For a lot of middle-market corporations, medical health insurance plan years start both December 1 or January 1. Which means that many employers will quickly be gearing up for renewals and shift their focus to guiding their workers by means of the open enrollment course of.
Annual well being plan renewals and open enrollments typically carry up many questions for employers and workers alike:
- Does the well being plan present good worth?
- Are the advantages supplied aggressive in immediately’s market?
- Are there ample choices supplied?
- Are workers carrying the correct amount of the plan value?
Whereas selections for 2024 plans have doubtless already been made, it’s by no means too early to begin pondering strategically about your worker advantages program and to contemplate how your choices evaluate to these of peer organizations. By leveraging benchmarking information, you may make knowledgeable selections about your employer-sponsored healthcare advantages technique, plan forward for future years and confidently reply the questions which will come up.
Every year, Scott Profit Providers companions the most important unbiased mid-market actuary within the U.S. (Milliman), to conduct a Mid-Market Worker Advantages Benchmarking Survey to function a useful useful resource for decision-makers. Outcomes from the 2023 survey embody information from over 7,600 corporations nationally, representing 1.5 million workers and $19.4 billion in healthcare {dollars} spent. Within the Southeast and Virginia areas, information comes from 417 corporations, representing 115,000 workers and over $1.5 billion in healthcare {dollars} spent.
Just a few key takeaways from this 12 months’s survey outcomes embody:
- Elevated Pharmacy Spending – Pharmacy continues to be a major driver of well being plan bills. At present, pharmacy spending accounts for 23% of the typical household’s annual healthcare prices – up from 17% simply 5 years in the past. As this expense continues to develop there will likely be impacts felt by each employers and workers. Is your present pharmacy plan working for you by way of prices, customer support, transparency and vary of medicines out there?
- Inflation Affect – Based mostly on present developments, it’s affordable to anticipate to see double-digit healthcare inflation quickly. As prices proceed to rise, decision-makers ought to take into account making the most of strategic cost-savings alternatives like Particular person Protection Well being Reimbursement Agreements (ICHRAs) or various funding choices, reminiscent of self-insurance and group captives.
- Non-traditional Well being Advantages – Along with conventional well being plan advantages, many employers are starting to supply non-traditional advantages. From offering on-line sources for wholesome residing to stylish illness administration applications, providing non-traditional well being advantages will help enhance the well being and productiveness of workers whereas lowering total well being plan prices.
The whole, non-biased information from this survey is compiled to offer actionable benchmarking for employers on native, nationwide and industry-specific ranges. Contact a Scott Benefits Consultant if you want to check your profit plans – together with worker share of premiums, coinsurance and deductible quantities, plan designs, and out-of-pocket most ranges – to these of almost 7,600 mid-market corporations nationally.
About Milliman
Milliman is among the many world’s largest unbiased actuarial and consulting companies. Based in Seattle in 1947, Milliman has workplaces in key places worldwide. By means of consulting practices in worker advantages, healthcare, funding, life insurance coverage and monetary companies, and property & casualty/common insurance coverage, Milliman serves the complete spectrum of enterprise, monetary, authorities, union, training, and nonprofit organizations. Along with consulting actuaries, Milliman’s physique of pros contains quite a few different specialists, starting from clinicians to economists.
