I n structuring work-life and employee- assistance program benefits, employ- ers should consider that almost half of working caregivers identify emotional issues as their main cause of stress. In a recent survey by ComPsych, 46% of respondents said that dealing with emotional issues is the largest cause of stress, while others cited financial and legal concerns (26%), providing day-to-day assistance (20%), and spend- ing time on the phone or in person with the relative (8%). “These findings show the need for offering a combination of elder care support through work-life services alongside an EAP program,” said Richard Chaifetz, chairman of ComPsych. “This integrated approach helps resolve the full array of employee issues related to elder care, from stress and relationship problems to care refer- rals to financial and legal concerns.” Meanwhile, a recent survey from SeniorBridge Family, a New York-based elder care service provider, shows that 30% of working caregivers believe that elder care responsibilities strain their job performance and marriage; 41% of caregivers worry six or more times per week about the well-being of the per- son for whom they care. Working Caregivers Carry Emotional Burden New insurance sales made to U.S. workers at their places of employment rose 7% to just more than $4.3 billion in 2003, the first time in six years that the worksite employee benefits industry failed to show less than double- digit growth, according to a report by Eastbridge Consulting Group. Among voluntary bene- fits, life insurance led with about 25% of sales, up 11% from 2002. Voluntary term life sales accounted for about 54% of that volume. Disability insurance, which last year was first in worksite sales for the first time, dropped back to second place with 23% of sales. Sales of both short- and long-term disability prod- ucts still gained more than 5% over 2002. The highest growth in the worksite mar- ket was for hospital indemnity and supple- mental medical plans, which rose 55% over 2002 to capture 7% of voluntary worksite benefit sales, according to Eastbridge. It was the sec- ond straight year of strong growth for hospital and supplemental medical pol- icies, which grew 33% in 2002. Cancer/critical ill- ness and dental policies showed slight decreases over 2002, while long- term care insurance fell by 6%, to around 2% of worksite sales. Eastbridge based its findings on data from 55 worksite-marketing carriers, which it estimates account for almost 90% of total worksite sales. What’s Working in Workplace Benefits?
Advances in vision care, especially laser surgery, are likely to spur continued employee interest in vision ben- efits. The latest innovation is wavefront LASIK, a system that allows eye surgeons to cus- tomize the LASIK procedure for each patient. The procedure might be especially attractive to employees who rely heavily on their vision, operate in smoky environments, or feel uncomfortable with contact lenses and glasses. One program that provides LASIK for Navy and Marine Corps person- nel compared the results obtained through conventional LASIK and wavefront LASIK. About 97% of 34 patients using wavefront LASIK achieved 20/20 vision or better, com- pared to 88% of 908 patients using conventional LASIK. Likewise, 85% of patients using wavefront LASIK had 20/16 vision six months after the surgery, compared with 69% of patients using conventional LASIK. According to a study by the Society for Human Resource Management, about 71% of employ- ers provided vision insurance for employees this year, up from 63% in 2000. To add vision care to your volun- tary benefits, or to enhance your cur- rent vision plan, give us a call. We can review your current program and perhaps suggest new options. W hat a difference a decade makes! Eighty-six percent of employer-provided health plans covered a full range of con- traceptive choices in 2002, com- pared with 28% in 1993, accord- ing to a study by the Alan Guttmacher Institute. The study, published in the insti- tute’s journal, Perspectives on Sexual and Reproductive Health, estimates that 30% to 40% of the increase was directly tied to state mandates. It found that about 90% of plans in states with man- dates provide the five leading pre- scription contraceptives, while only about half of plans in non- mandate states provide such cov- erage. More than 200 health care insurers were surveyed for the study. Since 1998, when Maryland passed the nation’s first law requiring employer health plans to cover contraceptives if they offer prescription drug benefits, 20 states have passed similar legis- lation. If you’d like to enrich your firm’s health benefits to cover contraceptives, or to learn more about how companies are includ- ing this benefit, let us know. We can review the types of cover- age that would best suit your firm and your workforce. Birth Control Coverage Increases If you’re considering adding long- term care (LTC) insurance to your benefit package, you’re not alone. Although the number of U.S. long- term care carriers shrank in 2002, the carriers still in the market sold more policies, according to America’s Health Insurance Plans (AHIP). Researchers at the Washington-based trade group found that only 104 insurers were selling private LTC insurance in the U.S. in 2002, down from 127 in 2001. But the remaining carriers sold 901,000 policies, up from 732,000 policies in 2001. Revenue from new sales of indi- vidual policies increased from $1 billion to $1.2 billion, and LTC insurers generated more than $6.1 billion in premium revenue from policies already in force. Sales of new employer-sponsored LTC pro- grams climbed to 899, from 820. Although larger employers were still more likely to offer LTC programs than smaller employers, 55% of the 5,670 employers that had LTC pro- grams in 2002 employed 100 or fewer workers. For more information on long- term care insurance and how to add it to your benefit program, contact us. We can assess the value of LTC to your employee base and help you select coverage that suits your work- force’s needs. LTC Policy Sales on the Rise Vision Care Gets Boost from Medical Science
COPYRIGHT ©2004. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is under- stood that the publishers are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert advice is required, the services of a competent professional should be sought. Where will the benefit market be in the next 10 years? Bigger and better, if the American Benefits Council (ABC) gets its way. The ABC wants to improve the employ- ee benefits system by meeting nine goals by 2014: 1. Raise financial literacy. Virtually all households will have access to some form of investment education, and nearly 75% will have calculated the amount of retirement savings they will need to maintain their standard of living. 2. Increase the share of workers in workplace retirement plans. Some 96 million private sector employees will participate in workplace retire- ment plans. 3. Raise retirement savings. The gross personal savings rate, which covers saving for all purposes, will reach 15% of disposable income. 4. Make health coverage more affordable. Health care costs will return to an annual rate of increase in the single-digit range that more closely tracks the overall increase in the gross domestic product. 5. Increase the quality of health care services. At least half of Americans will enroll in a health plan design that provides user- friendly comparative information, and the majority of employees will have an option to enroll in such a plan. 6. Increase the number of people with health care coverage. Nearly 243 million American workers will have some form of health insurance. 7. Make retiree health and long- term care accessible and affordable. All individuals and employers will have access to new, integrated vehicles supported by tax prefer- ences such as those currently avail- able for the health care needs of active employees. 8. Modernize Medicare. Medicare will provide all retirees and long- term disabled individuals with more comprehensive coverage, affordable private health plan choices, and health services delivered with an emphasis on quality and efficiency. 9. Boost broad-based opportuni- ties for employees to own stock. There will be a 50% increase in the number of employees who receive stock in broad-based stock option plans, stock purchase plans, and employee-restricted stock plans. T he U.S. Labor Department (DOL) has launched a cam- paign through the Employee Benefits Security Administration to educate employers and employee benefit plan service providers about their fiduciary responsibilities. In 2003, the department recov- ered $1.4 billion for employee pension and health benefit pro- grams. “Strong fiduciary oversight and protecting workers’ benefits is our highest priority,” said U.S. Secretary of Labor Elaine Chao in a speech announcing the program in June. “Getting it right, howev- er, can be challenging [for employ- ers]. This is particularly true for small and medium-sized business- es who have limited time, resources and access to profession- al help with benefit programs.” The campaign, “Getting It Right — Know Your Fiduciary Respon- sibilities,” includes educational materials and a series of free nationwide seminars. The pro- gram emphasizes the obligation of plan sponsors and other fiduci- aries to: •  Understand the terms of their plans. •  Select and monitor service providers carefully. •  Make timely contributions to fund benefits. •  Avoid prohibited transactions. •  Make timely disclosures to workers and their beneficiaries and reports to the government. Educational materials on under- standing retirement plan fees and selecting an auditor also are available. All materials are avail- able through the campaign’s dedi- cated Web page at www.dol.gov/ ebsa/fiduciaryeducation.html. For more information, call (866) 444-EBSA (3272). The DOL is partnering in the campaign with the Society for Human Resource Management, the U.S. Chamber of Commerce, the American Institute of Certified Public Accountants, the National Federation of Independent Businesses, and the Small Business Administration. To find out more about this pro- gram and your responsibilities as your firm’s pension and 401(k) fiduciary, contact us. We can review your potential liabilities and how to limit them in today’s litigious environment. DOL Launches Fiduciary Teach-In Employee Benefits Get Nine-Point Rescue Plan
Thank you for your referrals. If you’re pleased with us, spread the word! We will be happy to give the same great service to all of your friends and business associates. I n light of recent investigations into mutual fund industry practices, many employers are casting a skeptical eye on the total cost of their 401(k) plans. That’s the word in a Hewitt Associates survey of 140 employers with 1.9 million participating employees. Sixty percent of employers said that they’ve reduced, or are planning to reduce, investment management fees. Such fees can comprise as much as 80% of a 401(k) plan’s total cost and are usually the largest part of the total plan cost. They’re also the most manageable and predictable costs to reduce. This is because employers usually have a number of funds to select from that meet their 401(k) plan needs. Many employers (60%) offer low-cost institutional funds as a way to reduce 401(k) plan costs. Nearly one-third of firms with both defined benefit and defined contribution plans use the same investment manager for both their pension and 401(k) plans to save costs. Still, 49% of companies haven’t attempted to evaluate their 401(k) plan’s total cost. For a review, give us a call. Keeping the Lid on 401(k) Plan Fees

 

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