cording to a forthcoming survey by
Watson Wyatt and the National
Business Group on Health.
The survey of 489 large U.S. employers found that the median rate
of health cost increases is expected
to remain at six percent in 2009,
although this is still nearly twice
the rate of inflation. The increase
is the same rate that employers experienced in both 2007 and 2008.
In 2006, health care costs increased
by eight percent.
Just more than half (51%) of
companies now offer workers a
CDHP, up from 47% in 2008.
Another eight percent are expected
to adopt a CDHP by 2010. CDHPs
are helping employers control
costs; companies with at least half
of their workers enrolled in a
CDHP have a two-year cost trend
( 4.6%) that is 25% lower than non-CDHP sponsors ( 6.1%). Still, challenges remain for employers trying
to provide more affordable coverage to their workers.
Sixty-seven percent of employers
cite the poor health habits of their
employees as a considerable challenge to managing their health care
costs. Other challenges include un-deruse of preventive care services
(42%), the high cost of catastrophic
and end-of-life care (36%), and poor
employee understanding of how to
use the plan (30%).
While companies will be taking a
close look at benefit offerings because of the recession, most do not
plan major changes. Eighty-six percent of employers do not plan to
delay or cancel their planned program offerings; eighty-seven percent
do not intend to make changes to
their current plan design.
Other preliminary findings
from the report include:
• Nearly one-third of employers (30%) have revamped
their health care strategy, with another 30% planning to do so in 2009.
Thirteen percent of companies are working on contingency plans for mid-year changes to benefit offerings.
• Employers' confidence in the health benefit system remains high, though
market conditions have caused this sentiment to dip. Sixty-two percent
are very confident in their ability to provide health benefits 10 years from
now, down from 73% a year ago.
• For employers, the average health care expenditure per employee in 2008
was $7,173 and is expected to increase to nearly $7,400 in 2009.
Employees paid an average of 20% of their total medical premium costs in
2008, a number that will likely stay the same in 2009.
The 14th Annual National Business Group on Health/Watson Wyatt Report
will be published later this month.
Investors to Make Changes in Their Retirement Plans
NAVA, the Association for Insured Retirement Solutions, recently conducted
survey on investor changes in financial planning via electronic polling of more
than 1,500 financial advisors.
Key survey results:
• More than half of advisors said their clients are changing or delaying their
planned retirement age.
• More than half of respondents said their clients have made unwise decisions more than usual.
• Nearly 100% of advisors have noticed an increase in clients’ level of anxiety
about future financial security.
• Nearly 85% of advisors said their clients believe their future quality of life
will be lowered.
Additional survey findings highlighted how the current economic crisis is affecting client behavior specific to product offerings. For example, more than
30% of financial advisors said they anticipate a significant increase in their
clients' interest in financial vehicles that offer guaranteed lifetime income.
To see the complete survey results, visit www.navanet.org/pressroom. HIU
