HighRoads survey provides insights into how acute health systems respond to ACA

A HighRoads survey of hospital industry employers shows 2011 health care costs for both hospital employers and employees are increasing, and hospitals are looking at leaner budgets and further cost control, as a result. The HighRoads 2011 Hospital Employer Health Benefits Survey provides insights into how acute health systems are responding to the Affordable Care Act by consolidating operations, enhancing wellness programs, and addressing benefit administration and other issues.

Compliance with ACA is also of growing concern to hospital industry employers as it has brought a myriad of new health care reform regulations.

HighRoads' survey analyzed data from hospital-based employers representing approximately 760 facilities and over 485,000 full-time equivalent employees. Highlights of the survey findings include:

• 2011 Per-Employee-Per-Year (PEPY) Medical/Rx costs of $9,991 represent approximately an 8.5% gross per capita increase over the past 12 months
• 2011 corresponding employee contributions of $1,914 represent about a 7.7% increase over the same period.
• Full-time employees, on average, will pay 19% towards the premium or budgeted medical/Rx rate in 2011. Including out-of-pocket costs, employees will pay approximately 26% of the total cost of health care.
• Over half of respondents (52%) believe that the passage of health care reform may decrease revenue to the organization. Additionally, 63% of respondents have been asked to remove costs or otherwise operate in a leaner environment as a direct result of the passage of ACA.
• About 80% of respondents indicated that their organization offers health risk appraisals; however, only about 50% offer biometric screenings.

"The passage of ACA has created new challenges and opportunities for hospital human resources staff. They are charged with complying with a growing list of federal regulations, and with being able to attract staff with sufficient benefits and compensation," observed Josh Miley, Principal, HighRoads. "At HighRoads we see these challenges continuing into 2012 as more regulations take effect."