Health costs
Rising gasoline prices are another problem for U.S. automakers.
Over time, they’re sure to accelerate a shift in consumer tastes from relatively big SUVs to smaller, more-economical crossover models. Detroit has a few crossovers, but foreign brands dominate the market.
The average pump price will reach $2.40 a gallon by Memorial Day, with diesel hitting $2.50 ... both nominal records. The only silver lining: Prices may curb driving ... thus, an earlier-than-usual summer price swoon.
By Labor Day, gasoline will fall to $2 a gallon. By Dec., $1.80.

HR
As Rx drug costs continue to soar ... 16% or so this year ...
It’s a good time to review your company’s drug benefit plan. Consider tweaking your coverage and switching pharmacy benefit managers.
Employers can reap big savings by shopping around. Bigger PBMs include Express Scripts, Medco Health Solutions, and Caremark Rx. Smaller networks also offer good deals and are definitely worth a look.
Asking workers to buy drugs in bulk cuts costs for employers. Larger quantities of maintenance drugs can be purchased by mail and now also at some retail pharmacies fighting to keep market share.
Another growing strategy: Varying coverage levels for Rx drugs. For example, a company with a diabetic employee may lower the copay for drugs that keep the disease in check, saving money in the long run.

States have plans to slap a health care tax on large employers if they don’t provide a minimum level of insurance for their workers.
Md. will be the first. The legislature will give its approval to a bill requiring companies with more than 10,000 workers in the state to spend at least 8% of their payroll on health care. If they don’t, they must pay the difference to the state’s health program for the poor. Only one employer in Md. would be affected by the bill: Wal-Mart.
Conn., Wash. and later other states may follow Md.’s lead.

An increase in age discrimination cases is likely in the wake of a Supreme Court decision making it easier to prove charges of bias. The Court ruled that older workers don’t have to show that discrimination was intentional, only that it occurred. But it added that employers aren’t liable for policies based on “reasonable” factors other than age.
To protect against such claims, adopt a zero-tolerance policy for all forms of employment discrimination and harassment. Train managers on their legal responsibilities. And act swiftly on any complaints.

Travel
Airlines are starting to audit frequent-flier accounts, looking for members who may be selling accumulated miles and free vouchers to others. Selling such credits is against the rules, but airlines believe that the practice is becoming more widespread. If discovered, scofflaws will lose any remaining mileage credits.

A new U.S. passport regulation is sure to cause travel delays. Americans soon will need to take along their passports to Canada and Mexico to show border officials upon returning to the U.S. Aimed at thwarting terrorists, the rule will lead to the creation of “frequent visitor” passes for folks who regularly cross the borders.
But new computer chips in U.S. passports should be a big help in preventing passport fraud and reducing time spent waiting in lines.

© 2005 The Kiplinger Washington Editors, Inc.