Scenes From The Post-ACA World
It continues to be business as usual for employers planning their health benefit programs. That’s the highlight according to a new employer survey completed by the non-profit Midwest Business Group on Health (MBGH) in collaboration with The Benfield Group.
According to the study, the majority of employers responded that they will be adjusting to the “new normal,” making changes to their benefit design strategy in response to the post-Affordable Care Act (ACA) environment, but the bottom line is that they do plan to continue offering health benefits.
At the same time however, employers are taking a vital step back and reassessing the principles they’ve used in the past in offering company health benefits. They are now exploring new approaches, such as an increased focus on consumer responsibility, to create more effective strategies to improve health and manage costs now and in the near future.
The impacts of the ACA and the economic recession have only fueled employers in their reassessment the last few years. Many employers still believe that health benefits are essential to attracting the most talented employees and maintaining a productive workforce. Many employers also believe there is a positive connection between health and productivity.
In fact, more than half of employers who offer health benefits also offer some type of wellness and health management programs to their covered populations because it is “the right thing to do.” However, employers also realize that to be successful in creating a healthy and productive workforce requires that employees put their own “skin in the game.”
To accomplish this, many savvy employers are implementing a variety of value-based benefit design strategies (i.e. receiving a premium differential for completing an HRA or biometric screening) and are not only seeing a positive effect of employees taking more accountability to be healthy, but are also beginning to achieve a positive return on their investment.
The employer survey also found that 57% of responding employers currently offer consumer directed health plans (CDHP), such as health savings accounts and health reimbursement accounts, as a plan option and they indicated that this would increase to 62% in 2013 and 71% through 2018. All large employers indicated they will offer CDHPs to their covered populations by 2018. More than a quarter (29%) of all employers will make their CDHP offering their only plan available to employees by 2018.
The fact that employers are already moving toward offering CDHPs is yet another signal that they are changing their viewpoint on who should pay for healthcare. In the past, employers took on a majority of this cost, but employers are shifting this perspective and instead are having employees take on more responsibility for the cost of their care. This can have its disadvantages for those who are either of lower income or at a higher level of health risk and really depend on company-sponsored benefits. Nevertheless, it is a reality for many employers who are moving to CDHPs because it will help them better manage healthcare costs and maintain their bottom line.
Despite this shift in perspective, employers will continue to offer healthcare benefits. Though a little more than half of employers plan to make vision and/or dental coverage voluntary benefits in 2013 and this percentage will continue to rise in the future.
As employers continue to navigate the ACA and the rebounding economy, they will continue to focus on the health and well-being of their employees, albeit with additional responsibilities added to consumers. The next steps ahead for employers include making sure they are offering the ACA-required essential benefits. For both employers and consumers, a key to the future will include a shared responsibility in creating a partnership to navigate the sea of changes healthcare reform will provide.
Margaret Rehayem directs member initiatives for the Midwest Business Group on Health.
