Health Debit Card Offered - Visa, Blue Cross and Blue Shield Will Join Forces
Visa USA and the Blue Cross and Blue Shield Association said Monday that they are teaming up to offer a co-branded debit card to pay for health-related expenses.
The partnership, which marks the first time Visa has joined forces with a major insurance group to offer medical debit cards, is part of a shift in health care to get consumers to assume a greater decision-making and financial role in their medical care.
A growing number of companies are offering medical savings accounts, which allow workers to use pretax funds to pay for certain medical expenses. The Visa co-branded card can be used only with flexible savings accounts or health savings accounts, which are coupled with a high-deductible health plan.
Debit cards offer convenience and help consumers keep track of their medical accounts, said Stacy Pourfallah, senior director of pre-paid health care products for Visa, which is based in San Francisco.
"When I go to my doctor, I can use my Visa card to pay for that visit and I don't have to use another form of payment and then wait to get reimbursed," Pourfallah said. The cards are available immediately to Blue Shield and Blue Cross companies that choose to offer them.
So far, only Blue Cross and Blue Shield companies in four states -- Louisiana, South Carolina, New Jersey and Idaho -- have decided to offer debit cards to their members. The Blue Cross and Blue Shield Association represents 39 companies with 93 million members nationwide.
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San Francisco Chronicle.
Vacations Benefit Both Worker and Boss
If your employees didn't take that long, relaxing, re-energizing vacation this summer, they might be shortchanging themselves and you. And, if you didn't take that vacation either, read on.
Whether you're the employee or the employer, time away from work is critical. Indeed, scientific evidence suggests that vacations, a majority of which are taken during the summer, are good for everyone - no matter on which side of the managerial desk you sit.
Vacations, say researchers, can lift your spirits, improve your health and well-being and, ultimately, allow you to perform better on the job.
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vacations.
To Fight Rising Costs, Hospitals Seek Allies in the Operating Room
It is a war on rising hospital costs, being fought one tiny balloon at a time. And as with most wars, some of the tactics are controversial.
Until recently, some cardiologists at the PinnacleHealth System hospital group in Pennsylvania would inflate a new artery-opening balloon each time they inserted a stent into a patient's clogged arteries. Now, if they can, these doctors will use a single balloon throughout a patient's procedure.
That simple step, which the doctors say poses no additional risk to patients, saves at least a couple of hundred dollars a procedure. And - here lies the controversy - the doctors share in any money they save the hospital. While the new approach gives them a financial incentive to be more cost- conscious, it also fundamentally recasts the traditional arm's-length relationship between a hospital and the doctors who practice there.
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The New York Times.
Employers Weigh In On Wellness Programs
It's a given that potential employees look for adequate medical and dental coverage and well-matched 401K plans.
But lately, according to several Tampa Bay area employers, job candidates are placing more emphasis on another type of benefit when honing their searches: wellness programs.
As corporate America's waistbands grow, employers are stepping up to the plate in an effort to curb absenteeism and add to their employees' overall well-being.
Companies are adding in-house fitness centers and discounted health club memberships as they trade in traditional vending machine fare for low-calorie snacks and a more health-conscious menu at the company cafeteria.
The Fitness Programs and Workplace Stress study conducted by Mark Occhipinti, an American Fitness Professional Associates member, shows employee participation in a fitness program can lead to the improvement of the company image and facilitation of recruitment, increased productivity, better work quality, reduced health care costs and fewer on the job injuries.
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Business Journal.
2006 Indexed Amounts For Health Savings Accounts
The Department of Treasury issued new guidance on October 28, 2005 on the maximum contribution levels, deductibles and out-of-pocket maximum spending limits for high deductible health plans (HDHPs) that must be used in conjunction with health savings accounts (HSAs) in 2006. New amounts for 2006 have been indexed for cost-of-living adjustments for 2006. These are included in Revenue Procedure 200r-70.
New annual contribution levels for HSAs:
- For 2006, the maximum annual HSA contribution for an eligible individual with self-only coverage is $2,700.
- For family coverage, the maximum HSA contribution is $5,450.
- Catch up contribution for an individual who is 55 or older is increased to $700 for 2006.
- Remember, for any individual, the maximum contribution amount is the lesser of the indexed amount or the deductible of the HDHP. Both the HSA contribution and the catch up contribution are pro rated based on the number of months of the year a person is an eligible individual.
New Minimum Deductible Amounts for HSA-compatible HDHPs:
- For 2006, the minimum deductible for single coverage increases to $1,050 for self-only coverage and to $2,100 for family coverage.
- Fiscal year HDHPs that satisfy the requirements for an HSA-compatible HDHP on the first day of its fiscal year may apply that deductible for the entire fiscal year.
New Amounts for Out-of-Pocket Spending on HSA-compatible HDHPs:
- The maximum annual out-of-pocket amount for HDHP self-coverage increased to $5,250 and the maximum annual out-of-pocket amount for HDHP family coverage is $10,500.
To review the Department of Treasury press release, click on: http://www.treas.gov/press/releases/js2996.htm
Almost Half Of Large Employers Will Extend Consumer Driven Health Plans
While many large employers were cautious about adopting consumer-driven health plans (CDHP) this year, 45% will offer them as an option in 2006, Fidelity Investments finds.
Although contribution levels varied, 85% of surveyed employers offering a CDHP said they would provide funding to offset employee costs through a health savings account or health reimbursement arrangement, Fidelity finds. The median funding for HSAs per year is $500 for single coverage and $1,000 for family coverage. For HRAs, the median funding is $750 per year for single coverage and $2,000 for family coverage.
Employers projected considerably lower costs for CDHP family coverage, compared with more traditional health plan offerings, next year. The average CDHP is expected to cost $875 per month, compared with $936 per month for other health plans. However, cost savings for single-coverage CDHPs is expected to be less, with average costs projected at $302 per month, versus $319 per month for other health plans.
"While lower contribution rates may provide good incentive for employees to consider CDHPs, employers should carefully monitor their plan's performance to ensure it is achieving its intended benefits," advises Marc Hallee, senior vice president at Fidelity Human Resource Services.
Fidelity surveyed 86 employers with more than 2,000 employees and analyzed health insurance enrollments of more than 700,000 employees.
Article provided by Benefit News - November 8, 2005.
Two Insurers Make Health Care Prices Visible
Two Midwestern health insurers are laying detailed medical pricing information on the table for patients to inspect and compare, a practice that's relatively uncommon in the industry.
HealthPartners publishes data showing which clinics or hospitals are in the high or low price ranges for X-rays, blood tests, surgeries and other procedures. It also uses patient surveys to rank doctors and hospitals in quality, and then pairs the quality rankings with the cost information to identify providers that might offer the best value for patients.
"We feel it's important for them to see the information that's relevant to them" within a specific region, says Scott Aebischer, senior vice president for customer service. "We've got a lot of work to do [on educating consumers]." The Bloomington, Minn.-based insurer serves 630,000 members.
Likewise, Preferred One tells patients their previous claim costs, general price ranges for various procedures or services, and what providers within a certain ZIP code charge. Eugene Sako, manager of product development, says this helps Preferred One in its negotiations with providers, since they know their patients will see price comparisons.
Preferred One says health care utilization has dropped since it started providing price transparency one year ago. The Golden Valley, Minn.-based insurer has about 180,000 members.
Article provided by Benefit News, November 10, 2005.
Breast Cancer Awareness
Seven ways to lower your risk of breast cancer:
1. Cut the fat. It has been shown that countries with high-fat diets have the highest rate of breast cancer. To lessen the risk, choose foods high in fiber, such as beans, bran, whole grains, fruits, and vegetables such as cabbage, brussels sprouts and broccoli.
2. Maintain a health weight. Obesity may be linked with breast cancer, especially for women over 50.
3. Stay active. One research study found that women who exercised at least four hours a week cut their breast cancer risk by 60%, while those who worked out 1-3 hours a week reduced their risk by 30%.
4. Limit alcohol if you drink. More than 40 studies have linked alcohol abuse to an increased risk of breast cancer.
5. Don’t smoke. Smoking can increase the risk of many cancers besides just lung cancer. Smokers may be more than twice as likely to develop breast cancer as nonsmokers.
6. Keep screening. Breast self-exams should be performed every month, 3-5 days after your period ends, from the age of 16. Mammography screening should begin at age 40 and occur every 1-2 years. After age 50, your doctor may recommend annual mammograms. (2005 Mayo Foundation for Medical Education and Research)
7. Talk to your doctor. If you are planning to take any estrogen containing pill, carefully discuss the topic with your doctor. Increased levels of estrogen are believed to play a role in breast cancer, but the medications benefits may well outweigh the risk.
Information provided by ICM (Individualized Care Management, Inc, October 2005)
Generics Stay Flat While Brand Prices Grow
Brand-name pharmaceutical costs have escalated rapidly, while generic prices haven't moved much, revealing an opportunity for companies to cut medical bills by encouraging use of generics.
Manufacturer prices for 193 brand-name drugs jumped an average of 6.1% from July 2004 to June 2005, according to a new report from the AARP, the advocacy group for older Americans.
The second quarter 2005 average price increase for those drugs was 0.9%. In contrast, manufacturer prices for 75 generic drugs remained unchanged during that time frame.
Price hikes varied by manufacturer and therapeutic category. Treatments for hypertension and osteoporosis tended to have steeper price increases than other drug classes. Fifty-eight drugs showed increases of more than 5% during the first two quarters of 2005, AARP reports.
Ken Johnson, spokesman for the drug-maker lobby PhRMA, criticizes AARP for using wholesale acquisition costs, rather than the consumer price index, noting, "The U.S. government’s publicly available consumer price data over the past few years clearly show that prescription drug prices increased at rate slower than overall medical care."
Article provided by Benefit News, November 3, 2005.
HSA - Embedded Deductible
What is an embedded deductible??
Most HSA plans have what is referred to as an
aggregate deductible, which means there is one large family deductible that must be met before anyone in the family is covered. (I.E. If a family deductible is $5000, there must be $5000 in claims paid out of the client's pocket before any family member is covered.)
An
embedded deductible has a family deductible however, "embedded" within it is an individual deductible. Usually the individual deductible is half or one-third of the famly deductible. Embedded deductibles are what people are generally used to when they have a traditional PPO health plan.
Information was provided by Business Distribution Solutions.
Americans Satisfied With Health Care, Despite Cost
BenefitNews reports that most Americans seem satisfied with health care quality and tend to leave price out of the equation when considering quality, new data from the Employee Benefit Research Institute shows.
Americans often view cost as one of the least important factors when judging health care quality, EBRI's survey indicates. At least 90% of Americans cite skill, experience, training, willingness to listen and communication skills of their doctors as very important in evaluating health care quality. Meanwhile, 63% agree that information on the cost of alternative providers is very important.
Roughly 57% of Americans are extremely or very satisfied with the quality of the medical care they received in the last two years, while just 28% are satisfied with the cost of health coverage. EBRI President Dallas Salisbury comments, “Satisfaction with health care quality is high, but few are happy about the cost of health care." Cost does influence behavior, according to EBRI, which polled 1,003 adults.
Among insured Americans who experienced an increase in medical expenses during the last year, 79% switched to generic drugs, 71% started taking better care of themselves, and 21% skipped prescribed medications. Furthermore, 40% of all respondents delayed seeing a doctor because of costs.
