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Infographic: Employers Planning Range of Changes to Health Care Benefits - Towers Watson
 

Infographic: Employers Planning Range of Changes to Health Care Benefits - Towers Watson

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Towers Watson’s Health Care Changes Ahead Survey of 420 organizations reveals employers plan to make moderate to significant changes to health benefit programs by 2016.

Towers Watson’s Health Care Changes Ahead Survey of 420 organizations reveals employers plan to make moderate to significant changes to health benefit programs by 2016.

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    Infographic: Employers Planning Range of Changes to Health Care Benefits - Towers Watson Infographic: Employers Planning Range of Changes to Health Care Benefits - Towers Watson Document Transcript

    • Employers Planning Range of Changes to Health Care Benefits Insights From the 2013 Health Care Changes Ahead Survey The massive scope of health care reform is ushering in a wide range of new opportunities for employers seeking to manage costs and improve worker health. While complying with the federal law tops their priorities, they are also evaluating a spectrum of solutions — new health insurance exchanges, advanced provider contracting and care delivery arrangements, and alternative health care plan designs — that will ultimately transform the employer-provided benefit landscape. Employers Continue Investment in Health Care Benefits Virtually all employers (98%) plan to continue their active medical plans for Percentage viewing subsidized health care benefits as an important part of the employee value proposition 80% 82% 72% Employers Expect to Make Moderate to Significant Changes by 2016 Employers are reevaluating their financial commitment due to rising costs and the 2018 excise tax, and will make changes between now and 2016. Active full-time employees full-time workers and have no intention of directing them to the public exchanges. 25% 42% 33% 28% 25% 47% Active part-time employees 2013 Companies Are Redefining Their Commitment to Dependents Employee premium contributions for dependent coverage are rising at a higher rate than single-only coverage, with 34% of employers increasing dependent premiums by five or more percentage points. 2014 Pre-65 retirees Greater change planned for retiree medical coverage Medicare-eligible retirees 2015 Increase of five or more percentage points for: 22% 21% Single coverage 2014 Dependent coverage 2013 34% 35% 29% 37% 36% Little to no change 38% 25% Moderate change Significant change 13% Single coverage 2013 Dependent coverage 2014 Only 14% of employees surveyed believe that the changes their employers will make as a result of health care reform will make them and their families better off. 2013 Towers WatsonGlobal Benefits Attitude Survey (completed by 5,070 U.S. workers) Employers Have More Confidence in Private Exchanges Than Public Exchanges The survey reveals a clear disparity in how employers view public and private exchanges for active full-time employees in 2015. 29% of employers report confidence that the public exchanges will provide a reliable alternative to employer-sponsored coverage. 57% of employers report confidence that the private exchanges will provide a reliable alternative to employer-sponsored coverage. Employers want to see how well the public health insurance marketplace will operate in its first year and how the broader market will respond. Employers are intrigued by the potential of private exchanges to control cost increases, reduce administrative burdens and provide greater value. Companies to Exit Medical Plan Sponsorship for Retirees For those employers that sponsor a retiree health plan, 38% plan to discontinue it for pre-65 retirees and 44% plan to discontinue it for post-65 retirees in 2015. Many of these companies will look to health exchanges to close the resulting coverage gaps in 2015 or 2016. towerswatson.com Employers Are Evaluating Private Exchange Models for Active Employees They want to see three factors before adopting a private exchange model: 95% of employers have yet to determine if they will engage a private health insurance exchange for employees and dependents in 2014 or 2015. •• Evidence that it can deliver greater value than their current self-managed model (74%) •• The actions of other large companies in their industry (56%) •• The private exchange’s ability to provide additional health care plan choices to employees (40%) 45% are considering directing pre-65 retirees to a public-exchange-based health solution. 32% are considering providing Medicare-eligible retirees with a private-exchange-based solution. About the Survey This survey was conducted in July 2013. A total of 420 midsize to large organizations across a variety of industries submitted responses. Collectively, respondents employ 8.7 million employees.