Plan Renewal Insights
2022 Benchmarking Report © HORAN 2022
Introduction Benchmarking (ben(t)SHmärking) is defined as an evaluation process used to compare (something) against a standard. HORAN leverages benchmarking as a diagnostic tool to help build a strategy focused on defining an employer’s current state and actions that need to be taken to help get them where they want to be. There are many reasons why benchmarking your health plan is crucial. Leverage for Recruitment & Retention. Employers continue to fight the “Great Resignation” and are striving to scoop up talent faster than their competitors. Are you leveraging your benefits as a recruitment and retention tool? Do you know how you compare to your competitors? Are you offering the right plan? Benchmarking provides the data to know where you stand out and areas for improvement. Evaluate Cost Containment Strategies. According to the Department of Labor, inflation reached its highest point in 40 years at 9.1% (June 2022). So, what does this mean for the health care industry? It’s time to budget and prepare. Evaluating cost containment strategies and contextualizing their potential impact is key to preparing for the future. Using Data To Make Decisions. It’s important to understand your employee population, optimize what you already offer and know your health plan numbers. Benchmarking provides the foundation you need to develop a competitive strategy rooted in data.
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PLAN OFFERING INSIGHTS
2022 Benchmarking Report © HORAN 2022
3.6% 1.6%
how do i know how many plans to offer my employees?
22.5% 26.5%
Number Of Plans Offered
45.8%
Benefits are not one-size-fits all, but without proper education or decision support, too much choice can lead to confusion. Our data shows that 77% of employers offer more than one medical plan. Of that 77%, 59% of employers offer both a traditional PPO plan and HDHP. As employer size grows, it is common for more plans to be offered. On average, employers with more than 500 employees offer 3 medical plans.
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3
2
4
5+
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H D H P A N A LY S I S : D E D U C T I B L E S
2022 Benchmarking Report © HORAN 2022
% OF HORAN EMBEDDED HDHP CLIENTS
How does the deductible in my high deductible health plan (HDHP) compare?
40%
35%
30%
25%
20%
37%
15%
27%
10%
It is important to understand where your benefit plan design stacks up in comparison to other employer plans. Whether your deductible is higher or lower, embedded or non-embedded, there is always something unique and postive to communicate about your benefit plan. As a part of the benchmarking process, it is important to both understand how you compare and market your strengths or your strategy to your current and prospective employees.
5%
12%
10%
7%
5%
2%
0% $2800-2999
$3000-3499
$3500-3999
$4000-4499
$4500-4999
$5000-5999
$6000+
% OF HORAN non-EMBEDDED HDHP CLIENTS 35%
30%
Did You Know?
25%
20%
26%
34%
15%
•
•
Sixty percent of employees spend less than $500 annually in health care. 38% spend between $500-$50,000. 2% spend more than $50,000. Seventy-six percent of HDHPs have embedded deductibles, meaning the individual deductible applies to a single member, even if they are enrolled in a family plan.
10%
14%
14%
5%
0% $1400-1999
$2000-2499
$2500-2999
$3000-3499
3%
3%
0%
$3500-3999
$4000-4499
$4500-4999
6% $5000+
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H D H P A N A LY S I S : C O S T S H A R I N G POST DEDUCTIBLE
2022 Benchmarking Report © HORAN 2022
INDIVIDUAL EMBEDDED OUT-OF-POCKET LEVEL 1.7% 1.0%
35%
30%
HDHP Coinsurance Levels
25%
21.8%
35%
100/0 90/10 85/15
20%
11.8%
15%
coinsurance levels clients
22%
10%
63.7%
80/20
11%
5%
0%
2% $2800-2999
70/30
$3000-3499
16% 7% $3500-3999
7% $4000-4499
$4500-4999
$5000-5999
$6000+
INDIVIDUAL non-EMBEDDED OUT-OF-POCKET LEVEL 40%
35%
Did You Know? •
•
When employers offer 100% coinsurance post deductible, 22% of the plan design includes cost sharing in the form of copays on more frequently utilized services (e.g. office visits, emergency room and pharmacy). Over 36% of HDHP plan designs have coinsurance post-deductible. Of those plans, an 80/20 cost share is the most popular plan design option chosen 66% of the time.
30%
25%
40%
20%
15%
21%
10%
10%
5%
6% 0%
1%
6%
7%
7%
1%
$1400-1999 $2000-2499 $2500-2999 $3000-3499 $3500-3999 $4000-4499 $4500-4999 $5000-5999
$6000+
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P P O - A N A LY S I S : D E D U C T I B L E
2022 Benchmarking Report © HORAN 2022
individual deductibles 30%
how does my ppo plan deductible compare?
25%
20%
15%
27%
10%
5%
19%
18%
13%
13% 7% 1%
2%
0% $0
$100-999
$1,000-1,999 $2,000-2,999 $3,000-3,999 $4,000-4,999 $5,000-5,999
$6,000+
individual out of pocket maximums 30%
25%
20%
15%
27%
10%
17%
5%
0%
8%
13%
16%
16%
3% <$1,000
$1,0001,999 $2,000-2,999 $3,000-3,999 $4,000-4,999 $5,000-5,999
$6,000
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