April 2007

Study: Companies to invest more in healthcare

A majority of large employers in the United States are planning to invest more in the health and welfare of their employees, according to a study conducted by Hewitt Associates, a global human resources services company.

Hewitt’s survey, which included approximately 450 major U.S. employers and covered more than 8 million employees, revealed that 63 percent plan to take more aggressive, multiyear steps to help employees improve their health by increasing education efforts, implementing condition management programs, and using data analysis and other cutting-edge programs to improve health and productivity while holding participants accountable for their behaviors. Fewer than 40 percent plan to maintain their current focus on healthcare benefits, primarily concentrating on annual cost mitigation.

According to Hewitt’s survey, most companies are not confident that employees have the appropriate skills and knowledge to make educated health care decisions. To address this issue, almost 70 percent of companies offer or plan to offer tools, resources, and/or programs to help employees better manage their health, including health risk questionnaires, decision support, and nurse lines.

According to Hewitt’s survey, companies are exploring several different options to help influence the patient-provider relationship:

Account-Based Plan Designs: More than 20 percent of companies offer or plan to offer a high-deductible health plan with a health savings account (HSA) by the end of 2007, and almost half are considering offering one at a future date. And while just 3 percent of employees elected these plans last year, most companies anticipate that enrollment will grow to 20 percent in five years. When health reimbursement arrangements (HRAs) are considered, companies anticipate enrollment in either an HSA or HRA to grow to 31 percent.

Quality Performance Information: While only 11 percent of employers currently require health plans and providers to disclose quality performance information to employees today, more than 75 percent of companies plan to do so in the future.

Evidence-Based Medicine: Almost one in five (19 percent) companies include or plan to include, by the end of the year, benefit designs based on evidence-based medicine and appropriate care protocols, such as waiving copayments for prescription drugs that are proved to be effective and appropriate to treat certain diseases. Another 60 percent are considering implementing them at a future date.

Pay-for-Performance Programs: Almost one-tenth (9 percent) of companies require or plan to require health plans to have pay-for-performance programs in place by the end of the year, and another 56 percent are considering it at a future date.

Source: Hewitt Associates, www.hewitt.com

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