Shrm poll health_care2_seniormanagement

September 17, 2010

SHRM Poll: Organizations’ Response to Health

Care Reform—Senior Management’s Requests

Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010

Health Care Reform Series: Poll 2Introduction

Landmark legislation that brought about major reforms in health care coverage in the United States was enacted in March 2010. The law affects employers and HR professionals in a variety of ways. SHRM will be conducting a series of polls on health care reform and its implications for employers and employees. This presentation covers the findings from the second poll in this series, which was conducted in July 2010.

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Key Findings

• Has senior management asked HR to provide an overview of the implications of the new law? Larger organizations (those with 500 to 24,999 employees) were more likely than organizations with fewer than 500 employees to report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization.

• Are leaders of organizations focusing on the short-term or long-term implications of the new law? HR professionals appear to be focused first on addressing short-term implications of the law with organizational leadership, before addressing long-term and more strategic issues.

• What areas are HR professionals addressing with their organizational leadership in relation to the new law? HR professionals report that they addressing overall knowledge of the new law, actions the organization needs to take immediately, changes the organization needs to make to its current health care plan to be compliant and the immediate financial implications (for 2010 and 2011).

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In your organization, has senior management asked HR to provide an overview of the implications of the new health care reform law for your organization?

Yes, 54%

No, 46%

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Note: n = 695. “Not sure” responses were excluded from this analysis.


In your organization, has senior management asked HR to provide an overview of the implications of the new health care reform law for your organization?

• By staff size: Larger organizations (those with 500 to 24,999 employees) were more likely than organizations with fewer than 500

employees to report that senior management asked HR to provide an overview of the implications of the new health care reform law for their

organization.

• By sector: Publicly owned for-profits (68%) were more likely than privately owned for-profits (51%) and nonprofits (51%) to report that

senior management asked HR to provide an overview of the implications of the new health care reform law for their organization.

• By operations location: Organizations with multinational operations (62%) were more likely than U.S.-based only organizations (51%) to

report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization.

• By medical benefit funding: Organizations with self-insured medical benefit (64%) were more likely than insured organizations (41%) to

report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization.

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Comparison by Organization’s Staff Size, Sector, Operations Location and Medical Benefit Funding

Smaller Organizations Larger Organizations Differences Based on

Organization Staff Size

•100 to 499 employees (43%) •500 to 2,499 employees (63%)

•2,500 to 24,999 employees

(74%)

Larger organizations > smaller

organizations


Which of the following issues has your HR team addressed or is it continuing to address in order to help the leadership of your organization better understand the new health care reform law and its implications?

Overall knowledge of the new health care reform law 51%

Actions your organization needs to take immediately 49%

Changes your organization needs to make to its current health care plan to be compliant 47%

The immediate financial implications (2010 and 2011) 46%

The future financial implications (beyond 2011) 39%

Affordability of your health care plan for current employees 31%

Health care as part of the total compensation package 24%

Resources available to help the organization analyze, design and communicate health care plan to stakeholders 20%

Possible penalties your organization could incur if it doesn’t comply with new health care reform law, decides not to offer

health care to employees or makes changes to the plan16%

Deciding who is the best resource (e.g., counsel/consultant) to explain the new health care reform law 13%

Investigating the impact of the new health care reform law on part-time employees in the organization 9%

Determining the impact on recruitment and retention strategies 7%

Developing a plan on how to figure out each employee’s household income 3%

Other 3%

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Note: n = 814. Percentages do not total 100% as multiple response was allowed.

Respondents were allowed to select up to three options.

• HR professionals appear to be focused first on addressing short-term implications of the law with organizational leadership, before addressing long-term and more strategic issues.


Which of the following issues has your HR team addressed or is it continuing to address in order to help the leadership of your organization better understand the new health care reform law and its implications?

• The immediate financial implications (2010 and 2011) (by staff size): Larger organizations (those with 500 to 24,999 employees) were

more likely than organizations with fewer than 500 employees to report that the issue they have addressed or are continuing to address to

help their leadership better understand the health care reform law is the immediate financial implications (2010 and 2011).

• The immediate financial implications (2010 and 2011) (by medical benefit funding): Self-insured organizations (55%) were more likely

than insured organizations (38%) to report that the issue they have addressed or are continuing to address to help their leadership better

understand the health care reform law is the immediate financial implications (2010 and 2011).

• The future financial implications (beyond 2011) (by medical benefit funding): Self-insured organizations (45%) were more likely than

insured organizations (32%) to report that the issue they have addressed or are continuing to address to help their leadership better

understand the health care reform law is the future financial implications (beyond 2011).

• Changes your organization needs to make to its current health care plan to be compliant (by medical benefit funding): Self-insured

organizations (57%) were more likely than insured organizations (36%) to report that the issue they have addressed or are continuing to

address to help their leadership better understand the health care reform law is changes their organization needs to make to its current

health care plan to be compliant .

• Health care as part of the total compensation package (by union status): Organizations with no employees under a collective

bargaining agreement (33%) were more likely than unionized organizations (23%) to report that the issue they have addressed or are

continuing to address to help their leadership better understand the health care reform law is health care as part of the total compensation

package.

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Comparison by Organization’s Staff Size, Union Status and Medical Benefit Funding





(59%)


organizations


How is your organization’s primary medical benefit currently funded?

Self-insured, 56%

Insured, 44%

8Note: n = 749


How is your organization’s primary medical benefit currently funded?

• By staff size: Larger organizations (those with 500 or more employees) were more likely than organizations with fewer than 500 employees

to report that their organization’s primary medical benefit is self-insured.

• By operations location: Organizations with multinational operations (71%) were more likely than U.S.-based (51%) organizations to report

that their organization’s primary medical benefit is self-insured.

• By sector: Publicly owned for-profits (72%) were more likely than privately owned for-profits (50%) and nonprofits (49%) to report that their

organization’s primary medical benefit is self-insured.

• By union status: Unionized organizations (64%) were more likely than non-unionized (54%) organizations to report that their organization’s

primary medical benefit is self-insured.

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Comparison by Organization’s Staff Size, Sector, Operations Location, Sector and Union Status





(84%)

•25,000 or more employees

(84%)


organizations


Demographics: Organization Industry

Industry

Manufacturing –other 18%

Health care, social assistance (e.g., hospitals, clinics) 13%

Financial services (e.g., banking) 8%

Services –professional, scientific, technical, legal 7%

Educational services/education 6%

Government/public administration—federal, state/local, tribal 5%

Retail/wholesale trade5%

Construction, mining, oil and gas 4%

Insurance4%

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Note: n = 754. Percentages do not total 100% due to rounding.


Demographics: Organization Industry (continued)

Industry

Other services (e.g., other nonprofit, church/religious organizations) 4%

Transportation, warehousing (e.g., distribution) 3%

High-tech 3%

Services—accommodation, food and drinking places 3%

Utilities 2%

Real estate, rental, leasing 2%

Publishing, broadcasting, other media 2%

Manufacturing—auto/auto-related 2%

Arts, entertainment, recreation 1%

Consulting 1%

Telecommunications 1%

Association—professional/trade 0%

Pharmaceutical 0%

Biotech 0%

Other 5%

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Demographics: Organization Sector

4%

8%

20%

21%

47%

0% 10% 20% 30% 40% 50% 60%

Other

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

12Note: n = 756


Demographics: Organization Staff Size

6%

27%

35%

26%

5%

0%

10%

20%

30%

40%

50%

50 to 99 employees 100 to 499 employees 500 to 2499 employees 2500 to 24999 employees

25000 or more employees

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Demographics: Other

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Note: n = 763

U.S.-based operations 75%

Multinational operations 25%

Single-unit company: A

company in which the

location and the company

are one and the same

29%

Multi-unit company: A

company that has more than

one location

71%

Multi-unit headquarters determines

HR policies and practices

64%

Each work location determines HR

policies and practices

1%

A combination of both the work

location and the multi-unit

headquarters determine HR policies

and practices

35%

Is organization a single-unit company or a multi-

unit company?

Are HR policies and practices determined by

the multi-unit corporate headquarters, by each

work location or both?

Does the organization have U.S.-based

operations (business units) only or

does it operate multinationally?

Note: n = 750

Note: n = 556

• 19% of organizations indicated that

employees at their work location were

unionized.

Note: n = 755


SHRM Poll: Organizations’ Response to Health Care Reform – Poll 2

• Response rate = 21%

• Sample comprised of 1,095 randomly selected HR professionals with the job title of manager and above, as well as HR professionals in the compensation and benefits functional area. All analyses were based on respondents working at organizations with a staff size of 50 employees or more.

• Margin of error is +/- 3%

• Survey fielded July 22–August 3, 2010

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Methodology

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