Employer Satisfaction with Health Plan Providers Declining

January 19, 2010 (PLANSPONSOR.com) - Employers in the United States have become less satisfied with their health plan providers, according to a study by PricewaterhouseCoopers’ Health Research Institute.

Overall satisfaction of health insurers by large employers has decreased to 59% from 64% in 2008, according to a press release. Small employers continue to be less satisfied with health insurers than large employers, with overall satisfaction remaining steady at 52%. 

The research indicates that employers of all sizes are taking a critical look at their health benefits strategy and the value they derive from it.  They are looking to their health plan providers for information, technology and strategies to help reduce waste in health care spending and better engage employees in managing their health.

Claims processing, administrative fees, and provider discounts remain among the most important basic service offerings for large and small employers, though among large employers, wellness programs surpassed provider discounts as the more important offering.

Interest in personal technology tools such as personal health records and online comparison tools is surging, the press release said. Nearly half of all employers say it is important for insurers to offer these tools, but less than half are satisfied with what they are getting.

Other research findings included:

• Employee cost-sharing continues to be the most prevalent cost-cutting strategy for employers. Sixty percent of employers surveyed said they would further increase cost-sharing for health care with their employees in the year ahead.
• While wellness and disease management programs are popular among employers – 71% of companies surveyed now offer wellness programs and 67% offer disease management programs - companies that offer them are frustrated with the low level of employee participation, which continues to hover at around 50%. Many employers are finding that simple financial incentives such as cash, gift cards, and annual premium savings are no longer working as a way to engage employees.