News You Can Use: As costs increase, dental utilization decreases

Here's more evidence that cost-cutting can lead to scrimping on important health care services. EBA reports that a in recent Delta Dental Plans Association poll of 900 dental care consumers age 25 and older, 83% of benefit plan participants visit their dentist twice or more a year versus 63% of those who pay for their treatment out of pocket.

While 88% of the respondents received employer-paid dental care, 12% paid for voluntary benefits coverage. One troubling statistic that the nonprofit group noted in its 2008 Community Benefit Annual Report is that there are more than 3,700 locations across the U.S. without enough dental health professionals to help serve an estimated 46 million Americans.

EBN's February report, "Chipped teeth," further explores how cost-cutting and the recession are affecting dental benefits offerings and usage.

News You Can Use: Recession to affect workers more deeply

The ongoing recession already has affected employees, as the number of employers implementing layoffs and hiring and salary freezes has risen sharply in the last two months, according to a new survey from Watson Wyatt, and the cuts likely will continue into next year, the consulting firm finds.

Watson Wyatt reports that 23% of employers plan to make layoffs in the next 12 months, and an additional 18% are planning a hiring freeze over the same period.

“As the economic downturn has both broadened and deepened, companies in almost every industry can no longer stay the course,” says Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. “The need to contain costs has resulted in stronger measures that are ultimately affecting more workers.”

Among the other cost-cutting measures employers have planned over the next 12 months to survive the recession:
* Organization-wide restructuring 21%
* Eliminate/reduce training 18%
* Raise employee contribution to health care premiums 17%
* HR function restructuring 21%
* Salary freeze 19%
* Reduce/eliminate other employee programs 12%
* Salary reductions 6%
* Reduce employer 401(k)/403(b) match 7%

Findings show that almost two-thirds of companies have already taken five or more of the actions above.

“All indications are that 2009 will be a difficult year for both companies and ultimately employees,” said Sejen. “It will be up to employers to find an effective way to manage this challenge by balancing their financial situations with the likely impact on employee engagement.”

Tip of the Day: Energy (and cost) saving tips for the office

When your business is struggling to save for every penny, low-to-no-cost ways to save money are often overlooked in the search for the next grand solution. Go green(er) and with these cost saving measures, courtesy of the E.P.A.'s ENERGY STAR program:

Give it a rest
Use power management settings on your computer and monitor (sleep mode) when not in use. Use the power strip as a central "turn off" point to completely disconnect the power supply at night.

Unplug it
Unplug cell phones and laptops when they are charged. Adapters draw energy from outlets even when they're not charging.

Lighten up
Make sure your bulbs are ENERGY STAR efficient. They last up to ten times longer and use 75% less energy. And of course, turn the lights off when you leave.

Let it flow
Make sure paper, files and office supplies aren't blocking air vents. Blocked vents use up to 25% more energy.

Team up
Remember the power of numbers. Create a "green team" in your office to brainstorm ways to make your working environment a greener place.

Tip of the Day: Cost-Cutting measures for benefit plans

Want to know how to trim the fat from your benefit plan? Here are five easy suggestions.

1. Implement a premium surcharge for smokers or a premium discount for non-smokers.
   
2. Offer wellness screenings for employees, employer-subsidized gym memberships or premium discounts or incentives for participation in wellness programs (e.g., weight loss, blood pressure/cholesterol lowering, etc.).
3. Review vendor fee and service provider fee arrangements (e.g., HMO, claims administration, COBRA and FMLA administration, etc.), including actuarial, investment management and plan administration; and re­bid for vendors if necessary.
4. Freeze traditional defined benefit plan, and, going forward, offer a 401(k) plan with employer contributions.
5. Audit your retirement plans for operational compliance (voluntary correction of operational failures is less expensive than correction after discovery by the IRS).

Many thanks to Robert Flanagan, employee benefits and executive compensation partner at Seyfarth Shaw, LLP, for today's tip.