SHRM/EBRI 2014 Health Benefits Survey

SHRM Survey Findings: SHRM/EBRI 2014

Health Benefits Survey

November 19, 2014

SHRM/EBRI Health Benefits Survey ©SHRM 2014 2

Key Findings

• Very few organizations expect to eliminate health care coverage in 2015. Only 1% of

organizations reported expecting to eliminate health care coverage in 2015. No government

agencies reported expecting to eliminate coverage.

• Large organizations are more likely to expect to make changes to their health plans in 2015

than small organizations. Large organizations (750 or more FTEs) were more likely to report that

they expect to make changes to their health plans in a variety of ways. In addition, small

organizations (fewer than 750 FTEs) were not significantly more likely to report they expect to make

any changes than larger organizations.

• Large organizations expect to hit the excise tax in 2018. Large organizations are more likely than

small organizations to expect to hit the excise tax in 2018. This could account for significantly more

larger organizations expecting to make changes to their health plans in 2015 to avoid the excise tax.

• PPO plans are the most common plan that is expected to hit the excise tax in 2018. Nearly

75% of organizations expect their PPO plans to hit the excise tax, more than all other plans

combined.

• Organizations do not know what they are going to do to avoid the excise tax. Nearly 30% of

organizations do not know what they will do to avoid the excise tax in 2018.

• Despite employers’ continued uncertainty surrounding health care reform and its related costs, most

organizations are not considering eliminating coverage for their employees at this time. Only 1% of

HR professionals who responded to this survey said their organization would eliminate coverage in

2015.

• Other research has shown that health care benefits are an extremely valuable recruiting tool, and

HR professionals often cite these benefits when hiring new workers or retaining existing employees.

Given the competitive nature of finding top talent at the moment, health care benefits should be

viewed as an important element of staffing management.

• Many HR professionals are already looking ahead to 2018, when an employer tax on high-cost

health plans will go into effect. This excise tax of 40% will apply to certain individual and family

thresholds on health plans and will prompt HR professionals to re-examine their health care

offerings as a means of cutting costs. Although many of the respondents to this survey (30%) said

they still don’t know what actions they would take to avoid the excise tax, very few (3.5%) said they

would eliminate health care coverage as a result.


What Do These Findings Mean for the HR

Profession?

Do You Plan to Make Any of the Following

Changes to Your Health Care Plans in 2015?


Note: n = 2,295

0.6%

1.0%

1.3%

2.6%

2.6%

3.2%

3.6%

6.7%

7.9%

26.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Adopt reference pricing

Eliminate coverage

Eliminate coverage for part-time workers

Provide an employee subsidy for coverage on theprivate exchange

Adopt a value-based insurance design

Move to private exchange

Create tiered networks

Institute spousal surcharge

Require spouses to get coverage through ownemployer

Add wellness rewards or penalties

Do You Plan to Make Any of the Following Changes to

Your Health Care Plans in 2015? (by staff size)


Note: n = 2,271

3.2%

3.6%

6.7%

7.9%

26.3%

3.1%

3.2%

5.9%

7.7%

24.1%

3.8%

5.5%

10.1%

9.4%

34.6%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%






750 or more FTEs Fewer than 750 FTEs Total


Your Health Care Plans in 2015? (by staff size,

continued)


Note: n = 2,135

0.6%

1.0%

1.3%

2.6%

2.6%

0.5%

1.1%

1.0%

2.7%

1.7%

1.4%

1.0%

2.4%

2.4%

5.8%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%


Eliminate coverage





Do You Plan to Make Any of The Following

Changes to Your Health Care Plans in 2015? (by

staff size)


Note: Only statistically significant differences are shown.

Comparisons by organization staff size

750 or more FTEs > Fewer than 750 FTEs


• Organizations with 750 or more FTEs are more likely than organizations with fewer than 750 FTEs to make the

following changes to health care plans in 2015:

• Institute spousal surcharge.

• Eliminate coverage for part-time workers.

• Adopt a value-based insurance design (VBID).

• Adopt reference pricing.

• Create tiered networks.

• Add wellness rewards or penalties.


U.S. Census Bureau Regions

Do You Plan to Make Any of the Following Changes

to Your Health Care Plans in 2015? (by region)


Note: n = 2,264

3.2%

3.6%

6.7%

7.9%

26.3%

3.9%

5.1%

7.3%

7.8%

28.7%

4.2%

3.7%

6.8%

8.0%

27.9%

2.6%

2.4%

8.1%

10.9%

25.9%

1.6%

4.0%

4.4%

3.3%

20.7%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%






West Midwest South Northeast Total


Your Health Care Plans in 2015? (by region,

continued)


Note: n = 2,279

0.6%

1.0%

1.3%

2.6%

2.6%

0.5%

1.0%

0.7%

5.1%

3.6%

0.7%

1.0%

0.9%

1.8%

3.0%

0.5%

1.6%

1.5%

2.8%

2.6%

0.7%

0.2%

2.1%

1.2%

1.2%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%


Eliminate coverage







(by region)



Comparisons by region

South

Midwest> West


• Organizations in the South and Midwest are more likely than organizations in the West to require spouses to get

health care coverage through their own employer.

• Organizations in the Northeast are more likely than organizations in the South and West to provide an employee

subsidy for coverage on the private exchange.


Northeast >South

West



(by region)




South > West


• Organizations in the South are more likely than organizations in the West to add wellness rewards or penalties.


Your Health Care Plans in 2015? (by sector)


Note: n = 2,279

3.2%

3.6%

6.7%

7.9%

26.3%

2.8%

2.5%

6.9%

6.3%

27.0%

3.7%

3.5%

6.4%

8.2%

25.3%

2.7%

4.4%

6.7%

8.9%

27.5%

1.6%

3.8%

7.7%

4.9%

27.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%






Government Nonprofit Privately owned for-profit Publicly owned for-profit Total

Do You Plan to Make Any of The Following Changes to

Your Health Care Plans in 2015? (by sector, continued)


Note: n = 2,279

0.6%

1.0%

1.3%

2.6%

2.6%

0.6%

0.9%

1.3%

0.9%

3.8%

0.6%

1.2%

1.2%

3.1%

2.4%

0.4%

1.1%

1.4%

2.5%

2.5%

1.6%

0.0%

0.5%

1.6%

2.7%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%


Eliminate coverage





Do You Plan to Make Any of The Following Changes to

Your Health Care Plans in 2015? (by business activity)


Note: n = 2,264

3.2%

3.6%

6.7%

7.9%

26.3%

2.7%

3.2%

5.9%

6.9%

19.7%

2.8%

2.8%

8.7%

9.0%

29.2%

3.3%

4.0%

6.1%

7.6%

26.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%






Services Manufacturing Consulting Total


Your Health Care Plans in 2015? (by business activity,

continued)


Note: n = 2,264

0.6%

1.0%

1.3%

2.6%

2.6%

0.5%

2.1%

1.6%

4.3%

2.1%

1.0%

1.0%

1.0%

2.6%

2.5%

0.4%

0.8%

1.4%

2.3%

2.8%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%


Eliminate coverage






Your Health Care Plans in 2015? (by business activity)



Comparison by business activity

Manufacturing > Consulting

Comparison by business activity

• Manufacturing organizations are more likely than consulting organizations to add wellness rewards or penalties.

Do You Expect Your Organization to Hit the Excise

Tax in 2018?


Note: n = 1,803

85%

15%

No Yes

Do You Expect Your Organization to Hit the

Excise Tax in 2018? (by staff size)


Note: n = 1,713

15.0%

13.2%

23.9%

85.0%

86.8%

76.1%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

Total

Fewer than 750 FTEs

750 or more FTEs

Yes No


Tax in 2018? (by staff size)



Comparison by organization staff size

750 or more FTEs > Fewer than 750 FTEs

Comparison by organization staff size

• Organizations with 750 or more FTEs are more likely than organizations with fewer than 750 FTEs to expect to hit

the excise tax in 2018.


Tax in 2018? (by region)


Note: n = 1,791

15.0%

18.8%

13.9%

13.7%

14.5%

85.0%

81.2%

86.1%

86.3%

85.5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

Total

Northeast

South

Midwest

West

Yes No


Tax in 2018? (by sector)


Note: n = 1,791

15.0%

18.7%

12.9%

13.1%

27.5%

85.0%

81.3%

87.1%

86.9%

72.5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

Total

Publicly owned for-profit

Privately owned for-profit

Nonprofit

Government

Yes No


Tax in 2018? (by sector)



Comparison by sector

Government >Privately owned for-profit

Nonprofit


• Government agencies are more likely than privately owned for-profit or nonprofit organizations to expect to hit the

excise tax in 2018.

Do You Expect Your Organization to Hit the

Excise Tax in 2018? (by business activity)


Note: n = 1,776

15.0%

10.4%

14.2%

15.7%

85.0%

89.6%

85.8%

84.3%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

Total

Consulting

Manufacturing

Services

Yes No

Which Plan(s) Do You Expect to Hit the Excise

Tax?


Note: n = 249

1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Other

Indemnity (fee for service)

Exclusive provider organization (EPO)

Consumer-driven health plan

Point of service (POS)

Health maintenance organization (HMO)

Preferred provider organization (PPO)


Tax? (by staff size)


Note: n = 239

1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

1.8%

1.2%

3.6%

7.7%

19.5%

19.5%

72.2%

1.4%

1.4%

7.1%

7.1%

11.4%

17.1%

80.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

Other









Tax? (by region)


Note: n = 246

1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

5.6%

1.9%

11.1%

3.7%

31.5%

18.5%

63.0%

1.2%

2.3%

2.3%

11.6%

17.4%

15.1%

73.3%

0.0%

0.0%

3.2%

9.5%

11.1%

11.1%

81.0%

0.0%

0.0%

4.7%

0.0%

9.3%

34.9%

83.7%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

Other









Tax? (by region)




West >South

Midwest


• Organizations in the West are more likely than organizations in the South or Midwest to expect HMO plans to hit the

excise tax.

• Organizations in the Northeast are more likely than organizations in the Midwest and West to expect POS plans to

hit the excise tax.


Northeast >Midwest

West


Tax? (by sector)


Note: n = 246

1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

2.8%

2.8%

2.8%

13.9%

8.3%

5.6%

80.6%

0.9%

0.9%

7.8%

7.0%

18.3%

15.7%

75.7%

1.8%

3.6%

5.4%

23.2%

21.4%

67.9%

5.1%

5.1%

15.4%

35.9%

74.4%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

Other









Tax? (by sector)




Government >Privately owned for-profit



• Government agencies are more likely than privately owned for-profit or publicly owned for-profit organizations to

expect HMO plans to hit the excise tax.


Tax? (by business activity)


Note: n = 244

1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

13%

20%

67%

2%

7%

12%

15%

18%

73%

2%

1%

5%

5%

18%

21%

75%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Other








What Actions, if Any, Will You Take to Avoid the

Excise Tax?


Note: n = 170

29.4%

16.5%

10.6%9.4%

4.7% 4.7%3.5% 3.5%

2.4%

15.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%


Demographics

Demographics: Organization Industry

35Note: n = 3,329. Total number of respondents and percentage for this question exceeded the overall sample size due to multiple response options.

Percentage

Services—professional, scientific, technical 20%

Health care, social assistance 17%

Manufacturing (durable goods) 14%

High-tech 13%

Consulting 12%

Business support services 11%

Finance 10%

Manufacturing (nondurable goods) 9%

Retail/wholesale trade 8%

Government/public administration—state/local 8%

Educational services 7%

Publishing, broadcasting, other media 6%

Religious, grant-making, civic, professional and similar organizations 6%

Transportation, warehousing 6%

SHRM/EBRI Health Benefits Survey ©SHRM 2014

Demographics: Organization Industry (continued)

36

Note: n = 3,329. Total number of respondents and percentage for this question exceeded the overall sample size due to multiple response options.

Percentage

Construction, mining, oil and gas 4%

Insurance 4%

Services—accommodation, food and drinking places 4%

Arts, entertainment, recreation 3%

Utilities 3%

Telecommunications 3%

Real estate, rental, leasing 3%

Repair and maintenance 3%

Association—professional/trade 1%

Biotech 1%

Pharmaceutical 1%

Waste management and remediation services 1%

Government/public administration—federal 1%


Demographics: Organization Sector


Note: n = 3,302. Percentages do not equal 100% due to rounding.

53%

23%

16%

9%

Privately owned for profit

Nonprofit


Government

Demographics: Organization Staff Size


Note: n = 3,031. Percentages do not equal 100% due to rounding.

37%

38%

17%

8%

1%

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999

25,000 or more employees

Demographics: Region


Note: n = 3,289.

38%

26%

18%

18%

South

Midwest

West

Northeast

Demographics: Business Activity


Note: n = 3,277.

65%

26%

9%

Services

Manufacturing

Consulting

Demographics: Organizational Level


Note: n = 3,190.

76%, Corporate (companywide)

24%, Business unit/work location

42

Survey Methodology

• Response rate = 14%

• 3,329 HR professionals from a randomly selected sample of SHRM’s membership

• Margin of error +/- 5%

• Survey fielded February 4 to April 7, 2014


For more survey/poll findings, visit shrm.org/surveys

For more information about SHRM’s Customized Research Services,

visit shrm.org/customizedresearch

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About SHRM Research

Project leader:

Andrew Mariotti, senior researcher, SHRM Research

Project contributors:

Steven Hyde, research coordinator, SHRM Research

Joseph Coombs, senior analyst, SHRM Research

Copy editor:

Katya Scanlan, SHRM Knowledge Center


http://www.shrm.org/surveys

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SHRM

Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

EBRI

The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in Washington, DC, that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby and does not take policy positions. The work of EBRI is made possible by funding from its members and sponsors, which include a broad range of public, private, for-profit and nonprofit organizations. For more information go to www.ebri.org or www.asec.org


About SHRM and EBRI

SHRM/EBRI 2014 Health Benefits Survey

Health & Medicine

Transcript of SHRM/EBRI 2014 Health Benefits Survey