Texas Employer Health Benefits Survey Finds Employers Focused on Engagement, Wellness and Healthy Living Initiatives

DALLAS, March 20, 2013 /PRNewswire/ -- Texas employers are increasingly sharing accountability and decision-making with employees when it comes to health care, according to a survey of more than 70 large and mid-size employers who provide health benefits for more than 1 million people across the state and nationally. Conducted by the non-profit Texas Business Group on Health (TBGH), the research provides insight into new strategies being adopted by employers to improve employee health and productivity and manage increasing health-related costs through plan design, cost-sharing and employee engagement.

The survey also found that employers are increasingly turning to high-deductible Consumer-Directed Health Plans (CDHPs) and using strategic communications initiatives to provide members with new tools and resources to engage and empower them to actively choose healthy lifestyles and make savvy, knowledge-based healthcare decisions.

"In this transition period of health care reform, our survey makes it clear that Texas employers are not sitting on the sidelines waiting for instruction or for others to lead the way into the new health care environment," said Marianne Fazen, TBGH president and CEO. "Instead, they are taking diligent steps to help their employees get and stay healthy and obtain high quality, cost-effective care when they need it."

Survey findings include:

• Health Maintenance Organization (HMO) enrollment remains very low among Texas employers, at less than 1% in 2013, and participation in Indemnity, Point-of-Service and Exclusive Provider Organizations will drop precipitously and account for less than 6% of total covered lives.
• Preferred Provider Organization (PPO) and CDHPs will absorb the migrating plan members, with CDHPs growing in both numbers and percentage of total enrollees (from 18.5% in 2012 to 24.7% in 2013) as more employers adopt these account-based high deductible plans and encourage enrollment.
• With increasing popularity of CDHPs, employers are focusing on employee engagement, wellness and healthy living as the most effective strategy to improve health and productivity, and control the rate of acceleration of medical costs.
• Drug benefits comprise a significant portion of total medical expenses and many employers actively manage their pharmacy benefits to promote quality and cost-effective therapeutic treatment, most often with a preferred drug list, step therapy and prior authorization for certain drugs. In 2013 almost 20% of surveyed employers will waive deductibles, co-pays and co-insurance to encourage treatment compliance for certain conditions.
• Employers continue to align incentives/penalties with employee participation in health education and wellness programs and are increasingly tying inducements to achievement of targeted health goals and behaviors, and also are expanding eligibility to dependents and non-covered employees.
• Employers are committed to adopting strategic wellness programs to improve the engagement, competence and accountability of individual employees, and plan to supplement print and email communications and on-site health fairs and screenings with less traditional engagement strategies, including 'gamification', incorporating gaming features within wellness strategies to add fun and rewards for successful performance.
• Approximately 70% of survey respondents reported a commitment from senior management and an adequate budget to execute an organization-wide comprehensive health/wellness program 2013; 85% expect to have such support by 2014.

About the Survey
TBGH designed the Texas Employers Benchmarking Survey: Health Benefits and Wellness to identify perceptions, objectives and strategies regarding plan design and wellness initiatives in light of current economic, political and legislative environment. The online survey was conducted in October, 2012. The 70 participating employers provide health benefits for more than 1 million people located throughout the region and reflect every North American Industry Classification System (NAICS) industry category except Construction and Arts & Entertainment. Funding for the survey was provided by Merck and Pfizer.

About the Texas Business Group on Health
The Texas Business Group on Health (TBGH), is a non-profit 501(c)(6) regional, employer-led coalition that provides its members tools and information to help them design and manage benefit programs that emphasize quality health care, transparent pricing and system-wide accountability, starting with the individual consumer.  Members include Bexar County, Brundage Management Co., Cameron International, Cities of Austin, Odessa and San Antonio, H-E-B Grocery, Houston Metropolitan Transit Authority, Jason's Deli, Southwest Airlines, Texas Association of Counties, Travis County, USAA, Westlake Chemical Corp., and 75 employer members of the Dallas-Fort Worth Business Group on Health.

SOURCE Texas Business Group on Health