Physical Fitness Equals Fiscal Fitness

Holding down healthcare costs today may mean watching the waistline as well as the bottom line. In an attempt to decrease healthcare expenditures through healthier lifestyles, many forward-thinking employers are offering financial incentives to those who participate in wellness programs.

For example: According to a recent article by Brendan M. Case for Knight Rider Newspapers, one Texas firm, Sabre Holdings, offers a $10 a month discounts on health insurance premiums if an employee participates in the firms' wellness plan- and another $10 if the spouse does, too. The result is that Sabre has held annual healthcare cost increases to about 1 percent, far less than the 9 percent national average.

Find out more about how wellness programs instituted by Benefit Associates' clients can work for your company. Contact your consultant for more information.

Test your COBRA I.Q.

Answer true or false to the questions below.  Find the correct answers listed at the bottom of this newsletter to see your COBRA I.Q. score.

  1. An individual can have both Medicare and COBRA coverage.
  2. After termination, a qualified beneficiary has up to 60 days to elect COBRA.
  3. An employer does not have to offer flexible spending accounts and health reimbursement accounts under COBRA.

Although we recommend outsourcing your COBRA administration due to constant changes in the area of compliance requirements, we would be happy to answer any questions you might have or assist you in resolving any COBRA-related issue.

 How to improve your employees' "health literacy."

Consumer directed healthcare is an idea whose time has come, but with it has come new challenges. For example, how can you make sure employees comprehend the options available to them and make the right choices? Many employers consider low-levels of understanding and a lack of health literacy major obstacles in achieving the goals of consumerism.

Consumers face choices that at once are both extremely complex and extremely emotional. Here are some ways you can help improve health literacy in your company:

  1. Determine the current level of understanding among your employees through a survey or quiz.
  2. Use the results of that survey to help develop specific health-education tools tailored to your employee population.
  3. Make sure you provide both written and verbal information that's clear and easy-to-understand.
  4. Provide one-to-one or group meetings or seminars to allow discussion of issues as they relate to benefits.
  5. To keep them motivated, make sure employees understand how their choices, both of plans and of lifestyle choices, impact them financially.
  6. Keep the dialog going. Your health literacy program should be an on-going part of your employee communication plan.

The team at Benefit Associates is dedicated to helping you develop and implement a health literacy program. Contact us today to develop your next benefit communication campaign.

Answers: 1=True, 2=False; The 60 day election period is actually 60 days from the later of a.) the date the notice was sent or b.) the loss of coverage date., 3=False.