bswift launches private HIX; experts debate ACA’s impact on the labor force; PBGC to pay pension benefits for Hostess retirees: 3 things you need to know this week in employee benefits

bswift introduces its own private health insurance exchange

The latest entrant to the private health insurance exchange market is benefits software and services firm bswift, which introduced Springboard Marketplace last week. The new offering showcases a variety of plans from numerous carriers, the ability to purchase care directly, wellness solutions and additional benefits—all with the aim of helping employees make smarter choices about their care.

With competition and retention in mind, CEO Rich Gallun says the company’s goal is to “use technology and information to simplify the administration of health care benefits, reduce costs and empower consumers.”

The private exchange industry has grown increasingly crowded in the last two years, a shift some experts say will only speed the national movement toward defined contribution health care.

Analysts spar over ACA impact on U.S. labor force

Hot debates broke out this week when the Congressional Budget Office, a nonpartisan entity, released an analysis predicting that major slashes to full-time positions could be a byproduct of the Affordable Care Act.

The CBO predicts 2.25 million fewer full-time jobs by 2024 as a result of ACA. However, this does not take into account the propensity for workers to choose different career paths based on this information, which could account for the loss of millions of jobs. Workers may be prompted to work fewer hours as avenues to gain insurance coverage have expanded through the exchange system—meaning that the incentive to work full-time to gain coverage drops.

However, CBO writers discovered that phrasing was key in understanding the emphasis of the report; the report states ACA would “reduce the amount of hours workers choose to work”—not necessarily that millions of jobs would be lost, as some lawmakers and analysts contend.

White House Press Secretary Jay Carney stated “claims that the Affordable Care Act hurts jobs are simply belied by the facts … [there is] no compelling evidence that part-time employment has increased as a result of the ACA.”

This week’s hidden gem: Save the Twinkie, save the world—PBGC to pay pension benefits for Hostess Brand retirees

Remember when the Twinkie, a classic childhood favorite, flew off the shelves following Hostess Brands’ bankruptcy filing in 2012? That same sense of loss and desperation will be avoided for Hostess retirees after this week’s news that the Pension Benefit Guaranty Corporation will fund benefits for close to 350 former employees.

“We think what PBGC is doing offers the best chance for struggling pension funds to survive in the context of inadequate bankruptcy laws which permit companies to abandon their responsibilities and shift their pension commitments to PBGC, other responsible employers and their workers,” Teamsters spokesman Brad Raymond says.

Under the new plan, the PBGC will pay guaranteed benefits of up to $12,870 a year for a Hostess pensioner with 30 years of service. The average Hostess retiree could see a reduction in benefits to about $520 a month from $650.