NAHU and ChapterHouse Release Study on Health Insurance Buying Trends

(Arlington, VA - September 23, 2003) - Employers are not looking for dramatic shifts in providing health care coverage to their employees even though on-going health insurance premium increases are of concern. Instead, employers are maintaining their traditional health coverage, but shifting more of the costs to their employees in the form of higher deductibles and co-pays.

Those are among the findings of a nationwide survey conducted by strategy consulting firm ChapterHouse and released today in conjunction with the National Association of Health Underwriters (NAHU).

"This study clearly shows that the health care market is changing, but incrementally rather than dramatically," explained Kevin Corcoran, NAHU executive vice president.

"Employers want to maintain current levels of coverage. In order to offset rising costs, many are asking their employees to pay more out-of-pocket. The most radical shifts in benefit strategies are coming in the area of ancillary benefits, with dramatic shifts from employer-paid to employee-paid coverage." - Michael J. Main, Vice President, ChapterHouse.

"Employers are prepared for double digit increases in 2004. At about a 12% increase in premiums seems to be when employers begin to consider switching health insurance carriers or plans." - K. Corcoran

"However, the cost of health insurance is not the most prevalent cause of dissatisfaction with one's current health plan. In fact, more than half of employers surveyed stated that poor customer service or untimely payment of claims are the biggest reasons given for dissatisfaction, followed by premium rates." - K. Corcoran

"On average, employers are only willing to pay 8.3% more for a plan that offered "five-star" service. While employers are reluctant to pay more for improved service, they are less willing to sacrifice existing service levels in exchange for a lower price." - M. Main

"While there has been much talk recently about Consumer Directed Health Care (CDHC) being the next big thing in health insurance, our results indicate that most employers have only modest interest in these plans. This finding is supported by the fact that most of the brokers surveyed aren't selling these plans and on average think they are still a few years away from becoming a reality." - M. Main

The survey questioned 700 agents and brokers nationwide as well as 200 employee benefit decision makers and is further supported by another 340 broker interviews. ChapterHouse completed the survey in the summer of 2003.

The National Association of Health Underwriters represents more than 17,000 professional health insurance agents and brokers who provide insurance for millions of Americans. NAHU is headquartered in Arlington, VA. For more information, please contact Kelly Loussedes at 703-276-3835 or email kloussedes@nahu.org or visit our web site at www.nahu.org.

ChapterHouse is a strategic consulting firm dedicated to working with CEO's, Boards, Venture Capitalists and top functional leaders of healthcare organizations who are driven to build market and performance-based advantage. ChapterHouse is located outside of Chicago in Downers Grove, IL. For more information, please contact Michael J. Main at 630-968-6880 or email mmain@chapterhouse.com or visit our web site at www.chapterhouse.com.

• NAHU/ChapterHouse Voluntary and Worksite Products Survey Results - Winter 2002

Content copyright © 1998-2008 National Association of Health Underwriters. All rights reserved.
National Association of Health Underwriters · 2000 North 14th Street, Suite 450 · Arlington, VA 22201
703.276.0220 · fax 703.841.7797 · info@nahu.org