Local Company’s Survey Sheds Hard Light

On Health Care Reforms

DANBURY — Presidential candidates, federal and state politicians, the health care industry, and voters will all be watching closely over the next year to gauge the success — or failure — of major health care reform efforts, especially in states like neighboring Massachusetts.

In place since 2005 and unique in the nation, the Massachusetts health care model requires nearly every resident to buy health insurance. The plan is certain to garner more attention this spring as penalties for companies and employees who have not yet signed up go into effect in April.

Massachusetts employers are continuing to spend more a year than other US states for health insurance on a per employee basis. While the plan is being scrutinized as a potential model upon which to build a universal health care solution in the United States and appeals to many residents because of its comprehensiveness and relatively low cost, employers are struggling to pay for the high health care plan costs, according to United Benefit Advisors (UBA), one of the nation’s leading independent employee benefits advisory organizations.

“The Massachusetts model is the closest concept to a national health care plan that we have today, and some presidential candidates in various ways have historically touted that model as the foundation of their health care solutions,” said Paul Kuveke, president of Kuveke Benefits, an employee benefits consulting and insurance brokerage firm located in Danbury. “Plans offered by employers in Massachusetts are in reality costing a fortune.”

Mr Kuveke believes that during a time when presidential candidates are debating best practices to solve the nation’s health care crisis, Americans should carefully contemplate what is being proposed and weigh their decisions extremely carefully.

The advisory organization recently released results of its latest national benchmarking survey, the 2007 UBA Health Plan Survey, a far-reaching industry analysis of employer health care plan design and cost. Collecting data from 11,723 employers throughout the nation who combined extend health benefits to nearly 4.5 million employees and family members, the survey emphasized small- to midsized employers, who represent the majority of the nation’s three million-plus employers.

The survey’s primary purpose is to provide accurate, relevant health plan benchmarks that employers can use to help them make critical benefits decisions.

“UBA’s survey is the nation’s largest comprehensive benchmark survey of health plan design and costs,” said William Stafford, vice president of member services. “The survey reveals critical statistics about hundreds of health plan factors, including enrollment specifics, plan design and cost and employee premium cost-sharing options, including consumer-driven health plans.”

Results also yield important statistics about prescription drug plans, retirement benefits, and flexible spending accounts, Mr Stafford added.

Nationwide, based on 16,485 health plans included in the 2007 survey, the average annual total cost per employee, which includes both employer and employee contributions, was $6,881. According to UBA’s survey, the five states that had the highest average total annual cost per employee in 2007 were (2006 survey results are included for comparison):

2007                                                                                    Massachusetts    $9,304

        Connecticut                $8,865

        New Jersey                                $8,758

        New Hampshire       $8,601

        Michigan                     $8,520

2006

        Massachusetts         $8,631

        Connecticut               $8,457

        New Jersey                                $8,437

        Michigan                    $7,916

        Rhode Island             $7,725

According to the 2007 UBA Health Plan Survey, the five states that had the lowest average an-nual total cost per employee were (2006 survey results are included for comparison):

2007                                                                                    Arkansas                              $5,169

        Idaho                           $5,564

        Mississippi                                $5,624

        Kentucky                    $5,640

        Arizona                       $5,813

2006

        Mississippi                                $4,533

        Arkansas                   $4,835

        Kentucky                    $5,405

        Idaho                           $5,444

        Arizona                       $5,523

“According to the UBA survey, our area’s total plan cost per employee for 2007 was $8,865,” said Paul Kuveke.

In the spring, UBA plans to release its 2008 Employer Opinion Survey, a companion survey to the Health Plan survey that delineates employers’ specific health care strategies, cost-containment efforts, opinions, and future expectations regarding their health plans. Those interested in participating in this survey may contact Christine Tracey at ctracey@kuveke.com.

Copies of UBA’s 2007 Health Plan Survey are available through local UBA-member firms. To find local UBA-member firms, visit www.benefits.com.