Senior Executives Demonstrating Healthy Behaviors Is More Impactful than Financial Incentives in Employee Health Plan Partici...
September 26 2016 - 3:00PM
Business Wire
As businesses plan for next year’s open enrollment period,
decision makers for employee benefit plans may be surprised to
learn that involvement from company leadership plays more of a key
role in driving employee medical plan participation than do
financial incentives. That according to the 2016 Benefit Analytics
and Benchmarking Study (BABS), conducted by Wells Fargo Insurance,
part of Wells Fargo & Company (NYSE: WFC). Whether establishing
a culture of health, demonstrating support of wellness, or
narrowing their network of healthcare providers – which can save up
to 10% of costs for businesses – employers who take an active role
in plan management can favorably impact the total spend on benefit
plans.
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(Graphic: Wells Fargo)
The Benefit Analytics and Benchmarking study analyzed more than
1,000 employers nationwide to better understand trends and costs
related to employee benefits. It represents current data from 2016
and well over one million employee lives.
Key among the findings was that an employer’s cash contribution
to Health Savings Accounts (HSAs) does not impact employee
participation in plans with HSAs, an attractive lever for employers
looking to reduce benefit costs. In addition, financial incentives
did not motivate employees to opt out, or waive, medical plan
coverage.
“Many of the findings shatter traditional industry narratives
that we have been following for the last 10 years, about cash and
cash-equivalent incentives with employee benefit plans,” said Nick
Allen, national practice leader for customer analytics with Wells
Fargo Insurance’s Employee Benefits National Practice. “As it turns
out, many employees do not view HSA contributions from their
employers as an incentive when choosing plans.”
Involvement from company leadership plays a key role in driving
medical plan participation. Whether establishing a culture of
health, demonstrating support of wellness, or narrowing their
network of healthcare providers – which can save up to 10% of costs
for businesses – employers who take an active role in plan
management can favorably impact the total spend on benefit
plans.
“We’ve seen senior leaders encourage their employees to leave
work early to exercise or to attend their annual physical
appointment. That type of encouragement from management sends a
strong message, not only boosting employee morale, but having a
positive financial impact,” added Dan Gowen, national practice
leader with Wells Fargo Insurance’s Employee Benefits National
Practice.
With healthcare costs expected to continue to rise in 2017,
employers are looking for more ways to manage benefit expenses. The
study found companies that offer more wellness initiatives, such as
walking or biking trails, smoke-free environments and lactation
rooms, reported lower medical premiums. However, less than one in
five employers has a documented strategic plan in place to address
wellness and disease management.
While support from senior leadership is important to increase
engagement, only 45 percent of respondents indicated seeing support
from their executives. Demonstrations of support include active
participation in benefits programs (21 percent), endorsement of
benefits plans to their board of directors (16 percent),
involvement in employee benefits communications (25 percent) and
inclusion of employee health and well-being in organizational goals
and value statements (17 percent).
Wells Fargo’s Employee Benefits National Practice helps
customers with financial underwriting and insurance, health and
productivity risk management, benefits communication and
administration, and compliance with health care reform.
About the 2016 Benefit Analytics and Benchmarking
Study
The 2016 Wells Fargo Insurance Benefit Analytics and
Benchmarking Study (BABS) is a national study of employee benefits.
More than 1,000 employers participated in the study, nationwide.
The responses represented well over one million employee lives,
across three group size market segments (fewer than 200, 199 – 999,
and over 1,000) and dozens of industry classifications.
About Wells Fargo Insurance
Named one of the top 10 insurance brokers in the U.S.
by Business Insurance [1], Wells Fargo
Insurance provides solutions for a wide range of customers,
including retail consumers, high net worth individuals, small
businesses, as well as middle market and large corporate customers.
Wells Fargo Insurance writes or places $11 billion of risk premiums
annually in property, casualty, benefits, international and
personal lines.
[1] 2016 Ranking includes Wells Fargo Insurance
Services USA, Inc., Wells Fargo Insurance, Inc., and Rural
Community Insurance Company
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion
in assets. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, insurance, investments, mortgage, and
consumer and commercial finance through more than 8,600 locations,
13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and
has offices in 36 countries and territories to support customers
who conduct business in the global economy. With approximately
268,000 team members, Wells Fargo serves one in three households in
the United States. Wells Fargo & Company was ranked No. 27 on
Fortune’s 2016 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy our customers’ financial needs and
help them succeed financially. Wells Fargo perspectives are also
available at Wells Fargo Blogs and Wells Fargo Stories.
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version on businesswire.com: http://www.businesswire.com/news/home/20160926006290/en/
Wells Fargo & CompanySarah Tonigan Hatch,
1-505-818-7480Sarah.tonigan@wellsfargo.com@SarahToniganWF
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