Category Archives: Health Care

Retiree Health Benefits Examined: Findings from the Kaiser/Hewitt 2006 Survey on Retiree Health Benefits

Source: Hewitt Associates: Frank McArdle, Amy Atchison, and Dale Yamamoto, Kaiser Family Foundation: Michelle Kitchman Strollo and Tricia Neuman, Findings from the Kaiser/Hewitt 2006 Survey on Retiree Health Benefits, December 2006

Employers continue to play an important role in providing health insurance coverage for pre-65 and age 65+ (Medicare-eligible) retirees. Employer-sponsored plans help bridge the gap in coverage for workers and spouses who retire before they turn age 65 and are eligible for Medicare. Today, an estimated 3.8 million early retirees (ages 55 to 64) and dependents receive health coverage from an employer or union. Without these benefits, early retirees often face significant challenges finding affordable coverage in the individual market, leading some to return to the workforce to gain access to health insurance. Employer plans also provide highly-valued supplemental benefits to more than 12 million retirees now on Medicare. For retirees on Medicare, employer plans remain an important source of prescription drug coverage, and provide additional cost-sharing protections, including limits on retirees’ out-of-pocket expenses.

Kaiser/Hewitt Survey Of Large Employers Finds Most Intend To Maintain Drug Coverage For Medicare Retirees In 2007 And 2008

Source: Craig Palosky, Larry Levitt, and Maurissa Kanter, Kaiser Family Foundation, Wednesday, December 13, 2006

Out-of-Pocket Costs for Retirees Continue to Rise for Employer Health Coverage

About One in 10 Firms Eliminate Retiree Health Benefits for Future Retirees

As the new Medicare drug benefit nears its second year, nearly eight in 10 large employers expect to continue to offer drug coverage to their retirees and accept subsidies from the federal government to offset some of those costs, according to a new survey of 302 large private-sector employers conducted by the Kaiser Family Foundation and Hewitt Associates.

Consumer-Directed Plans Cost Women $1,000 More Per Year Than Men

Source: BNA Pension & Benefits Reporter, Vol. 36 no. 16, April 17, 2007
(subscription required)

Consumer-directed health care plans cost working-age women about $1,000 more per year out of pocket than men, and are therefore “discriminatory” against women, according to a report by Harvard Researchers at Cambridge Health Alliance. CDHPs also cost middle-aged adults far more than younger participants, and raise costs substantially for those with even mild chronic conditions, the report says.

The Incredible Future of Home Care and Hospice

Source: Robert Fazzi and Lynn Harlow, Caring, Vol. 26 no. 3, March 2007

If you thought the past of home care and hospice was something, wait until you see the future. Home care and hospice are going to grow in the number of people they serve, and in the scope, clinical, and programmatic sophistication of their services. We will do more, serve more, and play a far bigger role in the future of health care than most people can imagine, and it’s inevitable.

Before you start thinking that these are the dreams of home care and hospice professionals, consider what the United States Department of Labor (2005) says; “The home health care services industry, which provides such in-home services as nursing and physical therapy, has the distinction of becoming the nation’s fastest growing employer by 2014.”

The Health of the Nation: Labor, Business, and Health Care Reform

Source: Marie Gottschlak, New Labor Forum, Vol. 16 no. 1, Winter 2007

Today, health benefits are once again a major arena of labor-management strife. And once again universal calls for universal health care by labor leaders mask important differences between them over health care reform. Some labor leaders are advocating a bottom-up mobilization in support of a single-payer solution that would dismantle the system of job based benefits based on private insurance. Others are staking their health care strategy on wooing key business leaders to become constructive partners in some kind of unspecified comprehensive reform of the health system.

State Government Employee Health Benefits in the United States

Source: Christopher G. Reddick and Jerrell D. Coggburn, Review of Public Personnel Administration, Vol. 27 no. 1, March 2007
(subscription required)

Employer-sponsored health benefits are an important but relatively understudied area in public sector human resource management. This study examines the choices that state governments make in the United States and the views of state human resource directors (HRD) on health benefits. Survey data, gathered from state HRDs in fall 2005, reveal several important findings: In terms of choices, the most common plan offered is the preferred provider organization (PPO); less than one third of states offer health benefits to nontraditional partners; health benefits improve employee satisfaction and the performance of the state government; and cost to the state government is the most important factor that affects choice of plan. There is not a high level of agreement on what strategies state government should pursue to reduce costs of health benefits; however, there is some agreement that premiums will be increasing in the near future.

Paying for Promises

Source: Jonathan Walters, Governing, Vol. 20 no. 5, February 2007

Call it the six stages of GASB 45: anger, denial, sorrow, acceptance, study and action. That’s been the general response to a new set of governmental accounting rules that ask state and local governments to spell out the costs of their promises to provide retired employees with health care as well as other post-employment benefits.

White Paper: State Government Employee Health Care Benefits

Source: National Association of State Personnel Executives Healthcare Taskforce, NASPE, September 2006 (the paper can be downloaded from one of the frames on this page)

No matter how you look at healthcare, it cannot be overlooked as a huge overall expense for state governments as well as all large employers—General Motors recently announced that $1,500 of the average cost of per vehicle sold is attributed to employee healthcare costs. Starbucks spends more on employee healthcare than it does on coffee beans. In state governments, an additional 9-16 percent of total payroll goes toward providing healthcare for employees. The Central States Compensation Association reports that with an average salary of $19.16 per hour for its member state workforces, an additional average of $2.16 is spent on healthcare or 11 percent. Southeastern States Compensation Association reports a salary of $14.94 and an average of $1.98 per hour for healthcare or 13 percent. From a total compensation standpoint, healthcare trails only cash (salary, wages) as state governments largest cost factor in most states and is the most administratively complex.