Managing Employee Risks and Benefits - R M 369k - Information, Risk and Operations Management (IROM)

	Managing Employee Risks and Benefits - R M 369k
Professor: Patricia M. Arnold, CPCU, ALCM	printable version
Office: GSB 5.126A Office Hours: 2 - 3 PM Fridays, or by app't	calendar
Phone: 475-6728	syllabus
Course time, dates: 10 - 11 AM, M-W-F	e-mail address: pat.arnold@mccombs.utexas.edu OR pma55@austin.rr.com
Classroom: CBA 4.332	Teaching Ass't: Danielle Tobin (danielle.tobin@bba05.mccombs.utexas.edu)

Calendar - Fall 2009
This course will examine the way in which business and society make an assessment of, control and transfer risk. It is designed for the student with no previous knowledge of risk management. Resources: Textbook: Risk Management for Enterprises and Individuals (by Baranoff, Etti; Brockett, Patrick Lee; Kahane, Yehuda) (Use flatworldknowledge.com web-based text, or purchase student materials at http://www.flatworldknowledge.com). Instructions to access the online text will be provided in class. Reference Book: National Underwriter Tools and Techniques Employee Benefit and Retirement Planning (11th ed.). Readings from outside sources are indicated on our calendar. They are presented here to provide the students with current information on associated topics. Some of these may contain testable content.
Reading and Homework Assignments: the calendar below shows dates and assigned topics. Please be prepared for each class.
Evaluation & grading: see syllabus

DATE	TOPICS	LIBRARY: Homework and Resources
August 26	Syllabus overview & use of resources, textbook, reference sources	Slideshow: Intro slideshow; review key concepts and Blackboard resources. Q's: What does your employer owe you? Where do you want to go in retirement, and how do you plan to get there?
Part One: Fundamentals of insurance, tools, and Health - case studies: SAP, GE, Safeway - CSR, SEC and Reuters
August 28 - Sept 4	Risk & Society Risk...Theories "Pure" risk, perils, hazards Direct and indirect loss Pre and post-loss risk management Environmental health/safety; life safety Corporate policy statements and CSR reports Self-insurance, loss control, risk mapping Limits Contracts, hold harmless, bonding	Reading: Chapter 1 and skim thru 4, chapter 5 PBS Glossary - Health Terms III Glossary "Risk Managers' Top 10 Risks": #10: Failure to Attract or Retain Top Talent (Best's Review June 2009) Attaining sustainable growth through corporate social responsibility (IBM) SAP corporate social responsibility report - 2009 (reportalert.info), index & detail; investor info from SAP home website; Employee Interaction Center; policy and values; Benefits; "The Two Faces of Risk" (SAP 6/09) Safeway 2008 CSR; GE; SAP (diversity? downsizing?) Healthymagination (GE)
Sept 4	Review slideshow incl. emerging risks
Sept 9	Roles: Employer & Enterprise Risk Management Evolution of Risk Management; ERM Employment what is an employee cost of risk Use of contracts & agreements Using insurance contract Retaining risk, use of captives, third-party administrators, self-insurance	Reading: Chapter 5 Slideshow Screening Contract Employees (Supplement to Workforce Management 6 2009) Emerging Risks (PwC 6 09) Safeway case study Resources: Safeway 2008 CSR; GE; SAP Challenges in creating a Global Risk Management Program (RIMS session: Drug Abuse in the Workplace) Congressional Budget Office "Health" segments
September 11	Roles: Insurance and Risk Insurance: Solutions, Institutions and Operations Types of insurance: gov't, private, etc Law of large numbers: pooling and homogeneity Insurer side: affordability/availability indemnification insurance product overview reinsurance Insurable risk characteristics, exclusions Advisory bureaus, markets, classes of insureds/occupancies Legal side, remedies, contracts Standards Insurance (risk transfer), investment, loan?	Reading: Chapter 6; Chapter 7 Slideshow (ch. 6); chapter 7 Contract Review Summary and Minimum Acceptable Requirements, Request for Certificate of Insurance Guide to Best's Financial Strength Ratings "Health Plans" (Best's Review June 2009) Safety Act (from BPSI website) Risk Analysis template (RIMS) AON Health Care Reform Survey (July 09) III Financial Services: Life/Health Industry, Premiums By Line; a brief history
September 14	Types of Insurers & Marketing Systems Insurance Operations; Markets and Regulation Distribution systems, supply/demand dynamics, intro to Alternative Risk Transfer (ART) markets Roles in production, underwriting, claims Reinsurance and Alternative Risk Transfer Insurance Markets and Regulation Current dynamics - courts, client exposures, regulatory, political Reinsurance and Excess & Surplus Lines Underwriting cycle, combined ratio NAIC and health insurance	Reading: Chapter 7; Chapter 8 III topics: Captives and Other Risk-Financing Options; Buying Insurance: Evolving Distribution Channels ; Residual Markets "Dispelling Myths", "Learning Curve" (HSA's), "Wealth of Opportunities" (Life), "Health Insurance Retail Stores", "Selling Up in Down Times" (Life) (all courtesy Best's Review June 2009) Bill may help self insurers PEO's and Texas Licensing/Regulation; code Texas: Nonsubscriber & W/Comp, PEO's Using an Alternative Risk Solution for International Employee Benefits (slideshow) (Bermuda Captive '07)
September 16	Financial Operations of Insurers (pricing and ratemaking) Insurance Operations; Markets and Regulation Underwriting risk Investment risk Organizational environment Pricing risk Capacity, surplus, reserving, mortality tables	Reading: Chapter 7; Chapter 8 III Topic: Accounting; U S Health Medical Loss Ratio (Best's Review June 09) Workers' Compensation Fraud (Blackboard)
September 18	Government Regulation of Insurance Insurance Operations; Markets and Regulation History of regulation - federal, state - of the “business of insurance” Advisory organizations, TPA's Rates, forms Market Conduct Surcharges, markets/risk appetite Modeling, red-lining, CAT's & spread of risk Pricing: tiers, territories, groups/classes Loss Mitigation, cost containment	Reading: Chapter 7; Chapter 8 slideshow chapter 8 III Topics: McCarran-Ferguson Act; Insolvencies/Guaranty Funds; State-Backed Insurance; Regulation Modernization Interstate Insurance Product Regulation Commission Heath and Human Services Guidelines for Presenting Risk Information eBilling HIPAA v. W/Comp Claims (Ingenix 4/08) Medicare, Medicaid and SCHIP Extension Act of 2007 (Bus Ins 6 2009) Centers for Medicare & Medicaid Services Heath Insurance Reform for Consumers and for Employers Office of Injured Employee Counsel (OIEC - Texas) TDI Reports Listing Legislative Reports and Presentations
September 21	Quiz 1
September 25	Insurance Contracts Demystified Fundamental Legal Doctrines, Structure and Analysis Documents - binder, loss report, proof of loss, claim draft, certificate, waivers Contracts: relational, incomplete Authority levels, agency and transaction risk	Reading: Chapter 9, Chapter 10 slideshow - chapter 9; chapter 10 State Health Care Reform: The Benefits and Limits of "Reinsurance" (Heritage Foundation, Edmund F. Haislmaier, 2007) Occupational Acc vs. W/Comp (Iowa - 8th Circuit '09)
September 28	Benefit Systems & the Employer - Introduction Types: public, private; group & non-group Injured workers & outcomes Valuing losses, reimbursement systems direct and indirect losses litigation reserving negligence remedies Management of contract, agency, employment risk Cost of risk, resources - drivers, strategic decision making, ERM **Tools and Techniques: Part B, Appendices & Chapter 12**	Reading: review National Underwriter reference book; skim Chapter 12 Chapter 12 slideshow Insurance Health, Vision, Dental Long-Term Care Workers' Compensation Accidental Death & Dismemberment Disability Income Life Alternative Programs Intro: Directors and Officers, Employment Practices, Fiduciary - Legal Liability & Defense Expense (tort, negligence) insurance Small Employer Group Application (Aetna) SBA guide to plans The Economic Case for Health Care Reform (Council of Economic Advisors 6/09) and Small Business (6/25/09) Health Policies (OECD) "Big Employers Freeze Pension Plans" (Watson Wyatt) Employer Costs for Employee Compensation - June 2009
September 28	Exam Prep
October 2	Exam #1	chapters 1, 5 - 9 and selected readings (TBA)
Part Two: Retirement - case study: Indiana pension funds, consumer groups, widow v. Chrysler
October 5	Discuss research and deadlines Benefit Systems & the Employer - Introduction Types: public, private; group & non-group Injured workers & outcomes Valuing losses, reimbursement systems direct and indirect losses litigation reserving negligence remedies Management of contract, agency, employment risk Cost of risk, resources - drivers, strategic decision making, ERM *Tools and Techniques:* *Chapter 28 - THE PROCESS OF EMPLOYEE BENEFIT PLANNING*	Reading: Chapter 10; skim Chapter 12; Chapter 17 Review National Underwriter reference book: Tools and Techniques - see Blackboard Course Documents, "slideshows" folder for Powerpoints for each assigned chapter. Insurance Health, Vision, Dental Long-Term Care Workers' Compensation Accidental Death & Dismemberment Disability Income Life Alternative Programs Intro: Directors and Officers, Employment Practices, Fiduciary - Legal Liability & Defense Expense (tort, negligence) insurance Research Day One: Ginsburg & Supreme Ct
October 7	Systems and roles Workers Compensation and Unemployment Compensation; Business Insurance *Tools and Techniques:* *Chapter 28 - THE PROCESS OF EMPLOYEE BENEFIT PLANNING*	Reading: Chapter 15; Chapter 16 slideshow for chapters 15 thru 18 III Topic: Retirement Pension Benefit Guaranty Corp; what is? ERISA (Blackboard) Review National Underwriter reference book: Tools and Techniques - ERISA Chapter 12 (see Blackboard Course Documents, "slideshows" folder for Powerpoints for each assigned chapter).
October 9	Life Cycle Financial Risks Demographics; aging workforce *Tools and Techniques:* *Chapter 12 - ERISA Reporting and Disclosure*	Reading: Chapter 17 Corporate Health Care Policy Forecast Survey (Miller Chevalier June 2009) Managing Healthcare Design Build (MCDmag.com March/April 2009) Bridging the Gap (Treasury and Risk 4/07 Pensionopoly: the new retirement game (CA)
October 14	Public programs Social Security *Tools and Techniques:* *Chapter 3* - SOCIAL SECURITY	Reading: Chapter 18
October 14	Quiz 2 (due - completed - on Oct 19!)	Online text: 10, 12, 16-17, T & Tech: 1, 12, 28 Discuss grading, extra credit (see syllabus)
October 16	Outline due (three levels)	Research Day Two
October 19	Mortality Risk Management - Individual Life Insurance and Group Life Insurance *Tools and Techniques:* Chapter 1 -DESIGNING THE RIGHT RETIREMENT PLAN *Chapter 2 - PLANNING FOR RETIREMENT NEEDS*	Reading: Chapter 19 Slideshow from online text see Blackboard for related Tools and Techniques slideshows
October 21	Bring in Exercise Two completed! (sub for quiz 2) Employment-based Risk Management (general) *Tools and Techniques:* Chapter 30 - DESIGNING THE RIGHT HEALTH BENEFIT PLAN Chapter 4 - Medicare Chapter 45 - HEALTH INSURANCE Chapter 46 - HEALTH MAINTENANCE ORGANIZATION (HMO) Chapter 47 - HEALTH SAVINGS ACCOUNT (SECTION 223 PLAN) Chapter 48 -HEALTH REIMBURSEMENT ARRANGEMENT (HRA) Chapter 49 - LONG-TERM CARE PLAN Chapter 50 - SICK PAY (SHORT TERM DISABILITY) Chapter 51 - LONG-TERM DISABILITY INSURANCE
October 23	Employment-Based and Individual Longevity Risk Management *Tools and Techniques* Chapter 41 - Group-Term Life Insurance
October 26	Employment-based Risk Management (general) *Tools and Techniques* Chapter 41 - Group-Term Life Insurance	Reading: Chapter 20 HealthReform.gov (updated weekly) slideshow: chapter 20
October 28	Workshop six and above readings continued	(above continued)
October 30	Exam #2 - Part Two	chapters 10, 12, 16, 17, 18, 19 (online text), and selected chapters from Tools and Techniques
*Part Three: Planning (and research paper) - case study: influenza - use Tools and Techniques* resource**
November 2	Employment-based Risk Management (general) Overview of flu pandemic issues; employer obligations and threats - disclosure, implications for vendors and supply chain, compliance	Reading: chapter 20 - Employment Based Risk Management (general) slideshow: chapter 20 III Topic: Key Person Centers for Disease Control New Scientist special report - "Timeline: The secret history of swine flu" & "Don't be Fooled...". Swine Flu and Workplace Privacy
November 4	Guest Speaker: Jay Thompson, attorney at law - Thompson Coe Cousins and Irons	Compliance risk - Federal: IRS - EP Examination: Employee Plans Team Audit; IRS form 5500 DOL: Health Plans & Benefits; ERISA; HIPAA; Womens' Health & Cancer Rights Protections; Fiduciary Responsibilities; American with Disabilities - litigation and enforcement, Genetic Information Nondiscrimination Act (GINA), Patient Safety and Quality Improvement Act of 2005 (PSQIA), Health Information Technology for Economic and Clinical Health (HITECH) Act OSHA: Publications Medicare; regulations and guidance State of Texas: Labor Code; Health Care Liability; DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES Integrating costs (Berkeley)
November 6	Employment-Based and Individual Longevity Risk Management Chapter 5 - TRADITIONAL IRA Chapter 6 - ROTH IRA Chapter 7 - QUALIFIED PLANS: GENERAL RULES OF QUALIFICATION Chapter 8 - QUALIFIED PLANS: DISTRIBUTIONS AND LOANS Chapter 9 - ESTATE AND RETIREMENT PLANNING WITH QUALIFIED PLANS AND IRAS	Reading: Chapter 21 - Employment-Based and Individual Longevity Risk Management slideshow: chapter 21 HealthReform.gov (updated weekly) Risk Analysis template (RIMS) eBilling HIPAA v. W/Comp Claims (Ingenix 4/08)
November 9	Employment and Health Chapter 45 - HEALTH INSURANCE Chapter 46 - HEALTH MAINTENANCE ORGANIZATION (HMO) Chapter 47 - HEALTH SAVINGS ACCOUNT (SECTION 223 PLAN) Chapter 48 -HEALTH REIMBURSEMENT ARRANGEMENT (HRA) Chapter 49 - LONG-TERM CARE PLAN Chapter 50 - SICK PAY (SHORT TERM DISABILITY) Chapter 51 - LONG-TERM DISABILITY INSURANCE Social programs; Public assistance programs: Texas MAP	Chapter 21 continued Small Employer Group Application (Aetna) SBA guide to plans The Economic Case for Health Care Reform (Council of Economic Advisors 6/09) and Small Business (6/25/09) Health Policies (OECD) "Big Employers Freeze Pension Plans" (Watson Wyatt) Employer Costs for Employee Compensation - June 2009
November 11	Business Risk Management Use of technology Data Privacy & Catastrophic exposures Vendor relationships, outsourcing	Reading: Chapter 22 - Employment & Health slideshow: chapter 22 Ringing the Pandemic Preparedness Alarm Bells Flu pandemic declared by World Health Organization; WHO site Avian Flu Handout
November 13	Guest Speaker: Igor Frolow, 21stCenturyTechnologies Disaster Recovery Planning, Business Continuity	2009 BUSINESS RESILIENCY SURVEY (courtesy iJet) Avoiding Unwanted Surprises (Aberdeen 6 09)
November 16	Role of insurance, cost of risk, loss financing Business Risk Management	Chapter 22 continued RM's Choices in a Down Economy (AON 6 09) Disaster Recovery Planning for a Global Organization - slideshow, audio - RIMS Conference 2009
November 18	Guest Speaker: Becky Parker - McQueary Henry Bowles and Troy Management Liability, Fiduciary Liability Business Risk Management	Research Day Three: Paper Due! (post to Blackboard on SafeAssign, bring hard copy to class)
November 20	Issues in mergers, acquisitions, transactions Business Risk Management Chapter 13 - LIFE INSURANCE IN A QUALIFIED PLAN Chapter 14 - DEFINED BENEFIT PENSION PLAN Chapter 17 - PROFIT SHARING PLAN Chapter 18 - ESOP/STOCK BONUS PLAN Chapter 19 - SAVINGS/MATCH PLAN Chapter 20 - SECTION 401(K) PLAN Chapter 22 - HR 10 (KEOGH) PLAN Chapter 24 - SIMPLIFIED EMPLOYEE PENSION (SEP)	Employment Tax Costs (PwC - 7 pages) Insurance Issues in Mergers and Acquisitions - slideshow, audio - RIMS Conference 2009
November 23	Guest Speaker: Chris Wilbratte, Quantum Pension Services Retirement planning
November 30	Quiz Three Write-ups Due! Safety, Leadership, Credit Ratings Employee Privacy, Crime/workplace violence, Tort Liability	III Topic: Privacy in the 21st Century RIMS session: Drug Abuse in the Workplace Macho Oil Men (BNet)
December 2	Workshop and Exam Prep
December 4	Exam #3 - Part Three	Online text: chapters 20-22, selected chapters in Tools and Techniques (TBD) Discussion Board write-ups due!

Updated 11/19/2009