Employers stick with wellness investments

LINCOLNSHIRE, Ill. – A new survey by Hewitt Associates LLC, a global human resources consulting firm, shows 65 percent of U.S. employers continue to make significant investments in their workers’ health and productivity despite the weak economy, though 31 percent – twice as many as last year – are just focusing on cutting costs.
The survey, which covered more than 340 employers with more than 5 million workers, follows up on a survey last fall that found major companies expected their health care costs per worker to rise by 9 percent this year, to $8,863, with workers’ share rising by less than 8 percent, to $1,946.
The latest figures focus on employers’ attitudes toward health care spending and potential reforms at the federal and state levels.
The survey found 4 percent of companies are taking steps to be able to discontinue health benefits altogether, while 19 percent said they plan to move away from providing health care benefits directly within three to five years, up from 4 percent last year.
“In today’s environment, employers are under pressure to cut health care expenses, but they realize that short-term cost management tactics do not address the underlying drivers of health care cost,” said Jim Winkler, head of Hewitt’s North America Health Management Consulting practice, in a news release.
“This leaves them with two options,” he added: “making a long-term commitment to improving the health of employees and their families, or exiting health care altogether. Most companies believe that investing in the long-term health of their population is the most effective way to mitigate costs and create a more productive and engaged work force.”
Along with the data, Hewitt offered advice to employers on how to cut short-term costs, such as to aggressively negotiate with health and welfare vendors to lower service costs and ensure that health plans deliver on specific program measures such as claim cost reductions.
Hewitt also recommended measuring the impact and value of health programs, and tackling specific conditions that are high-cost but also well-suited for interventions, such as diabetes.
Hewitt Associates LLC (NYSE: HEW) consults with companies to design and implement a wide range of human resources, retirement, investment management, health management, compensation, and talent management strategies. For more information – or to read the full report, “Challenges for Health Care In Uncertain Times” – go to www.hewitt.com.