Employers take action

Here's a rundown of some actions taken by employers this year to manage costs and enhance employee affordability.

Health plan budget boost: Two in 10 employers added dollars to their health care plan without reallocating funds from other benefits or pay. Another 30% expect to do so in the next two years.
Defined contributions: Four in 10 employers reported using a defined contribution strategy with a fixed dollar amount provided to all employees that differs by employee tier. Another 11% are planning or considering doing so in the next two years.
Employee contributions by income evaluations: The number of employers that examine employee health payroll contributions as a percent of total compensation or income as the basis for benefit design decisions is expected to more than double from 13% this year to 32% in the next two years.
Contribution banding: Nearly 30% structured payroll contributions to reduce costs for targeted groups, such as low-wage employees, or by job class. Another 13% are planning or considering doing so in the next two years.
Low-deductible plan: Three out of 10 offered a plan with low member cost sharing this year; another 7% are planning or considering doing so in the next two years.
Concierge navigation: Two in 10 offered concierge navigation, even if it requires movement from a full-service health plan to a third-party administrator. Another 25% are planning or considering doing so by 2024.
Voluntary benefits: Over a third of respondents added or enhanced voluntary benefits and vendor solutions in case of a catastrophic event. Another 27% are planning or considering doing so by 2024.

"Employers that act now to predict, plan, and implement solutions and strategies that balance employee affordability objectives with escalating prices can avoid having to take desperate measures in a rising health care cost environment," said Tim Stawicki, chief actuary for Health & Benefits at WTW.

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7 ways employers are taking action to tackle high health care costs

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