Employers Continue to Invest in Health of Workers

March 9, 2010 (PLANSPONSOR.com) - Most U.S. employers say they are continuing to make investments today that will improve the long-term health and productivity of their workforce, according to a new survey by Hewitt Associates.

Hewitt’s annual health care trends survey of nearly 600 large U.S. companies representing more than 10 million employees shows that employers’ short- and long-term approaches to health care remain consistent with last year. Almost two-thirds (65%) say they currently invest in long-term solutions to improve the overall health and productivity of their workforce, while less than a third (32%) are primarily focused on controlling their annual health care costs.

Just 3% reported currently moving away from directly sponsoring health care, according to a news release.

When asked about their future approach to health care, more companies (80%) plan to focus on improving health and productivity in the next three to five years.

The survey, conducted from December 2009 to January 2010, found that employer concerns regarding rapidly rising health care costs continue to grow. Almost all companies (95%) say managing costs is a top business issue, up slightly from 91% in 2009.

However, Hewitt found most companies are just beginning to consider and implement the types of strategies, tactics, and goals that will create positive and sustainable improvements in employee health and constrain escalating health care costs. Fewer than half (42%) of employers have a formal policy or strategic health care plan in place - consistent with last year.

In addition, while 80% say offering competitive benefits is a key component of their health care strategy, most indicate managing cost as their top business priority - a clear disconnect between HR benefit goals and overall business objectives, the announcement said.