U.S. employers expect healthcare cost increases to hold steady at 6 percent and plan to adopt consumer-directed health plans in 2010 in an effort to control cost increases, according to a survey by Watson Wyatt, a global consulting firm, and the National Business Group on Health.
The survey of 489 large U.S. employers found that the median rate of health cost increases is expected to remain at 6 percent in 2009, although this is still nearly twice the rate of inflation. The increase is the same that employers experienced in both 2007 and 2008. In 2006, healthcare costs increased by 8 percent.
"Cost increases have stabilized, but the financial crisis is causing many companies to reevaluate their health plan strategies," said Ted Nussbaum, group and healthcare practice leader at Watson Wyatt. "While large-scale changes appear unlikely, economic realities are leading companies to adopt strategies that emphasize greater personal health accountability to their workers."
While companies will be taking a close look at benefit offerings because of the recession, most do not plan major changes. A large majority of employers do not plan to delay or cancel their planned program offerings (86 percent) or changes to plan design (87 percent).
Just more than half (51 percent) of the companies surveyed now offer workers a CDHP, up from 47 percent in 2008. Another 8 percent are expected to adopt a CDHP by 2010. CDHPs are helping employers control costs - companies with at least half of their workers enrolled in a CDHP have a two-year cost trend (4.6 percent) that is 25 percent lower than non-CDHP sponsors (6.1 percent).
"Given the current economic climate, high costs are clearly top of mind for workers and their employers," said Helen Darling, president of the National Business Group on Health. "By promoting healthy habits for workers, companies can mitigate cost pressures and build a healthier, more productive workforce. Strong support from senior management and effective communication around these initiatives will help employees grow more comfortable taking greater responsibility for their health."
A full report of the study will be released in mid-March.