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The One Employee Benefits Trend Worth Fighting Over
December 15, 2015
This is the time of year when human resource (HR) experts discuss the top trends in employee benefits. These annual observations typically focus on health plan design or delivery systems that are gaining momentum or at least not losing it. Think high deductible health plans and private exchanges. Or they concentrate on survey responses from employers about programs they are sticking with despite their lack of effectiveness. Think wellness, employee engagement and communication programs. But there is one on-going benefits trend that never makes an HR top trends list.
Maintaining the financial status quo of health insurers and benefit plan service providers.
There is a raging war going on in both the health care and retirement plan industries that service workplace benefit plans.
Health Care
- Health insurers are in a fight with health care providers, hospitals and pharmaceutical companies over costs that are threatening their profits. Health insurers are showing that they are not afraid to take on other parts of the health care delivery system. They are looking to Congress to reign in pharmaceutical costs, as well as pitting big pharma against itself when negotiating discounts. Additionally, they are cutting providers from the networks who won’t offer better discounts.
- Pharmaceutical companies are in a political and public relations battle over the ever-increasing prices of both specialty and generic drugs. They are also battling with health insurance companies that they blame for providing inadequate prescription drug coverage under their health plans. And, big pharma continues to play the research and development and innovation costs cards to justify its high prices (all while providing no cost information…).
- Health care providers and hospitals are sparring with health insurers over proposed mergers, narrowing of provider networks and low claims reimbursements. There's not much new to see in this fight except to see if the health insurer mergers will lead to greater health care discounts from providers.
The war over workplace retirement plans is not as high profile as what’s going on in health care, but it is important to track nonetheless. In fact, the fight to hold onto the retirement plan service provider status quo is even more epic because it pits the industry against the government over several issues. Continue Reading...
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Denise Perkins
