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
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 www.benefits.com .
SOURCE United Benefit Advisors