Health improvement efforts, like disease management programs, and high-deductible health plans are among the most common strategies CFOs are utilizing to control company healthcare costs today, according to a CFO survey from Deloitte.
Every quarter, Deloitte surveys CFOs of North American companies on burning issues. For the most recent survey, which covered the fourth quarter of 2013, Deloitte tracked responses from 96 CFOs, most of whom led public companies. A vast majority of surveyed companies had more than $1 billion in annual revenue.
Deloitte asked CFOs how they plan to reduce or control their companies' healthcare costs. Here were the responses for seven detailed strategies:
Health improvement efforts (wellness/disease management, free preventive care, etc.)
Already implemented at company: 52 percent
Plan to implement in next year: 20 percent
Considering: 20 percent
Decided against: 8 percent
Have not considered: 0 percent
Increased employee financial responsibility (HDHPs, higher copays, reduced subsidies for retiree/dependent coverage, etc.)
Already implemented at company: 38 percent
Plan to implement in next year: 19 percent
Considering: 28 percent
Decided against: 6 percent
Have not considered: 9 percent
Plan design (consumer-directed health plans or utilization management to detect unnecessary care)
Already implemented at company: 26 percent
Plan to implement in next year: 14 percent
Considering: 31 percent
Decided against: 0 percent
Have not considered: 29 percent
Network management (narrower networks, direct hospital/physician contracting, accountable care organizations, etc.)
Already implemented at company: 20 percent
Plan to implement in next year: 10 percent
Considering: 27 percent
Decided against: 9 percent
Have not considered: 33 percent
Defined contribution (provision of predetermined amount of funding for employee use toward health plan purchased)
Already implemented at company: 18 percent
Plan to implement in next year: 5 percent
Considering: 24 percent
Decided against: 10 percent
Have not considered: 43 percent
Reduced benefits/plan value (cuts to covered benefits)
Already implemented at company: 10 percent
Plan to implement in next year: 8 percent
Considering: 26 percent
Decided against: 22 percent
Have not considered: 33 percent
Limit/control hours worked (reduce number of full-time equivalent employees)
Already implemented at company: 1 percent
Plan to implement in next year: 1 percent
Considering: 19 percent
Decided against: 15 percent
Have not considered: 64 percent
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