Pensions:
The New York Times: “Concerns Raised Over Consultants to Pension Funds“:
A small but growing part of the $2 trillion in state and local pension funds is being steered into high-risk investments by pension consultants and others who often have business dealings with the very money managers they recommend. . . The Securities and Exchange Commission is so concerned that it has begun an inquiry into the practices of pension consultants, who serve as gatekeepers for thousands of money managers.
The New York Times: “In Louisiana, a Pension Official Blows the Whistle on Adviser Conflicts.”
Health care and health savings accounts:
Forbes.com: “Don’t Bank On Health Savings Accounts“:
A recent survey by Watson Wyatt and the National Business Group on Health found that 32% of large companies expect to offer employees some sort of high-deductible, consumer-directed option next year, up from 21% this year. But few employers are ready yet to push all their workers into such plans.
Bonitanews.com: “Oklahoma firm accuses local hospitals of price-fixing“:
Hospitals have one set of prices for the various services they provide. But those fees are almost always very high and most officials acknowledge that few people pay the full amounts. Reimbursement from Medicare and Medicaid can be 70 percent or more below established hospital fees. . . That pricing system, though, hurts the people who sign up with Medical Savings, according to the lawsuit. The company specializes in health savings accounts, which require its customers to bear a fairly “significant level of self insurance.” (A very interesting angle on the new health savings accounts.)
A Press Release from Watson Wyatt: “Engaging Workers in Health Benefit Decisions Appears to Yield Significant Cost Savings“:
One method employers are using successfully to change employee behavior is increasing financial tension, i.e., using plan designs and other mechanisms to increase price sensitivity among employees. For example, one out of four employers said they significantly increased either premiums or cost provisions at the point-of-care. There was also an increase last year in the number of employers that implemented a high-deductible health plan without a reimbursement arrangement.