Meeting the Challenge
Maximizing the value of employer-sponsored health care
Employer-sponsored health care (ESHC) is the dominant source of health care coverage for the civilian workforce in the United States. According to the 2010 Census, 103 million workers obtained ESHC coverage that benefited 169 million individuals. Sixty-eight percent of the civilian workforce was insured through ESHC plans in 2010; this share increased to 73 percent when only full-time, year-round employees were considered.
ESHC benefits employees, employers, and health care plans by improving access to health insurance, providing more cost-effective coverage, strengthening the employer-employee relationship, contributing to productivity, supporting recruitment and retention, and improving efficiency of coverage. Yet, ESHC plans are under pressure from rising health care costs, a stalled economic recovery, and regulatory uncertainty around health care reform and possible tax reform.
Meeting the challenge: Maximizing the value of employer-sponsored health care, an Issue Brief from the Deloitte Center for Health Solutions:
- Reviews the current state of ESHC, including its role in overall health care financing and in compensation structures, and the challenges that confront employers from escalating health care costs.
- Explores economic and regulatory uncertainties related to health care reform, tax reform, and the future of Medicare that make planning challenging in the current environment.
- Suggests employer approaches to ESHC that may help companies both manage costs and win the competition for talent; among them, sharing financial responsibility, health improvement, supply chain management, defined contributions, and minimum value plans.
To read the Issue Brief, please download the PDF attachment.