January 31, 2012
Moms, Pops and Chains Tackle Medical Insurance Increases
Recent stories, one from Massachusetts and another from Texas, point out some ways that independents and chains are looking to promote the health and wellness of employees without any ill effects on bottom line performance.
In the Bay State, independent merchants are looking to purchase group insurance through the Retailers Association of Massachusetts.
"We’re hoping that by bringing together a large group of people, a diverse group, that we’ll be able to get insurance at a rate that’s equivalent to what our large competitors are paying," Eric Michelson, owner of Michelson’s Shoes in Lexington, MA told the Boston Herald.
Supporters of cooperative programs such as those being developed in Massachusetts say that the mere size of such plans will result in lower prices to employers and employees.
"We don’t know yet what the savings will be," Tom O’Rourke, president of the Massachusetts Association of Chambers of Commerce, told the Herald, "but we know that any savings are better than [what] we have now.
In Texas, H-E-B recently announced the opening of the H-E-B Partner Health Center, which will provide employees and dependents, a variety of healthcare services with fees as low as $10 for common ailments.
The center will provide a variety of educational and cooking classes to help H-E-B’s employees live healthier lives.
"This Center is part of a comprehensive program to improve the health of our employees and their families through access to high quality and efficient healthcare," Craig Boyan, president of H-E-B, said in a statement published in the San Antonio Express-News. "As the largest private employer in the state of Texas, we have a unique opportunity to help those who want to make a change for themselves and their families."
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Recent Discussions
Discussion Questions
Discussion Questions: What do you think of the different approaches to improving retail employee healthcare touched on in this article? Are there other companies, inside or out of retail, that have impressed you with their approaches to providing coverage for their employees?
Poll
Any program that offers increased benefits and/or lower prices for employee health care is welcome. Helping employees stay well directly benefits retailers through decreased sick days. Employees save money, which makes them feel better towards their employers. It seems like a win/win.
I have tried to get my workers to quit smoking. Some have but the others puff away on their breaks. In an aging population, the prices of health care will continue to rise, and it will put some small businesses in danger of closing. You just can not pass on increases anymore to customers, as the scorched earth shopping pattern is in full swing, with this lovely economy right now. Everyone wants a deal, but we can’t catch a break on rising health care costs, and unless I employ a whole bunch of 20 somethings, my rates will continue to go up.
And the bottom line is, there is not a thing I can do about it.
The best program for employers holding healthcare costs down is to eliminate the connection between health insurance and employment. Nowhere in the world is there a connection between employment and basic health insurance.
This illogical, convoluted system makes small companies less competitive to large companies. It discourages start-ups. It makes U.S. companies less competitive to their global competition. And while the payments are not to the government, the reality is that the employer expense is in fact a tax bigger than anything they are paying the government.
The highest risk gets the highest rates. This is the math. Small and medium sized businesses get the highest rates because they are perceived as the the highest risk due to having very low if any government health and safety testing. Add to this higher individual administrative maintenance costs and you push the numbers out further. So far, third party support offerings capture most of the savings for themselves, leaving most workers without adequate coverage by most measurement tools.
This seems to be a tremendous opportunity for banks and investment firms that do not have to add to the sell price to stave off losses from the crash. And with fiscally responsible executive leadership implanted and maintained at the top, these same firms can create a very large source of long-term revenue streams.
Some Chambers of Commerce have been offering group health insurance to their small businesses. This is a smart idea.
Of course, we’re tiptoeing around the PC implications of Obama Care here. Instead, I recommend dancing on its grave. O.C. is the impetus that’s forcing employers to hunt for healthcare alternatives and, it seems, they’re doing a pretty darn good job if the Butt Company is any example. Some of them are not waiting around for the repeal of O.C., but are instead doing what made both them and the Marine Corps. successful: Improvise, Adapt, and Overcome.
Of the two stories, the H-E-B is likely the most important (although there is considerable significance to the Massachusetts story) because the Texas chain’s program provides for improving the health of employees as well as addressing sickness by paying for doctors, tests and hospitals. The ultimate solution to the healthcare crisis is a healthier population due to better eating, timely preventive care, exercise and a healthy lifestyle. This, and probably only this, will alleviate the strains on our current system. The H-E-B Partner Health Center fosters healthy living and is a good example of one of the more appealing healthcare solutions for the future.
The significance of the Massachusetts story is somewhat different, but still very powerful. Insurance is all about spreading risk. That retailers in the Bay State had to fight and change a state law to be able to purchase insurance from cooperatives – and thus spread the risk and lower costs — is a sad commentary on the insurance industry. Health insurance exchanges and cooperatives such as the two in Massachusetts are one of the few positive developments in the health insurance landscape.
When I look at these too approaches my initial thought was the “failure” of the stimulus package. Governor Randell recognized the big mistake that was made by not giving the portion of the stimulus that was from tax cuts as checks in the mail. It was probably less expensive to merely reduce the tax table, but no one really appreciated the break on taxes.
From an employee perspective, I think the H-E-B approach makes much more sense. We know that many health issues evolve over time and that changes in behavior can have a significant impact. Forming a cooperative to lower insurance costs does not really get the employees involved in their own health care. Although the cost benefits may be more clearly identified in Massachusetts, I think the long term benefit to the company and the employees will come from the H-E-B approach.
I applaud these independents forming an association to lower costs. It is not new. But it is something smaller employers can and should be doing to lower medical costs for the employees.
The co-op approach may have some benefits, however, they too are limited by the constraints of law. H-E-B’s approach, while potentially possible for them, is impractical or impossible for Mom and Pops and even most chains or regional chains.
Real competition in health insurance nationally would have been a great benefit to all, not just employers. Instead, insurance companies and employers are cranking up their rates, spinning their wheels trying to figure out what is necessary to implement Obamacare, and wasting substantial amounts of money. The promise was rates would go down. Instead, they are skyrocketing at even faster rates than ever before.
The pending Supreme Court decision in July could change everything — or not. In the meantime, millions are being wasted trying to anticipate and plan for something that might not even happen.
Retailers that are impressive at handling and providing health care coverage? Costco. Retailers that are unimpressive? Walmart.
Surprisingly, no one has mentioned that this entire mess created by the most partisan effort in history is the biggest factor crushing any potential job creation. Any employer, retailer or not, with any good sense has all jobs on hold until a decision comes in July.
Companies that encourage a healthy lifestyle are using some innovative approaches to reduce the expense of healthcare for both the company and the employee.
For example, my company has several great programs to encourage healthy lifestyles, including having the employee log their physical activity daily and offer a significant health insurance premium rebate after completing the employee’s goals for physical exercise.
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Any program that offers increased benefits and/or lower prices for employee health care is welcome. Helping employees stay well directly benefits retailers through decreased sick days. Employees save money, which makes them feel better towards their employers. It seems like a win/win.
I have tried to get my workers to quit smoking. Some have but the others puff away on their breaks. In an aging population, the prices of health care will continue to rise, and it will put some small businesses in danger of closing. You just can not pass on increases anymore to customers, as the scorched earth shopping pattern is in full swing, with this lovely economy right now. Everyone wants a deal, but we can’t catch a break on rising health care costs, and unless I employ a whole bunch of 20 somethings, my rates will continue to go up.
And the bottom line is, there is not a thing I can do about it.
The best program for employers holding healthcare costs down is to eliminate the connection between health insurance and employment. Nowhere in the world is there a connection between employment and basic health insurance.
This illogical, convoluted system makes small companies less competitive to large companies. It discourages start-ups. It makes U.S. companies less competitive to their global competition. And while the payments are not to the government, the reality is that the employer expense is in fact a tax bigger than anything they are paying the government.
The highest risk gets the highest rates. This is the math. Small and medium sized businesses get the highest rates because they are perceived as the the highest risk due to having very low if any government health and safety testing. Add to this higher individual administrative maintenance costs and you push the numbers out further. So far, third party support offerings capture most of the savings for themselves, leaving most workers without adequate coverage by most measurement tools.
This seems to be a tremendous opportunity for banks and investment firms that do not have to add to the sell price to stave off losses from the crash. And with fiscally responsible executive leadership implanted and maintained at the top, these same firms can create a very large source of long-term revenue streams.
Some Chambers of Commerce have been offering group health insurance to their small businesses. This is a smart idea.
Of course, we’re tiptoeing around the PC implications of Obama Care here. Instead, I recommend dancing on its grave. O.C. is the impetus that’s forcing employers to hunt for healthcare alternatives and, it seems, they’re doing a pretty darn good job if the Butt Company is any example. Some of them are not waiting around for the repeal of O.C., but are instead doing what made both them and the Marine Corps. successful: Improvise, Adapt, and Overcome.
Of the two stories, the H-E-B is likely the most important (although there is considerable significance to the Massachusetts story) because the Texas chain’s program provides for improving the health of employees as well as addressing sickness by paying for doctors, tests and hospitals. The ultimate solution to the healthcare crisis is a healthier population due to better eating, timely preventive care, exercise and a healthy lifestyle. This, and probably only this, will alleviate the strains on our current system. The H-E-B Partner Health Center fosters healthy living and is a good example of one of the more appealing healthcare solutions for the future.
The significance of the Massachusetts story is somewhat different, but still very powerful. Insurance is all about spreading risk. That retailers in the Bay State had to fight and change a state law to be able to purchase insurance from cooperatives – and thus spread the risk and lower costs — is a sad commentary on the insurance industry. Health insurance exchanges and cooperatives such as the two in Massachusetts are one of the few positive developments in the health insurance landscape.
When I look at these too approaches my initial thought was the “failure” of the stimulus package. Governor Randell recognized the big mistake that was made by not giving the portion of the stimulus that was from tax cuts as checks in the mail. It was probably less expensive to merely reduce the tax table, but no one really appreciated the break on taxes.
From an employee perspective, I think the H-E-B approach makes much more sense. We know that many health issues evolve over time and that changes in behavior can have a significant impact. Forming a cooperative to lower insurance costs does not really get the employees involved in their own health care. Although the cost benefits may be more clearly identified in Massachusetts, I think the long term benefit to the company and the employees will come from the H-E-B approach.
I applaud these independents forming an association to lower costs. It is not new. But it is something smaller employers can and should be doing to lower medical costs for the employees.
The co-op approach may have some benefits, however, they too are limited by the constraints of law. H-E-B’s approach, while potentially possible for them, is impractical or impossible for Mom and Pops and even most chains or regional chains.
Real competition in health insurance nationally would have been a great benefit to all, not just employers. Instead, insurance companies and employers are cranking up their rates, spinning their wheels trying to figure out what is necessary to implement Obamacare, and wasting substantial amounts of money. The promise was rates would go down. Instead, they are skyrocketing at even faster rates than ever before.
The pending Supreme Court decision in July could change everything — or not. In the meantime, millions are being wasted trying to anticipate and plan for something that might not even happen.
Retailers that are impressive at handling and providing health care coverage? Costco. Retailers that are unimpressive? Walmart.
Surprisingly, no one has mentioned that this entire mess created by the most partisan effort in history is the biggest factor crushing any potential job creation. Any employer, retailer or not, with any good sense has all jobs on hold until a decision comes in July.
Companies that encourage a healthy lifestyle are using some innovative approaches to reduce the expense of healthcare for both the company and the employee.
For example, my company has several great programs to encourage healthy lifestyles, including having the employee log their physical activity daily and offer a significant health insurance premium rebate after completing the employee’s goals for physical exercise.