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1. FEATURE STORY:
HEAT UP EMPLOYEES' LUKEWARM RESPONSE
TO HEALTH SAVINGS ACCOUNTS

The number of companies that utilize health savings accounts (HSAs) as a way to reduce health care costs is on the rise. According to a recent survey by Spencer Benefits Reports, HSAs were offered by 28% of employers in 2006, up from 12% in 2005; 41% said they plan to offer them this year. Unfortunately, employee interest is not keeping up. The same report put the average employee adoption rate at a paltry 3%.

Effectively educating employees on the benefits and responsibilities of HSAs is an important element to increasing participation rates. Successful programs rely on several key components, which have evolved over the past three years as thousands of companies installed HSAs. JoAnn Laing, a nationally known authority on HSAs, has authored two books on HSAs and helped hundreds of firms implement these new offerings. From their experiences, she has developed a series of check-points for companies that are implementing HSAs this year. A few of her key points are:

1. Gain management's commitment to the effort. Sit down with a couple of the company decision-makers one-on-one and go through their personal health plan scenario: how the current health program (if there is one) compares to the proposed HSA program, what are the savings involved, and how the program works. When you have those managers on board and talking about how the HSA program will work to their favor, employees will sit up and take notice.

2. Develop a pre-enrollment "buzz" and pre-sell early adopters. Besides getting managers to talk up HSAs to employees, send out communications (on bulletin boards, via e-mails, etc.) before and during the launch of the HSA program about the advantages of HSAs (e.g., health insurance premiums cost less, contributions to HSAs are tax-free). This gets employees talking about the favorable aspects of HSAs and helps counter any negative information employees may have heard.

3. Ask for help from vendors, agents, insurance providers, and benefits providers. It is to their benefit to help employers, and to employers' benefit to seek out their support and participation. Ask agents and vendors to pre-train company management on the HSA program for which they already have many clients. Have them give insights into what has worked and not worked for other clients. Also, have agents and vendors available for employee meetings to explain the HSA program and to provide examples.

4. Provide employees with pre-enrollment kits that include a work sheet and calculator so each employee can compare the current health program with the new HSA program. If an employee speaks another language, have materials in his/her native language for greater understanding. Offer a list of FAQs and a primer about the basics of HSAs (or a least a list of qualified medical expenses).

Laing also advises employers to establish a contribution program to help employees fund the first year's deductible and include ways of saving monies utilizing health care providers. She also emphasizes the importance of monitoring, measuring, and modifying the program as it develops. Above all, talk and listen to employees as they educate themselves on the benefits of HSAs.

If you would like to hear more about ways to increase employee participation and lower your health benefits costs, and be able to ask Laing questions, sign up for AHI's July 25 web conference, Proven Strategies For Increasing HSA Enrollment.

2. CATHIE'S CORNER:
HR: WHERE THE DOOR IS ALWAYS OPEN

We've all been there. You're just about to sit down and put in some concentrated work on the project your boss just assigned you. Or put together the materials for open enrollment. Whatever it is, you just need time to sit down and do it. But you find an employee has utilized your open-door policy and is sitting in your office waiting to talk to you.

Of course, you don't always have to drop everything when employees decide they want to talk to you. If you're really involved in something time-critical, you can certainly ask the employee to make an appointment to come back later. But if it's at all possible to see them when they first come in, you should do so. It's often been a difficult decision to bring their problems to management and if they have to wait and come back later, they may decide not to bother and you'll have lost the opportunity to resolve a workplace issue or keep a misunderstanding from getting out of control.

An open-door policy came in handy when a surprising promotion decision was made. Most of the department thought it would go to "Betty," who was the senior member of the department, so they were astonished when it went to "Chris," instead. Betty not only had been in the department the longest, but she was also the oldest employee and the only minority, so discrimination was suspected. Utilizing the open-door policy on Betty's behalf, "Deanna" went to HR. To Deanna's surprise, she learned that the promotion had been offered to Betty, but she turned it down and recommended Chris for the position. Deanna was able to report back to the rest of the group that Betty was happy where she was and didn't want additional responsibility, and that Betty thought Chris was better qualified for the position.

This whole experience was also a surprise for management, who had not realized that the reasons for promoting Chris over Betty had been so misunderstood. In response, they improved communications with the department, including holding weekly staff meetings.

Don't ever underestimate the importance of keeping your door open. It can be of the utmost importance in keeping you in touch with potential problems.

Catherine Bannon is the President of HR by Request, Inc., in Marshfield, MA (catherine.bannon@gmail.com). Bannon worked for 10 years in HR management before starting her consulting firm.

WHEN EMPLOYEES SPEAK OF ONGOING HEALTH PROBLEMS, YOU SHOULD LISTEN

An employee does not have to specifically mention the Family and Medical Leave Act (FMLA) or say "serious health condition" to put you on notice of the need for FMLA leave...View the full story on our website.

FREE REPORT

Check out the Free Report, "Clearing The Air On Workplace Smoking Laws," which provides an overview of each state's workplace smoking restrictions, policy requirements, and posting rules.