Scone: First, do no harm

A recent study published in the December issue of the journal Pediatrics finds that about half of some 800 pediatricians and family docs surveyed delayed purchasing childhood vaccines because of high vaccine costs compared to low reimbursement rates, and another poll finds that 11% of doctors (just 5% of pediatricians) have seriously considered not providing vaccines at all.

The news is meaningful to employers because as health care costs continue to rise and Americans forego health care for themselves and children for financial reasons, a smaller number of doctors providing vaccines could lead to larger outbreaks of certain diseases -- equaling higher health plan costs and employee absences to care for sick children or themselves.

As employers put a larger focus on primary and preventive care in their wellness efforts, cooperation from physicians, including pediatricians who care for employees' children, is essential.

Here's hoping this is a blip for pediatricians, brought on by the economic pressures we're all facing. Anything more than that, and employers, employees and their families could be physically and financially harmed.

Scone: Protecting the blind side

I’m a big football fan, and one of the things I hate the most is seeing a quarterback get hit on the blind side (the opposite of his throwing arm) because there’s nothing worse than a hit you don’t see coming.

Along those lines, I received an e-mail last week from a recently laid off employee. Lamenting the loss of her job, she asked if I could help her find information on how to recoup the nearly $400 she’d deferred into a commuter benefits account but had to forfeit upon her termination.

I double checked with a benefits attorney, then gave her the tough news that yes, the funds forfeited to employer, as she was no longer with the company. I felt bad for her, having been completely blindsided by the layoff and then it seemed getting insult piled onto injury by losing funds she probably could sorely use right now.

It got me and a few EBN colleagues thinking. Obviously, employers must comply with WARN (Workers Adjustment Retraining and Notification Act), which requires employers with 100 or more workers to provide employees, bargaining representatives and local government officials with 60 days advanced written notice of a mass layoff or a plant closing.

But more specifically, can/should employers communicate far in advance to employees about the benefits they lose (commuter benefits, FSA funds) and the ones they can take with them (retirement savings, HSA funds) if they are laid off? How far in advance? And does such notice make a company appear unstable or give away that layoffs are being considered?

Is giving them the information and tools to protect their money more valuable than causing some uneasiness about whether they might be the one to get a pink slip? An article in an upcoming issue of EBN will address these questions and others, but I’d like to hear your thoughts.

Meanwhile, communication expert Hugh Braithwaite, president of Braithwaite Communications, offers the following tips in communicating effectively during a layoff:

* Be complete. If there are holes in the facts of your story, employees will fill-in-the blanks with what they believe the facts should be. That’s how rumors get started.
* Be consistent. If you tell a different story every time you tell it, information will become muddled and there will be mass confusion. That’s how rumors spread.
* Inform affected employees first. This should be common sense, but employees being laid off should hear the news first and in person if possible. Respect and compassion are essential. Prepare an “exit kit” for each laid-off worker that contains an official letter, hand-outs with frequently asked questions, confidential agreements, references, contact sheet, and severance and benefit information. Be as thorough and complete as possible –remember, the more comprehensive you are, the less you are leaving to the imagination.
* Inform retained employees. Review the situation, be prepared to answer questions, and provide resources for follow-up questions and concerns. Depending on the size of the layoff, a series of regular employee communication sessions may be necessary instill confidence and maintain a sense of community.

Scone: In search of HSA advice, assurance

Two weeks ago – after much discussion with my husband, fine-tooth-combing our family budget, using three comparison tools and a medical cost estimator, and reading every page of communication my employer sent on the subject – I enrolled my family in a high-deductible health plan with an HSA for 2009. I still wonder if I did the right thing.

Ever since, I’ve found myself preparing for a sort of health care Armageddon – scheduling myself, husband and children for every doctor’s and dentist appointment we need, weaning my infant daughter off a long-term medication, and informing the specialist she sees (and that we adore) that we likely won’t be back to see her because I’m not sure we’ll be able to afford the office visit come January.

Although it took much consideration, I feel railroaded into my decision. The HDHP I was offered carried about the same premium as the current PPO that covers my family now –already near the top of what our family can afford. The more traditional health coverage options were two and three times what we currently pay, and there’s no way we could sustain that (while continuing to save for retirement and meeting our monthly expenses).

So, I did the only thing I could do: checked the HDHP option, funded my HSA up to the deductible and hoped for the best.

Even though I can’t change my decision now, I still question it. I’ve discovered that writing about this topic and living it are two different things – and I consider myself much more informed than my colleagues at other non-benefits-related publications.

So I turn to you EBN readers, the exceptional pros that you are, for advice and assurance (and promise not to hold you accountable). Any recommendations you have would be great; just tell me what you would if I worked at your company.

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.

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.

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.

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.

Scone: What about my money?

No matter your opinion on who’s to blame for the current financial crisis, the pending bailout legislation and which of the two presidential candidates can best lead us out of this economic turmoil, there is one issue I believe we all can agree on: We need to protect our retirement savings.

Your employees may have started asking you about the safety of their 401(k) assets, and if they haven’t, they likely soon will. I know that was my first consideration after the rollercoaster that has been the last week. No matter who got what in the bailout deal for Wall St., I wanted to know: What about my money?

I don’t even have a great deal of retirement savings accumulated in my 401(k), and I’m more than 30 years away from retirement. But knowing how important those assets will be to my financial future, my interest in the current stock market crisis was protecting my nest egg.

Your employees are no different, and they need to hear from you – right now – on how to take the appropriate steps to secure their retirement in terms of the new financial reality we’re faced with.

Now, I know the last thing employers want to do is tell someone how to manage their money -- for legal reasons, of course, as well as the fact that benefit managers may have the exact same questions as the people looking to them for guidance.

So, I encourage you to seek the counsel of your company’s 401(k) provider. Tell them it is paramount that they distribute new communications that address plan participants’ concerns, and make financial advisors available – ideally in person – to listen and answer questions.

If you can’t do that, at the very least view and distribute to employees this article and video from ABC News, anchored by the network’s personal finance expert Mellody Hobson. In addition to being contagiously upbeat and calming, Hobson lays out in plain English five key tips 401(k) participants “must know” about their accounts and how to manage them through this crisis. She also wrote a related piece on how people should handle their investments in general. They are both outstanding.

This is a delicate moment in our nation’s financial history. We all know that nationally, about 80% of eligible workers contribute to a 401(k), and those that do generally don’t contribute enough. Less than a majority of small businesses, although they employ a majority of the nation’s workforce, offer a retirement plan at all. And now, workers that do contribute are facing significant losses. Although these are difficult, and somewhat scary, economic times we find ourselves in, we cannot slide further behind in terms of retirement readiness. I urge you to do your part.

While history likely won’t note whether or not executives at the currently troubled firms received enormous golden parachutes, it will judge whether ordinary Americans were allowed to crash to the ground, armed without even the basic parachute of sound advice and guidance.

Scone: Single women’s retirement future slipping away

Although no one is saving well for retirement, a new study from Transamerica Center for Retirement Studies reveals that single women are particularly vulnerable.

It is a group that employers will need to plug into specifically for retirement communications, as research shows the majority of adult women are now single (51% were living without a spouse in 2005), and 10.4 million are single mothers.

Transamerica finds the amount single women say they will need to save for retirement ranges from less than $100,000 to $2 million, with the median being $500,000. However, 60% guessed at that number, while only 6% used a retirement calculator or spoke to a financial advisor. The study also finds that more than one-fifth of single women (21%) didn’t start saving for retirement until age 40 or later, and that the median contribution rate is 6% across all age groups.

These are scary statistics that employers must pay attention to. These women have only themselves to rely on financially, and many are caring for children on their own. Plus, research shows that even if they do ultimately marry/remarry, they likely will outlive their spouse.

With that in mind, I encourage employers to take cues from some school educators that are separating children into boys and girls classrooms. Studies show that both groups fare much better in same-sex environments, for multiple reasons, and I think the same could be true of men and women when it comes to retirement education.

Granted, the tools and techniques for saving and investing adequately are the same, regardless of gender. However, how those techniques are learned may very well be gender-specific, and perhaps all employees might benefit from separate messaging. Clearly, gender-neutral education and communication hasn’t worked very effectively. Let’s give something new a shot.

Scone: Private citizenry gives Gingrich 'purple' appeal

Whether they were red- or blue-affiliated when they entered, attendees at Monday's Benefits Forum & Expo keynote session with former House speaker Newt Gingrich left seeing only purple. Although still a political conservative at heart, Gingrich -- who received a standing ovation -- appealed to everyone across the political spectrum with his remarks on improving U.S. health care and finances.

Among his proposals for transforming the nation's health care system, Gingrich advocates a national defense system for health records -- suggesting we apply the ATM model to health IT.

Even in foreign countries, he pointed out, "we trust the ATM system so much that you'll open your bank account across international borders, take money out in local currency when you don't know the exchange rate and not know what's left in your account afterward." He said similar infrastructure should be the backbone of a national electronic health record program.

Although speaking specifically about health care in his prepared remarks, questions from the audience predictably turned toward the current financial crisis and the proposed government bailout of the nation's banking system.

Dubbing the plan "crony capitalism," and predicting disaster if the proposal passes unedited, Gingrich said he is "deeply opposed" to the administration's proposed bailout and said other alternatives to aiding the economy -- including eliminating the mark-to-market rule and the capital gains tax, and repealing the Sarbanes-Oxley Act -- that "don't involve giving [Treasury Secretary Henry] Paulson $700 billion."

Veering away from the gloom and doom, Gingrich ended on an inspiring note, telling the audience they were "at the early stages of witnessing American creativity that will transform our country, and 25 years from now, we'll say, 'I knew they'd work it out.' The American people are so much more creative than their government."

I admit, I'm pretty blue-blooded (politically, not financially), and I thought he was one of the best conference speakers I've seen in a long time, if not ever. Hopefully, this write-up helped you feel like you were there and captured some of the energy in the standing-room only hall. More coverage of the session and day 2 of BFE is available at BenefitNews.com.

Scone: Employers snatching 'low-hanging fruit' in health care reform effort

Greetings from National Harbor, Md., at the 21st annual Benefits Forum & Expo, where EBN opened its annual conference on a high note with Morton Kondracke, editor of Roll Call, who hasn't lost his knack for blunt honesty that he honed as a television political commentator over several decades.

Plainly calling a spade a gardening tool, Kondracke told BFE attendees on Sunday that "the world changed last week," referring to the current banking crisis and impending government bailout, which means that "$1.3 trillion we now won't get to spend on anything except bailing out the financial system."

Coincidentally, he pointed out, that $1.3 trillion is about the same amount Democratic nominee Barack Obama proposes to spend in outlays to implement his health care plan, as well as the cost to cover the high-risk insurance pool Republican nominee John McCain would create in his plan.

But the bailout of the financial markets "seriously hinders anyone doing anything about health care, no matter who the president is. Even before this crisis, health care was moving down on the American priority list, and now it's gone even further. The new fiscal reality means we're looking at something very different from what either Sen. McCain or Obama want."

Instead of sweeping new plans, Kondracke urges stakeholders to pick "low-hanging fruit," like adopting standards in health IT, advancing disease management and emphasizing preventive care -- all of which employers already are doing, to the extent that such decisions are within their control.

Despite the pretty dismal financial news and outlook for true health care reform, hearing Kondracke speak made me feel encouraged. The more immediate health care changes he advocated are ones that employers have been implementing steadily over the last decade. Currently, the majority of you have disease management programs and wellness programs stressing prevention, and are adding to them annually. You're taking on a truly difficult situation and rather than waiting on Congress to create solutions, you're creating your own.

Employers can't control Washington, but surely are taking the low-hanging lemons Kondracke pointed to and are making great lemonade. I say keep picking.

Scone: Trust issues limit employees’ HR interactions to transactional

Two surveys out this week show HR/benefits managers have some PR work to do among employees at their companies.

First, the Opinion Research Corporation finds Americans are more likely to go to a friend or colleague than HR about an issue at work. Most (66%) would, understandably, speak to their manager about a problem. But the stats become cringe-worthy when you consider that 39% prefer to turn to friends and less than one-quarter (22%) would go to their HR department for help.

Worse, 26% of workers surveyed doubt HR’s commitment to keep details confidential. Where did employees get the idea that HR/benefits pros are a bunch of blabbermouths? Perhaps somewhere in your efforts to become a strategic business partner and aligning the benefits function with corporate interests, employees began to believe that your job was to help the company, not them. Just my two cents.

Whatever the reasons behind the distrust, for now at least, it seems employees would prefer to keep the HR-employee relationship a transactional one. And even in this regard, it looks like benefits pros have some work to do. Although MetLife reports that HR is the number one source consulted for advice during open enrollment, 51% of employees say they didn’t get the resources they needed to make informed benefits elections.

Many employees said they felt either confused (25%) or frustrated (24%) while selecting their benefits, leading three-quarters of employees to make no changes – surprising, given that 44% experienced a major life event, such as a divorce, having a baby, buying a home or getting married.

MetLife offers several tips for employers on improving benefits communication and guidance, and a new tool to simplify the enrollment process. However, in my view, employers can improve employees’ understanding and perceived value of your company’s benefits and the HR/benefits function without spending anything. Just talk to your workers. That’s it. Face-to-face, and answer their questions individually. Why this idea has become a novel one, I’ll never know.

I know that you’re busy, and self-service tools make your job easier. And I know you’ve read surveys that show employees want more benefits information available to them online. But when it comes to confusing financial decisions, people want to talk to another human being. It’s why in a world that’s almost completely automated, people will call a customer service line and press countless buttons just to get to a live voice.

Yet strangely, MetLife finds only 30% of employers conduct enrollment meetings/seminars. If you want employees to be responsible stewards of their health care and other benefits dollars and decisions, you have to show them how. In person.

For employers to be successful, both the trust and education issues must be addressed. As Wheatley says, “The critical role HR plays within an organization should not be underestimated, as the success of any enterprise depends significantly on the extent to which its workforce is engaged with and dedicated to its mission.”

Scone: Reflecting on 9/11

Although it's clearly not the breakfast hour, it took me some time to get my thoughts together today.

I get chills every time I look at the calendar and remember -- each time, with full force -- the sadness and fear I felt that day. I recall wondering, like we all did: How? Why? What next? And thinking, like we all did, that nothing would ever be the same.

Over the weeks that followed, I remember seeing how our shared tragedy and grief brought out the best we all had to offer. As sad as it is to think of that day, I feel proud of the strength of resolve and unity of purpose it yielded. To share a little of that pride with you, here's a 2002 EBN article about how one company helped heal its employees in the aftermath of Sept. 11.

Scone: I left my car in San Francisco

The latest news from benefits trailblazing city San Francisco -- land of mandatory paid sick leave and allowing same-sex marriages -- is that mayor Gavin Newsom has signed into law an ordinance that requires employers to offer workers at least one of three transportation benefit options.

The law, the first of its kind nationwide and effective Sept. 22, applies to employers with more than 20 workers and who work at least 10 hours per week. Employers must:
* Allow workers to make pretax contributions for transit or carpool passes, up to $115 a month (the federal maximum allowed).
* Offer reimbursement for transit or vanpool charges.
* Provide door-to-door shuttle service at no cost to employees.

The law gives employers a break on payroll taxes and -- in the face of high gas and transit prices -- employees likely will leap for joy. It seems like a (to use the cringeworthy cliche) win-win. I especially like the door-to-door service option. Pretty sweet.

For all of the political debate about what to do about rising fuel costs -- drilling versus not, tax breaks and incentives to be green versus tax penalties for carbon emissions -- maybe we needed this crisis to spur a little ingenuity and can-do spirit. The higher costs have gone, the more employers have embraced nontraditional solutions to give workers a hand -- telework options, shorter work weeks with extended hours, gas cards, transit subsidies or discounts and incentives to purchase hybrid cars.

And while I certainly don't cheer for prices to climb any higher, I'm glad the situation has heightened employers' awareness and willingness to make employees' lives a bit easier -- something that in the current economic environment is easy for them to forget.

Scone: At least an iPod comes with instructions

The American Savings Education Council (the nonprofit arm of EBRI) and AARP have released a new report examining the retirement readiness of Gen X and Gen Y workers. The report makes all of the usual observations about these two groups -- among them, that they aren’t saving as much as they know they should, yet remain confident that they will ultimately achieve a secure retirement.

However, the report goes off the rails a bit when it not-so-subtly observes that the younger generations know more about operating an iPod than about saving for retirement. According to the report, 40% of workers age 19 to 39 say they are “very knowledgeable” about how to use an iPod, while just 15% say the same about both saving for retirement and how to invest outside of a workplace plan.

Okay, I admit I’m biased -- as a member of the demographic being studied, I feel the need to defend myself and my generation -- but let’s compare apples to apples here. Putting the complex considerations of investing effectively over the course of decades to prepare for an unfixed date in the future on the same plane as operating a gadget that -- in its tiniest model -- is slightly larger than a postage stamp is unfair and ridiculous.

First, as employees of all ages will tell you, saving for retirement doesn’t come with explicit written instructions, 24-7 tech support and a user-friendly interface like the iPod does.

Second, you only need to learn how to operate an iPod once, and then never again. The instructions never change, unlike the laws, plan designs and investment options surrounding retirement plans.

And third, if you’re using an iPod wrong, you’ll know -- it won’t work. Unfortunately, if employees save ineffectively for retirement, the consequences may not be known until it’s too late.

Perhaps, ASEC and AARP should help employers and lawmakers increase the ease of use and understanding of retirement plans for employees, rather than give the impression they’re shaking their heads, thinking, “Silly youngsters -- can't even navigate saving for retirement.”

Because in truth, no one of any age is saving for retirement well, made plain by paltry overall savings rates as well as a nugget in the survey that says younger workers learned their financial know-how from guess who? Their parents.

Scone: Parental leave legislation freshens debate

The House’s recent approval of parental leave legislation has revived the debate on the issue with fresh vigor among lawmakers, employers, employees and family advocacy groups.

This time the tug of war focuses on the measures in the Paid Parental Leave Act, which would afford every federal employees entitled to FMLA four weeks of paid leave upon the birth or adoption of a child. As mentioned above, the bill has passed the House and a companion bill is before the Senate. However, the bill likely will hit a wall, as the president already has threatened to veto it.

Each time legislation like this makes a step forward, we are reminded that the United States is the largest industrialized country – among Liberia, Papua New Guinea and Swaziland – that lacks a national paid leave program. Every time I hear that statistic, I cringe.

For a country that places such high value on family, we don’t do so well in making sure new families have an adequate time to spend bonding and settling in together. And why? Because our country places an even higher value on money. And paying people to cuddle their newborns rather than doing their jobs runs counter to that value.

Further, in the current economic environment – where employees feel they are just one missed deadline away from the unemployment line – parents may be less inclined to take parental leave even when its available to them.

Both issues may lead employers to believe that paid parental leave is unnecessary. They would be wrong. I encourage benefit managers to lobby for parental leave at their individual organizations as well as on the national stage. What you may lose in employee productivity, I predict you’ll gain in employee satisfaction and loyalty.

Scone: SHRM welcomes new CEO

Following the departure of longtime CEO Susan Meisinger, the Society for Human Resource Management has named Laurence "Lon" O’Neil as its new president and CEO, effective Oct. 1.


SHRM took six months to find O'Neil after Meisinger announced her resignation in January. It looks like the long search was worth it, as the association seems to have hit the mother lode for what it will need from a leader in the current HR/benefits atmosphere.

First, O'Neil most recent stint was five years as senior vice president and CHRO at Kaiser Permanente. As the rising cost of benefits -- most acutely, health benefits -- remains the Achilles heel of even the best and brightest in the HR/benefits profession, O'Neil's experience and insider knowledge of the inner workings at a multibillion-dollar health care organization can only aid and inspire practitioners.

Second, O'Neil also took a turn in the banking world as CHRO for global corporate and investment banking at Bank of America and oversaw HR in Asia. As the struggling economy and expanding globalization both take greater prominence in HR/benefits pros' everyday work, O'Neil should be a valuable leader.

Although EBN competes with SHRM's HR magazine for readers and ad dollars, I'm happy to say among the organization's 245,000 members are loyal EBN readers. I congratulate them on finding a new leader I believe is well positioned to lead them in facing the unique challenges of today's HR/benefits world.

Scone: HSAs not working, time to let go

I know it’s hard to admit when something just isn’t working the way you’d hoped, despite your best efforts. It can be easy to try to force the issue or put blinders on and simply tell yourself things are fine. However, it takes true strength to acknowledge something has failed and move on.

I think we’ve reached that point with health savings accounts. Progressive employers have implemented the plans with workers and yes, some have achieved savings. But I think we all know that HSAs have not had the revolutionary effect on health care that many of us believed they would.

In addition to consistent single-digit adoption among individuals who have a choice in health plans and high levels of dissatisfaction among active workers, new research from the Employee Benefit Research Institute shows contribution limits make HSAs minimally beneficial to retirees as well.

As contributions are limited ($2,900 for individuals and $5,800 for families), and because HSAs are linked to high-deductible health plans, it is likely HSA owners will tap their accounts to pay for medical expenses during their working years, EBRI finds. Further, distributions cannot be used for employment-based retiree health insurance until an individual has reached age 65. Thus, early retirees do not have immediate access to HSA accounts for retiree health premiums.

“The maximum savings that can be accumulated in an HSA will be far from sufficient to fully cover the savings needed in retirement for insurance premiums and out-of-pocket expenses,” researchers bluntly conclude in this month’s EBRI Notes.

Further, a sneak at the Sept. 1 EBN reveals that experts say allowing participants to fund HSAs with IRA funds won’t help spur use either.

So are we ready to say CDHPs or at least HSAs aren’t the health-care savior we’d hoped for? Not to sound clairvoyant, but EBN made this call last year. There’s even more evidence now. Enough already.

Scone: Bush attempting to pave over glass ceiling?

The Paycheck Fairness Act, recently approved by the House (247-178) aims to help end pay discrimination against women and close the pay gap that has persisted for decades between the sexes.

Despite the passage of the Equal Pay Act in 1963, women still earn only 76 cents to every dollar earned by a man (a lifetime income loss ranging from $400,000 to $2 million, according to one estimate). This, in spite of the fact that women are receiving degrees at rates higher than men and the number of dual-earner households in the United States is higher now than any other point in history.

Aside from the issue of simple fairness, the legislation may help strengthen middle-class families depending on two incomes to make ends meet. Sadly, President Bush has threatened to veto the bill.

The veto threat isn’t too surprising, I suppose, given this president’s affection for the business industry that – God forbid – would have to spend more to meet the legislation’s requirements. And if he couldn’t get behind health insurance for poor children, women probably shouldn’t expect any better.

Still, it’s disappointing when the person elected to do what’s best for all Americans, maintains the standard of what’s best for only half.

Scone: Actually, being fat does pay

In the “I-don’t-know-whether-to-laugh-or-cry” files, an Oregon man has successfully sued his employer to foot the bill for his gastric bypass surgery, using the state’s workers’ compensation law.

After injuring his knee on the job in 1976 and reinjuring it in 1999, his physicians told him that his obesity -- he’s 350 pounds – would prevent effective treatment for the injury. He’s elected to undergo gastric bypass surgery and sued his employer to pay for it with workers’ compensation benefits. The state workers’ comp board and an appeals court gave the greenlight.

I admit I don’t know all the facts of this case, but it seems a pretty big leap to suggest an employer caused a worker’s obesity, particularly to the point where the company would be on the hook to pay for a procedure to reverse said obesity.

Personally, I think employers are doing all they can and then some to help employees get healthy – and perhaps this case is a sign that truly no good deed goes unpunished. Wellness programs, disease management, walking trails and onsite fitness facilities, healthy vending/cafeteria options, free health risk assessments and on and on cost employers millions of dollars each year.

Not out of complete altruism, certainly, but the bottom line is that employees can benefit from the programs at no cost to them. This is the kind of case that might make employers wonder whether the effort is worth it.