Buck Reports Improved Health Plan Cost Increases

December 17, 2012 (PLANSPONSOR.com) Projected cost increases for all types of medical plans are anticipated to be down by between 0.2% and 0.6% through the first half of 2013, according to a survey.

This year is the first time since 2001 that Buck Consultant’s survey indicated projected cost increases less than 10% for any plan type, a trend that will continue into 2013.  

The survey found a projected cost increase for Preferred Provider Organization (PPO) plans of 9.7% compared to 9.9% last year. For Point-of-Service (POS) plans, the projected cost increase is 9.5%, down from 9.9%.

Health Maintenance Organization (HMO) plans are projected to see a cost increase of 9.3%, and High Deductible Health Plans (HDHP) 9.6%, both down from 9.9% last year.
 

Get more!  Sign up for PLANSPONSOR newsletters.

“Despite the lower trend, though, health care costs continue to outpace general inflationcreating difficult business decisions for organizations,” said Daniel Levin, FSA, a Buck principal and consulting actuary who directed the survey.

Health insurers reported an average prescription drug trend of 10.1%, an increase of 0.5% from the prior survey. It is also more than twice the 4.1% reported by pharmacy benefit managers (PBMs)third-party administrators of prescription drug programs, who generally do not take any underwriting risk. The continued shift to generic drug use is a significant factor in the reduced drug trends shown by PBMs.

For plans that supplement Medicare, health insurers reported a trend of 5.4% excluding prescription drug coverage, down from 5.8% in the prior survey. This lower trend of Medicare Supplement plans reflects the impact of federal controls on Medicare fees and the lower increases expected in Medicare deductibles and co-pays.

“Another health care trend we’ll be watching is the impact of private health insurance exchanges,” said Levin. “It remains to be seen how the development of private exchanges will affect the use of public exchange models, but it could likely impact the projected cost trends we measure in this survey.”
 

The survey also reported trend factors for dental and vision plans.

Buck’s 25th “National Health Care Trend Survey” is available for $100 by calling 1-800-887-0509 or visiting www.bucksurveys.com.

BofA Enhances Site for Participants

December 14, 2012 (PLANSPONSOR.com) Bank of America Merrill Lynch enhanced its Benefits Online site for participants with a new education center, home page redesign and mobile upgrades.

The firm’s intention is to make participants think about the site not only as a place for transactions but as a destination to help them take positive steps toward financial wellness.

“We wanted to help plan sponsors demonstrate the value of their plans and help participants exploit the value of those plans,” Eve Varner, director of Interactive Platform Management for Bank of America Merrill Lynch, told PLANSPONSOR.  

Get more!  Sign up for PLANSPONSOR newsletters.

The online and mobile experience for employees when engaging their financial benefit plans has been improved, Varner said, which also makes it easier for employers to give workers access to more personalized financial education. “The intent was to deliver education in a way that participants are used to,” she explained.

“When you look across the scope of what we did this year it’s really about all these pieces working in concert to deliver broad-based change,” Varner said. “The changes are a continuation of our ongoing efforts to put a laser focus on participants, using a very consumer-focused lens.”

Benefits Online Mobile builds upon existing mobile capabilities and gives users access to detailed information in their equity, defined benefit and non-qualified deferred compensation plans via smartphone, tablet or other mobile device.

A homepage redesign incorporates feedback from plan sponsor clients and employees, giving a more intuitive and personalized experience. Content is tailored and organized to match an employee’s information usage.

An education center engages plan participants with educational resources and content that is relevant to a participant’s life stage, financial goals and interests. The resource is intended to change the way employees interact with their benefit plans, and to help them make more meaningful and informed financial decisions.

The launch of the Education Center allows participants to manage their retirement and benefit plans as they have been, while now also providing content in one place organized by life stage. By gathering articles, seminars and other tools into a single location, participants can find and act upon these resources more easily.

The center is also available before a participant logs in, which allows a participant to share articles and content on Facebook, Twitter and LinkedIn. When pieces of content are tagged, employers can promote more targeted, relevant content to employees through their communication campaigns, further driving engagement and education.

More than 3.6 million employees use the Benefits Online platform across 1,750 large and midsize companies, according to Bank of America Merrill Lynch.  

 

—Jill Cornfield 

«