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WASHINGTON — Don’t have the slightest clue what your health insurance covers?
The Obama administration says that’s going to change, starting this year. Officials announced Thursday that private health plans will have to provide consumers with a user-friendly summary of what’s covered, along with key cost details such as copays and deductibles.
Just six pages long. And no fine print.
Officials are calling the summaries a “nutrition label for health care,” trying to capitalize on the name recognition of those information panels found on packaged foods at the supermarket. Consumer groups say the health care version isn’t perfect, but it’s a start.
For example, the summaries won’t include premiums. Administration officials said they ran into logistical problems trying to do that, and that premiums will be easily available anyway to consumers, either from their employer or from a health plan directly.
“These documents will allow consumers to compare plans on an apples-to-apples basis,” said Medicare chief Marilyn Tavenner, who is also overseeing implementation of President Barack Obama’s health care law. If an insurance plan offers substandard coverage in some respect, they won’t be able to hide it in dozens of pages of text, she added.
The new summaries are required under the health care law, and most consumers will start seeing them this fall during open enrollment. The requirement takes effect Sept. 23 and applies to all private insurance, including employer coverage and plans purchased individually, affecting about 150 million Americans.
Although the health system overhaul itself continues to divide the public, a major poll last year found that 84 percent of Americans support the provision requiring insurance summaries. These summaries could prove particularly important for people buying coverage directly from an insurer. From now on, they will have a standard format for comparing plans.
Many employers currently give such information to their workers in the health plan summaries they provide during open enrollment. But the federal comparison goes further. It requires something new — so-called “coverage examples” that give a ballpark estimate of the cost for a typical individual for two common health conditions: normal childbirth and managing diabetes.
The preliminary version of the regulations also called for an example focusing on breast cancer treatment. But Health and Human Services officials said that proved too complicated, since there are different approaches to treatment.
“We didn’t take this off because it happens to be more expensive,” said Steve Larsen, head of the Center for Consumer Information and Insurance Oversight. “It just needed more work.”
In the future, up to six such coverage examples may be required, he said.
Consumer representatives, insurers and employer groups are poring over the fine print to see how the administration balanced concerns about providing full disclosure while keeping compliance costs affordable for businesses.
The administration appears to have tried to take both sides into consideration.
For example, large employers had asked that the requirement be phased in over a longer period for them. Instead, they will have to comply this fall, in most cases for coverage that starts Jan. 1, 2013.
Insurers and employers had complained that providing paper copies of the summaries would be a huge new cost. The administration will allow them to comply by providing an online version, but consumers must be told that they can receive a paper copy promptly upon request.
In an election year, the administration is sensitive to criticism of government overreach through regulations.
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Online:
Template for health plan comparisons: http://tinyurl.com/7ang6gu
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
GEORGETOWN — With a significant increase in the elderly population of Sussex County expected by 2020, the need for long-term care services will also grow.
According to Delaware Health and Social Services Division of Services for Aging and Adults with Physical Disabilities, the size of the population over age 60 began to spike dramatically around 2005 and will continue to expand steadily for the next 20 years. By 2030, Delaware is projected to have the ninth highest proportion of people over the age of 65 in the country.
Bill Love, director of DSAAPD, said the increase can be attributed to the baby boomer population and migration of retirees to the state, especially Sussex County.
“Delaware definitely needs to prepare for the growing age of the population,” he said. “The growth rate for the older population is definitely significant in Sussex County as well as statewide.”
The town of Millsboro will consider a change to its zoning to allow for assisted living facilities. The proposed amendment would allow people who don’t need the amount of care a nursing home provides the ability to stay close to home, Mayor Bob Bryan said.
“We see those needs rising,” said Town Manager Faye Lingo. “The facilities that do exist have waiting lists.”
Brandywine Assisted Living at Fenwick Island opened three years ago, just eight years after the Brandywine facility in Rehoboth Beach opened its doors. Now, the Rehoboth building is at capacity and Brandywine Fenwick is making its way there.
The Fenwick location recently expanded its dementia neighborhood from 13 rooms to 25, replacing rooms originally intended for other purposes, and it’s nearly at capacity in every program besides assisted living, despite having opened in 2008.
In the last year alone, the Fenwick facility has increased from 54 residents to 78.
“The reason for the need in our area outside of the population influx is just the fact we provide such a remarkable quality of life for people,” said Heidi McNeeley, director of community relations. “We have people here that could do perfectly fine on their own, but they don’t want to live by themselves anymore.”
People are also becoming more educated about assisted living than they were in the past, she said.
Methodist Manor House in Seaford is a Continuing Care Retirement Community, which provides independent living, assisted living and nursing home care. Michael Smith, corporate director of public relations for ACTS Retirement-Life Communities, Manor House’s parent company, said as people learn more the misperception usually changes.
Life-communities keep seniors active and interacting with others while also offering the peace of mind that medical care is available if needed.
“They provide the lifestyle the seniors want and the security that they need,” Smith said.
» Staff Writer Ethan Rothstein contributed to this report.
acunningh@dmg.gannett.com
Many small businesses with limited staff use the open enrollment period as the one and only time they discuss benefits with employees. This activity, though necessary, can prove to be overwhelming for the staff to comprehend large amounts of benefits information all at once. Small businesses seeking more effective ways to support employees should implement a year-round benefits communication and education approach instead of limited, intense periods of information overload or otherwise infrequent communication. Doing so can help businesses provide employees with retainable information and make processes such as open enrollment smoother and more effective.
Impact on Retention
Improving benefits communication efforts can have critical business results for smaller companies. To help understand a few revealing workplace realities, the2011 Aflac WorkForces Report study found that when it comes to making benefits decisions, a mere 8 percent of workers agree that they are fully engaged in making those decisions, a sentiment their employers share. Some 63 percent of companies agree that workers need to be more engaged, and just half feel their employees take full advantage of the benefits they’re offered.
By proactively encouraging worker engagement when it comes to making benefits decisions, employers can help workers be better prepared and protected against an accident or illness, resulting in significant financial implications for both themselves and their employers.
When evaluating workplace benefits communication at small companies, 39 percent of workers agree they would be less likely to leave their jobs if they were well-informed about their benefits. The turnover cost alone is an incentive for employers to make changes in how and how often their organizations share benefits information.
Small businesses must acknowledge the possibility that communication needs improvement. For example, almost half (46 percent) of employees at small companies say their HR departments communicate too little about employee benefit plans, and just over half (52 percent) of HR decision-makers at small businesses believe they communicate very or extremely effectively with employees.
Reap significant rewards by developing more-effective benefits communications, including healthier, more-protected and more-engaged employees. Four best practices include:
1. Being a Valuable Resource
Without real information, employees often turn to less-than-reliable sources for insight and guidance. The majority of workers (62 percent) get their insurance advice/information from colleagues, friends and family. In fact, employees at small companies are the least likely to get their information/advice about employee benefits from company HR professionals (39 percent).
When employees don’t know better, they don’t do better in terms of adequately protecting their income and well-being, leaving many workers underinsured and vulnerable to the financial ramifications of an unexpected health event. Over time, unexpected health events can impact the productivity of a small business.
2. Using Surveys
Electronic communications have made it easier than ever to survey workers at minimal cost. Unfortunately, little more than half (52 percent) of organizations conduct surveys that increase their understanding of employee satisfaction with benefit offerings. Even fewer—just 43 percent—survey employee understanding of benefits communication.
By taking the time to understand the preferences and needs of workers, employers can increase employee satisfaction with benefits packages and help provide the peace of mind that comes from knowing their employees have adequate protection. Additionally, employers can use these surveys to identify unaddressed health insurance needs, enabling HR decision-makers to better address benefits communication needs and find ways to make benefits information more robust and accessible.
3. Helping Eliminate Common Benefits Mistakes
Roughly 77 percent of workers have admitted to making mistakes about benefits coverage during their open enrollment process, leaving many employees feeling negatively at the end of the year about the process, including being stressed, confused or regretful. A closer look reveals that nearly half of workers (47 percent) say they have made mistakes or have regrets, such as putting too little in their flexible spending account (FSA), or not electing available benefits coverage like voluntary, dental or vision; or chose benefits they didn’t need or chose the wrong level of coverage.
The brevity of annual benefits decisions requires a comprehensive, year-long education and communication program. Best practices include diversifying materials to encompass print, Web, email, and face-to-face meetings; hosting multiple in-person meetings throughout the year; and including spouses in the decision-making.
4. Consider Retaining a Benefits Consultant or Broker
Giving employees the opportunity to speak directly to a benefits advisor or a representative from a brokerage or insurance carrier can be incredibly effective in terms of education. In fact, 50 percent of workers at small companies agree they’d be more informed about benefits if they sat with a consultant or broker during enrollment.
Keeping up with complicated, ever-changing regulations is increasingly difficult, especially for small businesses. Partnering with brokers or benefits consultants can help companies bolster their insurance benefits with little impact on the bottom line. Brokers and benefits consultants can also advise and assist in developing effective communication strategies and enrollment processes.
According to Aflac’s study, companies that use brokers or benefits consultants are likely to offer more robust benefits packages than their competitors, believe their benefits packages are more competitive than those of industry peers, and communicate more often about their organizations’ benefits.
Conclusion
Developing effective benefits communications is difficult, particularly when it comes to educating workers about their insurance options. However, using reinforced, year-round communication, small business HR decision-makers can make information sharing simpler for employees, enabling them to make better choices for their families, and generating stronger retention and greater appreciation for their total compensation packages.
Benefits Package Photo via Shutterstock
About the Author
 Thomas R. Giddens is Senior Vice President, Director of Sales, at Aflac. He began his career with the company in 1983 as assistant vice president in the marketing department before leaving headquarters for the field, where he excelled for more than 20 years. Prior, Tom was a regional sales coordinator in Atlanta and consistently exceeded goals, earning the number one spot for regional sales coordinator four times and a promotion to state sales coordinator.
What to consider as a potential caregiver.
As more and more people find themselves in a caretaking role with respect to their aging parents, they often find themselves completely unprepared. Men and women in their 40s, 50s, and 60s who have successfully managed their careers, their children, and every other aspect of their lives may be caught off guard by suddenly having to learn everything they can about an entirely new realm – often under time pressure and great emotional stress.
In addition to the psychological demands of coping with an aging parent, the family has to deal with financial considerations, as well. Many adult children are astonished to learn that nursing homes cost upwards of $9,000 a month. They are even more surprised that Medicare doesn’t cover this cost unless the elderly individual was transferred to a nursing home following a hospitalization. Even then, Medicare may only pay for 20 to 100 days, and only if the individual will be receiving rehabilitative care, meaning he or she continues to improve.
But what about aging individuals who need custodial care – in other words, those who become residents of a nursing home because of the level of care they need? The stark reality is that the family is required become a private payer, meaning it covers all costs, until the individual becomes qualified for Medicaid.
The Role of Medicaid
While Medicaid is currently the number one payer for long-term care, qualifying for it is difficult. The individual’s total assets must be valued below a few thousand dollars. In addition, there is a five-year look-back period, meaning the government reviews the individual’s finances for the past five years to make sure he or she didn’t gift money to children in order to qualify for Medicaid more quickly. While there are no actual fines for gifting, there is a penalty in the sense that Medicaid simply won’t pay for long-term care until the individual qualifies according to its formula.
Basically, for approximately every $7,000 gifted during that five-year look-back period, that’s one more month Medicaid payments will be delayed. This even includes tuition payments a grandparent may have made for a grandchild’s education.
Financing Long-Term Care
There are several good ways of financing long-term care that avoid depleting the family’s financial resources. They include using an existing life insurance policy, using long-term care insurance, and getting a reverse mortgage.
Life Insurance Policy. One option that’s not particularly well known but which is becoming increasingly useful is for the family to convert an existing life insurance policy into a long-term care benefit – in other words, an asset that is used to pay for home health care, assisted living, or a nursing home.
Many life insurance policy holders are only familiar with two options: surrendering the policy for its cash value or, if they can’t or don’t want to continue making payments, letting it lapse and losing all the money they’ve already paid in. Yet policy holders have another option that in many cases is the answer to the question of how to pay for long-term care: policy holders who are 61 or older, or who have a medical condition that is chronic or terminal, can use their policy to pay for the care they need.
The advantages are that there is no waiting period, since the conversion process only takes about three weeks. Once the policy has been converted, the family stops making premium payments. Instead, a third party organization makes monthly payments directly to the long-term facility or the family gets a cash payout to use for long-term care.
While the principle is simple, the best way to use a life-insurance policy to pay for long-term care is to work with a senior care consultant who has experience and expertise in working with insurance companies. “Converting a life-insurance policy can be done quickly and effortlessly,” says Howard Chernin, Managing Director of Elder Care Financial Solutions in Hackensack, New Jersey. “Suddenly finding yourself the caretaker for someone you love is extremely stressful. Our goal is helping families get the financing they need, leaving them to instead focus on the emotional demands of taking care of a parent.”
Long-Term Care Insurance. Another possible solution to the dilemma of how to pay for long-term care is the long-term care insurance market. This is a good option for some people, especially those who are healthy and can afford it. It’s much easier to buy it in your 50s than in your 70s. And when the policy that’s purchased has inflation protection, it’s a good tool for preserving the family’s assets. Of course, buying long-term care insurance requires planning far in advance.
To encourage individuals to purchase long-term care insurance, some states have developed incentives. New Jersey’s Long-Term Care Insurance Partnership Program allows policy-holders to shelter from Medicaid the amount of money that’s equal to the amount of the policy. In other words, someone who holds a $250,000 long-term care insurance policy is permitted to shelter $250,000 in cash when applying for Medicaid.
Reverse Mortgage. A third option is a reverse mortgage which allows a homeowner to withdraw equity from his home. The homeowner is not required to repay the mortgage, either the principal or the interest, until the house is sold or the borrower passes away.
There are advantages to taking out a reverse mortgage. For example, the borrower’s credit rating is not an issue. However, there are several disadvantages, as well. When the borrower dies, the house, which serves as collateral, must be sold to repay the mortgage. Reverse mortgages also tend to have larger origination costs than most other mortgages, and because those costs become part of the original loan balance, interest accrues on them. Still, for many people the home is their primary asset and being able to use the equity to finance home health care, for example, is a terrific benefit.
Other Things to Know
In addition to becoming familiar with options for financing long-term care, there are a few other things the children of aging parents should know.
For one, it is critical to obtain Power of Attorney from an aging parent early on. Something as simple as writing a check for the electric bill while a parent is in the hospital becomes impossible without it.
Another important thing to know is that an aging individual can gift his or her house to an adult child, without a penalty from Medicaid, if that adult child has resided in the home for two years preceding institutionalization. The presumption is that the adult child was caring for the parent and therefore delaying the need for institutional care. This is an excellent way to preserve a major asset.
As parents age, it’s important for their children to prepare themselves in every way possible – not only emotionally, but also by consulting an elder care attorney and learning about all their options. Planning ahead and becoming knowledgeable are the most important tools for coping with what is invariably an extremely difficult and demanding time.
About John Zucker-
(This article written by By John A. Zucker, Attorney, Rose & Zucker, LLC)
Mr. Zucker is an experienced Elder Law attorney and general law practitioner. Prior to joining Rose & Zucker, LLC in 2003, Mr. Zucker was a legal consultant at Hill & Knowlton, Inc. specializing in crisis and litigation communications. From 1997 to 2000, he served as Senior Advisor to the National Chairman of the Anti-Defamation League. From 1994 to 1997, he served as a legislative aide to Congressman Tom Lantos in Washington, D.C.
Mr. Zucker received his Juris Doctor in 1991, from the George Washington University School of Law. He earned his Bachelor of Arts degree from Cornell University in 1988.
Mr. Zucker is a member of the New Jersey State Bar Association, National Academy of Elder Law Attorneys and the Hudson County Bar Association.
Over the years, I’ve advised many of my clients on the importance of life insurance. You’d think everyone would understand the need for life insurance in the event a wage earner or family member dies. Yet LIMRA estimates 41% of U.S. adults — 95 million people — have no life insurance at all.1 And 43% of those with coverage believe they need additional life insurance.2 These statistics tell me we still have a lot of work to do in helping our clients understand the need for life insurance and how to adequately protect themselves. That’s where good benefits communication comes into play.
Employers clearly feel an information gap exists among their workers when it comes to life insurance.3 In fact, only 41% of HR professionals say their employees understand the need for life protection very well. Improving benefits communication efforts at the policyholder level can reap strong rewards, helping clients who don’t have life insurance understand the valuable need for this coverage.
Good communication can also help clients who don’t have enough coverage determine the right amount of life insurance for them and their families. LIMRA says 44% of those who say they need life insurance haven’t bought because they don’t know how much to buy.
While many policyholders struggle to figure out how much life insurance they need, many of those with existing coverage simply don’t understand the important features of the policies they own. I find it valuable to emphasize these 10 commonly overlooked features of life insurance plans with policyholders when communicating with them about their benefits:
- Waiver of premium. This feature pays the premium of a policy if a serious illness or injury causes the policyholder to become disabled.
- Accelerated death benefit. This feature allows policyholders to receive cash advances against the death benefit of their policies if they’re diagnosed with a terminal illness. Many people with this benefit use the money to help pay for treatment and other expenses when they have only a short time to live.
- Guaranteed purchase option. With this feature, policyholders can purchase coverage at designated future dates or life events without proving they’re in good health.
- Long-term care riders. Some life products include this option, which allows individuals to use the benefits of their policies to pay for long-term care in exchange for a reduced life benefit.
- Spouse or child term riders. Life policies with this feature allow policyholders to purchase term life insurance for their spouses or dependent children, up to age 26. This option can be a more affordable way to purchase coverage for those who can’t afford separate policies.
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- Cash value plans. This type of policy pays out upon a policyholder’s death and also accumulates value during their lifetime. Individuals can use the cash value as a fund from which they can borrow and use to pay the policy premiums later.
- Mortgage protection. Some term life plans are designed to provide mortgage protection for homeowners, typically paying a decreasing benefit that corresponds to the outstanding balance of the mortgage.
- Cash withdrawals and loans. Many universal and whole life policies allow policyholders to withdraw or borrow money, using the cash value of the policy as collateral. Interest rates tend to be relatively low. Individuals can also use the cash value of their life policies to pay their premiums if they need or want to stop paying premiums for a period of time. Policyholders must pay back the loan, or your beneficiaries will receive a reduced death benefit.
- Survivor support services. Some life policies offer services that provide objective financial and legal assistance to beneficiaries.
- Employee assistance programs. This feature makes resources available to policyholders when they have problems that can affect their personal and professional lives. Resources are usually free and help address issues such as substance abuse, stress, marital problems, legal concerns and major life events.
Advantages of Voluntary
LIMRA research shows that 57% of people who are under-insured prefer to buy life insurance face to face. And 18% of them prefer to purchase at the workplace. Voluntary life insurance can be an important part of a company benefits package and can help meet the needs of employers and employees. This coverage can be sold as a complement to company-provided life insurance or as a standalone offering. Because it’s typically employee-paid, voluntary benefits allow employers to expand their benefits packages at little to no additional cost. Some other features of voluntary coverage include:
- Portability. With individual policies, the employee, not the employer, owns the policy, which means workers can keep their policies if they leave their jobs.
- Simplified underwriting. Both guaranteed issue (no health questions for underwriting) and simplified issue (minimal health questions for underwriting) are available, if participation and eligibility guidelines are met.
- Variety of life insurance plans. Employees now have choices in plans to meet their individual needs when it comes to protecting their families and building cash value.
Voluntary life coverage, when offered in conjunction with one-to-one benefits counseling sessions, can be an especially effective combination in an employee benefits plan. In fact, almost 60% of employers believe one-to-one benefits counseling sessions can strongly improve employees’ understanding of their benefits and their coverage needs. And 55% of employers rely solely on this type of benefits communication and education method. Companies that work with insurers to improve benefits education can boost participation in their programs, which helps ensure employees have the coverage they need to protect their families and their lifestyles.
Helen Rodriguez-Burton is a district general agent for the Amarillo, Texas, sales district of Colonial Life & Accident Insurance Company. She can be reached at (806) 356-7839.
Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through the workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. For more information, visit www.coloniallife.com.
FOOTNOTES:
- LIMRA, “Facts About Life,” 2011.
- Retzloff, Cheryl, “Trillion Dollar Baby — Growing Up,” LIMRA, 2011.
- Colonial Life, Life Insurance and Disability Insurance Survey, October 2011.
NEW YORK – Workforce loyalty is a significant concern for all employers, but it takes on special urgency for small business employers whose key contributors perform a variety of indispensable functions. While the economic outlook for businesses shows some sign of improvement, MetLife’s 9th Annual Study of Employee Benefits Trends reveals that businesses with fewer than 500 employees may face a new challenge: employee retention. With over 40 percent growth of US businesses owned by Asians according to the latest US census data, meeting employee needs through smart benefits planning becomes an increasingly important topic for Asian-American business owners.
The MetLife study found that in 2010, only 49 percent of Asian-American employees reported feeling a very strong sense of loyalty toward their employer. In fact, 35 percent of Asian-American employees surveyed would like to work for a different employer within the next year. In contrast, small business employers’ perceptions of that loyalty remained essentially unchanged over the last few years with 54 percent currently believing that their employees feel a strong sense of loyalty to the company.
“Given the cost of replacing key talent who often perform various valuable functions, it’s critical for small business employers to leverage their benefits program as a retention tool,” says NAME, TITLE of MetLife. “Research shows that employees who are more satisfied with their benefits are more likely to feel loyal to their employer. The good news is that there are several cost-conscious strategies that small business employers can consider.”
Employers should think about the following three steps to ensure their benefits programs are designed as strategically as they could be:
Evaluate program’s voluntary benefits
According to the study, 59 percent of Asian-American employees say that non-medical benefits such as dental, disability, life and vision insurance, etc., are a very important consideration in contributing to loyalty. By offering these benefits on a voluntary basis, small business employers can work towards achieving better workforce loyalty without negatively impacting bottom-line costs.
Look for administrative ease and simplicity
Benefits-related tasks can be time-consuming and burdensome. It is imperative that small business employers look for a benefits carrier and broker who can help them streamline many of the administrative functions associated with their plan. Web-based reporting, employer web-portals, and simplified enrollment can lift many of the burdens of plan administration from their shoulders.
Communicate the benefits program effectively: Working with their broker and carrier, small business employers should make every effort to ensure that employees understand the company’s benefits offering, that they know how to use the benefits, and that the benefits address their needs.
To learn more about designing a cost-effective benefits program to help prevent the loss of key employees, please visit www.metlife.com/sbtrends to download a copy of Small Business Benefits: Address Growing Flight Risk with Benefits-Based Strategies and to access a wealth of other related benefits resources. Also visit www.metlife.com or call 1(800)638-5433 to find a local MetLife representative who can provide more information and assist with building a benefits program for businesses.
Can Part-Time Retirement Work?
Retirement doesn’t have to be all-or-nothing. Here’s how to know if a more gradual retirement arrangement could be right for you—and how to make it happen.
By necessity or desire, more and more older Americans, rather than jumping right from a 9-to-5 workday to 24-7 retirement, are choosing to make the transition over time. Fortunately, a good number of employers are obliging. More than two-thirds of all firms are offering valued older workers either part-time or consulting positions, according to one recent nationwide AARP survey of personnel directors.
Michael Mercer, PhD, a human resource consultant in Barrington, Ill., and author of Job Hunting Made Easy, sees the advent of so-called “bridge jobs” as a big win-win. Employers hold onto the brainpower and dependability of older workers. Older workers hold onto jobs they may enjoy and income they may need. So how do you decide if it’s right for you—and make it happen?
Question Your Motives
Retirement isn’t for everyone. If you absolutely love working and it feeds your passion, then moving to retirement too soon could be a recipe for depression, says Mercer. But, if you dread workdays, have pleasurable activities that consume your time, and have a nest egg that will allow you to slow down or fully retire, then go ahead.
Target Your Employer
If you enjoy your job and your workplace but want to start cutting back, then your first course of action should be to find a way to do your present job part-time. “If you can prove that you increase productivity and profits, regardless of your age, you are valuable, and the company will likely bend over backwards to keep you on board,” says Mercer. Highlight any unique skills or knowledge you bring to the table—and how you could train others to carry that knowledge forward.
Tread with Caution
If you ask the boss to go part-time, and you are financially valuable to the firm, the boss will likely accommodate you. But there is some risk in asking, warns Mercer. You may find that you aren’t as valuable to the company as you thought. And, in some cases, merely asking to go part-time might be seen by the boss as a lack of commitment to the job—your request could backfire, and you’ll be pushed to leave. Consider this possibility and calculate what your outside options might be.
Look Beyond the Bend
If you dislike your job, aren’t crazy about your employer, or your employer isn’t crazy about you—or all of the above—then it’s time to look for a different job. Retail outlets, especially those that cater to older customers, love to hire older workers for customer service jobs, and many of these jobs are part-time. You might also consider consulting in whatever field you have expertise. And consider cruising some websites that cater specifically to older workers—such as retirementjobs.com.
“Just don’t quit your full-time job before you land that part-time position,” Mercer advises. It’s a tough job market out there. And employers almost always prefer to hire those already employed.
Of course, if you don’t need money from a job, you might also consider volunteering for a cause that touches your heart. More Articles to Enjoy
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Aviva’s life insurance and annuity products are issued by and all policy benefits are the responsibility of Aviva Life and Annuity Company, West Des Moines, IA and Aviva Life and Annuity Company of New York, Melville, NY. Products not available in all states. In New York, available products are issued by Aviva Life and Annuity Company of New York. Aviva Life and Annuity Company of New York is the only Aviva insurance company referenced above authorized to do business in the state of New York.
Before embarking on health care reform, the people of this country forgot to ask and answer one important question - Should everyone have health care? Let’s see if we can answer that now.
It is human nature to make decisions based on our individual experiences. It can be a challenge, but better decisions can be made by taking a step back to consider the perspective of people facing different circumstances. I want to share with you some different points of view when I ask, “Should everyone have health care?” I will do this with a story similar to what physicians see every day.
Mr. Smith is a young roofer. His throat started hurting a couple of days ago, and since he has no health insurance, he hopes it will go away. The next day he can’t work because his throat pain is extreme and he has a high fever. He can’t go to the doctor’s office because they won’t see him without payment. Mr. Smith lives check to check and gets paid next week. Finally, he can no longer swallow and it is hard to breathe. He is taken to the emergency department and the doctor determines he has a peritonsillar abscess – a tonsil swollen with pus. It is large and has spread widely, so he needs surgery. The abscess is drained in the operating room and he is kept overnight on IV antibiotics. He is discharged home with an expensive antibiotic paid for by generous friends and family.
Mr. Smith begins receiving bills – from the emergency department, the doctors who took care of him, and the hospital. The bills total many thousands of dollars. He can’t pay them. He is hounded by collectors, and his credit is ruined. How much would it have cost to treat Mr. Smith up front, when he first got sick? Maybe $300, including his medications.
So what are the possible views of each person in this story?
Mr. Smith – he was healthy, and never thought he would get sick. His employer didn’t offer insurance, and his $30,000 a year job doesn’t provide enough to pay insurance premiums of $3,000 to $5,000 a year, and cover food and rent. The only option he knew was going to the emergency department.
Emergency department doctor – she is required by law to see and stabilize all patients regardless of the ability to pay. The doctor finds this frustrating, as emergency department physicians are the only physicians who have this requirement and half the patients who come to see her can’t pay. However, she went to medical school because she wants to help people, and there is no reasonable physician that would withhold treatment. Of course, she would certainly be sued if she let him die. She has to call the throat surgeon (ENT) to operate on Mr. Smith, and it is likely that he will be irritated because this patient has no insurance and he won’t get paid either.
ENT doctor – he reluctantly takes call for the emergency department because so many of the patients can’t pay, and most of the emergencies have high liability. Fortunately, the hospital pays him a flat rate to be on call because the hospital is required to have specialty coverage to stay certified.
The public? Anyone paying for health care out of pocket or with insurance is indirectly paying for the care of Mr. Smith. The costs are passed on through higher physician and hospital costs. And how many fundraisers have you seen for people in a medical crisis? When it is our family, friend, or even a neighbor, we help out. However, when there is no relationship, there is little incentive to help. It was a sad day to me when the audience at a recent debate cheered at the comment that we should let an uninsured man die. We are compassionate as individuals and cruel en masse.
If we could provide a safety net of BASIC care for everyone at a reasonable price, should we? Taxpayers already pay $3,660 per person per year in this country for healthcare, it is just inequitably applied. This is in addition to the $4,300 we pay per person each year privately. Japanese taxpayers pay about $2,200 per person annually for health care. If we could provide everyone with BASIC healthcare, we would save billions, improve national productivity, and provide people like Mr. Smith with a safety net to get most common problems covered.
Does the Affordable Care Act address any of this? There is an individual mandate for everyone to have insurance. Since Mr. Smith is at 275% of the federal poverty level, his premiums will be about $2,400 a year, with taxpayers picking up the rest of the estimated $5,000 a year in premiums. Still expensive, and we can do better.
So the question is, if we could provide everyone with BASIC healthcare for $2,200 per year, and still have a private system on top of that, should we do it? Since we are an innovative country, it is possible. I would love for everyone in this country to answer the question. We can then give our leaders a mandate, because it can be done if we want it. And if we don’t want it, we need to decide what we do want and how we will handle situations like Mr. Smith’s. Please share your thoughts with me and share this post with others. I look forward to great discussion. In addition to this blog, you can reach me on Twitter @CarolynMcc or at carolyn.mcclanahan@gmail.com.
By Sandra J. Sunken
Posted November 26, 2011 at 3 p.m.
Long-term care insurance can help protect your assets from being decimated by an extended illness. Deciding whether you need a policy is an important part of your financial planning.
To begin, consider your overall financial picture. If you have enough assets to pay the premiums, but not enough to afford several years of uninsured care, a policy may provide peace of mind.
In general, long-term care policies fall into two categories: qualified and nonqualified. Premiums paid for a qualified policy are deductible as medical expenses. Long-term care policies are available with a variety of options. The policy that best suits your needs will depend on four key variables:
Benefit period. This is the length of time you will receive benefits under the policy. Generally, the shorter the benefit period, the lower the premium.
Daily benefit. This is the maximum benefit paid per day. Check the average rate for care in your area to help you decide the daily benefit you need.
Elimination period. This is the length of time that you will have to pay your own expenses before coverage takes over. Basically equivalent to an insurance deductible, the longer the elimination period, the lower your premiums.
Benefit "triggers." These are the requirements you must meet in order for benefits to begin. As a practical matter, the more "triggers" a policy recognizes, the easier it is to collect benefits.
There are other factors you should consider, such as inflation protection and home care. In addition, you might be able to use alternatives to long-term care insurance, such as a reverse mortgage on your home and your own investments.
Your annual review of your financial plan is the perfect time to consider your need for long-term care insurance. Give your accountant or financial planner a call. They can help you explore your insurance options, as well as the alternatives.
Read more: http://www.vcstar.com/news/2011/nov/26/what-you-need-to-know-about-long-term-care/#ixzz1gYRSMCzZ
- vcstar.com
(ARA) - Aging in America can be physically and financially debilitating. People 65 and older have a 68 percent probability of becoming disabled in a way that will affect at least two activities of daily living, according to the AARP report Beyond 50: A Report to the Nation on Independent Living and Disability. The median national cost for nursing home care is about $77,745 per year, a 2011 Genworth Cost of Care Survey by CareScout (C) revealed.
It's likely that many baby boomers may need long term care services in the next few decades. In fact, the U.S. Department of Health and Human Services and U.S. Department of Labor predicts the number of people in long term care (whether at home or in assisted living or nursing facilities) will double by 2050 to 27 million people.
Not everyone who needs long term care will have the financial resources to pay for it, meaning they will either not receive needed services or will require public assistance to obtain basic levels of care. For many, long term care insurance can be a solution.
What is long term care?
As we age, our ability to take care of ourselves may change. For some people, age and physical disabilities will leave them unable to adequately care for themselves. That's when they could require long term care assistance from others.
Long term care can be achieved in several ways, including:
* In-home care - A person requiring care remains in their own, or a relative's home, where family members or paid, skilled professionals provide assistance and care. In-home care is often the least expensive option for long term care.
* Assisted living - Assisted living facilities allow occupants to live independently while receiving on-site support for daily basics.
* Nursing homes - Nursing homes provide more skilled and intense care, supervision, medication, therapies and rehabilitation for patients with the highest level of needs.
Who needs long term care?
At least 70 percent of people older than 65 will require some long term care, according to the U.S. Department of Health and Human Services National Clearinghouse for Long Term Care Information. Patients may require help as part of the normal aging process, or they may experience a medical crisis - such as stroke, Alzheimer's, rheumatoid arthritis or an automobile accident - that makes long term care necessary.
Long term care may be needed by those who experience an injury or illness that keeps them from being able to handle the activities of daily living, such as eating, bathing, dressing, getting in or out of bed, grooming, or using the restroom.
How can you fund your own or a loved one's long term care?
One of the most compelling concerns about long term care is how a family will pay for it. The time to consider this question is before the need arises. Experts agree that having a plan for how you will pay for long term care can make the transition easier when the time comes and you need to make a decision about it.
Some people assume their children will take care of them in their old age, and support from family is an important part of long term care. But few families may be able to shoulder the entire cost of long term care. Public programs, such as Medicare, can offer some support, but many people over-estimate the funding that will be available to them through these programs. Personal assets such as retirement savings and trust funds can help defray costs, but will only last a limited time - especially if the patient requires nursing home care.
For many families, long term care insurance (LTCi), can be a smart planning decision. LTCi can help with the expenses of home care, nursing home or assisted living facilities, or adult day care. It can help minimize financial risks associated with extended care and help eliminate uncertainty for your family.
You'll need to speak with an LTCi professional to get an accurate quote on the cost of coverage, but generally, a year's premium for long term care insurance costs far less than shouldering the entire cost of a year's worth of long term care for yourself and a loved one. You can learn more about long term care and long term care insurance at websites like www.longtermcare.gov and www.Genworth.com.
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80 is the new 65 when it comes to retirement
By Karin Matz
November 21, 2011
CHICAGO | Wed Nov 16, 2011 4:38pm EST (Reuters) – When it comes to retirement, many middle class Americans said 80 is the new 65 and plan to delay retirement because of worries over money, according to a new survey.
Wells Fargo bank asked 1,500 Americans who earned between $25,000 and $99,999 and ranged in age from 20 into their 70s questions about retirement, savings and Social Security for its seventh annual retirement survey.
Three-fourths of those surveyed said they expect to work in their retirement years. One quarter said they will “need to work until at least age 80″ to live comfortably in retirement.
Of Americans who will work in retirement, “47% said that they are going to continue in the same job or a similar job of similar responsibility,” Joe Ready, Well Fargo’s director of institutional retirement and trust, told Reuters Insider.
“That raises a lot of social and economic implications. Will they have the physical ability to work, the mental capacity? What does that mean for the younger work force in terms of coming through and looking to get ahead?”
Three-fourths of Americans said it is more important to have a specific amount saved before retirement, regardless of age, while only 20% said it is more important to retire at a specific age regardless of savings.
In terms of saving for retirement, 53% of those surveyed said they need to significantly cut back on spending now to save for retirement.
“People are overwhelmed. They’re not saving enough,” Ready said.
On average, Americans have saved only 7% of their desired retirement nest egg, with a median of $25,000 saved versus a median retirement goal of $350,000.
“For several years now, we’ve seen that Americans are undersaving for retirement and a majority do not trust the stock market as a place to invest for retirement,” Ready said.
“We did find a bright spot among middle class Americans — more than three-quarters do not want to retire with mortgage debt. This is an important goal, particularly for younger Americans,” said Laurie Nordquist, director of Wells Fargo institutional retirement and trust.
Eighty-six percent of respondents said it’s important to own their home debt-free by retirement.
On the issue of Social Security, there was an age divide. Those in their 60s expect Social Security to provide 46% of their retirement funding. But more than a quarter of Americans in their 20s and 30s expect no income at all from Social Security during their retirement.
(Editing by Greg McCune)
© 2010 Thomson Reuters. Click for Restrictions.
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Beefing up dental coverage may help lower medical costs
By Christy Yaccarino, GBA, EHBA, HIPAAA
June 1, 2011
When I was a consultant and would present a client with a higher than expected medical renewal – which unfortunately was more the norm than not – one of the first things an employer would do was to consider lowering, or forgoing altogether, its contribution to employees’ dental benefits.
The rationale in doing this was to save employer contribution dollars on dental and be able to use those toward the increase in medical costs, keeping the increase to employees’ medical contributions at a lower rate.
There are a lot of consultants who will suggest you do this – but I was not one of them. I always cautioned employers against this tactic because this strategy could end up having a negative impact on an employer’s medical claims and, in turn, end up raising medical costs more in the future.
Correlation between dental and medical health
Studies have shown that there is a correlation between dental health and medical health.
An oral infection such as a cavity, tooth decay or gum disease can put you at risk for other problems like cardiovascular disease, diabetes, osteoporosis and Alzheimer’s disease. Gum disease in pregnant women has even been linked to lower birth weights and premature births.
Now, consider the impact of changing your dental plan from one with a decent employer contribution to one with a very low employer contribution, or even no employer contribution at all. Doing this means you’re increasing the cost for the employee to have dental coverage. And, at the same time, the employee’s medical contributions are also likely to increase even with the extra money you pick up by not contributing to the dental plan.
As employees look at their benefit options, and see the increased cost of their dental coverage alongside the increased cost in their medical coverage, many are likely to drop dental coverage altogether in order to have less contributions coming out of their paychecks.
These employees may then forgo dental care altogether (now that they don’t have dental coverage), putting them at risk for more serious medical conditions.
Consider the cost impact a heart attack or premature birth claim will have to your plan – much higher than the contribution you would have paid toward that employee’s dental coverage.
Plus, the financial effect of that claim on your next medical renewal will be much higher than simply keeping your dental plan contributions in place.
Benefit budgets everywhere are stretched thin by increases in medical costs, and employers are looking to lower costs. However, rather than skimp on your dental plan, consider using it as a wellness tool to encourage employees to have better oral health, which in turn will lead to better overall health.
Consider even enhancing your contribution to the dental plan to encourage more employees to enroll in the coverage and get regular dental checkups. If nothing else, include 100% preventive care coverage on your dental plan.
In addition, if you have a wellness plan, consider adding an incentive to encourage employees to get routine dental preventive care twice a year.
Contributing Editor Christy Yaccarino, GBA, EHBA, HIPAAA, is a benefits manager for Ambrose Employer Group in New York City. She can be reached at christy.yaccarino@ambrosegroup.com.
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Harvard happiness expert links positive attitude with work success
By Kathleen Koster
September 26, 2011
Predicting an employee’s future success at a company has traditionally stumped experts, and relying on metrics such as IQ level, only tells 25% of the story. What makes up the other 75%, according to Shawn Achor, Harvard researcher and positive psychology expert, is the optimism that your behavior matters, a positive social support system, and whether you view a challenge as a stress or an impetus to improve.Achor inspired the audience at the Employee Benefit News Benefits Forum and Expo in Dallas on Sunday night with his research findings and solutions to ensuring long-term happiness, which ensures that people thrive in their work and family environments.
“In good [economic] times, happiness is a luxury item in a company, but in times of challenge, happiness and optimism become not luxury items, but necessities,” Achor said.
Achor studies companies and schools to determine the greatest predictors of success. He has found that the old way of thinking simply doesn’t cut it.
“The role of traditional psychology is: how do we make you normal? But, normal is merely average … if we study what is merely average, we will remain very average,” explained Achor, author of The Happiness Advantage.
The goal shifts from teaching to and aiming for the average, to moving the average up in an organization. Achor believes this requires changing the way our brain filters the world.
The brain is like a single processor in a computer: it can make a conscious or unconscious decision for happiness. If someone is constantly scanning the world for negatives, then they will have no energy left over for looking for the positive.
“If we’re devoting those resources to scanning the world for the negatives … then our brains literally have no energy left over for scanning the world for things that make us grateful about our current position. If we can change the way in which the brain views the world, what we’ve discovered is not only can we change our levels of happiness, at the same time we can brave every single business and educational outcome for individuals,” he said.
In other words, by changing the way we appreciate happiness, we can improve on all dimensions of intelligence and, because our brains are wirelessly connected to each other through mirrored neurons, we can actually infect others with a positive attitude.
“It’s not necessarily the reality that shapes us, but the lens with which you view reality that shapes your experience of it,” Achor said. Focus on your own lens and “how you can ripple that positivity out through your work, your personality, and your habits to create a more positive work environment, a more positive family and a more positive world.”
Achor explained that “the more negative we are, the less able our brain is to overcome the challenges we actually have, which is why in the midst of challenge, finding a way to raise our happiness and optimism within an organization is of upmost importance not only for a company, but for ourselves as well.”
For example, the positive brain is 31% more productive than when the brain is negative, neutral or stressed.
And a positive outlook can help lower depression rates, lead to superior productivity, make one more resilient, create less burnout, less turnover, and promote greater sales.
“Before we can make any changes in our companies, in ourselves, and in our families, we need to make a mindset change,” Achor concluded.
We’ve trained our brain to think along the lines of: “I’ll be happy as soon as …” Within this paradigm, every time the brain succeeds, it changes the goal post, pushing success — and happiness — farther away.
However, if happiness were on the other side of success, then every celebrity would be happy. We’re putting the cart before horse, he explained, adding that happiness should be the precursor for success, not the result.
In one experiment, Achor trained tax audit mangers to hardwire their brains for happiness. Four months later during the busy tax season, those with the training preformed much higher.
In order to create positive long-term change, Achor advocated the William James theory, in which if someone does a task for 21 days, it becomes a life habit and is now second nature.
Achor gave the audience five ways to improve their happiness quotient if they complete the following simple activities for 21 days in a row.
1. Write three things that you are grateful for. They must be new things that occurred in the last 24 hours and they must be specific. Simply saying that you’re thankful for your health is not sufficient. Go deeper, he said: Why are you thankful for you health? Once you’ve done this for some days in a row, you can scroll through the list when confronted by a negative email and be overwhelmed by the positivity. This makes you much more optimistic, and positively refocuses the brain’s lens.
2. Journal every day. Take two minutes to detail one meaningful event. Because the brain cannot differentiate between reality and visualization, you are effectively reliving the good experience. This shifts the brain from a task-based outlook to a meaning-based one.
3. Exercise. This works not because of the neurochemicals released in the brain, but because it tells your brain that you’re able to be successful. Achor said this is why executives who exercised in the morning are better equipped to deal with their inboxes at 2pm. When they studied people with depression, those that exercised instead of taking anti-depressants, had equal drops in depression, but had 30% less relapse after the initial six months.
4. Meditation helps you single task, which enables your brain to shine like a laser on a challenge, increasing your chances of success. Achor suggested starting with as little as two minutes a day.
5. Send random acts of kindness. Each morning, send an email to one person in your social support network thanking and praising them. Twenty-one days later, your brain appreciates that you have 21 people that you’re connected to. This is extremely beneficial because social support is the greatest predictor of job satisfaction.
Achor admits that many of these notions are common sense. However, common sense does not always lead to common action — information does not always cause transformation.
Ultimately, by accomplishing these five actions, one is transforming a task-motivated brain into a satisfied brain. This matters not only for the individual, but also for those around them. Happiness spreads; it can infect coworkers like an air-borne disease.
“Happiness is actually an advantage. It’s not the opposite of success; it’s the precursor to it. If you can raise levels of happiness and optimism, not only can you raise every business and educational outcome, but we can make this a better world and ripple it out through that mirrored neuron network,” Achor explained.
You can learn more about the science of happiness and how to apply it to your business, by visiting Achor’s website, HappinessAdvantage.com
Many of the millions of people with disabilities may be paying more in taxes than necessary, according to a disability insurance service provider.
Allsup, a nationwide provider of Social Security Disability Insurance representation and Medicare plan selection services, said there are important steps that can help people with disabilities minimize their taxes
“People with disabilities often aren’t aware of tax credits and deductions that could help them save money,” says Paul Gada, a tax attorney and personal financial planning director for the Allsup Disability Life Planning Center, in a statement. “In fact, certain credits are refundable, meaning you can get money back even if you owe no taxes.”
Allsup highlighted some of the tax breaks available to people with disabilities:
1. Know how SSDI and other benefits are taxed.
• Monthly SSDI benefits. Up to 50 percent of SSDI benefits are taxable each year. The amount is determined by adding one-half of your SSDI benefits to all of your other income sources. For 2010, taxes are owed on any amount above $32,000 for couples filing jointly and $25,000 for individuals.
“The average monthly SSDI benefit for 2010 was $1,064, or $12,768 for the year. As a result, many people relying on SSDI will not owe taxes,” Gada says. “However, they still should consider filing a tax return if credits could mean a refund.”
• Lump-sum SSDI benefits. Because it can take years to receive disability benefits, most people initially receive a lump-sum amount, which includes back payments.
Paying taxes on this amount in one year is a mistake and could be financially costly, pushing you into a higher tax bracket. The IRS allows taxes on this lump-sum payment to be spread over previous tax years using the current-year tax return.
This means recipients do not have to go through the time or expense of filing amended returns. However, the calculations are complex, and Gada advises seeking tax assistance.
• Other benefit sources. People with disabilities may rely on additional benefits for income. Generally, workers’ compensation benefits and compensatory damages for injuries aren’t taxed.
Additionally, long-term disability insurance benefits are not included in taxable income if you paid the premiums with after-tax dollars. However, they are taxable and must be included in your income if you paid LTD premiums with pre-tax dollars as part of a cafeteria plan, for example, or your employer paid your premiums.
2. Claim tax credits for which you are eligible.
Tax credits offer one of the most effective ways to lower taxes because they provide a dollar-for-dollar tax reduction or refund. Some important tax credits people with disabilities are commonly eligible for include:
• Earned income tax credit (up to $5,666). The EITC is a refundable credit, meaning that when it is applied—any amount higher than a person’s tax bill can result in a tax refund. To be eligible, you or your spouse had to be employed for part of 2010, earned below $13,460 to $48,362 (depending upon filing status and the number of children claimed) and had investment income of no more than $3,100.
“Many people with disabilities who don’t file a tax return because their income is so low could be losing out on thousands of dollars from the EITC,” says Gada.
• Credit for the disabled (up to $7,500). You are eligible for this credit if you receive taxable disability income from a former employer’s accident, health or pension plan and meet income requirements.
Your 2010 adjusted gross income must be under $17,500 for single filers, under $20,000 for joint filers with one spouse eligible for the credit or under $25,000 for joint filers with both spouses eligible.
• Dependent care credit. If you pay someone to care for a dependent or spouse with physical or mental impairments, you may be able to take a credit of up to 35 percent of day care costs while you are working or looking for work.
3. Use deductions to reduce taxes.
• Increased standard tax deduction. A higher standard tax deduction may be available to you if you are blind or visually impaired.
• Medical deductions. If you itemize, you can deduct medical costs if they exceed 7.5% of your adjusted gross income. Deductible expenses include medical and dental costs, travel expenses for treatment, long-term care insurance, medical insurance premiums and costs for certain equipment for those with visual, hearing and physical disabilities.
If you, your spouse or your child has a chronic illness, costs for attending conferences related to that illness also may be deducted as a medical expense.
• Deduct the costs of seeking SSDI benefits. If you hired a representative to help you get your SSDI benefits and you itemize, you can deduct the fee that you paid your representative when figuring out the taxability of a lump-sum SSDI payment you received.
Cohn writes for Accounting Today, a SourceMedia publication.
By Shana Sweeney
How well do your employees really understand their health plan? Do you know the readability score of the materials you provide them? How much jargon is included in your summary plan descriptions? How do you educate new grads entering the workforce and individuals working in the U.S. for the first time on the intricacies of health insurance? Is it even an employer’s responsibility to improve health literacy?
ERISA says that SPDs should be written in plain English so that the average participant can understand them. But according to a 2004 report by the Institute of Medicine, most employer- provided information about health insurance is too complex. Many employers tend to rely on the SPDs or certificate of coverage that are provided by their insurance carrier. Have you ever read one from cover to cover? They’re often difficult for a benefits professional to understand! Even worse, I’ve periodically gone back to the insurance carrier to request clarification on a specific clause only to find that they are unsure of the meaning.
Health literacy is defined by the U.S. government’s Healthy People initiative as: “The degree to which individuals have the capacity to obtain, process and understand basic health information and services needed to make appropriate health decisions.” Research conducted by the American Medical Association Foundation found that poor health literacy is a stronger predictor of health than any other factor.
Further research showed that an estimated $73 billion is spent each year on medical care due to poor health literacy. And if $73 billion is spent on just care, there is an even high cost associated with lost productivity and absences associated with poor health literacy. In the Institute of Medicine’s report “Health Literacy: A Prescription to End Confusion,” the authors estimate that close to half the population has difficulty understanding and using health information.
This is not that surprising to those of us who answer employee questions on medical coverage. How many times have you explained what a deductible or coinsurance is? How many times have you explained the difference between an HMO and a PPO? Or, even more frequent, how many times have you explained to an unsuspecting employee the difference between the allowed and billed amount for out-of-network care?
The HHS’ National Action Plan to Improve Health Literacy offers some tips for employers to help improve the health literacy of their materials:
1. Involve members of your target audience in the design and testing of communications.
2. Use plain language in the development of all information. The Center for Plain Language (http://centerforplainlanguage.org/) can help provide you with a plain language checklist while you develop your communications.
3. Include specific steps and action words to make it clear what the person needs to do.
4. Provide training, tools and resources for employees to improve their health information-seeking and decision-making skills, particularly to new grads, who may never have had any exposure to making their own health decisions.
5. According to the IOM, health literacy measures more than an individual’s reading skills: It also includes writing, listening, speaking, arithmetic and conceptual knowledge. Make sure to include information that touches on all of these skills.
6. Use sources of information that already exist, such as the CDC Health Literacy website (www.cdc.gov/healthliteracy/) or the Health Education Resource Exchange (http://here.doh.wa.gov/materials-projects), which is a repository of health communications.
The movement toward consumer-directed health plans, which require a high level of health literacy, accompanied by the dual pressures of health care reform and ever-increasing costs, only stress the importance of health literacy.
We are overloaded with information in our daily lives. There are tons of mobile phone applications for health. There are several different personal health record systems. There are tools developed by the insurance carriers.
There is a whole industry of health advocates to help you navigate the health care system. U.S. health care is an incredibly complex system — how much time have your employees lost due to health literacy issues?
Hopefully some of this information can help you develop the business case for why health literacy matters inside your company. There is no place that teaches health literacy, and right now employees simply find out the hard way when they have an issue. We have an obligation as employers to step up and either advocate for health literacy to be taught in schools or else provide our employees with a basic level of health literacy.
Contributing Editor Shana Sweeney — a self-proclaimed geek and political junkie — is a benefits professional at Google. She is an SPHR with degrees in politics and human resources. She has more than a decade of experience working in various industries, including high-tech, utilities, manufacturing and health insurance. She can be reached at calshana@gmail.com.
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Women underestimate their value, don’t buy enough life insurance
By Ruthie Ackerman
May 10, 2011
PrintE-mailReprintsShare | We’ve all heard the statistics: Women still get paid far less than men and women’s work is undervalued by society. But a new survey released by The Penn Mutual Life Insurance Company on Friday reported something we may not have realized: women themselves are undervaluing their own work, with potentially devastating consequences.
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Even in 2011, mothers and single women do more work at home than men and yet don’t put a high enough sticker price on those duties.
When asked in Penn Mutual’s third annual Worth for Women Survey to put a dollar value on the work they do as part of the “second shift,” outside of their jobs, both men and women estimate their value around $25,000 a year. Yet when these same respondents were asked to list the number of hours they spent on each task, men overestimated the value of what they do by nearly 13%, reported Penn Mutual.
Women, on the other hand, underestimated their worth. In fact, when Penn Mutual calculated the actual median value of services, a women’s contribution to the home was $34,256 and men’s was $19,322. In addition, men were 9% more likely to overestimate their contribution by $30,000 or more.
Women, especially those with young children, are the worst offenders when it comes to downplaying their worth: They perceive their worth at $29,000, while there computed worth is $44,913. Fifty-two percent of these women underestimate their worth by at least $10,000, while 36% do so by at least $30,000. (Check out the Worth Calculator, which allows you to measure your actual economic value, including often-overlooked contributions like childcare, budget management and homemaking: www.WorthForWomen.com.)
Although this may sound like just another study telling us women need to ask for more money or be more assertive, the consequences to our futures, and those of our children, are substantial.
“As a life insurance company, we often see evidence that women underestimate their value to their families—with serious or tragic consequences when that work has to be replaced by outsiders after the untimely death of a wife or mother,” said Tracy Marrocco, director of women’s marketing for Penn Mutual, in a press release. “Far too many families fail to account for this value, leaving women uninsured or under-insured. This survey revealed that women own significantly less coverage than men do, with the median individual coverage amount for women being $100,000, as compared to $150,000 for men.”
Women often don’t understand the various life insurance options available, the company reported. For example, the Worth Survey revealed that women believe building cash reserves to borrow from for big expenditures, such college or starting a new business, is critical, but they aren’t aware that permanent life insurance can provide this benefit.
“What’s surprising is how significantly women undervalue the contributions they make to their homes and families—yet this thinking has negative repercussions for women and their loved ones, and undermines their prospects for a secure financial future,” said Marrocco.
The annual study was conducted by Penn Mutual from March 2 to March 17, 2011, and encompassed interviews with a nationally representative sample of women and men ages 25 to 64 across a wide income spectrum, including those with and without life insurance, as well as both married and single parents.
Ackerman writes for Financial Planning, a SourceMedia publication.
Women underestimate their value, don’t buy enough life insurance
By Ruthie Ackerman
May 10, 2011
PrintE-mailReprintsShare | We’ve all heard the statistics: Women still get paid far less than men and women’s work is undervalued by society. But a new survey released by The Penn Mutual Life Insurance Company on Friday reported something we may not have realized: women themselves are undervaluing their own work, with potentially devastating consequences.
Like what you see? Click here to sign up for Employee Benefit News daily newsletter to get the latest news and important insight into trends in benefits management.
Even in 2011, mothers and single women do more work at home than men and yet don’t put a high enough sticker price on those duties.
When asked in Penn Mutual’s third annual Worth for Women Survey to put a dollar value on the work they do as part of the “second shift,” outside of their jobs, both men and women estimate their value around $25,000 a year. Yet when these same respondents were asked to list the number of hours they spent on each task, men overestimated the value of what they do by nearly 13%, reported Penn Mutual.
Women, on the other hand, underestimated their worth. In fact, when Penn Mutual calculated the actual median value of services, a women’s contribution to the home was $34,256 and men’s was $19,322. In addition, men were 9% more likely to overestimate their contribution by $30,000 or more.
Women, especially those with young children, are the worst offenders when it comes to downplaying their worth: They perceive their worth at $29,000, while there computed worth is $44,913. Fifty-two percent of these women underestimate their worth by at least $10,000, while 36% do so by at least $30,000. (Check out the Worth Calculator, which allows you to measure your actual economic value, including often-overlooked contributions like childcare, budget management and homemaking: www.WorthForWomen.com.)
Although this may sound like just another study telling us women need to ask for more money or be more assertive, the consequences to our futures, and those of our children, are substantial.
“As a life insurance company, we often see evidence that women underestimate their value to their families—with serious or tragic consequences when that work has to be replaced by outsiders after the untimely death of a wife or mother,” said Tracy Marrocco, director of women’s marketing for Penn Mutual, in a press release. “Far too many families fail to account for this value, leaving women uninsured or under-insured. This survey revealed that women own significantly less coverage than men do, with the median individual coverage amount for women being $100,000, as compared to $150,000 for men.”
Women often don’t understand the various life insurance options available, the company reported. For example, the Worth Survey revealed that women believe building cash reserves to borrow from for big expenditures, such college or starting a new business, is critical, but they aren’t aware that permanent life insurance can provide this benefit.
“What’s surprising is how significantly women undervalue the contributions they make to their homes and families—yet this thinking has negative repercussions for women and their loved ones, and undermines their prospects for a secure financial future,” said Marrocco.
The annual study was conducted by Penn Mutual from March 2 to March 17, 2011, and encompassed interviews with a nationally representative sample of women and men ages 25 to 64 across a wide income spectrum, including those with and without life insurance, as well as both married and single parents.
Ackerman writes for Financial Planning, a SourceMedia publication.
First in a Series By Rick Greener
Voluntary Benefits have a very important roll to play in filling in the gaps of the employer sponsored group benefits. With the economy still very much uncertain and employers concerns about healthcare reform legislation, employers are reluctant to put more dollars into company paid benefits. Voluntary benefits can complete an employee benefit package, and do it in a way that addresses each employees’ specific benefit needs.
According to the 9th annual “MetLife Annual Study of Employee Benefit Trends” which was released in early 2011, employees put more value on their voluntary benefits than their employers. This is due in part because many of the benefits available on a voluntary basis through an employer are not available as an individual product the employee can purchase on their own outside the workplace. If these products are available, they are usually very expensive and/or not contractually high in quality.
Voluntary benefits have to start with an overall plan. What products are to be offered and in what order they should be presented, need to be considered carefully. When specific benefits should be offered and more importantly how the products are presented to the employees should be the number one priority. All too often, a benefit broker will come into a company and present as many as 6 different products to the employees during a twenty minute enrollment meeting. This just confuses the employees and makes for poor interest and participation.
Employee education and communication are the keys to a successful voluntary benefit program. The employer working with the broker can come up with a program coordinated with company paid benefits that will meet the specific needs of the employees.
In the next blog, we will explore methods for communicating and educating employees about these voluntary benefits. In addition, we will look at which products are most valuable to employees and should be offered first.
Patient safety is one of today’s most pressing health care challenges. Improving health care quality and reducing medical mistakes are of serious concern to doctors, but patients need to do their part, too.
Your role
The most important thing you can do to improve your health care is to take an active role in your care. You can enhance the quality, safety and effectiveness of your health care by asking questions about your care, diagnosis, treatment and any medications prescribed to you.
The answers you get can help you make better health care decisions, receive a higher level of care, reduce medical mistakes and feel better about your overall care.
Tips to get started
These suggestions can help you play an active role in your care during your next doctor visit:
• Don’t be afraid to talk to your doctor and ask questions. Make sure he or she understands your symptoms and concerns, and that you understand his or her instructions.
• Write down any concerns or questions you have prior to the appointment.
• Keep a list of all your current medications, including prescription, over-the-counter and vitamins.
• Take notes during the appointment.
• Bring a family member with you.
• Make sure your doctor knows about any allergies to medicines you have.
• Be involved in every decision about your care and treatment.
Basic questions
During your appointment, be sure you understand everything your doctor tells you. These questions can help you get started:
• What is the test or procedure for?
• How many times have you done this procedure?
• When will I get the results? (If you don’t get the results, do not assume it means the results are fine. Follow up by phone.)
• Why do I need this treatment or prescription?
• Are there any alternatives?
• What are the possible complications?
• Which hospital is best for my needs?
• How do you spell the name of that drug?
• Are there any side effects?
• Will this medicine interact with medicines I’m already taking?
Did You Know…?
Medical errors cause tens of thousands of deaths each year. You can help avoid errors for you and your family by getting more involved in your own health care.
By John Ortman
New research from Metlife spotlights a disconnect between the perceptions of voluntary benefits held by employers and employees. About 52% of employees said they were interested in a wider array of voluntary benefits, but only 43% of employers believed their employees felt that way, says Dr. Ronald S. Leopold, national medical director and vice president, U.S. business, at MetLife.
Leopold unveiled findings from MetLife’s 9th annual “Study of Employee Benefit Trends: A Blueprint for the New Benefits Economy,” at the firm’s National Benefits Symposium in Washington DC March 28.
Employees clearly see the choice, cost and convenience advantages that voluntary benefits offer, Leopold explained. Across the board, employees in all age groups hold favorable views of voluntary benefits:
- 64% of Gen Y (age 21-29), 66% of Gen X (age 30-45), 62% of “younger boomers” (age 45-54) and 66% of “older boomers” (age 55-65) understand that comparable products outside the workplace cost more
- 57% of Gen Y, 66% of Gen X , 59% of younger boomers and 61% of older boomers are more likely to choose benefits that meet their personal needs
- 63% of Gen Y, 67% of Gen X, 64% of younger boomers and 68% of older boomers understand that buying through the workplace is convenient and saves time
Employees are also willing to pay to personalize their benefits, the study revealed. Moreover, having this choice boosts loyalty to the employer, especially for younger workers: 41% of Gen Y workers and 40% of Gen X employees said that a choice of benefits that meet their needs is “extremely important,” along with 30 of younger boomers and 34% of older boomers.
In addition, employee loyalty is driven by retirement benefits (64%), and non-medical benefits such as dental, disability and life insurance (59%), the study found. While concerns about retirement savings are felt in all age groups, younger boomers and Gen X workers are most concerned about the adequacy of their retirement savings.
During the recession and the slow economic recovery, American workers routinely heard the phrase “do more with less,” Leopold noted. But the resulting gains in productivity may have come at the expense of employee loyalty, the MetLife study suggests — only 47% of employees feel a very strong loyalty to their employer, a drop from 59% just three years ago.
Moreover, some employers have an unrealistic sense of employee loyalty. In the fourth quarter of 2010, 51% of surveyed employers report that their workers have very strong loyalty to them. However, 36% of employees say they plan on working for a different employer in the next 12 months.
This erosion of employee loyalty puts employers’ retention efforts at risk as the nation emerges from the recession over the next two years and job mobility returns, says Leopold.
Being “delusional” about employee loyalty may sabotage employers’ efforts to achieve benefits objectives, Leopold believes. “Employers need to look at their benefits offerings differently – through a new holistic lens – in order to maximize their effectiveness as a retention tool for their unique workforce while meeting other business objectives,” he said.
The research confirmed that benefits satisfaction “still strengthens employee loyalty,” Leopold told the gathering. Employees who expressed a high satisfaction level with their benefits were about three times as likely to report feeling loyal to their employers than those who express dissatisfaction with their benefits programs.”
Leopold cited three “megatrends” that will impact employers’ strategic approach to comp and benefits in the future:
- An acceleration of the economic recovery in 2012-2014 — the economy has taken a toll on business, “but what happens when things get better?” he asked.
- A shift in the demographics of the workforce, which “will drive a diversity of mindset of employees about their benefits.”
- Health care reform — the “genie that’s already out of the bottle” in terms of its impact on employers’ benefit strategies.
He offered a list of seven steps employers can take to bolster their employee retention efforts:
1) Understand what drives employee loyalty.
2) Focus more on non-medical benefits — especially voluntary benefits.
3) Take a fresh look at your benefit communications content.
4) Understand the differences in how employees in different age groups value their benefits.
5) Add a financial wellness dimension to their wellness programs.
6) Do more to help younger employees save for retirement.
7) Understand what the coming demographic changes in the workforce, coupled with an accelerated economic recovery and the impact of health care reform, will have on employee’s views of their benefits — and hence, their loyalty to the employer.
Improve your quality of care with these resources
The Affordable Care Act makes many changes to the health care system in an effort to control costs, but that is not its only objective. Health care reform legislation was also designed to improve quality of care for patients.
The U.S. Department of Health and Human Services maintains a website, www.healthcare.gov, with information regarding health care reform. The site includes links to resources to help you compare health care facilities near you based on a number of quality-of-care measures. These tools allow you to find facilities compatible with your medical needs and expectations.
Hospital Compare
Find hospitals near you and compare them based on a number of factors, including processes, outcome of care, surveys of patients’ experiences and more. Plus, filter by particular conditions or procedures to find the hospital that is best for your specific needs.
Nursing Home Compare
This tool provides information for every Medicare and Medicaid-certified nursing home in the country. Find and compare nursing homes based on quality ratings, health inspection results, nursing home staff data and fire safety inspection results. Plus, this site offers additional resources to help you choose the right nursing home or learn more about alternatives to nursing homes.
Home Health Compare
This site allows you to compare home health services such as skilled nursing care, physical therapy, medical social services, home health aide services and more. Find agencies that provide the specific services you need and then compare based on various quality measures such as pain management, treatment and preventive practices.
Dialysis Facility Compare
Here you can access resources regarding chronic kidney disease, dialysis and choosing a dialysis facility. Also, find dialysis facilities near you and compare them based on services provided and quality measures.
Get Started Today
To get started choosing the best facility for your health care needs, visit www.healthcare.gov/compare/index.html and click on the appropriate link.
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