HighRoads Data Shows Hospital Employers Are Further Tightening Budgets in Response to Affordable Care Act

2011 HealthCare Cost Share for Hospital Employees Increasing to 26 Percent

BOSTON--(BUSINESS WIRE)-- A HighRoads survey of hospital industry employers shows 2011 health care costs for both hospital employers and employees are increasing, and hospitals are looking at leaner budgets and further cost control, as a result. The HighRoads 2011 Hospital Employer Health Benefits Survey provides insights into how acute health systems are responding to the Affordable Care Act by consolidating operations, enhancing wellness programs, and addressing benefit administration and other issues.

Compliance with ACA is also of growing concern to hospital industry employers as it has brought a myriad of new health care reform regulations.

HighRoads’ survey analyzed data from hospital-based employers representing approximately 760 facilities and over 485,000 full-time equivalent employees. Highlights of the survey findings include:

  • 2011 Per-Employee-Per-Year (PEPY) Medical/Rx costs of $9,991 represent approximately an 8.5% gross per capita increase over the past 12 months
  • 2011 corresponding employee contributions of $1,914 represent about a 7.7% increase over the same period.
  • Full-time employees, on average, will pay 19% towards the premium or budgeted medical/Rx rate in 2011. Including out-of-pocket costs, employees will pay approximately 26% of the total cost of health care.
  • Over half of respondents (52%) believe that the passage of health care reform may decrease revenue to the organization. Additionally, 63% of respondents have been asked to remove costs or otherwise operate in a leaner environment as a direct result of the passage of ACA.
  • About 80% of respondents indicated that their organization offers health risk appraisals; however, only about 50% offer biometric screenings.

“The passage of ACA has created new challenges and opportunities for hospital human resources staff. They are charged with complying with a growing list of federal regulations, and with being able to attract staff with sufficient benefits and compensation,” observed Josh Miley, Principal, HighRoads. “At HighRoads we see these challenges continuing into 2012 as more regulations take effect.”

For more survey details, contact Josh Miley at [email protected]

About HighRoads

The world’s leading employers choose HighRoads to gain complete control over their health care costs and compliance. With HighRoads’ service, employers have online access to benefits plan information and pricing, competitive benefits benchmarks, and complete benefits supply chain management. The privately-held company is headquartered in Woburn, MA. For more information, visit www.HighRoads.com.


HighRoads Company Contact:
Petra Marino, 781-503-4031
[email protected]
HighRoads Media Contact:
Erin Jones, 704-664-2170
[email protected]

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:   Health  Hospitals  Other Health  Professional Services  Insurance  Consumer  Family  General Health