Who’s Offering What Benefits? (SHRM Survey)

The Society for Human Resource Management (SHRM) released its 2014 Employee Benefits Survey at its recent Annual Conference and Exposition in Orlando. The findings are helpful for determining what benefits are commonly offered and which ones you might want to consider.

The survey, sent to a random sample of SHRM members, had 510 respondents, which was a 13% response rate.

Ninety-eight percent of employers offer some type of healthcare coverage to full-time employees, and the most common offering is a preferred provider (PPO) plan, says the survey.

Employers are reallocating benefits dollars as the country comes back from the recession. Not many organizations are going back to prerecession benefits, says Evren Esen, SHRM’s director of Survey Programs. As healthcare costs rise, employers are maintaining the  healthcare insurance at the expense of other coverage, he adds.

For example, says Esen, education assistance for undergraduates has seen a dip in the number of organizations offering it.

How Are Employers Deciding Which Benefits to Offer?

Employers’ decisions about what benefits to offer tend to be based on three analyses, says Esen.

• What is important to our employees?
• What benefits do the greatest number of employees use?
• What package of benefits will have the biggest impact?

If the return on investment (ROI) on a particular benefit is low, those benefit dollars may be reallocated, he adds.

Wellness Programs on the Increase

“An increase in wellness offerings is a trending tactic for companies looking to save on long-term healthcare costs often associated with chronic diseases such as diabetes and high blood pressure,” says Bruce Elliot, SHRM’s manager of compensation and benefits.

The rise in general wellness initiatives is likely because wellness programs can affect such a large swath of employees, plus they have a high ROI, says Esen. Estimates put wellness ROIs at about 3 to 1, he adds, although it takes 3 to 5 years for the programs to take effect.

The 5-Year Trends

Esen notes that the 5-year trend analyses show gains in the following wellness programs (Percents indicate the number of respondents currently offering the benefit.): 

• Health and lifestyle coaching (47%)
• Preventive programs specifically targeting employees with chronic health conditions (42%)
• Subsidies or reimbursements for fitness center memberships (34%)
• Discounts on premiums for taking a Health Care Assessment (21%)

Other programs currently offered include:

• Smoking cessation (42%)
• Participatory weight loss (32%)
• On-site fitness centers (20%)
• Nutritional counseling (20%)
• Nap room and on-site vegetable garden (3% each)
• The 5-year trends analysis also shows increases in the percentage of organizations offering:
• Mental health coverage
• Contraception coverage
• Vision insurance
• Coverage for bariatric and laser vision surgery
• Health Savings Accounts (HSAs)

The median cost for employee-only coverage was $5,838, and the median percentage paid by the employer was 80 percent.

The chart below shows the prevalence of various employee health benefits.

Benefit	Currently Offering	Planning to Offer
Prescription drug program coverage	95%	0%
Dental insurance	95%	1%
Mental health coverage	87%	<1%
Mail-order prescription program	84%	<1%
Preferred provider organization (PPO)	84%	0%
Accidental death and dismemberment insurance (AD&D)A	84%	0%
Contraceptive coverage	84%	<1%
Vision insurance	83%	<1%
Chiropractic coverage	83%	<1%
Employee assistance program (EAP)	74%	2%
Long-term disability insuranceA	74%	1%
Short-term disability insuranceA	70%	1%
Medical flexible spending accountsB	68%	1%
Supplemental accident insurance	46%	<1%
Health savings account (HSA)	45%	4%
Bariatric coverage for weight loss	38%	1%
Acupressure/acupuncture medical coverage	36%	<1%
Health maintenance organization (HMO)	33%	0%
Healthcare premium flexible spending accountC	32%	1 %
Employer contributions to HSAs	32%	2%
Consumer-directed healthcare plan (CDHP)	30%	3%
Critical illness insuranceD	30%	1%
Infertility treatment coverage other than in vitro fertilization	29%	<1%
Laser-based vision correction coverage	28%	<1%
In vitro fertilization coverage	26%	<1%
Long-term care insurance	24%	1%
Hospital indemnity insurance	22%	<1%
Point of service (POS) plan	22%	<1%
Intensive care insuranceE	21%	<1%
Retiree healthcare coverage	18%	<1%
Health reimbursement arrangement (HRA)	17%	1%
Wholesale generic drug program for injectable drugs	16%	1%
Elective procedures coverageF	15%	<1%
Alternative/complementary medical coverage	14%	1%
Pharmacy management program	14%	1%
Indemnity plan (fee-for-service)	12%	<1%
Gender reassignment surgery coverage	7%	<1%
Exclusive provider organization (EPO)	7%	1%
Experimental/elective drug coverage	4%	<1%
Mini-med health plan	2%	1%

A Does not pertain to employee-paid supplemental insurance
B IRC Section 125
C IRC Section 125 Cafeteria Plan allowing for premium conversion
D Provides funds to help cover extra expenses upon diagnosis of a critical illness or condition
E Provides funds to help cover the extra expenses for accidents or illnesses that result in an admission to a hospital intensive care unit
F Any nonemergency surgical procedure other than laser-based vision correction coverage
G Independent of medical plan management
Source: 2014 Employee Benefits: A Research Report by SHRM

The table below shows the prevalence of various wellness related benefits:

Wellness Benefit	Percent Offering	Planning To Offer
Wellness resources and information	79%	4%
Wellness programs	62%	8%
Wellness publicationA	61%	6%
On-site seasonal flu vaccinations	58%	2%
24-hour nurse lineB	51%	1%
Health screening programsC	47%	6%
Health and lifestyle coachingD	47%	7%
CPR/first-aid training	45%	2%
Smoking cessation program	42%	5%
Preventive programs specifically targeting employees with chronic health conditions	42%	7%
Health fairs	38%	6%
Rewards or bonuses for completing certain health and wellness programs	36%	8%
Fitness center membership subsidy/reimbursement	34%	3%
Weight loss program	32%	7%
Healthcare premium discount for getting an annual health risk assessment	21%	6%
On-site fitness center	20%	1%
Nutritional counseling	20%	2%
Standing deskE	20%	3%
Healthcare premium discount for not using tobacco products	19%	5%
On-site blood pressure machine	14%	3%
Healthcare premium discount for participating in a wellness program	14%	5%
On-site fitness classesF	14%	2%
Off-site fitness class subsidy/reimbursement	12%	2%
Healthcare premium discount for participating in a weight loss program	9%	4%
On-site sick room	9%	<1%
On-site medical clinic	7%	<1%
On-site massage therapy services	6%	2%
Fitness equipment subsidy/reimbursement	5%	1%
On-site stress reduction program	3%	2%
On-site nap room	3%	0%
On-site vegetable gardens	3%	1%

A For example, newsletter, column.
B Available to help employees make more informed  healthcare decisions.
C For example, glucose, cholesterol.
D Used to help employees change and better manage their health habits.
E Provide or subsidize the cost of replacing a regular desk with a standing desk.
F For example, yoga, aerobics.

Source: 2014 Employee Benefits: A Research Report by SHRM

You can access the entire SHRM 2014 Employee Benefits Survey at http://www.shrm.org/research/surveyfindings/articles/pages/2014-employee-benefits.aspx

Source: HR Daily Adviser