Mid-to-large sized businesses are continually, but cautiously, exploring ways to manage their employee health costs without losing sight of the value those benefits represent internally and externally.

A survey from the Midwest Business Group on Health offers the latest evidence of this trend.

The organization polled 119 members, asking them to identify areas of greatest concern with respect to their benefits strategies. Those at the top:

81 percent are seeking better ways to increase employee engagement in their health improvement (wellness) programs;
77 percent want to encourage more employees to use preventive health services;
76 percent are looking for ways to avoid the 2018 Affordable Care Act excise tax, or Cadillac tax. But only 18 percent said they will trigger the Cadillac tax in 2018.
61 percent said managing specialty drug costs was a priority.

The main strategies for managing costs in advent of the Cadillac tax remain unchanged from other surveys: “increasing the availability of wellness programs, offering high deductible plans, adding or expanding incentives for employee wellness programs, and increasing employee cost share. Employers indicated they also plan to optimize networks for best providers and reduce benefits.”

Of less concern to these respondents:

Centers of excellent: By 2017, 56 percent plan to contract directly with a center of excellence.

Narrow networks: By 2017, 47 percent expect to offer narrow, high performance provider networks to their workers.

High deductible plans: By 2017, 54 percent of employers will offer high deductible plans. “Employers still believe HMOs and PPOs will remain viable because they want to support employees that are in lower salary tiers,” MBGH commented.

Private exchanges: 21 percent said they will consider off-loading their employees to private exchanges for health insurance. Going forward, MBGH noted, an increasing number said they will consider this option.

Outcomes-based incentives: 50 percent of self-insured employers identified outcomes-based incentives as a priority.

Cost-sharing with employees: 80 percent said they had not yet determined if they will increase benefits cost sharing by 2017, and, MBGH said, “and 21 percent have indicated they plan to remain at 70/30, with only 6 percent moving to a higher cost share of 50/50.”

Telemedicine: 46 percent cited this as a current priority for increasing access and reducing unnecessary absences in order to get care.

“To ensure they are getting the most value for their health care dollars, employers are implementing a number of key strategies to manage their company’s health benefits and taking steps to encourage their employees to better manage their health,” said Larry Boress, MBGH president and CEO. “The business community continues to believe health care benefits are an investment in their human capital, and they’re seeking effective and innovative approaches to deal with their largest expense outside of payroll.”

Instant Insights /

Employers not ready to revolutionize benefits plans

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