In the Trenches! Small Business & Employee Benefits

Health Conditions

Why Your Company Needs to Know –

Know What?  The Medical Conditions within Your Group

It is imperative companies/organizations know the medical conditions within the group.  Without knowing these conditions, it is impossible to create a long-term strategic plan for getting and keeping your employees healthy.

There are now HIPAA rules that allow insurance companies to hide behind them thus not working with the employer to help him or her provide the “right” kind of support to keep their employee population healthy.

To this the typical insurance company might reply, we have every possible piece of assistance on our (the insurance company) website.  Which is true, but how many of us go to a website for a long-term solution to a health problem?

Recently we were having this very discussion with a representative from one of the largest health insurance companies in the nation.  We were asking for a breakdown, even in the most general of terms, of a specific company’s medical issues so we would know how to plan their wellness programs for the next year.  The insurance company rep told us no, sighting the law that states employers with less than 100 employees are not entitled to medical claims data.  This is one of our pet peeves and here was our answer:
O.K. this is ridiculous - we are all supposed to be on the same team.

I don't care what the regulations say or that the group is almost 100 employees at which point the [medical] data all of a sudden becomes credible [believable and available].

Think about this - IF we are a proactive broker, and we are, we are working with the management of all of our clients to measure where they are vulnerable.
Vulnerable = exposure to being harmed.

If we do not have claims experience including pharmacy, we don't know the conditions around which we should be creating savings programs.

For example, say there is a high quantity and cost of mental and nervous prescriptions being used by the group?  If we ignore this, it can only get worse.  If we go into management, point this out and begin to probe, we may find the business is going through a rough time and it is affecting the entire employee population.  Or, we may find they have a high stress project.  Or, as in the case of one of our CPA groups, they have a lot of illness in March and April.

Armed with this information, we can create programs to directly address the situation and keep everyone healthy and at work.  In the case of the CPAs, it was a massage therapist coming through the building every other day during tax season and working on everyone for 15 to 20 minutes.

In the case of one of our clients with a high mental and nervous Rx, it was one spouse traveling for work, away from home for 2 weeks at a time, home for a week and then gone again for 2 weeks.  (This company’s Hurricane-season-related work pulls employees away from their homes for two to three months on this schedule.)  Once we realized the cause of the stress, we were able to arrange some babysitting for families while the spouse was away and make sure every time the spouse was home they were afforded one nice evening out at company expense.

Without mining the claims information, we leave the employers without direction.  They can be in denial that there is a problem or too busy to address it.  Why would we, the insurance company or Braden Benefits, want to deny this information and positive solutions?

If we were a different broker, I could see musing that the higher the premium would result in higher broker commission.  To us, that is a self-defeating proposition and we are not that broker.

Let's not hide behind law and regulation, rather do what is right for our mutual clients and the marketplace.  Given where we are trying to head, even a letter that says, “looking at the claims for the last quarter, we might suggest an exercise program or a healthy baby program or a stop smoking program, etc.”  Why dismiss the logical?  It's much more fun to be proactive and lead!

To those of you working with us to maintain low and consistent premiums we say:
Within the claims data, credible or not, lay answers to parts of the health insurance premiums that can be controlled.  Stay in the fight, it is the only way to make progress, maintain a viable workforce and provide your product or service.

Braden Benefit Strategies, Inc. is a “Pro-Active” employee benefits broker engaging with companies up to 1000 employees.  We can be reached at 770-447-9843 or 800-393-0272 or expert@bradenbenfits.com

STAND UP AND LEAD

Braden Benefit Strategies, Inc. (BBSI)
Experts providing employee benefit solutions
770-447-9843 or 800-353-0292

STAND UP AND LEAD

You may have read and thought about what has been said concerning the health of your employees.  The question still remains, how?


The answer is, I don’t know.

So let’s think about how to start. 

Gather a group of your employees and discuss the problem with them.  Let them think about it and then bring them back together and ask if they have any ideas?  If they have talked to others and what they learned?  If they were you, where they would begin?  This discussion may take several meetings as your employees learn this is a serious problem and you are not going to let the subject drop. 

As you gather input and data, listen to what the group is saying.  How is it best to motivate your workforce?  What is keeping your group from performing, both on the job and in staying physically fit?  What would help your employees be successful?

Next question – who is the best person to head up this effort?  Who is committed to the cause and will make it a top priority?  Who can create enthusiasm among your employees and actually see the project through? 

What type of support are you going to give the project?  For it to be successful, you must give it your time.  As leader of your organization, if you do not put the power of your position behind the effort, your employees will never understand how important a physically fit organization is. 

There may also be a request for monetary assistance.  By letting the employee base determine the program, you will be surprised at how little this investment will actually be – employee’s generally do not think in terms of expensive incentives, they think of the goal at hand, giving your organization back the physical health your employees need and desire.

How long is the initiative going to last?  We agree it needs to be “forever”. However, this is probably unrealistic and does not give employees a goal.  So give it a start and stop date.  When this program is over, ask the committee to start another program.  Add new employees to the committee and ask for fresh ideas.

Bottom line – this is a program that can never end; a corporate initiative that can never stop.  To protect your bottom line, you must keep the emphasis on healthy employees just as you do every other aspect of your organization.

Braden Benefit Strategies, Inc.
www.bradenbenefits.com
expert@bradenbenefits.com

Weight= Increased Premiums

Braden Benefit Strategies, Inc. (BBSI)
Experts providing employee benefit solutions
770-447-9843 or 800-353-0292

WEIGHT = INCREASED PREMIUMS

It’s that simple. 

So what are you doing about it?  It’s that simple!

Here’s the deal.  You can complain, worry, blame all you want but the bottom line for most organizations to the long-term control of your health insurance premium IS a healthy employee population. 

When you consider the root of most illnesses today – it’s weight!

It’s that simple.

Poor physical fitness, disproportionate height/weight, insufficient intake of water = poor physical health = increased premiums.

Obese is defined as 30 pounds or more over weight.  Morbidly obese is 80 pounds or more overweight.  Of those individuals considered morbidly obese, 25% of them are being treated for 6 or more weight related diseases!  Weight related – things like high blood pressure, high cholesterol, joint pain, osteoarthritis, cancer, heart disease and stroke, gout, breathing problems such as sleep apnea and asthma, diabetes, and depression.

We all know there is nothing we can do to help a person lose weight or become physically fit if they are not ready.  However, we can provide a culture of wellness in our work environment, a culture that requests healthy pot-luck events, endorses National wellness efforts such as the annual Heart Walk and the Susan B. Komen Breast Cancer three-day walk.   A culture that provides fruit instead of chocolate, nuts instead of potato chips and water instead of Coke.

This does not have to be a big expensive corporate effort.  It just has to be consistent and endorsed by the leadership.

Don’t get me wrong, there are organizations that, for a price, will come into your company, set-up and run a wellness program.  There are very successful programs and there are programs that allow the leadership to claim they are doing everything possible to create a healthy culture while nothing changes.

Your biggest asset is your employee base.  It is not hard to lead them into a productive environment.  Let’s face it, no one wants to be fat – no one.  However, the temptations of today’s world make it difficult if not impossible to stay on track.  The answer, provide an environment that makes it EASY or at least easier to be physically healthy.

How do you do this?  While there are several ways to accomplish this task, I truly believe your best bet is to gather a group of employees and ask for their help.  Give them the problem, be an active participant and supporter of their efforts but let them create and enact the change in the Corporate Culture.  Set up benchmarks, offer financial support if you can but most of all keep the program alive by putting as much emphasis on the program as you do the company’s bottom line.

Every dollar spent on medical premiums comes right out of corporate profits.  Or if you are a non-profit, right out of other uses for the money – EVERY DOLLAR.

Braden Benefit Strategies, Inc.
www.bradenbenefits.com
expert@bradenbenefits.com

WAL-MART

Braden Benefit Strategies, Inc. (BBSI)
Experts providing employee benefit solutions
770-447-9843 or 800-353-0292

Wal-mart pays over $2,000,000,000 a year in health insurance premium; yes that is $2 billion.  In 2006 they received notice their 2007 premium would increase 24%.  How do you deal with that?  And the company was under close scrutiny by the press to provide health insurance to ALL of their employees at Wal-mart’s expense.

Not a hot seat you want to be in?  You are!  You may not have realized it yet, but you are there.  Your numbers may be slightly different, your population may have different demographics – bottom line is you have a company made up of human beings.  As human beings, at this time in the United States, it is easier to be unhealthy than healthy.  After all we have a pill for everything and we want instantaneous results, which leaves you with very little personal responsibility for your day-to-day physical fitness.

What did Wal-mart do?  One of the things they put into place was a wellness program.  What should that say to you and me?  There is a direct correlation between employees’ physical fitness and the company’s health insurance premiums.

Looking for a 24% increase?  Do nothing.  Looking for long-term relief?  Create a culture of wellness and keep the culture front and center so your employees know how important it really is.

Braden Benefit Strategies, Inc.
www.bradenbenefits.com
expert@bradenbenefits.com

Thoughts on controlling the cost of health insurance

Braden Benefit Strategies, Inc. (BBSI)
Experts providing employee benefit solutions
770-447-9843 or 800-353-0292

Thoughts on controlling the cost of health insurance:

1. Consumer/employee is out of touch with the cost of healthcare.  Several methods are available to help individuals/employees come more in touch with their healthcare costs.

BBSI maintains that companies not taking a pro-active approach to their rising health insurance premiums will – at some point in the future – have an expense crisis requiring huge negative changes for employees, be it from large premium increases, reduction in benefits, or both.

Long-term strategic plans can help companies’ control one of their largest line item expenses.

2. Insureds are not taking care of their health, rather solving medical issues with prolonged prescriptions and/or therapy costs.  This is reinforced by the rising rate of obese and morbidly obese individuals.  Point in fact, USA Today  reports that morbidly obese people in the U.S., those 80 pounds or more overweight, are being treated for 6 or more weight-related conditions.

3. Physicians – medical schools are graduating the same number of doctors that they were 20 years ago.  So while the population has grown by 20% , our physician population has not increased.

4. Insurance agents are not held accountable for negotiating the very best renewal prices for their client.

Insurance rates, self-funded, partially self-funded or fully funded policies are determined by the demographics and medical conditions of a group.  While agents may claim they receive better rates than other agents in a particular market – this is untrue.  An agent or an agent’s relationship does not determine rates with a particular carrier.  Rather, your rates are a mathematical calculation of the group’s age and sex as well as past and present medical conditions. 

Agents need to make a transition.  Agents need to redirect some of their revenues in order to deliver more than just reactive customer service to clients.  Ask your agent for a breakdown of the commission they earn on your company.  Find out what your agent is paid annually from each of the insurance companies.  Is your organization receiving the value of your investment?

Also, ask your agent for the agency’s income breakdown by insurance carrier.  Ask what bonuses were paid to the agency in the last two years, again broken out by insurance company.  Compare the agency’s business breakdown with the states break out (States will offer the amount of business by each carrier annually.)  If there is a lopsided income distribution, ask yourself, is the agent being objective in where they are placing our business?  Is the insurance that your company provides the right insurance coverage for your company?  Agents need to transition and become consultants – trusted advisors for their client companies.

Services offered by agencies should not only include resolving employee claim problems and company billing errors but
· Strategic long-range planning,
· Annual legal notices related to the company’s health insurance benefit package (HIPAA, COBRA, Cafeteria plan, Medicare, etc.)
· Analysis of the company’s claims and suggestions and programs to help hold claims in check.
· Electronic capabilities that save the company time while assuring the confidence of your employees.  Can employees enroll in their benefits electronically, see their benefits online 24/7, determine the cost of their individual benefits online, make changes such as address, cell phone, beneficiary and have this information sent to all relative carriers electronically?

Agents are offering great re-active customer service.  What if your agent offered great pro-active customer service?  Your employees would be in your office less, on the phone less time trying to resolve claims and much more satisfied with the benefits your firm is providing.

Isn’t it time you ask your agent to earn their commission or find an agent who will?

Braden Benefit Strategies, Inc.
www.bradenbenefits.com
expert@bradenbenefits.com

Identity Theft Prevention

LifeLock guarantees that employers will not have their identity stolen and is backed by a $1 million guarantee from Lloyds of London.

Identity theft has become the fastest growing crime in America. Over 10 million people will become victims of identity theft this year individuals in excess of $5 billion. Identity theft can exert a big drag in productivity if you spend time at work trying to put their good names and financial records back in order – not to mention the stress and distractions from having accounts tampered with and personal information violated.

The Federal Trade Commission shows on average it takes an individual 177 hours $1,400 to clear their name as an identity theft victim.

The programs are designed to be flexible for you and your family, offering either monthly or annual payments. You can also cancel at any time.

In addition to LifeLock’s guarantee it provides:

• Free annual credit reports
• Drastic reduction in junk mail
• Help desk when applying for credit to expedite the process
• Stop pre-approved credit offers

For additional information and registration please visit http://www.lifelock.com and enter promotion code braden to get a 10% discount.