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See how oer 12,000 other businesses across the U.S. areusng Wellness & Consumer Driven Health Plans as an effective business strategy. How does your company compare?
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Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Data That Makes Senseand Making Sense of the Data
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
2009 UBA Health Plan Survey Initiative
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
About United Benefit Advisors
140 Member Firms
Over 165 Offices nationally
1,800 Benefits Professionals
One of the Five Largest Employee Benefits Organizations in the Country
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
About United Benefit Advisors
Serving –
– nearly 40,000 Client Companies
– over 5.5 Million Employees & their families
– ~$16.5 Billion in Employee Benefits Expenditures
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Why We’re Here
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
Top decision-maker’s concern about the cost of health care benefits with respect to:
46.3% 47.8%
5.6%0.3% 0.1%
36.6%
53.0%
9.5%
0.8% 0.1%
Corporate Costs Impact on EmployeesCritical Concern Significant Concern Some Concern Little Concern No Concern
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Increases in Health Insurance Premiums Compared to Other Indicators 1988-2008
9.27.7
6.17.3
11.2
13.912.910.9
8.25.3
0.8
8.5
18.0
12.014.0
0.02.04.06.08.0
10.012.014.016.018.020.0
1988
1989
1990
1993
1996
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Health Insurance Premiums Overall Inflation Workers' Earnings
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits: 1999-2007; KPMG Survey of Employer-Sponsored Health Benefits: 1993, 1996; The Health Insurance Association of America (HIAA): 1988, 1989, 1990; Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1988-2007; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey (April to April), 1988-2007.
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Health Care CostsPer Employee Per Year1969 $242
1979 $623
1995 $3,821
2009 $7,646 $0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
1969 1979 1995 2009
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
2009 Health Care Trend –Med + RX
Source: United Benefit Advisors – Composite of Published Trends
Type of Plan 2009 Trend Preferred Provider Organization 11.1 % Health Maintenance Organization 10.0 % Point-of-Service Plan 10.5 % Consumer Driven Health Plan 10.6 % Indemnity Plan 12.2 % Prescription Drugs 9.8 %
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
The Effects of Inflation on Medical Premiums @ 8% / 13%
Year Single Family Single Family
2008 $4,440 $10,812 $4,440 $10,812
2011 $5,593 $13,620 $6,406 $15,601
2014 $7,046 $17,157 $9,244 $22,510
2017 $8,876 $21,613 $13,338 $32,480
2020 $11,181 $27,226 $19,245 $46,865
8.00% Per Year 13.00% Per Year
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
2009 Health Plan Survey
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Survey Summary
# of Companies Participating
– 12,316
# of Medical Plans Reported
– 17,655
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Survey Summary
# of states represented
– 50 (and D.C.)
# of cities represented
– ~ 3,300
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Survey Summary
# of Employees
– 1.9 Million
# of Total Lives
– ~ 4.5 Million
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Key Survey Findings
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Wellness Programs
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 17
Percent Offering Wellness by Employee Size
4.0%5.4%
9.0%
14.7%
28.9%
32.2%
52.5%
0%
10%
20%
30%
40%
50%
60%
3 - 24 25 - 49 50 - 99 100 - 199 200 - 499 500 - 999 1000 +
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Summary - Wellness
Wellness programs are underutilized in companies <500
Wellness Plans from 2008 to 2009 grew from 9.8% to 11.1%; a 13.3% increase.
Over ¾ (78.4%) of firms with Wellness plans use Health Risk Assessments
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Summary - Wellness
Over half (56.9%) of Wellness plans use Incentives:
– 30.9% use Cash / 401(k) / FSA incentives
– 56.9% use gift cards or health club memberships
2008 UBA ER Opinion Survey result: 49.6% said Wellness was Effective / Very Effective way to control rising costs
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
20
Consumer Driven Health Care
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 21
Prevalence of Plan Type by Region (CDHP)
23.0%
18.8%20.1%
12.4%
10.8%
0%
5%
10%
15%
20%
25%
Northeast Southeast North Central Central West
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 22
% of Employers Offering CDHP by Employee Size
16.8%
19.7% 19.1%
15.6%
13.6%
11.2%
14.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
3 - 24 25 - 49 50 - 99 100 - 199 200 - 499 500 - 999 1000 +
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
CDHC Plan Designs
Median CDHP Deductible = $2,000 / $4,000
Median CDHP Coinsurance = 100% / 70%
Median CDHP OOP Max. = $6,000 / $12,000
Median CDHP Office Visit CoPay = $20
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Consumer Driven Health Plans
High Deductible Health Plans with an HRA or HSA, are 17.0% (a 33.9% increase over the 12.6 % last year), with 15.4% of all employees now enrolled in CDHPs
Over ½ (53.8%) of CDHPs are from companies with fewer than 100 employees, with the over 1000 employee groups accounting for 6.2% of the CDHPs
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
HRAs And HSAs
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Summary - CDHP
34.9% of CDHP Plans offer HRAs
68.7% offer 1st Dollar Preventative benefits
Median Employer HRA Single contribution: $1,000
65.9% of CDHPs offer HSAs
87.6% of HSA plans offer 1st Dollar Preventative
Median Employer HSA Single contribution is $417
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Employer Contributions
Average HRA contributions:
– $1,310 single
– $2,502 family
Average HSA contributions:
– $621 single
– $976 family
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
CONSUMER DRIVEN HEALTH CARE
HRAs or HSAs coupled with High Deductible Health Plans (HDHPs) are effective vehicles to:
60.9%17.8%
15.3%
16.8%
18.6%
24.5%
21.3%
78.2%
69.7%
64.7%
62.0%
6.5%
13.5%
16.6%
13.6%
Increase employee sensitivity toreal cost of health care
Provide a financial incentive forEEs to manage their health
Shift more cost to employees
Lower health care costs,including premium costs
Expand options for employees
Strongly Agree / Agree Disagree / Strongly Disagree Don't Know
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
CONSUMER DRIVEN HEALTH CARE
HRAs or HSAs coupled with High Deductible Health Plans (HDHPs) are problematic because:
18.2%
24.1%
21.2%
24.0%
50.1%
54.6%
59.1%
66.7%
25.9%
24.2%
16.8%
15.2%The need to increase healtheducation for employees
The plan design complexity for ouremployee population
EEs have limited time or interest indirectly managing their health
Increased HR workload
Strongly Agree / Agree Disagree / Strongly Disagree Don't Know
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Comparisons of Enrollment by Plan Type By Region
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
5-Region Map
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 32
% of Employees Enrolled by Plan Type by Region (CDHP)
14.5%
19.8%
23.0%
11.1%
4.2%
0%
5%
10%
15%
20%
25%
Northeast Southeast North Central Central West
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Differences by Industry Category Many Prevention & Wellness Programs
– Health Care & Social Assistance
– Public Admin; Education; Utilities
– Finance, Insurance & Real Estate
Few Prevention & Wellness Programs
– Professional, Scientific, & Technical Services
– Information, Entertainment, Food & Accomm.
– Construction; Ag & Forestry; Mining; Transport
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Health Plan Management
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
Which specific strategies or programs do you currently have in place or planned for next year?
18.5%
34.8%
49.2%
12.6%
18.9%
19.8%
14.5%
11.8%
8.5%
In Place Now Likely Next Year Would Like Someday
Increase deductibles, coinsurance, and/or out-of-
pocket maximums
Increase office visit / immediate care / ER copay
Add higher Specialty Care Physician (SCP) copay
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
Which specific strategies or programs do you currently have in place or planned for next year?
11.9%
18.1%
3.9%
10.5%
5.4%
6.8%
2.0%
3.4%
17.3%
21.3%
7.2%
14.7%
In Place Now Likely Next Year Would Like Someday
Implement a High Deductible Health Plan with an HRA
Implement a High Deductible Health Plan with an HSA
Implement a High Deductible Health Plan with no HRA or HSA
Implement a HDHP with an employer-funded medical
reimbursement plan
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
Which health plan cost-control strategies/programs do you currently have in place or planned for next year?
15.9%
20.4%
33.9%
30.7%
7.3%
13.5%
3.0%
27.5%
36.0%
38.6%
25.6%
12.6%
In Place Now Likely Next Year Would Like Someday
Implement 24-Hour Nurse Hotline or Patient Advocate
Service
Implement a chronic disease management program
Implement a wellness program with health risk assessments
Increase employee share of premiums
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
Health Plan Management
4.4%
7.7%
16.3%
7.4%
5.4%
5.4%
2.6%
2.7%
46.2%
26.8%
26.3%
31.9%
In Place Now Likely Next Year Would Like Someday
Implement different smoker vs. non-smoker premiums
Increase premiums or eliminate coverage for spouses eligible or
covered under another plan
Provide an opt-out bonus for employees or spouses waiving
coverage
Which health plan cost-control strategies/programs do you currently have in place or planned for next year?
Implement tiered network plan
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Effectiveness of Plan Management Strategies
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
Rate the effectiveness for these cost-containment strategies (whether you have such a program or not):
14.2%
11.2%
26.0%
12.4%
40.2%
41.4%
44.5%
49.6%
47.5%
32.7%
44.4%
36.2%
Very Effective / Effective Limited / None Don't Know
Chronic disease management programs
Wellness/prevention programs
Higher deductibles and/or reduced benefits
Increased employee premium cost-sharing
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
35.5%
39.4%
61.4%
15.2%
30.5%
32.8%
23.4%
30.1%
31.7%Consumer drivenhealth plans
Tiered networkprograms
Coalitionpurchasingprograms
Very Effective / Effective Limited / None Don't Know
Rate the effectiveness for these cost-containment strategies (whether you have such a program or not):
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Employer Predictions
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
What do you predict will happen to health plans in the next 5 years?
56.8%
51.0%
86.8%
12.9%
12.1%
3.8%Costs will shift more to
employees
Consumer Driven Health Careplans will dominate
A move to Individual coverageand HSAs
Strongly Agree / Agree Disagree / Strongly Disagree
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
What do you predict will happen to health plans in the next 5 years?
33.6%
38.1%
47.4%
22.0%
29.3%
20.3%
All cost and quality data will bedirectly accessible to employees
in advance of purchasing care
A return to more tightlycontrolled managed care plans
Smaller provider networks basedon quality and efficiency
Strongly Agree / Agree Disagree / Strongly Disagree
Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
What do you predict will happen to health plans in the next 5 years?
7.5%
25.9%
37.2%
62.1%
40.0%
21.3%Employers will move to a
compensation-only approach
No significant changes fromcurrent structure
The U. S. will switch to aCanadian-style, tax-based system
Strongly Agree / Agree Disagree / Strongly Disagree
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Shared Wisdom…Powerful Results Talk with us after the seminar
– Representatives of Hierl Insurance Inc will be available for further discussion (920) 993-9573
Call us for more detailed, company-specific benchmarks and analysis
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
Shared Wisdom. Powerful Results.
UBA is an alliance of the nation’s premier independent benefit advisory firms. By working collaboratively, UBA members are better positioned to help employers and employees respond more efficiently and effectively to the challenges of an ever-changing employee benefits marketplace. By combining diverse talents, seasoned experience, innovative technologies, and strategic partnerships, UBA Members offer employers exceptional employee benefits advisory services.
In only five years, UBA has become one of the nation’s five largest employee benefits advisory organizations, with nearly 1,900 experienced benefits professionals located in 165 offices across the country. UBA Members provide employee benefits consulting, brokerage services, and best-in-class products to over 37,000 private corporations and public employers. As trusted advisors, UBA Members help their clients manage nearly $16.5 billion annually in employee benefit expenditures on behalf of nearly 5.4 million employees and their families. Visit www.benefits.com for more information.
About United Benefit Advisors (UBA)
AboutHierl Insurance Inc
If You Believe There Has Be A Better Way To Manage Benefit Programs In Order to Get Better, Long Term Results…, You’ll Want To Spend Some Time With Us
Our approach deals with a specific set of problems and will provide a clear, proactive strategy for managing your risks. You’ll learn whether you’re paying money for unnecessary coverage, or if you have an exposure(s) that’s gone undetected… and therefore not covered. We’ll show you how to detect if your employees are engaged in the success of your company or if they’ve become dissatisfied and see your company only as a source for a paycheck?
If you’re experiencing high turnover, declining productivity, uncovered claims, or any other symptoms that are causing you to lose your best employees, we have the experience and proven strategies to help you turn things around. We’ll help demonstrate The Real Bottom Line ™ and how you can effectively measure the impact your programs are having on the success of your company.Sit down with us and take just 60 minutes to share your challenges and frustrations. If we believe that we can create a more effective strategy, we’ll put our full resources to work for you.
Visit us at www.hierl.com, or e-mail at ssmeaton@hierl.com.
Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
2009 UBA Health Plan Survey
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