Scottsdale, AZ, June 6, 2024 – The 111h Annual AZ Employee Benefits Benchmarking, Healthcare & HR Symposium held today at the Arizona Biltmore provided a wealth of information for employers on trends and strategies for improving the quality and controlling costs of employee benefits.
As part of the program, the results of the annual Arizona Employee Benefits Benchmarking Survey of mid-size employers (10-5,000 employees) were presented. The survey was conducted by Benefit Commerce Group (BCG), an Alera Group company. Highlights include:
- Over 465 Arizona employers have participated in the survey so far this year, representing nearly 90,000 employees and over $1.3 billion in healthcare dollars spent.
- Traditional copay medical insurance plans:
- In Arizona, the median deductible for traditional copay plans was $3,000 in 2024. Although this has remained constant the last few years, it represents a 50% increase from 2018. It is significantly higher than the national median of $1,900.
- At the same time, the median out-of-pocket maximum for copay plans in Arizona was only slightly higher than the national median.
- Total premiums for copay plans in Arizona were significantly lower than national medians: $569 vs $696 for employee-only coverage, $1,776 vs $2,087 for family.
- Consumer-driven health insurance plans (CDHPs):
- In Arizona, the median deductible for these plans was $4,000 in 2024, consistent with 2023 and up from $3,500 in 2022. This compares to a national median of $3,200 in 2024.
- Median out-of-pocket maximum for CDHPs in Arizona was only slightly higher than the national median.
- Employer contributions to health savings accounts (HSAs) and health reimbursement arrangements (HRAs) were a little lower in Arizona than the national medians: $750 vs $800 for employee-only coverage, $1,200 vs $1,500 for family.
- Total premiums for CDHPs in Arizona were significantly lower than the national medians: $511 vs $618 for employee-only coverage, $1,548 vs $1,850 for family.
“During the past few years, we have grown this event to be much broader than just benefits benchmarking. We provide attendees with market updates, healthcare and employee wellbeing trends, and important insights for HR,” said Scott Wood, Managing Partner & Principal of BCG, which hosted today’s event.
In addition to Arizona employers, the survey results include data from thousands of mid-sized employers nationally, representing over $14.6 billion of annual healthcare spend and more than 1 million employees. These numbers will increase throughout the year as the program continues to collect survey data from thousands more employers.
Over 325 people attended this year’s event, including HR professionals, CFOs and CEOs.
Employers who participated in the benchmarking survey will receive individual custom report summaries. They also have the opportunity to access more detailed benchmarking, including data that compares their employee benefits programs to other employers in Arizona and nationally by company size, industry type and geography.
Arizona employers can continue to participate in this survey by visiting the Benefit Commerce Group website page.
Market Updates
In his opening comments, Scott Wood presented data on the increasing cost of healthcare. He pointed out that workers have been losing ground the past 10 years, as deductibles have increased 78% and family premiums are up 47%, while worker earnings only increased 42%.
“Some of the factors impacting this are inflation, pharmacy costs for new drugs, cell and gene therapies, declining population health, and increased demand for mental health services,” Wood said. “There are ways to deal with these changes, and it begins with developing a strategy based on the employer’s workforce and culture.”
Improving Quality Care & Outcomes
A top priority for employers is to improve healthcare quality and outcomes for their employees and families.
“Among Arizona employers, there is increased demand for copay plans in organizations that over the years have moved to CDHPs,” said Chris Hogan, Executive Vice President and Principal of BCG. “This has become a challenge for employers in meeting that demand while still controlling costs. We have developed innovative and exclusive solutions that are saving money for employers, employees and families.
“Quality based medical plans are gaining traction and showing significant results in improving outcomes and saving money,” Hogan said.
Employer Panel Provided Insights on Successful Strategies
A new feature in this year’s symposium was an employer panel of five HR professionals, providing insights on the strategies and programs that are working for them in the areas of innovative programs, employee wellbeing and communication.
The employer panel members were: Maria Chavez, Director, Total Rewards at Goodwill of Central and Northern Arizona; Carlos Juarez, Chief People Officer at Suntec Concrete; Marika Lemmons, Director, Total Rewards & HRIS at Connections Health Solutions; Kim Samuel, Vice President People Experience, Kitchell Corporation; Kurtis Strauel, Director of Human Resources at Mark-Taylor Residential.
Top Trends in Employee Wellbeing Programs
Jessica Somar identified the Top 10 trends in strategies for employee wellbeing.
“It is not surprising that the Number One trend is prioritizing mental and emotional wellbeing,” Somar said. “The key strategies are: providing more options for mental support and lowering cost barriers to care, destigmatizing the mental health discussion in the workplace, providing management training, and offering mental and emotional health education and awareness resources.”
She also discussed the cost of obesity, the benefits and risks of GLP-1 medications, and what employers should consider as they develop programs to help support employees’ weight loss journeys.
Pennies on the Dollar® Retirement Plan Strategy
Most retirement plan employee presentations focus on percentages of contributions and other not-so-easy-to-understand information and terms. George Fraser, a Senior Partner in BCG’s Retirement Plan Services division, explained the concepts he has developed for talking with employees about planning for retirement.
“By focusing on pennies instead of percentages, we open up a whole new way to look at this subject,” Fraser said. “Our approach is to emphasize hope and optimism, rather than fear. We want to help people plan for retirement and live the life they’ve imagined.”
Joe Mechlinski’s presentation — Beyond Boundaries: Mastering Hybrid Work for Thriving Teams
Keynote speaker at today’s symposium was Joe Mechlinski, Founder and CEO of SHIFT, a tech-enabled management consulting firm. Joe is on a mission to change the way we work to transform the way we live. He helps leaders and organizations unblock, unlock, and unleash the potential and momentum of their people.
In today’s presentation, he provided a roadmap for integrating hybrid models, enhancing communication, leveraging AI, and mastering change management.
For more information about the Arizona Employee Benefits Benchmarking Survey or the survey results, contact Benefit Commerce Group at 480-515-5010 or info@benefitcommerce.com or visit our website: www.benefitcommerce.com.
ABOUT Benefit Commerce Group
Benefit Commerce Group (BCG), an Alera Group company, is a progressive and results-driven employee benefits, retirement plan services and commercial property & casualty consulting and brokerage firm. We are committed to creating strategies and solutions that make life easier and better for companies and their HR teams by providing the best cost-effective benefits value for employers, employees and families, including retirement plan services, and providing risk management and insurance services to businesses. We do this through collaboration—with our clients, our own experienced team, and with other Alera Group locations across the nation. Alera Group is the nation’s 16th largest broker, providing powerful solutions in employee benefits, property & casualty, and wealth services for clients across the country. For more information on BCG, call us at 480-515-5010, visit our website: benefitcommerce.com and follow us on LinkedIn.
For more information, contact:
Nancy Zalud
480-565-7924
