LINCOLNSHIRE, Ill.,
Oct. 8, 2012 /PRNewswire/ -- U.S.
employees soon will be asked to make decisions about their 2013
benefits during open enrollment season. According to Aon Hewitt,
the global human resources solutions business of Aon plc (NYSE:
AON), the benefits offered to employees next year may be impacted
by a number of factors, including rising health care costs, the
declining health of the population and phase-in of provisions under
the Patient Protection and Affordable Care Act (PPACA).
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According to Aon Hewitt, 55 percent of employees default to
their current benefit coverage for the coming year, instead of
actively reassessing their plan options. What many workers do not
realize is that the old selection may not be the best option.
Data from Aon Hewitt shows health care costs are expected to
rise 6.3 percent in 2013 to $11,188
per employee, compared to $10,522 in
2012. In most cases, employers still shoulder much of the cost, but
workers should expect to see their portion of the total cost rise
in the form of increased premiums and out-of-pocket costs. The
amount employees will pay for their health care benefits in 2013 is
expected to be close to $5,000 —
$2,385 in premiums and another
$2,449 in out-of-pocket
costs.
"It is easy to fall back on the status quo and assume that your
2012 benefits choices will continue to meet your needs in 2013,"
said Craig Rosenberg, Aon Hewitt's
national leader for Health & Welfare Benefits Administration.
"But changes to family health care needs, employer plan offerings
and costs make it important for workers to reevaluate their
selections every year."
Aon Hewitt offers the following tips for employees this open
enrollment season:
Understand what's changing for you and with your
benefits. Start by evaluating how you and your family used
health care in 2012. Consider how much was spent out-of-pocket
on deductibles and coinsurance, the number of doctor visits and the
cost of ongoing medications. If you are participating in a Flexible
Spending Account (FSA), evaluate if the contribution is too little
or too much based on actual expenses. If you currently have a
Health Reimbursement Account (HRA) or Health Savings Account (HSA),
determine what remaining balance you might have to apply to 2013
expenses. In the case of an HRA, check to confirm whether
unused funds roll over to 2013.
Beginning in 2013 under the PPACA, employees' contributions to
Health Care FSAs will be capped at $2,500 annually. Previously, there was no
regulatory limit but many employers capped contributions at
$5,000 or more. However, most workers
do not contribute at that level. Among Aon Hewitt clients,
employees contribute an average of $1,600 annually to their FSAs.
In addition, carefully review information from your employer
about your 2013 benefit plan offerings. According to Aon Hewitt,
more employers are offering Consumer-Driven Health Plans (CDHPs)
than Health Maintenance Organization (HMO) options. As a result,
plan options offered in the past may no longer be available.
Also new this year under the PPACA, employees will have access
to Summary of Benefits and Coverage (SBC) statements that provide a
standardized overview of health plan coverage features, such as
coinsurance, deductibles, and examples of out-of-pocket costs
related to having a child and managing Type 2 diabetes. For workers
at most large employers that provide decision support tools, SBCs
will serve primarily as a supplement. For those employees at
smaller companies, SBCs may provide new information that will be
helpful in selecting coverage for 2013.
Take advantage of incentives and opportunities to
improve your health. Employers continue to offer tools to help
employees, and increasingly, their spouses and partners, better
understand their health risks. According to a recent Aon Hewitt
survey, most companies (68 percent) offer Health Risk
Questionnaires (HRQs) and 57 percent offer biometric screenings
such as cholesterol, blood pressure and blood glucose.
Recognizing the importance of these programs, many companies
offer incentives to participate. In fact, 84 percent of employers
that offer HRQs provide incentives for completing them. Often,
these incentives are monetary, like a reduction in medical premium
cost, but they can also take the form of a reduction to your
deductible so the plan starts paying benefits sooner.
"In order to manage rising health care costs, employers are
increasingly turning toward strategies aimed at improving the
overall health of their workers by encouraging behavior change and
making them more accountable for the health decisions they make,"
said Jim Winkler, chief innovation
officer for Health & Benefits at Aon Hewitt. "Employees should
expect to see incentive programs like in past years, but now,
companies are moving past simply asking workers to participate—they
want to see improved health results too."
Aon Hewitt advises workers to take full advantage of all health
and wellness programs available. In addition to receiving
incentives from your employer, you can benefit from longer-term
savings by getting a good picture of your health and identifying
and addressing any health risks as soon as you can. Many employers
make it convenient to complete these health improvement actions by
offering worksite biometric testing and health evaluations, on-line
HRQs, and follow-up so you can take steps to improve your health
based on the information you learn.
Consider whether a Consumer Driven Health Plan meets your
needs. CDHPs continue to rise in popularity as another way to
encourage you to take an active part in managing your health care.
Employers typically pair CDHPs with either an HRA or an
HSA. Employees can use one of these accounts to help pay for
eligible out-of-pocket health care costs, controlling how and when
they use these funds.
CDHPs may be available at a lower cost than other coverage.
However, it is also important to consider how much you will spend
out of pocket – for example, before you meet your deductible. In
the case of CDHPs offered with an HSA, the deductible may be higher
than you have experienced in the past. Employees should also ensure
they understand how the accounts – either HRA or HSA –
work.
Key factors to keep in mind:
- HRAs: Review how much your employer will contribute as well as
how unused funds are handled at the end of the year or if you
terminate.
- HSA: Determine how much you will be able to contribute in
2013 – up to $3,250 ($6,450 if you have family coverage). If you will
be age 55 or older in 2013, you can contribute an additional
$1,000. These funds often grow over
time by earning tax-free interest, and there is no "use it or lose
it" rule, even if you leave your company. In some cases,
employers make contributions that supplement money you
contribute.
"While workers are more frequently enrolling in CDHPs with an
HSA or HRA because they often pay less out of their paychecks, they
find these plans and accounts confusing and hard to navigate,
especially at the beginning," said Joann
Hall Swenson, partner and health engagement best practice
leader at Aon Hewitt. "However, employees also report that they are
often willing to reenroll in CDHPs. As they become more familiar
with these plans, they find that they like having a better sense of
what their care and prescriptions actually cost and the ability to
manage their costs more carefully. Many workers even report that
they make smarter health decisions as a result of being in this
type of plan."
Assess dependent coverage. Finally, consider which
dependents will need to be covered in 2013. The PPACA allows you to
cover your children through the month in which they reach age 26 in
most cases, regardless if they are full-time students. It is
important to consider all available coverage options for
dependents. If a spouse or partner has access to medical
coverage through an employer, it may be more cost effective to
enroll in that coverage instead, particularly since some companies
apply a surcharge to cover a spouse or partner who has declined
coverage from their own employer.
The new SBC statements will be a helpful tool in comparing
coverage from your employer with coverage available from other
sources since they present information in a standardized way.
Rosenberg added, "The health care landscape continues to change,
and 2013 will be no exception. It is critically important that
employees spend time to understand their needs, assess the options
available to them and use the tools and resources available to
effectively meet their needs and the needs of their families."
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About Aon Hewitt
Aon Hewitt is the global leader in human resource
solutions. The company partners with organizations to solve
their most complex benefits, talent and related financial
challenges, and improve business performance. Aon Hewitt
designs, implements, communicates and administers a wide range of
human capital, retirement, investment management, health care,
compensation and talent management strategies. With more than
29,000 professionals in 90 countries, Aon Hewitt makes the world a
better place to work for clients and their employees. For
more information on Aon Hewitt, please visit www.aonhewitt.com.
About Aon
Aon plc (NYSE:AON) is the leading global provider of risk
management, insurance and reinsurance brokerage, and human
resources solutions and outsourcing services. Through its more than
62,000 colleagues worldwide, Aon unites to empower results for
clients in over 120 countries via innovative and effective risk and
people solutions and through industry-leading global resources and
technical expertise. Aon has been named repeatedly as the world's
best broker, best insurance intermediary, reinsurance intermediary,
captives manager and best employee benefits consulting firm by
multiple industry sources. Visit www.aon.com for more information
on Aon and www.aon.com/manchesterunited to learn about Aon's global
partnership and shirt sponsorship with Manchester United.
Media Contacts:
MacKenzie Lucas,
847-442-2995, mackenzie.lucas@aonhewitt.com
Maurissa Kanter, 847-442-0952,
maurissa.kanter@aonhewitt.com
SOURCE Aon plc