Employer health care costs for active employees are projected to rise 8.2% in 2011, to an average annual cost of $10,730, according to a recent survey of 466 large and midsize employers conducted last month by Towers Watson.
Among survey respondents, 59% plan to implement significant or moderate health care plan design changes in 2011, and 67% plan to do so in 2012.
While more than half (57%) report that compliance with PPACA is their top priority today, 43% plan to rethink the long-term benefit strategy for active employees as their primary focus next year.
"In light of the complexities around all of the regulatory guidelines and mandates, most employers are taking the time to understand the new legal environment before making too many long-term changes to their health benefit strategy," says Randall Abbott, a senior health care consultant with Towers Watson.
"Nonetheless, the earlier employers consider the strategic ramifications of the law and can act, the better they can assess their future role as health care benefit sponsors, and understand the implications on their business and employees," he adds.
Many employers today, however, are not staying the course. Survey respondents are looking to:
- Accelerate account-based health plan adoption: By 2012, 64% of employers are projected to offer an ABHP, and 39% of employers are projected to have ABHP enrollment of more than 20%.
- Raise employee contributions: Employees must continue to cope with the increasing affordability gap — merit pay increases have gone up 16% while employee contributions have risen 49% over the last five years.
- Shift from incentives for employee participation in wellness programs to incentives for improvements in health metrics: 62% of employers are projected to apply outcome-based incentives by 2012.
According to the survey, 86% of U.S. employers plan to increase efforts to encourage employees to engage in wellness/health promotion programs, with 65% already or planning to increase incentives for these programs and another 17% considering this action for 2012.
Among specific health promotion programs, employers plan to increase efforts to encourage employees to engage in behavioral health programs (78%), biometric screenings (74%), health risk assessments (71%) and disease management programs (67%).
In addition, the survey found that employers expect to:
- continue offering employer-sponsored health care plans for active employees (94%)
- lose their plan’s grandfathered status by 2011 (55%) or by 2013 (85%)
- increase efforts to encourage employees outside the U.S. to engage in their wellness/health promotion programs (54%)
- examine new engagement strategies, such as using social networks and other channels to communicate about employee health and well-being (40%)
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10 Comment(s)
Posted by: PatCoghlan | May 21, 2012 2:05 PM
Health care is extremely important because people get sick. Rising costs could mean less people having access to it Employees are consumers as well, protected by laws and any violation may be challenged by laws.
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Posted by: darrensy | April 23, 2012 1:50 AM
This for sure a big burdens for most consumers and patient. But, it can be also beneficial to every individual once this is implemented with good alternatives.
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Posted by: Rishi r | April 20, 2012 4:20 AM
The employers have to understand that they should not implement any change that could affect their employees. You definitely want your employees to be in good health. Mostly we mix up these ideas. To achieve total fitness you have to be aware of the health issues. You could try out sites that deal with health or fitness like www.bodybysylvia.com.
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Posted by: Prabir B | April 18, 2012 1:05 AM
Health care costs should be less. Overall there is good improvements in health care facilities. People are now more aware about issues like fitness and health. Eat healthy to stay fit. For special needs there are health supplements and drinks available like protein shakes.
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Posted by: amitava s | April 6, 2012 4:48 AM
It could cause problems for employers and employees. Health care is our one of the basic requirements. Now we have access to better health care facilities. In terms of employment opportunities too there are new opportunities emerging. High end courses like online masters in public health could help you get a good job.
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Posted by: Rishi r | April 3, 2012 6:01 AM
This is going to have an impact on the health care benefits. May be steps should be taken to lower the costs. Health care facilities are now available in good numbers. There is a demand for professionals in this field. So to keep up with the demand new courses are getting designed like health care mba.
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Posted by: keyra_hunt | March 20, 2012 3:13 PM
With our Logistics course at the mba health administration degree I am taking, I can tell you have seen with my own eyes, in numbers and projects how these changes really look like and the impact they would have in education. It`s one thing to talk about the employees being fully covered on their health expenses and a whole other story to see how they respond to incentives into investing more in their wellness. See what I mean here?
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Posted by: Rishi r | March 15, 2012 6:34 AM
Employees would face problems if the costs rise. Having access to health care facilities is everyone's right. So they should receive certain health acre benefits, policies. You have to aware of your rights as an employee as a consumer. Any kind of violation of right could be challenged by law such as what happened in depuy hip replacement issue.
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Posted by: markgoss | December 8, 2011 9:17 AM
With the rise in health care costs, I think that it will be rare to see employees offering their employees "extras" in their wellness plans. Short term medical insurance, gym memberships, etc... will no longer be the expected wellness benefits from employees. I would love to see companies continue to try to offer what they can afford. It is in the best interest of the companies to keep their employees healthy.
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Posted by: LILIUM | November 24, 2011 3:55 AM
This "government-knows-best" approach to the health care reforms raises quite a controversial issue in my mind. What I am trying to say is that I don`t doubt that the government can come up with the best solutions for the population as far as the health care system is concerned. I just see too much of a conundrum and debates in the middle delaying the actual measures reinforcement. Meanwhile, people start trusting drug rehabilitation Los Angeles centers and many other private medical and care giving institutions.
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