Sixty-seven percent of employers said controlling benefit costs is their No. 1 challenge. Their strategies for accomplishing this objective include:

Increasing employee plan contributions (54 percent).
Increasing deductibles (43 percent).
Increasing out-of-pocket maximums (36 percent).
Increasing copayments (30 percent).

Holding the line on expenses while retaining and attracting employees raises the ante for employers. According to the survey:

Retirement plans continue to shift toward a defined-contribution model, with 64 percent of respondents offering a 401(k) plan.
Of those, 70 percent match employee contributions.
Employers like wellness programs, with 44 percent of participants offering a program to their employees.
However, even with the increase in the number of employers offering a wellness program, most programs (61 percent) have a budget of less than $10,000.
Although employees often are interested in long-term care as a voluntary benefit option, 82 percent of employers do not offer this benefit.

Only 31 percent of employers surveyed have calculated the financial impact of health-care reform on their organizations, and just 10 percent have a written total rewards or strategic benefits plan with measurable objectives.

Instant Insights /

Controlling benefit costs is top concern for employers

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