Managed Care - August 2012 - (Page 20)

M Survey shows employers will continue to offer health coverage ore than two thirds of employers lack a formal health care strategy but 94 percent remain committed to offering and financially supporting health benefit coverage in some form, says a survey of 562 employers last year by Aon Hewitt. Most employers (77 percent) offer health plans with limited choices and pay a percentage of the cost, but within five years, 44 percent say, a corporate exchange will be the preferred approach to providing health care. Only 4 percent of employers now use an exchange. When those 44 percent of employers adopt a corporate exchange, they will also switch to a defined contribution approach in which they will give employees a fixed-dollar amount for employees to buy health care coverage through an exchange, the AON survey reports. Survey respondents included representatives from a broad spectrum of industries, including retail, higher education, banking, finance, and energy. 100 90 80 77% 70 60 50 40 30 20 10 0 4% Employer provides access to a corporate or private health exchange 44% Employer offers a few plans for employees to choose from Other Employer selects plan for all employees Employees choose a plan on their own 31% Current approach In 5 years Source: Corporate Health Exchange Survey: The Time is Now, Rethinking Health Care Coverage, Aon Hewitt ers will be more satisfied with their plan selection.” By 2014, HCSC will offer products through the public exchanges as well, he says. Last August, Bloom Health began operating a private exchange for Medica, a not-for-profit health plan in Minneapolis, and for BCBS of Michigan. Now it serves 118 employers and 70,000-plus memShift under way bers, says Kevin Kickhaefer, Bloom Health’s head Through Bloom Health, HCSC offers its Blue Diof sales and market development. “Insurers are inrections exchange to consumers. On the exchange’s terested in private exchanges so that they can meet Web site, the system asks each potential employers’ demands for more choice enrollee 30 to 35 questions. “The quesand allow employees to choose a plan that they want. We give the consumer tions ask about your personality traits and your risk tolerance,” says Welch. the power of the purse and control over “From 12 plans available under a pilot choosing their plan. Many employees program through Blue Cross of Oklaare choosing plans that are less rich homa, Blue Directions uses the answers than what they had before which will lower costs for the employers and emto recommend three plans to each conployees.” sumer. Seventy percent choose one of the recommended plans. One of the nation’s largest private “Right now, we’re expanding the “Consumers want more choices so Medicare exchanges is Extend Health number of choices available to our that they can make decisions based in San Mateo, Calif. For seven years, members as more employers move to on their individual economic situa- it has served Medicare patients and tions,” says Jeff Welch of HCSC. employers of all sizes. It works with a DC model,” Welch says. “Consumers want more choices so that they can 80 health insurers, has 175 employer make decisions based on their individual economic customers, and 200,000 retirees, says Bryce Wilsituations. Having more choices will mean consumliams, president and CEO. The prospect of provid- testing the concept this year and plan to introduce the exchange to more businesses and to other Blue Cross & Blue Shield plans in 2013. Bloom Health offers plans from a variety of insurers, including HCSC, WellPoint, Blue Cross of Michigan, and Medica. 20 MANAGED CARE / AUGUST 2012

Table of Contents for the Digital Edition of Managed Care - August 2012

Managed Care - August 2012
Editor’s Memo
Contents
Legislation & Regulation
News & Commentary
Medication Management
Evidence Review
Compensation Monitor
Private Exchanges: Practice Makes Perfect
Hospitals and Providers Ganging Up on Plans?
Q&A: Kaiser Permanente’s Sharon Levine, MD
God Save the Health Care System!
Future Points to Greater PBM/Plan Cooperation
Formulary Files
Plan Watch
Tomorrow’s Medicine
Outlook

Managed Care - August 2012