Communicating employee benefit plans

Article Abstract:

Lack of understanding and underestimating costs of benefits contribute to employee dissatisfaction and management frustration. The wide and complicated range of alternatives and changes in benefit plans are some of the reasons why employees get confused when availing of their benefits. To avoid such situations, an effective communication program must be devised and maintained to ensure that employees understand and appreciate benefit plans created for them. An effective program should regard the timing for communication of benefits, the communication media, employee comprehension and the information being conveyed. Such program should increase awareness of not only the benefits but also of their costs to employers. Companies may also hire experts in benefits communications and conduct annual benefits meetings for employees to maximize understanding and appreciation of benefit plans.

Evaluation, Human resource management

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Health care reform the American way

Article Abstract:

The health care reform proposals outlined by President George Bush on Feb 6, 1992 fail to fully address the problem of how to provide affordable long-term health care in the US. The Bush proposals cover access, cost control and health care quality but do not prescribe workable remedies for such key issues as adverse selection and insurance premium increases, the soaring costs of drug therapy and medical technology, the shift to high-cost private payers, and the overuse of the health care system. Eight measures drawn from recommendations made by the National Center for Policy Analysis and the National Small Business United are presented as possible supplementary measures that could be used to strengthen the Bush reform proposals. The measures include suggestions on how to improve the rating system used by insurance companies and the reestablishment of the per condition deductible.

Economic aspects, Column, Medical policy, Health policy, Health services administration

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Section 89: complex and costly

Article Abstract:

Section 89 of the Tax Reform Act of 1986 is causing employers to reevaluate their employee benefits plans to make sure they are in compliance. Section 89 compliance rules are divided into qualification and nondiscrimination rules. The qualification rules require that plans be in writing in one document, and that plans confer employees' legally enforceable rights. Additionally, the plans need to be for the exclusive use of employees. Before conducting nondiscrimination tests, employers need to identify their highly compensated employees, such as people who own five percent of the company or employees who are receiving more than $75,000 in compensation. The nondiscrimination tests include: an alternate 80% participation test; a 50% eligibility test; and a 75% average benefits test.

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