A recent survey from Willis Towers Watson revealed that over a third (37%) of U.S. employers are changing plan designs to reduce employee out-of-pocket costs at the point of service. The same percentage of employers (37%) are lowering premiums contributions for low-income workers. By 2018, the number of employers taking these steps is expected to rise to 53% and 51%, respectively.
These findings come from the 21st Annual Willis Towers Watson Best Practices in Health Care Employer Survey, completed by 600 employers in June and July 2016.
In the face of continued cost pressures, employers have gradually increased the amount that employees pay for employer-sponsored health care. Increases have come in the form of larger premium contributions, higher copays and coinsurance, health plans with higher deductibles, and surcharges for coverage for working spouses eligible for health insurance from their own employers. Now, however, more employers are becoming concerned that health care is becoming unaffordable, especially for low-wage workers.
Other actions employers are taking to improve affordability include seeding health savings accounts (HSAs) tied to account-based health plans (ABHPs) to help employees close the gap created by the higher deductibles associated with such plans. Of employers that offer ABHPs, 85% are seeding HSAs with an average seed amount of $600 per year for employee-only coverage and twice that amount for employees with family coverage.
These steps employers are designed to ensure employees’ physical and financial health and well-being as well as on-the job productivity. The number of employers taking similar steps is expected to rise significantly over the next two years.