The survey, sent to a random sample of SHRM members, had 510 respondents, which was a 13% response rate. SHRM released the survey at its Annual Conference and Exposition, held recently in Orlando.
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Ninety-eight percent of employers offer some type of healthcare coverage to full-time employees, and the most common offering is a preferred provider (PPO) plan, says the survey.
Employers are reallocating benefits dollars as the country comes back from the recession. Not many organizations are going back to prerecession benefits, says Evren Esen, SHRM’s Director of Survey Programs. As healthcare costs rise, employers are maintaining the healthcare insurance at the expense of other coverage, he adds.
For example, says Esen, education assistance for undergraduates has seen a dip in the number of organizations offering it.
How Are Employers Deciding Which Benefits to Offer?
Employers’ decisions about what benefits to offer tend to be based on three analyses, says Esen.
- What is important to our employees?
- What benefits do the greatest number of employees use?
- What package of benefits will have the biggest impact?
If the return on investment (ROI) on a particular benefit is low, those benefit dollars may be reallocated, he adds.
Wellness Programs on the Increase
“An increase in wellness offerings is a trending tactic for companies looking to save on long-term healthcare costs often associated with chronic diseases such as diabetes and high blood pressure,” says Bruce Elliot, SHRM’s manager of compensation and benefits.
The rise in general wellness initiatives is likely because wellness programs can affect such a large swath of employees, plus they have a high ROI, says Esen. Estimates put wellness ROIs at about 3 to 1, he adds, although it takes 3 to 5 years for the programs to take effect.
The 5-Year Trends
Esen notes that the 5-year trend analyses show gains in the following wellness programs (Percents indicate the number of respondents currently offering the benefit.):
- Health and lifestyle coaching (47%)
- Preventive programs specifically targeting employees with chronic health conditions (42%)
- Subsidies or reimbursements for fitness center memberships (34%)
- Discounts on premiums for taking a Health Care Assessment (21%)
Other programs currently offered include:
- Smoking cessation (42%)
- Participatory weight loss (32%)
- On-site fitness centers (20%)
- Nutritional counseling (20%)
- Nap room and on-site vegetable garden (3% each)
The 5-year trends analysis also shows increases in the percentage of organizations offering:
- Mental health coverage
- Contraception coverage
- Vision insurance
- Coverage for bariatric and laser vision surgery
- Health Savings Accounts (HSAs)
The median cost for employee-only coverage was $5,838, and the median percentage paid by the employer was 80 percent.
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The chart below shows the prevalence of various employee health benefits:
| Benefit | Currently
Offering |
Planning
to Offer |
| Prescription drug program coverage | 95% | 0% |
| Dental insurance | 95% | 1% |
| Mental health coverage | 87% | <1% |
| Mail-order prescription program | 84% | <1% |
| Preferred provider organization (PPO) | 84% | 0% |
| Accidental death and dismemberment insurance (AD&D)A | 84% | 0% |
| Contraceptive coverage | 84% | <1% |
| Vision insurance | 83% | <1% |
| Chiropractic coverage | 83% | <1% |
| Employee assistance program (EAP) | 74% | 2% |
| Long-term disability insuranceA | 74% | 1% |
| Short-term disability insuranceA | 70% | 1% |
| Medical flexible spending accountsB | 68% | 1% |
| Supplemental accident insurance | 46% | <1% |
| Health savings account (HSA) | 45% | 4% |
| Bariatric coverage for weight loss | 38% | 1% |
| Acupressure/acupuncture medical coverage | 36% | <1% |
| Health maintenance organization (HMO) | 33% | 0% |
| Healthcare premium flexible spending accountC | 32% | 1% |
| Employer contributions to HSAs | 32% | 2% |
| Consumer-directed healthcare plan (CDHP) | 30% | 3% |
| Critical illness insuranceD | 30% | 1% |
| Infertility treatment coverage other than in vitro fertilization | 29% | <1% |
| Laser-based vision correction coverage | 28% | <1% |
| In vitro fertilization coverage | 26% | <1% |
| Long-term care insurance | 24% | 1% |
| Hospital indemnity insurance | 22% | <1% |
| Point of service (POS) plan | 22% | <1% |
| Intensive care insuranceE | 21% | <1% |
| Retiree healthcare coverage | 18% | <1% |
| Health reimbursement arrangement (HRA) | 17% | 1% |
| Wholesale generic drug program for injectable drugs | 16% | 1% |
| Elective procedures coverageF | 15% | <1% |
| Alternative/complementary medical coverage | 14% | 1% |
| Pharmacy management program | 14% | 1% |
| Indemnity plan (fee-for-service) | 12% | <1% |
| Gender reassignment surgery coverage | 7% | <1% |
| Exclusive provider organization (EPO) | 7% | 1% |
| Experimental/elective drug coverage | 4% | <1% |
| Mini-med health plan | 2% | 1% |
A Does not pertain to employee-paid supplemental insurance.
B IRC Section 125
C IRC Section 125 Cafeteria Plan allowing for premium conversion
D Provides funds to help cover extra expenses upon diagnosis of a critical illness or condition
E Provides funds to help cover the extra expenses for accidents or illnesses that result in an admission to a hospital intensive care unit
F Any nonemergency surgical procedure other than laser-based vision correction coverage
G Independent of medical plan management
Source: 2014 Employee Benefits: A Research Report by SHRM
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The table below shows the prevalence of various wellness related benefits.
| Wellness Benefit | Percent
Offering |
Planning
to Offer |
| Wellness resources and information | 79% | 4% |
| Wellness programs | 62% | 8% |
| Wellness publicationA | 61% | 6% |
| On-site seasonal flu vaccinations | 58% | 2% |
| 24-hour nurse lineB | 51% | 1% |
| Health screening programsC | 47% | 6% |
| Health and lifestyle coachingD | 47% | 7% |
| CPR/first-aid training | 45% | 2% |
| Smoking cessation program | 42% | 5% |
| Preventive programs specifically targeting employees with chronic health conditions | 42% | 7% |
| Health fairs | 38% | 6% |
| Rewards or bonuses for completing certain health and wellness programs | 36% | 8% |
| Fitness center membership subsidy/reimbursement | 34% | 3% |
| Weight loss program | 32% | 7% |
| Healthcare premium discount for getting an annual health risk assessment | 21% | 6% |
| On-site fitness center | 20% | 1% |
| Nutritional counseling | 20% | 2% |
| Standing deskE | 20% | 3% |
| Healthcare premium discount for not using tobacco products | 19% | 5% |
| On-site blood pressure machine | 14% | 3% |
| Healthcare premium discount for participating in a wellness program | 14% | 5% |
| On-site fitness classesF | 14% | 2% |
| Off-site fitness class subsidy/reimbursement | 12% | 2% |
| Healthcare premium discount for participating in a weight loss program | 9% | 4% |
| On-site sick room | 9% | <1% |
| On-site medical clinic | 7% | <1% |
| On-site massage therapy services | 6% | 2% |
| Fitness equipment subsidy/reimbursement | 5% | 1% |
| On-site stress reduction program | 3% | 2% |
| On-site nap room | 3% | 0% |
| On-site vegetable gardens | 3% | 1% |
A For example, newsletter, column.
B Available to help employees make more informed healthcare decisions.
C For example, glucose, cholesterol.
D Used to help employees change and better manage their health habits.
E Provide or subsidize the cost of replacing a regular desk with a standing desk.
F For example, yoga, aerobics.
Source: 2014 Employee Benefits: A Research Report by SHRM
You can access the entire SHRM 2014 Employee Benefits Survey here.
In tomorrow’s Advisor, survey results about other types of benefits, plus an introduction to the all-things-compensation-and-benefits website, Compensation.BLR.com®.