By Stephen D. Bruce, PHR
Editor, HR Daily Advisor
Nearly 70 percent of respondents to a recent BLR/HRHero survey on health insurance benefits said they expect their health insurance costs to rise in 2012, but an equal number believe that health insurance is too important a part of the compensation package to consider eliminating it.
Other highlights from the BLR/HRHero 2012 Health Insurance Benefits Survey:
- More than 96 percent of respondents to the health insurance benefits survey said they offer health insurance to workers
- More than 2/3 of respondents pay 75 percent or more of single coverage premiums. That number drops to 40 percent for family coverage
- 74 percent of employers reported their health insurance packages are about the same as last year
- 30 percent said they absorbed some of the increased costs they incurred
- 47 percent reported their costs have not yet been significantly affected by health insurance reforms
- 49 percent said their main priority in 2012 regarding health insurance is reigning in costs
Nearly 200 entities participated in the survey. About sixty percent were private, 20 percent non-profit, and 20 percent government. Respondents represent a wide range of industries, and came from all 50 states. There was equal representation of below 50 employees and above 500 employees. Eighty-four percent were non-union.
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Here are the detailed results:
Health Insurance Survey 2012
Does your company offer health insurance to workers?
| Answer |
Count |
Percentage |
|
Yes |
191 |
96.46% |
|
No |
1 |
0.51% |
|
Don’t Know |
0 |
0.00% |
|
Other |
3 |
1.52% |
|
No answer |
3 |
1.52% |
How does your health insurance package compare with last year’s?
| Answer |
Count |
Percentage |
|
Less generous this year |
30 |
15.31% |
|
About the same |
146 |
74.49% |
|
More generous this year |
16 |
8.16% |
|
We don’t have health insurance |
1 |
0.51% |
|
Not sure |
0 |
0.00% |
|
Other |
1 |
0.51% |
|
No answer |
2 |
1.02% |
How much of the health premium does your company pay for SINGLE COVERAGE (i.e., insurance for the employee, not his family)?
| Answer |
Count |
Percentage |
|
Company pays 100% of premium |
41 |
20.71% |
|
Company pays 75% to 99% |
93 |
46.97% |
|
Company pays 50% to 74% |
28 |
14.14% |
|
Company pays 1% to 49% |
11 |
5.56% |
|
Employee pays 100% of premium |
0 |
0.00% |
|
Not sure |
3 |
1.52% |
|
Other |
17 |
8.59% |
How much of the health premium does your company pay for FAMILY COVERAGE?
| Answer |
Count |
Percentage |
|
Company pays 100% of premium |
12 |
6.06% |
|
Company pays 75% to 99% |
65 |
32.83% |
|
Company pays 50% to 74% |
48 |
24.24% |
|
Company pays 1% to 49% |
18 |
9.09% |
|
Employee pays 100% of premium |
28 |
14.14% |
|
Not sure |
3 |
1.52% |
|
Other |
20 |
10.10% |
How did your health insurance costs change in the past year?
| Answer |
Count |
Percentage |
|
Rose 1-4% |
24 |
12.90% |
|
Rose 5-9% |
52 |
27.96% |
|
Rose 10-15% |
38 |
20.43% |
|
Rose 16-20% |
12 |
6.45% |
|
Rose 21-30% |
6 |
3.23% |
|
Rose 31-40% |
1 |
0.54% |
|
Rose more than 40% |
2 |
1.08% |
|
Stayed about the same |
30 |
16.13% |
|
Decreased |
13 |
6.99% |
|
Not sure |
3 |
1.61% |
|
Other |
3 |
1.61% |
|
No answer |
2 |
1.08% |
If your health insurance costs rose, did you pass on the cost increase to your employees?
| Answer |
Count |
Percentage |
|
Yes, we passed on the entire cost of the increase |
16 |
8.74% |
|
Yes, but we absorbed SOME of the increase |
54 |
29.51% |
|
Yes, but we absorbed MOST of the increase (more than half) |
31 |
16.94% |
|
No, we absorbed ALL of the increase |
39 |
21.31% |
|
We didn’t have an increase |
29 |
15.85% |
|
Other |
4 |
2.19% |
|
No answer |
10 |
5.46% |
Does your health insurance plan allow employees to get insurance for their unmarried partners?
| Answer |
Count |
Percentage |
|
Yes |
54 |
29.35% |
|
No |
99 |
53.80% |
|
Not sure |
20 |
10.87% |
|
Other |
7 |
3.80% |
|
No answer |
4 |
2.17% |
What type of health insurance plan do you offer employees?
| Answer |
Count |
Percentage |
|
PPO |
128 |
64.65% |
|
HMO |
56 |
28.28% |
|
Point-of-service plan |
22 |
11.11% |
|
Traditional indemnity plan |
5 |
2.53% |
|
High-deductible plan |
57 |
28.79% |
|
Other |
9 |
4.55% |
Does your company offer or has it considered offering high-deductible health insurance?
| Answer |
Count |
Percentage |
|
Yes, we’ve added it as one of our health insurance options |
47 |
25.54% |
|
Yes, we’ve changed all our health insurance to the high-deductible type |
25 |
13.59% |
|
No, but we’re considering it |
26 |
14.13% |
|
No, we don’t offer high-deductible insurance |
69 |
37.50% |
|
Don’t know |
7 |
3.80% |
|
We don’t have health insurance |
1 |
0.54% |
|
Other |
5 |
2.72% |
|
No answer |
4 |
2.17% |
Do you offer a Health Savings Account to your employees?
| Answer |
Count |
Percentage |
|
Yes |
53 |
28.96% |
|
No |
123 |
67.21% |
|
Don’t Know |
1 |
0.55% |
|
Other |
4 |
2.19% |
|
No answer |
2 |
1.09% |
Do you offer a flexible spending plan?
| Answer |
Count |
Percentage |
|
Yes, for childcare |
102 |
51.52% |
|
Yes, for health care |
106 |
53.54% |
|
Yes, for disability insurance |
3 |
1.52% |
|
No |
70 |
35.35% |
|
Other |
2 |
1.01% |
Do you offer employees the two-and-a-half month grace period for reimbursements from a flexible spending account?
| Answer |
Count |
Percentage |
|
Yes |
73 |
39.89% |
|
No |
27 |
14.75% |
|
Not sure |
12 |
6.56% |
|
We don’t offer a flexible spending plan |
63 |
34.43% |
|
Other |
4 |
2.19% |
|
No answer |
4 |
2.19% |
How have the health insurance reforms (implemented by the PPACA) affected your health insurance plans?
| Answer |
Count |
Percentage |
|
The new reforms have made our costs go up |
66 |
36.26% |
|
They did not significantly impact our costs |
85 |
46.70% |
|
I didn’t know changes were made |
7 |
3.85% |
|
Other |
8 |
4.40% |
|
No answer |
16 |
8.79% |
Since the passage of the health care reform legislation, has your organization considered dropping your health care plan(s)?
| Answer |
Count |
Percentage |
|
Yes, we are planning to drop coverage in the next few years |
1 |
0.55% |
|
Yes, we have had some discussions but are waiting to see how the law is implemented |
17 |
9.34% |
|
Yes, we have had some discussions but are waiting to see whether it is repealed by the U.S. Congress or struck down by the U.S. Supreme Court |
18 |
9.89% |
|
No, it’s too important to our compensation package |
123 |
67.58% |
|
Not sure |
12 |
6.59% |
|
We have already dropped coverage |
0 |
0.00% |
|
We don’t offer health insurance |
1 |
0.55% |
|
Other |
6 |
3.30% |
|
No answer |
4 |
2.20% |
After the exchanges are implemented in 2014 and it may be easier to obtain coverage in the individual market, are you more likely to eliminate your health care plan(s)?
| Answer |
Count |
Percentage |
|
Yes |
17 |
8.59% |
|
No |
63 |
31.82% |
|
Not Sure |
100 |
50.51% |
|
Other |
2 |
1.01% |
What changes do you think your organization’s health care costs will experience in 2012?
| Answer |
Count |
Percentage |
|
Costs will rise significantly |
54 |
29.67% |
|
Costs will rise, but the change won’t be very significant |
70 |
38.46% |
|
Costs will stay pretty much the same with a small rise due to inflation |
35 |
19.23% |
|
Costs will go down |
5 |
2.75% |
|
Other |
7 |
3.85% |
|
No answer |
11 |
6.04% |
What do you think health care reform will do to your organization’s health care costs in the future?
| Answer |
Count |
Percentage |
|
Costs will rise |
117 |
64.64% |
|
No change |
27 |
14.92% |
|
Costs will go down |
11 |
6.08% |
|
Other |
11 |
6.08% |
|
No answer |
15 |
8.29% |
How do you (or will you) deal with rising health care costs?
| Answer |
Count |
Percentage |
|
We will pass on the increase to employees |
19 |
10.61% |
|
We will absorb SOME of the increase |
89 |
49.72% |
|
We will absorb MOST of the increase |
21 |
11.73% |
|
We will absorb ALL of the increase |
4 |
2.23% |
|
We may drop health care coverage |
4 |
2.23% |
|
We will start looking at other options |
28 |
15.64% |
|
Other |
9 |
5.03% |
|
No answer |
5 |
2.79% |
What types of plan design changes, if any, are you planning to make in 2012?
| Answer |
Count |
Percentage |
|
None |
81 |
45.25% |
|
We plan to make significant changes |
2 |
1.12% |
|
We plan to make moderate changes |
34 |
18.99% |
|
We plan to make minor changes |
39 |
21.79% |
|
Other |
13 |
7.26% |
|
No answer |
10 |
5.59% |
What is your main priority this year when it comes to health care benefits?
| Answer |
Count |
Percentage |
|
Complying with health care reform |
29 |
16.67% |
|
Reigning in costs |
85 |
48.85% |
|
Rethinking our long-term benefits strategy |
39 |
22.41% |
|
Other |
5 |
2.87% |
|
No answer |
16 |
9.20% |
When do you think your current health care plan(s) will lose its grandfathered status under the health care reform law?
| Answer |
Count |
Percentage |
|
It already has |
54 |
30.68% |
|
2012 |
6 |
3.41% |
|
2013 |
11 |
6.25% |
|
2014 |
12 |
6.82% |
|
Sometime after 2014 |
13 |
7.39% |
|
We are doing our best to make sure our plan(s) doesn’t lose its status |
48 |
27.27% |
|
Other |
6 |
3.41% |
|
No answer |
26 |
14.77% |
I’d be curious to see how these findings are affecting the prevalence of wellness programs–i.e., are more employers implementing the programs in the face of increasing insurance costs?
How many of these companies have some or many part time or contract workers with NO health care? Most, I suspect