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: 401(k) changes a’comin’

Could be good news, bad news on the 401(k) front, as the IRS announced it’s raised the annual contribution limit from $15,500 to $16,500, but congressional lawmakers want to take the bull in a china shop approach to governing the plans, seeking to eliminate tax breaks for investors and mandating participation.