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.”

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.