Wellness & Consumer Driven Health Care

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See how oer 12,000 other businesses across the U.S. areusng Wellness & Consumer Driven Health Plans as an effective business strategy. How does your company compare?

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Wellness & Consumer Driven Health Care

  1. 1. Data That Makes Sense and Making Sense of the Data Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  2. 2. 2009 UBA Health Plan Survey Initiative Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  3. 3. About United Benefit Advisors  140 Member Firms  Over 165 Offices nationally  1,800 Benefits Professionals  One of the Five Largest Employee Benefits Organizations in the Country Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  4. 4. About United Benefit Advisors  Serving – – nearly 40,000 Client Companies – over 5.5 Million Employees & their families – ~$16.5 Billion in Employee Benefits Expenditures Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  5. 5. Why We’re Here Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  6. 6. Top decision-maker’s concern about the cost of health care benefits with respect to: 53.0% 46.3% 47.8% 36.6% 9.5% 5.6% 0.3% 0.1% 0.8% 0.1% Corporate Costs Impact on Employees Critical Concern Significant Concern Some Concern Little Concern No Concern Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  7. 7. Increases in Health Insurance Premiums Compared to Other Indicators 1988-2008 20.0 18.0 18.0 16.0 14.0 14.0 12.9 13.9 12.0 11.2 12.0 10.9 10.0 8.5 8.2 9.2 8.0 7.7 5.3 7.3 6.0 6.1 4.0 2.0 0.8 0.0 88 89 90 93 96 99 00 01 02 03 04 05 06 07 08 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 Health Insurance Premiums Overall Inflation Workers' Earnings Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits: 1999-2007; KPMG Survey of Employer-Sponsored Health Benefits: 1993, 1996; The Health Insurance Association of America (HIAA): 1988, 1989, 1990; Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1988-2007; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey (April to April), 1988-2007. Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  8. 8. Health Care Costs Per Employee Per Year $9,000 1969 $242 $8,000 $7,000 $6,000 1979 $623 $5,000 $4,000 $3,000 1995 $3,821 $2,000 $1,000 $0 2009 $7,646 1969 1979 1995 2009 Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  9. 9. 2009 Health Care Trend – Med + RX Type of Plan 2009 Trend  Preferred Provider Organization 11.1 %  Health Maintenance Organization 10.0 %  Point-of-Service Plan 10.5 %  Consumer Driven Health Plan 10.6 %  Indemnity Plan 12.2 %  Prescription Drugs 9.8 % Source: United Benefit Advisors – Composite of Published Trends Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  10. 10. The Effects of Inflation on Medical Premiums @ 8% / 13% 8.00% Per Year 13.00% Per Year Year Single Family Single Family 2008 $4,440 $10,812 $4,440 $10,812 2011 $5,593 $13,620 $6,406 $15,601 2014 $7,046 $17,157 $9,244 $22,510 2017 $8,876 $21,613 $13,338 $32,480 2020 $11,181 $27,226 $19,245 $46,865 Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  11. 11. 2009 Health Plan Survey Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  12. 12. Survey Summary  # of Companies Participating – 12,316  # of Medical Plans Reported – 17,655 Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  13. 13. Survey Summary  # of states represented – 50 (and D.C.)  # of cities represented – ~ 3,300 Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  14. 14. Survey Summary  # of Employees – 1.9 Million  # of Total Lives – ~ 4.5 Million Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  15. 15. Key Survey Findings Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  16. 16. Wellness Programs Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  17. 17. Percent Offering Wellness by Employee Size 60% 52.5% 50% 40% 32.2% 28.9% 30% 20% 14.7% 9.0% 10% 5.4% 4.0% 0% 3 - 24 25 - 49 50 - 99 100 - 199 200 - 499 500 - 999 1000 + Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 17
  18. 18. Summary - Wellness  Wellness programs are underutilized in companies <500  Wellness Plans from 2008 to 2009 grew from 9.8% to 11.1%; a 13.3% increase.  Over ¾ (78.4%) of firms with Wellness plans use Health Risk Assessments Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  19. 19. Summary - Wellness  Over half (56.9%) of Wellness plans use Incentives: – 30.9% use Cash / 401(k) / FSA incentives – 56.9% use gift cards or health club memberships  2008 UBA ER Opinion Survey result: 49.6% said Wellness was Effective / Very Effective way to control rising costs Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  20. 20. Consumer Driven Health Care 20 Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  21. 21. Prevalence of Plan Type by Region (CDHP) 25% 23.0% 20.1% 18.8% 20% 15% 12.4% 10.8% 10% 5% 0% Northeast Southeast North Central Central West Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 21
  22. 22. % of Employers Offering CDHP by Employee Size 20% 19.7% 19.1% 18% 16.8% 15.6% 16% 14.8% 13.6% 14% 11.2% 12% 10% 8% 6% 4% 2% 0% 3 - 24 25 - 49 50 - 99 100 - 199 200 - 499 500 - 999 1000 + Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 22
  23. 23. CDHC Plan Designs  Median CDHP Deductible = $2,000 / $4,000  Median CDHP Coinsurance = 100% / 70%  Median CDHP OOP Max. = $6,000 / $12,000  Median CDHP Office Visit CoPay = $20 Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  24. 24. Consumer Driven Health Plans  High Deductible Health Plans with an HRA or HSA, are 17.0% (a 33.9% increase over the 12.6 % last year), with 15.4% of all employees now enrolled in CDHPs  Over ½ (53.8%) of CDHPs are from companies with fewer than 100 employees, with the over 1000 employee groups accounting for 6.2% of the CDHPs Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  25. 25. HRAs And HSAs Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  26. 26. Summary - CDHP  34.9% of CDHP Plans offer HRAs  68.7% offer 1st Dollar Preventative benefits  Median Employer HRA Single contribution: $1,000  65.9% of CDHPs offer HSAs  87.6% of HSA plans offer 1st Dollar Preventative  Median Employer HSA Single contribution is $417 Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  27. 27. Employer Contributions  Average HRA contributions: – $1,310 single – $2,502 family  Average HSA contributions: – $621 single – $976 family Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  28. 28. CONSUMER DRIVEN HEALTH CARE HRAs or HSAs coupled with High Deductible Health Plans (HDHPs) are effective vehicles to: Increase employee sensitivity to 78.2% 6.5% real cost of health care 15.3% Provide a financial incentive for 69.7% 13.5% EEs to manage their health 16.8% 64.7% Shift more cost to employees 16.6% 18.6% Lower health care costs, 62.0% 13.6% including premium costs 24.5% 60.9% Expand options for employees 17.8% 21.3% Strongly Agree / Agree Disagree / Strongly Disagree Don't Know Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  29. 29. CONSUMER DRIVEN HEALTH CARE HRAs or HSAs coupled with High Deductible Health Plans (HDHPs) are problematic because: The need to increase health 66.7% 15.2% education for employees 18.2% The plan design complexity for our 59.1% 16.8% employee population 24.1% EEs have limited time or interest in 54.6% 24.2% directly managing their health 21.2% 50.1% Increased HR workload 25.9% 24.0% Strongly Agree / Agree Disagree / Strongly Disagree Don't Know Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  30. 30. Comparisons of Enrollment by Plan Type By Region Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  31. 31. 5-Region Map Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  32. 32. % of Employees Enrolled by Plan Type by Region (CDHP) 25% 23.0% 19.8% 20% 14.5% 15% 11.1% 10% 4.2% 5% 0% Northeast Southeast North Central Central West Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved. 32
  33. 33. Differences by Industry Category  Many Prevention & Wellness Programs – Health Care & Social Assistance – Public Admin; Education; Utilities – Finance, Insurance & Real Estate  Few Prevention & Wellness Programs – Professional, Scientific, & Technical Services – Information, Entertainment, Food & Accomm. – Construction; Ag & Forestry; Mining; Transport Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  34. 34. Health Plan Management Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  35. 35. Which specific strategies or programs do you currently have in place or planned for next year? Increase deductibles, 49.2% coinsurance, and/or out-of- 19.8% pocket maximums 8.5% 34.8% Increase office visit / 18.9% immediate care / ER copay 11.8% 18.5% Add higher Specialty Care 12.6% Physician (SCP) copay 14.5% In Place Now Likely Next Year Would Like Someday Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  36. 36. Which specific strategies or programs do you currently have in place or planned for next year? Implement a High Deductible 11.9% 5.4% Health Plan with an HRA 17.3% Implement a High Deductible 18.1% 6.8% Health Plan with an HSA 21.3% Implement a High Deductible 3.9% 2.0% Health Plan with no HRA or HSA 7.2% Implement a HDHP with an 10.5% employer-funded medical 3.4% reimbursement plan 14.7% In Place Now Likely Next Year Would Like Someday Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  37. 37. Which health plan cost-control strategies/programs do you currently have in place or planned for next year? Increase employee share of 30.7% 27.5% premiums 12.6% Implement 24-Hour Nurse 33.9% Hotline or Patient Advocate 3.0% Service 25.6% Implement a wellness program 20.4% 13.5% with health risk assessments 38.6% Implement a chronic disease 15.9% 7.3% management program 36.0% In Place Now Likely Next Year Would Like Someday Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  38. 38. Health Plan Management Which health plan cost-control strategies/programs do you currently have in place or planned for next year? Implement tiered network 7.4% 2.7% plan 31.9% Provide an opt-out bonus for 16.3% employees or spouses waiving 2.6% coverage 26.3% Increase premiums or eliminate 7.7% coverage for spouses eligible or 5.4% covered under another plan 26.8% Implement different smoker 4.4% 5.4% vs. non-smoker premiums 46.2% In Place Now Likely Next Year Would Like Someday Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  39. 39. Effectiveness of Plan Management Strategies Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  40. 40. Rate the effectiveness for these cost-containment strategies (whether you have such a program or not): Wellness/prevention 49.6% 36.2% programs 14.2% Higher deductibles 44.5% 44.4% and/or reduced benefits 11.2% Chronic disease 41.4% 32.7% management programs 26.0% Increased employee 40.2% 47.5% premium cost-sharing 12.4% Very Effective / Effective Limited / None Don't Know Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  41. 41. Rate the effectiveness for these cost-containment strategies (whether you have such a program or not): 32.8% Consumer driven 31.7% health plans 35.5% 30.5% Tiered network 30.1% programs 39.4% Coalition 15.2% purchasing 23.4% programs 61.4% Very Effective / Effective Limited / None Don't Know Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  42. 42. Employer Predictions Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  43. 43. What do you predict will happen to health plans in the next 5 years? Costs will shift more to 86.8% employees 3.8% Consumer Driven Health Care 51.0% plans will dominate 12.1% A move to Individual coverage 56.8% and HSAs 12.9% Strongly Agree / Agree Disagree / Strongly Disagree Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  44. 44. What do you predict will happen to health plans in the next 5 years? All cost and quality data will be 47.4% directly accessible to employees 20.3% in advance of purchasing care A return to more tightly 38.1% controlled managed care plans 29.3% Smaller provider networks based 33.6% on quality and efficiency 22.0% Strongly Agree / Agree Disagree / Strongly Disagree Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  45. 45. What do you predict will happen to health plans in the next 5 years? Employers will move to a 37.2% compensation-only approach 21.3% No significant changes from 25.9% current structure 40.0% The U. S. will switch to a 7.5% Canadian-style, tax-based system 62.1% Strongly Agree / Agree Disagree / Strongly Disagree Copyright © 2008 United Benefit Advisors, LLC. All Rights Reserved.
  46. 46. Shared Wisdom… Powerful Results  Talk with us after the seminar – Representatives of Hierl Insurance Inc will be available for further discussion (920) 993-9573  Call us for more detailed, company- specific benchmarks and analysis Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  47. 47. Shared Wisdom. Powerful Results. About UBA is an alliance of the nation’s premier independent benefit advisory firms. By working collaboratively, UBA members are better positioned to help employers and employees respond more United Benefit Advisors efficiently and effectively to the challenges of an ever-changing employee benefits marketplace. By (UBA) combining diverse talents, seasoned experience, innovative technologies, and strategic partnerships, UBA Members offer employers exceptional employee benefits advisory services. In only five years, UBA has become one of the nation’s five largest employee benefits advisory organizations, with nearly 1,900 experienced benefits professionals located in 165 offices across the country. UBA Members provide employee benefits consulting, brokerage services, and best-in-class products to over 37,000 private corporations and public employers. As trusted advisors, UBA Members help their clients manage nearly $16.5 billion annually in employee benefit expenditures on behalf of nearly 5.4 million employees and their families. Visit www.benefits.com for more information. If You Believe There Has Be A Better Way To Manage Benefit Programs In Order to Get Better, Long Term Results…, You’ll Want To Spend Some Time With Us Our approach deals with a specific set of problems and will provide a clear, proactive strategy for managing your risks. You’ll learn whether you’re paying money for unnecessary coverage, or if you have an exposure(s) that’s gone undetected… and therefore not covered. We’ll show you how to About detect if your employees are engaged in the success of your company or if they’ve become Hierl Insurance Inc dissatisfied and see your company only as a source for a paycheck? If you’re experiencing high turnover, declining productivity, uncovered claims, or any other symptoms that are causing you to lose your best employees, we have the experience and proven strategies to help you turn things around. We’ll help demonstrate The Real Bottom Line ™ and how you can effectively measure the impact your programs are having on the success of your company. Sit down with us and take just 60 minutes to share your challenges and frustrations. If we believe that we can create a more effective strategy, we’ll put our full resources to work for you. Visit us at www.hierl.com, or e-mail at ssmeaton@hierl.com. Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.
  48. 48. 2009 UBA Health Plan Survey Copyright © 2009 United Benefit Advisors, LLC. All Rights Reserved.

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