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2021 Iowa Employer Benefits Study
POSTPONED

2021 Iowa Employer Benefits Study POSTPONEDAs many of you are aware, the Iowa Employer Benefits Study was not performed in 2020. The reason was quite simple – the unprecedented uncertainty facing most Iowa businesses during the Covid-19 pandemic. As difficult as the decision to postpone was, it was no doubt the right one.

In early 2020, during the beginning of the pandemic, we attempted to perform the survey and quickly learned that fewer organizations desired to be interviewed, which prompted us to suspend the survey process. The cost to perform surveys increases if more organizations need to be interviewed.

Now in 2021, another tough decision has been made. After visiting with many individuals and organizations, I have concluded that 2021 is just too soon to pursue this important survey.  I could certainly randomly interview 1,000 Iowa organizations, but many organizations are still digging out of massive business and personnel upheavals that will require a ‘reboot’ of their workplace practices.

We understand that many individuals who respond to our surveys are charged with multiple organzational tasks that come with time pressures. My desire is to be mindful of the key issues facing employers and to, yet again, refrain from being an additional distraction during this time. I do look forward, however, to performing an assessment this fall about whether to pursue the 2022 survey. By that time, we will have a much better idea of what changes Iowa employers will have made in their workplaces and how these changes may impact future workplace environments.

I am confident that 2021 will prove to be a year of great progress in overcoming the personal and professional challenges we have all endured.

Please continue to stay safe!

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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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2020 Iowa Employer Benefits Study and COVID-19

Given the local and worldwide circumstances due to the COVID-19 pandemic, we are all taking things “day-by-day” for at least the foreseeable future – both personally and professionally. The ‘predictable’ lives we had just a few short weeks ago, no longer resemble what we have today.

Because of the unprecedented uncertainty for all businesses in this ‘new’ economic climate, we have found (while pursuing the 2020 survey) the response level of Iowa employers has dropped significantly compared to last year at this time. Frankly, ALL organizations are going through massive business and personnel upheavals that will require a ‘reboot’ of their workplace practices – and for some, perhaps ensuring mere survival. In light of this, because we have an annual goal of surveying 1,000 organizations, it will be very difficult to successfully ‘invite’ Iowa employers to participate in this year’s survey. My desire is to be mindful of the key issues facing employers and to refrain from our survey activity.

Due to this development, and with regret, I must suspend this year’s survey. At some undetermined time in the future, we will pursue a revised survey using newer, perhaps more pertinent questions, to gauge the benefit practices of Iowa employers.

I look forward to that time!

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While at home the past few weeks, I read the best-selling book by Erik Larson, “The Splendid and the Vile.” This book describes the one-year period – 1940 to 1941 – when Germany was incessantly bombing Great Britain, more specifically London. Despite not having the military support of the United States at that given time, the grit and courage that British Prime Minister Winston Churchill demonstrated would fundamentally decide the fate of his country, and frankly, the entire world.

During that difficult period of austerity, Churchill’s actions and words provided the necessary inspiration for his country citizens to persevere. Two of Churchill’s inspiring quotes are most poignant for me. No matter how difficult the circumstances are for us in today’s world, we have hope to overcome these obstacles.

“Victory at all costs. Victory in spite of all terror. Victory however long and hard the road may be. For without victory there is no survival.”

“It’s not enough that we do our best: sometimes we have to do what’s required.”

It is no wonder why Churchill is considered to be one of the most influential leaders of the 20th century.

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