S&S
Benefits.....Opinion, Hearsay & News Review
A MetLife Benefit trends study
says the top three benefits objectives remain the same as last year. 1)
Controlling costs.2) Retaining employees. 3) Increasing employee productivity.
Of surveyed employers, 45% offer some form of wellness program.
A Fidelity study of HSA
account holders found the following patterns: 36% are spenders of more than 90%
of their contributions. 40% use between 10% and 90% of their accounts. 24% use
less than 10%. 95% carryover some balance and the average contribution was
$2,620.
House Republicans want to
probe the 37 million member AARP for supporting PPACA (Paying Plenty for All
Covered Americans{thanks to Ron for that little twist on an acronym!}). AARP is
expected to make $1 Billion over 10 years due to the disappearance of Med
Advantage plans as part of PPACA. AARP’s 2009 licensing fees totaled $657
Million for the Medigap plans they offer that will take the place of Med
Advantage Plans.
The Washington Examiner has
discovered the bailout package in Obamacare for unions, state public employees
and large corporations that we have discussed here previously. The Early Retiree
Reinsurance Program has paid the UAW $207 Million. Other large recipients are
AT&T ($140M), Public Employees of Ohio ($70M), Government Motors ($19M),
CALPERS ($58M). The $5 billion fund was supposed to last until 2014 and is being
closed, since the money is almost used up.
The ruling that Obamacare is
unconstitutional by Florida Judge Vinson for 26 states is being appealed and
arguments will be heard June 8th in Atlanta by the 11th
Circuit Court of Appeals. In the meantime, the Supreme Court has turned down
Virginia’s request for an early hearing on Obamacare. In the meantime, the
suffering goes on….
Some things to think about for
group LTD plans: 100% Employer funded disability plans means the benefits are
taxable to the employee. Many group plans don’t protect variable compensation
for employees who depend on commissions or bonus income. High earning executives
can be maxed out so that if disabled, they may not receive 60% of their
earnings.
If you wish to be added or removed from the distribution of this
newsletter, please email jseiler@ssbenefits.net
In a brief moment of sanity,
Obama signed the repeal of the 1099 Obamacare requirement. The annoying and
expensive requirement of Obamacare was to have business’ file 1099 tax forms
for every vendor selling the business more than $600 in goods or services. Also
repealed was the voucher program that employers were supposed to offer to all
employees under 400% of the poverty level with contributions between 8% and 9.8%
of household adjusted gross income. Two brief moments in 2 ½ years.
The S&P Healthcare
Economic Composite Index indicates the average per capita cost of healthcare
services increased by 6.19% over the twelve months ending February 2011.
Wells Fargo Insurance Services
surveyed 60 insurance companies and found that claim costs were increasing by
10% for PPOs and Rx costs were increasing by 8.7%.
Aetna has announced the
acquisition of Prodigy Health Group which owns the nation’s largest TPA (Meritain
Health) and Scrip World PBM along with American Health medical management. Aetna
hopes to use the platforms to not only grow its self-funded business, but also
offer services for Accountable Care Organizations (ACO’s) that are envisioned
by Obamacare.
Hospital mergers continue
around the country and in Chicago. Alexian Brothers will be acquired by
Ascension Health of St. Louis. Sherman Hospital which recently built a huge new
facility in Elgin, IL is in talks with Advocate. Loyola has signed a deal to
join Trinity Health out of Michigan and Provena Health and Resurrection Health
are doing due diligence on a proposed merger. We don’t expect these mergers to
do anything more than drive up costs, just like ACO’s are more likely to keep
costs up by reducing competition.
