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Comparing Healthcare Benefits in Indiana
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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 …

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 & Pension Defined Contribution & 401(k) Employee Stock Ownership Plan (ESOP) Flexible Spending, HRA & HSA Healthcare Actuarial ConsultingLearn more at www.nyhart.com
  • Areas of Expertise Include: Cash Balance Plan Defined Benefit & Pension Defined Contribution & 401(k) Employee Stock Ownership Plan (ESOP) Flexible Spending, HRA & HSA Healthcare Actuarial ConsultingLearn more at www.nyhart.com
  • Transcript

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