Data, Trends & Strategies for Employers to Attract & Retain Employees
Keynote Speaker Nick Reber Describes Data Science That Is Helping Employees Access Quality Healthcare at Lower Costs
Flagstaff, AZ, July 28, 2023 – The results of the 10th annual Arizona Employee Benefits Benchmarking Survey of mid-size employers (10-5,000 employees) were presented today at the Doubletree. This is the first benchmarking results event held in Flagstaff by Benefit Commerce Group, an Alera Group company, with 40+ attendees. Highlights include:
- Over 430 Arizona employers participated in the survey, representing over 93,000 employees and over $1.1 billion in healthcare dollars spent.
- In Arizona, the median deductible for traditional copay plans was $3,000 in 2023, the same as last year, which had been a 50% increase from 2018.
- Median deductible for consumer-driven health plans (CDHPs) in Arizona increased to $4,000 in 2023, from $3,500 in 2022. However, the median employer contributions to healthcare accounts in these CDHPs was $1,000 for individual and $1,500 for family plans, in addition to lower premiums for these plans,
- 29% of Arizona employers surveyed are looking at shifting more cost to employees in 2023, compared to 22% in 2022.
- For the first time, median premiums for employee-only coverage exceeded $500 per month for both CDHP and traditional copay plans in Arizona, with the rates considerably higher nationally.
- On a national basis, the amount spent on outpatient and pharmacy services has increased significantly. The percentage of healthcare costs for outpatient services increased from 19% in 2019 to 29% in 2023, with pharmacy spend increasing from 17% to 22% in the same period.
This benchmarking survey, conducted by Benefit Commerce Group, an Alera Group company, is in its 10th year of data collection. The survey was developed and tabulated by one of the world’s largest and most respected actuarial firms and is in its 21st year nationally.
“Over 430 Arizona employers participated in this survey through mid-May, an increase of 15% over last year,” said Gregg Fendley, Senior Partner & Principal at Benefit Commerce Group, which hosted the Employee Benefits Benchmarking Results Breakfast Seminar. “This is exceptional given the heavy burdens on business leaders and HR professionals. It is evident that the topic of employee benefits is a significant area of focus for employers today, both in terms of enhancing what employees receive and in controlling the costs for businesses and their employees and families.”
In addition to Arizona employers, the survey results include data from thousands of mid-sized employers nationally, representing over $12.8 billion of annual healthcare spend and nearly 1 million employees. These numbers will increase throughout the year as the program continues to collect survey data from thousands more employers.
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.
In addition to the Benefits Benchmarking results, today’s Breakfast Seminar included healthcare industry updates and information on trends in employee benefits.
The Big Picture on the Healthcare Industry
It is not news to anyone that healthcare costs and deductibles have been rising, but what impact does the 40-year-high inflation rate have on medical costs? As Scott Wood, Managing Partner & Principal of Benefit Commerce Group, explained, “Medical inflation typically lags general inflation by about 7-13 months because contracts with providers are for multiple years.”
Last year’s focus was on surviving the pandemic, but this year there are 5 main themes:
- Big Refocus on Employee Health and Wellbeing Is Playing Integral Role in Workforce Strategy
- Long-Term Impacts of COVID-19 Becoming Apparent…with others anticipated in coming years
- Virtual Care is evolving rapidly
- CDHP Plans Continue to Grow
- Top Priorities have shifted, with improving quality and outcomes as the most important objective
Nick Reber’s presentation: The Flight to Quality in Healthcare
Keynote speaker at today’s Benefits Benchmarking Breakfast Seminar was Nick Reber, Founder and CEO of Garner Health, which Reber has led to become one of the fastest-growing healthcare tech companies in the country in just four years.
Data science has made it possible to identify high-quality medical providers. Using data on over 320 million patients across the country, Garner Health has distilled this information to be usable and easily accessible. Reber explained the current data science and how these insights are creating the next step in healthcare consumerism.
For more information about the Arizona Employee Benefits Benchmarking Survey or the survey results, contact Benefit Commerce Group in Flagstaff at 928-779-4107 or email: bobby.fendley@benefitcommerce.com, 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 firms across the nation. Alera Group is the nation’s 15th 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 928-779-4107, visit our website: benefitcommerce.com and follow us on LinkedIn.
For more information, contact:
Nancy Zalud
480-565-7924
