More Employers Offer Wellness Programs to Cut Health Care Costs
INDIANAPOLIS, Aug. 18 /PRNewswire/ -- As health care costs continue to
rise, more employers are looking to Consumer Driven Health Plans and
employee wellness programs to help keep costs under control, according to
the new Health Plan Survey conducted by United Benefit Advisors (UBA).
The nation's largest and most comprehensive benchmark survey of
employer-sponsored plan design and plan costs, the 2008 UBA Health Plan
Survey, found that Consumer Driven Health Plans, or CDHPs, increased by 43
percent from last year, and now comprise nearly 13 percent of all plans
offered by employers. The percentage of employees enrolled in these plans
nearly doubled, from six percent in 2007 to 11.2 percent this year.
While preferred provider organizations (PPOs) continue to dominate the
market, representing 54 percent of plans offered by employers and nearly
two-thirds (62.7%) of employees enrolled, health maintenance organization
(HMO) participation continues to slip, and now represents just 21.3 percent
of plans offered, with only 13.3 percent of employees enrolled.
"Certainly the continued growth of CDHPs is a key headline to come out
of this year's survey," said Bill Stafford, UBA's vice president of member
services. "Fee For Service and Exclusive Provider Organizations now
virtually disappeared from the market, and HMOs are losing ground as
employers seek to help contain the rising cost of health care and insurance
premiums."
In fact, while average premiums increased by 7.4 percent for all plans
(after any plan adjustments), first-year CDHP premiums decreased by 7.9
percent. This is perhaps not surprising given that CDHPs are designed to
have lower premiums, but typically have higher deductibles and
out-of-pocket costs for common procedures. Employers offset these higher
out-of-pocket costs by offering employees a health reimbursement account
(HRA) or a health savings account (HSA) and contributing funds. In 2008,
the average employer contribution to an HRA was $1,209 for a single
employee and $2,274 for a family; the average employer contribution to an
HSA was $642 ($1,021 if employer contributions are eliminated) for a single
and $1,053 for family coverage.
Wellness Programs Another Way to Cut Costs
Recognizing that preventing illness is typically far less expensive
than treating it, employers are increasingly offering comprehensive
wellness programs to their employees. In fact, nearly one in 10 (9.8%) of
employers offer wellness programs in 2008, compared to just 7.4 percent in
2007.
Of the employers that offer wellness programs, more than three-fourths
(78.7%) include health risk assessments; more than a third (34.5%) include
seminars or workshops; another third (39.1%) include on-site coaching or
coaching by telephone for high-risk employees; and 40.2% offer biometric
screening or physical exams. Over half (51.0%) offer employees incentives
for participating in wellness programs.
"Across the board, we're seeing a trend toward employee empowerment and
participation when it comes to health care," said Stafford. "They're taking
more control over health care expenditures, by increasing participation in
CDHPs, and they are also realizing that there are financial benefits - in
addition to health benefits - of participating in wellness programs. As the
2008 presidential election approaches and health care costs and plans
continue to be a focus of national attention, we only anticipate that
employees will look even harder at their own health plans designs and
costs."
Health care coverage continues to be a significant cost to both
employees and employers. The survey found that the average annual health
plan cost per employee is $7,327 (medical coverage only), with employees
paying $3,210 and employers footing the bill for the remaining $4,117.
Average monthly premiums for all plans were $370 for single coverage and
$901 for family.
As health care plan offerings become more complex, Stafford points out
that benchmarking data like the annual UBA Health Plan Survey has become
increasingly critical. "The intent of the survey is to provide employers of
all sizes with the data they need to manage their health care benefit
programs effectively," said Stafford. "Especially for employers with fewer
than 1,000 employees and employers who have operations in multiple
locations, this survey is the only source of reliable, regional - and in
many cases state - health plan benchmarks by employer size and industry
categories." The 2008 UBA Health Plan Survey will be available to the
public after November 1. Only UBA Member Firms have access to the more
granular State, Region, and Industry data. Stafford also stated that the
analysis of the 2008 UBA Health Plan Survey data will continue over the
next several months and additional findings will be forthcoming. UBA has
member firms in virtually every major U.S. market. To locate one and learn
more about the 2008 UBA Health Plan Survey, visit http://www.benefits.com .
About the Survey
With responses from 18,019 health plans sponsored by 12,860 employers
nationwide who employ more than 1.9 million people and insure approximately
4.4 million people, the 2008 UBA Health Plan Survey is the nation's largest
and most comprehensive survey of plan design and plan costs. With nearly 10
percent more respondents than the 2007 survey, this year's survey
represents another record level of employer participation. As the largest
survey of its kind, the UBA Health Plan Survey defines benchmarks by a
greater number of specific industries, regions, and employer size
categories than is available from any other resource.
About United Benefit Advisors
United Benefit Advisors, one of the nation's largest employee benefit
advisory organizations, has more than 1,900 experienced benefits
professionals in 165 offices throughout the U.S. and Canada. An alliance of
nearly 140 of the nation's premier independent benefit advisory firms, UBA
members are able to help employers and their employees respond efficiently
and effectively to the challenges of an ever-changing employee benefit
marketplace. UBA members provide employee benefits consulting, brokerage
services, and best-in-class products to more than 37,000 private
corporations and public employers across the U.S. and internationally. As
trusted advisors, UBA members help their clients manage approximately $16.5
billion annually in employee benefit expenditures on behalf of nearly 5.4
million employees and their families. In addition to the 2008 UBA Health
Plan Survey, UBA also conducts annually one of two Employer Opinion
Surveys, designed to monitor prevailing trends associated with employee
benefit programs. For more information, visit http://www.benefits.com .
|
