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New Kaiser Survey on Employer Health Coverage Released

National Study on Employer Health CoverageNearly every September for the past two decades, I have released our survey findings from the Iowa Employer Benefits Study and, during that same month, would eagerly await the results from the annual Kaiser Family Foundation Employer Health Benefits Survey. The Kaiser findings put a complementary national perspective to our Iowa results.

Unfortunately, due to the Covid-19 pandemic, I pumped the brakes on surveying Iowa employers for this year. Kaiser, however, did pursue their national survey and it was released a little later than usual – on October 8.  The results provide an important glimpse into what is happening to employer-sponsored health insurance around the U.S.  Overall, Kaiser surveyed 1,765 non-federal public and private organizations with three or more employees, and from this number, 540 employers were located in 12 Midwestern states (an average of 45 employers per state). The Kaiser study, I must mention, does not break out the results by each state, only by region.

Key Findings by Kaiser

The Kaiser survey is very helpful because it documents national health trends for employer-sponsored plans. Some of the key findings in 2020 include the following:

  • About 56 percent of employers offer health benefits, a percentage that remains unchanged over the past five years. Similar to Iowa, the larger the employer, the more likely health benefits are offered. About half (53 percent) of U.S. organizations with fewer than 50 employees offer health coverage, and nearly all (99 percent) of the organizations surveyed by Kaiser with at least 200 employees offer health coverage.
  • The average single and family premiums increased by four percent over the past year, while worker’s wages increased by 3.4 percent and inflation increased by 2.1 percent.
  • The average annual premium for single health coverage is now $7,470, while the average family health premium is at $21,342. Over the last five years, the family premium has increased over 22 percent, and over the last 10 years, it has increased 55 percent.
  • On average, covered workers contribute 17 percent of the total single coverage premium and 27 percent of the premium for family coverage. In our 2019 Iowa study, we found that covered workers contributed 18.6 percent for single coverage while workers for family coverage contributed 30 percent of the premium.
  • The average single deductible found by Kaiser now stands at $1,644, which is remarkably similar to last year’s $1,655 average. In 2020, 83 percent of covered workers have a deductible in their plan, similar to last year.
  • Most large organizations (81 percent) offer at least one type of wellness or health promotion program. However, among those that offer the coverages, only 11 percent) view the programs as “very effective” at reducing the organization’s health care costs.
  • About 83 percent of surveyed employers who offer health benefits say they are satisfied with the overall choice of providers available through their insurance plans, however, only two-thirds (67 percent) say the same about their mental health and substance abuse networks.

The 2020 Kaiser survey was conducted from January to July, with about half of the interviews conducted before the full extent of the pandemic had been felt by surveyed employers.  Kaiser President and CEO Drew Altman acknowledged, “…our survey shows the burden of health costs on workers remain high, though not getting dramatically worse. Things may look different moving forward as employers grapple with the economic and health upheaval sparked by the pandemic.”

Because of this, next year’s survey will provide a more realistic look at how the pandemic may have impacted employer-sponsored health benefits in the U.S.

To learn more about the Kaiser study, the article was published in the peer-reviewed journal Health Affairs.

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Reflections of a Privileged White Male

This title is redundant. I am privileged because I am white and male.

I usually write about healthcare, employee benefits and insurance issues, but given the racial unrest in our country, I feel compelled to write about a much more complicated and emotional topic.

The senseless killing of George Floyd, another black man while in police custody, has rightfully brought shock and outrage to our country. But with our history of racism, prejudice and social injustice, shock and outrage has never been enough to overcome the inequalities that consistently plague racial minorities.

It is time to be honest with myself, and I implore you to do the same. I am a white male who is protected by our status-quo society, given unwarranted power and prestige at the expense of others. This privilege buffers me from the naked truth of what is happening to non-white citizens. I don’t know what life would be like without having that privilege. Consequently, how can I possibly understand the perspectives and struggles experienced by those without privilege? I simply can’t.  But it is imperative that I begin to try harder.

In 1984, while unknowingly taking a wrong turn on a one-way street in downtown Minneapolis, I was stopped by a police car, sternly directed to step out of my vehicle and place my hands on top of the car. I quickly complied. The officer then forcefully kicked my feet apart and told me that I was driving the wrong way – the interaction felt unnecessarily aggressive.

Despite my privilege – power through wealth, health and opportunity that others are not afforded because of the color of their skin – this simple traffic stop made me feel demeaned. I was humiliated, frightened and incensed about how I was treated. But, unlike George Floyd and too many other people of color, my life was never at risk.

Watching George Floyd’s brazen killing changed everything for me – in a very fundamental way.

Upon reflection, that experience of feeling demeaned 36 years ago makes me realize that privilege is the ability to get angry and see that moment as an isolated incident. That experience lasted 10 minutes…not a lifetime. My societal privileges have shielded me from the reality that people of color are at risk of experiencing much worse every day. I have been complicit by not speaking up about such social injustices.

Dr. Martin Luther King Jr. described this complicity: “A man dies when he refuses to stand up for that which is right. A man dies when he refuses to stand up for justice. A man dies when he refuses to take a stand for that which is true.”

I have not stood up as I should have.

It is said that any society, any nation, is judged on the basis of how it treats its vulnerable members. Dignity should not be discretionary and should be afforded to all people.

So how can we as Americans move forward from this history of systemic racism? I don’t have the answer. However, I do know for real change to happen, it must begin with a confession from me, and from each white American who comfortably accepts the privileges enjoyed. Merely believing you are ‘not racist’ is not enough. We must learn how to be anti-racist in our core beliefs and practices.

I am responsible for educating myself and can no longer remain silent. I must not tolerate ignorant or intentionally harmful actions or words aimed at people of color. Listening and learning are the first steps in the very long and critically important journey ahead. Voting is a necessity – insisting on policy and political reform to eradicate social injustices. We, as a society, must step up.

I do not write this because I am more enlightened than others. But change must start with me – and each of us, individually.  I must recognize that my societal privileges have been at the expense of those who are without. I can certainly do better. Our country can do much better – and together, we must.

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New Trend or Passing Fad?
Remote Work Environments

This blog is the first in a new series regarding the ‘unintentional consequences’ of the COVID-19 pandemic. As our lives have been abruptly altered due to social distancing requirements – both at home and in the workplace – unplanned ‘disruption’ of previous normal activities could permanently replace sacred elements once believed to be unyielding to any change. But COVID-19 just may have dictated new approaches to how we live and work.

Prior to March and the COVID-19 pandemic, shuttered workplace offices and businesses in Iowa and around the country was unthinkable, it just could not happen – or so we believed. The only way it could happen, we reasoned, was through a sci-fi movie that made this horrifically possible.

But it DID happen, and this B-level movie with an apocalyptic plot has now become reality. Jeffrey Cole, a research professor at the University of Southern California, calls this period in our lives the “greatest social science experiment of all time.” Lockdowns, layoffs and massive public measures to contain COVID-19 “will last long after any threat from the virus is gone,” Cole shared. “In the future, we’ll talk about ‘BC,’ before corona, and after.”

As organizations prepare to reopen businesses and offices throughout our country, thermal scanners and hand sanitizers will be the bare minimum required to keep employees and customers safe. The foreseeable future remains extremely murky as to when (or whether) life will return to pre-virus living. Although working remotely has been around for many years, telecommuting has become an uninvited experimentation for many Iowa and U.S. employers and their employees.

Many health experts believe it will be months, if not years, before a ‘new normal’ develops in our country. Scientists struggle to understand the intricacies of COVID-19. The Wild West mentality of searching for a vaccine to protect people has become a major national priority. America, after all, must cobble together innovative approaches to get people back to work while keeping the public safe.

Working Remotely – an ‘Audition’ for the Future

To ensure safe, social distancing to minimize risk of a second (or third) wave of infections, some organizations are planning to eliminate long rows of desks without partitions, replacing them with work-stations sheathed with glass sneeze guards. Having more space between desks and wearing masks will supplement periodic temperature tests. Designating staircases for entry and exit, strategically staggering lunches and work times will also be very much part of new work environments.

The pandemic has offered proof – supportive or not – that in given industries and organizations, some people can work efficiently from a remote location without having to be physically stationed in an office with other co-workers. It must be noted, however, the mental wellbeing of more isolated workers must seriously be considered and addressed before making a leap into expanding remote workplaces. Will future work mean abandoning in-person connections and replacing with internet connections?

A friend recently mentioned that working remotely for a large insurance company revealed enhanced positive customer service metrics that surpassed pre-COVID-19 results.  This revelation provides a new frame of reference to this organization that working remotely can offer surprising benefits to the company…and to its customers. Having these new performance metrics to complement decision making will be critical in the future.

Nationwide Mutual Insurance Company recently announced a permanent transition to a hybrid operating model that consists primarily of four main corporate campuses (Central Ohio, Des Moines, Scottsdale and San Antonio) for in-office personnel and working-from-home in most other locations. Although Nationwide had been investing in technological capabilities to do this for years, the pandemic has urgently nudged Nationwide to make these changes now.

Recent Studies about Telecommuting Experiences

According to data from the Coronavirus Disruption Project, 42 percent of American workers said their telecommuting experience has made them want to work from home more. Not too surprisingly, 61 percent of those teleworking said they are enjoying the relaxed attire and grooming standards, greater flexibility and lack of a commute. Over three-quarters (78 percent) said they are as effective or more so working from home.

From the employer viewpoint, nearly three-quarters of corporate finance officials surveyed in late March by Gartner, a business research and consulting firm, revealed that at least five percent of surveyed organizations will convert on-site workers to permanent remote status as part of their post-COVID cost-cutting efforts.

A survey by USA Today and LinkedIn reveals that, according to 54 percent of respondents ages 18-74, working at home positively impacts work productivity. Reasons cited for higher productivity include time saved from commuting (71 percent), fewer distractions from co-workers (61 percent) and fewer meetings (39 percent).

It is fair to say the virus has served as an audition for organizations to determine whether working remotely can become the norm based on the type of work being performed. The implications of evolving from office locations to remote or home locations can have immense consequences to the economy.

The supply and demand of office space could change significantly if organizations eschew owning larger buildings or rent smaller office space than in the past. Even ‘The Oracle of Omaha’ himself, Warren Buffett, has commented that working from home may very well become the norm because productivity has not suffered in certain scenarios. Buffett commented, “…When change happens in the world, you adjust to it.”

Conclusion

Suffice it to say that most organizations are not yet making radical permanent changes when responding to a seemingly ‘transient’ pandemic. However, developing worksites that can appropriately adapt to COVID-19 – and any future health threats – warrants implementing strategies that go beyond short-term fixes.

While embracing telecommuting, organizations may find low-hanging fruit by purchasing or renting smaller buildings and office spaces and convert these overhead ‘savings’ into other operational investments, which could positively impact employee pay and benefits. Would an upward trend of telecommuting adversely impact sectors that currently cater to office-based employees? Absolutely. Lower fuel consumption for commuting, altered business attire and relaxed cosmetic usage are just a few examples of potential long-term disruption that may occur.

We are only two months into this pandemic, yet much is to be learned by employers about long-term trends versus short-term fads in the workplace setting. My best guess is that the COVID-19 will make telecommuting a more permanent fixture in the business world where it makes most sense to the organization and its customers. As the telecommuting ‘experimentation’ phase continues, each organization must weigh the pros and cons when strategizing for the future.

Next Week’s Discussion:  COVID-19 and Telemedicine

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