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Benefit Manager of the Year: 2007

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Benefits program focuses on employees


Approach emphasizes preventive health care

Published Sept. 17, 2007

By JERRY GEISEL

WAUKESHA, Wis.--If there is a constant in the group health care plan arena, it is that costs go up every year.

But a southeast Wisconsin-based manufacturer of standby power generators is the exception to that near-universal rule. Since 2004, Generac Power Systems Inc.'s health care costs have held steady, running in the range of $5,000 to $5,500 per year per employee.

This stabilization of costs did not come as a result of slashing benefits or increasing employee cost-sharing. Instead, it was achieved through a multifaceted approach with a strong emphasis on preventive health care.

"You may not be in the business of health care, but you need to be in the business of health care,'' said Linda M. Kuklinski, Generac's employee benefits and risk manager.

To that end, under Ms. Kuklinski's direction, Generac has:

  • Expanded its use of health care clinics at which Generac employees can receive a wide range of preventive services, as well as treatment for certain minor medical problems.

  • Contracted directly with a medical clinic provider using a nurse practitioner model that has substantially cut the cost of services. Generac employees obviously like the clinics, with patient volume rising 200% since 2003.

  • Given employees a strong financial incentive to seek preventive services. Employees who receive health risk assessments--measuring things such as weight, blood pressure and cholesterol levels--receive up to $500 from Generac, which is placed in a Medical Deductible Reimbursement Account to be used for expenses that fall under their health care plan deductible.

    Since health risk assessments were introduced in 2005 and fully implemented in 2006, nearly 80% of employees and 70% of spouses have received such evaluations, while the number of individuals in the high-risk category has been reduced by about 10%.

    Generac also has achieved an extraordinary 75% employee participation rate in its health care flexible spending account program. That is three to four times higher than typical participation rates for health care FSAs.

    To encourage FSA participation, Generac kicks in up to $200 each year for employees who contribute at least an equal amount. The payoff, Ms. Kuklinski said, is that employees are more likely to get needed medical care sooner because they have money in their FSAs, rather than later when more treatment and higher costs are likely.

    "Everyone has out-of-pocket expenses. We want to help employees stretch out their dollars,'' Ms. Kuklinski said.

    It is for these and numerous other accomplishments spanning her nearly 10 years at Generac that Ms. Kuklinski has been named Business Insurance's 2007 Benefit Manager of the Year.

    Ms. Kuklinski's accomplishments are no accident, say those who have worked with her.

    A vigorous work ethic is one factor.

    "She is one of the hardest-working people I know. She is available 24/7,'' said Sara Hames, a senior vp at Hilb Rogal & Hobbs Co. in Milwaukee, Generac's longtime insurance broker and benefits consultant.

    But hard work is far from the only reason for Ms. Kuklinski's success. A creative mind and a willingness to try new ideas also are important, say those who know her.

    "She thinks outside the box and you can always throw a new idea at her, no matter how crazy it sounds,'' Ms. Hames said.

    "She exemplifies Generac's philosophy to have the courage to try, the discipline to learn, the willingness to listen and the aptitude to execute,'' said Stephanie Borowski, Generac's vp of human resources, who also is Ms. Kuklinski's supervisor.

    While being adept at keeping the big picture in mind, Ms. Kuklinski also pays attention to detail. That enabled her, for example, to analyze and end a problem in which there was a long lag period between the time claims were incurred by Generac's preferred provider network and when it received the claims.

    Ms. Kuklinski isn't afraid to take a hard line, if necessary, with vendors. "You can and should demand that your expectations are met,'' she said.

    For Generac employees, though, Ms. Kuklinski wants them to know that the door of the employee benefits department is always open to them to quickly resolve problems--big and small.

    "We have a paternalistic culture. We want to help employees, be it on how to file a claim or understand an explanation of benefits statement,'' she said.

    "This is a family culture. Employees can call us with any question, anytime,'' said Ms. Kuklinski, who gives employees her cell phone number.

    Indeed, Ms. Kuklinski actively seeks input from employees, Generac top executives say.

    "What Linda has done very successfully is to ask employees what is important to them and then try to structure benefit plans accordingly,'' said Dawn Tabat, Generac's COO.

    It isn't only Generac employees whom Ms. Kuklinski wants to reach. She also reaches out to other employers, explaining to them, for example, how Generac is tackling health care problems.

    She is one of the leaders of the Save on Health Care Business Alliance of Waukesha County, which was created more than two years ago to give employers in southeastern Wisconsin an opportunity to exchange ideas and information on health care issues.

    At forums, she has described the Generac program to Alliance members, an opportunity she has relished.

    "As businesses, we have to work together to find answers to health care problems,'' she said.

    It is important, Ms. Kuklinski says, "to affect health care in a positive manner, with those who deal with it every day.''

    That sharing of knowledge is recognized by Generac's top executives.

    "As her supervisor, I know that Linda has done an outstanding job not only for this organization but for her community as well in the field of benefits,'' Ms. Borowski wrote in her letter nominating Ms. Kuklinski for BI's Benefit Manager of the Year competition.

    As for the future, Ms. Kuklinski says she will not rest on her laurels.

    "We have achieved a lot in a challenging environment. But we will never become complacent,'' Ms. Kuklinski said.