New research on views of 2,000 employees on their perceptions and preferences around health and wellness benefits

Americans highly value and depend on their employee benefits — health insurance in particular — but lack the savvy and initiative to ask doctors, “How much will it cost?” That question could mean the difference in thousands of dollars for consumers, and millions for U.S. companies. 

These are among the findings from a recent national survey of more than 2,000 employees, led by Benz Communications, a marketing firm that specializes in employee benefits, and Quantum Workplace, a leading technology firm focused on employee satisfaction and engagement surveys.

The goal was to get clear, actionable data for U.S. companies on how to improve their efforts around managing and communicating health and wellness benefits. Top level findings can be found in the infographic below. A deeper dive into the data, including four topical fact sheets, can be found here.

To view full size click here.

Engaging Workers Year Round Ranks among Employers' Top Communications Challenges, According to Benz Communications and NBCH Survey

Employers missing out on big and meaningful chances to communicate with employees in frequent, personalized and accessible ways

WASHINGTON — Nov. 11, 2014 — Most employers (56%) say improving employees’ understanding and perceived value of benefits is their main focus, yet companies still lack personalized benefits communication at a time when it’s commonly expected by employees. These are among the findings of a new survey of more than 330 employers conducted by the non-profit National Business Coalition on Health and Benz Communications.

A collaborative effort, the 2014 Inside Benefits Communication Survey gathered key data from HR/benefits professionals about their benefits communication approaches, strategies and results.These findings are the second of two reports — the first report, released last month, detailed employers’ views on benefits through the lens of the Affordable Care Act (ACA) and other industry mandates and trends.

Study: Consumers Don't Understand the Health Insurance They Have Now

A new study by George Loewenstein, to be published in the September issue of the Journal of Health Economics shows that those who currently have health insurance, including employer-sponsored plans, have a poor understanding of their coverage. Loewenstein and a team of researchers commissioned two surveys of covered Americans and found that only 14% could explain all four key health insurance concepts: deductible, copay, coinsurance, and out-of-pocket maximum. Only 11%, given all the necessary information, could calculate the cost of a four-day hospital stay to within $1,000. 

The findings articulate the conundrum employers face when offering health insurance to their employees: consumers do not understand traditional plans and would better understand a simplified plan, but a simplified plan would not have strong appeal to consumers, or cause them to change their health care choices. This is especially critical information for employers as they start to devise a communications strategy around their current health insurance offerings as they relate to exchanges and tax credits that may be available; employers should be looking to their coalitions for help on developing employee communications strategies.

Labor Department Publishes Model Employer Exchange Notification Documents

On May 8, the U.S. Department of Labor published Technical Release 2013-02, which provides guidance for employers regarding the Affordable Care Act (ACA)-required notice to employees of their options under state and federally-facilitated health insurance exchanges.

ACA section 1513 amends the Fair Labor Standards Act (FLSA) to require that employers provide each employee with a written notice providing the employee with information about the exchange in their state and how to request assistance, describing the availability of a premium tax credit (if applicable) and outlining the implications for the employee if they choose to purchase a qualified health plan through an exchange. This requirement applies to ALL employers, regardless of size, and regardless of whether the shared responsibility requirements ("pay or play") apply. Any employer with one or more common law employees must provide this notice.

As employer advocates had hoped, model notices have been issued by DOL for use by employers:

• Model notice for employers that currently offer a health plan to some or all employees
• Model notice for employers that do not offer a health plan

The ACA effective date for distribution of these notices was March 1, 2013. The Technical Release states that employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013. With respect to employees who are current employees before October 1, 2013, employers are required to provide the notice not later than October 1, 2013. The notice is required to be provided automatically, free of charge. The notice can be provided electronically or by first class mail. The Technical Release also describes how to comply with the requirement for individuals in COBRA continuation coverage.

Survey: Patients Welcome Active Role in Care

American healthcare consumers are buying into the notion that they must take an active role in their healthcare, according to a recent survey by Wolters Kluwer Health.

The survey found 80 percent of healthcare consumers believe the trend of individuals taking a more active role in their own care is positive for Americans. Further, and somewhat surprisingly, the consumers feel ready to do so: 76 percent reported they have the necessary tools and information to take on that role. This is good news for employers seeking to implement value-based insurance designs, as VBID typically entails employees taking on more responsibility for their own health and health care.

This information comes at a time when many health systems and increasing numbers of employers are moving toward population health management as part of accountable care programs, which require patients to take control of and play an active role in their health, especially preventive care services.

New V-BID Center Research Shows Guarded Consumer Support for V-BID Concepts

This new issue brief from the Center for Value-Based Insurance Design at the University of Michigan indicates that consumers are generally supportive of V-BID concepts but are concerned about interference in the doctor-patient relationship and fairness in V-BID approaches to cost-sharing. There was broad support for “carrot” V-BID plans (making valuable care more affordable) especially when these designs were perceived as saving money and lowering insurance premiums for all beneficiaries.

Participants in the V-BID Center study also defended the values of individual responsibility and fairness when it comes to health, yet opinions were mixed regarding the use of clinical nuance in plan design. Some preferred that health plans offer incentives to a broader group of people (rather than singling out specific conditions) while others favored targeting support for those that demonstrate the greatest health needs.

Open Enrollment Often a Stressful Time for Employees

As the open-enrollment season for health benefits approaches, many workers will be making some bad choices, according to a new survey. "Far too many people don't really understand their benefits," says Audrey Tillman, executive vice president of Corporate Services at Aflac. "In fact, most employees are on autopilot." The majority of American workers — 56% — estimate that they waste up to $750 each year because of costly mistakes they have made with their health insurance benefits, according to the Aflac WorkForces Report, a July survey of more than 2,000 consumers released last week.

This is the second year Aflac has conducted a health care survey, and the situation is getting worse. In 2011, 24% of workers were confident about their decisions, compared to 16% this year.

Among common errors that Aflac found:

•Many employees, 89%, say that they simply elect the same benefits options every year, regardless whether their personal situation or circumstances change.

•Nearly half of workers (47%) say that they rarely or never exceed their deductible costs.

•Only 16% contribute the right amount to flexible spending accounts.

But Americans clearly understand that selecting health benefits is an important issue. Rising out-of-pocket medical expenses are one of the most costly financial burdens they face, say 43% of workers, Aflac found.

As benefits change, workers need to pay closer attention to their selections during open enrollment, the experts say. Many plans have started increasing in-network deductibles, emergency room co-payments, and prescription drug co-payments. But there also are some new plan benefits that could help workers as more companies offer financial incentives to promote wellness and health-improvement programs.

Coalitions have a unique role to play in assisting their employer members to educate their employees about these important issues.  With issues related to health insurance exchanges, and Medicaid expansion on the horizon, employers are going to be relied upon more and more to educate and inform their employees about the choices they have regarding health benefits.

Inclusion of Financial Planning in Workplace Wellness Programs Increasing but Employees Not Willing to Share Costs

As financial wellness becomes more of a common component to workplace wellness programs, many smaller employers are considering the cost sharing aspect of bringing financial guidance to their employees.With tight budgets, some CEOs view the ability to meet with a financial planner during working hours as a perk that employees should be happy to pay for. But are they willing? According to a Kiplinger’s article, persuading many middle-income consumers that advice is worth paying for can be a challenge.

When the HR manager surveyed his employees to see if they would be willing to pay all or a portion of a $350 fee for worksite financial planning, only 4 percent of the workforce was willing to pay the entire cost and 43 percent said they would not be willing to pay any of the cost.

However, 96 percent of this same group of employees felt that it was important to receive financial education from their employer. Obviously, they just don’t want to have to pay for it themselves.

For many employees who are living paycheck to paycheck or are overwhelmed with debt, speaking to a financial counselor about their finances could provide the coaching they need to acquire basic money management skills. So the employees who might benefit the most from a financial consultation are usually the ones in the least likely position to pay for the guidance.

Insurers Embrace Virtual Doctor Visits

A joint Kaiser Health News/USA Today story reports that insurers such as UnitedHealthcare, Aetna and Cigna, and large employers such as General Electric and Delta Air Lines are getting on board, pushing telemedicine as a way to make doctor "visits" cheaper and more easily available. Proponents also see it as an answer to a worsening doctor shortage. But some physician and consumer groups worry about the trend.

Although telemedicine developed more than 40 years ago as a way to deliver care to geographically isolated patients, its growth was slow. That's changed in the past decade thanks to the development of high-speed communications networks and the push to lower health costs.

Carmen Balber, a spokeswoman for Consumer Watchdog in Santa Monica, Calif., is concerned that lower co-payments, and other incentives, will spur consumers to see doctors or nurses online just to save money. "People will choose the more economical option, even if it is not the option they want," she said.

Employers, however, say they're getting mostly positive reviews.

"Our employees just love the convenience, the low cost and the efficiency," said Lynn Zonakis, managing director of health strategy and resources at Delta Air Lines, which offers NowClinic to some employees for $10 a consultation.

ADP survey: 40% of employees don't understand their benefit options

According to a recent article by Lisa Gillespie in Employee Benefit News...

A new ADP survey shows a wide gap between the goals and reality of how employees understand their benefit plans. Eighty percent of human resources decision-makers believe it's important for employees to fully understand their benefit options, yet they estimate only about 60% of their own employees do – a finding with serious implications for how companies communicate one of the most important parts of their employees' total compensation.

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