Healthcare Trends Institute: Benefits Trends to Watch in 2014


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If you missed our most recent webcast, Healthcare Benefits Trends to Watch in 2014 featuring insights and analysis from leaders at Microsoft U.S. Health and Kaiser Permanente, you're in luck.

Healthcare Trends Institute (HTI), a leading research organization compiling the top news and analysis regarding both Healthcare Reform and Defined Contribution, has released the slideshow covering the discussion from this webcast.

Part of HTI's quarterly HealthChange web series, this webcast featured analysis from leaders in the healthcare field.

Featured in this webcast were the following:
-Shajmil Smith, Executive Director of Product Program Services, National Product Management, Kaiser Permanente
-Sam Robinson, Health Plan National Director, Microsoft Health and Life Sciences.
-Members from our own advisory board

To listen to the full report and insight, follow the link ( and download the full review.

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Healthcare Trends Institute: Benefits Trends to Watch in 2014

  1. 1. © 2014. Healthcare Trends Institute. All Rights Reserved. 1 2/4/14 Healthcare Benefits Trends to Watch in 2014 Webcast
  2. 2. © 2014. Healthcare Trends Institute. All Rights Reserved. 2 Today’s Agenda ü  Healthcare Benefits Trends to Watch in 2014 is part of the Healthcare Trends Institute’s quarterly HealthChange™ Web Series ü  We will cover several healthcare benefits topics including CDHP, exchanges, wellness plans, health IT, and more ü  Overview of trends from the 2013 Healthcare Benefits Trends Benchmark Study from Tiffany Wirth, Executive Director, HTI ü  Expert panel includes Healthcare Trends Institute Editorial Advisory Board members : ü  Shajmil Smith, Executive Director of Product Program Services and Solutions, National Product Management, Kaiser Permanente ü  Sam Robinson, National Director, U.S. Health Plan Industry, Microsoft Health and Life Sciences
  3. 3. © 2014. Healthcare Trends Institute. All Rights Reserved. 3 2013 Healthcare Benefits Trends Benchmark Study ü  Polled over 300 HR executives, benefit managers, and other benefit decision-makers across the US ü  Conducted Fall of 2013 (September-October) ü  Company size ranged from less than 50 full-time employees, to more than 2,500 ü  Variety of of industries represented including manufacturing, government, technology, and finance & insurance ü  Surveyed topics included employee and health benefits, defined contribution, public and private health insurance exchanges, and wellness programs
  4. 4. © 2014. Healthcare Trends Institute. All Rights Reserved. 4 Study Highlights ü  The majority of respondents (59.4%) indicated they were somewhat to very familiar with Defined Contribution Plans (DCPs) as they relate to health benefits ü  Of those respondents (36.1%)who indicated they were interested in DCPs for the future, 55.8% reported they were considering for 2015 followed by 26.9% in 2016, and 17.3% indicated considering DCPs before the end of 2014 ü  62.1% somewhat to very familiar with public exchanges and 55.5% somewhat to very familiar with Private exchanges ü  Of the respondents indicating they were somewhat to very familiar with exchanges, over half (51.3%) indicated they believed exchanges will help employees make more cost- conscious benefit decisions as well as offer a wider array of options for benefit plans. ü  43.9% of companies surveyed are already using some kind of healthy lifestyle incentive/ program, while 22.6% are considering for the future. ü  To promote positive health outcomes, 61% of companies offer at least one wellness program and 43% offer employees the opportunity for health risk assessment.
  5. 5. © 2014. Healthcare Trends Institute. All Rights Reserved. 5 Study Key Trends ü  Ongoing cost concerns among employers of all sizes will continue to spur change both in the form of defined contribution plans and the use of health insurance exchanges. ü  Most employers are interested in learning more about DCPs for the future supporting the shift away from a traditional defined benefit model to manage employee healthcare benefits and control costs. ü  Overall, employers are more familiar with public exchanges than private exchanges. This may be due to the October 1 launch of the Federal Insurance Marketplace, which coincided with survey data collection. As most employers surveyed provide group coverage, the awareness of public exchanges may not be as important to these respondents. ü  Because DCPs are starting to gain ground among employer groups, awareness of private exchanges is expected to grow in correlation with DCP use in companies. ü  We can expect an increase in the number of companies offering at least one wellness program or health initiative as ACA wellness incentives go into effect in 2014.
  6. 6. Emerging Benefit Trends for a Post-Reform Healthcare Market Shajmil Smith, Executive Director in National Product Management Kaiser Permanente February 4, 2014
  7. 7. Contents Market Context Emerging Trends Conclusion 7
  8. 8. Market Context: Impacts from the Affordable Care Act and the continued pressure to control costs are driving changes across every sector of the healthcare marketplace Source: Strategic Health Perspectives, 2013 8 Response to changing healthcare market (more costs, risk, and change) Shift to retail healthcare marketplace New employee benefit strategies Continued focus on ACA implications Focus on consumer engagement and wellness   Overarching slowdown in revenue growth across entire industry   Confidence in public and private exchanges increasing and defined contribution taking shape   Employers continue movement to narrow Networks, CDHPs, and strategies that reduce coverage for certain populations   Continued focus on rewarding healthy behavior and increasing consumer engagement
  9. 9. Emerging Trends: Consumer Directed Health Plans are expected to continue to grow 9   Enrollment in CDHP’s continue to increase, with an additional focus on CDHC as a Total Replacement Strategy   While only 10% of employers have moved to a total replacement strategy for CDHC, another 44% are expected to move in in this direction over the next 3 – 5 years   Additionally, where only 5% of employers require employees to contribute to their own HSA as prerequisite to earning a match contribution, more employers Source: Mercer’s National Survey of Employer-Sponsored Health Plans Aon Hewett 2013 Health Care Survey
  10. 10. Emerging Trends: Companies are using a variety of strategies to contain insurance costs 10 §  Continuing to increase co-pays/deductibles. Movement to CDHPs §  Using narrow networks/ACOs to lower rate without or in addition to cutting benefits §  Employers offering Medicare Group coverage are cutting retiree coverage or moving to a Connector §  Dependents, early retirees, and part time employees to be increasingly squeezed out of coverage §  A growing number of employers are shifting to defined contribution models and the use of private exchanges to deliver health insurance 26% 45% 59% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 “My Company is Actively Exploring Ways to Get Out of Providing Health Insurance to our Employees” (% Strongly Agree or Somewhat Agree) Source: 2013 Strategic Health Perspectives Report
  11. 11. Emerging Trends: Companies are changing the way they approach providing healthcare Source: Strategic Health Perspectives, 2013 11 Base: All Employer Health Benefit Decision Makers (N=313) Q910: Do you provide health insurance benefits or some type of financial contribution towards health costs to any of your employees? Q911: Which health benefit do you currently offer to your employees? Q1401: Assuming the ACA remains intact, what is your future plan for health insurance benefits for your employees? Please estimate what your company will be doing in 2015 and in 2020.
  12. 12. Emerging Trends: Alternative approaches to delivering care provide opportunities to engage consumers in a cost-efficient way 12 •  According to the 2013 Kaiser Family Foundation Report, 35% of firms offering health benefits stated that wellness programs would be very effective at containing health insurance costs, more than any other strategy •  Among firms offering health benefits, over half (56%) cover care received at retail clinics in the plans with the largest enrollment. Of those, 17% offer a financial incentive
  13. 13. Conclusion §  Existing strategies such as movement toward CDHP’s, focus on wellness and healthy behavior, and narrowing healthcare coverage, will continue to provide opportunities to manage costs §  A shift towards a more retail-oriented healthcare marketplace is also emerging as a strategy that provides consumer choice and cost- efficiency opportunities §  Post Reform, employers will need to execute strategies that respond to the impending ACA implications, manage costs, and increase consumer engagement 13
  15. 15. Megatrends  that  will  dominate  the  next   decade of CIOs see mobile as most disruptive technology over next decade 70% of all new application development target a mobile form factor >1/3   Today   57%of enterprises will be invested in enterprise social by 2014 Social networking will follow not just people but also appliances, devices and products >70%of CIOs will embrace a cloud-first strategy by 2016 of organizations planned to increase public cloud spending in 2013 54%   Spending on Big Data: Percent of digital universe tagged: 3%   (2020) 33%   (today ) $10 billon 2013 > $20 billion 2016 zettabytes in 2013 4  50%   From 2012 Total digital content will grow =  
  16. 16. Consumer  Engagement Engage  Ac3vate   Having  the  mo#va#on,   knowledge,   confidence,  and   capabili#es  to  take  a   role  in  managing  your   health   Ac#ons  that  people   take  for  their  health   and  to  benefit  from   care.  
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  20. 20. © 2014. Healthcare Trends Institute. All Rights Reserved. 21 About the Institute Institute Programs include: ü  HealthChange™ Educational Web Series ü  HealthDifference™ Awards (Launching March 15, 2014) ü  Institute membership ü  Healthcare Trends E-newsletter ü  Defined Contribution Today E-newsletter The mission of the Healthcare Trends Institute is to provide the latest information, news, education, resources and insights into the rapidly changing healthcare environment. This site will cover a range of topics including healthcare and employee benefits, health exchanges, insurance, and related areas of interest. Tiffany Wirth, Executive Director Tiffany Wirth is Executive Director of the Healthcare Trends Institute. She also serves as Director of Marketing at Evolution1™. Healthcare Trends Institute 4324 20th Avenue, SW, Ste. 200, Fargo, ND 58103 P: 701.499.7215 E:
  21. 21. © 2014. Healthcare Trends Institute. All Rights Reserved. 22