October 2006

Workers facing new benefit options

Don’t be surprised if you find more patients using debit cards to pay for their visits next year.

According to Watson Wyatt Worldwide, a human resources consulting firm, employers will be offering their workers more financial incentives, new benefit choices, and a greater scrutiny of dependent coverage in the upcoming open enrollment season.

Tom Billet, a senior consultant with Watson Wyatt, said, “Generally, workers will see higher premiums, deductibles, and co-payments for medical and prescription drug benefits, making it even more critical for workers to review what benefits they had this year when evaluating their options for 2007.”

Some of the trends in benefits include:

• An increase in high-deduction/personal healthcare accounts, especially health savings accounts (HSAs).

• A growing use of debit/electronic payment cards to pay for doctor visits and drugs. These cards are linked to health-savings accounts.

• More health risk assessments, greater financial incentives. In return for completing a self-assessment, employers usually offer workers incentives such as financial rewards. The health risk assessment helps companies identify workers for participation in various disease-management programs.

• Greater scrutiny of dependent coverage. Many employers are paying closer attention to employees who sign up their spouses and children for health benefit coverage. Watson Wyatt estimates that, typically, between 6 percent and 8 percent of dependents enrolled in a plan are not truly eligible for coverage, but some employers have seen much higher percentages when conducting audits.

As a result, more employers are asking workers to demonstrate proof of dependency and are auditing their plans to verify that dependents are eligible.

Source: Watson Wyatt Worldwide, www.watsonwyatt.com

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