Large U.S. Employers Project a 7% Increase in Health Care Benefit Costs in
2014, National Business Group on Health Survey Finds
August 28,
2013 - National Business Group on Health
For more information contact:
Ed Emerman
eemerman@eaglepr.com
609-275-5162
WASHINGTON,
August 28, 2013 – The cost of providing employee health care benefits at the
nationfs largest employers is projected to increase 7% in 2014 – the third
consecutive year employers have budgeted this amount, according to a new survey
by the National Business Group on Health, a non-profit association of more than
365 large U.S. employers. The survey – one of the industryfs first look at
costs and plan design changes for 2014 – also found that some employers believe
health insurance exchanges could be a viable option for certain populations.
Additionally, more companies plan to offer workers a consumer-directed health
plan as their only health benefits option in 2014.
According to the
survey, employers expect their employee health care benefits costs will increase
by an average of 7% in 2014. Thatfs the same increase they budgeted both this
year and last. Despite being able to keep cost increases gstableh for another
year, employers continue to embrace changes designed to engage workers in health
management and healthy lifestyles. The survey, based on responses from 108 of
the nationfs largest corporations, was conducted in June 2013 prior to the Obama
administrationfs decision to delay for one year the implementation of the
employer mandate.
gRising health care costs remain a serious concern for
U.S. employers,h said Helen Darling, president and CEO of the National Business
Group on Health. gEmployers spent considerable time and energy this year
designing health plans that comply with the various provisions of the Affordable
Care Act that would have become effective next year. And while the decision to
delay provisions related to the employer mandate has provided respite from some
of these requirements, the pressure remains on employers to lower costs.
Interestingly, many respondents indicated that a portion of their budgeted costs
for 2014 was to implement changes mandated by the ACA. With the delay, it is
unclear how employer costs will be affected.h
While large employers will
not be eligible to participate in state health exchanges until 2017 at the
earliest, employers expect that certain populations may find exchanges to be a
viable option on an individual basis in 2014. Roughly four in ten (41%)
employers believe COBRA plan participants might find public health exchanges to
be the most cost effective option. Additionally, more than one-fourth (26%)
felt that some pre-65 retirees might opt to join exchanges, while 20% believe
that some part-time employees will do the same.
gPrivate exchanges are
another option some employers are considering. In the last year, there has been
an increase in the number of private exchanges that are being launched. And
while some employers are considering private exchanges for active employees
sometime in the future, very few (3%) are considering eliminating health care
coverage entirely,h said Darling.
More Employers Embracing
Total Replacement CDHPs
The survey found that implementing a
consumer-directed health plan (CDHP) was considered the most effective tactic to
control rising costs, cited by more than one-third of respondents (36%). In
fact, nearly three-quarters of employers (72%) now offer at least one CDHP. This
number has remained relatively steady over the last couple of years. However,
the number of employers that are offering only a CDHP to employees continues to
rise, with 22% planning to implement a total replacement CDHP next year, up
from19% this year.
The survey asked employers about a variety of initiatives
they use to manage the health of their employees. More than four in ten
respondents (44%) currently have an on-site clinic in at least one of their
locations, with 9% are expecting to build a clinic next year.
Employers
cover a variety of services/medications for the treatment of obesity and severe
obesity. Nearly two-thirds of respondents (66%) will cover surgical
interventions for the treatment of severe obesity in 2014. Additional treatments
covered by some employers include FDA-approved medications (36%) and intensive,
multi-component behavioral interventions for plan participants with a BMI of
more than 30.
Respondents were also asked about common wellness programs.
Nearly all employers offer a tobacco cessation program (89%), and 77% offer
telephonic or on-site health coaching. More than half of respondents (55%) also
make on-site weight management programs available to employees. The vast
majority also conduct health assessments (88%) or biometric screenings
(83%).
gEmployers continue to implement numerous tactics to control
costs, improve employee health and productivity and ensure the delivery of high
quality health care to their employees and dependents. Some employers are
taking creative approaches in their efforts to win the war on rising health
costs. These include managing specialty and non-specialty pharmaceuticals,
contracting directly with providers who have been shown to provide high quality
health care as well as offer employees numerous programs designed to help them
live a healthy life,h concluded Darling.
About the National
Business Group on Health
The National Business Group on Health is
the nation's only non-profit organization devoted exclusively to representing
large employers' perspective on national health policy issues and providing
practical solutions to its members' most important health care problems. The
Business Group helps drive today's health agenda while promoting ideas for
controlling health care costs, improving patient safety and quality of care and
sharing best practices in health benefits management with senior benefits, HR
professionals, and medical directors from leading corporations. Business Group
members, which include 66 Fortune 100 companies, provide health coverage for
more than 50 million U.S. workers, retirees and their families. For more
information, visit www.businessgrouphealth.org.
Copyright 2013 National Business Group on Health
20 F Street NW, Suite 200, Washington, DC 20001-6700 - P:
202-558-3000 - F: 202-628-9244 - E-mail: info@businessgrouphealth.org