Perspective

The subheadline of a recent article in the McKinsey Quarterly caught my attention, "Most companies treat benefits as a cost of doing business. They should see them instead as a competitive weapon."

The article, by the elite consulting shop McKinsey and Company provides an excellent perspective on benefits as a business tool. In fact, the authors unveiled a stunningly frank notion, "companies aren’t scrutinizing benefits as closely as they do other investments."

In fact, McKinsey takes a comprehensive and more active approach recommending employers tailor an investment in benefits to meet the needs and preferences of employees.

Furthermore, McKinsey charges that Executives consider thoughtfully a benefits strategy that encompasses clearly identified ROI objectives related to benefits. Potential objectives include: productivity, well-being of employees, talent management, community perceptions, union relations, and costs.

Finally, the article discusses the need to take a multi-year approach to benefits planning and implementation. The article states, "Most companies, follow a piecemeal yearly “keep up with the Joneses” approach that has the effect of shifting compensation from the more flexible salary and wages to the less flexible benefits, and as a result it is harder for employers to reward individual employees for their performance differentially."

To read the full article, click here.

Employers Responsibility in Health Care

Most Americans with insurance and benefit plans get them through their employers. As such, employers share a significant responsibility for driving health care reform. A recent Employee Benefit Advisor article details that 64% of employers favor a continuance of employer-based benefits. Simultaneously, 71% of participating employers say the system needs a major overhaul. For the full article, click here.


These statistics are refreshing to hear. Because employers play such a critical role in health care, any discussion about reform must involve employers. In regard to reform, 62% of employee benefits professionals consider consumerism the driving force to improve benefit offerings and cut costs. This is great news as consumerism gains momentum in the employee benefits arena.

Pampered At The...Dentist?

Insurance carriers today are experimenting with the inclusion of consumer friendly features. When included in benefit plan, these features encourage and reward employee participation. Insurers aim to drive responsible behavior, with the goal of reducing long-term exposure. Of course, healthier employees win as well.

Ironically, medical care providers are taking a similar approach. Dental spa's are popping up all across the country. In fact, a recent article in Employee Benefit Advisor touches on the early successes of this trend. Click here for the article.

The concept of the dental spa is to create an environment in which patients can feel comfortable. Therefore, more patients will seek regular treatment. However, these dental spas really seem to be after 1 thing: Cash paying patients. With a focus on cosmetic services, these offices participate in a limited number (if any) insurance networks.

Concluding commentary: Both sides of the equation (providers and insurers) are testing their hand at healthcare v2.0. The outcomes however are yet to be determined.

Being a Better Benefits Consumer

At the National Business Coalition on Health's annual conference, one of the most significant topics of conversation was the need for employers to be better about their benefits purchases.

Intel Chairman Craig Barrett was quoted as saying, "The only way health care is going to change is if people who pay the bill tell the industry to change." How true this is.

The problem however lies in the reality that businesses exist to make available their products and services to the marketplace. Benefits are not a critical function, therefore most small businesses have a responsible party for benefits...but as one of the myriad job responsibilities not the sole function.

With nearly half of the $2.4 trillion dollar annual spend on health care being paid by employers, employers need to avail themselves to new and better options.

Employee Benefit Advisor magazine covered the conference, to read the article click here.

Health Insurance Changes In A New Administration

A recent Wall Street Journal article discusses likely health care changes under an Obama administration. For a full version of the article, click here. The article points to the long-held Democratic pillar of improving access to health insurance and decreasing the numbers of uninsured Americans. Potential increases in publicly funded health insurance are likely to offset cuts to private Medicaid. Aetna, Cigna and United HealthCare are all mentioned as having taken proactive steps to increase their portfolio of state administered Medicaid business.

Unfortunately the article takes no risks and does not address employer-sponsored benefit plans. This is an area of great uncertainty as both candidates proffered proposals that would significantly impact the private sector. As the new Administration takes office in January look for health care to play an important role after the financial crisis is addressed.

Healthcare And The Family Budget

Financial and economic uncertainty yields to undesired consequences. A recent article from Business Insurance Magazine addresses one such consequence here. The assertion that individuals under greater financial stress would pass on receiving routine preventative and diagnostic care is, I think a real concern. Consumer spending is largely not predicated on need, rather on emotion. As a result, the BI article here makes for an interesting...or perhaps infuriating read.

President-Elect Obama & Health Care Reform

Just days after the presidential election results, conversation has begun regarding the fulfillment of ambitious campaign promises. Healthcare reform will undoubtedly receive major attention.

Linked here is an article highlighting Obama's pre-election Healthcare agenda.

Consumer-Driven HealthCare Benefits & Challenges

Consumer-driven healthcare is beginning to gain traction amongst employers. These innovative programs provide easy to use tools for employees to more effectively self-manage their benefits, health and overall welfare.

As these programs penetrate the marketplace, employees are reacting with mixed response. A recent CNN article illustrates the struggle. Click here for the article.