2014 Healthcare Benefits Trends

BENCHMARK STUDY

healthcaretrendsinstitute.org

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BackgroundThe Healthcare Trends Institute, an educational platform focused on

the rapidly changing healthcare benefits industry, recently conducted its annual employee healthcare benefits study from June through November 2014. The national survey to more than 250 human resources (HR) executives, benefit specialists and other benefit decision-makers across the country, shed light on employer-sponsored coverage trends in the era of healthcare reform and Affordable Care Act (ACA) provision requirements. This includes the types of benefits employers are offering their employees, as well as their interest in defined contribution plans, private exchanges and wellness programs.

This survey includes results and insights that formed the basis for the 2014 Healthcare Benefits trends report on the following topics:

CURRENT STATE OF HEALTHCARE BENEFITS: Identifies current employee benefit program offerings as well as

companies’ strategic areas of focus regarding healthcare reform initiatives.

USE OF HIGH DEDUCTIBLE HEALTH PLANS, WELLNESS PROGRAMS, DEFINED CONTRIBUTION MODEL, AND PRIVATE EXCHANGES:

Explores employers’ views on implementing high deductible health plans, adopting wellness programs, moving to a defined contribution plan and private exchanges to control costs and remain ACA compliant.

HEALTHCARE BENEFIT TRENDS – LOOKING FORWARD: Considers new approaches employers are considering/adopting to

select and purchase future health care benefits.

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Study Highlights• Employee health benefits were offered by 91.3% of surveyed

respondents’ companies

• The majority of employee health benefit programs offered by respondents’ companies include PPO (47.9%), family (44.1%), prescription drug (41.4%), and high-deducible health plan (HDHP) (30.8%)

• Of those whose companies offered employee health benefits, a majority (39.5%) of the respondents indicated their company offered only one health insurance plan, 28.1% reported offering two health plan options, while 22.4% offered three health plan options

• The majority of respondents (58.8%) indicated health benefits offerings were important to very important for improving employee morale and satisfaction, while 54.7% for retaining and attracting quality employees

• Respondents indicated healthcare reform will impact their employee benefits packages by adopting new wellness, preventitive health programs (37.6%), increasing employee cost-sharing (33.8%), and increasing premium contributions (31.9%)

• Almost half (48.2%) of the respondents are expressing somewhat to very concerned about the impending 2018 Cadillac Tax

• 77.5% of respondents have some familiarity with defined contribution health benefit plans (DCPs) and private exchanges

• Of the respondents who indicated they were interested in DCPs for the future, 11.1% reported they were considering DCPs for 2015, 61.1% were considering DCPs for 2016, and 22.2% indicated considering DCPs in 2017

• 36.2% of respondents indicated they were still learning about a healthy lifestyle incentive/program, 29.8% of respondents were already utilizing a program, and 17.4% were considering a program for the future.

• For promoting positive health outcomes at their companies, 52.5% of companies offer at least one Wellness Program, 28.7% of companies offer an opportunity for a Health Risk Assessment, 22.2% offer biometric screening, and 29.1% of surveyed companies do not promote any positive health outcomes

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Findings:• Employee health benefits were offered by 91.3% of surveyed respondents’ companies

• The majority of employee health benefit programs offered by respondents’ companies include PPO (47.9%), family (44.1%), prescription drug (41.4%), and high-deducible health plan (HDHP) (30.8%)

Insights:

Health insurance remains the most offered employee benefit among both small and large employers. PPO family plans remain the most common type of coverage selected by employees. This trend is consistent with current marketplace analysis, which finds on average about 50 percent of the group market is covered under a PPO type arrangement. While large companies are still offering benefit-rich insurance this may dwindle as companies begin to contemplate the 2018 ACA excise tax provision and consider how to best provide benefits without being penalized.

An interesting highlight in this year’s results are high deductible health plans (HDHP) surpassed HMOs, indicating that more employers are offering HDHPs than in prior years. Health Savings Accounts are not much far behind. AHIP data suggests that this is an upward trend that is really starting to gain some traction. In March of 2005 about 160,000 large group enrollees had an HSA, slightly above the 147,000 in the small group market. According to 2013 AHIP statistics the large group market has ballooned to 9.5 million HSA participants and the small group market about 2.5 million.

As companies continue to look for ways to effectively manage healthcare costs, the group market is turning to HDHP and HSAs, and with the ACAs Cadillac Tax looming in the near future, even more employers may consider the benefits of these plans in the era of healthcare reform.

What employee benefits do you currently offer?

PPO - 47.9%

Family - 44.1%

Prescription Drug - 41.4%

HDHP - 30.8%

HMO - 28.5%

Mental Health - 25.9%

Employee-Only - 25.1%

HSA - 21.7%

Self-Insured - 14.1%

Retiree to Former Employees - 11%

HRA - 9.9%

None - 8.7%

Catastrophic - 7.2%

Other - 5.7%

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Approximate breakdown of employee coverage?

Catastrophic

4.8%12.4%52.4%5.7%24.8%

7.9%40.1%19.7%20.4%11.8%

Employee-Only

10.8%41.3%21%12%15%

Family

7.9%7.9%47.6%11.1%25.4%

HDHP

13.9%6%17.2%42.4%20.5%

HMO

8.8%8.8%53.5%10.5%18.4%

HRA

5.2%6.7%47.4%10.4%30.4%

HSA

29.6%13.3%40.7%7.4%8.9%

Mental Health

8.5%5.4%10.8%43.8%31.5%

None

19.5%14.7%43.2%11.1%11.6%

PPO

36.8%11.6%39.4%5.8%6.5%

Prescription Drug

8.2%49.1%10.9%8.2%23.6%

Retiree to Former Employee

24.6%5.7%48.4%4.9%16.4%

Self-Insured

(findings on next page)

1-20% 21-40% 41-60% 61-80% 81-100%

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Findings:• Of those offering health plans, 52.1% responded that 61-100% of their

employees were covered by a family health plan and 48.4% responded that 61-100% of their employees were covered by a prescription drug program

• 48.0% of respondents indicated that 61-100% their employees were covered by an employee-only plan, while 42.9% of responded that 61-100% of their employees were covered by a mental health program.

• 19.9% of respondents indicated that 61-100% of their employees were covered by an HMO plan

Insights:

A little over half of employees continue to take advantage of the opportunity to purchase employer-sponsored coverage, with the overwhelming majority choosing to insure their entire family. The next sought after benefit, prescription drug coverage, goes hand-in-hand to compliment their health plans. With a mindful eye on costs, many employers looked to contain prescription drug costs through separate deductibles, copayment amounts and tiered formulas.

The mental health benefit continues to be provided to employees. Those in companies with more than 50 employees are following the federal parity law by providing insurance that treats mental and behavioral health and substance use disorder conditions equal to or better than medical/surgical coverage. Also, coverage purchased on the health insurance exchanges under the ACA provide for mental health benefits. These purchasing trends will most likely continue over the next few years.

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Findings:• Of those whose companies offered employee health benefits, a majority

(39.5%) of the respondents indicated their company offers only one health insurance plan option

• 28.1% reporting offering two health plan options, while 22.4% offered three health plan options

Insights:

Almost 40 percent of employers reported offering only one health plan option to employees in 2014, compared to 34 percent in 2013. Employers seem to be giving more consideration to their offerings, looking to understand what will be a fit for their organization. These results also indicate an emerging trend toward HDHPs v PPOs, as PPO selection was under 50 percent this year. Historically having a choice of benefit-rich health plans has been a perk of working for a large company. In the era of healthcare reform this trend seems to be moving in the opposite direction.

First, every year more and more employers indicate an interest in consumer directed plans. Moreover, experts agree that about a quarter of companies today are choosing to offer only a HDHP linked to a tax-advantaged health savings account for medical expenses. Employers continue to look for ways to save money and HDHPs seem to be the answer. They offer employers and employees premium savings and are also designed to make employees more cost-conscience healthcare consumers.

How many different group health insurance

plan options do you give employees?

1 - 39.5%

2 - 28.1%%

3 - 22.4%

None - 9.9%

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Findings:• Respondents indicated healthcare reform will impact their employee benefits packages by increasing employee

cost-sharing (33.8%) and increasing premium contributions (31.9%)

• Slightly more than 5% (5.7%) indicated it would shift their company towards a defined contribution plans (DCPs)

• Only 5.3% indicated reform would impact them to no longer offer healthcare benefits

Insights:

Wellness programs have received more attention as new rules for wellness promotion went into effect in January of this year under the ACA. In the U.S. about half of employers already offer some kind of wellness initiative for their employees. More are expected to participate as companies look to engage and educate their workers about wellness activities and other healthcare services.

This year’s results are consistent with the above statement. Company wellness programs are on employers’ radars due to healthcare reform. Among the new ACA rules outlined for wellness programs that reward workers for meeting health goals is a total incentive increase from 20 percent to 30 percent. Meaning, should a company choose to, they can reduce an employee’s cost for health coverage by up to 30 percent for participating in workplace wellness initiatives.

Employers are also considering the cost-sharing component of their employees’ benefits package. About equally they have either increased the amount that their employees pay or the amount they pay toward their employees’ premiums. Plan design and cost-sharing are the two big drivers of benefit programs. If employees move to a HDHP, employers can enable them to better plan for their healthcare utilization and savings by giving them the tools they need to make the most of their coverage. Wellness initiatives can further promote efficient use of healthcare and spending.

How has healthcare reform impacted

your employee benefits package?

Adopted New Wellness, Preventive Health Programs - 37.6%

Increased Employee Cost-Sharing - 33.8%

Increased our Premium Contributions - 31.9%

Healthcare Reform Has Had no Effect on Our Employee Benefits Package - 27.4%

Enhanced Wellness, Preventive Health Programs - 14.8%

Reduced Covered Benefits - 13.3%

Introduced HDHPs/CDHPs - 8.7%

Shifted to Defined Contribution Plans (DCP) - 5.7%

No Longer Offer Healthcare Benefits - 5.3%

Other - 1.9%

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Findings:• The majority of respondents (58.8%) indicated health benefits offerings were

important to very important for improving employee morale and satisfaction, while only 5.1% felt they were not important

• In addition, more than half of respondents indicated health benefits were important to very important for retaining and attracting quality employees (54.7%) and improving employee health, reducing absenteeism, and improving productivity (54.3%)

Insights:

Companies continued to provide health benefits to their employees, with close to 60 percent of employers believing it’s important to employee morale and satisfaction. The findings suggest that moving forward, they’ll continue to offer health benefits with over half of employers citing that they are valuable for attracting and retaining talent and improving productivity and reducing absenteeism.

Recent workplace studies also conclude that from an employee’s perspective health benefits rank just as high in importance as their compensation. Therefore, it remains a highly unlikely proposition that companies will discontinue providing employer-sponsored coverage anytime in the near future.

5 - Very Important

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1 - Not Important

Improve Employee Health, Reduce Absenteeism, Improve Productivity - 3.70 Avg. Rating

Improve Employee Morale and Satisfaction - 3.78 Avg. Rating

Retain and Attract Quality Employees - 3.69 Avg. Rating

5.9% 3.9% 35.8% 22.8% 31.5%

5.1% 7.4% 28.8% 22.2% 36.6%

10.5% 2.7% 32% 16.8% 37.9%

How important are your health benefits

offerings to...

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9.1%12.5%26.6%28.5%23.2%

Findings:• Almost half (48.2%) of the respondents are expressing somewhat to very

concerned about the impending 2018 Cadillac Tax

• In order to not be penalized under the Cadillac Tax, respondent companies are moving to a high deductible health plan (30.4%), however, a similar count (30.4%) are not taking action quite yet

Insights:

The one clear action employers are looking to are HDHPs to ensure not being penalized under the excise tax coming in 2018. The tax that companies want to avoid applies to plans whose value for single coverage is more than $10,200 and for family coverage greater than $27,500. Because the implementation remains three years away, companies are in various stages of planning for this impending provision.

Employers who believe they will be affected by the tax are moving toward HDHPs as an affordable solution for their employees and for their companies. This survey finding correlates with their interest in defined contribution plans, as this is often the platform used in conjunction with this health coverage option to help control a company’s complete benefits costs. HDHPs offer employers a way to keep health care costs in check and remain ACA compliant.

5 - Very Important

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1 - Not Important

2.56 Avg. Rating

Is your company concerned about the impending 2018 Cadillac Tax?

In order to not be penalized under the Cadillac Tax, what actions is your company looking to take:

Does Not Apply to Our Company - 34.6%

Move to a High Deductible Heath Plan - 30.4%

We Have Not Taken Any Actions Yet - 30.4%

Eliminate Account-Based Products - 9.1%

Cut Subsidy of Health Benefits to Spouses or Dependents of Workers - 5.3%

Eliminate All Health Insurance Benefits - 1.5%

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Findings:• The majority of respondents (77.5%) of respondents indicated they have

some familiarity with defined contribution health benefit plans (DCPs) and private exchanges

• 22.4% of respondents indicated they were not familiar with Defined Contribution Plans (DCPs) and private exchanges.

Insights:

Defined Contribution Plans began as retirement accounts for retiring employees, but more companies are adopting the DCP model for providing healthcare benefits. Using this model, employers give employees a specific dollar amount (a defined contribution) to “spend” on a selection of benefits employees then “shop for” on a private exchange. While nearly half of the survey respondents are at least somewhat familiar with DCPs and private exchanges, over one-fifth indicates they have no familiarity with them—a sizable group who could be missing out on the cost-savings and administrative convenience afforded by the DCP model. DCPs for healthcare benefits and private exchanges are relatively new mechanisms that employers will need to fully explore and understand in order to make informed decisions for their companies. Education of DCPs and private exchange models will continue to play a large role as to their adoption rate in companies, and as more employers embrace them, awareness of DCPs and private exchanges will increase side-by-side.

5 - Very Familiar

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1 - Not Familiar

22.4% 35.4% 23.9% 10.3% 7.9%

2.46 Avg. Rating

How familiar are you with defined

contribution health benefit plans (DCPs)

and private exchanges

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Findings:• 31.9% of respondents indicated they believed exchanges will lead employees

to a better understanding of benefit costs. Furthermore, 17.9% of these respondents indicated a DCP offering would also lead to help employees make more cost-conscious benefit decisions.

• Allowing the company to continue offering benefits that would otherwise be in jeopardy was reported at 14.8%, and leading to lower health benefits costs for the organization was reported at 9.5%

Insights:

Of the employers in the survey who understand the value of the DCP model, most appreciate that it raises employee awareness of their healthcare costs by making them a bigger part of their benefit decisions. Aside from the employer furnishing each employee with a fixed dollar amount to use toward enrolling in a health plan, most private exchanges provide employees with a choice of numerous health plan and network options, giving them the opportunity to make selections based on both coverage and financial needs. Addressing organizational healthcare costs remains an important goal for employers using a DCP strategy, but so does involving the employee in the process to help ensure positive healthcare outcomes that are beneficial to both employers and their workforce.

Do you think offering a defined

contribution plan (DCP) would:

I Don’t Know, I am not Familiar Enough with DCPs - 46.4%

Lead to Better Employee Understanding of Benefit Costs - 31.9%

Help Employees Make More Cost-Conscious Benefit Decisions - 17.9%

Offer a Wider Array of Options for Benefit Plans - 15.2%

Allow a Company to Continue Offering Health Benefits That Would Otherwise Be in Jeopardy - 14.8%

Lead to Lower Health Benefit Costs for the Organization - 9.5%

Allow the Company to Focus Less on Benefit Selection and More on Employee Value - 5.7%

Other - 1.1%

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Findings:• 24.5% of respondents were using DCPs (not on a private exchange), while

6.8% of respondents were using DCPs on a private exchange

• 6.8% were considering exploring/adopting defined contribution plans (DCPs) to offer on a private exchange in the future

• 41.9% of respondents have not begun to explore defined contribution plans

Insights:

Controlling healthcare costs through a DCP/private exchange model may provide the solution many employers turn to in the near future. As the findings indicate, nearly one-quarter of respondents are already using a DCP, and 6.8% are already using a private exchange. What’s more, nearly one-fifth are either still learning about (12.8%) or considering (6.8%) adopting a DCP to offer on a private exchange, which shows many employers are seeing the potential value of this form of providing healthcare benefits. It’s likely some of these companies will make the decision that the DCP/private exchange model is the right solution for their organization and employees.

Where are you in the process of exploring/

adopting defined contribution plans

(DCPs) to offer on a private exchange?

I Haven’t Begun - 41.9%

Already Using (Not on a Private Exchange) - 24.5%

Still Learning - 12.8%

Considering - 6.8%

Already Using on Private Exchange - 6.8%

Not Interested - 6.8%

Other - 0.8%

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Findings:• Insurance brokers (50%) and benefit consultants (30.2%) were the top two external partners respondents

reported they would depend on to learn about new health benefit models, such as defined contribution plans (DCPs) and private exchanges

• 26% of respondents reported they would do the research independently

• Payroll companies (4.6%) are the least used resource for learning about new health benefit designs and distribution models

Insights:

Since the early days of the ACA, insurance brokers and benefit consultants have been in the forefront of supporting employer needs for education and advice on employee healthcare benefits, so it’s not surprising that they earned the top two spots on the list. Benefit decision-makers will continue to depend on them for guidance as they move away from the more traditional forms of health insurance coverage and distribution models and explore the ins and outs of DCPs and private exchanges. However, all employer benefit partners are likely to become more important sources of information to employers as they assess their existing employee benefits strategy. Healthcare organizations across the employee benefits space are increasingly working together to better meet the product and service demands of employer groups, and as consumerism takes hold in the marketplace, they will offer more tools and resources to support their various stakeholders.

What partners would you depend on to

help you learn about new health benefit

designs and distribution models?

Insurance Broker - 50%

Benefit Consultant - 30.2%

Will do Research Independently - 26%

Insurance Carrier - 16%

None - 14.5%

TPA (Third Party Administrator) - 11.8%

Industry/Trade Association - 11.1%

Payroll Company - 4.6%

Other - 3.1%

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Findings: • Most respondents (82.6%) indicate that premium payment automation and

payroll processing (82%) within an insurance exchange environment is somewhat to very important

• Carrier integration (78.3%), COBRA compliance (65.3%), and health spending accounts (65.0%) were also considered to be somewhat to very important

Insights:

Results indicate that employers value a range of services—and they will expect exchange solution providers to offer functionality that simplifies and streamlines the gamut of benefits administration processes. In particular, employers are looking for solutions that help them stay on top of premium payment automation and payroll processing, but also want capabilities to address carrier integration, COBRA compliance, and health spending accounts. No individual utility listed on the survey emerged as significantly more (or less) important than the others.

15%20.2%43.1%9.5%12.3%

22.3%21.1%21.9%23.9%10.8%

20.6%22.2%22.2%25.3%9.7%

17.5%19.9%44.6%8.8%9.2%

15.4%19.8%47.4%8.1%9.3%

Please rank the employer utilities you

would value in offering health plans in

an “exchange” environment

Carrier Integration – 3.16 Avg. Rating

COBRA Compliance – 3.20 Avg. Rating

Health Spending Accounts (e.g. Health Savings /Flexible Spending) – 3.19 Avg. Rating

Payroll Processing – 3.28 Avg. Rating

Premium Payment Automation – 3.24 Avg. Rating

5 - Very Important

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1 - Not Important

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Findings: • Of those respondents who indicated they were interested in DCPs for the future,

61.1% reported they were considering for 2016 followed by 22.2% in 2017

• Only 11.1% indicated considering DCPs before the end of 2015

Insights:

While some employers adopted a DCP strategy in preparation for the ACA 2015 mandates, the majority of respondents in the study reported the potential for DCP adoption in 2016 (61.1%) and 2017 (22.2%), in order to avoid triggering 2018’s Cadillac Tax. Employers may view DCPs as a way to continue giving their employees a competitive benefits package containing healthcare insurance, and providing a DCP would also allow them to receive numerous tax benefits from offering health coverage.

2015 - 11.1%

2016 - 61.1%

2017 - 22.2%

No Timeframe - 5.6%

If considering exploring/adopting

defined contribution plans (DCPs) for

the future, when?

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Findings: • Most respondents (67.9%) are looking for plan and cost comparison tools in a benefit offering within an

insurance exchange environment

• Online access (50.4%) and progressive cost tracking tools (46.9%) are also features respondents want to see included

• The least selected feature was financial account options (22.1%)

Insights:

Results suggest that employers want to make it easy and convenient for employees to select and manage their healthcare coverage, with plan and cost comparison tools, online access, and progressive cost tracking tools leading the list of employee features they would like to see on an insurance exchange. Over two-thirds of respondents indicated plan and cost comparison tools as desirable, demonstrating their understanding that purchasing healthcare coverage from an exchange requires comparison-shopping as well as some degree of cost transparency. Employers also show that they see the value in addressing the entire enrollment and plan management process by expressing interest in other exchange features that simplify benefit administration and enhance customer service, such as a help line and mobile applications.

If you choose or could design a benefit

offering using an insurance exchange

environment, what employee features

would you include?

Plan and Cost Comparison Tools - 67.9%

Online Access - 50.4%

Progressive Cost Tracking Tools - 46.9%

Help Line - 38.5%

Combined Benefit Enrollment - 37%

Consolidated Employer Billing Services - 29.4%

Mobile Applications - 29.4%

Financial Account Options - 22.1%

Other - 3.1%

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Findings: • A large choice of plans is available at your company’s targeted benefit level

(Bronze, Silver, Gold, Platinum) was considered important to very important to 43.1% of respondents

• 40.0% of respondents indicated that the exchange that actively screens and restricts the number of plans that may participate on the exchange according to price and total was important to very important, 39.2% of respondents indicated that the exchange that allows any plan that meets the exchanges minimum standards to participate on the exchange was important to very important

• Slightly more than 20% of respondents (21.4%) indicated that the exchange being government-run was important to very important

Insights:

Most employers are still in the process of learning about the private exchange model, gaining familiarity with what features are available on an exchange. Likewise, exchange providers are still learning about their marketplace and what their potential customers are looking for in a solution. The insights gleaned from respondents to this question suggest that employers value a large choice of high-quality plans available for their employees, and that they prefer the plans meet the exchange’s minimum standards for participation. That the exchange is government-run is of less importance than the other attributes, possibly because private exchanges are an available alternative.

Please rank features in a private exchange

that are most important to you

A Large Choice of Plans is Available at Your Company’s Targeted Benefit Level (Bronze, Silver, Gold, Platinum) – 3.33 Avg. Rating

The Exchange Actively Screens and Restricts the Number of Plans That May Participate on the Exchange According to Price and Quality – 3.35 Avg. Rating

5 - Very Important

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3

2

1 - Not Important

The Exchange Allows Any Plan That Meets the Exchange’s Minimum Standards to Participate on the Exchange – 3.07 Avg. Rating

The Exchange is Government-Run (Either Federal or State) – 2.82 Avg. Rating

20.2%22.9%37.6%8.9%10.5%

15.3%24.7%47.5%4.7%7.8%

15.3%23.9%23.9%26.7%10.2%

9.5%11.9%48%11.9%18.7%

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Still Learning - 36.2%

Already Using - 29.8%

Considering - 17.4%

Not Interested - 15.5%

Other - 1.1%

Findings:• 36.2% of companies surveyed are still learning about a healthy lifestyle

incentive/program, while 29.8% are already using some type of incentive/program

• The smallest majority (15.5%) indicated they are not interested in adopting a healthy lifestyle incentive/program, but are 17.4% considering for the future

Insights:

Health and wellness programs, in their many forms, have become a popular way for companies to promote healthy behaviors among employees— and they expect to result in a more productive workforce with lower overall medical costs. Some employers experience a boost in participation when they offer a financial incentive to employees as part of their program. The survey results show over 83% employers are at least considering introducing a healthy lifestyle incentive/program, with nearly 30% already using one. As more companies report success with their programs and studies can point to consistent program ROI, the adoption rate of health and wellness programs will likely rise.

Where are you in the process of

exploring/adopting a healthy lifestyle

incentive/program?

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Findings: • Of those offering wellness programs or services, 55.2% offer an Employee

Assistance Program (EAP), and 44.8% offer flu shots or vaccinations, and 32.6% offer a smoking cessation program

• 18.4% of companies surveyed don’t offer any wellness programs or services

Insights:

Results indicate companies are currently offering a range of wellness programs/services to their employees, with employee assistant programs the most widely used. Just under one-half provide their workforce with immunizations and nearly one-third offer a tobacco cessation program. Weight-loss and fitness programs are also popular, just ahead of biometrics screenings. Almost one-quarter of companies provide employees with web-based resources for healthy living, encouraging workers to explore relevant topics and educate themselves at work or at home, whenever it’s convenient for them.

What specific wellness programs/

services do you offer employees?

Employee Assistance Program (EAP) - 55.2%

Flu Shot or Vaccinations - 44.8%

Smoking Cessation Program - 32.6%

Weight Loss Program - 29.9%

Gym Membership Discounts or On-Site Exercise Facilities - 29.5%

Biometric Screening - 24.5%

Web-Based Resources for Healthy Living- 24.1%

Not Offered - 18.4%

Other - 2.7%

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Findings: • To promote positive health outcomes, 52.5% of companies offer at least one

wellness program and 28.7% offer employees the opportunity for a health risk assessment

• Offering a disease management program was the least popular way employers chose to promote positive health with 19.5%

Insights:

Improving health outcomes is a major goal of the ACA, and over half of the companies in the survey offer a wellness program as a way to promote them. While nearly 30% do not formally promote positive health outcomes, health risk assessments, incentives/rewards, and disease management programs are each experiencing growth in the employer benefits marketplace so more employers are likely to embrace these in the years ahead as ways to help their workforce manage and improve their health.

How do you promote positive health

outcomes at your company?

Offer at Least One Wellness Program - 52.5%

Do Not Promote Any at This Time - 29.1%

Opportunity for Health Risk Assessment - 28.7%

Biometric Screening - 22.2%

Provide Incentives/Rewards for Certain Health-Related Tasks - 20.3%

Offer at Least One Disease Management Program - 19.5%

Other - 2.3%

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<50 - 17.4%

51-100 - 16.6%

101-1000 - 47.5%

1001-2500 - 5.8%

>2,501 - 12.7%

Approximately how many full-time

employees are in your company/

organization?

In which region of the United States

do you live?

South Atlantic - 16.5%

East North Central - 15.4%

Middle Atlantic - 13.2%

West North Central - 13.2%

Pacific - 13.2%

New England - 11%

East South Central - 8.8%

West South Central - 5.5%

Mountain - 3.3%

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Survey Summary/Conclusion • Healthcare reform continues to shape the attitudes and behaviors of employers

and their employees, signaled by increasing awareness and adoption of consumer-driven healthcare and the use of defined contribution plans and private health insurance exchanges

• Most companies are interested in learning about new ways to manage their employee healthcare benefit costs, streamline their benefits administration process, and maintain compliance with the ACA, making HDHPs and HSAs an attractive alternative to more traditional healthcare coverage, especially when offered as part of a defined contribution strategy

• The use of private exchanges is expected to grow in correlation with DCP use, and employers expect the exchange solutions to offer functionality that simplifies the benefits administration process while making it easy for employees to select and manage high quality healthcare coverage

• Companies are in various stages of planning for the impending “Cadillac” Excise Tax provision of the ACA

• As consumerism takes hold in the marketplace, employers and their benefit partners, from brokers and health plans to HSA custodians and payroll service providers, are working together to meet the product, service, and education needs of today’s more engaged employee

• Health and wellness programs continue to appeal to employers as ways to promote positive health outcomes alongside efficient use of healthcare spending

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About the Healthcare Trends Institute

The Healthcare Trends Institute is an educational platform to help employers, third-party administrators, health plans, brokers, banks, payroll providers, consumers, and other stakeholders keep up with the rapidly changing healthcare benefits industry. It covers a range of topics related to the administration and management of healthcare benefits. To ensure all content and programs achieve the highest level of quality and relevancy, the Institute is guided by an Editorial Advisory Board comprised of subject-matter experts that represent diverse aspects and perspectives within the healthcare benefits industry. More information is available at www.healthcaretrendsinstitute.org

Tiffany Wirth, Executive Director

Healthcare Trends Institute

4324 20th Avenue, SW, Ste. 200

Fargo, ND 58103

P 701.499.7215

E info@HealthcareTrendsInstitute.

org

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