You might think that controlling costs is the primary concern of the nation’s chief financial officers when it comes to health benefits, but a new survey from the Integrated Benefits Institute reveals otherwise.
The survey, which polled 345 CFOs and other senior finance executives at some of the largest U.S. companies, shows that while cost management is a major concern, other goals also rank high — including using health benefits to attract and keep top performers and helping employees better manage their health. The survey also illustrates the big impact the Affordable Care Act has had on corporate health benefits.
Nearly half (44 percent) of the respondents cited controlling costs as the most important of their company’s top five goals for health and related benefits. However, almost as many (36 percent) selected other goals as the most important, including attracting, retaining and satisfying talent (15 percent), helping employees become better healthcare consumers (10 percent), helping enrollees become healthier (9 percent), and improving workforce productivity (2 percent).
The survey found that 24 percent of CFOs said the finance function’s role in benefits decision-making has expanded since the ACA’s passage, compared to only 5 percent who said it has shrunk since then. Cost-sharing is also on the rise since the ACA: About half the CFOs said their company is increasing its offerings of high-deductible healthcare plans for employees and their dependents and raising premium shares and out-of-pocket expenses.
The ACA has also spurred more companies to up their wellness game: More than half the CFOs said their company has enhanced its health and well-being programs since the law was enacted and more than one-third enhanced incentives for adopting healthy lifestyles and wellness-program participation.
Interestingly, CFOs who said their companies place great importance on attracting and retaining talent and improving productivity said their organizations were less likely to shift healthcare costs to employees.
The survey results demonstrate that CFOs understand the importance of health-management strategies, says IBI President Dr. Thomas Parry:
These findings go against the popular notion that CFOs demand a hard ROI from health promotion programs, and that companies are scrambling for the cheapest options. If we want to understand where companies are going with health benefits, we need to think of them within the context of business strategies beyond cutting costs.
Parry and two CFO panelists will discuss the role of health and benefits at the upcoming Health & Benefits Leadership Conference on April 1 in Las Vegas.