SHRM/EBRI 2014 Health Benefits Survey
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Transcript of SHRM/EBRI 2014 Health Benefits Survey
SHRM Survey Findings: SHRM/EBRI 2014
Health Benefits Survey
November 19, 2014
SHRM/EBRI Health Benefits Survey ©SHRM 2014 2
Key Findings
• Very few organizations expect to eliminate health care coverage in 2015. Only 1% of
organizations reported expecting to eliminate health care coverage in 2015. No government
agencies reported expecting to eliminate coverage.
• Large organizations are more likely to expect to make changes to their health plans in 2015
than small organizations. Large organizations (750 or more FTEs) were more likely to report that
they expect to make changes to their health plans in a variety of ways. In addition, small
organizations (fewer than 750 FTEs) were not significantly more likely to report they expect to make
any changes than larger organizations.
• Large organizations expect to hit the excise tax in 2018. Large organizations are more likely than
small organizations to expect to hit the excise tax in 2018. This could account for significantly more
larger organizations expecting to make changes to their health plans in 2015 to avoid the excise tax.
• PPO plans are the most common plan that is expected to hit the excise tax in 2018. Nearly
75% of organizations expect their PPO plans to hit the excise tax, more than all other plans
combined.
• Organizations do not know what they are going to do to avoid the excise tax. Nearly 30% of
organizations do not know what they will do to avoid the excise tax in 2018.
• Despite employers’ continued uncertainty surrounding health care reform and its related costs, most
organizations are not considering eliminating coverage for their employees at this time. Only 1% of
HR professionals who responded to this survey said their organization would eliminate coverage in
2015.
• Other research has shown that health care benefits are an extremely valuable recruiting tool, and
HR professionals often cite these benefits when hiring new workers or retaining existing employees.
Given the competitive nature of finding top talent at the moment, health care benefits should be
viewed as an important element of staffing management.
• Many HR professionals are already looking ahead to 2018, when an employer tax on high-cost
health plans will go into effect. This excise tax of 40% will apply to certain individual and family
thresholds on health plans and will prompt HR professionals to re-examine their health care
offerings as a means of cutting costs. Although many of the respondents to this survey (30%) said
they still don’t know what actions they would take to avoid the excise tax, very few (3.5%) said they
would eliminate health care coverage as a result.
SHRM/EBRI Health Benefits Survey ©SHRM 2014 3
What Do These Findings Mean for the HR
Profession?
SHRM/EBRI Health Benefits Survey ©SHRM 2014 4
SHRM/EBRI 2014 Health Benefits Survey
Do You Plan to Make Any of the Following
Changes to Your Health Care Plans in 2015?
SHRM/EBRI Health Benefits Survey ©SHRM 2014 5
Note: n = 2,295
0.6%
1.0%
1.3%
2.6%
2.6%
3.2%
3.6%
6.7%
7.9%
26.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Adopt reference pricing
Eliminate coverage
Eliminate coverage for part-time workers
Provide an employee subsidy for coverage on theprivate exchange
Adopt a value-based insurance design
Move to private exchange
Create tiered networks
Institute spousal surcharge
Require spouses to get coverage through ownemployer
Add wellness rewards or penalties
Do You Plan to Make Any of the Following Changes to
Your Health Care Plans in 2015? (by staff size)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 6
Note: n = 2,271
3.2%
3.6%
6.7%
7.9%
26.3%
3.1%
3.2%
5.9%
7.7%
24.1%
3.8%
5.5%
10.1%
9.4%
34.6%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Move to private exchange
Create tiered networks
Institute spousal surcharge
Require spouses to get coverage through ownemployer
Add wellness rewards or penalties
750 or more FTEs Fewer than 750 FTEs Total
Do You Plan to Make Any of the Following Changes to
Your Health Care Plans in 2015? (by staff size,
continued)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 7
Note: n = 2,135
0.6%
1.0%
1.3%
2.6%
2.6%
0.5%
1.1%
1.0%
2.7%
1.7%
1.4%
1.0%
2.4%
2.4%
5.8%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
Adopt reference pricing
Eliminate coverage
Eliminate coverage for part-time workers
Provide an employee subsidy for coverage on theprivate exchange
Adopt a value-based insurance design
750 or more FTEs Fewer than 750 FTEs Total
Do You Plan to Make Any of The Following
Changes to Your Health Care Plans in 2015? (by
staff size)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 8
Note: Only statistically significant differences are shown.
Comparisons by organization staff size
750 or more FTEs > Fewer than 750 FTEs
Comparisons by organization staff size
• Organizations with 750 or more FTEs are more likely than organizations with fewer than 750 FTEs to make the
following changes to health care plans in 2015:
• Institute spousal surcharge.
• Eliminate coverage for part-time workers.
• Adopt a value-based insurance design (VBID).
• Adopt reference pricing.
• Create tiered networks.
• Add wellness rewards or penalties.
SHRM/EBRI Health Benefits Survey ©SHRM 2014 9
U.S. Census Bureau Regions
Do You Plan to Make Any of the Following Changes
to Your Health Care Plans in 2015? (by region)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 10
Note: n = 2,264
3.2%
3.6%
6.7%
7.9%
26.3%
3.9%
5.1%
7.3%
7.8%
28.7%
4.2%
3.7%
6.8%
8.0%
27.9%
2.6%
2.4%
8.1%
10.9%
25.9%
1.6%
4.0%
4.4%
3.3%
20.7%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Move to private exchange
Create tiered networks
Institute spousal surcharge
Require spouses to get coverage through ownemployer
Add wellness rewards or penalties
West Midwest South Northeast Total
Do You Plan to Make Any of the Following Changes to
Your Health Care Plans in 2015? (by region,
continued)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 11
Note: n = 2,279
0.6%
1.0%
1.3%
2.6%
2.6%
0.5%
1.0%
0.7%
5.1%
3.6%
0.7%
1.0%
0.9%
1.8%
3.0%
0.5%
1.6%
1.5%
2.8%
2.6%
0.7%
0.2%
2.1%
1.2%
1.2%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Adopt reference pricing
Eliminate coverage
Eliminate coverage for part-time workers
Provide an employee subsidy for coverage on theprivate exchange
Adopt a value-based insurance design
West Midwest South Northeast Total
Do You Plan to Make Any of the Following
Changes to Your Health Care Plans in 2015?
(by region)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 12
Note: Only statistically significant differences are shown.
Comparisons by region
South
Midwest> West
Comparisons by region
• Organizations in the South and Midwest are more likely than organizations in the West to require spouses to get
health care coverage through their own employer.
• Organizations in the Northeast are more likely than organizations in the South and West to provide an employee
subsidy for coverage on the private exchange.
Comparisons by organization staff size
Northeast >South
West
Do You Plan to Make Any of the Following
Changes to Your Health Care Plans in 2015?
(by region)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 13
Note: Only statistically significant differences are shown.
Comparisons by region
South > West
Comparisons by region
• Organizations in the South are more likely than organizations in the West to add wellness rewards or penalties.
Do You Plan to Make Any of the Following Changes to
Your Health Care Plans in 2015? (by sector)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 14
Note: n = 2,279
3.2%
3.6%
6.7%
7.9%
26.3%
2.8%
2.5%
6.9%
6.3%
27.0%
3.7%
3.5%
6.4%
8.2%
25.3%
2.7%
4.4%
6.7%
8.9%
27.5%
1.6%
3.8%
7.7%
4.9%
27.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Move to private exchange
Create tiered networks
Institute spousal surcharge
Require spouses to get coverage through ownemployer
Add wellness rewards or penalties
Government Nonprofit Privately owned for-profit Publicly owned for-profit Total
Do You Plan to Make Any of The Following Changes to
Your Health Care Plans in 2015? (by sector, continued)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 15
Note: n = 2,279
0.6%
1.0%
1.3%
2.6%
2.6%
0.6%
0.9%
1.3%
0.9%
3.8%
0.6%
1.2%
1.2%
3.1%
2.4%
0.4%
1.1%
1.4%
2.5%
2.5%
1.6%
0.0%
0.5%
1.6%
2.7%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
Adopt reference pricing
Eliminate coverage
Eliminate coverage for part-time workers
Provide an employee subsidy for coverage on theprivate exchange
Adopt a value-based insurance design
Government Nonprofit Privately owned for-profit Publicly owned for-profit Total
Do You Plan to Make Any of The Following Changes to
Your Health Care Plans in 2015? (by business activity)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 16
Note: n = 2,264
3.2%
3.6%
6.7%
7.9%
26.3%
2.7%
3.2%
5.9%
6.9%
19.7%
2.8%
2.8%
8.7%
9.0%
29.2%
3.3%
4.0%
6.1%
7.6%
26.1%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Move to private exchange
Create tiered networks
Institute spousal surcharge
Require spouses to get coverage through ownemployer
Add wellness rewards or penalties
Services Manufacturing Consulting Total
Do You Plan to Make Any of the Following Changes to
Your Health Care Plans in 2015? (by business activity,
continued)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 17
Note: n = 2,264
0.6%
1.0%
1.3%
2.6%
2.6%
0.5%
2.1%
1.6%
4.3%
2.1%
1.0%
1.0%
1.0%
2.6%
2.5%
0.4%
0.8%
1.4%
2.3%
2.8%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%
Adopt reference pricing
Eliminate coverage
Eliminate coverage for part-time workers
Provide an employee subsidy for coverage on theprivate exchange
Adopt a value-based insurance design
Services Manufacturing Consulting Total
Do You Plan to Make Any of the Following Changes to
Your Health Care Plans in 2015? (by business activity)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 18
Note: Only statistically significant differences are shown.
Comparison by business activity
Manufacturing > Consulting
Comparison by business activity
• Manufacturing organizations are more likely than consulting organizations to add wellness rewards or penalties.
Do You Expect Your Organization to Hit the Excise
Tax in 2018?
SHRM/EBRI Health Benefits Survey ©SHRM 2014 19
Note: n = 1,803
85%
15%
No Yes
Do You Expect Your Organization to Hit the
Excise Tax in 2018? (by staff size)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 20
Note: n = 1,713
15.0%
13.2%
23.9%
85.0%
86.8%
76.1%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
Total
Fewer than 750 FTEs
750 or more FTEs
Yes No
Do You Expect Your Organization to Hit the Excise
Tax in 2018? (by staff size)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 21
Note: Only statistically significant differences are shown.
Comparison by organization staff size
750 or more FTEs > Fewer than 750 FTEs
Comparison by organization staff size
• Organizations with 750 or more FTEs are more likely than organizations with fewer than 750 FTEs to expect to hit
the excise tax in 2018.
Do You Expect Your Organization to Hit the Excise
Tax in 2018? (by region)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 22
Note: n = 1,791
15.0%
18.8%
13.9%
13.7%
14.5%
85.0%
81.2%
86.1%
86.3%
85.5%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
Total
Northeast
South
Midwest
West
Yes No
Do You Expect Your Organization to Hit the Excise
Tax in 2018? (by sector)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 23
Note: n = 1,791
15.0%
18.7%
12.9%
13.1%
27.5%
85.0%
81.3%
87.1%
86.9%
72.5%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
Total
Publicly owned for-profit
Privately owned for-profit
Nonprofit
Government
Yes No
Do You Expect Your Organization to Hit the Excise
Tax in 2018? (by sector)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 24
Note: Only statistically significant differences are shown.
Comparison by sector
Government >Privately owned for-profit
Nonprofit
Comparison by sector
• Government agencies are more likely than privately owned for-profit or nonprofit organizations to expect to hit the
excise tax in 2018.
Do You Expect Your Organization to Hit the
Excise Tax in 2018? (by business activity)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 25
Note: n = 1,776
15.0%
10.4%
14.2%
15.7%
85.0%
89.6%
85.8%
84.3%
0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%
Total
Consulting
Manufacturing
Services
Yes No
Which Plan(s) Do You Expect to Hit the Excise
Tax?
SHRM/EBRI Health Benefits Survey ©SHRM 2014 26
Note: n = 249
1.6%
1.2%
4.8%
7.6%
17.3%
18.5%
74.3%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Other
Indemnity (fee for service)
Exclusive provider organization (EPO)
Consumer-driven health plan
Point of service (POS)
Health maintenance organization (HMO)
Preferred provider organization (PPO)
Which Plan(s) Do You Expect to Hit the Excise
Tax? (by staff size)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 27
Note: n = 239
1.6%
1.2%
4.8%
7.6%
17.3%
18.5%
74.3%
1.8%
1.2%
3.6%
7.7%
19.5%
19.5%
72.2%
1.4%
1.4%
7.1%
7.1%
11.4%
17.1%
80.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Other
Indemnity (fee for service)
Exclusive provider organization (EPO)
Consumer-driven health plan
Point of service (POS)
Health maintenance organization (HMO)
Preferred provider organization (PPO)
750 or more FTEs Fewer than 750 FTEs Total
Which Plan(s) Do You Expect to Hit the Excise
Tax? (by region)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 28
Note: n = 246
1.6%
1.2%
4.8%
7.6%
17.3%
18.5%
74.3%
5.6%
1.9%
11.1%
3.7%
31.5%
18.5%
63.0%
1.2%
2.3%
2.3%
11.6%
17.4%
15.1%
73.3%
0.0%
0.0%
3.2%
9.5%
11.1%
11.1%
81.0%
0.0%
0.0%
4.7%
0.0%
9.3%
34.9%
83.7%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Other
Indemnity (fee for service)
Exclusive provider organization (EPO)
Consumer-driven health plan
Point of service (POS)
Health maintenance organization (HMO)
Preferred provider organization (PPO)
West Midwest South Northeast Total
Which Plan(s) Do You Expect to Hit the Excise
Tax? (by region)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 29
Note: Only statistically significant differences are shown.
Comparisons by region
West >South
Midwest
Comparisons by region
• Organizations in the West are more likely than organizations in the South or Midwest to expect HMO plans to hit the
excise tax.
• Organizations in the Northeast are more likely than organizations in the Midwest and West to expect POS plans to
hit the excise tax.
Comparisons by organization staff size
Northeast >Midwest
West
Which Plan(s) Do You Expect to Hit the Excise
Tax? (by sector)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 30
Note: n = 246
1.6%
1.2%
4.8%
7.6%
17.3%
18.5%
74.3%
2.8%
2.8%
2.8%
13.9%
8.3%
5.6%
80.6%
0.9%
0.9%
7.8%
7.0%
18.3%
15.7%
75.7%
1.8%
3.6%
5.4%
23.2%
21.4%
67.9%
5.1%
5.1%
15.4%
35.9%
74.4%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Other
Indemnity (fee for service)
Exclusive provider organization (EPO)
Consumer-driven health plan
Point of service (POS)
Health maintenance organization (HMO)
Preferred provider organization (PPO)
Government Nonprofit Privately owned for-profit Publicly owned for-profit Total
Which Plan(s) Do You Expect to Hit the Excise
Tax? (by sector)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 31
Note: Only statistically significant differences are shown.
Comparison by sector
Government >Privately owned for-profit
Publicly owned for-profit
Comparison by sector
• Government agencies are more likely than privately owned for-profit or publicly owned for-profit organizations to
expect HMO plans to hit the excise tax.
Which Plan(s) Do You Expect to Hit the Excise
Tax? (by business activity)
SHRM/EBRI Health Benefits Survey ©SHRM 2014 32
Note: n = 244
1.6%
1.2%
4.8%
7.6%
17.3%
18.5%
74.3%
13%
20%
67%
2%
7%
12%
15%
18%
73%
2%
1%
5%
5%
18%
21%
75%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Other
Indemnity (fee for service)
Exclusive provider organization (EPO)
Consumer-driven health plan
Point of service (POS)
Health maintenance organization (HMO)
Preferred provider organization (PPO)
Services Manufacturing Consulting Total
What Actions, if Any, Will You Take to Avoid the
Excise Tax?
SHRM/EBRI Health Benefits Survey ©SHRM 2014 33
Note: n = 170
29.4%
16.5%
10.6%9.4%
4.7% 4.7%3.5% 3.5%
2.4%
15.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
SHRM/EBRI Health Benefits Survey ©SHRM 2014 34
Demographics
Demographics: Organization Industry
35Note: n = 3,329. Total number of respondents and percentage for this question exceeded the overall sample size due to multiple response options.
Percentage
Services—professional, scientific, technical 20%
Health care, social assistance 17%
Manufacturing (durable goods) 14%
High-tech 13%
Consulting 12%
Business support services 11%
Finance 10%
Manufacturing (nondurable goods) 9%
Retail/wholesale trade 8%
Government/public administration—state/local 8%
Educational services 7%
Publishing, broadcasting, other media 6%
Religious, grant-making, civic, professional and similar organizations 6%
Transportation, warehousing 6%
SHRM/EBRI Health Benefits Survey ©SHRM 2014
Demographics: Organization Industry (continued)
36
Note: n = 3,329. Total number of respondents and percentage for this question exceeded the overall sample size due to multiple response options.
Percentage
Construction, mining, oil and gas 4%
Insurance 4%
Services—accommodation, food and drinking places 4%
Arts, entertainment, recreation 3%
Utilities 3%
Telecommunications 3%
Real estate, rental, leasing 3%
Repair and maintenance 3%
Association—professional/trade 1%
Biotech 1%
Pharmaceutical 1%
Waste management and remediation services 1%
Government/public administration—federal 1%
SHRM/EBRI Health Benefits Survey ©SHRM 2014
Demographics: Organization Sector
SHRM/EBRI Health Benefits Survey ©SHRM 2014 37
Note: n = 3,302. Percentages do not equal 100% due to rounding.
53%
23%
16%
9%
Privately owned for profit
Nonprofit
Publicly owned for-profit
Government
Demographics: Organization Staff Size
SHRM/EBRI Health Benefits Survey ©SHRM 2014 38
Note: n = 3,031. Percentages do not equal 100% due to rounding.
37%
38%
17%
8%
1%
1 to 99 employees
100 to 499 employees
500 to 2,499 employees
2,500 to 24,999
25,000 or more employees
Demographics: Region
SHRM/EBRI Health Benefits Survey ©SHRM 2014 39
Note: n = 3,289.
38%
26%
18%
18%
South
Midwest
West
Northeast
Demographics: Business Activity
SHRM/EBRI Health Benefits Survey ©SHRM 2014 40
Note: n = 3,277.
65%
26%
9%
Services
Manufacturing
Consulting
Demographics: Organizational Level
SHRM/EBRI Health Benefits Survey ©SHRM 2014 41
Note: n = 3,190.
76%, Corporate (companywide)
24%, Business unit/work location
42
Survey Methodology
• Response rate = 14%
• 3,329 HR professionals from a randomly selected sample of SHRM’s membership
• Margin of error +/- 5%
• Survey fielded February 4 to April 7, 2014
SHRM/EBRI Health Benefits Survey ©SHRM 2014
For more survey/poll findings, visit shrm.org/surveys
For more information about SHRM’s Customized Research Services,
visit shrm.org/customizedresearch
Follow us on Twitter @SHRM_Research
43
About SHRM Research
Project leader:
Andrew Mariotti, senior researcher, SHRM Research
Project contributors:
Steven Hyde, research coordinator, SHRM Research
Joseph Coombs, senior analyst, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
SHRM/EBRI Health Benefits Survey ©SHRM 2014
SHRM
Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.
EBRI
The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in Washington, DC, that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby and does not take policy positions. The work of EBRI is made possible by funding from its members and sponsors, which include a broad range of public, private, for-profit and nonprofit organizations. For more information go to www.ebri.org or www.asec.org
SHRM/EBRI Health Benefits Survey ©SHRM 2014 44
About SHRM and EBRI