We have all seen news of the recent floods that have devastated so much of the upper Midwest, the part of the nation that TASC calls home.  Indeed, this tragedy has affected many of our friends and neighbors, and quite a few of our Clients as well.

Several years ago TASC developed TASC Cares, a proactive program that includes our community outreach function.  At times of natural disasters, having an established policy regarding community support helps us move quickly to provide whatever aid we can, wherever we can.  Soon after the storms had cleared we posted this message on our website:  “If you or your business has been affected by the recent natural disasters in the Midwest please let one of our Customer Service Representatives know and we will do what we can to help.”

Next, our philosophy of caring about those in need truly came to life.  Our Contact Center reached out to Clients in flood affected areas to ascertain if and how we might help.  Most Clients we contacted were truly amazed that we called.  A TASC Client from Waterloo, Iowa declared that his business was a total loss and as such needed all of its TASC information again, including a log-in number.  We promptly e-mailed the necessary Plan information.  And we made it clear that we stood ready to help employees with claims or lost checks, if needed.  

Meanwhile, behind the scenes the predictable movement of benefit money and other TASC transactions continued without a hitch, thanks to TASC’s electronically-based services.  As your reliable mainstay, we at TASC know that the services we provide are especially vital when our Clients are dealing with incredible difficulties such as these floods.  In fact, this is the third time we have used the TASC Cares program in a time of natural disaster.  It was crucial over and over again during and after Hurricane Katrina and the wildfires in southern California.  In sum: under these conditions, TASC will do whatever is within our power to ensure that our Clients and Participants can continue to access their funds for healthcare and other essential needs.

But your TASC team doesn’t stop there… As I write this blog, 27 TASC employees are working with the American Red Cross, helping clean homes and businesses that have been affected by flooding in the Baraboo (Wisconsin) area.  These good citizens are utilizing a provision of the TASC Cares program that provides for up to four days a year of paid volunteerism.

When you get right down to it, the name of our program says it all:  TASC Cares.

Recently I was fortunate enough to participate in the Ernst & Young Entrepreneur of the Year (EOY) Award Program.  Specifically, the program’s Upper Midwest Regional Finals honored 30 entrepreneurs from Wisconsin, Minnesota, and North and South Dakota.  While I didn’t qualify for the National level, I was honored to be part of this incredible group of business leaders.

As part of the awards program, a series of short videos highlighted each of the finalists and their businesses.  A broad spectrum of industries was represented, including several banks, a bicycle manufacturer, a steel company, and a company that makes sailboat hardware.  As I watched these videos, it was impossible not notice many similar themes.  For example, despite their differences, all the nominees truly value their team of employees.  So, too, do all nominees find ways give back to their communities. 

At TASC we foster an environment in which employees are encouraged to have fun while being professional, productive, and accountable.  Under our comprehensive TASC Cares program exists a wellness program, an employee PC purchase program, on-site financial planning and education services, an extensive recognition and reward program, an education reimbursement program, and an on-site Toastmasters Group.

TASC is a major contributor within the larger community.  Our employees organize and manage our award-winning United Way fundraising campaign, and they do this hard work during their normal work hours.  Each year we allow our employees four paid days to volunteer, and we participate in the annual United Way’s Day of Caring.  We offer all Dane County United Way Agencies Section 125 Plan services at greatly reduced rates.  Finally, we also provide major support to the University of Wisconsin Children’s Hospital and host regular on-site American Red Cross blood drives.

If selection as a Regional Finalist in the EOY program is determined by the way you treat your employees and reach out to contribute to your community, then being a good corporate neighbor and employer isn’t only the right thing to do, perhaps it’s the key to success!

I recently celebrated a special anniversary.  Just a year ago my right hip was resurfaced, and I’ve been reflecting on all that has occurred since then.  The surgery – and the care I received afterwards – helped me value good health care now more than ever.

As part of my post-surgery rehabilitation I attended a “gentle joints” class with about 20 other people.  We exercised in a warm water pool at a local health club.  One classmate and I struck up a conversation.  I learned that she worked at the state of Wisconsin, and I heard her concerns about healthcare.  In turn I explained the benefits and features of a flexible spending account.  While the conversation between us provided no direct “value” to me or to TASC, I felt I had a responsibility to offer the information.

As Americans we are fortunate in many ways, and many of us have quality healthcare in place.  At the same time, we feel strongly that such care needs to be provided to all of our neighbors.    Each and every one of us is responsible for making health care accessible and affordable.  No matter our political position, no matter what system or market reform we prefer, no matter what we call that reform – consumer directed, defined contribution, etc. – we have a responsibility to help wherever possible.

As I wrote in my April 2, 2008 blog, I have played many parts in the healthcare industry during my career.  Back in the 1980’s I sold life, health and disability insurance to farmers and small businesses.  Now fast forward to the present:  at TASC I am an experienced third-party administrator serving employers and agents in niche areas surrounding health care, and I am an employer who provides employee benefits to nearly 300 employees.

Some people say experience is everything.  Of course I’d prefer to have solved my hip problem without the surgery experience.  But this recent personal experience has given me another perspective from which to observe our healthcare system in action:  that of a long-term patient.  Meanwhile, I’ve been scrutinizing our healthcare system from two new vantage points as well:  that of board member with the United Way of Dane County and as Chair of their Community Solution Team entitled “Self Reliance and Independence.”  In these roles I have witnessed first hand the impact of health care or the lack thereof on our elderly and disabled neighbors.

All this experience leads me back again and again to one clear duty:  sharing responsibility for healthcare.  At TASC, this duty is our premise and our reason for being.  After all, it’s right there in our brand promise:  Innovative solutions that better your bottom line and assure peace of mind.  We’re serious about healthcare and serious about our responsibility to fulfill this promise.  Very serious.

My last blog entry has drawn quite the reaction!  A national trade association sent an e-mail to make it clear just how much they disliked my remarks regarding HR 5719, better known as the Taxpayer Assistance and Simplification Act.  As my blog explained, this bill is making the rounds in Washington and if passed will require Health Savings Accounts (HSAs) to incorporate claim substantiation rules similar to those now in place for Flexible Spending Accounts (FSAs).

I think it’s clear that this organization looks at the issue from a different perspective than we at TASC.  We approach this from an administrative standpoint.  Period.  Meanwhile, this trade group looks at the concept of HSAs in relationship to the health insurance industry overall.  Despite our different points of view, we are aligned 100 percent against such a high degree of substantiation requirement.

That’s right; I too oppose greater substantiation requirements.  In fact, I feel very strongly about just the opposite, that substantiation requirements should be relaxed for FSAs.  Doing so would help to create parity between HSAs and FSAs.  And after all, any and all legal and doable methods for helping combat the rising costs of healthcare should not be mired in hurdles relative to participation.

The political fight for and against increased substantiation will continue, and TASC will continue to watch and track its progress.  As always, we will remain a strong supporter of our Providers, including but not limited to those active in the insurance broker community.  Quite possibly, if substantiation requirements for HSAs are brought in line with those currently in place for FSAs, both sets of requirements may be relaxed.  Sometimes these things take a step backwards in the present before they are able to move forward in the future.

I believe various factors will work to improve the chances that this bill will pass, despite the President’s concerns.  First, a significant portion of the bill has bi-partisan support.  In fact, a floor vote in the House passed while I was in Washington.  Second, the original bill’s effective date was modified from January 1, 2009 to January 1, 2011.  This delay will significantly soften the blow on Participants and gives us in the industry more time to adjust our operations.  Third, the HSA-related portion of this bill contains elements of how the government will pay for the some of the other provisions in the bill, thereby eliminating a grievance all too common with new legislation.  And fourth, the House Ways and Means Committee has reviewed evidence of HSA funds being used errantly for non-medical expenses. 

TASC’s position is consistent, whether we’re talking about HSAs or Medical Savings Accounts:  we support any legal tool that can help to make healthcare more affordable for each and every one of us.  Further, for some time we have advocated a reduction in the amount of scrutiny FSA claims have received.  I don’t think it’s a stretch to suggest that claim substantiation parity for HSAs and FSAs will likely reduce the level of scrutiny both receive!  Most likely we will reach a point somewhere closer to the middle of an “evenhanded spectrum.” 

Reasonable, convenient and consistent.  These words describe TASC’s position.  I believe our nation’s business owners and employees who are participating in consumer drive health care (HSAs, FSAs and HRAs) would support this position…especially the hundreds of thousands who are TASC’s fortunate customers.

A column in the Milwaukee Journal Sentinel on-line edition recently caught my eye.[1]  The moral of the story is clearly spelled-out in its title: “Outsourcing health care may be a thrifty alternative.”  Indeed, the rising cost of healthcare in the United States is making it more and more attractive to have certain medical procedures completed overseas. 

The author of this column writes in agreement with this arrangement.  In fact, he ends his column by stating that the next time he needs hip replacement surgery, he will fly to Ireland for the procedure and recuperate over a pint of Guinness.  Now, I support consumer-driven healthcare as much as the next person.  I agree that as a society, we need to be better consumers when it comes to our healthcare, and that we need to continue to pressure our healthcare providers to contain costs.  On the other hand, when it comes to flying to a different country for a medical procedure, well that’s where you can count me out!

In my opinion, being a good healthcare consumer comes down to far more than comparing costs.  Quality of life issues must be considered.  How possible is it to attempt effective and efficient due diligence on the procedure, the facility, the physician, and the overall quality of care when you are half a world apart? 

Just a few years ago I underwent a hip resurfacing procedure.  I did my homework beforehand.  I talked to friends, neighbors, and co-workers about their experiences and about the experiences of people they know.  This “research” helped me to be better informed about the hospital and the physician who operated on me…long before I even stepped into the facility.  How possible would it have been to do this research if I had gone abroad for this procedure?

Along with the rising popularity of medical travel I will briefly mention a few additional issues that are major concerns to me.  First, healthcare plans can be structured to favor those in higher income brackets, allowing them to choose from a variety of options simply because they have the funds, while lower-wage employees may be forced to go with a particular plan, simply because they can’t afford anything better.  That dichotomy just doesn’t feel right to me. 

Second, what if we want to save money on our medicines?  Isn’t it ironic that if we attempt to purchase prescription medicines from Canada the United States government will clamp down on us in an effort to protect our nation’s drug companies?   Sure, we’re told prescriptions are more expensive in the U.S. because drug research and development are costly.  But if I choose to fly to India to have my hip resurfaced, the federal government wouldn’t flinch.  Indeed, my employer may even give me a bonus for choosing a cost effective option.  Very ironic, isn’t it?

Yes, it’s an election year, and we’ve been hearing plenty of discussion about universal health care.  Does all the talk concern TASC?  Not really.  We already expected some reforms in the nation’s health care landscape.  And while such reforms may be inevitable, we know it will be some time before they become a reality.  Indeed, any such reforms will not require a dramatic change in the delivery system.  For example, moving to a single payer system—a change which could pose a threat to TASC and our Providers—is still an unlikely idea and one that is far off in the distance.
The nation’s different political parties approach these issues from opposing points of view.  In my opinion, a Republican President will further the consumerism movement set in motion by the current administration. A Democratic President will push for universal health care with ingredients like government mandates, employer participation, and consumer responsibility, all with the objective of reducing the number of the nation’s uninsured.  I do not think a more aggressive and dramatic move will be implemented—or if implemented, successful—no matter who is in the White House come next January.
Here is what the front runners are saying:
Hillary Clinton:  Clinton believes in offering more choices and lowering costs. Under her proposal, there will be a choice of affordable plans from which to pick.  To help cover costs to working families, the plan will provide tax credits and will limit the amount that working families have to pay for health care.
John McCain:  McCain believes in personal responsibility and that insurance reforms should foster competition and innovation so as to increase the variety and affordability of insurance coverage available to American families.
Barack Obama:  Obama believes in making a new national health plan available to all Americans, similar to the plan available to members of Congress. Employers that do not make a meaningful contribution to the cost of quality health coverage for their employees will be required to contribute toward the costs of the national plan.
I have participated in the healthcare realm as a recipient, a father, a husband, an employee, an employer, an insurance agent (past professional life), and as a third party administrator of medical reimbursement plans.  I think this experience means I have a unique perspective on the matter.  From that perspective I offer you my opinion of the changes that will be coming; I support effective steps to modify the current system.  These steps should not threaten our superior system of health care—a system which is supported by a competitive and well-funded environment.  These steps should continue to promote responsibility on the part of the health care consumer.  These steps will most likely include partially mandated (federal or state level) incentives for a participatory system involving government, employers and individuals.  And finally, these steps will embody a major goal:  to override today’s massive separation of services across our nation’s socio economic classes and to reduce the number of our uninsured neighbors.

Sometimes, you just get it right.  For years we at TASC have maintained that the owners of Sub Chapter S Corporations don’t need to install a Health Reimbursement Arrangement (HRA) in order to deduct health insurance expenses from their income taxes.  The government has stepped in with an Internal Revenue Service (IRS) notice that clarifies the rules regarding this issue.  As it turns out, TASC has interpreted these regulations correctly all along.  And we kept the confusion in perspective, refusing to put profit ahead of the needs of our small business owner Clients. 
Unfortunately, some of our competitors have preyed on their Clients and their tax professional.  Taking advantage of the confusion, these competitors stressed that the HRA was absolutely vital for Clients who hoped to deduct their health insurance premiums from their taxes.  These are the same firms that have tried to beat us over price. Our response:  you get what you pay for!  As with most things, superior quality isn’t cheap. 
What does your administrative fee pay for?  It pays for a third party administrator committed to bringing new ideas and concepts to the market.  TASC was first to spend the time and money to research the Section 105 (HRA) concept for sole proprietors, and we were first to bring it to the market.  Before TASC, sole proprietors had no tax saving options when paying for their health care.  TASC changed all that.  Indeed, our full-time Compliance Specialist constantly monitors developments that might affect our Plans, keeping an eye on the ever-changing rules and regulations and apprising you of developments when need be. 
Some competitors’ websites talk about recent audit decisions that reinforce various regulations surrounding these Plans.  They present these decisions as good news for Clients.  But they don’t tell you the whole story…that TASC assisted the defendants in these cases.  Yes, TASC was there. We paid the attorneys fees, we provided documentation, and we risked the penalties and interest that would have accrued had the audit been unsuccessful.  The ruling references TASC (aka AgriPlan and BizPlan) and can be viewed by clicking here .
We work hard for you.  We research all avenues so we can offer premium Plans and services.  We staunchly defend you so you can tend to running your business.  We hope you agree that TASC is an administrator that truly earns its fee.

The end of the year is in sight, and soon we will be enjoying the holidays.  For those of us in the employee benefits administration industry, the holiday season signifies a time of increased activity at work.  The months leading up to and following the end of the year are traditionally the busiest time of the year for our business.  Besides signing up new Clients and enrolling their Participants, this is when returning Clients and Participants re-enroll.  Yes, it will be quite hectic around TASC during the next few months.
More than ever, this year TASC is geared up for the peak season!  Since last year we have nearly doubled our number of Customer Service Representatives.  In addition, we’ve added positions to both our Outbound Call and e-mail staff.  Thanks to a creative team of planners, both buildings on the TASC Campus now have Contact Centers with teams trained to handle Client and Participants calls.  And we have a detailed plan in place for answering phones when call volume is higher than expected.  In essence, if needed, the entire TASC staff is prepared to serve as one large Contact Center.
We continued to strengthen our on-line applications.  The latest release of MyTASC went extremely well and addressed 30 bugs and enhancements.  In every instance, we have made it easier and faster for Clients and Participants to make changes.  Besides upgrading Enrollments, Payment Verification Reports, and Participant Lists, we have enhanced the Account Management pages so they open and upload faster and function better.
All of this growth and subsequent development is fueled by our aggressive Sales Department; they’re on track for another record-setting year.  And for that I am extremely grateful.   I thank all of our Providers, Clients, and Participants for their continued support and confidence in TASC.  All of us at TASC send you a sincere hope for a safe and wonderful holiday season and a healthy and happy year ahead.

We invite your comments regarding the CEO Blog or about TASC in general. Our new CEO Blog feedback option makes it easy to send your comments directly to me.  To do so, simply send an e-mail to ceofeedback@tasconline.com.