Large companies expect to see their healthcare costs rise by an average of 7 percent in 2013, according to a report.
Research by the National Business Group on Health indicates most plan to increase the percentage of premiums covered by employees. Respondents also indicated that they hope wellness programs and consumer-driven health plans will limit the growth of employee benefit expenses. More of these large employers indicated they are committing to financial incentives that promote healthy lifestyles among their workers.
The emphasis on wellness is a change from last year, researchers note, when employers were relying more on shifting costs to workers in order to limit their own expenses. The report determined that employees will be able to save growing amounts by living healthily and participating in wellness initiatives.
"Despite keeping cost increases steady for next year, providing high quality, affordable health care remains a top priority for employers," said NBGH President and CEO Helen Darling. "HR leaders need to keep the pressure on to control health care cost increases, increase consumerism and individual accountability, use all of the tools and resources available to empower consumers to be wiser purchasers and support them to choose healthier lifestyles."
She also noted that management and benefit personnel must ensure that they are adapting their health plans, wellness initiatives and related measures to account for new or modified regulations.
Employers strive to improve effectiveness of preferred cost-containment measures
Researchers note that projections of a 7 percent increase in costs are equal to those predicted for this year but below those anticipated during the last three years. About one-third of employers are considering higher out-of-pocket maximums, with a similar percentage planning to implement higher out-of-network deductibles. Beyond that, 40 percent plan to institute higher in-network deductibles. Measures like these, they hope, will supplement the effects of premium shifts and wellness programs.
In the meantime, they are also striving to improve participation in consumer-driven health plans and wellness programs. Many are experimenting with different methods of incentivizing participation, with many attempting to ensure that employees are rewarded for results rather than just signing up.
Many of these incentives are tied to specific results, such as quitting smoking or achieving health cholesterol levels. Some employers are also using the opposite tactic and penalizing those who do not participate in wellness initiatives. These companies should be careful to ensure they do not stray outside the bounds of HR compliance and labor-related laws.
