Monday, June 10, 2013

New LIMRA research shows important benefits trends

Employers will continue to shift benefits costs to their employees over the next few years. And health benefits are likely to continue to slowly erode as health care reform is implemented. Those were two of the findings in new research LIMRA recently shared with Colonial Life and Unum US business partners. The sessions gave employees in Chattanooga, Columbia, Portland and Worcester an advance look at preliminary results from several new surveys. LIMRA is a worldwide research, consulting and professional development organization and a long-time partner in our company’s research efforts.

According to the research, about half — 52 percent — of employers with 100 or more workers expect a negative effect from health care reform, yet 49 percent haven’t started any long-term planning for it.
The majority — 59 percent — have increased or plan to increase employee contributions toward the cost of medical coverage in the next three to five years. About the same number say they have required or will require employees to pay a greater share of the cost of some or all of their nonmedical welfare benefits in the next three to five years. Nearly as many — 54 percent — have increased or plan to increase deductibles and copayments in that time frame.

However, the majority of employers surveyed say health care reform will have little to no impact on their ability to offer medical or nonmedical benefits. The research defined nonmedical benefits as insurance coverage such as life, disability, accident, critical illness, dental and vision.

Smaller employers seemed a bit more optimistic about the effects of health care reform, with approximately half saying they expect little to no impact on their overall business, their employees, or their ability to offer nonmedical benefits in the next three to five years. But smaller employers are feeling the pain of rising health care costs: It was the number one issue facing those who offer benefits, cited by 60 percent of those surveyed. More than a third — 38 percent — of these employers say they’ll consider switching nonmedical benefits to voluntary coverage to help control rising benefits costs.

“The small business marketplace will continue to feel the brunt of health care cost increases, which, in turn, could further limit benefit offerings,” the report said.

Small employers may have a knowledge gap about benefits options, according to the survey. Of those who don’t offer benefits, 65 percent say it’s because the business can’t afford them, and 40 percent say they don’t have enough employees to qualify for a plan. In fact, employers can offer voluntary benefits such as those offered by Colonial Life and Unum at no direct cost to the business. 

“Continually monitoring employers’ response to health care reform and anticipating their plans for what benefits and how much funding they will offer employees is critical for our entire organization,” said Roz Metzger, director of corporate research. “We have to carefully position our portfolio and access to choices considering the marketplace buzz about future sourcing of medical and nonmedical benefits.”

Wednesday, May 29, 2013

Unum’s new group hospital indemnity helps ease the financial pain of hospital costs

The rising costs of health care mean one trip to the hospital could cause a serious financial setback due to out-of-pocket costs not covered by a typical medical plan, such as co-pays, co-insurance and deductibles.

To help protect employees from the financial costs of unexpected health events that result in hospitalization or other treatment, Unum (NYSE: UNM) has launched a new group hospital indemnity product.

Unum’s group hospital indemnity product is designed to provide a lump sum benefit when an individual is admitted to the hospital. The coverage offers a rich choice of employer-selected options, including a daily benefit for hospital stays or intensive care confinement.

According to a Health Care Cost Institute report published last year, called Health Care Cost and Utilization Report: 2011, the average price for inpatient hospital admissions rose 5.3% in 2011, outpacing the rate of inflation at 3.2%.

“Employers are struggling to manage the increasing costs of health care and, as a result, are redesigning their medical plans to include more employee funding and increased levels of co-payments and deductibles,” said MaryAnn Beliveau, assistant vice president of product and market development for Unum. “Group hospital indemnity coverage gives them a way to relieve some of that financial pressure by providing their employees with access to reasonably priced coverage that can supplement their medical plans and help them financially when they face a hospitalization.”

According to Marilyn Finley, Unum’s director of product and market development, group hospital indemnity coverage is a great option for families or individuals at all stages of life, whether they would struggle to cover hospital costs due to a lack of savings or because they are facing a catastrophic health event.

“In the event of a major illness or injury which results in hospitalization, group hospital indemnity offers significant financial protection,” she said. “It pays out a lump sum regardless of the cost of care, which can be used to cover co-payments, deductibles and everyday expenses.”

Other employee advantages include:

  • Hospital admission benefit included in all plan designs, from $500 to $5,000
  • Family-friendly design may include the option for covered employees to add family members
  • A wellness benefit is available to encourage better overall health management
  • No physical exam is required for eligibility.

In addition to the financial protection group hospital indemnity insurance gives employees, the product also has many employer advantages, including:

  • Flexible employer-elected plan designs complement the medical plan employers offer their employees, including an HSA-compatible design
  • Plan designs can include outpatient and inpatient surgical benefits and a diagnostic procedure benefit to tailor a plan that fits workplace needs and provides financial protection
  • Coverage is 100 percent employee-paid
  • Superior education and enrollment support.

“A stay in the hospital can be the source of great stress and worry for both patient and family,” said Finley. “Group hospital indemnity coverage gives employees an easy and affordable way to protect both their family and their finances.”

Monday, May 20, 2013

Unum's 2013 Corporate Citizenship Report

Every day, Unum employees show their commitment to meeting customer needs. But we also place a great deal of importance on supporting our communities, whether it’s through volunteering our time or donating money to charity efforts.

This year’s Corporate Citizenship Report highlights some of the work our employees are doing in their communities, as well as the importance our company places on sustainability, good governance and financial protection benefits education.

“We believe strongly in the value of what we do to help our customers and communities, as well as all of our stakeholders,” CEO Tom Watjen said in the report’s opening letter. “We’re there for our customers during some of the most difficult times of their lives to provide the financial protection benefits they need. Just as importantly, we’re committed to being a good corporate citizen and neighbor by helping making our communities better places to live and work.”

As part of the company’s efforts to protect the environment, a printed copy of this year’s report will not be sent to employees. An interactive microsite is available on Inside and on Unum’s external website.

Wednesday, May 1, 2013

A Health Care Reform Roadmap

Employers will soon face some critical health care decisions, but most haven't made any long-term plans.  Now, you can advise your clients on a competitive, reform-ready benefits strategy — with these easy-to-use educational tools:

A health care reform roadmap: Key steps and strategies for 2013 and beyond »
This new guide outlines the reform requirements that impact employers the most — such as the "pay or play" decision, meeting health plan requirements, Health Insurance Exchanges and reporting to the IRS. Share it with clients today.

Sunday, April 21, 2013

You can't predict the future, but you can prepare for it

Protecting your loved ones and your way of life means protecting your income from the unexpected. Illness, injury, and loss can mean serious financial hardship.

Explore this page to learn more about better benefits at work:

http://unum.me/14HpZQw

Saturday, April 6, 2013

Protecting the earning power of American workers

Scott Maker, senior vice president of Government Affairs at Unum, discusses how new partnerships and data are driving the important conversation of income protection. Maker also shares new research that, for the first time, quantifies the value of disability benefits.

http://files.parsintl.com/eprints/73128.pdf

Monday, March 4, 2013

Unum CEO Tom Watjen on CNBC: Insuring Future Growth

CEO Tom Watjen joined CNBC’s Squawk Box last Thursday morning to discuss the need for our products in the midst of a “tepid” economic environment. “We have found demand for the product despite the soft economic conditions,” Tom said.

The discussion also addressed future growth and potential road blocks for our company and industry. Watch the video here and see what else Tom had to say.

Tuesday, February 5, 2013

Unum posts strong fourth quarter earnings results

Unum reported fourth quarter earnings today which showed solid earnings per share growth and a continuation of positive trends seen throughout the year. This is the seventh consecutive year that Unum has shown EPS growth.

The company reported after-tax operating income of $225 million, or 82 cents per share, compared to $228.2 million, or 78 cents per share, in the fourth quarter of 2011.

Net income was $233.9 million, or 85 cents per share, compared to a net loss of $369 million, or $1.26 per share a year ago, due mainly to charges the company took in its Closed Block business which created a one quarter loss.

Earnings in the U.S. business segment rose 2.3%, as premium income grew 3.2%. The benefit ratio--a measure of claim payouts versus premiums--improved to 84.5% from 84.7%, due in part to fewer claims for group long-term disability

During the earnings announcement, CEO Tom Watjen highlighted the strong performance of the company’s investment portfolio and how that has helped Unum through recent economic challenges, including a continued low interest rate environment.

Results reported from the fourth quarter include:
  • Operating income for Unum US increased 2 percent to $212.2 million, with premium income rising by more than 3 percent. The company continued to enjoy solid profitability and margins across most product lines this quarter.
The results continue the company’s “formula” of staying disciplined, delivering on commitments and maintaining a solid financial foundation to both support the business and return capital to shareholders. During the quarter, Unum repurchased another $100 million of stock, bringing the company to $500 million for the full year and more than $2 billion since 2007.

Wednesday, January 23, 2013

Unum benefits in a post-reform era

Creating a post-reform benefits strategy

It’s expected that the cost of health care insurance will continue to rise. In fact, employers say health premiums will increase by another 7.2% in 2012 — nearly twice the rate of inflation.

As a result, nearly two-thirds of employers surveyed expect to use a wider variety of cost-sharing strategies:2

53% plan to increase the percentage that employees contribute to the premiums

39% plan to increase in-network deductibles

73% will offer employees at least one consumer-directed health plan in 2012, an increase from 61% offering a CDHP in 2011

The supplemental safeguard

These strategies can help businesses effectively manage costs, but they may leave employees financially vulnerable. In today’s challenging economy, a single illness or injury can have a profound impact:

41% of working age adults report they have had to go without medical treatment due to costs.

40% say they are having trouble paying off medical bills.

That’s why supplemental health benefits — particularly accident and critical illness — are growing in popularity. These 100% employee-paid plans make it simple for employees to choose the important coverage they need, with little or no impact to the company budget.

No impact on “Cadillac tax”

These benefits are also reform-friendly for employers. As long as the benefits are HIPAA-excepted, the premium is not part of the calculation used to determine whether a health plan exceeds the “Cadillac” excise tax threshold.

That tax, scheduled to begin in 2018, will place a 40% excise tax on plans with premium that exceeds set government thresholds. It will be levied on insurers (or, in self-insured plans, directly on employers). It is anticipated that insurers will pass some of this tax expense onto their customers.

77% of employers surveyed say they are somewhat to very concerned about this pending tax.5

These Unum benefits are all HIPAA-excepted. Click on the benefit to learn more.

Accident
Critical illness
Disability
Life
MedSupport