healthcare trends institute: benefits trends to watch in 2014
DESCRIPTION
If you missed our most recent webcast, Healthcare Benefits Trends to Watch in 2014 featuring insights and analysis from leaders at Microsoft U.S. Health and Kaiser Permanente, you're in luck. Healthcare Trends Institute (HTI), a leading research organization compiling the top news and analysis regarding both Healthcare Reform and Defined Contribution, has released the slideshow covering the discussion from this webcast. Part of HTI's quarterly HealthChange web series, this webcast featured analysis from leaders in the healthcare field. Featured in this webcast were the following: -Shajmil Smith, Executive Director of Product Program Services, National Product Management, Kaiser Permanente -Sam Robinson, Health Plan National Director, Microsoft Health and Life Sciences. -Members from our own advisory board To listen to the full report and insight, follow the link (http://www.evolution1.com/healthcare-trends-institute/healthcare-benefits-trends-webcast-presentation-now-available-for-download/) and download the full review.TRANSCRIPT
© 2014. Healthcare Trends Institute. All Rights Reserved.
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2/4/14
Healthcare Benefits Trends to Watch in 2014 Webcast
© 2014. Healthcare Trends Institute. All Rights Reserved.
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Today’s Agenda
ü Healthcare Benefits Trends to Watch in 2014 is part of the Healthcare Trends Institute’s quarterly HealthChange™ Web Series
ü We will cover several healthcare benefits topics including CDHP, exchanges, wellness plans, health IT, and more
ü Overview of trends from the 2013 Healthcare Benefits Trends Benchmark Study from Tiffany Wirth, Executive Director, HTI
ü Expert panel includes Healthcare Trends Institute Editorial Advisory Board members : ü Shajmil Smith, Executive Director of Product Program
Services and Solutions, National Product Management, Kaiser Permanente
ü Sam Robinson, National Director, U.S. Health Plan Industry, Microsoft Health and Life Sciences
© 2014. Healthcare Trends Institute. All Rights Reserved.
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2013 Healthcare Benefits Trends Benchmark Study
ü Polled over 300 HR executives, benefit managers, and other benefit decision-makers across the US
ü Conducted Fall of 2013 (September-October) ü Company size ranged from less than 50 full-time
employees, to more than 2,500
ü Variety of of industries represented including manufacturing, government, technology, and finance & insurance
ü Surveyed topics included employee and health benefits, defined contribution, public and private health insurance exchanges, and wellness programs
© 2014. Healthcare Trends Institute. All Rights Reserved.
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Study Highlights
ü The majority of respondents (59.4%) indicated they were somewhat to very familiar with Defined Contribution Plans (DCPs) as they relate to health benefits
ü Of those respondents (36.1%)who indicated they were interested in DCPs for the future, 55.8% reported they were considering for 2015 followed by 26.9% in 2016, and 17.3%
indicated considering DCPs before the end of 2014
ü 62.1% somewhat to very familiar with public exchanges and 55.5% somewhat to very familiar with Private exchanges
ü Of the respondents indicating they were somewhat to very familiar with exchanges, over half (51.3%) indicated they believed exchanges will help employees make more cost-conscious benefit decisions as well as offer a wider array of options for benefit plans.
ü 43.9% of companies surveyed are already using some kind of healthy lifestyle incentive/program, while 22.6% are considering for the future.
ü To promote positive health outcomes, 61% of companies offer at least one wellness program and 43% offer employees the opportunity for health risk assessment.
© 2014. Healthcare Trends Institute. All Rights Reserved.
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Study Key Trends
ü Ongoing cost concerns among employers of all sizes will continue to spur change both in the form of defined contribution plans and the use of health insurance exchanges.
ü Most employers are interested in learning more about DCPs for the future supporting the shift away from a traditional defined benefit model to manage employee healthcare
benefits and control costs.
ü Overall, employers are more familiar with public exchanges than private exchanges. This may be due to the October 1 launch of the Federal Insurance Marketplace, which
coincided with survey data collection. As most employers surveyed provide group coverage, the awareness of public exchanges may not be as important to these
respondents.
ü Because DCPs are starting to gain ground among employer groups, awareness of private exchanges is expected to grow in correlation with DCP use in companies.
ü We can expect an increase in the number of companies offering at least one wellness program or health initiative as ACA wellness incentives go into effect in 2014.
Emerging Benefit Trends for a Post-Reform Healthcare Market Shajmil Smith, Executive Director in National Product Management Kaiser Permanente February 4, 2014
Contents
Market Context
Emerging Trends
Conclusion
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Market Context: Impacts from the Affordable Care Act and the continued pressure to control costs are driving changes across every sector of the healthcare marketplace
Source: Strategic Health Perspectives, 2013 8
Response to changing
healthcare market (more costs, risk,
and change)
Shift to retail healthcare marketplace
New employee benefit strategies
Continued focus on ACA implications
Focus on consumer engagement and wellness
Overarching slowdown in revenue growth across entire industry
Confidence in public and private exchanges increasing and defined contribution taking shape
Employers continue movement to narrow Networks, CDHPs, and strategies that reduce coverage for certain populations
Continued focus on rewarding healthy behavior and increasing consumer engagement
Emerging Trends: Consumer Directed Health Plans are expected to continue to grow
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Enrollment in CDHP’s continue to increase, with an additional focus on CDHC as a Total Replacement Strategy While only 10% of employers have moved to a total replacement strategy for CDHC, another 44% are expected
to move in in this direction over the next 3 – 5 years
Additionally, where only 5% of employers require employees to contribute to their own HSA as prerequisite to earning a match contribution, more employers
Source: Mercer’s National Survey of Employer-Sponsored Health Plans Aon Hewett 2013 Health Care Survey
Emerging Trends: Companies are using a variety of strategies to contain insurance costs
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§ Continuing to increase co-pays/deductibles. Movement to CDHPs
§ Using narrow networks/ACOs to lower rate without or in addition to cutting benefits
§ Employers offering Medicare Group coverage are cutting retiree coverage or moving to a Connector
§ Dependents, early retirees, and part time employees to be increasingly squeezed out of coverage
§ A growing number of employers are shifting to defined contribution models and the use of private exchanges to deliver health insurance
26%
45%
59%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013
“My Company is Actively Exploring Ways to Get Out of Providing Health Insurance to our Employees”
(% Strongly Agree or Somewhat Agree)
Source: 2013 Strategic Health Perspectives Report
Emerging Trends: Companies are changing the way they approach providing healthcare
Source: Strategic Health Perspectives, 2013 11
Base: All Employer Health Benefit Decision Makers (N=313) Q910: Do you provide health insurance benefits or some type of financial contribution towards health costs to any of your employees? Q911: Which health benefit do you currently offer to your employees? Q1401: Assuming the ACA remains intact, what is your future plan for health insurance benefits for your employees? Please estimate what your company will be doing in 2015 and in 2020.
Emerging Trends: Alternative approaches to delivering care provide opportunities to engage consumers in a cost-efficient way
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• According to the 2013 Kaiser Family Foundation Report, 35% of firms offering health benefits stated that wellness programs would be very effective at containing health insurance costs, more than any other strategy
• Among firms offering health benefits, over half (56%) cover care received at retail clinics in the plans with the largest enrollment. Of those, 17% offer a financial incentive
Conclusion
§ Existing strategies such as movement toward CDHP’s, focus on wellness and healthy behavior, and narrowing healthcare coverage, will continue to provide opportunities to manage costs
§ A shift towards a more retail-oriented healthcare marketplace is also
emerging as a strategy that provides consumer choice and cost-efficiency opportunities
§ Post Reform, employers will need to execute strategies that respond
to the impending ACA implications, manage costs, and increase consumer engagement
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Emerging Technology Trends
SAM ROBINSON
NATIONAL DIRECTOR, U.S. HEALTH AND LIFE SCIENCES
Megatrends that will dominate the next decade
of CIOs see mobile as most disruptive technology over next decade
70%
of all new application development target a mobile form factor >1/3
Today 57% of enterprises will be invested in enterprise social by 2014
Social networking will follow not just people but also appliances, devices and products
>70% of CIOs will embrace a cloud-first strategy by 2016
of organizations planned to increase public cloud spending in 2013
54%
Spending on Big Data:
Percent of digital universe tagged:
3% (2020)
33%
(today)
$10 billon 2013 > $20 billion 2016
zettabytes in 2013
4 50% From 2012
Total digital content will grow =
Consumer Engagement
Engage Ac3vate
Having the mo#va#on, knowledge, confidence, and capabili#es to take a role in managing your health
Ac#ons that people take for their health and to benefit from care.
really
Xbox Fitness brings you the world’s best workouts with instant, personalized feedback, right in your home on Xbox One. ü Train with Jillian Michaels, Tracy Anderson,
Tony Horton, Shaun T., and more! ü Op3mize every workout with immediate
feedback on your form, power and heart rate with the all new Kinect
AcHve gaming via Xbox Fitness q Interac3ve, fun, gaming environment that encourages movement q Social connec3on via Xbox Live and Skype q Kinect sensor provides real-‐3me feedback including biometric data q Studies underway for diabetes preven3on
Smart buildings with idenHty: Meet Ingrid and Ingmar • Integrate health into lifestyle • Serves as:
• Community Organizer • Health Coach • Storyteller
• Gamifies Health • Challenge • Interac3on
• Communica3on • Email • Text • Smart Displays
• Home/Office/Mobile
© 2014. Healthcare Trends Institute. All Rights Reserved.
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About the Institute
Institute Programs include: ü HealthChange™ Educational Web Series ü HealthDifference™ Awards (Launching March 15, 2014) ü Institute membership ü Healthcare Trends E-newsletter ü Defined Contribution Today E-newsletter
The mission of the Healthcare Trends Institute is to provide the latest information, news, education, resources and insights into the rapidly changing healthcare environment. This site will cover a range of topics including healthcare and employee benefits, health exchanges, insurance, and related areas of interest.
Tiffany Wirth, Executive Director Tiffany Wirth is Executive Director of the Healthcare Trends Institute. She also serves as Director of Marketing at Evolution1™. Healthcare Trends Institute 4324 20th Avenue, SW, Ste. 200, Fargo, ND 58103 P: 701.499.7215 E: [email protected]
© 2014. Healthcare Trends Institute. All Rights Reserved.
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