Don't Wait For Reform; Prepare For The Future Now

By: Bryan Brenner and Russ Stuart - CEO and President, Benefit Associates/Benefit Consultants

President Barack Obama's ongoing push for health care reform is making one thing clear: Change is coming to America's health care system.

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Certainly, the scope of reform is not worked out, but the debate has progressed far enough that change is inevitable. Unfortunately, as politicians wrestle with our health care future, consumers and business operators must live in the present.

With all of this uncertainty, businesses might be tempted to bide their time until the outcome is clear. But that�s neither prudent nor necessary. We can address the realities of today even as the policies of tomorrow take shape.

The stakes are high. Proposed changes will affect health and pocketbooks. Health care recently overtook housing as the largest chunk of Americans� spending, according to the Centers for Medicare and Medicaid Services. And over the past decade, the Kaiser Family Foundation notes, the average premiums for employer-provided family coverage increased 131 percent while workers� earnings increased 38 percent.

Even as businesses and employees deal with these costs, we face a parallel issue: roughly 46 million uninsured Americans. These millions, the Kaiser Family Foundation notes, include a broad spectrum of Americans � perhaps most notably, people who are ineligible for coverage due to pre-existing conditions or an inability to pay premiums.

Predicting the outcome of the reform debate is impossible. Still, we see themes that consumers and business operators should accept in order to prepare for the post-reform world.

Change is coming. We�re too far into the process to retreat completely now.

Employees will have more options. The vision is of a more open health-care marketplace.

Employers will play a key role. The workplace will be pivotal to the provision, distribution and communication of health care coverage.

Employers have a vested interest in employees� well-being. Lost productivity due to illness and injury costs millions of dollars each year.

Employers will be judged by benefits. Workers will continue to judge employers on the basis of benefits.

Employees will want information from employers. The infrastructure employers offer for information and assistance is too valuable to abandon.

So, what can and should business leaders do to manage through and prepare for reform? Following are recommendations.

� Increase communication. The recent MetLife �Study of Employee Benefits Trends� shows employees look to employers for direction and guidance. By accommodating this need, employers can help control costs and strengthen relationships with employees.

� Support employees as consumers. A 2007 MetLife study suggests that employees think longer about home electronics purchases than benefits purchases. Employers should push them to invest more time in benefits decisions.

� Increase push for wellness. Return on wellness investments have been estimated anywhere from $3 for every dollar invested to twice that. But a PricewaterhouseCoopers survey of U.S. companies found that less than a third of eligible employees enroll in wellness programs.

� Invest in preventive coverage. More than 75 percent of health care spending is linked to conditions that could be prevented or delayed through healthier living and prevention. Investments in prevention pay.

� Consider workforce demographics. Benefits are used differently by different demographic groups. Being aware of your workforce demographics will help you tailor your benefits and communications more effectively.

� Push for innovation. Employers must seek ways to �reform� policies now, encouraging wellness and the efficient use of health care.

Change is coming. The immediate challenge is to manage through change. The good news is that the measures that drive successful businesses are the same measures that will guide all businesses through uncertainty: a focus on what�s best for employees, a commitment to good communications, a dedication to improved productivity and a push for innovation. Commit to those principles, and you�ll be ready for whatever the future brings.

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