Playing your cards right to win at health care reform
From the August 2009 issue of Ceridian Connection.
What you can do now to help boost employee benefits, cut health care costs
and plan for year-end 2009
What you can do now to help boost employee benefits, cut health care costs
and plan for year-end 2009
| The nation's health care reform legislation cards have been dealt. While Congress retreats for a month-long August recess, it's anyone's guess what hand will turn up when they return in September. But that doesn't mean that HR and benefits managers need to gamble this year when it comes to open enrollment. There are, in fact, still some very safe bets. While members of Congress return home for recess, life goes on for employers as they seek ways to manage climbing health care costs, which, according to Towers Perrin's annual Health Care Cost Survey, rose on average by 6 percent in 2009. Although that growth rate remains on par with previous years, employers and their workers still faced record-high costs this year. No matter what legislation is ultimately passed by Congress, the way businesses must think about health care has changed. As an estimated 100 million Americans enter open enrollment season this fall, companies must now take a hard look at the health of their employees and what they can do to drive down costs. And whether health care reform happens later rather than sooner, employers must make smarter moves now. This means playing their two most valuable trump cards -- medical reimbursement benefits such as Flexible Spending Accounts (FSAs) and wellness and prevention programs -- in efforts to further curb rising health expenditures. Be well advised Health and wellness programs are often one of the first employee benefits to be cut or forgotten within an organization during challenging times. However, with costs continuing to rise, improving the health and wellness of employees makes sense -- and saves dollars. Even Congress seems to think so. "When you look at health care reform ideas, wellness and prevention are prominent," explains Eric Snyder, senior product manager for Ceridian LifeWorks. "One proposal that has attracted a lot of interest is the Healthy Workforce Act of 2009, authored by Senator Tom Harkin. If enacted, employers could receive a significant tax credit to help pay for the cost of their wellness programs." Under Harkin's proposed plan, employer's wellness programs would qualify for tax credits if they include at least three of the following four best practices:
Ceridian is already designing a corporate wellness program to meet all of the requirements of the Healthy Workforce Act. Organizations that adopt this wellness program will achieve the substantial benefits of Ceridian's health management program, including reduction in health care costs and increased productivity, even if it is not a federal mandate," says Shannon Rickert, Health & Wellness product manager at Ceridian. FSAs: Good-bye to a good buy? Much has occurred during the unpredictable legislative journey to reform America's health care system, including the need to help save FSAs. For a time, it seemed as if we could breathe a collective sigh of relief -- the danger of eliminating or curtailing the tax-saving advantages of FSAs appeared to have passed. But that changed. Congressional committees are once again targeting FSAs as a way to pay for a portion of the estimated $1 trillion health care reform price tag. Ideas under the proposals include eliminating the use of FSA dollars to pay for over-the-counter (OTC) medicines and a cap on FSA contributions. "Despite these ongoing health care reform efforts, open enrollment this year should be 'business as usual'," says Tony Meredith, an FSA product manager for Ceridian Benefits Services. "Nobody knows what the final health care reform package will include or when it will be passed. But we do know that FSAs are still a valuable cost-cutting tool this enrollment season, offering significant savings for both employers and their employees." Thirty-five million Americans have FSAs. More than 85 percent of large employers offer FSAs, providing a means to save as much as a third in taxes on certain everyday medical expenses for most of the nation's unionized workforce and most public employees. Proposals that significantly alter the tax savings of FSA and other medical reimbursement accounts -- such as Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs) -- would adversely affect businesses and their employees, many of whom are already struggling in a weakened economy. "Any legislation that prohibits the use of FSA dollars for OTC medications amounts to a tax increase on consumers and discourages them from using medicines for prevention, treatment and the relief of symptoms," said Bart Valdez, general manager of Ceridian Benefits Services. "Likewise, capping or curtailing the tax savings provided through FSAs will only makes it more difficult for working families to pay for their ever-rising out-of-pocket medical costs." Ceridian is taking part in the ongoing discussions around these issues and has joined forces with prominent law groups and others throughout the industry to oppose these measures. To gin up the grassroots effort, Valdez, on behalf of Ceridian Benefit Services, was quoted recently in Roll Call, the newspaper of Capitol Hill, regarding a two-page letter Ceridian sent to its customers informing them of the Congressional activity on FSAs. "We urge you to contact members of Congress and ask them to preserve the tax-saving advantages of Health Care FSAs," Valdez said in the article. Comprehensive health care reform legislation will not likely be carved into stone any time in the near future. Even if legislation is passed in October, as President Obama wants to make happen, it's likely many of the changes will take time to be implemented, even years. As this year's open enrollment approaches, employees should be encouraged to take full advantage of today's FSAs and other tax-deferred plans, including HSAs and HRAs. Employers also can increase the odds of achieving high-quality, cost-effective health care by encouraging employees to make the most of their organization's health and wellness programs. Learn more about Ceridian's FSAs and wellness programs. |
|
|
Contact Ceridian Request Sales InformationCustomer Service Careers at Ceridian Media Inquiries Related Sites
|
Solutions Payroll Processing & Tax Services Payroll, Tax and W2 Processing, Payment and Submission Options, Paycards, Wage Garnishment, Check Printing, Time Tracking, Compliance Employee Benefits Administration Benefits Outsourcing, Consumer-Directed Health Care, COBRA/HIPAA, Commuter Administration Time and Attendance, Labor Scheduling, Shift Trading, Employee Self-service, Labor Analytics Corporate Wellness & Employee Assistance Performance Management, Training, Workplace Violence Prevention, Risk Management |
Industry Solutions Financial ServicesGovernment Manufacturing Multinational Professional Services Retail |
Stay Connected
|
|||||||||||||||||||||
|
© 2012 Ceridian Corporation. All Rights Reserved. Terms & Conditions | Privacy | Site Map |
||||||||||||||||||||||||
Global Human Resources, Payroll, Benefits & Payment Solutions
