Trends to Watch as Open Enrollment Nears

Employer Benefits News
Chris Silva
September 27, 2007

As open enrollment season approaches, some employers are making significant changes to their health benefits, and employees should pay close attention so they can make informed decisions, say Watson Wyatt experts who have identified recent trends in health benefits.

More employers are examining hiring health coaches, adopting health savings accounts, levying penalties for unhealthy behaviors and providing full coverage for preventive care and prescription drugs. “Open enrollment is a much more active process that it was just a few years ago,” remarks Ted Nussbaum, North America director of group and health care consulting at Watson Wyatt.

More companies are offering incentives for employees to maintain healthy habits. A forthcoming study by Watson Wyatt and the National Business Group on Health (NBGH) shows 46% of employers offer incentives, and another 26% plan to do so in 2008 . A few companies take the opposite approach and penalize workers with unhealthy habits, such as smoking, by requiring higher premium contributions.

Another survey by Watson Wyatt and NBGH shows that 44% of large employers offer health coaches and 13% plan to offer them next year. One-fourth of employers have onsite health centers and another 6% plan to open them next year.

Employer interest in consumer-driven health plans is growing. Watson Wyatt research shows that 40% of companies will offer an HSA next year. To reduce administrative costs, employers are cutting back on the number of health plan options they provide. The survey found 5% of employers now offer a consumer-driven health plan as the only option and another 4% plan to do so in 2008.

Firms are paying closer attention to spousal coverage, with some requiring workers to pay higher premiums for spousal coverage when the spouse is eligible for benefits elsewhere, Watson Wyatt reports.