2014: An Important Year to Benchmark Health Care Benefits
REDMOND, WA - April 3, 2014 - Over the past several years, health insurance has consistently consumed a larger portion of employer costs—in some situations, preempting pay increases. To defray the costs, many employers have been shifting to less expensive options for health care offerings. Given the recent attention paid to benefits management by HR professionals, combined with new legislation under the Patient Protection and Affordable Care Act and potential penalties and fees for employers, it stands to reason that executive and finan¬cial leadership will have a heightened interest in benefits deci¬sions in 2014 and beyond. Benchmarking health plan costs and practices with other employers in the external marketplace is the first step in evaluating the effectiveness of current strategies or potential changes.
The 2014 Health Care Benefits Benchmarking Survey released April 2, 2014, reports on data submissions from 154 employers representing more than 168,000 employees. Data are reported for 334 medical plans and 180 dental plans in the U.S. The information provides employers with a baseline of current health care plan costs and practices that may be used to make informed decisions regarding benefits management.
This year’s participants reported using the following cost-saving measures:
54% increased employee contribution to premium
20% increased prescription co-payment or coinsurance amounts
24% increased medical co-payment or coinsurance amounts
32% increased deductible amounts
26% increased out-of-pocket maximum amounts
14% changed the drug formulary
9% moved to self-insurance
In addition to detailed medical, dental, and vision benefits information by size and type of employer and geographic location, the survey also reports on the length of employment requirements for coverage and cost-management strategies (such as disease management, health promotion, and wellness programs).
Questionnaires were designed and distributed for this seventh edition of the Health Care Benefits Benchmarking Survey in October 2013. Participation was solicited from employers in the public, private, and nonprofit sectors, as well as government entities in the U.S. Data input was collected in the period from October 1, 2013, to February 7, 2014. The requested effective date of benefits data was January 1, 2014. The survey is available online for $389 via http://salary-surveys.erieri.com http://salary-surveys.erieri.com. For more information, contact ERI Salary Surveys at email@example.com.