by Kenneth Ralff

Every day, companies of all shapes and sizes are forced to take cost-cutting measures to stay afloat. While executives struggle with difficult decisions, employees often ask, “how can I help?”

The first step is to talk to employees honestly about how they can help the company by cutting costs. This goes beyond the obvious costs, like business and travel expenses. Employees often don't realize they can have a direct impact on the bottom line by being a smarter consumer with regards to healthcare.

Here are some examples of how you can encourage employees to make cost-saving healthcare decisions:

• Save on Prescriptions. Employees should be reminded to ask their doctor if they can use a less expensive medication. If the medication they are taking is “Tier 3,” which is the most expensive co-pay, then there could be an alternative. For example, Veramyst is essentially the same medication as Flonase and costs five times as much. In addition, by ordering maintenance prescriptions through a mail-order program, employers receive bulk discounts, and employees get cheaper prices. It’s a win-win. It’s also a good idea to let employees know that local retail stores sometimes run specials during which prescriptions are offered at below co-pay costs. If an employee buys those prescriptions outside the health plan, the cost is not only lower but it also never hits your bottom line.
• Utilize the Nurse Line. If your health plan offers this type of service, employees can call (24 hours a day) with questions or issues. Often, employees can avoid going to the emergency room (and incurring those charges, for both themselves and the employer) because they are able to get a diagnosis or treatment plan from the Nurse Line.
• Ask Questions about Healthcare. Encourage employees to talk to their doctors about recommended services, such as MRIs, X-rays, surgeries, etc., to determine all of the possible options. For example, it may be possible to avoid surgery or an immediate MRI by instead doing a physical therapy program first. Or, there may be services that aren’t necessary because the treatment would be the same. For example, let’s say an employee breaks a toe. His or her doctor may recommend an X-ray but, regardless of whether the employee gets one, the treatment is exactly the same – wrap up the toe. So why incur the cost of an X-ray?
• Use the Employee Assistance Program (EAP). Since you likely have already paid for these services, it’s more of a return on investment if the services are actually utilized. One example is that EAPs often offer a certain number of free counseling visits. If employees take advantage of those sessions, they won’t be utilizing their health plan coverage to see a therapist. Employees save the co-pay, and you save the utilization costs from your health plans.

Today’s business conditions require everyone in a company to work together to save costs and, ultimately, increase the likelihood of survival. By helping employees understand how they can contribute, you can be well positioned for the future.

For more tips on how employees can save companies money, visit: http://online.wsj.com/article/SB123423753469566813.html#printMode

by Jennifer Burrus

Regulation changes for the Family and Medical Leave Act (FMLA) came into effect on January 16, 2009, leaving many businesses, with 50 or more employees, confused. Our goal is to help clarify how these changes impact you as well as how to effectively relay the new information to your employees.

Here are the major changes that you need to be made aware of:

• FMLA Forms - The Department of Labor (DOL) released new versions of FMLA forms.
• Changes in Notice Requirements - Employers can now deny FMLA leave if the employee fails to follow the normal absence reporting procedures when taking leave (absent unusual circumstances).
• Performance Awards - Employees may now have to forfeit “perfect attendance” awards, bonuses or other recognition if they fail to meet their goals because of an FMLA leave.
• Employee Health Care Provider Contact - The employer is now permitted to directly contact an employee’s health care provider (HCP) for verification or clarification purposes. This does not involve obtaining any additional medical information; rather, to verify a claim or understand the meaning of a response. The employer may contact the HCP using a health care professional, HR professional, leave administrator or management official. The employee’s direct supervisor is not permitted to contact the HCP.
• New Leave Reasons/Entitlements - Employees can now take up to 12 weeks of leave in the case of a qualifying exigency when an employee’s family member is called to active duty. Employees can also take up to 26 weeks of leave as part of the military caregiver leave entitlement to care for an injured service member.

So how do you handle all of these changes with your employees? The DOL has recommended specific ways in which employees need to be notified so that employers are not held accountable for any misinformation.

Below are the top steps employers can take to become compliant with the new regulations:

• Post the FMLA poster in a conspicuous place, in addition to distributing a general notice to all employees in writing.
• Update the FMLA policy in employee handbooks.
• Distribute the new policy to every employee who applies for leave going forward.
• Utilize all new FMLA forms that have been provided by the DOL.

When helping our clients with the new regulations, we always recommend attending a seminar or other educational course to get more in-depth information on the regulation changes. It's extremely important for businesses to adhere to these regulations, as well as educate their employees on their rights under the new regulations.

by Scott Kirschner

Renewal time is upon us. It's a time when the majority of companies and organizations will settle on medical benefits for 2009 and more importantly, decide what their employees will pay for health and dental coverage. The landscape right now is, in a word, situational. We're seeing some clients sneak by with no change to their plans. Others have been pleasantly surprised by unexpected savings. However, not everyone will head into next year with such a rosy outlook.
Some of the factors affecting medical benefit plans in 2009 are expected - a struggling business or aging workforce can both contribute to rising costs. But for other companies, they didn't see the increases coming. Economic troubles have hit the manufacturing industry hard, which overall, are facing higher insurance costs next year. In fact, any business that is impacted by the struggling economy or seeing a decline in profits, may be in store for higher medical benefit costs in 2009.

Also, companies who've made recent acquisitions must be aware of potential changes in medical benefits. Acquisitions present a tough dilemma for companies - they may find a complementary business at the right price, but also must consider hidden costs inside the workforce. It's a buyer's responsibility to look closely at demographics - does this group of people file a higher number of claims? Are they older? Do they participate in wellness programs? These are all questions to ask. If you don't know the answers, you could face a situation like the one a client recently went through. The company they planned to acquire was a perfect match with their business, but the workforce couldn't have been more different. The deal went through, but the company's yearly insurance costs shot up $4,000 per employee as a result of the newly added employees. Considering the turbulence of the current economy, this is one surprise worth catching and budgeting for in advance.

It will also be interesting to see how the Massachusetts medical insurance climate changes in 2009. On one hand, the market is stable. Bidding is low, which means, all in all, companies are pleased with their plans. This is a unique market because it is dominated by local plans, but the state has also embarked on an ambitious plan to insure everyone in the state. While Massachusetts now has the lowest uninsured rate in the country, the program is over budget and with proposals to eliminate the state income tax floating around, the success of the program could be in jeopardy.

It also stands to be seen whether Massachusetts will veer toward more consumer-driven health plans in 2009. If the economic troubles continue, they will weigh heavier on the health insurance market and likely prompt more companies to look for new cost-saving options, in new places. We've seen it happen recently in New Hampshire, who are shifting to consumer-driven plans. HMO dominance and hesitancy to change in Massachusetts may be a tough hurdle, but it will be fascinating to see if outside factors push the envelope in 2009.