This year 229 organizations participated in ASE’s 2016 Healthcare Insurance Benefit Survey.  The survey covers a wide variety of employer-sponsored health insurance benefits including practices related to both traditional and High Deductible or Consumer-Driven Health Plans.  Highlights from this year’s survey include the following:

·       The most widely used plan type among respondents this year are Preferred Provider Organization plans (PPOs), which offer employees greater flexibility with providers.  Ninety percent of the companies surveyed utilize that plan type.  Just a third of the companies (33%) surveyed use Health Maintenance Organization (HMOs) plans.

·       The portion of the healthcare premium paid by the employer, among non-unionized companies, was fairly consistent with data collected in 2015.   The median employer premium for Consumer Driven PPO plans was 80% for both employee-only and employee and family coverage, down just slightly from 82% in 2015. For Traditional PPO plans the median employer premium for both union and non-union organizations was maintained at 80%.

·       Median PPO plan deductibles, the amount employees owe for health care services before their plan begins to pay, in high-deductible plans, increased slightly compared to data collected a year ago. In 2015, the PPO plan deductible for employee-only coverage in non-unionized companies was $1,750.  That amount increased to $1,875 in 2016.  Median deductibles for employee and family coverage increased by $250 to $3,750. Changes in health deductibles among traditional plans (i.e., those without high deductibles) were mixed.  Deductibles among PPO plans decreased slightly for both employee-only and employee and family coverage.  Decreases for those plan types were between $100 and $200 for employee-only and employee and family coverage respectively.  However, among HMO plans, the median deductibles increased $250 for employee-only coverage and $500 for employee and family coverage

How are employers addressing the significant costs of providing health insurance?   To address that question, this year’s survey, asked organizations what steps they have either already taken or plan to take to reduce or contain healthcare costs to the company.  Current or planned cost containment strategies include the following:

·       Prior to 2016, the second highest cost containment strategy was to implement additional Rx Formulary Tiers. Almost 24% of respondents reported that they have already taken this step.

o   Traditional Plan-PPO: In 2015, just 22% of union organizations used 4 or 5 tiers and in 2016 that number nearly doubled.  In 2015 88% of non-union organizations reported using 3 tiers and above and in 2016, 94% reported the same.

·       A top cost containment strategy that 37% of organizations have already implemented or plan to implement was to create or expand wellness programs.

o   When it comes to unionized organizations the percentage of companies offering screening activities, preventative interventions, and health promotion all increased more than 10% from 2015.

o   When it comes to incentives for wellness activities, there was an overall increase in the percentage of union organizations offering cash or cash equivalent as opposed to a premium discount or contribution to an HSA or HRA.

·       The number one strategy that organizations planned to implement in 2016 was to increase the employee’s cost share.  Nearly 40% of organizations either increased the employee’s share prior to 2016 or plan to during this year. 

Employers seem to be adjusting their health plans and their associated expenses (i.e., premiums, deductibles, co-pays) in a manner that ensures affordability for both the employer and employee.

To obtain a copy of ASE’s 2016 Healthcare Insurance Benefit Survey, contact ASE’s Compensation and Benefits Surveys department at [email protected] or 248.353.4500. This survey is available for $225 to ASE members, and for $1,350 to non-members.