Survey Sees Shift In Health Plan Approaches
About two of every three employers will move away from a traditional “managed trend” approach to their employee health plans to one that will require employees to become more proactive with their health care planning, according to a survey.
The survey, conducted by Aon Hewitt, which provides insurance and human resources services, found that nearly 94 percent of nearly 800 surveyed companies will continue to offer health benefits to their employees over the next three to five years, but that market changes will change how employers offer health insurance.
"The health-care marketplace is becoming increasingly complex. New models of delivery, new approaches to managing health, and new compliance requirements are challenging employers to think differently about their role in 'owning' health insurance responsibilities for employees and their dependents," said John Zern, an executive vice president with Aon Hewitt. "Employers are staying in the game, but they are taking bold and assertive steps to achieve more effective results—and they are doing so at a faster pace than we've seen in prior years."
For example, the survey found that in the next three to five years, almost 40 percent of employers expect to migrate toward a "house money/house rules" approach. Under this model, employers may reserve a portion of their health care dollars for those employees who exhibit good health behaviors or who can show measurable progress toward their health goals.
The survey also found that the amount employers spend on health care has increased 40 percent in the past six years to approximately $8,800 per employee. Meanwhile, employee premium and out-of-pocket costs increased 64 percent to almost $5,000 per year.
Aon Hewitt estimates that health care costs for both employers and employees will continue to rise 8 percent to 9 percent per year “for the foreseeable future.” Worsening population health issues, including obesity, smoking and failure to comply with medications, are expected to significantly contribute to the rapid rise in health care costs, the company said.
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