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Shrm poll health_care2_seniormanagement
1.
SHRM Poll: Organizations’
Response to Health Care Reform—Senior Management’s Requests September 17, 2010
2.
Health Care Reform
Series: Poll 2 Introduction Landmark legislation that brought about major reforms in health care coverage in the United States was enacted in March 2010. The law affects employers and HR professionals in a variety of ways. SHRM will be conducting a series of polls on health care reform and its implications for employers and employees. This presentation covers the findings from the second poll in this series, which was conducted in July 2010. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 2
3.
Key Findings •
Has senior management asked HR to provide an overview of the implications of the new law? Larger organizations (those with 500 to 24,999 employees) were more likely than organizations with fewer than 500 employees to report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization. • Are leaders of organizations focusing on the short-term or long-term implications of the new law? HR professionals appear to be focused first on addressing short-term implications of the law with organizational leadership, before addressing long-term and more strategic issues. • What areas are HR professionals addressing with their organizational leadership in relation to the new law? HR professionals report that they addressing overall knowledge of the new law, actions the organization needs to take immediately, changes the organization needs to make to its current health care plan to be compliant and the immediate financial implications (for 2010 and 2011). Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 3
4.
In your organization,
has senior management asked HR to provide an overview of the implications of the new health care reform law for your organization? No, 46% Yes, 54% Note: n = 695. “Not sure” responses were excluded from this analysis. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 4
5.
In your organization,
has senior management asked HR to provide an overview of the implications of the new health care reform law for your organization? Comparison by Organization’s Staff Size, Sector, Operations Location and Medical Benefit Funding • By staff size: Larger organizations (those with 500 to 24,999 employees) were more likely than organizations with fewer than 500 employees to report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization. Smaller Organizations Larger Organizations Differences Based on Organization Staff Size •100 to 499 employees (43%) •500 to 2,499 employees (63%) Larger organizations > smaller •2,500 to 24,999 employees organizations (74%) • By sector: Publicly owned for-profits (68%) were more likely than privately owned for-profits (51%) and nonprofits (51%) to report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization. • By operations location: Organizations with multinational operations (62%) were more likely than U.S.-based only organizations (51%) to report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization. • By medical benefit funding: Organizations with self-insured medical benefit (64%) were more likely than insured organizations (41%) to report that senior management asked HR to provide an overview of the implications of the new health care reform law for their organization. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 5
6.
Which of the
following issues has your HR team addressed or is it continuing to address in order to help the leadership of your organization better understand the new health care reform law and its implications? Overall knowledge of the new health care reform law 51% Actions your organization needs to take immediately 49% Changes your organization needs to make to its current health care plan to be compliant 47% The immediate financial implications (2010 and 2011) 46% The future financial implications (beyond 2011) 39% Affordability of your health care plan for current employees 31% Health care as part of the total compensation package 24% Resources available to help the organization analyze, design and communicate health care plan to stakeholders 20% Possible penalties your organization could incur if it doesn’t comply with new health care reform law, decides not to offer 16% health care to employees or makes changes to the plan Deciding who is the best resource (e.g., counsel/consultant) to explain the new health care reform law 13% Investigating the impact of the new health care reform law on part-time employees in the organization 9% Determining the impact on recruitment and retention strategies 7% Developing a plan on how to figure out each employee’s household income 3% Other 3% • HR professionals appear to be focused first on addressing short-term implications of the law with organizational leadership, before addressing long-term and more strategic issues. Note: n = 814. Percentages do not total 100% as multiple response was allowed. Respondents were allowed to select up to three options. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 6
7.
Which of the
following issues has your HR team addressed or is it continuing to address in order to help the leadership of your organization better understand the new health care reform law and its implications? Comparison by Organization’s Staff Size, Union Status and Medical Benefit Funding • The immediate financial implications (2010 and 2011) (by staff size): Larger organizations (those with 500 to 24,999 employees) were more likely than organizations with fewer than 500 employees to report that the issue they have addressed or are continuing to address to help their leadership better understand the health care reform law is the immediate financial implications (2010 and 2011). Smaller Organizations Larger Organizations Differences Based on Organization Staff Size •100 to 499 employees (35%) •500 to 2,499 employees (54%) Larger organizations > smaller •2,500 to 24,999 employees organizations (59%) • The immediate financial implications (2010 and 2011) (by medical benefit funding): Self-insured organizations (55%) were more likely than insured organizations (38%) to report that the issue they have addressed or are continuing to address to help their leadership better understand the health care reform law is the immediate financial implications (2010 and 2011). • The future financial implications (beyond 2011) (by medical benefit funding): Self-insured organizations (45%) were more likely than insured organizations (32%) to report that the issue they have addressed or are continuing to address to help their leadership better understand the health care reform law is the future financial implications (beyond 2011). • Changes your organization needs to make to its current health care plan to be compliant (by medical benefit funding): Self-insured organizations (57%) were more likely than insured organizations (36%) to report that the issue they have addressed or are continuing to address to help their leadership better understand the health care reform law is changes their organization needs to make to its current health care plan to be compliant . • Health care as part of the total compensation package (by union status): Organizations with no employees under a collective bargaining agreement (33%) were more likely than unionized organizations (23%) to report that the issue they have addressed or are continuing to address to help their leadership better understand the health care reform law is health care as part of the total compensation package. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 7
8.
How is your
organization’s primary medical benefit currently funded? Insured, 44% Self-insured, 56% Note: n = 749 Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 8
9.
How is your
organization’s primary medical benefit currently funded? Comparison by Organization’s Staff Size, Sector, Operations Location, Sector and Union Status • By staff size: Larger organizations (those with 500 or more employees) were more likely than organizations with fewer than 500 employees to report that their organization’s primary medical benefit is self-insured. Smaller Organizations Larger Organizations Differences Based on Organization Staff Size •100 to 499 employees (39%) •500 to 2,499 employees (69%) Larger organizations > smaller •2,500 to 24,999 employees organizations (84%) •25,000 or more employees (84%) • By operations location: Organizations with multinational operations (71%) were more likely than U.S.-based (51%) organizations to report that their organization’s primary medical benefit is self-insured. • By sector: Publicly owned for-profits (72%) were more likely than privately owned for-profits (50%) and nonprofits (49%) to report that their organization’s primary medical benefit is self-insured. • By union status: Unionized organizations (64%) were more likely than non-unionized (54%) organizations to report that their organization’s primary medical benefit is self-insured. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 9
10.
Demographics: Organization Industry
Industry Manufacturing –other 18% Health care, social assistance (e.g., hospitals, clinics) 13% Financial services (e.g., banking) 8% Services –professional, scientific, technical, legal 7% Educational services/education 6% Government/public administration—federal, state/local, tribal 5% 5% Retail/wholesale trade Construction, mining, oil and gas 4% 4% Insurance Note: n = 754. Percentages do not total 100% due to rounding. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 10
11.
Demographics: Organization Industry
(continued) Industry Other services (e.g., other nonprofit, church/religious organizations) 4% Transportation, warehousing (e.g., distribution) 3% High-tech 3% Services—accommodation, food and drinking places 3% Utilities 2% Real estate, rental, leasing 2% Publishing, broadcasting, other media 2% Manufacturing—auto/auto-related 2% Arts, entertainment, recreation 1% Consulting 1% Telecommunications 1% Association—professional/trade 0% Pharmaceutical 0% Biotech 0% Other 5% Note: n = 754. Percentages do not total 100% due to rounding. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 11
12.
Demographics: Organization Sector
Privately owned for-profit organization 47% Publicly owned for-profit organization 21% Nonprofit organization 20% Government sector 8% Other 4% 0% 10% 20% 30% 40% 50% 60% Note: n = 756 Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 12
13.
Demographics: Organization Staff
Size 50% 40% 35% 30% 27% 26% 20% 10% 6% 5% 0% 50 to 99 employees 100 to 499 employees 500 to 2499 employees 2500 to 24999 25000 or more employees employees Note: n = 497. Percentages do not total 100% due to rounding. Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 13
14.
Demographics: Other
Does the organization have U.S.-based Is organization a single-unit company or a multi- operations (business units) only or unit company? does it operate multinationally? Single-unit company: A 29% company in which the U.S.-based operations 75% location and the company are one and the same Multinational operations 25% Multi-unit company: A 71% company that has more than Note: n = 750 one location Note: n = 763 • 19% of organizations indicated that Are HR policies and practices determined by employees at their work location were the multi-unit corporate headquarters, by each unionized. work location or both? Note: n = 755 Multi-unit headquarters determines 64% HR policies and practices Each work location determines HR 1% policies and practices A combination of both the work 35% location and the multi-unit headquarters determine HR policies and practices Note: n = 556 Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 14
15.
SHRM Poll: Organizations’
Response to Health Care Reform – Poll 2 Methodology • Response rate = 21% • Sample comprised of 1,095 randomly selected HR professionals with the job title of manager and above, as well as HR professionals in the compensation and benefits functional area. All analyses were based on respondents working at organizations with a staff size of 50 employees or more. • Margin of error is +/- 3% • Survey fielded July 22–August 3, 2010 For more poll findings, visit: www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research Organizations’ Response to Health Care Reform – Senior Management’s Requests | ©SHRM 2010 15
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