With healthcare costs rising, employees are expected to be more accountable for maintaining their own health and monitoring their expenses, says Aon Hewitt.
According to the consulting firm, overall U.S. healthcare costs are expected to rise 7% in 2012 to US$10,475 per employee, compared with US$9,792 per employee in 2011. While employers will likely continue to fund the majority of this cost, employees are projected to contribute US$2,306, on average, in 2012 to the overall healthcare premium, an increase of nearly 11% over 2011.
To help control costs, many employers are offering health savings accounts, which can be funded with employee and/or employer contributions, or health reimbursement accounts, which are funded only with employer contributions. With either type of plan, employees can access their individual account to “pay” for out-of-pocket healthcare costs, controlling how and when they use these funds. These plans typically encourage employees to use healthcare more efficiently, while still protecting against significant or catastrophic expenses. More than 50% of employers surveyed by Aon Hewitt say they offer such programs.
As well, many employers are offering tools such as health risk assessments and blood pressure and cholesterol screenings to raise awareness and increase accountability among employees and their family members. Initiatives to assist employees in addressing health risks and chronic conditions, such as programs to better manage diabetes or quit smoking, are also increasing in popularity. In many cases, employers offer incentives such as enhanced medical coverage benefits or reduced premiums to encourage employee and family member participation.
“When it comes to choosing and using their employers’ healthcare plans and programs, workers want their employers to do four things: make it easy to do, make it personal so I know how to get the best value, make it move me in the right direction, and make it meaningful, so I feel supported as I try to improve my health,” says Joann Hall Swenson, health engagement best practice leader with Aon Hewitt. “Employers that craft their health engagement strategies around these four insights will have a chance at reaching and engaging their employees, which, in turn, will lead to improved health and productivity and reduced cost.”
With new programs constantly rolling out and ever-increasing costs, it’s crucial to have your employees review their benefits plan every year.
“Healthcare needs and benefits costs can vary from year to year,” says Craig Rosenberg, Aon Hewitt’s national practice leader for health and welfare benefits administration. “When you combine that with the changing healthcare landscape, it’s critical for employees to educate themselves on their available coverage and re-evaluate their choices.”
To help plan members make effective decisions and get the best value, Aon Hewitt suggests sharing the following enrollment tips with your members.
Assess their needs
Employees should review their 2011 healthcare usage, including how much was spent out-of-pocket, the number of times they visited the doctor and the cost of daily medications. If employees participate in a flexible spending account, they should evaluate whether they contributed too little or too much based on their actual expenses. Employees should also consider which dependents they need to cover.
Actively enrol
Ensure employees understand what’s changing within the plan, such as changes to costs and plan design elements. Employees should never assume their current coverage is still the right choice, as there could be new options that better meet their needs.
Save money
Nearly three-fourths of participants in Aon Hewitt’s recent Consumer Health Mindset survey expressed concern about their ability to afford healthcare coverage in the next few years. Ensure employees know of ways to reduce benefits costs; often, employees pass up these opportunities simply because they don’t realize they are available. Such opportunities may include health/wellness incentives, healthcare spending or reimbursement accounts and flexible spending accounts. As well, employees may want to investigate whether it’s more cost-effective for their spouse or partner to enrol in coverage under their employer’s health plan.