Showing posts with label Everybody. Show all posts
Showing posts with label Everybody. Show all posts

Friday, August 9, 2013

The truth about workplace wellness programs: Everybody wins

By Randel K. Johnson, U.S. Chamber of Commerce - 04/25/13 12:07 PM ET

Workplace wellness programs have been critical elements of many employer sponsored healthcare coverage offerings for over a decade. Recently however these programs have come under groundless criticism as nefariously motivated discrimination which some argue allow employers to illegally invade the privacy of their employees and unfairly underwrite premiums based on identified conditions. Nothing could be further from the truth. Efforts to strengthen the ability of these programs to modify behavior, improve health, reduce and mitigate incidents of chronic diseases, and control costs by directly engaging individuals have enjoyed broad bi-partisan support even in the debate over the partisan health reform law. 

The fact that healthcare costs are rising is undisputed. If employers are to continue to provide healthcare coverage for their employees, they have several options: cut benefits, increase employees’ premiums, or drop coverage altogether. In an effort to avoid these less-appealing options, employers for many years now have utilized wellness programs to encourage improvements in employee health. These programs have encouraged individuals to take responsibility for their health and rewarded those for modifying unhealthy behavior. This in turn benefits the entire workforce and protecting colleagues and coworkers who otherwise would also be saddled with higher premiums to compensate for an unhealthy coworker’s poor health choices. The result – better health and lower costs which allows employers to use these savings to pay employees higher wages, invest in further adapting benefits to specific employee population needs, and create more jobs.
Beyond the more direct motives, both altruistic and financial, these workplace wellness programs also reflect the general evolution of our country’s healthcare system toward prevention and maintaining health as opposed to the historic pattern of treatment and healing the sick. In identifying impending and current chronic disease and illnesses, these programs offer another way to advance our country’s health care evolving approach beyond simply treating diseases and caring for the sick to improving health and maintaining wellness. These wellness programs give people tools to identify their risk factors, improve their health, modify unhealthy behavior and stay well both in the workplace and at home.  
It is important to understand that these programs must follow a myriad of privacy and anti-discrimination laws to ensure that employee health information is protected and that individual employees are not discriminated against based on health status. Sensitive medical information and privacy concerns have been carefully protected for years – whether for an employee with a congenital heart defect obtaining healthcare coverage and medical services through an employer’s health plan or for a smoker completing a smoking cessation class as part of an employer’s wellness program. As with other sensitive personal medical information, data collected and monitored in conjunction with these programs is not shared with the employer. Third party entities (and not employers) are responsible for conducting screenings and any personal health information is de-identified and protected. Only information that is necessary to accomplish the purpose for which it is being shared can be communicated.
At the end of the day, both employees and employers benefit from better health. Employers want to continue to provide coverage, and in this difficult time of transition resulting from the healthcare law, wellness programs continue to offer an effective way for employers to encourage healthy behavior without having to decrease benefits, reduce wages, or close their doors altogether.
Johnson is the senior vice president of Labor, Immigration, and Employee Benefits for the U.S. Chamber of Commerce.
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Sunday, May 19, 2013

How Everybody Pays The Price Of Wall Street’s Unregulated High-Frequency Trading

During an appearance on CNBC yesterday, Charlie Munger, deputy to billionaire investor Warren Buffett, had some harsh words for high-frequency trading, the practice used by huge financial firms to trade stocks in milliseconds. “Take the rapid trading by the computer geniuses with the computer algorithms,” said Munger. “Those people have all the social utility of a bunch of rats admitted to a granary.”

As a new report from Demos makes clear, high-frequency trading definitely is the equivalent of admitting rats to a granary, as it extracts value for traders but without bolstering investment. The price of that is ultimately paid by consumers:

The increasing inefficiency of the Capital Intermediation process is in part attributable to the trading practices of [high-frequency traders] HFTs, which generate high trading volume and no investment. The cost to the system is generated by several factors. First, the illusion of market liquidity provided by HFT volume leads to the inherent instability of market pricing mechanisms. In addition, aggressive HFT tactics mislead market participants in terms fundamental price. Finally, Dark Pools, trading venues that exist because of HFTs, impair price discovery.

All of these distortions extract value for the HFTs. Investors pay the cost initially because their investments are less valuable in conditions of chronic price distortion. However, investors must compensate for the additional cost that results from the extracted value by adjustment of price. This price adjustment is paid for by the consumers of capital.

High-speed trading now makes up more than half of the stock market’s volume. As this chart from the research firm Nanex shows, high-frequency trading has exploded since 2007, spiking in the aftermath of the Great Recession:

The Securities and Exchange Commission voted yesterday to draft new rules to rein in high-frequency trading. Doing so would both drive investment to productive sectors of the economy while removing dangerous volatility from the market like that which caused 2010's “flash crash.”


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