S. population growth, remaining steady at 57%, according to the research, which is based on data from 88 employers.
"While total enrollment significantly declined in 2009, the number of employer groups offering dental benefits remained consistent, compared to the previous year, based on data submitted for the report and other industry studies by LIMRA and NADP," says Evelyn F. Ireland, executive director of NADP.
The recession and a stalled economy contributed, in part, to decreased enrollment. "The reduction in subscribers in some employer groups in 2009 most likely reflects family financial constraints and layoffs, as Delta Dental's data indicates that dental benefits remain an important part of employer benefits programs, despite a challenging economy," says Kim Volk, president and CEO of DDPA.
Top dental trends
69%
The trend toward dental PPO products continues among commercial products, with 69% of all commercial dental benefits reported as DPPO. Indemnity and dental HMO products continue to decline in market share, while discount products maintained market share.
99%
Dental benefit premiums and fees are paid at least in part by most enrollees. While discount plans report 99% of all enrollees paying at least part of the fee, insured products range from 85% of DPPO enrollees paying a portion of premium to 61% of dental indemnity enrollees paying for a portion of premium.
1%
Only 1% of the population with dental insurance products, i.e. DHMO, DPPO or dental indemnity, has its benefits through individual policies. Roughly 9% of dental discount products are sold as individual policies.Source: National Association of Dental Plans and Delta Dental
http://ebn.benefitnews.com
As voluntary dental gains ground, consumers may find themselves spending more to keep teeth than pay for lost ones.
By Lydell C. Bridgeford
February 1, 2011
The shift to health consumerism hasn't escaped dental benefits. And if health care costs continue to squeeze benefit budgets, then more employers might start turning to voluntary dental plans.
According to 2009 research by LIMRA, dental is the third most requested benefit after major medical insurance and retirement benefits.
There are a variety of options in the marketplace for voluntary dental insurance. Plan designs under voluntary dental insurance come in all shapes and sizes because dental benefits are flexible. Moreover, voluntary coverage can reflect the same coverage offered under an employer-paid dental insurance plan. "
"Since the market is not standardized for voluntary [dental] coverage, an employer should be able to find voluntary coverage that fits their needs," explains Evelyn F. Ireland, executive director of the National Association of Dental Plans. "However, there are basic requirements for voluntary coverage that vary by employer size."
For example, "participation of both a minimum percentage of employees and a minimum number of employees is generally required, although what that minimum is varies from carrier to carrier," she says. "Waiting periods may be required for some procedures covered under the dental policy - particularly for groups that have never had dental benefit."
When comparing funding of dental PPO benefits from 2009 to 2010, NADP found that the funding of benefits on a voluntary basis increased by 3%, from 14% to 17%. By contrast, 100% employer-paid funding dropped by 9%. The research also notes that the largest category where employees and employers share the costs increased by 7%.
Further, NADP's "2008 Purchaser Behavior Survey" suggests that employers were considering shifting funding for dental benefits - either changing their level of contribution (28%) or moving to voluntary coverage (15%).
Analysts, however, were unable to determine if the change in voluntary coverage resulted from existing groups changing their funding or by groups that are adding coverage starting at the voluntary end of the spectrum of funding, Ireland notes.
Turning a negative into a positive
Some see voluntary dental insurance as a great way to turn a negative into a positive, especially if employer contributions to dental benefits have been dwindling, leaving employees to pick up a fair amount of the tab. Rather than eliminating a traditional dental plan, some employers may want to convert the program to a voluntary feature.
"Many underwriting rules for employer-paid programs prevent the employer from contributing less than 50% of the coverage without adding multiple requirements and rate adjustments. When the employer says, 'I can only afford to contribute 40%,' that is when the underwriter will typically encourage the purchase of a voluntary dental product," says Dean C. Hatfield, senior vice president and national health practice leader at Sibson Consulting.
In the past, the main vehicle for voluntary dental would be a DHMO, which offered limited choices. However, "the evolution of a voluntary dental product has now evolved into something that is more PPO-based," says John Doyle, president of the dental division at Dearborn National, a group insurance carrier.
With minor plan adjustments, a voluntary dental benefit can offer employees the flexibility in selecting their preferred dentist and provides a price point that is of value.
According to Doyle, roughly 50% of the employer-market space doesn't offer dental insurance, which makes voluntary dental one of the fastest growing segments in the dental insurance market when it comes to employers without dental insurance.
"While cleanings may be affordable, it's the diagnostic tests and what is discovered during the cleaning that can be expensive. The cost of X-rays and needed treatments (e.g., fillings and crowns) can add up quickly and make dental insurance a very useful benefit for employees," says Ron Agypt, senior vice president of Aflac group broker and market development in the United States.
Perfect timing
"Switching to a voluntary dental plan is one way companies can manage rising health care costs, while continuing to offer employees options to protect and insure their dental health," Agypt adds. "As employers continue to shift benefits costs to their employees, voluntary dental insurance plans are expected to grow in popularity."
A recent Aflac online survey of 1,000 working Americans suggests some workers are poised for voluntary dental insurance.
Conducted in June 2010, the survey looks at which dental plans are most commonly offered by employers, how the plan pays out its benefits and how important dental benefits are when evaluating employer benefits packages. To participate, respondents had to be 25-54 years of age with an income of $30,000 or more.
One-third of respondents are not offered a dental plan at work, with 70% of them being 35 to 54 - prime years for having to cover dependents.
Also, while 77% prefer no coverage restrictions, only 12% have all their dental expenses covered in a group plan, and nearly half are responsible for an annual deductible or copayment.
Nearly two-thirds of respondents worry about affording procedures, and more than half of them have rationed care because of cost concerns.
More options, portability important
Still, 60% say it is important to have a dental plan that is portable if they leave an employer for any reason.
Fifty-eight percent of workers would prefer their employers offer more options for dental coverage. Only 12%, however, have dental plans through their employers that cover all dental expenses.
Based on these findings, employers considering voluntary dental would do well to determine the price point for the benefit, so that it's a successful offering. This means factoring in employees' take-home salary and their contributions to health insurance and the 401(k) plan.
Also, under a voluntary plan, employers will want to provide sufficient options and do as much as they can to ensure employees are able to continue visiting their own dentists.
Dental benefits enrollment drops
Dental benefits enrollment declined by 5.7% in 2009, according to the National Association of Dental Plans. It's the first drop in dental enrollment since 1994, the year NADP began tracking enrollment.
The "2010 Dental Benefits Enrollment Report," issued by NADP and Delta Dental Plans Association, revealed that 166 million Americans (54%) were covered by some form of dental benefit through group or individual plans in 2009.
The 5.7% dip reflects about 10 million fewer Americans with dental coverage, compared to 2008 figures. Still, enrollment from 2006 through 2008 increased in line with U.S. population growth, remaining steady at 57%, according to the research, which is based on data from 88 employers.
"While total enrollment significantly declined in 2009, the number of employer groups offering dental benefits remained consistent, compared to the previous year, based on data submitted for the report and other industry studies by LIMRA and NADP," says Evelyn F. Ireland, executive director of NADP.
The recession and a stalled economy contributed, in part, to decreased enrollment. "The reduction in subscribers in some employer groups in 2009 most likely reflects family financial constraints and layoffs, as Delta Dental's data indicates that dental benefits remain an important part of employer benefits programs, despite a challenging economy," says Kim Volk, president and CEO of DDPA.
Top dental trends
69%
The trend toward dental PPO products continues among commercial products, with 69% of all commercial dental benefits reported as DPPO. Indemnity and dental HMO products continue to decline in market share, while discount products maintained market share.
99%
Dental benefit premiums and fees are paid at least in part by most enrollees. While discount plans report 99% of all enrollees paying at least part of the fee, insured products range from 85% of DPPO enrollees paying a portion of premium to 61% of dental indemnity enrollees paying for a portion of premium.
1%
Only 1% of the population with dental insurance products, i.e. DHMO, DPPO or dental indemnity, has its benefits through individual policies. Roughly 9% of dental discount products are sold as individual policies.Source: National Association of Dental Plans and Delta Dental
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