Not your parents' wellness program

Employers increasingly roping in dependents to embrace wellness

Employee Benefit News

By Lydell C. Bridgeford

December 1, 2008

...[To] drive down health care costs, employer-sponsored wellness programs must zero in on dependents covered under the health plan. It's a tough challenge, given that employers typically don't have direct access to covered dependents. ...

Strategic incentives

"That fact that dependents are not often onsite is a hurdle in getting dependents to participate in wellness programs," explains Bob Soroosh, director of benefit administration at Affinia Group, Inc., an Illinois-based company that produces highway replacement products.

One way to overcome that hurdle is by offering a paper version of a health assessment to employees and dependents that can be mailed to their home, Soroosh says. "We also give dependents the option to complete their biometric screenings during one of our onsite health screenings or at their doctor's office."...

In 2006, [Affinia] started offering employees a $1,000 reduction in their annual premium contribution if they agreed to participate in a health prevention program.

The company provides additional incentives for employees or dependents who complete specific wellness programs.

"That means an employee can receive additional contributions to their health reimbursement account when they, or one of their dependents, complete one of these programs," Soroosh notes. ...

Cash and gift cards are always good, says David Jacoby, vice president of business development at WellCall, a San Francisco-based wellness solution provider.

Employers also may want to consider knocking additional dollars off an employee's health insurance premium contribution if his or her dependents sign up for a disease management program or wellness initiative.

Holding health fairs during the weekends or after work also allows employers to get that one-on-one contact with dependents. Such events can result in dependents taking health risk assessments and biometrics screenings.

Factoring in childhood obesity

Employers that focus on dependent wellness mainly set their sights on dependent children who are over the age of 18, and spouses and domestic partners, says Melissa Vaughn, a strategic account manager at StayWell Health Management, a health management program provider.

However, experts agree that getting young kids directly involved in workplace health management programs is tough but necessary. They stress that employers' wellness initiatives should always include a component on childhood health and fitness.

"You want to coach the parent about healthy behaviors kids ought to be engaged in. The message might get across much better if you are coaching the parent to provide that information to the kid," says Jacoby.

Yet be mindful that kids imitate their parents, says Kay Curling, vice president of HR, compensation, benefits and HRIS at SI International, a Va.-based information technology services company.

"If a parent is coming home from work and only sits on a couch with a remote control watching television and eating dinner, then what do we expect our kids to do?"...

The prevalence of childhood obesity has reached epidemic proportions in the United States and is a major public health issue. Consequently, it's affecting corporate health care costs and productivity.

"Yet, you just can't look at childhood obesity in terms of health care costs. Employers also have to examine it within the context of presenteeism," Curling asserts. It's common for parents to be preoccupied at work with thoughts of their children, even under normal circumstances.

"It's a much larger issue than just looking at what kind of dependent wellness program you have. It's about making sure that both your employee assistance program and your health care plan are focused on encouraging childhood health," she says.

Tips for employers

Some health plans provide 100% coverage for preventive care for children up to age 6, something that Curling believes is "short-sighted" in general.

Health insurance coverage for dependents should focus on preventive care for medical conditions that can surface during early and late adolescence, she adds.

Companies that have a successful track record with their wellness and health programs are probably in a better position to embark on a strategic approach to dependent wellness, says Brian Passon, wellness consultant and director at Corporate Fitness and Health, a company that focuses on wellness in the workplace. ...

"You can't demand your employees to change their lifestyles at home if you don't have a culture of good health at the workplace," Passon concludes.

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Best practices to engage dependents in wellness programs

Michael Staufacker, director of program development for StayWell Health Management, offers advice for employers in bringing dependents into the wellness fold:

• Offer an appropriate incentive. ... Tie incentives to desired behaviors, such as physical activity, rather than outcomes, like achieving a goal weight. ...
• Communicate, communicate, communicate. Don't forget that the average person receives a message seven times before they remember it. ...
• Offer multiple program options. People learn in different ways. ... By offering multiple program modalities, you will appeal to a broader range of people. ...

Advisers to clients: Prepare for likely tax increases

They're divided on whether to act now or wait for the dust to settle

InvestmentNews

By Lisa Shidler November 16, 2008, 6:01 AM EST

Advisers are working to protect their clients against the likely tax increases President-elect Barack Obama and a Democratic-controlled Congress could bring as early as Jan. 1. ...

... Some say it's better to be proactive and are working with clients now to sell appreciated stocks to reduce the capital gains tax bite.

Others are taking a more wait-and-see approach.

Time is of the essence, said Mike Martin, founder of an eponymous financial planning firm in Independence, Mo., ...

Mr. Obama has already said he plans to increase the capital gains rate to 20% for households earning $250,000 in income. Advisers said clients are worried that the rate could go even higher, to 28%. The current rate is 15%. ...

"We think now's the time to voluntarily take some gains while you know the rate is no higher than 15%, rather than gambling that it won't happen in 2009," Mr. Martin said. "They might retroactively raise the capital gains rate. It's been done before." ...

"I don't want it to catch us unaware, and the better thing is to do it now," Mr. Martin said. ...

Earl McMahan, an adviser with Secaucus, N.J.-based United Advisors LLC, said he believes that the Obama administration might wait before increasing capital gains rates, simply because of the vulnerable economy. He's based in the Novi, Mich., office, ...

"I don't think they will raise the capital gains rate now with the tender market," he said. "And I'd be really surprised to see it go above 20%."

Even though Philip J. Tortorich, an attorney and partner in the trusts and estates department at Katten Muchin Rosenman LLP of Chicago, would prefer that his clients waited, he said they're anxious about the new administration and want to make changes now.

"My clients believe there will be a substantial increase in capital gains," Mr. Tortorich said. "Despite what I think and what I tell them, they want to incur capital gains taxes now."

He has told them that even if there's an increase, waiting usually is the better approach. "If we can defer capital gain pickup, that's historically been the best advice," Mr. Tortorich said. "However, that's not swaying the client." ...

... Mr. Obama has said he'll kill the Bush tax cuts on families earning more than $250,000 annually, which would mean tax rates would go up to 39.6%. ...

"I don't want to use the word paranoid, because it's too strong, but there is a level of that going on," he said. "You try to dissuade your clients, but there's only so much you can do."

Selling appreciated assets in the portfolio right now is something that David Weiss, a certified public account and certified financial planner with Ruggie Wealth Management LLC in Tavares, Fla., is advising his clients to do while the capital gains rate is currently 15%. ...

"What we're telling clients is, let's sell some assets you may have had in the portfolio for a long time," he said. "You can always buy it back."

Regardless of President-elect Obama's plans, many advisers are also preparing their clients for a 2010 conversion to a Roth individual retirement account. ...

Mr. Weiss said he's encouraging all of his clients to start IRAs now so that they can convert them in 2010. "We're telling them to fund an IRA now even if it's non-deductible so we can convert it in 2010," he said. "The income caps will be gone in 2010."

In fact, Mary McGrath, a CPA and CFP with Cozad Asset Management Inc. in Champaign, Ill., is working with clients to move money from 401(k) plans to an IRA in preparation for 2010. Most employees can pull money out of their 401(k) once they turn 60, even if they're still working. She's encouraging those individuals to do so to create an IRA.

Ms. McGrath is also pointing out to investors who currently have IRAs and earn less than $100,000 annually that now is a good time to make a conversion.

"With IRAs looking so pathetic, what's a better time to move the money over and make it non-taxable," she said. "If you believe this is a good time to buy into the market, it's also a good time to do an IRA conversion." ...

Encouraging clients to look closely at all the ways they can reduce taxes, including putting more money in retirement, is important, said Gary Hager, founder and president of Edison, N.J.-based Integrated Wealth Management, ...

"The clients we deal with are concerned about what's going to happen to them in regards to dealing with an Obama administration," he said. "What I've always [told] them is, [whether we're governed by] a Republican or a Democrat, make use of every credit and savings that's possible."

E-mail Lisa Shidler at lshidler@investmentnews.com.

Press Release "Financial Savvy for the Small Business Owner"

Press Release

For More Information: David M. Williams, CFP^©

FOR IMMEDIATE RELEASE

NEW BOOK OFFERS SMALL BUSINESS OWNERS STRATEGIES FOR SUCCESS AS WELL AS HOW TO AVOID MAKING CRUCIAL MISTAKES

Cordova, Tennessee wealth management firm featured in chapter one of “Financial Savvy for the Small Business Owner” discusses top mistakes and traps of small business owners.

January 2, 2009, Cordova, TN----In their newly published book for business owners, financial services industry journalists Lyn Fisher and Sydney LeBlanc highlight the nation’s top wealth management firms that advise small business communities. In their first chapter, principals Charles Auerbach, CFP®, CLU, ChFC, EA and President and Cofounder of Wealth Strategies Group, Inc., and David M. Williams, CFP® and Registered Investment Advisory Associate with the firm, shared their insight on key topics such as business succession and exit planning, staff selection and capitalization to name just a few.

Says David M. Williams, “Studies indicate that only 30% of family businesses survive into the second generation, only 12% survive into the third generation, and only 3% survive into the fourth generation and beyond.” He says that it is possible for the business to end or be passed down successfully, though, at any of these generations with advance planning. He and colleague Charles Auerbach illustrate in their chapter the six areas of tension in family businesses that can create problems at a succession or an exit event, one of which is sibling rivalry.

Williams explains that the challenges of family rivalry—as well as other business challenges---during a succession event can be moderated if planning is done in advance. “A succession plan requires a commitment for all parties involved,” says Williams. “Family members may be willing to work together if they recognize the ramifications of an unwritten ‘default’ plan. All parties must set aside their own competitiveness so they can work together, rather than tear the business apart.”

In addition to business succession planning, both Auerbach and Williams are involved in strategic philanthropy and values-based legacy planning. With more than 50 years combined experience, they have the knowledge capital and skill to help business owners successfully navigate through the maze of pitfalls and obstacles they will encounter throughout their business lives.

Readers of “Financial Savvy for the Small Business Owner” will also find valuable information about employee benefit plans, entrepreneurship, goals, cash flow and other topics so vital to help owners make the best decisions for maintaining their company’ financial health.

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For more information about the book or for a review copy, please contact Financial Forum Publishing and Communications at 435-750-0062 or email info@ffpublish.com.

For more information about Wealth Strategies Group, Inc., please contact David M. Williams, CFP® at 901-473-9000 or email at dave@WSG-TN.com

Benefit News' Daily Diversion: Long-term care doubles in popularity over past decade

Benefit News' Daily Diversion: Long-term care doubles in popularity over past decade

The ROI of business social networks

Fort Worth Business Press

BY ED RIEFENSTAHL

December 15, 2008

Conventional wisdom in times such as these is that businesses must continue to invest in sales, advertising and marketing. Mike Roundtree, CEO of Fort Worth-based Roundtree Advertising, shared a McGraw Hill Research study that backed up this assertion. It found that “aggressive recession advertisers” increased market share 2 1/2 times the average for all post-recession businesses. ...

In this month’s TAB Tips, I want to share a marketing and business development investment that is cash flow friendly – business social networking. Below are the tips for small business owners to leverage this channel. ...

Background

Most readers have heard of MySpace and Facebook. Each site has its distinct online communities and features; however, the pre-eminent networking site for business professionals in the United States is LinkedIn.

Launched in May 2003, in 2008 Sequoia Capital, Greylock Partners, and other venture capital firms purchased a 5 percent stake in LinkedIn for $53 million, giving the company a post-money valuation of about $1 billion. As of October, it had more than 30 million registered users, spanning 150 industries.

How to leverage your relationships and business on LinkedIn

At a recent presentation for business owner members of The Alternative Board, TAB, the questions were about potential benefits in the following areas:

1. Lead Generation: This involves both being found and finding others. LinkedIn is a powerful method to search for ideal prospect companies, however, knowing how to get yourself introduced is key. Being seen as an expert in your field by engaging in the Question and Answer feature of LinkedIn which can help you see and be seen.

2. Sales Acceleration: You likely won't have direct access to C-level people, but you may have the opportunity to access someone currently or formerly in an organization who can champion or coach you.

Researching the profiles of the individuals found on LinkedIn provides a context for starting focused conversations. You may get insight into current and past roles, interests and accomplishments. As such, your conversations are more relevant and focused.

3. Finding Strategic Partners: In order to meet the needs of a new client prospect, or to search for a strategic partner, use the LinkedIn Advanced Search feature to find other small business partners with skills that augment your offering.

4. Marketing and Brand Positioning and Image: Your company profile on LinkedIn must match the content contained on your Web site, as well as other materials and media carrying your marketing message.

5. Generation Gap Communication Closer: In a January, CSO Insights article, Barry Trailer surfaced this observation: “A major trend impacting sales is the span of three or even four generations within a single sales force. Managing and facilitating communications across these generational gaps may be eased with social networking technologies. While my [baby] boomer compatriots think e-mail is big magic, instant messaging and text messaging now are estimated to outnumber e-mails on a daily basis.

“A presenter at an analyst conference shared a conversation he had with a younger co-worker. He asked this 20-something if he used e-mail. The younger worker’s response –and the presenter assured us he detected no sarcasm when the young person said it – was, ‘Yeah, but only when I’m talking to some old guy.’”

How to get a handle on business social networks

A Denver-based firm, Integrated Alliances, is positioning itself as the international, one-stop source to help business organizations effectively and efficiently leverage business social networking sites, starting with LinkedIn. The firm offers the following training and services: International webinars, local public workshops, custom training and services.

The local source for these services is Janee Harrell. To find out more, or to register for upcoming webinars and workshops, go to: www.linkedforroi-ignite.com

LinkedIn and the expanding Online Business Social Networking relevancy of Facebook and Twitter will grow in importance to small business owners. Taking advantage of this channel is a must. To leverage it effectively, find firms, like Integrated Alliances, which are focused on this space to assist you.

Ed Riefenstahl is the Fort Worth area managing director of The Alternative Board. He also founded and leads Neeley & Associates at the Neeley School of Business at Texas Christian University. Ed serves as a board member of the Fort Worth Business Assistance Center and an advisory board member of the North Texas Angels Network.