HighRoads and CEB Find that Less Than 20% of Health Plans will Retain “Grandfathered” Status in 2013

  HighRoads and CEB Find that Less Than 20% of Health Plans will Retain
  “Grandfathered” Status in 2013

Fourth Annual Report Highlights Trends in 2013 Medical Plan Designs Across All
                                  Plan Types

Business Wire

BOSTON -- April 9, 2013

HighRoads, the industry leader in health care compliance and benefits
management, and CEB (NYSE: CEB), the leading member-based advisory company,
today released findings from their fourth annual Medical Plan Trends Report.
The study found that as 2014 and the enactment of more health care reforms
approach, employers are focused on compliance as well as cost control by
emphasizing consumerism and preventive care.

“Health care continues to be a significant component of the benefits packages
that deliver the overall employment value proposition,” said Cynthia Weidner,
vice president, health and welfare consulting, HighRoads. “Yet, employers are
looking for ways to maintain that value while working to control costs and
assure compliance to increasing reform requirements. As a result, plan designs
are changing but with careful attention to not damage the employee-perceived
value of the benefits they have come to expect.”

Top findings outlined in the 2013 Medical Plan Trends Report from HighRoads
and CEB include:

  *Fewer plans are retaining their “grandfathered” status. The study shows
    that 58% of employers that offered health care coverage in 2012 had at
    least one plan that was “grandfathered” (or exempt from specific
    compliance requirements such as free preventative care). An examination of
    2013 plans reveals that, on average, less than 20% of plans are
    grandfathered. This may be due in large part to a greater need for
    employers to appear to have more competitive health benefit plan choices.
  *More free preventive care. The study reports that 87% of plans offer free
    prostate screening, up from just 26 percent in 2012. It also found that
    90% offer free pap smears and routine mammograms, an increase of 56% since
  *More equal emphasis on adult and child wellness. In 2012 medical plans
    were almost 10 percent more likely to offer low-cost preventive care
    visits for children than adults. In 2013, 84 percent of plans include
    low-cost preventive care visits for both children and adults.
  *Plans are at risk of incurring the “Cadillac Tax,” a charge on plans with
    annual premiums exceeding $10,000 for individuals or $27,500 for a family
    that will take effect in 2018. Nearly one-in-five plans still have a $0
    deductible, and 55 percent of plans charge $20 or less for a primary care
    physician visit co-pay. Thus, organizations must take a careful look at
    their plans and redesign them to mitigate the tax while protecting the
    employment value proposition.

“Research shows that reform is impacting health care plan design in ways that
may deliver different benefits options to employees,” said Ania Krasniewska
Shahidi, senior director, CEB. “However, if employee communication about plan
changes and new plan choices are not emphasized properly, their perceived
value may be impacted. By delivering clear and consistent communication to
employees and their families about how to best utilize their plans, employers
will be able to balance compliance responsibilities with heightened employee

To receive a copy of the 2013 Medical Plan Trends Report by HighRoads and CEB,
please visit: http://www.highroads.com/resources/

About HighRoads

The world’s leading organizations choose HighRoads to gain complete control
over their health care costs and compliance. HighRoads’ SaaS-based solutions
provide organizations with complete benefits management capability, including
benefits plan information and pricing, competitive benefits benchmarks, and
compliance management. The privately-held company is headquartered in Woburn,
MA. For more information, visitwww.HighRoads.com,become a fan on
Facebook,follow us on Twitter(@HighRoadsHR), or read ourHR Compliance
Connection Blog.

About CEB

CEB is the leading member-based advisory company. By combining the best
practices of thousands of member companies with our advanced research
methodologies and human capital analytics, we equip senior leaders and their
teams with insight and actionable solutions to transform operations. This
distinctive approach, pioneered by CEB, enables executives to harness peer
perspectives and tap into breakthrough innovation without costly consulting or
reinvention. The CEB member network includes more than 16,000 executives and
the majority of top companies globally.


HighRoads Company Contact:
Petra Marino, 781-503-4031
HighRoads Media Contact:
Erin Jones, 704-664-2170
Press spacebar to pause and continue. Press esc to stop.