Employers Sour on Insurers' Services, Research Finds | Source: Employee Benefit News
March 10, 2010 9:11AM EST


By Kathleen Koster

U.S. employers are becoming increasingly dissatisfied with their health insurers, a new study finds.

Many have taken a hard hit from the recession and are looking more critically at the services their health insurers offer, while demanding more information technology and strategies to help reduce waste in health care spending and better engage employees in managing their health, [according to a PricewaterhouseCoopers study].

In the study, . . . the consulting firm found that overall satisfaction with health insurers by large employers has decreased to 59 percent from 64 percent in 2008. The view of carriers was even less flattering among small businesses, which registered an overall satisfaction scored that remained steady at 52 percent.

Employers of all sizes, however, are cost-shifting to employees in continuation of recent expense trends. Fully 60 percent of the 250 employers surveyed said they would further increase cost-sharing for health care with their employees in the year ahead.

In part, the cost-shifting might be simple frustration over a perceived lack of options.

"[Employers] feel they don't have adequate data to make decisions around their health plans, future changes and technology. They continue to look at cost-sharing strategies, but at the same time [they] are really focusing on improving the population health as well as trying to make their members better consumers of health care," said Kathryn Stein, a managing director in PricewaterhouseCoopers' health industries.

Claims processing, administrative fees and provider discounts remain among the most important basic service offerings for large and small employers, though wellness programs surpassed provider discounts as the more important offering among large employers.

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