Employer Strategies for Healthcare Reform Revealed by Longfellow Benefits' Haraden at New England Employee Benefits Council

WALTHAM, MA--(Marketwire - Oct 17, 2011) - How can employers best respond to the challenge of healthcare reform?

Employee benefits expert Patrick J. Haraden, principal of Longfellow Benefits, laid out the range of strategies at a seminar sponsored by the New England Employee Benefits Council. He was one of three top experts who spoke on healthcare reform.

Employers can use more part-time, temporary or contract employees to reduce the number of full-timers eligible for coverage, he said.

Some employers have created separate companies and/or locations as different legal entities. Reducing benefits to the minimum credible coverage mandated by the law can cut costs.

Employers also are conducting upfront and ongoing audits to ensure that claimed dependents are eligible. They're insisting on proof of eligibility and status, requiring dependents to show birth and marriage certificates and sign affidavits.

Making employees pay more for dependents' coverage with spousal or other surcharges can help offset higher costs, he said.

"The opt-out credit is undergoing a revival," Haraden said. "This means rewarding employees who rely on their spouse's employee for coverage."

But federal regulations limit employers' use of these strategies, Haraden said.

"Regulations, not human resources, define who's deemed a full-time, temporary or seasonal employee," he said.

Regulations also determine who's considered a dependent. "Be careful with this term," he advised.

Regulations also dictate minimum coverage levels, minimum employer contribution levels and minimum participation levels.

Given the flux in the law and regulations, employers should update plan documents continually as healthcare reform measures become effective. Documents should clearly define eligibility, coverage and the appeals process.

"Proceed as if the law will be implemented as is," Haraden said. "React as soon as guidance is issued."

Benefits professionals must get timely, factual advice and keep senior management, corporate finance and employees up to date.

"Start to educate employees and their spouses now," Haraden urged.

He also discussed the status of the health care exchanges in the states, the current legal status of PPACA, and how Massachusetts employers and individuals have responded to the individual and employer mandates.

Serving organizations in New England and nationally, Longfellow Benefits provides employee benefits, executive benefits, and financial planning consulting services. The firm's technical depth, breadth of expertise, infrastructure, nimbleness, and service delivery help employers optimize each benefits dollar. For more information, visit www.longfellowbenefits.com or call 617-351-6000.

The New England Employee Benefits Council (NEEBC) is New England's largest provider of benefits resources and education, was founded in 1979 to promote discussion, networking, and informational exchange among the region's employee benefits practitioners. Since that time the organization has grown to 1,400 members representing both purchasers and providers of benefits services and products. NEEBC remains committed to providing high quality benefits-related education while fostering sound procedures, principles and practices in all areas of the industry. It holds informative, topical sessions throughout the year and provides many other member benefits. Web: www.neebc.org.