Benefits August 24, 2007

Employers' Anti-Drinking Attitude Trickles Down to Workers

August 24, 2007 (PLANSPONSOR.com) - Employees at jobs where social drinking is strongly discouraged were 45% less likely to be heavy drinkers than those at companies that are cavalier about drinking, according to a recent survey by the Society for Human Resource Management (SHRM).
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The survey of more than 5,300 workers found that workers at companies with more stringent no-drinking policies were54% less likely to be frequent drinkers and 69% less likely to drink during the workday.

“At work” drinking was defined as: as having consumed beer, wine or liquor during the workday or two hours before going to work; drinking during lunch or a work break; drinking while working; drinking before driving a vehicle on company business; or drinking at a company-sponsored event in the 30 days prior to the study.

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According to the survey, 19% considered themselves heavy drinkers outside of work. Heavy drinking was defined differently among men and women: five or more drinks in one day in the 30 days before the survey for men, and four or more for women.Eight percent said they were frequent drinkers, which was defined as consuming beer, alcohol or wine five or more days of the week.

Smokers and workers age 35 and younger are most likely to drink.

Compliance August 23, 2007

CA Assembly Makes Further Changes to Health Care Legislation

August 23, 2007 (PLANSPONSOR.com) - California employers might have to offer health coverage or contribute 7.5% to a state-run purchasing pool sooner than they thought, according to further amendments to pending legislation.
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The bill ( A.B. 8 ) was amended for the seventh time on August 20 in the Assembly, and will move up the date employers will have to abide by the rules to January 1, 2009.

President Pro Tem Don Perata must now reconcile the two versions of the bill before sending it off to Governor ArnoldSchwarzenegger. Perata unveiled his version of the proposal in December 2006, which would give employers a choice of providing health insurance to their employees or contributing to a state purchasing pool – dubbed the Connector – that would then negotiate the best health coverage rates (See Legislation Threatens to Force CA Employers to Pay for Health Care  and  CA Senator Proposes Worker Health Care Plan).

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It must clear both houses of the Legislature by September 14, the last day of the regular legislative session.

The most recent amendments say that employers would be required to actually begin purchasing coverage for their workers by October 1, 2009, or pay into the California Cooperative Health Insurance Purchasing Program (Cal-CHIPP). The pool will be administered by the Major Risk Medical Insurance Board (MRMIB).

Some of the amendments to the measure include:

  • Cal-CHIPP must provide three “uniform benefit plan designs” that include various benefit levels, deductibles, co-insurance factors or co-payments and annual limits on out-of-pocket expenses.
  • Revenues would be deposited into the California Health Trust Fund created under A.B. 8, titled the California Health Care Reform and Cost Control Act.
  • MRMIB would be able to provide prescription drug coverage for Cal-CHIPP enrollees by contracting with health plans or insurers, pharmacy benefits managers, or by purchasing medications directly through the state’s prescription drug purchasing program.

The amendments also require employers to set up a cafeteria plan under Section 125 of the Internal Revenue Code (See   IRS Puts Out Updated Cafeteria Benefit Plan Proposed Regs ). This would allow employees to pay premiums for coverage to the extent that those payments can be excluded from the employee’s gross income. Failure to set up a cafeteria plan would come at a $100 penalty for each employee and $500 fine if the employer willfully refuses to offer the plan.

The amendments also force California employers to file quarterly returns with the state’s Employment Development Department (EDD) reporting wages and health expenditures for the prior quarter. Employers paying into purchasing pool would be required to continue doing so for a minimum of two years.

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