Service experience has more impact than cost management on employer satisfaction with their primary health insurance carrier, according to a recent study.
The J.D. Power and Associates 2010 U.S. Employer Health Insurance Plan Study found that, in general, employers express relatively low levels of satisfaction with their primary health insurance carrier. Overall satisfaction averages 611 on a 1,000-point scale.
This is even less than the already-low levels of satisfaction among health plan members surveyed. However, CIGNA, Kaiser and other regional health plans perform particularly well in the employer study.
The study examines overall satisfaction of small business owners, employer benefits administrators and HR executives with contracted health plans and pharmacy benefits managers. The study measures five key factors that affect employer satisfaction with carriers – employee plan service experience, account servicing, product offering/product design, problem resolution and cost/cost management.
"Clearly, there is plenty of ground to be gained in terms of improving the employer experience," said Rick Millard, senior director of the healthcare practice at J.D. Power and Associates. "Employers aren't just looking for cost management. As in similar industries with low satisfaction levels, cost diminishes in importance when other aspects of the service experience are improved – which could have a huge impact, given how difficult it has been for health plans to contain costs."
The survey shows that the incidence of problems with insurance carriers is relatively high, with 79 percent of employers reporting experiencing a problem or issue with their health insurance carrier during the past 12 months.
"Given the high incidence of issues requiring employers to contact their carrier, the efficiency of the problem resolution process is a highly critical aspect of their overall experience," said Millard. "More than 80 percent of employers that contact their carrier do so because they have a problem or issue to address, and for those that experience a problem, its resolution becomes the most important aspect of their overall carrier experience."
The study also found that 61 percent of employers have used their insurance carrier for five years or less. Most employers indicate that lower rates or the physician network are the most important reasons for selecting their current primary health insurance carrier.
The study is based on responses from nearly 4,800 employers, fielded online in February and March, and includes performance by carrier for Aetna, CIGNA, Humana, Kaiser, UnitedHealthcare, and WellPoint/Anthem. Aggregate performance of other regional health plans and not-for-profit Blue Cross Blue Shield licensees are also assessed for comparison purposes.