By Stephen D. Bruce, PHR Editor, HR Daily Advisor
Just My E-pinion
The findings are interesting and will be useful to all readers for evaluating their own programs (and maybe for finding a little comfort in not being alone struggling with healthcare costs).
For years, BLR® has surveyed compensation and benefits professionals. This year, we are expanding that program with a series of brief, targeted benefits surveys. The findings of these surveys are analyzed and presented free to all respondents.
Responses show that 41% of respondents reported spending up to $5,000 per employee on health care in 2009, with 47% reporting costs in the $5,000-10,000 range, and 12% reporting costs per employee of over $10,000 per year.
In BLR’s 2008 Survey of Employee Benefits, only 35% of respondents reported holding healthcare costs below the $5,000-per-year threshold—things seem to be improving, at least at the low end of the spectrum.
Nearly three-quarters (72%) of responding companies reported taking at least one action to reduce healthcare costs in the prior year. Of those, over half reported raising employees’ portion of healthcare premiums. Other cost reduction tactics included:
The survey, conducted by BLR’s HR Daily Advisor in December 2009, received nearly 1,400 responses, of which 80% originated from companies with fewer than 500 employees. The responses were evenly divided geographically within the United States.
Here are the detailed results:
Is health insurance offered to employees?
Respondents
Number
Percent
Yes
1,316
98%
No
27
2%
What groups are covered by health insurance?
Employees
1,312
100%
Dependents
1,147
87%
Retirees
178
14%
Part-time Employees
227
17%
Domestic Partners
339
26%
Health insurance is optional for:
1,017
86%
1,101
93%
160
223
19%
321
27%
In companies that took at least one action to reduce healthcare costs in the last year, actions taken:
Raised employees' copayment
397
40%
Raised employees' deductible
458
46%
Raised employees' portion of premium
519
52%
Introduced managed care program
65
7%
Conducted dependent audits
126
13%
Reduced contributions to dependent premiums
80
8%
Offered HSA/HRA High Deductible Plans
322
32%
Restructured employee premiums
28
3%
Implemented wellness programs
263
Discontinued retiree coverage
7
1%
Discontinued coverage to part-timers
11
Offered opt-out incentives
79
In companies that plan at least one action to reduce healthcare costs in the coming year, actions planned:
Raise employees' copayment
261
34%
Raise employees' deductible
285
38%
Raise employees' portion of premium
417
55%
Introduce managed care program
41
5%
Conduct dependent audits
Reduce contributions to dependent premiums
74
10%
Offer HSA/HRA High Deductible Plans
202
Restructure employee premiums
25
Implement wellness programs
224
29%
Discontinue retiree coverage
10
Discontinue coverage to part-timers
4
Offer opt-out incentives
68
9%
Full-time employees are covered under the organization's health insurance plan after:
0 months
242
21%
1 month
408
36%
2 months
91
3 months
348
31%
More than 3 months
4%
Items included in health insurance plan:
Extended care other than hospice
428
37%
Hospice care
631
Home health care
660
57%
Dental care
855
75%
Vision care
765
66%
Alcoholism treatment
914
79%
Drug abuse treatment
925
80%
Mental health
1,013
88%
Prescription drugs
1,102
96%
Mail-order drugs
1,005
Less than $2,500
103
$2,500 to $5,000
354
$5,001 to $7,500
299
$7,501 to $10,000
231
Over $10,000
136
12%
Healthcare funding type: In 2009, the majority of covered employees were in:
Commercial carrier plan
249
20%
Self-insured plan
200
16%
HMO
207
Preferred provider organization
423
33%
HSA/HRA High Deductible plan
175
21
Percent of healthcare insurance premiums paid by the employer for employees:
0%
16
More than 0%, but less than 50%
86
11%
At least 50%, but less than 65%
90
At least 65%, but less than 80%
196
25%
At least 80%, but less than 100%
230
30%
161
Percent of healthcare insurance premiums paid by the employer for dependents:
121
117
15%
172
22%
151
54
Maximum deductible/copayment payable by employee for single coverage:
None
37
More than $0, but less than $200
75
At least $200, but less than $500
164
More than $500, but less than $1,000
139
18%
At least $1,000, but less than $2,000
188
$2,000 or more
159
Maximum deductible/copayment payable by employee for family coverage:
38
More than $0, but less than $400
At least $400, but less than $1,000
152
More than $1,000, but less than $2,000
146
At least $2,000, but less than $4,000
193
$4,000 or more
166
Organization offers health saving accounts (HSAs):
333
761
70%
In companies with HSAs, those that contribute to Individual accounts annually:
Yes, if the employee participates in a wellness program
8
379
68%
Coverage
Individual
Family
Less than $1,000
97
45
48%
$1,000 to $1,499
55
43
$1,500 to $1,999
24
$2,000 to $2,499
9
20
$2,500 to $2,999
3
$3,000 or more
12
32
6%
Organization offers health reimbursement accounts (HRAs):
307
760
71%
In companies with HRAs, amounts reimbursable:
71
34
23%
$1,000 to $1,999
66
$2,000 to $2,999
63
64
$3,000 to $3,999
29
36
$4,000 to $4,999
35
$5,000 or more
40
49
Again, our thanks to all 1,400 participants in the survey! We welcome readers’ comments. What should we survey next? Write sbruce@blr.com or use the comments button below.
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