Health management

A new survey conducted by Towers Watson and the National Business Group on Health shows that employers are frustrated with employees who fail to change health habits even when offered financial incentives.

According to the survey, , more than half (53%) of large employers offer financial incentives to workers who enroll in health engagement activities, such as weight management or smoking cessation programs. But, for many employers, participation alone is no longer enough to earn an incentive. Now, more than one-third of employers (37%) reward only those workers who meet the company’s requirements for completion of a health engagement activity, and almost one-third (29%) only reward members who participate in multiple activities, according to the 15th Annual NBGH/Towers Watson survey.

“Employers are frustrated by their employees’ low use of expensive health improvement programs," Ted Nussbaum, senior consultant at Towers Watson, said in a statement. “As employers continue to empower workers to be more health focused, they are beginning to target and reward those workers who demonstrate a real commitment to making positive lifestyle changes."

OTHER FINDINGS
• “Consistent performing" companies that have successfully held cost increases below the median trend for the last four years experienced a median cost increase of just 2.1% over the last four years compared with 6.8% for all companies.

• Consistent performers spent $6,536 per employee on health care benefits in 2009 — nearly $1,200 less per employee than for all survey respondents.

• These companies separate themselves from poorer performing companies in five areas: appropriate financial incentives, effective information delivery, metrics and evidence, quality care, and health and productivity.

• Just over half (54%) of companies now offer a CDHP, and that number is expected to grow to 61% in 2011.

• Nearly half (46%) of companies that offer a CDHP report at least 20% of their workers enrolled, an increase of nearly 70% in five years.

• Similarly, nearly 60% of survey respondents indicate their workers pay premiums that are at least 30% less than those for traditional copay plans.

• In 2010, 38% of companies will offer a health savings account (HSA), with an additional 7% expected to do so in 2011.

• In 2010, 46% of employers will provide coverage for use of retail clinics, up from 36% in 2009.

• In 2010, 57% of employers will encourage plans and providers to provide workers with access to online medical records, up from 54% in 2009.