shrm survey findings: shrm/ebri 2014 health benefits survey november 19, 2014

SHRM Survey Findings: SHRM/EBRI 2014 Health Benefits Survey

November 19, 2014

SHRM/EBRI Health Benefits Survey ©SHRM 2014 2

Key Findings

• Very few organizations expect to eliminate health care coverage in 2015. Only 1% of organizations reported expecting to eliminate health care coverage in 2015. No government agencies reported expecting to eliminate coverage.

• Large organizations are more likely to expect to make changes to their health plans in 2015 than small organizations. Large organizations (750 or more FTEs) were more likely to report that they expect to make changes to their health plans in a variety of ways. In addition, small organizations (fewer than 750 FTEs) were not significantly more likely to report they expect to make any changes than larger organizations.

• Large organizations expect to hit the excise tax in 2018. Large organizations are more likely than small organizations to expect to hit the excise tax in 2018. This could account for significantly more larger organizations expecting to make changes to their health plans in 2015 to avoid the excise tax.

• PPO plans are the most common plan that is expected to hit the excise tax in 2018. Nearly 75% of organizations expect their PPO plans to hit the excise tax, more than all other plans combined.

• Organizations do not know what they are going to do to avoid the excise tax. Nearly 30% of organizations do not know what they will do to avoid the excise tax in 2018.


• Despite employers’ continued uncertainty surrounding health care reform and its related costs, most organizations are not considering eliminating coverage for their employees at this time. Only 1% of HR professionals who responded to this survey said their organization would eliminate coverage in 2015.

• Other research has shown that health care benefits are an extremely valuable recruiting tool, and HR professionals often cite these benefits when hiring new workers or retaining existing employees. Given the competitive nature of finding top talent at the moment, health care benefits should be viewed as an important element of staffing management.

• Many HR professionals are already looking ahead to 2018, when an employer tax on high-cost health plans will go into effect. This excise tax of 40% will apply to certain individual and family thresholds on health plans and will prompt HR professionals to re-examine their health care offerings as a means of cutting costs. Although many of the respondents to this survey (30%) said they still don’t know what actions they would take to avoid the excise tax, very few (3.5%) said they would eliminate health care coverage as a result.

What Do These Findings Mean for the HR Profession?


SHRM/EBRI 2014 Health Benefits Survey


Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015?

Note: n = 2,295

Adopt reference pricing

Eliminate coverage

Eliminate coverage for part-time workers

Provide an employee subsidy for coverage on the private exchange

Adopt a value-based insurance design

Move to private exchange

Create tiered networks

Institute spousal surcharge

Require spouses to get coverage through own employer

Add wellness rewards or penalties

0.0% 10.0% 20.0% 30.0%

0.6%

1.0%

1.3%

2.6%

2.6%

3.2%

3.6%

6.7%

7.9%

26.3%


Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015? (by staff size)

Note: n = 2,271






0.0%

5.0%

10.0

%

15.0

%

20.0

%

25.0

%

30.0

%

35.0

%

40.0

%

3.2%

3.6%

6.7%

7.9%

26.3%

3.1%

3.2%

5.9%

7.7%

24.1%

3.8%

5.5%

10.1%

9.4%

34.6%

750 or more FTEs Fewer than 750 FTEs Total


Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015? (by staff size, continued)

Note: n = 2,135


Eliminate coverage




0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

0.6%

1.0%

1.3%

2.6%

2.6%

0.5%

1.1%

1.0%

2.7%

1.7%

1.4%

1.0%

2.4%

2.4%

5.8%



Do You Plan to Make Any of The Following Changes to Your Health Care Plans in 2015? (by staff size)

Note: Only statistically significant differences are shown.

Comparisons by organization staff size

750 or more FTEs > Fewer than 750 FTEs


• Organizations with 750 or more FTEs are more likely than organizations with fewer than 750 FTEs to make the following changes to health care plans in 2015:• Institute spousal surcharge.• Eliminate coverage for part-time workers.• Adopt a value-based insurance design (VBID).• Adopt reference pricing.• Create tiered networks.• Add wellness rewards or penalties.


U.S. Census Bureau Regions


Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015? (by region)

Note: n = 2,264






0.0%

5.0%

10.0

%

15.0

%

20.0

%

25.0

%

30.0

%

35.0

%

3.2%

3.6%

6.7%

7.9%

26.3%

3.9%

5.1%

7.3%

7.8%

28.7%

4.2%

3.7%

6.8%

8.0%

27.9%

2.6%

2.4%

8.1%

10.9%

25.9%

1.6%

4.0%

4.4%

3.3%

20.7%

West Midwest South Northeast Total


Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015? (by region, continued)

Note: n = 2,279


Eliminate coverage




0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

0.6%

1.0%

1.3%

2.6%

2.6%

0.5%

1.0%

0.7%

5.1%

3.6%

0.7%

1.0%

0.9%

1.8%

3.0%

0.5%

1.6%

1.5%

2.8%

2.6%

0.7%

0.2%

2.1%

1.2%

1.2%





Comparisons by region

SouthMidwest

> West


• Organizations in the South and Midwest are more likely than organizations in the West to require spouses to get health care coverage through their own employer.

• Organizations in the Northeast are more likely than organizations in the South and West to provide an employee subsidy for coverage on the private exchange.


Northeast >SouthWest





South > West


• Organizations in the South are more likely than organizations in the West to add wellness rewards or penalties.


Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015? (by sector)

Note: n = 2,279






0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

3.2%

3.6%

6.7%

7.9%

26.3%

2.8%

2.5%

6.9%

6.3%

27.0%

3.7%

3.5%

6.4%

8.2%

25.3%

2.7%

4.4%

6.7%

8.9%

27.5%

1.6%

3.8%

7.7%

4.9%

27.3%

Government Nonprofit Privately owned for-profitPublicly owned for-profit Total


Do You Plan to Make Any of The Following Changes to Your Health Care Plans in 2015? (by sector, continued)

Note: n = 2,279


Eliminate coverage




0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

0.6%

1.0%

1.3%

2.6%

2.6%

0.6%

0.9%

1.3%

0.9%

3.8%

0.6%

1.2%

1.2%

3.1%

2.4%

0.4%

1.1%

1.4%

2.5%

2.5%

1.6%

0.0%

0.5%

1.6%

2.7%



Do You Plan to Make Any of The Following Changes to Your Health Care Plans in 2015? (by business activity)

Note: n = 2,264






0.0%

5.0%

10.0

%

15.0

%

20.0

%

25.0

%

30.0

%

35.0

%

3.2%

3.6%

6.7%

7.9%

26.3%

2.7%

3.2%

5.9%

6.9%

19.7%

2.8%

2.8%

8.7%

9.0%

29.2%

3.3%

4.0%

6.1%

7.6%

26.1%

Services Manufacturing Consulting Total


Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015? (by business activity, continued)

Note: n = 2,264


Eliminate coverage




0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%

0.6%

1.0%

1.3%

2.6%

2.6%

0.5%

2.1%

1.6%

4.3%

2.1%

1.0%

1.0%

1.0%

2.6%

2.5%

0.4%

0.8%

1.4%

2.3%

2.8%



Do You Plan to Make Any of the Following Changes to Your Health Care Plans in 2015? (by business activity)


Comparison by business activity

Manufacturing > Consulting

Comparison by business activity

• Manufacturing organizations are more likely than consulting organizations to add wellness rewards or penalties.


Do You Expect Your Organization to Hit the Excise Tax in 2018?

Note: n = 1,803

85%

15%

No Yes


Do You Expect Your Organization to Hit the Excise Tax in 2018? (by staff size)

Note: n = 1,713

Total

Fewer than 750 FTEs

750 or more FTEs

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

15.0%

13.2%

23.9%

85.0%

86.8%

76.1%

Yes No


Do You Expect Your Organization to Hit the Excise Tax in 2018? (by staff size)


Comparison by organization staff size

750 or more FTEs > Fewer than 750 FTEs

Comparison by organization staff size

• Organizations with 750 or more FTEs are more likely than organizations with fewer than 750 FTEs to expect to hit the excise tax in 2018.


Do You Expect Your Organization to Hit the Excise Tax in 2018? (by region)

Note: n = 1,791

Total

Northeast

South

Midwest

West

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

15.0%

18.8%

13.9%

13.7%

14.5%

85.0%

81.2%

86.1%

86.3%

85.5%

Yes No


Do You Expect Your Organization to Hit the Excise Tax in 2018? (by sector)

Note: n = 1,791

Total

Publicly owned for-profit

Privately owned for-profit

Nonprofit

Government

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

15.0%

18.7%

12.9%

13.1%

27.5%

85.0%

81.3%

87.1%

86.9%

72.5%

Yes No


Do You Expect Your Organization to Hit the Excise Tax in 2018? (by sector)


Comparison by sector

Government >Privately owned for-profit

Nonprofit


• Government agencies are more likely than privately owned for-profit or nonprofit organizations to expect to hit the excise tax in 2018.


Do You Expect Your Organization to Hit the Excise Tax in 2018? (by business activity)

Note: n = 1,776

Total

Consulting

Manufacturing

Services

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

15.0%

10.4%

14.2%

15.7%

85.0%

89.6%

85.8%

84.3%

Yes No


Which Plan(s) Do You Expect to Hit the Excise Tax?

Note: n = 249

Other

Indemnity (fee for service)

Exclusive provider organization (EPO)

Consumer-driven health plan

Point of service (POS)

Health maintenance organization (HMO)

Preferred provider organization (PPO)

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%


Which Plan(s) Do You Expect to Hit the Excise Tax? (by staff size)

Note: n = 239

Other







0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

1.8%

1.2%

3.6%

7.7%

19.5%

19.5%

72.2%

1.4%

1.4%

7.1%

7.1%

11.4%

17.1%

80.0%



Which Plan(s) Do You Expect to Hit the Excise Tax? (by region)

Note: n = 246

Other







0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

5.6%

1.9%

11.1%

3.7%

31.5%

18.5%

63.0%

1.2%

2.3%

2.3%

11.6%

17.4%

15.1%

73.3%

0.0%

0.0%

3.2%

9.5%

11.1%

11.1%

81.0%

0.0%

0.0%

4.7%

0.0%

9.3%

34.9%

83.7%



Which Plan(s) Do You Expect to Hit the Excise Tax? (by region)



West >South

Midwest


• Organizations in the West are more likely than organizations in the South or Midwest to expect HMO plans to hit the excise tax.

• Organizations in the Northeast are more likely than organizations in the Midwest and West to expect POS plans to hit the excise tax.


Northeast >Midwest

West


Which Plan(s) Do You Expect to Hit the Excise Tax? (by sector)

Note: n = 246

Other







0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

2.8%

2.8%

2.8%

13.9%

8.3%

5.6%

80.6%

0.9%

0.9%

7.8%

7.0%

18.3%

15.7%

75.7%

5.1%

5.1%

15.4%

35.9%

74.4%

1.8%

3.6%

5.4%

23.2%

21.4%

67.9%



Which Plan(s) Do You Expect to Hit the Excise Tax? (by sector)



Government >Privately owned for-profitPublicly owned for-profit


• Government agencies are more likely than privately owned for-profit or publicly owned for-profit organizations to expect HMO plans to hit the excise tax.


Which Plan(s) Do You Expect to Hit the Excise Tax? (by business activity)

Note: n = 244

Other







0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%1.6%

1.2%

4.8%

7.6%

17.3%

18.5%

74.3%

2%

1%

5%

5%

18%

21%

75%

2%

7%

12%

15%

18%

73%

13%

20%

67%



What Actions, if Any, Will You Take to Avoid the Excise Tax?

Note: n = 170

Do no

t kno

w

Chang

e plan

s

Reduc

e co

vera

ge

Incr

ease

em

ploy

ee con

tribu

tion

High-

dedu

ctible h

ealth

plan

Nothing

Elim

inat

e plan

Priva

te e

xcha

nges

Follo

w bro

ker a

dvice

Other

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

29.4%

16.5%

10.6% 9.4%

4.7% 4.7% 3.5% 3.5% 2.4%

15.3%


Demographics

35

Demographics: Organization Industry

Note: n = 3,329. Total number of respondents and percentage for this question exceeded the overall sample size due to multiple response options.

Percentage

Services—professional, scientific, technical 20%

Health care, social assistance 17%

Manufacturing (durable goods) 14%

High-tech 13%

Consulting 12%

Business support services 11%

Finance 10%

Manufacturing (nondurable goods) 9%

Retail/wholesale trade 8%

Government/public administration—state/local 8%

Educational services 7%

Publishing, broadcasting, other media 6%

Religious, grant-making, civic, professional and similar organizations 6%

Transportation, warehousing 6%

SHRM/EBRI Health Benefits Survey ©SHRM 2014

36

Demographics: Organization Industry (continued)

Note: n = 3,329. Total number of respondents and percentage for this question exceeded the overall sample size due to multiple response options.

Percentage

Construction, mining, oil and gas 4%

Insurance 4%

Services—accommodation, food and drinking places 4%

Arts, entertainment, recreation 3%

Utilities 3%

Telecommunications 3%

Real estate, rental, leasing 3%

Repair and maintenance 3%

Association—professional/trade 1%

Biotech 1%

Pharmaceutical 1%

Waste management and remediation services 1%

Government/public administration—federal 1%



Demographics: Organization Sector

Note: n = 3,302. Percentages do not equal 100% due to rounding.

Privately owned for profit

Nonprofit

Publicly owned for-profit

Government

53%

23%

16%

9%


Demographics: Organization Staff Size

Note: n = 3,031. Percentages do not equal 100% due to rounding.

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999

25,000 or more employees

37%

38%

17%

8%

1%


Demographics: Region

Note: n = 3,289.

South

Midwest

West

Northeast

38%

26%

18%

18%


Demographics: Business Activity

Note: n = 3,277.

Services

Manufacturing

Consulting

65%

26%

9%


Demographics: Organizational Level

Note: n = 3,190.

76%, Corporate (companywide)

24%, Business unit/work location

42

Survey Methodology

• Response rate = 14%• 3,329 HR professionals from a randomly selected sample of SHRM’s membership• Margin of error +/- 5%• Survey fielded February 4 to April 7, 2014


43

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About SHRM Research

Project leader:Andrew Mariotti, senior researcher, SHRM Research

Project contributors:Steven Hyde, research coordinator, SHRM ResearchJoseph Coombs, senior analyst, SHRM Research

Copy editor:Katya Scanlan, SHRM Knowledge Center


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SHRM

Founded in 1948, the Society for Human Resource Management (SHRM) is the world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

EBRI

The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in Washington, DC, that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby and does not take policy positions. The work of EBRI is made possible by funding from its members and sponsors, which include a broad range of public, private, for-profit and nonprofit organizations. For more information go to www.ebri.org or www.asec.org

About SHRM and EBRI

shrm survey findings: shrm/ebri 2014 health benefits survey november 19, 2014

Documents

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health benefits survey

health care coverage

health care reform

health care offerings

large organizations

excise tax