No matter the perception of the messages, the reality is there's no dearth of sobering news as it relates to the U.S. health care industry, benefits and health-related issues in general.
As some companies wrestle with how paternalistic to be during times of economic uncertainty, employees are looking more and more to their employers to be the voice of reason amid the chaotic messages. There is a sense that their companies are (or should be) the caring and educated "parents" that will speak to the issues at hand and calmly offer clear, simple solutions.
Among the issues that have hit the headlines recently:
The H1N1 virus (swine flu)
At presstime, the number of U.S. swine flu-related deaths was up to five, and the worldwide death toll was less than 100.
Obviously, this is bad news; however, the fact that there are about 36,000 deaths in the U.S. annually related to the common, seasonal flu seems to escape the headlines. While the media and politicians may have slightly overblown the outbreak at least initially, it's important to separate media hype from what the CDC and other government agencies are recommending.
Help employees maintain perspective and take the necessary precautions, empowering them to overcome the risks. Give them practical guidelines, such as frequent handwashing and staying home if they are sick, but also capitalize on the captive audience by reminding them that this is a great time to think about prevention in general. Promote your company's upcoming flu-shot campaign and any preventive benefits available through your health plan to stave off potentially worse threats to their health.
Social Security - projected to be bankrupt by 2037
While few in corporate America are totally ignorant to the rapidly declining state of Social Security, it has always seemed too far in the future to worry about.
Political radio pundit Jamie Dupree recently commented that federal budget troubles and Congress' fear of offending large constituencies are among the reasons the government has not taken steps to rescue these foundering programs. "Those in Congress are hardly different from the rest of us. We try to plan our financial futures, but usually don't really change our habits until disaster strikes or is about to clang us in the head like a ballpeen hammer between the eyes," Dupree wrote on his blog.
We see this behavior clearly in the much more troubling percentages of employees not saving for retirement. In recent times, more and more people have realized that monthly Social Security checks will not by themselves provide adequate retirement security. Only when coupled with private retirement plans can Social Security help with the exponential rise of health care costs and the ever-increasing cost of living.
While extremely disheartening, concern over the impending loss of this government program shouldn't rival the concern associates should have in their own procrastination to prepare for retirement.
It's our job as benefits professionals to temper the troubling media messages with more education about the company's 401(k) plan, free financial planning tools and other resources. Provide projection statements to those enrolled and not enrolled in the 401(k) plan to show their savings potential if they increase their contribution rates, begin contributing even 1% or better diversify their investment mixes. It's still a tough message, but tough messages mixed with positive encouragement are part of any good parent's job description.
Medicare - insolvent by 2017
Once forecasted to be insolvent by 2019, the feds now predict 2017 to be the year the ballpeen hammer falls on Medicare. "The main reason for the change is that with fewer Americans working, less money is being funneled into the Medicare and Social Security trust funds," Dupree wrote.
Before this sobering reality hits with full force those nearing age 65, it's a great time to execute your own pre-emptive strike. The only true combatant against paying a premium for health care and prescription drugs in the golden years of life is to make every effort to avoid contracting the chronic illnesses that drive these costs. Help employees understand how critical it is to take advantage now of preventive benefits and healthy living programs your company offers . Until there are retiree medical plans that are not contingent on the failing Medicare program, the surest way to build a solid foundation for the future is to couple prevention with saving as much as possible in the company's 401(k) plan.
These are the messages to focus on as the media pounds away at our dwindling government programs.
Contributing Editor Jill Hudgins is the manager of benefit communications at The Home Depot, the world's largest home-improvement retailer, operating more than 1,500 stores across North America.
