final proof

Volume 1 : Issue 3

Nancy Blair-BonkLeads FedEx

Express Employee BenefitsHEALTH & WELFARE

Get Readyfor HEALTH CARE

Exchanges

DEFENDINGUnemployment Claims

Northeast ArkansasSHRM BOARD

GINA Discrimination

L&PANNUALBENEFITSSURVEY

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Kiesewe�er Wise Kaplan Prather, PLC3725 Champion Hills Drive • Suite 3000 • Memphis, Tennessee • 38125 • 901-795-6695 • www.kiesewe�erwise.com

Cer�fica�on as a labor and employment specialist is not currently available in Tennessee.

The largest law firm in the Mid-South that devotes its practice to representing managementin all areas of labor relations, employment law and human resource consulting

From right here, one of the biggest on the job anywhere.

www.HRprosMemphis.com 3

Features4 Letter from the Editor5 Health Care Reform

Defining the Role of Health Care Exchanges

8 Tennessee Employment LawTennessee’s New Summary Judgment Standard Pt. 2

14 the HR Scene and Events Calendar

19 Profile: Nancy Blair-Bonk22 Who’s Who?

HR Professionals as Benefits Managers

Next IssueCompensation Performance Management

www.HRprosMemphis.com

EditorCynthia Y. Thompson, MBA, SPHR

PublisherThe Thompson Firm LLC

HR Consulting and Employee Development

Art DirectionBrantley Bowden & Co.

Contributing WritersNancy Blair-Bonk

V. Latosha Dexter, SPHRJonathan C. Hancock

Jim HorrellWhitney M. HarmanLisa Lichterman Leach

Lisa MayAmber Isom-ThompsonCristie Upshaw Travis

Board of AdvisorsAustin Baker

Jonathan C. HancockRoss Harris, CFO, CFADiane M. Heyman, SPHRJohn E. Megley III, PhD

Terri MurphySusan NiemanRobert Pipkin

Michael R. Ryan, PhD

Contact HR Professionals of Greater Memphis:To submit a letter to the editor, suggest an idea for an article, notifyus of a special event, promotion, announcement, new product orservice, or obtain information on becoming a contributor, visit ourwebsite at www.HRprosMemphis.com. We do not acceptunsolicited manuscripts or articles. All manuscripts and photos mustbe submitted by email to [email protected]. Editorialcontent does not necessarily reflect the opinions of the publisher, norcan the publisher be held responsible for errors.

HR Professionals Of Greater Memphis Magazine is published everymonth, 12 times a year by The Thompson Firm, LLC. Reproductionof any photographs, articles, artwork or copy prepared by themagazine or the contributors is strictly prohibited without prior writtenpermission of the Publisher. All information is deemed to be reliable,but not guaranteed to be accurate, and subject to change withoutnotice. HR Professionals Of Greater Memphis Magazine, itscontributors or advertisers within are not responsible formisinformation, misprints, omissions or typographical errors.

© 2011 The Thompson FirmThis publication is pledged to the spirit and letter

of Equal Opportunity Law.

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Us!

Departments7 Benefits

FedEx Express Benefits

9 Tennessee Employment LawNew Legislation Makes it Easier forEmployers

13 Minimize Risk with Post-Employment Screening

17 LeadershipDr. Steve Perry on Memphis Schools

21 Perceived Value of Benefits22 Advocacy

Health Care Reform

24 2012 Timeline for HealthCare Reform

25 EEOC UpdateGINA Discrimination Update

Columns16 SHRM-Memphis Bulletin20 Meet the North East

Arkansas SHRM Board

21 Greater Memphis EmployeeBenefits Council

23 Small Biz Best Practices4 Steps You Can Take NOW To GetReady for Health InsuranceExchanges

Industry News27 Breaking News

Cost of Living Increases for DefinedContribution Plans

ContentsHuman Resources & Management Expertise

75%WOULD RATHERPay More Out of Pocket

than Have TheirBenefits Reduced

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Welcome to our new subscribers! If you are a first time reader, our mission is to serve the HR

professional and advance the profession. We reach over 5500 members of the Society for

Human Resource Management (SHRM) in Tennessee, Mississippi, and Arkansas. In

addition, the Greater Memphis Chamber of Commerce members are included in our

distribution along with the top 100 CEOs in the Mid-South area. HR Professionals of

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one of the largest chapters in the country.

We cover topics on every discipline of the Human Resources function. These

are topics of importance not only to HR professionals, but all business leaders.

It is our goal to cover the current hot topics and bring you solutions to the

problems that keep you up at night.

This issue focuses on benefits and health care reform. Our cover this month is

Nancy Blair-Bonk, Managing Director of Employee Benefits Health and Welfare

for FedEx Express. She has also written an article about Fed Ex benefits that will serve as a benchmark of comparison for you as

you design your 2012 benefits program. We also bring you the results of the recent Lipscomb and Pitts Annual Benefits Survey

that will provide you with national and Mid-South benchmarks for the most popular benefits of 2011. We look forward to your

comments about this month's articles. Please contact us at

[email protected] and let us know if you found this

issue helpful in your annual benefits planning process.

I was so excited to be invited to the annual Urban League Luncheon,

and to have the opportunity to meet Karla Davis, Commissioner of

the Tennessee Department of Labor and Workforce Development!

What an honor to have a photo “opp” with her! She was the

keynote speaker at the luncheon, and it was so inspiring to hear

what she and her staff are doing for our displaced workforce across

the great State of Tennessee as we work our way out of this

recession.

October and November were action-packed; and I thank each of

you who invited me to your events so that we can share them.

Remember to send your news and announcements about events

and meetings to [email protected]. In this season of

Thanksgiving, I extend a special word of thanks to our Sponsors

and to SHRM-Memphis for their continued support.

Cynthia Y. Thompson | [email protected]

on the Agenda.a note from the Editor

Urban LeagueLuncheonKarla Davis, Commissioner of the TennesseeDepartment of Labor and Workforce Development!


of Healthcare Exchanges

DEFININGthe RoleB Y J A M E S H O R R E L L

A key element of the healthreform legislation (the PatientProtection and Affordable CareAct or the PPACA) is theestablishment of healthinsurance Exchanges. How theExchanges will operate, andhow they will influence themarket for health insurance,will be importantconsiderations for employersand employees.

BackgroundThe PPACA imposed a number ofrequirements in regard to health insurancecoverage that apply to both individuals andemployers. Chief among these are therequirement that individuals be coveredunder plans that meet minimum standards,and the requirement that employers offerplans that meet these minimum standardsand which are affordable (as defined by thelaw). Failure to meet these requirementsresults in penalties which can be substantial.

The Exchanges are intended to enableindividuals and small employers to accesscoverage that meets the standards set by thelaw (and thereby avoid the penaltiesmentioned above). However, the Exchangeswill also fulfill a number of additionalimportant functions.

Exchange FunctionsBeginning in 2014 each state will have atleast one Exchange available to individuals,and one Exchange available to smallemployers (although it’s possible for a singleExchange to serve both). These Exchangesare intended offer more uniform coverage

choices, improve quality, reduce cost, andprovide a national mechanism to deliver costsubsidies for lower-income individuals.

More specifically, they will:

1Certify that the plans offered by the

insurance companies in the Exchangemeet the minimum standards as definedby law (“qualified health plans”).

2Determine whether individual

applicants qualify for the Exchange, orqualify for Medicaid, CHIP or othergovernmental programs.

3Determine whether individuals will

qualify for tax credits (which will offset thecost of Exchange premium) and cost-sharing reductions (which will reduce theindividual’s out of pocket expenses whenclaims are incurred).

4Facilitate enrollment in qualified health

plans by both individuals and smallemployers

BENEFITS


5Help individuals compare the services

and costs of competing qualified healthplans

6Collect and remit premiums from

individuals, and collect, aggregate, andremit premiums for groups purchasingcoverage through the small employerExchange. (The small employer Exchangeis known as the Small business HealthOption Program or “SHOP”.)

Exchanges will also develop websites, runcall centers, and develop on-line calculatorsto assist individuals with the purchase ofhealth insurance plans.

Exchanges and EmployersThe “SHOP” Exchanges are intended toassist small employers in arranging coveragefor their employees. In calendar years 2014and 2015 a “small employer” is an employerwith no more than 100 employees (althoughstates may elect a lower limit). In 2016 the100-employee limit would apply in all states.In 2017 states may optionally open theSHOP to larger employers.

There are no final regulations that definehow group coverage might be arranged.Options include a traditional grouparrangement (where the employer selects asingle qualified health plan to be offered toall employees) or the option of allowingemployees to select from any of the qualifiedhealth plans available in the Exchange.Employers may permit employees topurchase Exchange coverage using pre-taxcontributions (through a cafeteria plan); thisoption is not available to individualspurchasing coverage in the Exchange.

Implications for employeesA number of PPACA provisions have adirect bearing on individuals, including theelimination of a pre-existing conditionlimits and the imposition of substantialrestrictions on rescissions. The availabilityof Exchange coverage should help eliminatemuch of the confusion that typicallysurrounds the purchase of health insurance.The availability of tax credits and reducedcost sharing should make coverage muchmore affordable for lower-incomeindividuals.

However, individuals that have access to“affordable” employer-sponsored coveragethat meets the minimum PPACArequirements cannot qualify for tax creditsor reduced cost sharing, even if theypurchase coverage through the Exchange.An affordable plan is one that charges nomore than 9.5% of household income forsingle coverage (and many employer planswill meet this standard). Some lower-paidemployees, particularly those coveringdependents, would prefer the advantages ofthe Exchange, but will be unable to accessthe tax credits and reduced cost sharing ifthe employer’s plan is “affordable”.

Adverse selection may also influenceExchange pricing for individuals. Oneconsulting firm (Oliver Wyman) hasconcluded that the Exchange requirementswill increase premiums overall due in part tothe inclusion of individualswith health conditions. They have alsosuggested that the mandated “spread” inpremium rates (a ratio of no more than 3:1fromhighest to lowest rates based on age) willtend to increase costs for younger individuals.

Influence on employersEmployers will be required to communicatethe availability of Exchange coveragebeginning in 2013, and this will add morecomplexity to what for most employers is adifficult benefit communications challenge.Small employers that use the SHOP optionmay also experience additionaladministrative burdens(depending upon howthe SHOP programallows employeesand employers toaccess coverage).

While theExchange maypresent a viablealternative for employees(particularly lower-incomeemployees) employers will face a difficultdecision: offering “affordable” coverage thatmeets minimum requirements ensures thatthe employer will not be subject to taxpenalties (known in the PPACA as sharedresponsibility payments) but will also deprivesome lower-paid employees of theopportunity to receive tax credits andreduced cost-sharing through the Exchange.

Higher-paid employees are also affected:those with household incomes in excess of400% of the Federal poverty level (estimatedto be about $45,000 annually for a singleperson in 2014 and about $94,000 for afamily of four) would not qualify for any taxsubsidies. Depending upon age and otherfactors, purchasing coverage through theExchange may be much less attractive thanpurchasing coverage through an employer.

Where are we today?Tennessee was one of 48 states that appliedfor Federal grant money to study thefeasibility of implementing a state-sponsored Exchange program. Work on thisproject is ongoing, but the CommonwealthFund reports (as of September, 2011) thatTennessee is one of ten states that “has nothad any legislative activity to create the legalauthority to establish an Exchange”. (TheCommonwealth Fund Blog, “State HealthInsurance Exchange Legislation: A ProgressReport”, September 12, 2011) Eleven stateshave passed enabling legislation, while 12other states introduced legislation in 2011that did not pass. To complicate matters, itis likely that the Supreme Court will reviewat least one aspect of the PPACA (theindividual mandate) which may place theentire law in question. All of the Republicancandidates for president have indicated thatthey would attempt to reverse the law ifelected.

Despite this considerableuncertainty,

employers have arelatively limitedtime to create astrategy that isresponsive toemployer andemployee needs,

taking into accountthe “brave new world”

of health reform.

Jim Horrell, is a Principal with Mercer Health &Benefits, LLC, Tennessee Operations.

Send feedback to:[email protected]


HEALTH &WELLNESSA Large Employer’s Experienceand Perspective on Strategy

Since our employees have different healthneeds FedEx Express offers an array ofwellness programs. Programs include PersonalHealth Teams to help employees with lifestyleissues such as stress, tobacco or weightmanagement and Condition Managementprograms for Asthma, Diabetes,Hypertension, Low Back Pain and more.Additional programs include a 24-hour Nurseand Health Information Line, an EmployeeAssistance Program (EAP), a flu shotprogram and discounts on wellness programssuch as weight loss and gym memberships. Inthe Memphis area, FedEx Express has threeon-site fitness centers for employees toexercise and participate in group conditioningclasses.FedEx Express makes available resources thathelp employees become better consumers ofhealthcare services. For example, an employeemay contact a Personal Health Team advocateat the medical vendor to discuss a diagnosisor treatment options, or get support formanaging a chronic condition such as asthma,allergies or high blood pressure.ese nurses, health coaches and otherclinicians are dedicated to FedEx Express andwork with employees regarding nutrition andfitness and also provide tools and informationto help employees stay well and navigate thehealth care system.

B Y N A N C Y B L A I R - B O N K

FedEx Express is the world’s largest express transportation company, providingfast and reliable delivery to every U.S. address and more than 220 countriesand territories. Headquartered in Memphis, Tenn., FedEx Express has a globalworkforce of more than 140,000 employees. Of that number approximately30,000 work in the Memphis metropolitan area.

At FedEx Express, the health and wellness of its workforce is a top priority. Like other companies,FedEx is concerned about the rising cost of healthcare.

Healthcare spending in the U.S. represents approximately 17 to19 percent of the country’s totalGDP. A report by the consulting firm PriceWaterhouse Coopers and the Health ResearchInstitute (“Behind the Numbers”) concluded that healthcare cost for employers is expected toincrease 8 percent in 2011 and 8.5 percent in 2012.

ese statistics show why businesses are concerned about the long-term implications of healthcaretrends. Understanding the cost drivers behind the increase is critical to managing costs.

According to the National Health Center for Health Promotion and

Disease Prevention, for every 100 individuals in the U.S. workforce:• 60 are sedentary• 25 smoke; 10 have diabetes• 50 have high cholesterol; 24 have high blood pressure• 50 are distressed or depressed• 27 have active cardiovascular disease• Many of these individuals have two or more of these conditions

For an employer this means:• 20 percent of healthcare expenditures are attributable to preventable illness• 40 percent of healthcare expenditures are attributable to modifiable risk• 11,500 hours of productivity are lost each year due to health conditions

ese statistics demonstrate why FedEx, like many other employers, has implementedprograms to help prevent and manage illness.

BENEFITS


To further improve employee well-being,FedEx Express analyzes health claimsinformation and uses it to develop new andmore effective programs. For example,diabetes is an epidemic in the United States,afflicting a rapidly increasing number ofpeople each year. e disease affects not onlyquality of life it also consumes healthcareresources and accounts for absenteeism andloss of productivity.In 2006, FedEx Express developed andlaunched an incentive program for diabetesmanagement that offers diabetic employees a$50 incentive (which represents a partialrefund of co-payment costs) when they meetthree criteria: 1) enroll in the ConditionManagement Program for Diabetes; 2)undergo an annual retinal vision eyeexamination; and 3) have an annualhemoglobin A1C test.e program aims to motivate diabetics toreceive recommended care, thereby reducingcomplications, hospital admissions,emergency room visits and lower the cost ofhealthcare.As a result of implementing the program,diabetic emergency room visits by FedExExpress employees dropped 13 percent,inpatient admissions fell seven percent whilethe cost of a diabetic episode fell five percent.FedEx Express communicates regularly withemployees to tell them about the healthbenefits available to them. Communicationsinclude a quarterly benefits newsletter withhealth tips and benefit updates includingpharmacy, Employee Assistance Program, andwork/life balance information. ecommunications promote health and wellnessand provide tips and resources to improvehealth and manage chronic illness.FedEx Express understands the benefits ofhealth and wellness programs and iscommitted to promoting wellness to improvethe overall health of employees and theirfamilies.

Nancy Blair-Bonk is the Managing Director ofEmployee Benefits/Health and Welfare forFedEx Express, the world’s largest expresstransportation company.

In addition to her responsibilities at FedEx Express,Blair-Bonk participates in many national and localorganizations. ese include the National BusinessGroup on Health and the Conference Board’sResearch Council for Employee Benefits. She alsoserves on the leadership team for the MemphisBusiness Group on Health and the Healthy MemphisCommon Table/Robert Wood Johnson Foundation’s“Aligning Forces for Quality” healthcare initiative.�

BY JONATHAN C . HANCOCK & WH ITNEY M . HARMON

The Gossett decision was a very close one. It was in fact a 3 to 2 decision witha dissenting opinion authored by current Chief Justice Cornelia Clark. Justice Clark'sdissent favored returning to the McDonnell Douglas framework and noted thatTennessee will be only the fourth state to abandon it. Justice Clark's dissent was seenby Tennessee employers as perhaps the only foothold in an increasingly employee-friendly litigation environment.

On May 21, 2011, the ride got wild again. The Tennessee legislature, in an actionvery consistent with the sentiment expressed in Chief Justice Clark's dissent, passedlegislation that restores the McDonnell Douglas framework to employment litigation inTennessee by legislative mandate. House Bill 1641 specifically overrode the impact ofGossett by imposing a statutory burden shifting framework where employees must provea basic prima facie case of discrimination, retaliation, or wrongful discharge, and only thenwill an employer be required to articulate its legitimate nondiscriminatory reasons for thechallenged employment decision. Consistent with the McDonnell Douglas framework, anemployee will be given an opportunity to demonstrate that reason for the adverseemployment action articulated by the employer is actually not genuine, but absent anemployee's ability to do so, summary judgment should generally be granted in anemployer's favor. The net result of this legislation should be that meritless employeelawsuits will continue to be dismissed in Tennessee state courts before trial.

Risk analysis and claim evaluation became extremely complicated for Tennesseeemployers after the Tennessee Supreme Court's decision in Gossett as employers wererequired to very early on determine whether the employee had any evidence of retaliation,even circumstantial evidence, as this was likely enough to survive summary judgment anddramatically impact the value of contested claims. Following Governor Haslam's passageof House Bill 1641, this is no longer the case in Tennessee. Employers can now return tothe commonly accepted federal analysis, and hope for summary judgment in cases wherethe reasons for the challenged employment action cannot reasonably be characterized aspretextual, if it is otherwise legitimate. This is a positive development for Tennesseeemployers, as the wild ride that started in September 2010 has finally concluded and wecan once again, at least for the moment, have some reasonable expectation of the mostlikely result in judicial proceedings. �

CONTINUED FROM LAST ISSUE...

TENNESSEE’S WILD TRACTOR RIDE

and Its Impact OnRetaliation Claims

•OVERTURNED•Tennessee’s New Summary

Judgment Standard

This article ran in two parts; the first of this article may be found online at www.hrprosmemphis.comVolume 1: Issue 2, page 6.

�

B Y L A T O S H A D E X T E R

FIRST HAND KNOWLEDGE.Anyone having previous involvement withthe Tennessee unemployment process mayhave heard these words. In defending an

unemployment claim and presenting proof of misconduct, employers have often beeninstructed to present only witnesses with first hand knowledge of the events leading totermination. The operative words “may” and “often” as unemployment hearings procedurehave various interpretations depending on the hearing officer. Although the evidence rulesused in court litigation are not necessarily applicable to unemployment hearings, somehearing officers require each witness to possess first hand knowledge and thus, excludewhat they deem to be “hearsay”. This restriction means that a human resourcesrepresentative cannot testify about the reasons an employee was terminated or disciplinedunless the human resources representative was the one determining or administering thediscipline. Previous disciplinary documents which may have formed a basis forsubsequent termination also could not be presented by the company representativeunless the company representative was the person who disciplined the employee. Forexample, in a Middle Tennessee case a restaurant was precluded from submittingnegative customer comment cards from patrons as evidence that a waitress was rude andignored diners.

These restrictions on testimony on the part of the Department of Labor have placedemployers in a difficult position. What if a key witness has left the company or otherwisebecame unavailable by the time the hearing is conducted? Consider the cost to theemployer of allowing a line manager to be absent from work to testify at an unemploymenthearing. In the restaurant case, should the restaurant be required to subpoena thecomplaining patrons to be physically present for this hearing? What if the employer has a“three strikes and you’re out” policy and the three letters of discipline came from threedifferent managers? Should all three managers be required to testify at the unemployment

hearing? Further, an employer always hasto consider that testimony presentedduring the appeals hearing could be usedagainst the employer in some other matterunrelated to the unemployment claim.Therefore, limiting the witnesses presentedmight be to the company’s benefit if thewitnesses are unreliable or unprepared.The process of contesting an employee’sunemployment compensation claim canbe distracting and a drain on theemployer especially if multiple witnesseshave to be interviewed and prepared totestify.

Well, the Tennessee General Assembly, ina win for employers, has provided amechanism for addressing this issue.Newly enacted legislation, effective April29, 2011, now allows an employer tosubmit personnel records and otherbusiness records in defense of anunemployment claim without strictcompliance with the Tennessee Rule ofEvidence. This legislation providesconsistency in the unemploymentprocess throughout the state and easesthe burden on employers in defendingunemployment claims.

UnemploymentHearingsand Witness Testimony:

TN EMPLOYMENT LAW


•AMENDED LAW•Tennessee Code § 50-7-304

RECENT LEGISLATIVECHANGES MAKE IT EASIERfor Employers TO DEFENDUNEMPLOYMENT CLAIMS

EMPLOYMENT LAW


The newly revised Tennessee Code § 50-7-304 provides thatpersonnel records and other business records are admissibleand may constitute proof of misconduct if the followingconditions are met:

These conditions are easily met bythe prudent employer who properlydocuments and retains disciplinaryand attendance records, performanceevaluations, and other businessrecords potentially pertinent andrelevant to an unemployment claim.An affidavit supplied by a human resources representative or othercompany official who can testify to the fact that the record isroutinely maintained by the company as a business record satisfiesone of the statutory requirements. The affidavit is sufficient when itstates that 1) the records were made at or near the time of theoccurrence of the matters described in the record, 2) the recordswere kept in the course of regularly conducted activity, and 3) therecords were made of the regularly conducted activity as a regularpractice.

In the current economic climate employers are more likely toreceive unmerited and unwarranted unemployment claims. Themore former employees you have collecting unemploymentbenefits, the higher your unemployment tax levy will be.Employers are well served to scrutinize unemployment benefitclaims and contest them whenever a justified reason exists to doso. The ability to present an affidavit, rather than first hand“personal knowledge” testimony, makes the process easier andless costly for employers. Since the legislation also providesconsistency throughout the state, employers thankfully now knowwhat to expect and know what they can legitimately present asdocumentary evidence to contest a claim. �

Latosha Dexter, SPHRAttorney, Rainey Kizer Reviere & Bell, PLC

TN EMPLOYMENT LAW

Representing employers in employmentand labor-relations matters since 1959.

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2011 Today, legal problems and union

activities can impose an enormous financial strain on

a company. For this reason, Weintraub Stock is

strongly committed to preventative labor and

employment relations and to providing the necessary

knowledge and assistance to employers to allow them

to effectively operate in a highly regulated, litigious

business environment. However, when prevention

doesn’t work, we fight to win the case.

Jeff Weintraub, Best Lawyers for 16 yearsJames Stock, Best Lawyers for 10 years

1. The records must be in the possession of theemployer;

2. The records must be relevant to the claim;

3. The records must be accompanied by anaffidavit of its custodian or other qualified personcertifying the evidence as a business record.

If you are a Benefits Manager or a Human Resources Director, you are probablystruggling with your budget and your employee benefits program for 2012. Aboutthis time of year, many HR professionals begin searching for appropriate benchmarksfor their company in their industry, in the nation, and the Mid-South. Here are someof the trends that were uncovered by the recent 2011 Lipscomb and Pitts BenefitsSurvey. The survey encompasses 2799 (1.7 million employees) companies nationally(N) and 102 (104,402 employees) Mid-South (M-S) companies locally. We hope it willserve as a benchmark for your 2012 planning.

Medical Plan Trends2011 Medical Cost Increases Still Outpace Inflation5% locally | 9 % nationally in 2011 | 7% nationally in 2010 | 6% nationally in 2009

2011 M-S PPO | HMO/EPO plan design values are 5.6% lower than N2011 M-S CDHP plan design values were 22.7% lower than N11% M-S companies currently offer CDHP plans | 19% M-S companies areconsidering offering CDHP plans in 2012

2011 MEDICAL COSTSfor a typical family of fourare approximately $19,393

(up 7.3% over 2010) (74 and 75)

Employee out-of-pocket cost 17%Employee contribution 24%Employer contribution 59%

Medical PlansAccording to the survey the nationalmedian deductible for PPOs inmanufacturing, finance and insurance;and professional, scientific, and technicalservices was $500/$1000. The mediancoinsurance was 80%/60%. Median retailprescription copays were $10/$30/$50.84% of all companies had PPO; 12% hadCDHP, 3% had POS, and 1% HMO/EPO.The median percentage of M-Scompanies offering CDHPs was only11%, and 0% of M-S companies plan

to offer them in 2012. The medianemergency room copay acrossplans is $200. The mediancoinsurance across plans foroutpatient surgery is 80%.

Medical Plans Offered forDomestic Partners (M-S)

71% do not offer | 22% opposite sex |5% offer both same sex and oppositesex | 2% offer same sex | 22% offer

opposite sex

Median Monthly Premium PPO PlansEE $390 (M-S) $456 (N) | Family $1063

(M-S) $1330 (N)


BENEFITS

Trends2011Benefits

0-49 0.0% 87.5%

50-199 1.8% 69.6%

200-499 41.7% 58.3%

500-999 64.3% 35.7%

1000+ 75.0% 8.3%

All Plans 20.3% 61.9%

#EEsFully-Insured

PlansSelf-Insured

Plans

Prescription DrugsThere was a 2.3% increase in spending on prescriptiondrugs reaching $307 billion. There are currently about2400 drugs in clinical development with approximately50% for the treatment of cancer.

The Mid-South lags behind thenational average offering wellnessand disease management programs.

Wellness Programs OfferedWellness newsletters 32% (M-S) | 44% (N)Employee assistance programs 27% (M-S) | 45% (N)Smoking cessation programs 20% (M-S) | 26% (N)Web-based resources for healthy living 17% (M-S) | 20% (N)Health club discount/reimbursement 14% (M-S) | 25% offered (N)Weight loss programs >10% (M-S) | 19% offered (N)

Disease Management Programs OfferedDiabetes 21% (M-S) | 25% (N)High cholesterol and obesity 13% (M-S) | 19% (N)Obesity 13% (M-S) | 17% (N)Asthma 12% (M-S) | 17% (N)Hypertension 11% (M-S) | 18% (N)Depression 8% (M-S) | 13% (N)Lower back pain 5% (M-S) | 10% (N)

71% of M-S Companies OfferedDental Coverage84% of those companies offered DPPO

Long Term & Short Term Disability TrendsThe majority of Mid-South companies responding to the surveyrequire a 90 day waiting period for Long Term Disability benefits tokick in. 83 percent of companies pay 80 percent of the premium forLTD and 77 percent pay 60 percent of salary. However, the waitingperiod for Short Term Disability for 50 percent of companies is only7-13 days if for illness, and 40 percent of companies require 14 daywaiting period for STD due to an accident.

LTD Base Elimination Period (M-S)64% 90 days | 28% 180 days | 6% 60 days | 2% other77% replace 60% of salary10% offer buy up plan83% of Mid-South companies pay 83% of base cost

STD Elimination Period Based on Accident (M-S)37% < 7 days | 23% 7-13 days | 40% 14+days

Retirement Coverage (M-S)Retirement Coverage (M-S) (92)61% offered defined contribution plans 401(k) | 403(b)4% offered defined benefit and defined contribution plans1% offered defined benefit plan only 34% NA

Defined Benefit Plans Disappearing (M-S)

57% of plan sponsors surveyed froze their existing definedbenefit plans33% froze the plan for participation and benefit accruals24% froze participation but continued to accrue benefitsfor participating employees42% kept plans active

Defined Contribution93% have an investment allocation match that is employeedirected29% have 26+fund options availableMost common company match is 50% up to 6% of salary.

STD Elimination Period Based on Illness (M-S)9% < 7 days | 50% 7-13% | 41% 14+days58% offer 60% of salary51% offer benefits for 13 weeks | 26% offer benefits for 26weeks56% pay 100% for accident | 56% pay 100% for illness

Paid Time Off70 percent of Mid-South companies require employees to show adoctor’s note when they take paid sick time. 60 percent of Mid-South.

Lipscomb and Pitts conducts this survey every year as a service to the community. Anyone interested in participatingin next year's survey can contact Betsy Kamler at [email protected] and she will add them to the invitation list.


Top0Cost Control Strategies1 Negotiated lower costs with current carrier2 Increased deductibles3 Increased employee share of monthly premium4 Explored market (RFP) and changed carrier/health plans/TPA5 Increased employee out-of-pocket maximums6 Other Changes7 Increased RX drug copays or coinsurance8 Increased employee share of coinsurance9 Increased office visit copays0 Implemented wellness or disease management program

Sick 5 6 7 7

Vacation 5 9 12 15

Personal 3 3 3 3

PTO Bank 9 14 18 21

Paid Time Off Based on Length of Employment (M-S)New Hire 1-5 Years 6-9 Years 10+Years

Basic Life Insurance Amount Offered (M-S)66% offer flat-dollar amounts | 12% offer 1 x salary

12% offer 1.5% x salary | 7% offer 2 x salary


The majority of companies inthe US have embraced pre-employment screening intheir hiring process. It isestimated in 2010 that 9 out of10 companies performed somesort of background checkduring the hiring process.Just as important and far lessprevalent is the need for post-employment screening.

Conducting post-employmentscreening regularly throughout anemployee’s career can proactivelyidentify risk which may give rise tonegligent retention claims, workplaceviolence, shrinkage and negativepublicity.

The healthcare industry is at risk ofbeing fined large civil monetarypenalties for non-compliance of stateand federal laws and regulations.Medical monthly monitoring reducesthis risk and maximizes theirprotection.

An employee may begin their careerwith a clean criminal history, drug-freelifestyle, and good personal financialpractices, but there is no guaranteethat their background will remainspotless. Crimes such as fraud are oftencommitted by long-term, trustedemployees.

A reputable employment screening company can provide specific periodic checks onthe employee’s criminal and credit history and can continue to monitor currentemployees’ background information.

Businesses need to realize that the screening of a new employee is not complete ontheir first day of work. While a good pre-employment screening process helps todecrease the possibility of hiring unqualified, dishonest, or dangerous applicants,implementing a screening process for current employees can furtherguard against risk to the company and the workplace.

*The following is general educational information only. It is not legal advice. You need to consult with legal counsel

regarding all employment law matters. This information is subject to change without notice.

SCREENINGSolutionsOffenses that may be uncovered during a post employmentscreen that would be relevant to the employer would be:

B Y L I S A P M A Y

1. Drug use: A large number of employed Americans abuse drugs, and thisnumber is increasing every year. Drug abusers can create risks in theworkplace such as decreased productivity, greater likelihood of stealing, andaltercations with co-workers.

2. Serious criminal offenses: These would be crimes that may show anincreased risk to the company. Becoming aware of criminal convictions allowsthe employer to take measures to reduce the possibility of negative issuesthat range from fraud, to theft, to workplace violence.

3. Medical sanctions, exclusions or debarments: Monthly monitoringof providers’ and suppliers’ licenses and databases to ensure healthcareorganizations remain compliant.

4. Credit problems: Periodically checking an employee’s credit report isone way to measure the person’s trustworthiness and decrease the risk ofbecoming a victim of fraud. NOTE: only utilize credit reports in this manner forpositions in which an employee’s credit habits are relevant and fair.

Lisa P. May,VP Resource & Development, Data Facts Inc.

with Post-Employment Screening SolutionRISKMinimize


WHO?1 (L-R) Linda Orman, HR

Administrator; and Carol Twyman, HR

Manager for the Greater Memphis

Chamber of Commerce at the

Chamber Breakfast Forum on October

6th at the Marriott East. 2 The

Tennessee Department of Labor and

Workforce Development Career Coach

was seen parked at the University of

Memphis Holiday Inn during the recent

Urban League Luncheon where

Commissioner Karla Davis was the

keynote speaker. The Tennessee

Department of Labor and Workforce

Development rolled out Career

Coaches in April 2011. 3 (L-R) Dr. Steve Perry, Keynote Speaker at the October

Lipscomb & Pitts Breakfast Club with Dr. Freda G. Williams, Commissioner-At-

Large Position 1 of the City of Memphis School Board. 4 Brooks Monypeny,

Managing Director of the Morgan Keegan Strategic Plan Solutions Group, at the

SHRM-Memphis Comp and Benefits Career Emphasis Group meeting at the

University of Memphis Holiday Inn held September 28. 5 (L-R) Brenda Walker, Sr.Staffing Manager; and Tammy Griffin, Sr. Account Manager both with Randstad,

at the Greater Memphis Chamber Breakfast Forum in October. 6 (L-R) Lisa May,VP Marketing with Data Facts, Inc.; and Trevor Beahm, Technology Consultant

with Master IT, chatting at the Lipscomb & Pitts Breakfast Club on October 21. 7(L-R) Tennessee State Representative District 83, Mark White; and Moya Dent,

Private Banking at Independent Bank, attended the Lipscomb & Pitts Breakfast

Club at Minglewood Hall. 8 (L-R) Joyce Margulies, Margulies Employment Law

Consulting, at the recent Chamber Lunch and Learn at the First Tennessee Ron

Terry Center; Beth Clawson with Flintco; and Jenny Harmeier and Karrie Porter of

Above and Beyond Electric. 9 (L-R) Karla Davis, Commissioner of Tennessee

Department of Labor and Workforce Development; with Tim Bland, Partner, Ford

and Harrison, at the Urban League Luncheon in September.

9

4

21

5

76

3

98

www.GetOnTheCoach.tn.govThe Career Coach Mobile Centersprovide services similar to what youmight find in a Tennessee CareerCenter. These vehicles will arrive onthe scene to provide a mobilecomputer lab with Internet access;create a venue for workshopsincluding résumé assistance andinterviewing skills; and serve as arecruitment center for companiesmoving into our state.

“The mostimportant thing incommunication isto hear what isn't

being said.”

– Peter Drucker

CALENDARof EVENTS


11 Susan Stephenson, Co-Founder, Co-Chairman and President of

Independent Bank speaks at the Small Business Council Marketing Summit

held at the Racquet Club in August. 12 Brenda Rickborn, Associate Regional

Director of Employee Benefits Security Administration, was keynote speaker

at the SHRM-Memphis Comp and Benefits CEG Meeting, “Breakfast with

Benefits”. Her topic was, Unlocking the Secrets of a Department of Labor

Investigation. David Thornton; attorney with Bass, Berry, Sims also spoke on

Outsourcing Fiduciary Obligations: Fact or Fiction. The meeting was

sponsored by Morgan Keegan Strategic Plan Solutions Group, ADP, and

OneAmerica. It was held at the University of Memphis Holiday Inn.

13 Jeff Weintraub, Managing Partner with Weintraub Stock PC, spoke on

Surviving Emails at Dixon

Hughes Goodman at the recent

Small Business Council

Breakfast. Barbara Richman, Sr.

Consultant with HR MPACT,

spoke on Email Etiquette. 14(L-R) Desi Franklin, Executive

Director of Workforce

Investment Network, was the

keynote speaker at the Greater

Memphis Chamber Breakfast

Forum in October. John Duncan,

VP Member Development,

Greater Memphis Chamber;

Andrew Douglas, News Anchor for WMCTV. 15 Lisa L. Leach, Partner with

Kiesewetter Wise Kaplan and Prather with Johnny Pitts, Chief Manager at

Lipscomb & Pitts Insurance at the October L & P Breakfast Meeting held at

Minglewood Hall and hosted by Kiesewetter Wise Kaplan and Prather. 16John Veazey, Partner with Leadership Coaching and Consulting, was the

guest speaker at the joint meeting of ASTD and SHRM-Memphis in October

at the University of Memphis Holiday Inn. The topic was HR Professionals and

Training Professionals as Internal Coaches. 17 Kelly McDonald signs copies

of her new book at the NEA SHRM Seminar on October 10 at the ASU

Alumni Center in Jonesboro, AR.

SCENE

1211

14

15

16 17

13

"I have never gone to aseminar, and not met

someone of significance,or bumped into someoneI knew and strengthened

the relationship."– Jeffrey Gitomer

November 17, 6:00 -8:00 PMat U of M Fogelman Executive CenterHealth Reform in Tennessee -What Could Impact Your Business in 2014?A light dinner will be served. Brian Haile,Director, Insurance Exchange PlanningInitiative for the State of Tennessee, willbe the speaker. This event is sponsoredby MBGH, Health Choice, Metro-CarePhysicians, Methodist Healthcare,Healthy Memphis Common Table,Memphis Medical Society and theUniversity of Memphis School of PublicHealth. Register now at www.MyHealthChoice.com

December 2, 8:45 AM-3:45 PM,at Memphis Hilton, 939 Ridge Lake Blvd.Memphis Bar Association Annual SeminarThe Labor and Employment Section ofthe Memphis Bar Association is holdingits Annual Seminar at the. It will includemany topics and speakers of interest toHR Professionals and the program hasbeen submitted to the HR CertificationInstitute for review for credit.Register now at www.MemphisBar.org (click on CLE)

SAVE THE DATE!Do not miss your chance to hearpresentations from EqualEmployment OpportunityCommission Commissioner ChaiFeldblum and Acting NationalLabor Relations Board GeneralCounsel Lafe Solomon.Registration Fees: $85 (HR Professionals,including HRCI credit pending)

December 9,Weintraub Stock PC, Counselorsand Attorneys at LawCome join us for a morning of labor lawand an afternoon of employment topics.Our special guest is William Harvey,former attorney and Assistant to theRegional Director with the National LaborRelations Board, who will discuss thebehind-the-scenes politics and drivingforces that have led to some of thestrange determinations by the Board.

Location:6465 N. Quail Hollow Road, Memphis, TN 38120Time: 8:30-12:00 Labor Law

1:00-4:30 Employment LawContact: Joni Prouser— 901.526.0431


BULLETIN

YOU’RE INVITED. . . Come Join us!! www.shrm-memphis.org/join.php

If you are not yet a member of SHRM-Memphis, you are invited to join now! Current membership in the Society forHuman Resource Management is required to join SHRM-Memphis. To find out more about joining SHRM, please visittheir website www.shrm.org and complete an application online. Once you’re a member of SHRM, you only need toaffiliate with SHRM-Memphis to be a member of our local chapter as well. There are no additional dues!

A HeaRt for MemphisHuman capital is the new currency for cities. HR

professionals know that human capital is thelifeblood of their organization, but now

communities across the country are embracing ahuman capital development approach to talent

development from cradle to career.With this new community leadership focus, HR professionals can now take advantage of a

farming approach to talent development and recruitment as opposed to the hunter gatherermethods that yield mixed results. SHRM-Memphis has developed several community caringsolutions that are yielding real results for HR professionals and their companies in Memphis.

Workforce development is at its best a public/private partnership. We are embracing thismodel to li up the community through our Workforce Development Roundtable, our

participation in People First and our partnerships with community organizations.e Workforce Development Roundtable is led by Barbara Knight; experienced workforce

development specialist and Pauline Vernon, who is over workforce development with theMemphis Bioworks Foundation. ey are providing a heart centered data driven approach to

helping companies align their talent development initiatives with caring workforcedevelopment partners in order to deliver custom talent to organizations. Have you thought

about how you take advantage of farming developed talent before the applicant even appliesto your organization? e biggest way that HR professionals can “do good, while they do

well” is to embrace this community building talent model. You can now access the SHRM-Memphis network of talent development partners that are a mixture of non-profit, private

and government funded agencies through the SHRM-Memphis Workforce Roundtable.People First is a major cradle to career talent pipeline community collaboration hosted by

Memphis Fast Forward led by Blair Taylor, with Memphis Tomorrow and Douglas Scarboro,with Mayor Wharton’s office of Talent & Human Capital. SHRM-Memphis is partnering

with People First to take a community building approach to building, retaining and engagingbetter talent in the Memphis metro area. is collaboration includes our school systems,higher learning institutions, community leadership organizations, industry and political

leadership. Now HR has a seat at the table and a voice in the community talent conversation.Beyond these major initiatives, SHRM-Memphis is partnering with the Leadership Memphis:Memphis Talent Dividend to increase college attainment and Leadership Academy’s Recruit,

Relocate, Retain and Memphis 101 programs to improve talent in MemphisDo you feel like you can align your organization to “do good, while it does well?”

Do you have a HeaRt for Memphis?

Austin BakerPresident

SHRM-Memphis

7

SHRM-MEMPHISUPCOMINGEVENTS

November 16thTopic: The Carrot PrincipleSpeaker: Joel BishopTime: 11:30 AM to 1:00 PMCost: Members $20 &Non-Members $30Location: The Holiday Inn at TheUniversity of MemphisThe first 125 people to register getFREE copies of book, The CarrotPrinciple!

December 6thHoliday SocialTime: 5:00 to 7:30 PMCost: Members $10 &Non-Members $20(proceeds donated to a local charity)Location: The Memphis HiltonCome celebrate with us with fantasticfood & drinks, door prizes and a silentauction to benefit the SHRMFoundation!

1$

q


ou could say that Dr. Steve Perry has “fire in the belly”, aterm frequently used by HR professionals which impliesthat someone is passionate about their work. This is anunderstatement. Dr. Perry addressed the businesscommunity of greater Memphis, the “rainmakers”, as hereferred to them, to do something about the state of ourfailed schools. To put it bluntly, he “told it like it is.”

Dr. Perry was born into third generation poverty on his mother’s sixteenthbirthday. He believes that circumstances don’t change unless you change them, andhe is certainly proof of that. He graduated from the Pennsylvania School of SocialWork on a full scholarship and went back to his hometown of Middleton to run ahomeless shelter, became a candidate for state representative, and published fourbooks---- before the age of 26.

He founded ConnCAP, the Connecticut Collegiate Awareness Program that sent100% of its low-income first generation graduates to four-year colleges for six years.Dr. Perry started a public middle and high school in the state’s lowest performingdistrict, Hartford. Today, Capital Prep is one of the nation’s most successful publicmiddle/high schools.

Dr. Perry pointed out that Memphis is one of the least literate cities in the countryand that our current system is ineffective. If we have to put metal detectors in aschool, we should shut it down. No child should go to a school that does notprovide a safe learning environment. Perry suggested that we allow the leaders ofsuccessful Memphis schools to take over those that have failed. He also promoteda voucher system that would allow low-income families to afford the school ofchoice.

If no action is taken, what will it mean to the HR community and business leadersin Memphis? It’s very simple. As Dr. Perry asked, “Where are our next employeescoming from?” If we don’t change the system, our children will look to other citiesto raise their children. He reminded us that all children, regardless of income, arecapable of learning. It is up to the grown people to provide the opportunity andthe environment.

Dr. Perry challenged us to put together a school of people who love children andwant solutions. Dr. Perry asked us, “If now isn’t the time, then when?”

“The most dangerous personyou will ever encounter

is one without education.”

DOCTORSTEVEPerry

YDr. Steve Perry Addresses Lipscomb & Pitts Breakfast Club

Dr. Perry is founder of

Capitol Preparatory

Magnet School, best

selling author of "Man Up",

and an education

contributor on CNN.

LEADERSHIP


Nancy Blair-Bonk is Managing Director of EmployeeBenefits for FedEx Express Corporationheadquartered in Memphis, Tennessee. FedExExpress, the largest FedEx Corporation operatingcompany, is the world's largest express transportationcompany, providing fast and reliable delivery to everyU.S. address and to 215 countries and territories.

Ms. Blair-Bonk has over 20 years experience in health care managementin both the public and private sector. She is responsible for the research,analysis, design and development of health and welfare programs forapproximately 260,000 lives with an annual healthcare spend ofapproximately $1 billion. Prior to joining FedEx, she managed the healthand welfare programs for the largest three-service utility municipality inthe country.

She earned a BBA with emphasis in Human Resources from theUniversity of Tennessee.

She has held leadership positions in many charitable and not-for-profitorganizations. Currently, she serves on the Board for the MemphisBusiness Group on Health, Leadership team for Memphis HealthyCommon Table, steering committee for the Aligning Forces for QualityConsumer Engagement and member of the National Business Group onHealth Committee for National Leadership on Consumerism andEngagement. Ms. Blair-Bonk is very active in cost and quality initiativesregarding healthcare on a regional and national level.

Nancy graciously agreed to share a recent presentation she made onFedEx Express benefits to the Greater Memphis Employee BenefitsCouncil at the Crescent Club. You will find it on page 7.

on the cover

NancyBLAIR-BONKLEADS FEDEX EXPRESSEMPLOYEE BENEFITS

NORTH EASTARKANSAS (NEA)SHRM CHAPTERe North East Arkansas Society for HumanResource Management was chartered in 1977with 27 members. Our current membership isover 70, all of whom are national SHRMmembers. We are located in Jonesboro,Arkansas, and our membership consists ofhuman resources professionals primarily fromCraighead and Greene Counties in Arkansas.

1 BOARD OF DIRECTORSBack Row (L-R) Dwayne Douglas, VP ofPrograms; Allen Devereux, PHR, PastPresident; Sonya Sanders, Past VP ofMembership and Diversity; Melissa West, VPof Membership. Front Row (L-R) Dr. FayeCocchiara, College Relations Chair; MaryHamrick, Foundation Chair; Diane Fletcher, VPof Finance.

Board members not pictured: Melissa Coles,President-Elect; Ruth Anderson, VP LegislativeAffairs; Alan Decker, Workforce ReadinessChairperson; Tracey Crafton, DiversityChairperson; Amber Jackson, VPCommunications

2 Misty Carr, 2011 NEA SHRM President

3 Kelly McDonald, Speaker for the Seminar

and author of How to Market to People NotLike You.

4 NEA SHRM members enjoying Kelly

McDonald’s presentation.

1

2 3

4

Best selling book, How to Market to People Not Like You,by Kelly McDonaldThe event was held at the ASU Cooper Alumni Center on the campus of ArkansasState University. Kelly McDonald, president of McDonald Marketing in Dallas, was thespeaker. Kelly McDonald is a marketing and advertising expert with specialization ingenerational insights, multicultural marketing and Hispanic marketing. She worked intop positions for several global ad agencies before starting her own marketing firmin 2002. Her client experience includes brands such as Toyota, Kimberly-Clark,Miller/Coors, Sherwin-Williams and Nike.



The Greater Memphis Employee Benefits Council (GMEBC) is anon-profit organization, which serves as a forum for sharing ideasand information. The vision of the Greater Memphis EmployeeBenefits Council is to advance employee benefits, refine professionalskills, and through each of its members, provide a higher quality ofservice to the community. www.gmebc.org

The GMEBC was organized in 1977 with this in mind and it is theirgoal to continue these consistent aims in the midst of ever changingbenefit needs among the employees they serve. It is designed to:

• increase the professionalism of each member• advance employee benefits• refine professional skills• provide a higher quality of service to the community.

C O N G R A T U L A T I O N S

M E M P H I S / J A C K S O N / w w w . r a i n e y k i z e r . c o m

Brad BoxSuper Lawyer

Michael MansfieldRising Star

Super Lawyers magazine names attorneys in each state receiving the highest point totals from their peers and in independent

research. Rising Stars are the state’s top up-and-coming attorneys. Both Brad and Michael are members of the Rainey

Kizer Employment Law and Civil Rights practice group.

The 2011- 2012OFFICERSPresident -Mark Schirmer,SVP Willis

VP/Programs - Larry Loew,Director of Account Management; Humana

Co-VP/Programs - Linda Yoakum,Retirement Plans Education Advisor; Fedex Corporation

Immediate Past President - Linda Tripp,Director, Retirement Plan Consulting/MarketingCoordinator; Wealth Strategies Group, Inc.

VP/Membership - Sandy Bradford,Regional Director of Business Development; Lifesigns

Treasurer - Peter Voss,Director of Personnel for the City of Bartlett

Secretary - Leigh Ann Alexander,Retirement Plans Advisor; FedEx Corporation

Co-Secretary - Antoinette Wiseman,VP/Human Resource Manager; Independent Bank

Members-at-large - Ted Archdeacon, Senior Manager HumanResources; Brother Industries, (USA), Inc.; Todd Currey, SalesManager, BMHCC/BHSG; Donna Winfrey, Corporate Director ofBenefits; Methodist LeBonheur Healthcare

The GreaterMemphisEmployee Benefits Council

PerceivedValue

of BenefitsAccording to the 2011MercerWorkplaceSurvey, nearly eight out of 10 employeesin the U.S. said their benefits are one ofthe reasons they work where they do, and almost as many (76 percent)said that benefits make them feel appreciated by their company. Bothof these results represent significant increases from the 2010 survey.

Higher Health Care CostsIn addition, employer-sponsored health care continues to be

a critical component of the overall benefits offering. Even as health carecosts continue to rise, employees appear ready to accept changes to theemployer-employee cost-sharing model. In 2011, almost half (44percent) of the employees surveyed reported that they were asked topay more out of pocket for health benefits in the past 12 months.Nevertheless, 46 percent responded that their health benefits are“definitely worth” the cost (up from 38 percent in 2010).

Moreover, participation increased in programs thatencourage healthy behaviors. Nearly a third of employees said they takeadvantage of their employer’s wellness program “a great deal,” up fromonly 23 percent in 2010, while 26 percent said they take advantage oftheir employer’s disease management program “a great deal,” up from15 percent. Yet, as employees ponder exactly how those changes willaffect them, 75% said they would rather pay more out of pocket thanhave their health benefits reduced.

75%WOULD RATHERPayMore Out of Pocket

than Have TheirBenefits Reduced

GREATER MEMPHIS

EMPLOYEE

BENEFITSCOUNCIL


SHRM-Memphis

WHO’Swho?

Yvette Brooks, PHRVice-President of Membership

Yvette Brooks, PHR, serves as co-VP of Membershipfor SHRM-Memphis along with Audrey Darnell, PHR.The role of VP of Membership is to manage themembership function of the Chapter and to

successfully achieve an increase in chapter membership and retain members,especially SHRM members to your chapter.

She is also Director of HR Analytics & Technology for Methodist Healthcare.This is a position she has held since February 2006. She is the point personcreating a five-year technology roadmap across enterprise, defining HRtechnology purchases and deployment based upon organizational needs.She is also responsible for providing data for workforce-planning initiativesincluding assisting in the preparation of 5-10 year forecasts and successionplanning. Prior to this role, Yvette served as Director of HR Systems andPayroll at Methodist.

Yvette obtained her undergraduate degree in Organizational Managementfrom Crichton College (now Victory University) in 1998. She received herMBA, Human Resource Administration, from Colorado.

Other roles Yvette has filled in SHRM-Memphis include VP ofCommunications from 2009-1010 and Website and Career Center Chairduring 2008. She is also a member of the International Human ResourcesInformation Management Chapter and is involved in the University ofMemphis Professional Mentor Program.

HR Professionals asBenefits ManagersPatricia McDanielPatricia “Tisch” McDaniel is Manager of Pension, Benefits & Compliance for Verso, a large paper manufacturing companyheadquartered in Memphis with 3000 employees nationwide. She began her career with Verso four years ago as a consultant beforebecoming a full-time employee.Some of her past experience includes being a human resources/benefits consultant for a large professional trade association—The

Mason Contractors Association of America, working on the start-up team for the National Civil Rights Museum, working with the NCAA to implementprofessional improvement seminars for the Black Coaches Association and the Collegiate Marketing Directors, VP of HR for the 3rd largest home health agencyin the nation, a Corporate HR Director for a construction and manufacturing family-based business in Memphis, and a HR Supervisor for the start-up ofCircus Circus Casino.

Tisch is a member of the International Society of Human Resource Executives (since 2004), Society for Human Resource Management (since 2000), SHRMof Northwest Mississippi (local chapter member since 2004; currently Past President), and WorldatWork.

She cites her major challenge for 2012 gearing up for the next phase of health care reform and fee disclosures on retirement accounts.

October 6, 2011 – U.S. Senator Lamar Alexander, R-Tennrecalls the White House Summit last year, where he warnedthe President that individual plan premiums would increaseunder the health care law: “this was predicted by Republicanswho offered an alternative to take steps to decrease costs inhealth care, instead of this big, comprehensive law that expanded a systemthat already costs too much.”

Know where they stand....on Healthcare Reform.

ADVOCACY

October 14, 2011 - U.S. Senator Bob Corker, R-Tennmade the following statement regarding the announcementtoday that the Department of Health and Human Services isnot able to implement a key provision of the president’s healthcare law. “I'm glad the administration has finally put a stop to

one of the worst schemes ever concocted to pay for health care. By takingin premiums for the first five years and paying out no benefits, the CLASS Actappears to reduce deficits in the first 10 years to help pay for the president'shealth care law, but then would significantly add to deficits over the nextdecade, eventually becoming another insolvent entitlement. We need to repealthis flawed program that even its architects admit won't work.”

– Congressman Steve Cohen, 9th District D-TennThe Affordable Health Care for America Act is the most

significant health care reform bill ever passed in Congress. Iam proud to have lent my input and support for thislandmark legislation that will provide health insurance

coverage to 96% of Americans.The Affordable Health Care for America Act will help The MED in Memphis bydrastically reducing the number of uninsured patients. It will provideresources for more community health centers and family practice doctors inour inner city. This bill will help our city’s mothers and families through theinclusion of infant mortality programs, a measure based on my NEWBORNAct, which would establish 15 pilot programs across the country aimed atlowering the rate of infant mortality to promote research, educationinterventions, and access to prenatal care.

Getting to know your BoardEvery issue we spotlight Board members,chairpersons andprominent leaders in the HR and business community.

SHRMMEMPHIS

WHO'Swho

4www.HRprosMemphis.com 23

2 Understand the impact of exchanges on how you offer healthbenefits. Do employers have to offer benefits through the exchange?Employers can choose to offer benefits “outside the exchange”.However, even if you offer benefits outside the exchange, employerswill need to offer the required essential health benefits; offer servicesto everyone, even those with pre-existing conditions; and categorizeinto tiers based on cost-sharing provisions. Also, keep in mind that ifexchanges are effective, costs should be lower in the exchange. Howwill employers/employees choose from the plans in the exchange?Employers offering benefits through the exchange will need to decideif you want to select a plan or set of plans from the exchange and offeronly that plan to your employees (employer choice) or, do youwant togive your employees the choice of any plan in the exchange (employeechoice).

Under either choice, the employer can establish the contribution it willmake toward the premium. Under the employer choice model, thepayroll contributions from employees would be the same. Under theemployee choicemodel, the employee’s payroll contribution would bedifferent based uponwhich plan and benefit design the employee chosein the SHOP.

The employee choice model could be complex to administer becauseof so many different payroll deduction amounts. However, under theemployee choice model, small businesses can offer their employeeshealth benefit choices that are usually only available to those that workfor larger employers andmay, therefore, become an employer of choice.

Will brokers still be used in the exchange? There appears to begeneral consensus at both the federal and state level that brokers willcontinue to play an important role for employers that choose to offerbenefits through the exchange. However, the specific role of brokersin the exchange, and how their compensation will be determined will

For employers, establishment of these exchanges will have significantimpact on how you offer health benefits to your employees. Although2014 seems a long way off, it will be here before you know it. Here arefour steps you can take now to start that preparation.

1 Learn the basics about health insurance exchanges. The healthinsurance exchange program for employers is the Small BusinessHealth Options Program, usually referred to as the SHOP. Whooperates the SHOP? There are two ways in which a SHOP can beoffered in your state. The state itself can operate the SHOP or, in theabsence of the state operating the SHOP, the federal government willoperate the SHOP. Which employers can participate in the SHOP? Ingeneral, beginning in2014, theSHOPcan serve employerswithup to100employees and in 2017 can expand access to those with over 100employees.Howdoes theSHOPfunction?Basically, theSHOPwill offer:

• A number of “qualified” health plan choices, with each health planoffering a number of different benefit designs.• Common rules for both offering and pricing of these healthinsurance options• Information for employers and consumers to compare the costand quality of health plans and options.

The federal and state governments are hard at workscoping out and planning for what is anticipated to be amajor “market changer” in expanding access: healthinsurance exchanges. The exchanges, which will becomeoperational in 2014, are designed to offer affordable healthinsurance options for individuals and small employersstarting in 2014 and large employers in 2017.

STEPSYOU CANTAKE NOWTo Get Ready for Health Insurance ExchangesB Y C R I S T I E U P S H A W T R AV I S4

SMALL

BizBESTPRACTICES

be defined by each state as they design theirexchanges.

3 Familiarize yourself with the timelinefor SHOP implementation. Right now,many of the details have not been finalizedat the federal level, resulting in continueduncertainty about how exchanges willactually evolve at the state level. From apractical standpoint, states will need todecide if they will operate their own SHOPor let the federal government operate aSHOP in their state by 2012, in order to beprepared for the January 1, 2014implementation date.

4 Get more informationabout exchanges in yourstate. If states decide to

operate their own SHOP exchanges, it willbe important for employers to understandthe specifics about the exchange in theirstate. Websites for more information on thedevelopment of health insurance exchangesin the Mid-South are:Arkansas:www.hbe.arkansas.gov/Mississippi:www.mid.state.ms.us/pages/health_care_reform.aspxTennessee:www.tn.gov/nationalhealthreform/exchange.htmlMemphis Business Group on Health is a coalition ofemployers sharing solutions and providing tools tomanage the cost and quality of health benefits inan ever-changing environment.www.memphisbusienssgroup.org

Note: Regulations regarding health insuranceexchanges are not yet final. In addition, thereare many more requirements in theAccountable Care Act that address exchangesthan could be covered in this article. So, pleasedo not rely on this article solely, but use it as aguide to learn more about how exchanges mayoperate and impact employers.

Get Ready for Summary of Benefitsand Coverage Rule

1 Employers to distribute uniform benefit summaries to participants

2 Employers to provide 60-day advance notice of material modifications

3 Form W-2 reporting for health coverage (delayed until 2012 W-2 formtypically provided in early 2013)

4 Comparative effectiveness group health plan fees begin

Required Content of Summary of Benefits and CoverageThe proposed rule generally parallels the statute with regards to the content and provides atemplate. For a sample template, go to ttp://www.dol.gov/ebsa/pdf/SBCSampleCompleted.pdf.

The proposed rule provides that an SBC must be printed in a 12-point orlarger font and limited to four double-sided pages, and that the SBCmust be a stand-alone document. In general, an SBC must contain:• Uniform definitions.

• A description of the plan’s coverage, including exceptions, reductions and limitations.

• The plan’s cost-sharing provisions, such as deductibles, co-pays and co-insurance.

• Information about continuation of coverage.

• Hypothetical coverage examples selected by the Secretary of Health and Human Services to

illustrate the benefits that would be provided for certain common benefits scenarios.

• A statement as to whether the plan provides minimum essential coverage and whether the plan

pays at least 60 percent of the total cost of benefit (beginning January 1, 2014).

• An Internet address (or similar) for obtaining a list of the network providers.

• An Internet address where an individual may find more information about the prescription drug

coverage under the group health plan or health insurance coverage.

• An Internet address where an individual may review and obtain the uniform glossary.

• Premium information for insured plans or cost of coverage for self-insured plans.

• A statement that the SBC is only a summary and that the plan document, insurance policy,

contract or certificate of insurance should be consulted for more information about the coverage

provided under the plan.

• Contact information for questions or for obtaining a copy of the plan document or the

insurance policy, contract or certificate of insurance.

The Patient Protection and Affordable Care Act requires provision of the summary of benefits and uniform glossary

beginning March 23, 2012.

Penalties for ViolationsA group health plan or health insurance issuer that willfully fails to provide an SBC will be subjectto a fine of up to $1,000 per enrollee who does not receive the SBC. Excise taxes and self-reporting requirements under section 4980D of the Internal Revenue Code also apply.

SMALL BIZ BEST PRACTICES

Cristie UpshawTravisCEO, Memphis BusinessGroup on Health

Send feedback to:[email protected]

REQUIREMENTSHEALTH CARE REFORM=20


Overview of GINATitle II of GINA prohibits employers fromdiscriminating on the basis of geneticinformation, restricts employers fromacquiring and disclosing genetic information,and prohibits retaliation. The EEOC also hasinterpreted Title II to prohibit harassmentbased on genetic information.

“Genetic information” includes an individual’sgenetic tests, the genetic tests of thatindividual’s family members, family medicalhistory, the request for, or receipt of, geneticservices by an individual or his/her familymember, the participation in clinical researchincluding genetic services by an individual orhis/her family member, the geneticinformation of a fetus of the individual orhis/her family member, and the geneticinformation of an embryo held by theindividual or family member using assistedreproductive technology. Examples of“genetic tests” include a test to determinewhether someone has a genetic variantshowing a predisposition to breast cancer,carrier screening to determine the risk ofconditions such as cystic fibrosis in futureoffspring, amniocentesis, and DNA testingfor paternity. “Genetic tests” do not includetests for alcohol or illegal drugs, an HIV testor a cholesterol test.

The types of “requests” for geneticinformation proscribed by GINA includeInternet searches on an individual that arelikely to elicit genetic information, activelylistening to third-party conversations,searching an individual’s belongings toacquire genetic information, and askingabout an individual’s current health statussuch that an employer is likely to obtaingenetic information. However, GINA’sgeneral prohibitions do not apply in sixnarrowly-defined situations: (1) where theemployer acquires the informationinadvertently; (2) as part of health or geneticservices (including a wellness program)provided on a voluntary basis; (3) in the formof family medical history to comply with thecertification requirements of the Family andMedical Leave Act, state or local leave laws,or employer leave policies; (4) from sourcesthat are commercially and publicly available,such as newspapers, books, magazines,and electronic media; (5) as part of geneticmonitoring that is either required by law orprovided on a voluntary basis; and (6) byemployers who conduct DNA testing for lawenforcement purposes as a forensiclaboratory or for human remainsidentification.

Family Medical HistoryFamily medical history has proved to be themost problematic type of genetic informationto monitor in the day-to-day supervision ofemployees. Employers should remindsupervisors that GINA covers family medicalhistory and that they should not engage inconversations with employees about themedical issues of employees’ familymembers. The exception for inadvertentacquisition of genetic information will notapply where a supervisor follows up a casualconversation about the general well-being ofa family member with probing questionswhich are likely to result in the acquisition ofgenetic information, such as “whether otherfamily members have the condition, orwhether the individual has been tested forthe condition.”

Safe Harbor ProvisionAn employer should take advantage of thesafe harbor language provided in theEEOC’s implementing regulations anytimean employer requests medical informationabout an employee. Use of the safe harborlanguage renders the receipt of geneticinformation in response to a request formedical information inadvertent. This safe

Reflections As the Two-Year Anniversary Date ApproachesThe employment provisions (Title II) of the Genetic Information and Nondiscrimination Act of 2008 (GINA) becameeffective on November 21, 2009. Almost a year later, on November 9, 2010, the EEOC issued final regulations

implementing Title II with an effective date of January 10, 2011. The EEOC reported processing 201 GINA chargesduring 2010, the first full enforcement year for GINA. As the two-year anniversary of the effective date of GINA’s

employment provisions approaches, we are only beginning to grasp the implications of GINA.

– EMPLOYMENT PROVISIONS –


GINA

B Y L I S A L . L E A C H A N D A M B E R I S O M - T H O M P S O N

Genetic Information & Nondiscrimination Act

EEOC UPDATE

harbor language set forth at 29 CFR1635.8(b)(1)(i)(B) includes a discussion ofGINA’s prohibitions, provides a definition ofgenetic information, and instructs theprovider to avoid including geneticinformation when responding to theemployer.

Voluntary WellnessProgramsWellness programs have raised manyconcerns among employers since theenactment of GINA. The implementingregulations permit an employer to acquiregenetic information about an employeeand his/her family members when it offersa wellness program on a voluntary basis.However, the individual participating in thewellness program must give prior voluntary,knowing, and written authorizationpursuant to a form that meets therequirements set forth in the implementingregulations.

While employers cannot offer aninducement for individuals to providegenetic information as part of a voluntarywellness program, GINA allows financialinducements to encourage participation ina wellness program that contains a healthrisk assessment seeking information aboutfamily medical history or other geneticinformation if the employer informs theemployee that the inducement will beprovided even if the participant choosesnot to answer the questions requestingfamily medical history or other geneticinformation. The EEOC’s implementingregulations provide the following exampleof a permissible financial inducement:

Once an employee voluntarily discloses afamily medical history that would place theemployee at increased risk of acquiring afuture health condition, employers maythen offer financial inducements forparticipation in disease management

programs and other programs toencourage healthy lifestyles, includingprograms with coaching to employees formeeting particular health goals, providedthe employer also offers the programs andinducements to individuals with currenthealth conditions and/or to individualswhose lifestyle choices put them at risk ofacquiring a condition. The regulationsprovide two examples of financialinducements for participation in programsand meeting health goals that do notviolate Title II of GINA:

Employers should keep in mind thatwellness programs which provide medicalcare, including genetic counseling, andcollect genetic information may be subjectto additional requirements under Title I ofGINA, the Internal Revenue Code, or theEmployee Retirement Income Security Act.Additionally, wellness programs thatcondition rewards on an individualsatisfying a standard related to a healthfactor must meet additional requirementsunder those statutory schemes. Moreover,employers still must comply with theAmericans with Disabilities Act (ADA), theHealth Insurance Portability andAccountability Act, and other applicablelaws and regulations.

ConfidentialityRequirementsUnder Title II of GINA, employers mustkeep the genetic information of applicantsand employees confidential and may onlydisclose genetic information under limitedexceptions. If genetic information is inwriting, the employer must keep it apartfrom other personnel information inseparate medical files. However,employers may keep genetic information inthe same file as medical informationsubject to the ADA. The EEOC clarified in

the implementing regulations thatemployers are under no obligation toremove genetic information that was put inan employee’s file prior to the November21, 2009 effective date of GINA. However,the EEOC further noted in the regulationsthat an employer is still prohibited fromusing or disclosing this pre-GINA geneticinformation.

ConclusionAs we approach the two-year anniversaryof the effective date of GINA’s employmentprovisions, employers still have much tolearn about GINA and how to meet theirobligations within the broad legalframework governing employment. Someof the most important steps an employercan take to ensure GINA complianceinclude:

1 Post the most current “EEO is the Law”

poster from the EEOC which includes a GINAprovision;

2 Revise equal employment opportunity

statements in handbooks and policies toprohibit discrimination based on geneticinformation;

3 Review post-offer medical forms, medical

questionnaires, and authorizations to releaseemployee medical information to ensure allauthorizations to release or inquiries into familymedical history have been eliminated;

4 Revise all correspondence requesting an

employee’s medical information to include theGINA safe harbor language;

5 Train management level employees on the

importance of refraining from asking applicantsor employees about genetic information orfamily medical issues;

6 Revisit policies and procedures regarding

confidentiality of medical information; and

7 Audit voluntary wellness programs to

ensure GINA compliance.


A covered entity offers $150 to employees whocomplete a health risk assessment with 100questions, the last 20 of them containing familymedical history and other genetic information. Theinstructions for completing the health risk assessmentmake clear that the inducement will be provided toall employees who respond to the first 80 questions,whether or not the remaining 20 questionscontaining family medical history and other geneticinformation are answered. This health riskassessment does not violate Title II of GINA.

Employees who voluntarily disclose a familymedical history of diabetes, heart disease, orhigh blood pressure on a [GINA compliant,voluntary] health risk assessment…andemployees who have a current diagnosis of oneor more of these conditions are offered $150 toparticipate in a wellness program designed toencourage weight loss and a healthylifestyle…[or offered the opportunity] to earnpoints toward “prizes” totaling $150 in a singleyear for lowering their blood pressure, glucose,and cholesterol levels, or for losing weight.

Lisa L. Leach, PartnerKiesewetter WiseKaplan Prather, PLC

Amber Isom-Thompson, PartnerKiesewetter WiseKaplan Prather, PLC


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IRS Bulletin: Cost of Living Increases for Defined Contribution andDefined Benefit Retirement Plans On Oct. 20, 2011, The U.S. Internal Revenue

Service (IRS) announced cost-of-living adjustments (COLAs) affecting dollar limits for definedcontribution and defined benefit retirement plans and other retirement-related items for tax year 2012.Many plan limits on contributions and benefits will rise because increases in the cost-of-living indexmet the statutory thresholds that trigger their adjustment.

Among the key changes effective as of Jan. 1, 2012:

Tennessee Employers are Required toCompensate Employees forTravel Time To and From Jury Duty

In an opinion issued October 10,2011, the Tennessee Attorney Generaladvised that Tennessee employers are requiredto compensate employees for travel time toand from jury duty in addition to theemployees' actual jury service. The AttorneyGeneral further advised that employers arerequired to compensate employees for timespent traveling to and from jury duty

regardless of whether the employee's usualcompensation includes travel time.

By way of example, the AttorneyGeneral stated that if an employee spends twohours traveling to and from jury service andfour hours serving on the jury, the employeewould be entitled to six total hours of his/herusual compensation.

Covered Tennessee employeessummoned for jury duty are entitled to beexcused from work to serve, provided theynotify their employer and their jury dutyresponsibilities exceed three hours. Employees

are entitled to their usual compensation forany time spent traveling to and from jury dutyand actual time spent in jury duty. Therefore,covered Tennessee employers should not onlyrequest that their employees submitdocumentation of their time spent in actualjury service, but also their travel time.

Please note that time spent in juryduty would not need to be calculated as hoursworked for overtime purposes under the FairLabor Standards Act, nor would it need to beincluded in the employee's regular rate whencalculating overtime.

Defined Contribution Plans:COLA Increases for Dollar Limits on Benefits and Contributions

Maximum elective deferral by employee

Catch-up contribution (age 50 and older during 2012)

Defined contribution maximum deferral (employer/employee combined)

Employee annual compensation limit for calculating contributions

Annual compensation of "key employees" in a top-heavy plan

Annual compensation of "highly compensated employee" in a top-heavy plan

$17,000

$5,500

$50,000

$250,000

$165,000

$115,000

$16,500

$5,500

$49,000

$245,000

$160,000

$110,000

2012 2011

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