Behavioral/Clinical Intervention
Prevention Promotes Wellness, $avings
EMPLOYERS often bear the direct (i.e., medical claims) and indirect (i.e., absenteeism, lowered productivity) costs from diseases, disorders, and conditions that could have been prevented or more effectively treated by services that focus on behavioral and/or clinical interventions. That’s one reason why more than 80% of small employers and almost all large employers now offer their employees some form of health promotion or prevention program, according to the National Business Group on Health (NBGH).
For the past few years, employers have been boosting workers’ premiums, copays, deductibles, and coinsurance levels in order to reduce their share of health benefits costs. However, these approaches can only do so much because they don’t deal with the underlying cause of employees’ health problems, according to Paul Fronstin, director of health research and education at the Employee Benefit Research Institute.

Preventive services are the cornerstone of these changes, according to Helen Darling, NBGH president. Research has clearly shown that high quality, evidence-based preventive care is key to helping people live healthier lives and to reaping better value for what we spend on healthcare services, according to Dr. Carolyn M. Clancy, Director, Agency for Healthcare Research and Quality (AHRQ). “Employers can and should play a leading role in supporting the health of their employees by supporting healthy worksite programs, educational programs, and health-conscious work environments.”

With nearly 60% of companies’ after-tax profits spent on corporate health benefits and an estimated 25% to 30% of medical costs per year being spent on employees with excess health risk, experts believe that reducing employees’ health risk levels and keeping low-risk workers at their current level could have the potential of reducing medical claims by a third, according to the NBGH.

As more employers promote prevention and healthy lifestyles to control spiraling health costs, The Employer’s Guide to Health Improvement and Preventive Services, a free NBGH publication available at http://www.businessgrouphealth.org/services/index.cfm, tells employers how to structure benefit designs to help employees who face a wide range of health conditions, such as cancers, high blood pressure, pregnancy, and substance abuse. “Data show that employers find a potential three-to-one return on investment, or $300 for every $100 spent per employee, on implementing preventive services and health improvement programs,” says Darling.

Balancing the Bite
Employers Spare Vision, Dental Benefits

FOR MANY employers, retaining or even adding dental and vision benefits has become a relatively inexpensive way to take the sting out of cutbacks in medical coverage. While general health costs have risen several times faster than the overall rate of inflation, prices for dental and eye care have increased at a more measured pace. However, the trend toward making employees pay for ancillary health benefits is gaining momentum.

VSP, the country’s largest vision plan, estimates that if the trend continues, more than 50% of vision plans will be fully paid by employees in 2010. However, the shift is less pronounced in dental coverage. According to Delta Dental, employers are beginning to tinker with dental coverage by requiring employees to pay higher copayments, deductibles, and other costs.

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Benefits Costs Represent 37.6% of Payroll in 2003
Employers provided an average of $18,358 in employee benefits per employee in 2003, according to the U.S. Chamber of Commerce’s recently released annual survey. The largest amount ($5,653) was spent on medical benefits, followed by paid time off ($4,932) and retirement and savings ($3,303). Employee benefits costs represent 37.6% of payroll among all companies, with manufacturing companies spending more on such benefits than non-manufacturing companies.

OSHA Requires Posting of Injury, Illness Numbers
Effective February 1, most employers must post a summary of the total number of job-related injuries and illnesses that occurred in the previous year, according to new requirements of the U.S. Occupational Safety and Health Administration (OSHA). In addition, an employer must also provide employment information about the annual average number of employees and the total hours worked during the calendar year, which will allow an observer to calculate incidence rates. A company executive must certify each summary form (Form 300A) and display it in a common area wherever notices are posted. Employers with 10 or fewer employees and those in certain industry groups are exempt from the new requirements. A complete list of exempt employer groups is available at www.osha.gov.

Employers Struggle with Critical Issues
Rising healthcare costs, employee retention, economic uncertainty, and the need to increase productivity top the list of trends that will affect U.S. businesses in 2005, according to the Society of Human Resource Management’s (SHRM) Workplace Forecast.

Do you have part-time or non-eligible employees not covered on your group health plan? Gemini Group, Inc. can help!

Recent changes to Colorado Health Insurance law have made it easier to get these workers health insurance coverage. Gemini Group, Inc. can show you how to best use these changes to your advantage.

Benefits at no cost to the employer- Under the new guidelines, a company can now help workers obtain affordable individual health insurance coverage at no cost to the employer.

Helps eliminate C.O.B.R.A. problems- An employer can now help terminated employees obtain an option to C.O.B.R.A. that usually will cost less and move them off the group plan.

Cover dependants no longer eligible for a group health plan- When a dependant graduates or reaches an age where they are no longer eligible for a group plan, an employer can help by contacting Gemini Group, Inc. to get them covered on an individual health plan. It's easy to apply for individual health coverage at www.geminigrp.com

Call Gemini Group, Inc. at (303) 757-1234 to find out how our team of consultants can help find exciting new solutions to all your benefit needs.

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