Watson Wyatt Identifies Major Benefit
Trends During Open Enrollment Season
Press
Release
Financial Incentives/Penalties for Healthy
Behaviors, Full Coverage for Preventive Care Highlight
Trends
WASHINGTON, September 24, 2007 – Millions of U.S. workers are
getting ready to make important decisions about their health care
benefits as this yearfs open enrollment season rapidly approaches.
With companies seeking to improve employee health and control rising
health care costs, employees should take the time to review and
evaluate the benefit choices employers are offering for next year,
according to experts at Watson Wyatt Worldwide, a leading global
consulting firm.
gOpen enrollment is a much more active process than it was just a
few years ago,h said Ted Nussbaum, North America director of group
and health care consulting at Watson Wyatt. gWith some employers
making significant changes to their benefit offerings, employees
will need to pay closer attention to their options than ever before.
And that will require time to ensure they receive the benefits they
want for next year.h
Here are some of the major trends that benefits experts at Watson
Wyatt, which consults with large employers on their open enrollment
programs, have identified for this yearfs season:
- Incentives/penalties for healthy/unhealthy behaviors.
Companies recognize that having a healthy workforce can help
control rising health care costs and increase worker productivity.
More companies are offering financial incentives to employees who
have healthy lifestyle habits or who participate in wellness and
fitness programs. A forthcoming survey by Watson Wyatt and the
National Business Group on Health (NBGH) shows that 46 percent of
employers currently offer economic incentives and another 26
percent plan to do so in 2008. A few companies take the opposite
approach and penalize workers for unhealthy choices, such as
smoking, by charging them higher premiums. Many companies give
workers a financial incentive to complete a health risk
assessment.
- Full coverage for preventive care benefits. More
employers are covering preventive medical care and even preventive
drugs at 100 percent and not subjecting these to a deductible.
Often included in these fully paid benefits are vaccinations,
exams and screenings for early diagnosis of and intervention in
breast, colon and cervical cancer. Many employers also provide
coverage or partial reimbursement for blood pressure and
cholesterol checkups as well as flu shots.
- Health coaches/onsite health centers. A growing number
of employers offer workers access to health coaches and advocates.
These experts provide individualized advice to workers on personal
health care needs and can educate workers about best care and what
questions to ask their health care providers. Another survey by
Watson Wyatt and NBGH shows that 44 percent of large employers
offer health coaches and another 13 percent plan to offer them
next year. Additionally, nearly one-fourth of employers have
onsite health centers and another 6 percent plan to open them next
year.
- More choice to meet individual needs. Employers are
offering workers a variety of benefit options to help meet
personal and family needs. Some of these options are voluntary
benefits, such as homeowners, automobile and group life insurance
and discounts on vision and dental care, massage therapy,
chiropractic care, weight-management programs and fitness club
memberships.
- More communication/more tools. Employers are enhancing
their communication with workers and providing online tools to
help them evaluate and estimate their health care expenses and
needs and manage their personal health care. The use of corporate
portals has become increasingly popular, giving workers easy
access to a wide range of Web-based health care information that
they can use during open enrollment and throughout the year.
- More health savings accounts/fewer plan options.
Employer interest in consumer-directed health plans (CDHPs) with
health savings accounts (HSA) continues to grow. Watson Wyatt
research shows that 40 percent of companies will offer workers an
HSA next year. At the same time, to reduce administrative costs,
employers are cutting back on the number of health plan options
they will offer workers. More employers plan to offer a
consumer-directed health plan as their only option. The Watson
Wyatt/NBGH survey found that 5 percent of employers now offer a
CDHP on a total replacement basis and another 4 percent plan to do
so in 2008.
- Scrutiny of spousal/dependent coverage. Companies are
paying closer attention to workers who enroll their spouses and
dependents in their health benefits. Some companies require
employees to pay higher premiums for spousal coverage when their
spouse is eligible for other health care coverage. And some
companies are conducting eligibility audits and asking workers to
provide proof that the dependents they enroll in the health plan
are considered legal dependents.
Attention, editors: Watson Wyatt benefits consultants are
available to discuss the upcoming open enrollment season. Please
contact Ed Emerman at 609/452-5967, eemerman@eaglepr.com, or
Steve Arnoff at 703/258-7634, steven.arnoff@watsonwyatt.com,
to schedule an interview.
About Watson Wyatt Worldwide Watson Wyatt (NYSE: WW) is
the trusted business partner to the worldfs leading organizations on
people and financial issues. The firmfs global services include:
managing the cost and effectiveness of employee benefit programs;
developing attraction, retention and reward strategies; advising
pension plan sponsors and other institutions on optimal investment
strategies; providing strategic and financial advice to insurance
and financial services companies; and delivering related technology,
outsourcing and data services. Watson Wyatt has 7,000 associates in
31 countries and is located on the Web at http://www.watsonwyatt.com/
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