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Controlling healthcare costs a top concern, SHRM survey finds

January 23, 2015

Employers are very concerned about healthcare costs and plan to curb them by continuing to shift more of the expense to employees, according to the latest Strategic Benefits-Healthcare Survey report from the Society for Human Resource Management.

The survey found 79% of respondents from organizations that provided healthcare coverage to their employees indicated their organization was “very concerned” about controlling healthcare costs; however, this is down from 83% in 2013 and 84% in 2012.

To halt some of the increasing costs, one-half of organizations indicated they increased employee contributions to healthcare costs in 2014 and 26% said they planned to increase employees’ share in 2015.

“A growing number of employers are asking employees to contribute a larger percentage of their healthcare costs,” said Evren Esen, director of SHRM’s survey programs. “But it is important that employers fully assess the potential impact of such a change, especially in today’s improved job market. Shifting healthcare costs to employees can lower employee job satisfaction and pose a barrier for attracting new talent.”

Almost one-fifth, 19 percent, of organizations that provide healthcare coverage indicated use of consumer-directed health plans, such as health reimbursement arrangements and health savings accounts, was the most successful tactic for controlling health care costs. About one-half of organizations, 56%, offered educational initiatives related to health and wellness and 48% offered lower-cost generic prescription drugs to help control the costs of healthcare.

The survey is one of SHRM’s six-part Strategic Benefits Survey and included the responses of 380 randomly selected SHRM members throughout the United States.