1. SHRM Survey Findings: State of Employee Benefits in
the Workplace—Health Care
January 10, 2013

2. Introduction
• This is part three of a series of SHRM surveys examining the state of employee benefits in the
workplace.
• The following topics are included in this six-part series:
Part 1: Wellness initiatives
Part 2: Flexible work arrangements
Part 3: Health care
Part 4: Leveraging benefits to retain employees
Part 5: Leveraging benefits to recruit employees
Part 6: Communicating benefits
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 2

3. Definition
• For the purpose of this survey, total health care costs includes employer-paid premiums,
administration costs and any possible individual medical claims covered by the
employer.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 3

4. Key Findings
• How are organizations trying to control the costs of health care?
The majority (84%) of organizations are “very concerned” about controlling health care
costs. The top three activities organizations have engaged in to control health care costs
are increasing the employee share contributed to the total costs of health care (52%);
providing educational initiatives related to health and wellness (52%); and providing
lower cost generic prescription or over-the-counter drugs (50%).
Almost fifty percent (47%) of organizations reported increasing the employee share
contributed to the total costs of health care in plan year 2012.
• Can employees expect to pay a larger portion of total health care costs in the future?
In 2013, 22% of organizations reported they plan to increase the employee share
contributed to the total costs of health care; 18% do not plan to increase the employee
contribution; and 60% were not sure if the employee contribution will increase.
In the next three to five years, 15% of organizations currently paying the majority or equal
portion of health care costs indicated they believe employees at their organizations will
eventually be paying the majority of health care costs; 50% do not believe employees will
be paying the majority of health care costs; and 35% were not sure.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 4

5. In plan year 2011, did your organization’s total health care costs
increase, decrease or remain the same when compared with the
plan year 2010?
Increased in
74%
2011
Remained
the same in 17%
2011
Decreased
9%
in 2011
Note: n = 399. Respondents whose organizations did not provide health care and those who answered “not sure” were
excluded from this analysis.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 5

6. How concerned is your organization about controlling health
care costs?
Very
concerned 84%
Somewhat
concerned 16%
Not very
1%
concerned
Not at all
0%
concerned
Note: n = 437. Respondents who answered “not sure” were excluded from this analysis. Percentages do not total 100%
due to rounding.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 6

7. Which of the following activities has your organization
engaged in for the purpose of controlling the costs of health
care?
Activity Percentage
Increased the employee share contributed to the total costs of health care 52%
Provided educational initiatives related to health and wellness 52%
Provided lower cost generic prescription or over-the-counter drugs 50%
Created an organizational culture that promotes health and wellness 45%
Increased employee participation in preventive health and wellness initiatives 44%
Offered consumer-directed health plans (e.g., HRAs, HSAs) 42%
Provided incentives or rewards related to health and wellness 40%
Changed health care provider 3%
Other 2%
Note: n = 405. Respondents whose organizations had not conducted any activities to control the costs of health care
were excluded from this analysis. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 7

8. Which one activity has been the most successful in terms of
helping your organization control the costs of health care?
Activity Percentage
Increased the employee share contributed to the total costs of health care 25%
Increased employee participation in preventive health and wellness initiatives 17%
Offered consumer-directed health plans (e.g., HRAs, HSAs) 15%
Provided lower cost generic prescription or over-the-counter drugs 12%
Created an organizational culture that promotes health and wellness 11%
Provided incentives or rewards related to health and wellness 9%
Provided educational initiatives related to health and wellness 5%
Changed health care provider 4%
Other 0%
Note: n = 380. Respondents whose organizations had not conducted any activities to control the costs of health care
were excluded from this analysis.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 8

9. In plan year 2012, did your organization increase the employee
share contributed to the total costs of health care?
Yes 47%
No 53%
Note: n = 410. Respondents who answered “not sure” were excluded from this analysis.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 9

10. In plan year 2012, did your organization increase the employee
share contributed to the total costs of health care?
Comparisons by organization staff size
• Organizations with 25,000 or more employees were more likely than organizations with 1 to 99 employees to increase
the employee share contributed to the total costs of health care in plan year 2012.
Comparisons by organization staff size
25,000 or more employees (77%) > 1 to 99 employees (32%)
Note: Only statistically significant differences are shown.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 10

11. In plan year 2013, does your organization plan to increase the
employee share contributed to the total costs of health care?
Yes 22%
No 18%
Not sure 60%
n = 439
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 11

12. In plan year 2012, is your organization paying the majority
(more than half) of the total health care costs?
Yes, the
organization is
paying the
majority of 90%
health care
costs
No, the
organization
and employee
pay an equal 6%
share of the
health care
costs
No, the
employee is
paying the 3%
majority of the
health care
costs
Note: n = 438. Percentages do not total 100% due to rounding.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 12

13. In three to five years, do you believe employees at your organization
will be paying the majority of health care costs?
Yes 15%
No 50%
Not sure 35%
Note: n = 421. Respondents whose organizations indicated that employees were paying the majority of total health
care costs were excluded from this analysis.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 13

14. In three to five years, do you believe employees at your
organization will be paying the majority of health care costs?
Comparisons by organization staff size
• Organizations with 2,500 or more employees are more likely than those with 1 to 2,499 employees to indicate they
believe employees at their organization will be paying the majority of health care costs in the next three to five years.
Comparisons by organization staff size
1 to 99 employees (14%)
2,500 to 24,999 employees (30%)
> 100 to 499 employees (11%)
25,000 or more employees (38%)
500 to 2,499 employees (13%)
Note: Only statistically significant differences are shown.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 14

15. Organization Demographics
15

16. Demographics: Organization Staff Size
1 to 99
23%
employees
100 to 499
employees 39%
500 to 2,499 22%
employees
2,500 to
24,999 13%
employees
25,000 or
more 3%
employees
n = 447
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 16

17. Demographics: Organization Sector
Privately
owned for- 51%
profit
Nonprofit
organization 22%
Publicly
owned for- 19%
profit
Government
sector 8%
n = 440
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 17

18. Demographics: Organization Industry
Percentage
Health care and social assistance 19%
Manufacturing 19%
Professional, scientific and technical services 17%
Finance and insurance 11%
Government agencies 9%
Educational services 7%
Retail trade 5%
Accommodation and food services 4%
Construction 4%
Information 4%
Religious, grantmaking, civic, professional and similar organizations 4%
Transportation and warehousing 4%
Whole trade 4%
Administrative and support and waste management and remediation services 3%
Arts, entertainment and recreation 3%
Repair and maintenance 3%
Agriculture, forestry, fishing and hunting 2%
Mining 2%
Real estate and rental and leasing 2%
Utilities 2%
Personal and laundry services 1%
Note: n = 447. Percentages do not equal 100% due to multiple response options.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 18

19. Demographics: Other
Does your organization have U.S.- Is your organization a single-unit organization or
based operations (business units) a multi-unit organization?
only, or does it operate Single-unit organization: An organization in
multinationally? which the location and the organization are 39%
U.S.-based operations only 77% one and the same.
Multinational operations 23% Multi-unit organization: An organization that has
61%
n = 447
more than one location.
n = 447
For multi-unit organizations, are HR policies and
What is the HR department/function for practices determined by the multi-unit headquarters,
which you responded throughout this by each work location or by both?
survey?
Multi-unit headquarters determines HR policies
62%
Corporate (company-wide) 75% and practices.
Business unit/division 13% Each work location determines HR policies and
5%
practices.
Facility/location 12%
A combination of both the work location and
n = 286 the multi-unit headquarters determines HR 34%
policies and practices.
Note: n = 286. Percentages do not equal 100% due to
rounding.
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 19

20. SHRM Survey Findings: State of Employee Benefits in
the Workplace—Health Care
Survey Methodology
• Response rate = 12%
• 447 HR professional respondents from a randomly selected sample of SHRM’s
membership participated in this survey
• Margin of error +/- 4%
• Survey fielded March 1, 2012 to April 6, 2012
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 20

21. About SHRM Research
• For more survey/poll findings, visit www.shrm.org/surveys
• For more information about SHRM’s Customized Research Services, visit
www.shrm.org/customizedresearch
• Follow us on Twitter @SHRM_Research
Project leaders:
Shawn Fegley, SPHR, survey research analyst, SHRM Research
Project contributors:
Mark Schmit, Ph.D., SPHR, vice president, SHRM Research
Evren Esen, manager, Survey Research Center, SHRM Research
Christina Lee, SHRM Research
Copy editor:
Katya Scanlan, SHRM Knowledge Center
State of Employee Benefits in the Workplace—Health Care ©SHRM 2012 21