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The Minnesota Health Action Group Employer Benefits Survey provides comprehensive health benefit benchmarks from Minnesota employers. Now in its sixth year, this unique Survey offers invaluable strategic and tactical plan design details, along with insight into health plan vendors, prescription drug trends (with an emphasis on specialty pharmacy), wellness programs, market innovations, and more. The Survey digs deep into what is and isn’t working for Minnesota employers.
Top-line Survey Highlights
The average health care cost trend (total, including employer and employee share) increased to 6.2%, which is comparable to the national average of 6.4%.
High-cost specialty drugs continue to be a primary driver of increasing benefit costs, with a trend rate of 30% for the second year in a row.
Disease management and telemedicine are the two most common programs used to mitigate costs and improve health outcomes (although employers say neither is very effective).
For the third year running, employers cite consumer education as the #1 tactic they will use to better control health care trend.
About 25% of employers say they plan to change health care vendors in the coming year.
About the 2016 Employer Benefits Survey• 39 employer participants either
headquartered in or withemployees in Minnesota.
• Nearly 228,000 Minnesotaemployees represented in theSurvey results.
“The Survey results are of great value as we develop our benefit strategy each year. We always learn many new things from our peers, and I especially look forward to the results meeting where we discuss the findings in detail with other participants.”
- Sherry Frederick, Senior Benefit Manager, Park Nicollet Health Services
Minnesota Health Action GroupAnnual Employer Benefits Survey Overview Discovering Together What None of Us Can Discover Alone
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› For the second year in a row, Minnesota employers cite the high cost of specialty drugs as a primary driver of benefit costs, with a trend rate of over 30%.
› To mitigate specialty pharmacy costs, employers are implementing strategies such as prior authorizations, step therapy, partial filling of orders, and delaying or not covering new drugs.
› The full Survey report also includes prescription drug information about:
• How prescription drug benefits are administered
• Drug coverage copayments and coinsurance amounts
• Tactics used to control spiraling specialty andnon-specialty drug costs
Prescription Drug Costs Strategies and Tactics
What prescription drug tiers do you offer?
Other Insights…
› There is very little interest in public or private exchanges, and almost no interest in medical tourism.
› With the burgeoning use of high-deductible health plans, interest is growing in helping employees achieve better financial wellness.
› Second opinion services, sex reassignment exclusions, reference-based pricing, and end-of-life care coverage are becoming more common.
› Employers say they are looking at wellness programs and transparency tools as ways to engage employees in behaviors that can reduce health care spending in the long term, with many considering offering the National Diabetes Prevention Program (NDPP) in the near future.
How do you measure the effectiveness of your wellness programs?
› There continues to be a plethora of programs, old and new, designed to help control rising health care costs.
› All but one employer surveyed offers a wellness benefit, with health risk assessments, nurse lines, and online wellness programs as those most frequently offered. About 89% of employers offered an incentive to employees to encourage participation.
› Employee engagement in wellness programs is the most common measure of effectiveness.
› The full Survey report also includes wellness information about:
• Vendors and their ratings
• Incentive types and rules
• Participation levels for employees and eligible familymembers
Health Improvement Strategies and Tactics
› A comprehensive report of findings and detailed answers is available to organizations that participated in the Survey. The Survey is open to members and non-members, both public and private. Employers willing to commit to 2017 survey participation will receive a complimentary copy of the full 2016 survey results. Interested employers may contact Sue Jesseman at [email protected].
About the Minnesota Health Action GroupThe Minnesota Health Action Group is a coalition of public and private purchasers whose sole purpose is to represent the collective voice of those who write the checks for health care in Minnesota. Action Group members collaborate with community stakeholders to drive innovations that support high quality health care, create engaged consumers, and ensure the economic vitality of all Minnesota communities. Based in Bloomington, Minn., the Minnesota Health Action Group was formed in 1988 as the Buyers Health Care Action Group. To learn more, visit www.mnhealthactiongroup.org. Follow on LinkedIn and Twitter: @actiongroupmn.
Sample Findings From the 2016 Annual Employer Benefits Survey
Health Plan Costs, Contributions and Tactics
› The average health care cost trend (total, including employer and employee share) increased to 6.2%, which is comparable to the national average of 6.4%. Premium trend (increase passed along to employees) increased slightly to 4.7%, which is above the national average of 4%. The overall health care cost trend continues to outpace inflation (0.7%) and employee wage increases.
› Consumer education and consumer-directed health plans were strategies cited most often as being used to control spending. Value-based plan designs are also gaining traction. Additionally, many employers are contemplating increasing deductibles, copayments and coinsurance, along with consolidating plan designs and reconsidering dependent and spousal eligibility status.
› Health Savings Accounts and Preferred Provider Organizations increased in popularity again in 2015, with Health Reimbursement Arrangements dipping by 20% from 2014. Point-of-Service and HMO plan offerings continue to fade. Offering more network options and smaller networks is another way employers are addressing cost increases.
› Although 69% of employers haven’t changed health care vendors in the last three years, 25% plan to do so in the next year.
› The full Survey report also includes information about:
• Health benefit planning goals
• Historical trend information
• Contribution and cost-sharing amounts
May 2016
What is your contribution strategy for 2016?
Richer plan design based on value
Top reasons for changing health plan vendors
• Health plan vendors and their ratings
• Specific plan designs
“Both private and public employers tell us how important it is to compare their strategies and results to others in Minnesota. Our annual Survey gives them a unique tool to gauge their organization’s experience against others, and serves up insights that are invaluable for future goal setting. It also allows The Action Group to identify employer pressure points and opportunities to take action together.”
- Carolyn Pare, President and CEO, Minnesota Health Action Group
The Minnesota Health Action Group Employer Benefits Survey provides comprehensive health benefit benchmarks from Minnesota employers. Now in its sixth year, this unique Survey offers invaluable strategic and tactical plan design details, along with insight into health plan vendors, prescription drug trends (with an emphasis on specialty pharmacy), wellness programs, market innovations, and more. The Survey digs deep into what is and isn’t working for Minnesota employers.
Top-line Survey Highlights
The average health care cost trend (total, including employer and employee share) increased to 6.2%, which is comparable to the national average of 6.4%.
High-cost specialty drugs continue to be a primary driver of increasing benefit costs, with a trend rate of 30% for the second year in a row.
Disease management and telemedicine are the two most common programs used to mitigate costs and improve health outcomes (although employers say neither is very effective).
For the third year running, employers cite consumer education as the #1 tactic they will use to better control health care trend.
About 25% of employers say they plan to change health care vendors in the coming year.
About the 2016 Employer Benefits Survey• 39 employer participants either
headquartered in or withemployees in Minnesota.
• Nearly 228,000 Minnesotaemployees represented in theSurvey results.
“The Survey results are of great value as we develop our benefit strategy each year. We always learn many new things from our peers, and I especially look forward to the results meeting where we discuss the findings in detail with other participants.”
- Sherry Frederick, Senior Benefit Manager, Park Nicollet Health Services
Minnesota Health Action GroupAnnual Employer Benefits Survey Overview Discovering Together What None of Us Can Discover Alone
1
2
3
4
5
› For the second year in a row, Minnesota employers cite the high cost of specialty drugs as a primary driver of benefit costs, with a trend rate of over 30%.
› To mitigate specialty pharmacy costs, employers are implementing strategies such as prior authorizations, step therapy, partial filling of orders, and delaying or not covering new drugs.
› The full Survey report also includes prescription drug information about:
• How prescription drug benefits are administered
• Drug coverage copayments and coinsurance amounts
• Tactics used to control spiraling specialty andnon-specialty drug costs
Prescription Drug Costs Strategies and Tactics
What prescription drug tiers do you offer?
Other Insights…
› There is very little interest in public or private exchanges, and almost no interest in medical tourism.
› With the burgeoning use of high-deductible health plans, interest is growing in helping employees achieve better financial wellness.
› Second opinion services, sex reassignment exclusions, reference-based pricing, and end-of-life care coverage are becoming more common.
› Employers say they are looking at wellness programs and transparency tools as ways to engage employees in behaviors that can reduce health care spending in the long term, with many considering offering the National Diabetes Prevention Program (NDPP) in the near future.
How do you measure the effectiveness of your wellness programs?
› There continues to be a plethora of programs, old and new, designed to help control rising health care costs.
› All but one employer surveyed offers a wellness benefit, with health risk assessments, nurse lines, and online wellness programs as those most frequently offered. About 89% of employers offered an incentive to employees to encourage participation.
› Employee engagement in wellness programs is the most common measure of effectiveness.
› The full Survey report also includes wellness information about:
• Vendors and their ratings
• Incentive types and rules
• Participation levels for employees and eligible familymembers
Health Improvement Strategies and Tactics
› A comprehensive report of findings and detailed answers is available to organizations that participated in the Survey. The Survey is open to members and non-members, both public and private. Employers willing to commit to 2017 survey participation will receive a complimentary copy of the full 2016 survey results. Interested employers may contact Sue Jesseman at [email protected].
About the Minnesota Health Action GroupThe Minnesota Health Action Group is a coalition of public and private purchasers whose sole purpose is to represent the collective voice of those who write the checks for health care in Minnesota. Action Group members collaborate with community stakeholders to drive innovations that support high quality health care, create engaged consumers, and ensure the economic vitality of all Minnesota communities. Based in Bloomington, Minn., the Minnesota Health Action Group was formed in 1988 as the Buyers Health Care Action Group. To learn more, visit www.mnhealthactiongroup.org. Follow on LinkedIn and Twitter: @actiongroupmn.
