By Stephen D. Bruce, PHR
Editor, HR Daily Advisor
Just My E-pinion
In today’s Advisor, we’ve got the results of the healthcare survey in which 1,400 readers participated. The most hopeful news? There is some indication that some companies are bringing healthcare costs under control.
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.
Healthcare Spending
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.
Cost Reduction Tactics
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:
- Raising employees’ copayments and deductibles
- Offering health savings accounts (HSAs) and/or health reimbursement accounts (HRAs)
- Implementing wellness programs
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? |
||
|
Respondents |
||
|
|
Number |
Percent |
|
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: |
|
|
||
|
Respondents |
||||
|
|
Number |
Percent |
||
|
Employees |
1,017 |
86% |
||
|
Dependents |
1,101 |
93% |
||
|
Retirees |
160 |
14% |
||
|
Part-time Employees |
223 |
19% |
||
|
Domestic Partners |
321 |
27% |
||
|
In companies that took at least one action to reduce healthcare costs in the last year, actions taken: |
|||
|
Respondents |
|||
|
|
Number |
Percent |
|
|
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 |
26% |
|
|
Discontinued retiree coverage |
7 |
1% |
|
|
Discontinued coverage to part-timers |
11 |
1% |
|
|
Offered opt-out incentives |
79 |
8% |
|
|
In companies that plan at least one action to reduce healthcare costs in the coming year, actions planned: |
||
|
Respondents |
||
|
|
Number |
Percent |
|
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 |
126 |
17% |
|
Reduce contributions to dependent premiums |
74 |
10% |
|
Offer HSA/HRA High Deductible Plans |
202 |
27% |
|
Restructure employee premiums |
25 |
3% |
|
Implement wellness programs |
224 |
29% |
|
Discontinue retiree coverage |
10 |
1% |
|
Discontinue coverage to part-timers |
4 |
1% |
|
Offer opt-out incentives |
68 |
9% |
|
Full-time employees are covered under the organization’s health insurance plan after: |
|||
|
Respondents |
|||
|
|
Number |
Percent |
|
|
0 months |
242 |
21% |
|
|
1 month |
408 |
36% |
|
|
2 months |
91 |
8% |
|
|
3 months |
348 |
31% |
|
|
More than 3 months |
41 |
4% |
|
|
Items included in health insurance plan: |
|
|
|
Respondents |
||
|
|
Number |
Percent |
|
Extended care other than hospice |
428 |
37% |
|
Hospice care |
631 |
55% |
|
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 |
87% |
|
Items included in health insurance plan: |
|
|
|
Respondents |
||
|
|
Number |
Percent |
|
Less than $2,500 |
103 |
9% |
|
$2,500 to $5,000 |
354 |
32% |
|
$5,001 to $7,500 |
299 |
27% |
|
$7,501 to $10,000 |
231 |
21% |
|
Over $10,000 |
136 |
12% |
|
Healthcare funding type: In 2009, the majority of covered employees were in: |
|||
|
Respondents |
|||
|
|
Number |
Percent |
|
|
Commercial carrier plan |
249 |
20% |
|
|
Self-insured plan |
200 |
16% |
|
|
HMO |
207 |
16% |
|
|
Preferred provider organization |
423 |
33% |
|
|
HSA/HRA High Deductible plan |
175 |
14% |
|
|
|
21 |
2% |
|
|
Percent of healthcare insurance premiums paid by the employer for employees: |
|||
|
Respondents |
|||
|
|
Number |
Percent |
|
|
0% |
16 |
2% |
|
|
More than 0%, but less than 50% |
86 |
11% |
|
|
At least 50%, but less than 65% |
90 |
12% |
|
|
At least 65%, but less than 80% |
196 |
25% |
|
|
At least 80%, but less than 100% |
230 |
30% |
|
|
100% |
161 |
21% |
|
|
Percent of healthcare insurance premiums paid by the employer for dependents: |
||
|
Respondents |
||
|
|
Number |
Percent |
|
More than 0%, but less than 50% |
121 |
16% |
|
At least 50%, but less than 65% |
117 |
15% |
|
At least 65%, but less than 80% |
172 |
22% |
|
At least 80%, but less than 100% |
151 |
19% |
|
100% |
54 |
7% |
|
Maximum deductible/copayment payable by employee for single coverage: |
||
|
Respondents |
||
|
|
Number |
Percent |
|
None |
37 |
5% |
|
More than $0, but less than $200 |
75 |
10% |
|
At least $200, but less than $500 |
164 |
22% |
|
More than $500, but less than $1,000 |
139 |
18% |
|
At least $1,000, but less than $2,000 |
188 |
25% |
|
$2,000 or more |
159 |
21% |
|
Maximum deductible/copayment payable by employee for family coverage: |
|||
|
Respondents |
|||
|
|
Number |
Percent |
|
|
None |
38 |
5% |
|
|
More than $0, but less than $400 |
68 |
9% |
|
|
At least $400, but less than $1,000 |
152 |
20% |
|
|
More than $1,000, but less than $2,000 |
146 |
19% |
|
|
At least $2,000, but less than $4,000 |
193 |
25% |
|
|
$4,000 or more |
166 |
22% |
|
|
Organization offers health saving accounts (HSAs): |
|||
|
Respondents |
|||
|
|
Number |
Percent |
|
|
Yes |
333 |
30% |
|
|
No |
761 |
70% |
|
|
In companies with HSAs, those that contribute to Individual accounts annually: |
||
|
Respondents |
||
|
|
Number |
Percent |
|
Yes |
761 |
31% |
|
Yes, if the employee participates in a wellness program |
8 |
1% |
|
No |
379 |
68% |
|
|
Coverage |
|
Percent |
|
|
|
Individual |
Family |
Individual |
Family |
|
Less than $1,000 |
97 |
45 |
48% |
26% |
|
$1,000 to $1,499 |
55 |
43 |
27% |
25% |
|
$1,500 to $1,999 |
27 |
24 |
13% |
14% |
|
$2,000 to $2,499 |
9 |
20 |
4% |
12% |
|
$2,500 to $2,999 |
3 |
8 |
1% |
5% |
|
$3,000 or more |
12 |
32 |
6% |
19% |
|
Organization offers health reimbursement accounts (HRAs): |
||
|
Respondents |
||
|
|
Number |
Percent |
|
Yes |
307 |
29% |
|
No |
760 |
71% |
|
In companies with HRAs, amounts reimbursable: |
||||
|
|
Coverage |
|
Percent |
|
|
|
Individual |
Family |
Individual |
Family |
|
Less than $1,000 |
71 |
34 |
23% |
12% |
|
$1,000 to $1,999 |
71 |
66 |
23% |
22% |
|
$2,000 to $2,999 |
63 |
64 |
20% |
22% |
|
$3,000 to $3,999 |
29 |
36 |
9% |
12% |
|
$4,000 to $4,999 |
35 |
45 |
11% |
15% |
|
$5,000 or more |
40 |
49 |
13% |
17% |
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.