How do your healthcare benefits compare?<br />A look a the 2011 Indiana Healthcare Benefit Survey<br />Presented by Randy ...
Randy Gomez, FSA<br />Senior Healthcare Actuary<br />randy.gomez@nyhart.com| (317) 845-3595<br />Qualifications or certifi...
Why would an actuarial firm conduct this survey?<br />
<ul><li>Structure of Survey
Prevalence of Health Benefit Offerings
Cost Trends
Design Features</li></ul>3<br />Agenda<br />
How was the study conducted?<br />
Structure of Survey<br /><ul><li>Data was provided by three survey partners and Nyhart
215 employers and more than 350 medical and 220 dental plans
Results by region, entity size and industry
Focus was on medical and dental benefits
Cost trends on total cost, employee contributions and employer subsidy
Plus comparison of 2010 to 2011 for 218 out of 356 health plans
Design features surveyed were
Deductibles
Out of pocket limits
Coinsurance
Copayments
Rx design </li></ul>5<br />
Prevalence of Benefit Offerings<br />6<br />Number of Medical Options Offered<br />Choice is a good thing<br /><ul><li>80%...
Central region and larger employers are leading the way in use of high deductible plans</li></li></ul><li>Cost  Trends<br ...
Average cost of single coverage increased 6.9% and 8.1% for family coverage
Year to year comparison is based on 228 medical plans</li></li></ul><li>Cost  Trends<br />10<br />2011 Medical Employee Co...
Cost  Trends<br />11<br />2010 to 2011 Change in Medical Employee Contributions<br /><ul><li>Single coverage contributions...
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Comparing Healthcare Benefits in Indiana

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How does your company’s healthcare benefits compare to your competitors and other employers who want to recruit the best talent in Indiana? Healthcare actuary Randy Gomez will review the results of the 2011 Indiana Healthcare Benefits Survey and give employers across industry, workforce size and regional geography a snapshot of trends in healthcare benefits. Attendees will see what has shifted in benefits for 2011 from prior years and get a better understanding of how to build a competitive benefit that is still cost effective.

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  • Because rates are averaged over two years, it will take a couple of years for costs to declinePlans will likely see high requirements drop quickly to zero within a few years of rates increasing
  • Areas of Expertise Include: Cash Balance Plan Defined Benefit &amp; Pension Defined Contribution &amp; 401(k) Employee Stock Ownership Plan (ESOP) Flexible Spending, HRA &amp; HSA Healthcare Actuarial ConsultingLearn more at www.nyhart.com
  • Areas of Expertise Include: Cash Balance Plan Defined Benefit &amp; Pension Defined Contribution &amp; 401(k) Employee Stock Ownership Plan (ESOP) Flexible Spending, HRA &amp; HSA Healthcare Actuarial ConsultingLearn more at www.nyhart.com
  • Comparing Healthcare Benefits in Indiana

    1. 1. How do your healthcare benefits compare?<br />A look a the 2011 Indiana Healthcare Benefit Survey<br />Presented by Randy Gomez, FSA<br />www.nyhart.com<br />Copyright 2011. All Rights Reserved.<br />
    2. 2. Randy Gomez, FSA<br />Senior Healthcare Actuary<br />randy.gomez@nyhart.com| (317) 845-3595<br />Qualifications or certifications:Enrolled Actuary; Society of Actuaries Fellow; Member of the American Academy of Actuaries.<br /> <br /> <br />
    3. 3. Why would an actuarial firm conduct this survey?<br />
    4. 4. <ul><li>Structure of Survey
    5. 5. Prevalence of Health Benefit Offerings
    6. 6. Cost Trends
    7. 7. Design Features</li></ul>3<br />Agenda<br />
    8. 8. How was the study conducted?<br />
    9. 9. Structure of Survey<br /><ul><li>Data was provided by three survey partners and Nyhart
    10. 10. 215 employers and more than 350 medical and 220 dental plans
    11. 11. Results by region, entity size and industry
    12. 12. Focus was on medical and dental benefits
    13. 13. Cost trends on total cost, employee contributions and employer subsidy
    14. 14. Plus comparison of 2010 to 2011 for 218 out of 356 health plans
    15. 15. Design features surveyed were
    16. 16. Deductibles
    17. 17. Out of pocket limits
    18. 18. Coinsurance
    19. 19. Copayments
    20. 20. Rx design </li></ul>5<br />
    21. 21. Prevalence of Benefit Offerings<br />6<br />Number of Medical Options Offered<br />Choice is a good thing<br /><ul><li>80% of employers offer a single dental option</li></li></ul><li>Prevalence of Benefit Offerings<br />7<br />Type of Plans Offered<br /><ul><li>High deductible plans are here to stay
    22. 22. Central region and larger employers are leading the way in use of high deductible plans</li></li></ul><li>Cost Trends<br />8<br />2011 Medical Cost of Coverage<br /><ul><li>Dental cost of coverage is $28 for single coverage and $94 for family coverage</li></li></ul><li>Cost Trends<br />9<br />2010 to 2011 Change in Medical Cost of Coverage <br /><ul><li>Results are based information for employers providing 2010 and 2011 data
    23. 23. Average cost of single coverage increased 6.9% and 8.1% for family coverage
    24. 24. Year to year comparison is based on 228 medical plans</li></li></ul><li>Cost Trends<br />10<br />2011 Medical Employee Contributions<br />Results as % of cost<br />Results as a dollar amount<br />
    25. 25. Cost Trends<br />11<br />2010 to 2011 Change in Medical Employee Contributions<br /><ul><li>Single coverage contributions increased $21.34 per month
    26. 26. Family coverage contributions increased $113.15 per month
    27. 27. Year to year comparison is based on 218 medical plans</li></li></ul><li>Cost Trends<br />12<br />2011 Medical Employer Subsidy<br />Results as % of cost<br />Results as dollar amount<br />
    28. 28. Cost Trends<br />13<br />2010 to 2011 Change in Employer Subsidy<br /><ul><li>Average employer subsidy for single coverage increased 2.5% and decreased 0.7% for family coverage
    29. 29. Year to year comparison is based on 218 medical plans</li></li></ul><li>Cost Trends<br />14<br />Cost Management Strategies<br /><ul><li>Reduce benefits or increase employee contributions?
    30. 30. Newer methods being used
    31. 31. Spousal carve-out for working spouses
    32. 32. Dependent audits
    33. 33. Onsite clinics</li></li></ul><li>Cost Trends<br />15<br />Employer Account-Based Subsidy for HSA Plans<br />The average HSA/HRA contribution is $727 for single coverage and $1,355 for family coverage if only counting those that make a contribution.<br />
    34. 34. Design Features<br />16<br />Medical Deductible and OOP Limits<br /><ul><li>Large difference in deductible by comparing traditional and high-deductible plans
    35. 35. Difference is reduced by closer out of pocket limits</li></li></ul><li>Design Features<br />17<br />Medical Coinsurance<br /><ul><li>80% coinsurance level is still the most common design for traditional (67% of plans) and HRA plans (69%)
    36. 36. 100% coinsurance is used most frequently for HSA plans (56%)</li></li></ul><li>Design Features<br />18<br />Dental Plans<br /><ul><li>The most common features for dental plans are
    37. 37. $50 deductible per person
    38. 38. $1,000 annual maximum benefit
    39. 39. $1,000 lifetime orthodontia limit
    40. 40. 100% coinsurance for preventive services
    41. 41. 80% for basic services
    42. 42. 50% for major services and orthodontia</li></li></ul><li>Design Features<br />19<br />Office Visit Copayment Design<br />Primary Care Visits<br />Specialist Visits<br />
    43. 43. Design Features<br />20<br />Rx Copayment Designs <br /><ul><li>Results are shown for prescriptions dispensed in a retail setting</li></ul> The number of plans changes because not all 203 plans using copayments for generic drugs also use a copayment design for brand name drugs.<br />
    44. 44. How will a healthcare actuary, use the results from this survey?<br />
    45. 45. ANY QUESTIONS?<br />This concludes our discussion<br />
    46. 46. So Where is the Peak?<br />Looking for more benefit presentations?<br />Register for upcoming educational events on pensions, 401(k), healthcare and other actuarial and employee benefits topics at:<br />www.nyhart.com/events/<br />
    47. 47. ACTUARY &EMPLOYEE BENEFITS<br />Established in 1943, Nyhart is an ESOP with 84 employees and offices in Indianapolis, Chicago, Atlanta and Kansas City. <br />Areas of Expertise Include:<br /><ul><li> Cash Balance Plan
    48. 48. Defined Benefit & Pension
    49. 49. Defined Contribution & 401(k)
    50. 50. Employee Stock Ownership Plan
    51. 51. Flexible Spending, HRA & HSA
    52. 52. Healthcare Actuarial Consulting</li></ul>Learn more at www.nyhart.com<br />
    53. 53. ACTUARY &EMPLOYEE BENEFITS<br />16 Actuaries Consulting In 48 States.<br />Nyhart is one of the nation’s largest independent actuarial and employee benefit firms, consulting to and administering the plans for clients with more than $14 billion in assets. Our team of benefit advisers deliver personalized analysis and recommendations, translating complex calculations and issues into common language that enables corporations, associations, churches and governments to effectively manage their retirement and health care benefits.<br />

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