Overheard @: I regret enrolling in an HSA

Detailing findings from Employee Benefit Research Institute/Commonwealth Fund research, I confront my misgivings about enrolling in a high-deductible health plan with an HSA. Download my podcast here.

News You Can Use: What sets your Gen X and Gen Y employees a-Twitter?

In collaboration with Editor in Chief Kelley Butler's article in the December issue "Leveraging BlackBerries and buzzwords," EBN conducted its own (albeit unscientific) research to figure out how your Gen X and Gen Y employees best communicate.

Following the model set forth in the original study, published by the Employee Benefits Research Institute, we asked a number of employees what terms they most did (and didn't) identify with.

Meaghan Lynch, second year medical student at Boston University

Disciplined: Very
Carefree: Not so much
Family-Oriented: Very
Hard-working: Very
Expensive Taste: Somewhat
Technologically Savvy: Not at all.
Charitable: Very
Optimistic: Very

Other words: Happy, honest, social, motivated, practical

---

Gina Anderson, researcher at Corporate Executive Board

Disciplined: Yes
Carefree: Somewhat
Family-Oriented: Not very
Hard-working: Yes
Expensive Taste: Somewhat
Technologically Savvy: Yes
Charitable: Somewhat
Optimistic: Extremely

Other words: energetic, intelligent, intellectual, organized, and conscientious

---

Alison Noelker, field sales representative at Eli Lilly & Co.

Disciplined: Very
Carefree: Not at all
Family-Oriented: Somewhat
Hard-working: Very
Expensive Taste: Somewhat
Technologically Savvy: Very
Charitable: Somewhat
Optimistic: Very

Other words: driven, energetic, determined, go-getter, empathetic, loyal

---

Molly Bernhart, associate editor at Fierce Markets

Disciplined: Somewhat
Carefree: Very
Family-Oriented: Very
Hard-working: Very
Expensive Taste: Not at all
Technologically Savvy: Somewhat
Charitable: Somewhat
Optimistic: Very

Other words: poised/tactful, creative, principled

---

Kristina Libby, U.S. Program Coordinator, Global Entrepreneurship Week

Disciplined: very
Carefree: somewehat
Family-Oriented: not yet
Hard-working: yes
Expensive Taste: relative to my income range
Technologically Savvy: Exceptionally
Charitable: yes
Optimistic: sickeningly so

Other terms: occasionally ambivalent, determined, open minded, fast paced, detail oriented, creative, knowledge hungry, bored with static nine-to-five hours, overachiever

---

In keeping with the idea that the Gen X and Gen Y audience best respond to messages distributed via Web 2.0 material, EBN has also begun distributing its own messages through social media channels like Twitter, Facebook, and a corporate blog, the Employee Benefit News Daily Diversion. If you're looking to get up to speed with your own employees, we'd suggest developing a familiarity with our own materials through these free and easy-to-use channels.

Overheard At: Spread low-cost cheer

Instead of focusing on the economic crisis, fearless EBN leader Kelley Butler takes her letter from the editor in a positive direction. In this month's podcast, Butler talks about low-cost ways to improve employee morale and spread cheer this holiday season.

Scone: Congratulations, President-elect Obama

Illinois Sen. Barack Obama (D) was elected the nation's 44th president by a decisive margin yesterday, winning 349 electoral votes to Sen. John McCain's (R-Ariz.) 162.

The president-elect addressed the nation last night, acknowledging the challenges our nation faces at home and abroad, saying, "the road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America, I have never been more hopeful than I am tonight that we will get there. I promise you: We as a people will get there."

I congratulate President-elect Obama and hope all Americans rally to support him in working to solve our nation's diverse problems. To EBN readers, whether Obama won your vote or not, I hope that you made your desire for America's future known by participating in the process and that you will make your voice heard to our new president on the issues that matter most to you.

The level of engagement this year from people who never before have participated in the voting process and the change it can yield should inspire you. I encourage you to read up on Obama's positions on health care and retirement, and respond with your unique views.

Speaking of your views, I sincerely thank everyone who participated in our "rock the vote" quickpoll about the benefits-related issue that was most important to you in the election. Not surprisingly, health care reform topped the list, with 37% of the vote. Reducing benefit costs and reducing administrative burdens on HR/benefits staff tied with 30%.

For my part, I look forward to giving the issues that matter most to you and your employees a platform in EBN and bringing you benefits news and trends amid our new political reality.

News You Can Use: GM scraps 401(k) match, others likely to follow

Although a recent staff discussion at EBN headquarters questioned whether an automaker (with industry profits down more than 30% by some estimates) halting 401(k) contributions was a "big deal" -- since it comes as no surprise to our jaded ears -- here you have it:

General Motors last week announced it will freeze its 401(k) match in the company's ongoing effort to cut costs, and reports this week from Workforce Management show other large firms are likely to go the "monkey see, monkey do" route.

“We are in a very nasty situation that isn’t going to get better for some time and a lot of employers are going to be anxiously looking at how to reduce costs," Ted Benna, father of the 401(k) and knows of what he speaks, told the pub.

News You Can Use: Voters speak out on work-life

Sens. McCain and Obama, take note: A majority of workers want you to make work-life flexibility a priority during your presidency.

In a survey from Life Meets Work, 70% of employees say the next U.S. president should make flexible work options his greatest work-life priority, followed by equal pay and affordable child care.

In addition:
* 63% of employers and 78% of workers support the Working Families Flexibility Act, which would give every worker the right to request job flexibility and would require employers to respond to the request.
* 58% of workers support making caregivers a protected class from discrimination.

Although voters may be making their preferences known on a national level, work-life expert Ariane Hegewisch, study director at the Institute for Women’s Policy Research, says “There might be a way of trying to use states as pilots” for some paid leave and workplace flexibility initiatives.

See the upcoming December EBN for more of her comments and other trends and case studies in workplace flexibility. Meanwhile, download a podcast on how several companies are succeeding with work-life programs.

Scone: Benefit managers, Rock the Vote!

Okay, so maybe you’re outside the target demographic for MTV’s get out the vote push. But with less than a week to go until election day, it’s time to make your choice and show the power of your industry as a voting bloc.

For those of you still undecided, here’s a reminder of where Sens. McCain and Obama stand on benefits-related issues from EBN coverage, independent analysis and the candidates themselves.
- Parties diverge on health care reform
- Health reform standing front and center: Democratic presidential candidates agree
- McCain’s health platform taxes benefits as income
- Presidential candidates showcase their small business views
- Best of both worlds key to health care reform

Then take our Daily Diversion quickpoll (right) on the issue that is most important to you in this election. I’m looking forward to reading your responses.

News You Can Use: Maternity program yields healthy savings and healthy babies

You can beat a benefit that saves money and brings healthy bouncing babies into the world! Read more in the October EBN about how Nationwide Better Health’s maternity management program did both.

Tip of the Day

“I just saved a bunch of money on my company’s health expenditures by switching to a radiology benefit manager!” Okay, doesn’t roll off like “switching to Geico,” but you may save significantly more. A current EBN report tells you how.

News You Can Use: Uninsured population drops, how to continue the trend

Here’s a downward spiral we can all agree we’d like to continue: Census data reveal that the number of uninsured individuals in the United States fell by 1.5 million between 2006 and 2007, driven by growth in Medicare, Medicaid, military programs and Massachusetts health care reform. This report from the Kaiser Family Foundation points to lessons we can take from the decline and how to make it last.

Tip of the Day

Like your mom always said, “If Jimmy jumped off a bridge, would you?” The lesson being, consider carefully whose lead you follow. Amid economic peril, that lesson is even more important regarding 401(k) advice. Forbes offers tips on separating the wheat from chaff on retirement advice.

News You Can Use: The difference two years makes

New survey results from Sun Life Financial show that 46% of employees surveyed are “very confident” they will have enough money to take care of their basic living expenses at 67. however, a much smaller number (28%) are just as confident they’ll be able to handle health care expenses at that age. See current EBN coverage about how to help employees improve their overall retirement readiness, including encouraging them to work a couple years longer.

Scone: HR/benefit managers must stand up against benefit cuts in face of economic crisis

Although much of the early response to the economic crisis -- EBN's included -- dealth with the blow to Americans' bank accounts and retirement assets, reports now are surfacing on how the financial slide has affected health care decisions for individuals and families.

And like the rest of the news lately, the results are not good.

According to the Washington Post, the economy’s plunge has forced many individuals to cut back on health care – “split pills, forgo screening tests, delay elective procedures and turn to home remedies as cheaper alternatives.” The paper also reports that hospital bills are languishing and pharmacists see an increased demand for generic medications.

A study this summer from the Rockefeller Foundation shows that even before the floor fell out of the economy, 25% of respondents skipped a doctor’s visit and 10% skipped a visit for their child because of cost.

In a sneak peek at the December EBN, a report from the Segal Co. finds utilization trend rate for hospital services is projected to fall from 3.2% this year to 2.5% next year, while the utilization trend rate for physician services is predicted to drop from 5.5% to 4.3%. The consulting firm points to cost constraints among consumers as one reason for the decline.

Finally, state insurance programs are feeling the squeeze as well, as news came from Hawaii last week that the state will end its universal children’s health insurance program, just seven months after being the first state to implement such an initiative.

Such news is evidence that when it comes to Americans’ health care today and retirement security tomorrow, benefits managers are employees’ first line of defense. The programs you offer, eliminate or enhance are more important than ever. I know your companies are feeling crunched as well, and benefits are top of mind for execs looking for places to aims the fiscal hatchet or scalpel.

But as Segal reports, “the slowdown in utilization may be cause for concern [because] it could also mean that some people are deferring essential medical care because of higher copays and the personal financial effects of the economic downturn.” But “delaying treatment will eventually increase overall health costs as people are forced to seek more aggressive and costly treatment after the condition worsens to a crisis point.”

It’s a classic choice of whether to pay now (in robust benefits, preventive care and wellness programs) or pay later (in higher claims, lost productivity and perhaps even turnover). I believe it’s in your best interest to pay now.

Tip of the Day

Read up on the new Treasury regulations on executive compensation. It may make for an awkward conversation with your CEO and CFO, but you’ll want to stay on the right side of the law on this one – particularly the limits on golden parachutes (you don’t want to look like another Lehman, do you?). Under the Emergency Economic Stabilization Act (also known as the $700 billion bailout plan), Treasury outlines exec comp guidelines for the Capital Purchase Program and the other two programs under the Troubled Assets Relief Program.

News You Can Use: DOL says returns trump responsibility in pensions

All you DB plan sponsors out there investing in socially responsible funds to make money and a difference: Quit it! According to EBSA, the benefits arm of the Dept. of Labor, generating big returns are the only consideration plan sponsors may consider – not “political, corporate or other purposes.”

Scone: HR/Benefits pros should beware getting too comfortable about succession planning

Even before the long-simmering financial crisis exploded two weeks ago, most research on the subject showed that baby boomers (all 78 million of 'em) largely were delaying retirement. They were doing so for multiple reasons: feeling they still had something to contribute to the workforce, wanting to stay active and of course, financial necessity.

As boomers have seen pensions and retiree health benefits dry up and their 401(k) savings take a beating in the stock market, even more employees in this demographic may put off retiring. In addition to creating a bottleneck in corporate advancement for hungry Gen X and Gen Y workers who are eager to move ahead in their organizations, the retirement delay seems to be lulling employers into a sense of security regarding succession planning.

New survey numbers from Novations Group reveal 36% of HR and training execs don’t expect an unusually large talent loss loss due to boomer retirements. Further, only about one-quarter (26%) are actively taking steps to plan for the talent loss, even though 18% say they expect the loss of talent and institutional knowledge to be "serious." One in five are clueless about how boomer retirements will affect their companies at all.

Yes, employers have bought themselves ($700 billion worth?) time in dealing with boomer retirement as the economy continues to slow and older workers need to maintain employment to keep health coverage and recoup lost 401(k) assets. However, succession planning is not an issue HR/benefit pros can ignore for long.

Because worst case scenario, when the economy recovers, boomers may begin to head for the exits, taking their knowledge with them. And those eager Gen Yers -- surely not known for exercising patience -- may be long gone.

As such, employers need to get busy on cementing their succession plans. For tips, read coverage in EBN, as well as its sister publication SMB Human Resources, which targets issues specific to small and mid-sized businesses.

Overheard At: Call for Commuter Benefits

Being stuck on a train gives a person lots of time to think. Recently, it got EBN Editor Kelley Butler thinking about the importance of commuter benefits. Hear her impassioned plea.

Overheard At: What's What in the October Issue

In this month for sweets and scares, EBN Editor Kelley Butler brings you the best of the October issue -- including the sweet story of a maternity program that yielded not only a 2:1 ROI but a set of healthy triplets, and they scary tale of employers skimming $58 billion in unpaid payroll taxes. These and much more in EBN October.

Tip of the Day

HR nonprofit firm Capital Associated Industries recently picked the brain of Brandon Dempsey, vice-president of Suite Commute, LLC, a company that aids employers in implementing telework programs. Dempsey, who is a speaker at an upcoming CAI training event on telework, laid out five mistakes employers often make with telework programs:
1. Lacking concrete policies.
2. Overinvesting in technology.
3. Failing to train managers.
4. Lacking an implementation strategy.
5. Overlooking a pilot program.

For more on do's and don'ts of telework, read these four recent EBN/Daily Diversion articles. (1,2,3,4)

News You Can Use: One HSA myth debunked, survey finds

Although it’s long been said HSAs only appeal to the healthy and wealthy, a recent survey from UnitedHealthcare finds that HSA enrollment rates are highest (74%) among employees of small businesses (one to 99 employees) and lower-income individuals (64%).

“This latest research affirms our belief that Health Savings Accounts have broad appeal for many health care consumers, regardless of income, age or employer environment,” says Meredith Baratz, vice president of market solutions at UnitedHealthcare.

Although the survey results create doubt about one HSA truism, they appear to have confirmed another: that employer funding is the key to spurring HSA enrollment. About two-thirds of employers provide funding to HSAs, UnitedHealthcare finds. Regardless of funding level, when an employer contributed to the HSA, 86% of consumers opened an account, compared with only 27% when the employer did not.