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Posted on June 27, 2008June 27, 2018

New Standards for Digital Medical Record Released

A coalition of employers, health insurers and health care providers released a set of policy and technical guidelines June 25 they say will make storing personal health records online easier and more secure.


The group, which includes Dossia, the employer group started by Intel, Wal-Mart, Pitney Bowes, BP and Applied Materials, hopes the guidelines will help gain the trust of consumers and employees concerned that online health records would be vulnerable to theft or misuse by an employer or health insurer.


Participants that included employers and health insurers as well as companies that have developed health care tools for consumers such as WebMD, Microsoft and Google, endorsed a commitment to never use the information in a personal health record to discriminate against an individual who is seeking health insurance or employment. The coalition said it would create policies and controls so that information in a health record cannot be obtained by employers and health insurers without the consent of the individual.


Zoe Baird, president of the Markle Foundation, which organized the effort, said “the information is not to be used for discriminatory purposes. Aetna and others have signed onto this.”


Companies that offer personal health records should, according to the written framework released June 25, “take a strong public and legal stand against third parties seeking to make their own access to consumer data streams and networked PHR information a condition of an individual’s employment, benefits, or other services important to the well-being of individuals.”


Colin Evans, president of the employer group Dossia, said the framework aligned with the understanding among the group’s employer-members that companies will not have access to the personal health records of employees. Dossia has said that employers will not have access to data from the personal health records even if they want to use it anonymously to develop targeted wellness programs.


“Our success depends on our employees to trust the system,” Evans said during a conference call announcing the agreement.


James X. Dempsey, vice president for public policy of the Center for Democracy and Technology, said the policy proposals go further than current laws, like HIPAA, to protect patient privacy.


Steven Findlay, a health care analyst for Consumers Union, the publisher of Consumer Reports, said the framework showed an extraordinary amount of cooperation between different, sometimes competing, interests.


—Jeremy Smerd

Posted on June 27, 2008June 27, 2018

Energy Costs Push Utah to Move to Four-Day Workweek

Soaring energy costs have prompted Utah to announce it is moving to a four-day workweek, making it the first state in the nation to do so.


With gas prices racing past $4 a gallon creating an unprecedented burden on many workers, on June 26, Gov. Jon Huntsman announced the Working 4 Utah initiative. Beginning in August, state government service hours will be extended from 7 a.m. to 6 p.m. Monday through Thursday. State administrative offices will be closed on Fridays, with the exception of essential public services.


“We live in a dynamic, ever-changing environment and it’s crucial that we take a serious look at how we can adapt and maintain our state’s unparalleled quality of life,” said Huntsman in a statement about the program.


Huntsman’s office estimates that 1,000 of 3,000 state buildings will be closed on Fridays, cutting energy costs by about 20 percent.


It’s only a matter of time before other state governments follow in Utah’s footsteps, says Susan Seitel, president of WFC Resources, a Minnetonka, Minnesota-based consulting firm.

“Minnesota is looking at this too,” she says. “This is absolutely the beginning of a trend.” 


Many state governments, as well as companies, recognize that moving to a four-day workweek not only helps save energy costs but also appeals to younger workers, she says.


“It solves so many problems—it reduces the carbon footprint, saves on commuting costs, makes companies look more responsible and gives people more flexibility,” Seitel says.


Utah will evaluate the initiative for a year to allow for adjustments in the future.


—Jessica Marquez


Posted on June 27, 2008June 27, 2018

Employers Reach Out to Children With Wellness Programs

Julie Currie couldn’t help but laugh when her 4-year-old daughter, Caroline, declined a soda at a friend’s birthday, declaring “sugar is bad for you.”


    Currie also gets a kick out of the fact that her 2-year-old, Jack, now asks for a piece of fruit for snack time instead of the usual packet of cheese and crackers.


    Caroline and Jack’s newfound interest in nutrition is a direct result of a wellness program offered by Currie’s employer, IBM.


    This year, the Armonk, New York-based technology company introduced the Children’s Health Rebate, which encourages families to set “healthy living goals” for themselves and keep track of whether they are meeting those targets over a 12-week period. Participants are eligible for a $150 rebate on their health insurance premiums. This year, 22,000 of the 52,000 families in IBM’s health care plan have signed up for the rebate.


    With health care costs increasing and childhood diseases, including obesity, becoming more prevalent, an increasing number of employers are including children in their wellness initiatives.


    IBM views its Children’s Health Rebate as a natural evolution of its wellness programs, which target employees, says Joyce Young, IBM’s director of wellness. “Some of the behaviors that we try to address through our wellness programs naturally transfer to families,” she says.


    “Employers that just focus their wellness programs on their employees are missing the boat,” says Hewitt Associates principal Tim Stentiford, who refers to plan participants’ dependents as “the forgotten majority.”


    On average, 20 percent to 25 percent of large employers’ total health care spending is on employees’ children, Hewitt reports. And this number may rise if childhood obesity continues to become more prevalent, experts say.


    Childhood obesity rates have nearly tripled among children ages 2 to 5 and almost quadrupled among those 6 to 11, according to the National Academy of Sciences’ Institute of Medicine.


    Experts also think that employees may be more likely to act on behalf of the health of their children than they would be to do something on behalf of their own health, Stentiford says.


    “If employers are looking to get people’s attention, focusing on children’s health issues is a way of getting people to act,” he says.


    And by positioning wellness programs as a nice thing for the whole family, employers can take a softer approach than penalizing unhealthy behaviors, he says. It comes off more like they are looking out for their children and loved ones rather than trying to just cut health care costs, Stentiford says.


    “If employers approach wellness from a holistic family basis, they have an opportunity to mitigate some of the concerns that employees have about their companies checking up on their health,” Stentiford says. “Instead, these programs are viewed as tools that are for the entire family.”


    All of these factors went into IBM’s decision to offer its Children’s Health Rebate, Young says.


    Participating families go online and fill out a form detailing their habits, such as taking an inventory of things like how much time they spend in front of computer and television screens, whether they eat meals together and what kinds of food they eat.


    After filling out the online form, the families then set three goals for themselves for the next 12 weeks. Choices of goals include making their own lunches or doing a physical activity together.


    Participants have access to a host of online materials on health topics and are sent a pamphlet from Weight Watchers called “Family Power,” focusing on healthy living for families.


    Each week, families reconvene to fill out a form about whether they met the goals.


    “We have heard from parents that often it’s the kids who are doing the tracking,” Young says. At the end of the 12-week program, they fill out a final questionnaire and receive the $150 rebate.


    Similarly, Texas Instruments allows employees’ children to take its online wellness assessments, but doesn’t offer monetary incentives for them to do so, says Linda Moon, manager of health promotion. Children account for 27 percent of the technology company’s total health care spending.


    Employees’ children are also allowed to use the company’s three fitness centers in Dallas, Plano and Sherman, Texas as long as they are supervised. Each of the centers has personal trainers who are available to work with children, Moon says.


    Texas Instruments also offers teen and younger children’s camps during school vacations at all three centers. The sessions cost $170 per week and allow children to engage in a number of activities with fitness instructors, such as swimming lessons. A couple of years ago, Texas Instruments added nutrition seminars to the camp sessions.


    While the company isn’t capturing any hard data on how the camps might benefit children’s health, Moon says that it seems obvious that they would have a positive effect.


    “We think it’s important to target children at a healthy age because we know that many of them will be on our plan until they are 18 years old,” she says. By instilling healthy eating habits and exercise in children when they’re young, the company hopes that it can help them prevent health issues such as obesity in their teens.


    Minneapolis-based Medtronic has included children in its wellness initiatives for the past 10 years, says Gen Barron, benefits manager and head of the company’s wellness programs.


    It makes sense that a medical technology company would make wellness a core part of its culture, Barron says. Many of Medtronic’s employees are parents of young children, so including kids in the company’s wellness programs was an obvious decision, she says.


    “If kids are excited about being healthy, they can get their parents excited about being healthy,” Barron says. “We feel that it’s important to reach the whole family.”


    To this end, Medtronic hosts annual Fun Days during the summer, where employees’ children are invited to the company’s headquarters to participate in activities such as bike safety events and yoga classes.


    “We often have a nutritionist come in and talk to the kids,” Barron says. The company usually gets 50 to 100 children at the event.


    Last year, Medtronic went a step further. Since the company is a sponsor of the Medtronic Twin Cities Marathon, it participated in a kids’ marathon program. Through the program, which has been marketed to schools and the local community, Medtronic employees’ children can sign up online and do a virtual marathon over the course of the summer.


    While Barron isn’t sure that it’s possible to track the return on investment from its Fun Days, she says that at least the company knows that it’s reaching children through its messages. “Often the question can be raised that you don’t know if your message is getting into the homes. But by bringing the kinds on site, we know that we are reaching them,” she says.


    Experts believe that the next iteration of wellness programs will include health risk assessments that are customized for children.


    “I think we have to begin to include children in some fashion,” says Fred Williams, director of health benefits management for Quest Diagnostics. “These are going to be our employees of tomorrow.”


    While no one interviewed for this article knew of vendors that offer a wellness assessment specifically for children, officials at IBM, Medtronic and Texas Instruments each say they would be interested in such a tool.


    The challenge is that companies don’t want to be viewed as encroaching on parents’ domain, says LuAnn Heinen, a vice president at the National Business Group on Health.


    “Companies have to be cautious,” she says. “They don’t want to offend parents, but they want to include kids.”


Workforce Management Online, June 2008 — Register Now!

Posted on June 27, 2008June 27, 2018

Leveraging the MBA

FedEx Corp., with $37 billion in annual reve­nue, 290,000 employees and contractors, and operations in 222 countries, ranks seventh on Fortune’s list of America’s Most Admired Companies and sixth on the World’s Most Admired Companies list. For 10 consecutive years, it has also appeared on Fortune’s list of the Best Companies to Work For.

    Judith Edge, corporate vice president for human resources, signed on with FedEx in 1983, when she was 22 years old, and worked up the HR ladder to become corporate vice president for global human resources in 2007. Edge earned her master’s degree in business administration from Heriot-Watt University in Edinburgh, Scotland.


    “The MBA has been absolutely critical to my success,” Edge says. “HR has come a long way, but the MBA brings credibility to my role as a business leader. I can sit with finance and build out a business case.”


    “You need an MBA to speak the same language as the other business functions,” she says. “For example, in the marketing courses, you learn about the models that marketing uses. That allows you to more fully understand your own marketing people, and some of the models can be incorporated into compensation plans.”


    Edge reports to Frederick Smith, one of the country’s most respected CEOs. “He gives you total autonomy and has complete faith in you to execute your assignment for the organization,” she says. Edge also sits on the nine-member strategic management committee, which includes Smith and his direct reports: the CEOs from the four operating companies, the CFO, the chief information officer, the head of marketing and communications, and Edge. “I have a very tight relationship with finance and legal,” she reports. “You can’t operate in a silo in a company that is as complex as FedEx.”



“HR has come a long way, but the MBA brings credibility to my role as a business leader. I can sit with finance and build out a business case.”
 —Judith Edge, corporate vice president for human resources, FedEx

    To keep HR focused on business objectives, Edge shadows Smith. “Fred sets the MBOs [management by objectives] every year and then I set mine,” she says. Edge also oversees different task forces on specific issues within HR to pull in the operating companies and make sure that HR objectives are consistent across the organization. “We leverage best practices from corporate and all the operating companies,” she notes.


    Edge manages leadership development for the top 400 positions in the company and ensures the company’s color-coded leadership pipelines are full. The FedEx “purple” pipeline, for example, feeds high-performing managers into director positions after a yearlong training program. “The objective is to help them think broadly and strategically,” Edge says.


    An outside firm assesses the managers’ leadership skills before and after the program, and Edge tracks how many are promoted within 18 months of program completion. More than 90 percent of the company’s managerial and executive positions are filled from within.


    Edge also oversees the “Excel” program for high-performing vice presidents, which reinforces cross-functionality throughout the organization. In the six-month program, vice presidents learn about the differences in the com- pany’s various operating units and complete an international assignment in China to broaden their understanding of differences in political environments.


    The FedEx HR function includes a team at each of the four operating companies plus a team at its corporate headquarters to develop strategy and thread it through the operating companies. In the FedEx operating companies, the HR leaders have law degrees or MBAs. In looking at a successor for her own position, Edge notes, “I would see an MBA as a big plus.”


Workforce Management, June 23, 2008, p. 32 — Subscribe Now!

Posted on June 27, 2008June 27, 2018

AMA Releases Medical Tourism Guidelines

The American Medical Association hasestablished guidelines for medical tourism that identify specific steps that should be taken by employers, insurers and others responsible for coordinating medical care and travel outside of the United States.

   Among other things, the new principles state that medical care outside of the country be voluntary; that patients should only be referred for care at institutions that have been accredited by recognized international accrediting bodies; that coverage include the costs of necessary follow-up care in the U.S.; that transfer of medical records be consistent with the Health Insurance Portability and Accountability Act; and that patients choosing to travel outside of the U.S. for medical care be informed about the potential risks of combining surgical procedures with long flights and vacation activities.

   The AMA decided to adopt these new principles in response to the growing popularity of medical tourism. The AMA estimates that as many as 150,000 Americans each year seek health care overseas, primarily because it costs significantly less than receiving such care in the United States.

   To ensure that employers, insurers and others that facilitate medical tourism adhere to the AMA’s principles, the Chicago-based organization of medical professionals plans to introduce model legislation for state lawmakers to consider.

    For more information about the AMA’s new medical tourism guidelines,click here. 

Posted on June 27, 2008June 27, 2018

Retaliation for Job-Protected Absences

In 1997 Deborah Lewis became a bookkeeper for Freeburg (Illinois) Community School District No. 70. In 2004, school superintendent Rob Hawkins reduced Lewis’ hours and allowed her to occasionally work from home to care for her terminally ill mother. At an October 2004 school board meeting, Hawkins told the board that Lewis’ leave was an inconvenience to the school and that, while she had performance problems, the district could face Family and Medical Leave Act liability if she were terminated. At a November 2004 board meeting, members described the FMLA as “ludicrous,” and instructed Hawkins to build a case against Lewis.

   In March 2005, Lewis received a mixed performance review indicating issues with her job performance during the period she was working a reduced schedule. Later, Lewis received a letter giving her the option to resign or accept a demotion because she “missed too much work to meet the essential functions of [her] present assignment.”

   Lewis filed suit in the U.S. District Court for the Southern District of Illinois under the FMLA and state law. The court granted summary judgment in favor of the school district, finding insufficient evidence to state a claim. Lewis appealed.

   The U.S. Court of Appeals for the 7th Circuit reversed on Lewis’ FMLA claims, stating that she need only prove “protected conduct was a substantial or motivating factor” for her demotion. There was sufficient evidence to infer that “while fully cognizant of their obligations to Lewis under the FMLA, [the board] decided not to inform her of those rights” but instead build a case against her in order to justify her termination. Lewis v. School District #70, 7th Cir., No. 06-4435 (4/17/08).

    Impact: Adverse action against an employee for taking job-protected FMLA leave is unlawful. Employers are advised that eligible employees should be afforded FMLA leave, which may include a reduction to an employee’s workload.


Workforce Management, June 23, 2008, p. 12 — Subscribe Now!

Posted on June 26, 2008June 27, 2018

Older Workers Way Off on Retirement Requirements, Survey Finds

Despite employer efforts to educate workers, many pre-retirees remain pretty clueless about their future financial security—or lack of it.


Insurer MetLife found that nearly seven in 10 retirees overestimate how much they can draw down from their savings each year while still preserving their principal. In fact, 43 percent of pre-retirees said they believe they can withdraw 10 percent or more from savings each year while still maintaining their nest egg. Most retirement experts suggest withdrawing no more than 4 percent annually.


MetLife surveyed 1,216 workers ages 56 to 65. Surprisingly, six out of 10 respondents underestimated their own life expectancy. About half low-balled the amount of income they’ll need after they retire.


Those are troubling results.


In many cases, retirees will simply outlive their savings. Sandra Timmermann, director of the MetLife Mature Market Institute, which helped compile the survey, said the fact that so many pre-retirees overestimate how much they can spend down from their retirement savings annually “should serve as a wake-up call for pre-retirees and advisors alike.”


One encouraging sign: About 60 percent of those who took the survey said they were seeking financial advice on such products as 401(k)s, retirement accounts and long-term-care insurance.


Filed by Matthew Scott of Financial Week, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on June 26, 2008June 27, 2018

Gas Prices to Hit $7 a Gallon by 2010, CIBC Forecasts

A new energy report from CIBC World Markets predicts gas prices will approach $7 a gallon by the summer of 2010, the same year oil prices will likely reach $200 per barrel.


Not surprisingly, CIBC sees wrenching problems for automakers in a $7-a-gallon world. Owning and driving a car will become too expensive for millions of lower-income Americans, forcing them to look for cheaper means of transport.


As a result, car sales will plummet. That trend has already started to play out as gas prices have risen. Sales of automobiles, which averaged close to 17 million units per year over the first half of the decade, have dropped to 14 million units a year.


CIBC expects sales to drop to as low as 11 million units a year by 2012, the lowest level since the early 1980s.


“The market share of light trucks, SUVs and vans will be literally halved, reversing the trend of the last 15 years,” said Jeff Rubin, chief economist and chief strategist at CIBC World Markets.


Auto manufacturers have already begun offering cash-back incentives and zero-percent financing as light trucks and SUVs pile up in auto showrooms. Last week, Ford cut truck production and delayed the launch of its redesigned best-selling F-150 pickup truck in anticipation of lower sales this year.


Rubin said higher gas prices will cause Americans to cut back on driving and turn to more fuel-efficient vehicles. The report predicts that about 10 million vehicles will be forced off the road because of the high cost of driving.


“About half of the number of cars coming off the road in the next four years will be from low-income households who have access to public transit,” he said.


Americans are indeed driving less this year.


Rubin said average miles driven will likely fall by 15 percent this year. He added that gasoline consumption in the U.S. has declined sharply since the start of this year and should show the first annual decrease in 17 years.


Filed by Matthew Scott of Financial Week, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on June 26, 2008June 27, 2018

IRS Provides Guidance on HSA Issues

Internal Revenue Service guidance released Wednesday, June 25, provides answers to many health savings account-related questions raised by employers and consultants.


In particular, Notice 2008-59 makes clear that employees who receive free or employer-subsidized health care services from an employer’s on-site medical clinic generally will be eligible to participate in a high-deductible health insurance plan linked to an HSA so long as the clinic does not provide significant medical services.


In an IRS-provided example, a clinic operated by a manufacturer that provides such free services as physicals, immunizations, allergy injections, nonprescription painkillers and treatment of plant accidents would not be considered as providing significant medical services, so employees would eligible for HSAs.


The guidance also makes clear that employers who erroneously make contributions to an HSA on behalf of employees not eligible for HSAs can request that the financial institution holding the money return it. If the money is not recovered by the end of the tax year, then the amounts must be included as wages on an employee’s W-2 form for the year in which the contributions were made.


In addition, according to the guidance, while an HSA account holder can take a distribution to pay for Medicare Part D prescription drug premiums, if the account holder is not age 65, distributions would not be allowed to pay for Medicare premiums for a spouse who is age 65 or older.


Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

Posted on June 24, 2008June 27, 2018

SHRM Looks Outside Organization for New CEO

In selecting a new chief executive, the Society for Human Resource Management will not promote from within its own ranks.


China Miner Gorman, SHRM chief operating officer, will become acting CEO when Susan Meisinger steps down on June 30. In an interview with Workforce Management at the SHRM Annual Conference & Exposition in Chicago on Tuesday, June 24, Gorman indicated she is not a candidate for the top position.


“The board was going in a direction that took them outside of the SHRM organization,” she said. The board is expected to make a decision by August 1.


Gorman was appointed COO in August 2007. She was previously president of DBM North America, a human resource management consulting firm. Before that, Gorman was president of Lee Hecht Harrison, a national human resources and outplacement company.


There is precedent for SHRM elevating its COO to the top position. Meisinger served as COO before she was named president and CEO in 2002.


Meisinger, who has served in various SHRM roles for more than 20 years, announced her retirement in January, saying she needed to spend time with ill family members.


The COO role was left open until Gorman arrived. Gorman said she is not disappointed to be staying where she is.


“I’ve got the best job I’ve ever had,” she said.


She has plenty on her agenda. Membership services, professional and business development, professional knowledge, publishing and new media, and external affairs report to Gorman.


“The number of moving parts at SHRM has really, really grown,” Gorman said. SHRM, the world’s largest HR organization, has 245,000 members. In 2007, it generated $105.4 million in revenue.


In the six weeks or so that she will be acting CEO, Gorman says she will not make any changes.


“I’m a caretaker,” she said. “We won’t be starting any new initiatives. Sue has built a world-class organization.”


As SHRM looks for a new leader, the challenge will be to find someone with a wide and deep knowledge of the field who also has executive ability.


Mike Losey, Meisinger’s predecessor as SHRM chief, said many HR professionals have made contributions in the C-suite of large businesses, but they didn’t make the final decisions.


“They may have been in the room, but they’ve never run a $100 million organization,” he said.


The new executive also will have to cope with the vagaries of governing a professional association, where board turnover is high.


“The CEO is the link of continuity,” Losey said. SHRM’s effectiveness “requires a strategic plan that is not subject to whimsical changes.”


Losey praised the job Meisinger has done and said her influence will endure.


“The strategic plan is Sue’s plan,” he said. “The fact you hire a new CEO doesn’t mean that you throw the old plan out.”


—Mark Schoeff Jr.


Click here for complete SHRM 2008 coverage
 

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