| There is no doubt about it, the current system is no | | | | - Higher productivity. |
| longer working-at least its not working for everyone. | | | | Wellness programs at work don't have to be complex |
| According to the Employee Benefits Research | | | | or all-inclusive, but they should promote general health |
| Institute, while there is a general, overall stability in the | | | | and exercise and address issues that have proven to |
| system of employer-sponsored health insurance, with | | | | have a negative effect on employee health and |
| large employers not yet willing to relinquish their role in | | | | productivity such as smoking, obesity, stress, |
| the system; the percentage of small businesses with | | | | substance abuse, and preventable diseases such as |
| fewer than 200 employees that offer health coverage | | | | the flu and other illnesses that can be warded-off with |
| dropped in the last seven years, going from 68% in | | | | a vaccination. |
| 2000 to 59% in 2007. | | | | Go Shopping |
| The effects of high healthcare costs go far beyond | | | | Yes, as elementary as it sounds, the advice your |
| insurance premiums. In fact, impossibly high health | | | | mother gave you about always shopping around |
| insurance costs can be disastrous. A 2005 Health | | | | applies here. Find the best deal you can and work |
| Affairs study entitled MarketWatch: Illness And Injury | | | | from there. Start with the Internet, ask around and |
| As Contributors To Bankruptcy, demonstrated a | | | | consult your local independent insurance agent. |
| connection between the loss of health insurance and | | | | Join the CrowdOne of the best ways to lower |
| the rise in medical bankruptcy. The researchers | | | | premiums is to join a group health insurance plan. |
| concluded that there are four major problems with the | | | | Essentially, the way it works is the bigger the group, |
| financial safety net for American families confronting | | | | the lower the individual premiums. Depending on its size, |
| illness: | | | | your business may be large enough to form a group |
| - First, even brief lapses in insurance coverage may be | | | | by itself. If not-or if your group is too small to trigger |
| ruinous and should not be viewed as benign. While | | | | any cost savings-you can partner with other |
| forty-five million Americans are uninsured at any point | | | | businesses to increase the size of your group. As long |
| in time, many more experience spells without | | | | as you are partnering with others in your own state, |
| coverage. We found little evidence that such gaps | | | | there shouldn't be a problem. |
| were voluntary. Only a handful of medical debtors with | | | | Saving for a Healthy Future |
| a gap in coverage had chosen to forgo insurance | | | | One of the most popular alternatives today is the |
| because they had not perceived a need for it; the | | | | health savings account. These are tax-exempt |
| overwhelming majority had found coverage | | | | accounts that are used to pay for certain medical |
| unaffordable or effectively unavailable. The privations | | | | expenses. Both contributions to the account and |
| suffered by many debtors-going without food, | | | | withdrawals are tax-free-that goes for both employee |
| telephone service, electricity, and health care-lend | | | | and employer-and individuals can claim tax deductions |
| credence to claims that coverage was unaffordable | | | | on their 1040 forms. By using them, you can reduce |
| and believe the common perception that bankruptcy is | | | | your small business health insurance costs while giving |
| an "easy way out." | | | | your employees a nice tax break. What's more, these |
| - Second, many health insurance policies prove to be | | | | accounts can accrue interest and are completely |
| too skimpy in the face of serious illness. We doubt that | | | | portable. |
| such underinsurance reflects families' preference for | | | | To qualify to establish a health savings account, you |
| risk; few Americans have more than one or two | | | | must already have a health insurance plan with a high |
| health insurance options. Many insured families are | | | | deductible in place and available to your employees. |
| bankrupted by medical expenses well below the | | | | According to the U.S. Office of Personnel |
| "catastrophic" thresholds of high-deductible plans that | | | | Management, a high-deductible health insurance plan |
| are increasingly popular with employers. Indeed, even | | | | has a minimum annual deductible of $1,100 for the |
| the most comprehensive plan available to us through | | | | insured and $2,200 for the insured and their family and |
| Harvard University leaves faculty at risk for | | | | a maximum annual out of pocket limit of $5,600 for the |
| out-of-pocket expenses as large as those reported by | | | | insured and $11,200 for the insured and their family. |
| our medical debtors. | | | | Those who benefit the most from health savings |
| - Third, even good employment-based coverage | | | | accounts are those who are in good health and who |
| sometimes fails to protect families, because illness | | | | do not regularly see doctors. However, for those who |
| may lead to job loss and the consequent loss of | | | | have more regular or in-depth medical needs, they can |
| coverage. Lost jobs, of course, also leave families | | | | be supplemented with other, more targeted insurance |
| without health coverage when they are at their | | | | options. |
| financially most vulnerable. | | | | Cutting Costs by Cutting CoverageWhen all else has |
| - Finally, illness often leads to financial catastrophe | | | | failed, cutting coverage may be necessary. This does |
| through loss of income, as well as high medical bills. | | | | not necessarily have to mean a wholesale cutting of |
| Hence, disability insurance and paid sick leave are also | | | | benefits, though that is usually what the phrase "cutting |
| critical to financial survival of a serious illness. | | | | coverage" implies and doing that will certainly cut health |
| In light of this situation, where a lapse in healthcare | | | | insurance costs for your company. It can also mean |
| coverage can have catastrophic effects, what can | | | | shifting the cost burden from you, the employer to |
| you, as the small business employer, do to protect | | | | your employees. One thing is for sure-and this is why I |
| your employees' access to affordable healthcare | | | | save this for a last resort-is that this will be a very |
| without risking bankruptcy yourself? | | | | unpopular thing with your employees. |
| Be Proactively Pro-HealthHow much of the illness and | | | | Be sensitive to the needs of your employees and see |
| injury that people suffer is preventable? As much as | | | | what areas of the healthcare benefit they need most. |
| 70% of it. Surprised? According to a study by Health | | | | If you can cut around those areas, that will minimize |
| Affairs magazine, the U.S. ranks dead last out of 19 | | | | the impact of the cuts on your people. Doing this may |
| industrialized nations when it comes to reducing | | | | also give you an idea of how to maximize your |
| preventable deaths in patients younger than 75. You | | | | coverage while minimizing, as much as possible, the |
| would think that Americans, with our bottom line | | | | cost. |
| business orientation, would have taken to the idea of | | | | The Bottom Line |
| wellness programs. After all, those companies that | | | | There are a number of individual things you can do to |
| have gotten onto the wellness bandwagon have | | | | reduce the cost of healthcare benefits, but you should |
| reported: | | | | also consider a combination approach with a wellness |
| - A reduction in health care benefit use and health care | | | | program as well as one or more of the cost-cutting |
| costs. | | | | alternatives. If you manage this right, deal with the issue |
| - Lower rates of absenteeism. | | | | of health on a number of levels rather than just one, |
| - Reduced injuries and worker's compensation/disability | | | | your employees will be happier and healthier because |
| claims. | | | | of it and all the more productive as a result. |
| - Increased morale and loyalty. | | | | |