Wednesday, November 5, 2008

Procter and Gamble taxes fat employees, smokers. Congressman Carney says US should do same

U.S. Rep. Chris Carney says that a local program that gives workers a financial incentive to stay healthy could serve as a national model.

Carney discussed issues in an interview Friday with staff from The Daily Review. In the interview Carney also said he was very troubled over the current situation in Afghanistan and Pakistan, and discussed his views on the financial future of the Social Security program and ways that the No Child Left Behind Act needs to be improved.

Health care

To address the high cost of health insurance, Carney said the federal government needs to get involved in programs designed to prevent poor health.


*
Carney said a successful preventative program at Procter & Gamble’s Mehoopany plant could serve as a model for what could be done nationally.

The plant reduces its employees’ payments toward their heath insurance premiums if they meet any of six different measures of health, such as if they stop smoking, keep their blood pressure in a normal range and have a normal body-mass index, Carney said.

If they meet one of the measures, they’ll see in their paycheck a $7 reduction in the amount they pay toward their health insurance premiums, and if they meet all six, their health insurance premiums are reduced by $42 per pay period, he said.

As a result of the Procter & Gamble program, “productivity at the plant has increased, sick days have dramatically decreased, and employees are actually competing with each other to get healthier,” Carney said.

“I think the Procter & Gamble program is a way ahead (a way forward) for health care,” Carney said.

An emphasis on preventative health programs would also save taxpayers large amounts of money, because taxpayers currently have to pay the bills of people who lack health insurance and are treated at emergency rooms in hospitals when they become very sick, he said.


Daily Review

Monday, November 3, 2008

Business Model or Advertising Gimmick?

AT&T has announced plans to bring its mobile phone service business model to laptops, subsidizing the cost of the devices for customers who sign a 2-year service agreement.

A closer look at the plan reveals significant differences between the phone and laptop programs that make them apples and oranges.

First off, laptops cost more to begin with. This means that while mobile handset subsidies generally account for more than 50% of the device's total cost, laptop subsidies will probably be in the 15% to 30% range.

Next, laptop net service traditionally costs less. That may be because it was only available in a very limited way, but so what: the point is - phone service expense is already a consumer budget item, but people aren't used to paying monthly for their laptop. Just ask Boingo.

Finally, the laptop is not exclusive to AT&T like so many mobile handsets are. That element of lock-in doesn't exist in the computer industry. (And let's hope it never does...)

AT&T, Lenovo Offer Subsidized Laptops, Information Week