Human Resources: Employers Want National Approach to Health Care—Still Believe Employer-Based System Works Best

Brookfield, Wisconsin (PRWEB) November 13, 2008 -- While the majority of employers believe the best way to fix the broken health care system is a complete overhaul, they are confident that the U.S. should not move away from an employment based insurance system. In a recent survey of employers who sponsor health care plans, 64% believe that employer-based health care should continue to be the primary mechanism for benefits delivery.

Only 25% of responding employers believe the current health care system should be replaced with a government-sponsored national health care system, and only 20% support replacing the current health care system with universal coverage purchased by individuals.

“Because most Americans with health insurance have coverage through employer-sponsored health plans, these findings provide the valuable perspective of those who currently shoulder the majority of the responsibility for providing health care,” said Sally Natchek, Senior Director of Research at the International Foundation of Employee Benefit Plans.

The majority of respondents, 71%, indicated that the U.S health care system needs a complete overhaul and 68% indicated that there is a need for a uniform, nation-wide approach to health care. Only 28% believe that states should be the drivers of change in health care rather than the federal government.

While responses indicate that a national, employer-based system is needed, there is some reluctance among employers to mandate employer-provided coverage, with 43% of respondents agreeing with this approach.

And although employers believe that health care should be reformed, the majority are not expecting major changes in the immediate future. Only 45% of respondents expect major federal reforms will become law during the next presidential term.

“Like many Americans that are struggling with health care, employers are also frustrated with the system, yet they are skeptical that a solution is eminent,” Natchek stated.

Conducted by the International Foundation of Employee Benefit Plans, the study titled Health Care Cost Control: Industry Approaches and Attitudes, reports responses from 1,054 U.S. benefit plans sponsors, trustees and others who serve in the employee benefits industry. Survey results break down respondents answers based on four unique employee benefit sectors: corporate plans, public /governmental plans, multiemployer benefit plans and professional service firms serving the employee benefits industry.

Other key findings:

Although consumer-driven health plans (CDHPs) have been hyped as the ideal model for the future, only 32% of employers have implemented CDHPs. The number is much lower among public and multiemployer plans with only 17% and 12% respectively offering CDHPs.
While the support for CDHPs is not as strong as expected, respondents still have faith in the consumerism concept, with 62% citing consumerism as a strategy to improve health care quality and reduce costs over the next two years.
Looking forward, the majority of respondents, 72%, believe embracing health and wellness as a core value of the organization will be the number one way to improve health care quality and reduce costs in the future.
Three-fourths of employers, 75%, use disease management programs to improve health care quality.
Retiree health benefits are still most commonly found with public employee plans and multiemployer benefit plans, 85% and 76% respectively.

Health Care Cost Control: Industry Approaches and Attitudes (Item #6535E) is published by the International Foundation of Employee Benefit Plans. It is 57 pages and costs $100 (I.F. Members $67). The publication is available as an e-book only. To order visit www.ifebp.org/books.asp?6535E or contact the Foundation Bookstore at bookstore [at] ifebp.org or (888) 334-3327, option 4.

The International Foundation of Employee Benefit Plans is a nonprofit organization, dedicated to being a leading objective and independent global source of employee benefits, compensation, and financial literacy education and information.