COBRA Survey Results: More Are Eligible, But Fewer Elect Coverage
As more and more employees become eligible for COBRA continuing health coverage due to layoffs, a smaller and smaller percentage of them are actually signing up for it, due to its high cost. That is the finding of a survey this spring by ISCEBS and Spencer's Benefits Reports , a leading research service for employee benefits plan administrators at organizations across the U.S .
The responses for 2009 were notable in that they continued at least one trend started in 2002. More responses than ever viewed the cost of COBRA as too high from the employee's perspective. This concern hardly registered among employers until 2002 but in the last two surveys ranked 1 and 2. Read the press release for additional details. Full survey results are available to Society members.
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Health Care Plans: Impact of the Financial Crisis
As Employers Cut Health Care Costs, Employees Increase Utilization
A recent survey by the International Foundation of Employee Benefit Plans shows the recession is forcing employers to increase cost-sharing approaches. Plan participants are using their benefits—while they still have them.
Survey responses indicate that while few plan sponsors are cutting or considering cutting health care benefits altogether, many are ramping up their cost-sharing approaches.
Plan sponsors aren't the only ones reacting to the recession. Survey respondents are reporting that plan participants, perhaps fearing an impending layoff, are increasing utilization of their benefits.
Even those who are hanging onto their jobs are struggling with health care costs. About one-fifth of survey respondents report plan participants are delaying medical care and skimping on prescription drugs because of financial problems.
The upside of today's climate is a heightened focus on wellness programs. Eighteen percent of the respondents have introduced or are considering introducing wellness initiatives due to the economy.
Society members can download a free copy of this survey through the ISCEBS/International Foundation Bookstore.
Six Months Later: Effects of the Financial Crisis Shake Employers into Action
Follow-Up Survey Shows Employers Altering Retirement Offerings While Employees Struggle To Save
As the financial crisis continues, it appears U.S. employers view the situation as significantly more serious than they did just six months ago. A follow-up survey conducted by the International Foundation of Employee Benefit Plans in May 2009 found that the crisis has forced both defined benefit (DB) plan sponsors and defined contribution (DC) plan sponsors to make changes to their retirement coverage and plan design.
The survey found that the financial crisis has prompted 42% of DB plan sponsors to make changes to their strategic asset allocation—more than double the 20% who reported having changed allocations six months earlier. Of the DB plan sponsors who changed asset allocations as a result of the crisis, the most common changes are increasing fixed income assets (37%), reducing U.S. equity allocations (17%) and increasing alternative fund investments (13%). More results are available here. Society members can access a free copy of the survey from the ISCEBS/International Founcation Bookstore.
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Strategies for Managing Health Plans Through a Challenging Economy - July 9
Group health plan sponsors are facing reduced budgets and downturns in employment, at the same time program costs are continuing to rise. Many plans are also facing increased enrollment of dependents, more former employees and dependents electing COBRA coverage and increased patterns of delaying retirement in the current tough economic times. Now more than ever, plan sponsors need to identify strategies and alternative for better managing the health benefits their plans offer. This session will provide
- Useful strategies and techniques for improving plan management
- Aligning plan design while at the same time helping to contain costs for both the sponsor and the participants.
- Examples of how health plans the presenters work with are coping with the current recession.
Learn More | Register
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Benefits Quarterly
The 2nd Quarter 2009 issue explores voluntary and worksite benefits, as well as different aspects of retirement plans. Browse the executive summaries or read the full issue in Members Only. Members will receive their copy in the mail later this month.
If you are not currently receiving Benefits Quarterly, subscribe now.
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Benefits Quarterly on CD
CD-ROMs with issues of BenefitsQuarterly dating from 1996-2008 are now available. If you requested a copy of this CD on your membership application, the CD will be sent to you. If you would like to get a copy please email the Society and we will be happy to send you one.
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Newsbriefs
The April/May 2009 issue examines the role of ERISA in health care reform, as well as a checklist of issues for a globally mobile workforce, along with a preview of the Symposium and recent chapter activities. Members can read it now in members only, or wait for their copy in the mail. |