Get access to the exclusive HR Resources you need to succeed in 2018.
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 14 cities across the U.S. this fall.
Gain the skills you need to rise to the next level in your career. Jon us at SHRM's Leadership Development Forum, October 2-3 in Boston.
Relatively low co-pays also drive more visits to specialists
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
Employees and their families in the U.S. are making more trips to the emergency room (ER), urgent care facilities and specialists’ offices as relatively low co-payment costs are narrowing the gap between those and other services—notably primary care physicians. The trends in employee co-pays are among the findings in the 2012 Medical Plan Trends Report by HighRoads, a provider of benchmarking data for HR plans, and Corporate Executive Board, a research and advisory services company.
The findings in the report are the result of the study conducted by Corporate Executive Board and HighRoads' The Lab benchmarking repository of health care benefit plan data, covering more than 34 million people and representing more than 12,000 plans throughout the U.S.
According to plan data, the average ER visit co-pay for Americans is just $76. The relatively low costs might be prompting employees to visit the hospital for symptoms that a primary care physician or other provider could treat more readily and more cost-effectively. For example, toothaches and sprains are among the most common conditions for which Americans visit hospital emergency rooms, according to the report.
While some ER visits are attributable to patients who lack insurance, the steady increase in visits appears predominantly to be tied to co-pay costs, the report found.
“The interesting data on co-pays show employees are basically acting as price-sensitive consumers and going for what they perceive as the best value and convenience for the price,” said Ania Krasniewska, senior director at Corporate Executive Board. “However, it also sounds a warning that some visits to ER and urgent care facilities should, in fact, be handled at the more cost-effective primary-care level. Not only does this affect cost to the employee in the end, but in large quantities this significantly affects the cost to the organization,” she observed.
Some Choices Based on Convenience, Not Price
The analysis found, on average, plans have a relatively minimal price differential between urgent care, in-network co-pays ($32) and primary care physician (PCP) co-pays ($17). As a result, employees might be choosing urgent care facilities for convenience because they tend to keep evening and weekend hours and are open on holidays.
Similarly, the price gap between specialists and PCPs is narrowing. From 2010 to 2012 the price differential dropped from 82 percent to 35 percent higher for specialist visits. The analysis shows that the closer the two costs get, the more likely employees are to see a specialist for an issue that could have been addressed by their PCP.
Cancer Screenings Warrant Low Co-Pays
Roughly one-third of plans charge no co-pay for cancer screenings, and on average co-pays for cancer screenings are lower than PCP visit co-pays, the analysis found. Although the report raises questions about the cost-effectiveness of low co-pays for some specialist services, “It is encouraging that the data shows good cost incentives for employees to participate in cancer screenings,” said Maureen Cotter, senior principal at HighRoads. “Preventive screenings are an absolutely essential part of an effective wellness program for both employees and employers.”
Stephen Miller, CEBS, is an online editor/manager for SHRM.
Those in CDH Plans More Educated, Healthier, Wealthier, SHRM Online Benefits Discipline, April 2012
Half of Employer Health Plans Have No In-Network Deductible, SHRM Online Benefits Discipline, April 2012
Screenings and Early Intervention Can Reduce Medical Costs, SHRM Online Benefits Discipline, April 2012
Costs Vary Widely for 'Shoppable' Procedures, SHRM Online Benefits Discipline, March 2012
Applying Effective In-Network Incentives at CalPERS, SHRM Online Benefits Discipline, March 2012
Study: CDH Plans Saved $9,700 per Employee over Five Years, SHRM Online Benefits Discipline, February 2012
Behavioral Economics Improves Health Decisions, SHRM Online Benefits Discipline, January 2012
SHRM Online Benefits Discipline
• Sign up for SHRM’s free Compensation & Benefits e-newsletter
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Become a SHRM Member
SHRM’s HR Vendor Directory contains over 10,000 companies