Sponsored by Northern Illinois Health Plan |
January 2010 Issue |
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E to E provides information from a business perspective that will educate regional employers about significant healthcare issues to help them make decisions benefiting their organizations and employees. | ||
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ContentsTwo Topics to Tackle Early in 2010 Study Shows Plan Costs Rise Just 5.5% in '09 |
At Northern Illinois Health Plan, we constantly monitor issues that impact our employers and their respective workforces. This month we are reporting on several topics that could affect you. A reminder that NIHP is here to discuss and help you create a healthcare benefits plan that fits your organization. Contact us with any questions. Two Topics to Tackle Early in 2010As employers and benefits managers brace for another hectic year, here are two topics to be on top of in the first quarter of 2010: COBRA extensions and potential GINA violations. So roll up your sleeves and take a few minutes to find out more about these important topics. 1) COBRA Subsidy Gets Extended Last month – specifically on December 19, 2009 – an extension of the COBRA subsidy was enacted by Congress. Though this provision makes some extra work for employers, it also provides significant relief to employees who have lost their jobs. Here is a quick summary of the main changes provided by H.R. 3326:
One challenge for employers, and their COBRA administrators, is the need to calculate overpayments made when they began sending full-premium bills to beneficiaries whose eligibility for the subsidy was to end in December. Sixty-five percent of that bill will either need to be refunded or used to offset future COBRA premium payments. Based on the current economic and political landscape, this complicated scenario will continue to challenge everyone involved in employee benefits. NIHP is here to help you with your questions and provide solutions for your company plan. Further Reading:
An extended subsidy for COBRA health coverage
COBRA subsidy extension complicates benefits administration
DOL plans new and revised notices on COBRA subsidy extension 2) Genetic Information Nondiscrimination Act (GINA) Goes Active GINA, the Genetic Information Nondiscrimination Act, became effective for calendar-year plans on January 1, 2010, making many plan administrators scramble to make sure their HRAs are in compliance. As interpreted in recent regulations, GINA affects HRAs because it prohibits health plans and their insurers from using several practices, such as:
A key issue? GINA includes family medical history in its definition of genetic information – and prohibits health plans from collecting genetic information prior to or in connection with enrollment, or for underwriting purposes. Many employers have asked about family history as part of their wellness programs, and need to review their practices to ensure GINA compliance. Further Reading:
Employer wellness efforts hindered again by GINA restrictions
From COBRA to GINA, challenges abound
Genetic Information Nondiscrimination Act affects how group health plans use health risk assessments Study Shows Plan Costs Rise Just 5.5% in '09Group health care plan costs rose 5.5% in 2009, according to Mercer L.L.C. in New York. This increase is the lowest in more than a decade. Reasons for the lower increases were increased use of consumer-driven, account-based health care plans and health management programs such as those that identify health conditions early to prevent further problems from worsening. Further Reading:
Health care plan costs rise 5.5% in '09: Study
Health insurance premiums rose modestly in 2009
Health outlays slow Mail-order Pharmacies Improve Medication RoutineResearchers from UCLA and Kaiser Permanente’s Division of Research found that patients who obtained their medications through mail-order pharmacies were more likely to take them as prescribed. Patients tested were those with diabetes, high blood pressure and high cholesterol. The study showed that using the mail-order method makes it easier for people to stick with their doctor’s prescribed medication regimen. Further Reading:
Mail-order may help people stick to med regimens
Mail order pharmacy use and adherence to diabetes-related medications
Use of mail-order pharmacies could improve patients' medication adherence A Quick Review of Last Issue's "Quick Poll"In the October 2009 issue of E to E we asked readers, "If you offer FSAs or HSAs, do you offer your employees an FSA or HSA debit card?" Specific survey results are noted in the chart, below.
January Quick Poll – Vote
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