Benefits October 22, 2000

Health Benefits Burden Employers

October 22, 2000 (PLANSPONSOR.com) - An overwhelming 84% of large employers say they spend too much time managing day-to-day health benefits, according to a new survey.
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Still, most large employers (70%) say they are unlikely to stop offering health benefits, at least for the next two to three years, according to the survey by William M. Mercer.

While overall only 5% report high interest in an exit strategy and just 4% report a high likelihood of implementing such a strategy, those in finance, insurance, and services industries appear to be seriously reconsidering their options. 

More than half of the companies in those industries report they are very (15%) or somewhat (39%) interested in considering an exit option.

Dissatisfied employers are examining their own operations, with an eye toward:

  • saving money
  • increasing employee satisfaction
  • improving worker productivity

Despite the risks presented by a tight job market, some employers indicated they might begin modifying their plans as early as next year.

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