Towers Watson and the National Business Group on Health recently released their 16th annual employer survey on health purchasing decisions, a survey based on 588 employers, representing 9.2 million full-time employees across all major industry sectors, and conducted between November 2010 and January 2011.
The survey found that average total health care costs per active employee amounted to $10,387 in 2010, and that this amount is expected to rise to $11,176 per employee in 2011. Both employees and employers will bear the additional cost burden; employees’ share of total premium is expected to increase from an average of 22.9% in 2010 to 23.8% in 2011. To control spending growth, many employers have implemented new tactics in 2011, including rewarding employees for enrollment in healthy lifestyle activities and participating in community-based pilot programs, such as patient-centered medical homes. Survey data indicates that employers’ interest in quality and wellness initiatives is expected to continue into 2012.
Survey responses also indicate that emerging health reform requirements are causing significant changes in employers’ operations. When asked about changes due to the health care reform law, 81% responded that health reform has increased the administrative burden on their HR departments, 11% stated that health reform has decreased their ability to offer competitive pay increases, and 23% stated that they are less committed to offer health care benefits to retirees.
