Hingham, MA (PRWEB) October 15, 2008
New York, October 15, 2008 -A new report entitled What Employers Want From Health Insurers Now (http://www.pwc.com/hri)], released today by PricewaterhouseCoopers Health Research Institute, finds mixed satisfaction ratings with insurer-sponsored services and meaningful differences between what small and large companies want.
According to a PricewaterhouseCoopers' survey of 250 small employers (those with fewer than 250 employees) and 100 large multi-national companies (with an average of 8,000 employees), small employers are less satisfied with their insurer-provided health services than larger employers. Small businesses with less than 500 employees represent 99.9 percent of all employers in the United States according to the Small Business Association. Small business respondents reported greater dissatisfaction than big companies in 12 critical areas of service studied by PricewaterhouseCoopers including claims accuracy/timeliness, administration fees, provider discounts, wellness programs and online tools such as personal health records.
The disparity may reflect that larger employers typically receive a wider array of customized plan designs from insurers, and the cost of administering small groups is usually more expensive on a per employee basis.
"Small employers could be the canaries in the coal mine for the employer-based model," said Michael J. Thompson, principal of PricewaterhouseCoopers' human resources services group. "Given that the majority of American workers are employed by small business and that the erosion of health insurance coverage is among small employers, insurers are keenly interested in understanding what all employers want and how they can adapt plan designs and service offerings to better meet their needs."
While both large and small employers rate the basic functions of timeliness and accuracy of claims administration as the most important service offered by health insurers, large employers place almost as much importance on wellness services. Nearly 80 percent of large employers but only 50 percent of small businesses say wellness programs are important to them.
According to the report, the silver lining for American workers is that their employers are increasingly looking to manage costs through wellness and disease management programs rather than further shifting costs. Interestingly, while employers and policy makers are relying heavily on wellness programs as a way to reduce costs, wellness service offerings was an area that both small and large businesses were most dissatisfied with, indicating an opportunity area for health insurers to improve on and differentiate themselves.
PricewaterhouseCoopers found that only one-half of the employers surveyed are satisfied with wellness programs they are getting from health insurers. Employers stated that only 15 percent of employees participate in wellness programs currently being offered and that they need better education tools and incentives. PricewaterhouseCoopers found that workers are two to four times more likely to enroll in wellness programs if they receive incentives such as gift cards or premium reductions.
Other key findings in the PricewaterhouseCoopers report include:
The majority of large employers said they would accept less customization for a 3 percent to 10 percent reduction in fees. One way large companies reduce customization is by reducing the number of health plans offered to employees to only one or two instead of a dozen or more. Smaller employers said they would accept less customization but only if they saw a reduction of at least 10 percent.
"We've known all along that less customization of benefits reduces administrative costs," said Paul Veronneau, PricewaterhouseCoopers healthcare payer sector leader. "What's enlightening about this research is just how much of a fee reduction employers want in exchange for the customization they've been demanding."
A full copy of the report is available at http://www.pwc.com/hri.
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Contacts: Todd Hall
The Hubbell Group, Inc.