RIDING A CREST OF BENEFITS SOPHISTICATION    Re-established benefits division thrives on wellness and retirement services When Johnson Kendall & Johnson, Inc., in Newtown, Pennsylvania, split from its progenitor agency the Johnson Companies in 1992, executives envisioned a property/casualty insurance specialist that might accommodate the benefits needs of its customers with some simple brokerage services. Managing Partner Bruce R. White says almost everybody thought the task would not be too difficult. “In those days, a broker would fax a carrier the request for renewal and the company would fax back the new rate and premium,’ he says. If there was any competition among health plans, the agency could help the client decide whether to go with the lowest bid or a familiar incumbent. But rising health care costs and increasing complexity quickly brought an end to those simpler days, he notes. And JKJ changed with the times, building an employee benefits practice that offers strategic support as well as brokerage services and an array of specialists who can support strategic planning and 21st century approaches to benefits management. Click here for the complete article …

RETIREMENT SAVINGS    Employers need to provide better advice about options Will the newest generation of workers save enough to retire comfortably? Not unless more employers begin to provide better post-retirement benefits delivery options—and the retirement plan administrators reform their fees. In September, The Society of Actuaries in Schaumburg, Illinois, and the Stanford Center on Longevity in Stanford, California, released a new report that challenges employers to provide more options for the delivery of retirement income and better education about how those options can work to deliver better financial security. The report also provides some direction for agents, brokers and other benefits advisers about how to guide their clients in offering options that protect employees even after their retirement. Click here for the complete article …

COMMODITIZATION OR CONSULTATION?    Benefits producers, it´s time to choose! Up until now, there hasn´t been much difference in the value propositions offered by benefits producers. Whether they work for a large national brokerage or a small independent agency, benefits producers have used the same basic approach and value proposition. See if this sounds familiar: A producer shows up at a prospect´s office and starts telling his story. He brags about the number of years the agency has been in business, the “super premium’ status it has with carriers, the great service his team will provide, and how they will be an extension of the prospect´s HR department. From there, the producer all but begs for the opportunity to work for free by asking for a chance to provide a quote with the hope and promise of trying to save the client a little money. And knowing that the eventual spreadsheets will all look the same, the producer recites his list of free stuff (some call it value-added services) in the hope that it will seal the deal. Click here for the complete article … FACILITATING PLAN CHOICES IN A CHANGING ERA    The Guardian Life Insurance Company of America´s online tools help employers evaluate options and guide employees Employees face a potentially confusing array of options at enrollment time. As more voluntary products are introduced into their plans, they must make hard decisions about where to spend their money. For many, the initial uncertainty of dealing with the Affordable Care Act (ACA) will complicate those choices. Brokers, plan providers and employers share responsibility for communicating a plan´s features to employees in this era of change. The rewards of doing so effectively are significant. One study of 1,600 plan participants in 2012 showed that while overall less than half of them were “very satisfied’ with their plans, the number of the “very satisfied’ jumped to 70% for those who said they felt confident in their benefits selections. (See “Benefits Products & Services,’ November 2012.) Click here for the complete article … HEALTH CARE: NEW REALITY, NEW RISKS    In designing coverage, ACE takes a comprehensive look at changing exposures The health care industry today is facing heightened scrutiny. Legislative and regulatory actions designed to combat misconduct have brought about a dramatic increase in liability for health care organizations. A whitepaper produced by ACE Insurance, in conjunction with outside counsel, explores key issues these organizations face and points out the importance of a proactive risk management strategy that includes a properly structured management liability insurance program. The report, The Rising Tide of Risk for the Health Care Industry, is the first in a series and focuses largely on three topics: The United States False Claims Act, antitrust activity related to mergers and acquisitions, and liability resulting from peer review and credentialing. False Claims Act The False Claims Act (FCA) is the government´s primary tool for combating waste, fraud and abuse by government contractors, including health care providers participating in federal health care programs. The ACE report points out that the act contains “qui tam’/whistleblower provisions that let private parties—referred to as relators—file suits seeking recovery under the act on behalf of the United States. Relators file qui tam actions under seal to let the United States investigate the allegations. After the investigation, the government decides whether to intervene in the case and litigate it in court. Click here for the complete article …  Click here to unsubscribe This message was sent by The Rough Notes Company, Inc., 11690 Technology Drive, Carmel, Indiana, 46032 1-800-428-4384