WASHINGTON – Large U.S. companies are expecting to pay more for their employees’ health care benefits in 2013, according to a survey released Monday. Meanwhile, many are adjusting to comply with the new health care law.
Companies are projecting an average seven-percent increase in health care spending out of their pockets, and are eyeing cost-control measures such as asking employees to pay higher premiums and encouraging them to adopting healthier lifestyles, the survey found.
The survey was conducted by the National Business Group on Health, a non-profit organization representing employers’ perspective on national health care issues among 342 U.S. companies. 82 companies that have at least 10,000 employees participated in the survey between June 10 and July 6, just before the Supreme Court upheld the Affordable Care Act.
“We are not surprised at all to find that many employers are working to moderate costs on their employees’ health care,” said Helen Darling, CEO of the National Business Group on Health, “The issue is on the top of their lists now.”
The survey found that 60 percent of employers are planning to increase the percentage of the premium paid by employees starting next year, with a majority indicating the increase would be less than five percent. In addition, many plan to increase their deductibles.
Darling warned that rising health care costs will continue to impact employers’ budgets, especially given the fact that the economy is still relatively weak. With that, Darling said it is understandable that employers are shifting the burden of costs their employees.
As the new health care law goes into effect next year, half of the survey respondents said they would eliminate annual benefit limits for their employees, and believed state-provided health insurance are a better choice for retirees.
Darling suggested that even though companies may expect higher costs, they should use a cost-sharing approach instead of a cost-shifting one. Instead of simply raising the premiums and deductibles, they should adapt to new regulations, have better plans for employees to purchase and build on-site health centers. Meanwhile, employees should hold themselves more accountable for monitoring their own health, the survey advocates.
Many companies are engaging employees in healthy lifestyles by providing financial incentives. According to the survey, among companies that provide such incentives, employees can earn a median amount of $450 next year if they participate in a wellness program that helps reduce tobacco use, BMI and cholesterol levels.
“It’s a hand-holding process,” said Darling.