Employee health benefits will continue to be an important issue to both employers and employees in 2013. With the election behind us, employers are looking to the future and working to determine the impact that recent healthcare reform will have on their business. In 2013 businesses will work to establish a balance between working within the regulations of the Patient Protection and Affordable Care Act (PPACA) while attempting to keep the costs of employee health benefits down.
Even with the rising costs of healthcare, many employers remain committed to providing their employees with attractive and comprehensive healthcare benefits. After reviewing benefits survey data, along with the healthcare coverage trends of 2012, the following predictions can be made for 2013:
As healthcare costs have risen over the years, employers have been faced with the constant struggle of providing adequate healthcare benefits while keeping within their set budgets. According to benefits survey data, employers are budgeting with the expectation that healthcare costs will rise about 7 percent in 2013. To offset this rise in costs, many employers will raise insurance premiums by an average of 5 percent.
New Healthcare Plan Options
The majority of employers in 2013 will offer high deductible plans as a healthcare coverage option. Many of these plans will include a health savings account, allowing employees to invest money free of taxes to pay for healthcare. These plans are a significantly less expensive option for employers, leading many of them to offer incentives with the plans. Approximately 43 percent of businesses surveyed plan to offer a $500 contribution into each employee’s health savings account for selecting a high deductible health plan.
Increase in Wellness Programs
Many businesses are encouraging employees to be proactive in improving their own health. Utilizing tools like wellness programs and incentives, employees are rewarded for improving health habits to avoid costly, preventable conditions, such as diabetes, obesity and cardiovascular disease. According to benefits survey data, 61 percent of employers cited poor health habits as the largest challenge to providing affordable healthcare benefits. To counter this problem, 48 percent of employees plan on using incentives to increase participation in preventative health care programs.
These predictions, based on benefits survey data, will help assist businesses to develop the budget and plan for the changing costs of healthcare benefits for the 2013 year. For assistance determining future employee compensation, WageWatch offers cost-effective reports, including salary, wages and benefits survey data. To learn more about benefits survey data and other services provided by WageWatch, please call 480-237-6130 or contact us online.
*Data provided by the National Business Group on Health Employer Survey on Purchasing Value in Health Care.