The purpose of Money Talk is to improve readers' financial capability with research-based personal finance information.
Friday, October 19, 2018
Conference Take-Aways from ASEC and the CFPB
This week, I attended the Fall American Savings Education
Council (ASEC) meeting and, via phone, part of a Consumer Financial Protection
Bureau (CFPB) meeting for financial practitioners. Below are some take-aways:
¨Four key factors
can affect worker (and dependent) health status: worker share of health
insurance premium, cost-sharing (e.g., deductibles, coinsurance, and
copayments), choice of health plan, and workplace wellness programs.
¨Nearly half of the
U.S. working population with employer health insurance is in a high-deductible
¨A study of a
large employer that replaced PPOs with a HSA (health savings account)-eligible,
high-deductible health plan (HDHP) found decreases in outpatient office visits,
prescription drug fills, and medication adherence and more emergency room
visits. Even preventive services not subject to a deductible were used less after
the HDHP started.
encourage workplace wellness by offering financial incentives such as prizes,
gift cards, and premium contributions.Prizes are often used in conjunction with health risk assessments or
¨Only 1 in 10
Americans is saving enough money to cover short-term needs and retire
comfortably. Health care expenses take a big chunk out of people’s income. Some
employers are starting to coordinate HSAs and 401(k)s.
¨Caregiving is a
threat to retirement security. For example, caregivers may have reduced work
hours and missed work days or have to quit their job. The majority of
caregivers work full- or part-time (52%) or are self-employed (8%).
savings, break goals into small steps and identify a “why” that is driving
¨Using savings that
is set aside for emergencies is not a failure. It is what the money was set
aside for! Be sure to replenish emergency savings as needed.