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A survey shows that eligibility for COBRA has decreased, probably due to a low unemployment rate, while costs for administration have increased.

The 1998 survey for Consolidated Omnibus Budget Reconciliation Act (COBRA) health care costs cover 192 firms which use COBRA for 2.79 million employees reveal costs to represent 151 % of total active employee claims costs. Yearly health care costs of surveyed companies totalled $5.18 billion or about $3,508 per employee compared to only $3,332 per employee in 1997. The percentage of employees eligible for COBRA coverage dropped from 10.2 % in 197 to only 6.4% in 1998 while average annual costs reached $5,297 for the same period.

Employee benefits departments appear to have gained some solidness in spite of corporate downsizing and demands to prove value to the bigger organization, according to a 1997 biennial survey by Charles D Spencer & Associates. The survey determined that salary levels rose between 1995 and 1997 which was bigger than in preceding two-year survey periods. Staffing levels in employee benefits departments also rose following several years of reported declines. Nonetheless, benefit managers remain chiefly concerned with legal compliance.

An annual survey conducted by Charles D. Spencer & Associates reported that the average health claims for COBRA-covered individuals continue to exceed costs for active employees by 56%. The study also maintained that about 28.1% of employees and dependents eligible for COBRA continuation of coverage actually took the health care coverage offered.

The Employee Benefit Research Institute (EBRI) provides useful and wide-ranging information through its World Wide Web sites. End-users without password access can view the text of the Monthly Washington Bulletin, executive summaries of EBRI Issue Briefs and a set of Benefits-related links to other Web sites. Likewise, the National Health Information Resource Center (NHIRC) provides professionals with access on vital health information. Some of its resources include health data sites, project abstract files and DataNews.

Employers have many choices in outsourcing benefits management. Robert Pariseau, ABR Information Services Inc VP of development, reveals an evolutionary method wherein COBRA administration is first adopted as the company builds a relationship with an outsourcer. COBRA administration and other human resource management rely on advanced technology and customer service. These include individual communications, electronic interface benefits administration, and data base management systems.

COBRA continuees' average claims costs have surpassed the costs for active employees by 46%, as shown by the ninth annual survey of employers and administrators conducted by Charles D. Spencer & Associates Inc in 1996. The survey showed that a little over 19% of employees and dependents eligible for COBRA continuation coverage have actually took the coverage. The study states that employers subsidize the claims costs of continued coverage by an average of 30%.

The situation in employee benefits has changed at lot between 1986 and 1995 but has not necessarily resulted in greater stability for the system. The changes were brought about by the advent of sophisticated communications technology, the emergence of more options for employer-employee interaction and the changing character of corporations. One important change was in the way these benefits were administered. By 1995, outsourcing had become popular.

A recent survey conducted by Charles D. Spencer and Associates Inc. shows that the average salary of benefits department supervisors and specialists was $35,694, while that of clerical staff was $23,893. Most benefits departments had an average of 4.6 employees, with one manager, two supervisors/specialists and another two clerks. The vast majority of benefits departments reported using outside services.

The IRS issued Notice 94-103 in 1994 to clarify the difference between the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and the Family and Medical Leave At of 1993 (FMLA). Active employees can only qualify for continuation coverage under COBRA when there is a COBRA qualifying event on the specified date of return to work. In contrast, employees and dependents can continue availing health care coverage given to active employees during the term of FMLA leave.

The 1995 survey of employers and administrators showed an 18% increase in the number of employees and dependents eligible for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Only 7% obtained eligibility, the second lowest percentage in the last seven years. The claims costs for COBRA continuees were 50% more than active employees, 12% lower than in 1993, and varied from employer to employer. Each COBRA participant paid an average annual cost of $5,301 including claims and administration.

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, has greatly affected employee benefits due to three primary reasons. One is that the COBRA continuation of coverage law requires every US employer with 20 or more employees to do some administrative work. Another is that it involves a lot of human drama since it applies when employees quit or are fired from their jobs, upon retirement, death, divorce or bankruptcy or when children grow up. Still another reason is because it has spawned numerous court cases.

COBRA, the Consolidated Omnibus Budget Reconciliation Act or the single-employer pension plan, was selected by almost one out of five employees and dependents qualified for continuation of health care coverage. This was revealed by the results of the seventh annual nationwide survey of employers and administrators regarding the COBRA. Other issues related to the law are discussed.

The National Business Coalition on Health is a nonprofit body that helps to coordinate the activities of some 85 regional health coalitions from across the US. Based in Washington, DC, the organization's principal mission is to win political support for a community-based, employer-supported group health purchasing system. According to Sean Sullivan, the organization's president and CEO, the group purchasing concept has to be the central pillar of any health care reform program since it has already proven to be the best way to ensure cost-effective delivery without any loss in the quality of services.

A biennial employee benefits management survey conducted by Charles D. Spencer and Assoc Inc found that employee benefits managers often earned more than $84,000 yearly, had a budget of $2 million and have a staff of approximately 20 people. The survey studied staff salaries, departmental structure, budgets and problems. Problems reported were complaints about costs, communications, staffing conditions and new legislation.

The Clinton administration's health care reform package will have far-reaching effects on existing laws. The Clinton health care reform package increases federal and state governments' role in health care, imposes new responsibilities on consumer-provider health alliances and change the current roles of insurers, third party administrators and managed care groups. In addition, it also places additional financial burdens on employers.

The cost of coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) was studied in a recent survey on COBRA coverage conducted yearly by Charles D. Spencer and Associates. Some 204 employers and health plan administrators were queried on the cost of COBRA coverage to their companies. They were also questioned on the cost of health coverage for active employees. Results indicate that COBRA cost were 50% greater than health coverage cost for active employees.

The flawed system of employee benefits coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is expected to lead to the replacement of the present system with another to be instituted under a new law on employee benefits. Managers or other company personnel tasked with handling employee benefits should study the reasons for the failure of the present system under COBRA to avoid repeating the same mistakes after a new employee benefits law is passed by Congress.

Private practitioners and the Health Care Financing Administration have sought to establish a standardized system of health care claims processing. Automation of data gathering and processing has been foremost among these changes in the insuranceindustry, quality control groups and corporate employers. Electronic claims processing have increasingly become the standard because of the need to reduce administrative costs. Industry sources estimate savings of $10 billion annuallyfrom electronic standardization.

Interland Inc. hired the Internet services of Employease Inc. Now Interland's 600 employees can enroll for benefits completely online.

The 1996 Health Insurance Portability and Accountability Act has had only a minor impact on the administration of employee health benefits since its implementation.

Very few veterans want the VA privatized, and veterans' opinions on the subject should be the only opinions that count. As a combat-wounded, disabled veteran, I have been uninsurable for [...]

Various World Wide Web sites can help employers and employees alike who are looking for government information on employee benefits such as regulations and and court cases. The Pension and Welfare Benefits Administration of the Department of Labor issues several Advisory Opinions that pertain to employee benefits. The Social Security Administration offers a comprehensive Web site.

The Segal Company's senior VP and national practice leader, Kenneth R Jacobsen, says that employers need to pay attention to price since price negotiation remains crucial. He adds that the challenge for employers will be whether the fundamental principles of managed care take hold. Employers need to know how to educate workers regarding managing the need for suitable health care.

The number of competitive employee benefits plans increases as an employer looks for ways to retain employees and keep them productive and loyal. These potential benefits include long-term care, group universal life, prepaid legal, dental and vision, financial and personal services-related benefits, and traditional optional benefits. All these innovative optional employee benefits plans are discussed.

International Business Machines' National Human Resources Center Project Leader Ken Morrissey believes that the introduction of new laws changed the functions of benefits managers. ERISA and its disclosure requirements was the first law to chart the role of benefits managers. Other significant policies include the implementation of Sec. 401(k) plans and managed care. The rise in health care costs also forced benefits managers to focus on flexible benefits and health care.

Employee Benefits Professional of the Decade awardee Anna M. Rappaport discussed the effect and consequences of outsourcing in the field of corporate employee benefits. Among the concerns of employers considering outsourcing are what kind of image their firm will exude, limitations of outsourcing and keeping up with technologies. Rappaport affirms that outsourcing can help reduce headcounts and acquire good automation.

The federal health care reform legislative process began on Jan. 4, 1993, with Senate Majority Floor Leader George Mitchell announcing that the highest priority must be given to the issue. On Sep. 26, 1994, Mitchell conceded that health care reform cannot be passed in 1994. The key activities in Congress over the issue are recounted to show why health care reform efforts failed. The Jul. 1994 meeting of the National Governor's Assn. also tackled the same issue and emphasized what the states want to happen with health care reform.

Sophisticated information systems are now being used to redesign corporate health care delivery systems, with the aim of cutting costs and increasing efficiencies. In line with this, several leading companies have implemented a new cost control approach called integrated health data management. Among them are AT&T and First National Bank of Chicago, both of which have used advanced information systems to improve the structure of their health care packages, upgrade their health databases and reduce the administrative and record-keeping costs of their medical plans.

Ken Morrison, head of employee benefits at diversified manufacturer FMC Corp., points to the enactment of the Employee Retirement Income Security Act (ERISA) in 1974 as a turning point in the evolution of the present employee benefits structure in the industry. FMC was able to respond to the requirements of the new legislation with its full range of employee benefits. Nevertheless, the requirements of ERISA are too complicated and numerous that full compliance is difficult.

Under the COBRA health care coverage, average claims costs for individuals were 56% higher than costs for active workers. This is according to the 12th annual nationwide survey of employers' and administrators' experience with COBRA. In the survey, 20.2% of COBRA employees and dependents actually enrolled in the offered health care coverage.

There have been modest changes that have been brought about by the Health Insurance Portability and Accountability Act of 1996. This is according to the second annual Charles D. Spencer & Associates employee and administrator survey. Fifty-eight percent of employers in a survey of 211 respondents said that they issued their own HIPAA coverage certificates. Thirty percent of the cases saw the insurer issue the certificates.

Reports from the Department of Labor show that, for the year ended September 30, 2000, benefits costs for private industry workers rose to 6.0%. The largest portion was for health care, and employers will try many strategies to reduce costs, including passing some on to employees.

The cost of employee benefit plans is rising, and employers are more concerned with how to lower costs than the quality of their particular plan.

This is the survey report of accident and health insurance coverage for 1999. The 1999 survey conducted by Employee Benefit Plan Review, is the 47th annual survey of the industry. The survey report includes statistical data collected from 65 managed care organizations and insurance companies, with health contracts valued at $200.8 billion and coverage for 57.9 million employees.

The US Dept of Labor will implement its DNAFAST system for employee benefit plans by Jul 1, 2003. Electronic signatures of fiduciaries and Form 5500 preparers will be replaced by DNA signatures and all filings will be in electronic form.

The amount that an employee contributes to employer-sponsored and government-sponsored health care and retirement plans is expected to to rise steadily. This is largely because the California Public Employees' Retirement System has agreed to an annual average premium increase. Moreover, health benefit plan sponsors and insurers expect their spending on drugs to rise.

Many people hope the much-needed reforms in the nation's social security systems will happen in 1999. Among the numerous bills filed in the 105th Congress, the Social Security Solvency Act is expected to make sweeping changes to Social Security once it is passed into law. The bill seeks to establish a combined defined benefit and defined contribution approach to Social Security.