Trends and Analysis - Zywave...West 21.4% South Central 17.8% North Central 21.2% North Central...
Transcript of Trends and Analysis - Zywave...West 21.4% South Central 17.8% North Central 21.2% North Central...
- Background- Zywave Resources- Demographics and Data
- Notable Trends- Coping with Increasing Health Care Costs- The Impact of the Affordable Care Act- Shielding the Average Employee from Costs
- Broker Services Survey Results- Accessing the Resources Available
West21.4%
South Central17.8%
North Central21.2%
North Central24.2%
South Atlantic16.1%
Northeast20.5%
40,000Based on more than
employer-offered health plans
Demographics and Data
Demographics and Data
Plan Type Group Size
2.8%
2.7%
20.9%
15.2%
14.1%
44.3%
1,000+
500 - 999
100 - 499
51 -99
26 - 50
Less than 25
1.8%
9.9%
19.4%
20.1%
48.8%
Health reimbursement arrangement(HRA)
Point-of-service plan (POS)
High deductible health plan with ahealth savings account (HSA)
Health maintenance organization plan(HMO)
Preferred provider organization plan(PPO)
Demographics and DataIndustry Type 1.9%
1.0%
1.6%
1.0%
4.5%
5.3%
6.4%
11.7%
1.3%
0.4%
10.9%
4.2%
6.3%
3.2%
2.9%
2.3%
17.7%
Coping with Increasing Health Care Costs
Avg. % of premium paid by Covered Worker (Kaiser)
Health Care Cost Trends (WTW)
Coping with Increasing Health Care CostsKey Points• Employer appear to believe that employees are most sensitive to
direct cost increases (i.e., premiums)• Regardless of plan type or group size, employers are generally
moving toward plan components that expose employees to additional cost
• You may wish to work with clients to find areas where cost-shifting makes sense in order to maintain a consistent employee contribution percentage
• Employee benefits education is more important that ever when using this strategy
The Impact of the Affordable Care ActThe ACA may have accelerated plan design changes
Percent of Plans with an OOPM between $7,000 and $7,999, by Employer Size
Percent of Plans with an OOPM between $7,000 and $7,999, by Plan Type
The Impact of the Affordable Care ActKey Points• The cost-sharing limit appears to have acted as an identifiable, and
acceptable threshold and accelerated adoption of high individual deductibles and OOPMs
• If the ACA is still in place moving forward, consider using the cost-sharing limits as a common upper threshold for OOPM and adjust downward for more competitive plans.
• If the ACA is repealed and replaced, try to identify any limits that could be used in a similar manner
Shielding the Average Employee from CostsAttempts to protect the majority of employees from costs expose unhealthier employees
Shielding the Average Employee from CostsKey Points• A common strategy is to make commonly used components less
expensive but increase the cost of less-used components• When employed effectively, this strategy can be a useful tool to
keep costs down for the average employee• This strategy should be paired with attempts to make employees
healthier (i.e., wellness initiatives)
93% of consumers don’t know these 4 basic health insurance terms:1)Premium2)Deductible3)Co-pay4)Out of pocket maximum
Accessing the Health Plan Design Summary• Available in Broker Briefcase• Simply search “2016 health plan design benchmark” or 149721
Accessing the Plan Design Benchmark ToolAvailable to Zywave Partners via a direct link or the Broker Briefcase homepage
Direct Link Broker Briefcasehttps://plandesignbenchmark.zywave.com/With the direct link, you will need to log in.
Additional questions or need more [email protected]