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Health Care Survey
Thank you to all our member
companies who responded to the Health Care Survey. Here are the
results.
Employers’ ability to continue
to provide health care coverage to employees has become a critical public
policy priority. Earlier this
year, the Chamber surveyed its membership on an array of health care
issues. Over 500 businesses
responded. What they told us
about the health care marketplace in Illinois provides important
information to decision-makers in government and the public, as
well.
The 2000 Illinois Chamber of Commerce Health Care Survey
Results
Who
Responded to the Chamber’s Survey?
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508 businesses from Illinois responded.
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The respondents represent a diverse cross-section of
the business community: 25%
were manufacturers; 17% were retailers; 16% were service providers; 7%
were health care-related businesses and the remaining 35% were spread
over several different categories.
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Small employers were well represented in the
survey: 48% of respondents
have less than 100 employees; nearly 80% have less than 250
employees.
What Type of
Insurance Do These Employers Provide?
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93% of those responding provide health care coverage
for their employees.
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Of those providing health insurance, 75% offer a PPO
plan, 32% offer an HMO, 19% offer standard indemnity, 11% a point of
service plan and 5% a medical savings account (many employers offer more
than one option).
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The majority of employers (56%) require between 30 and
39 hours of work per week for an employee to qualify for health
benefits. 31% require 40 or
more hours, while another 11% require fewer than 30 hours of
work.
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The survey data clearly shows that larger employers
move to self insurance and that smaller employers purchase private group
insurance – the type that is regulated by state laws: 61% of employers with 250 or
more employees are self-insured; 82% of employers with fewer than 250
employees purchase group insurance.
What Benefits
Do Employers Offer?
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100% of employers offering health care cover major
medical expenses. 95% offer
prescription benefits, 74% preventive care, 69% a mental health benefit,
46% dental coverage and 27% a vision benefit.
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Smaller employers are able to offer somewhat less in
their benefit packages. For
example, while 91% of larger employers offer a mental health benefit,
only 44% of employers with 25 or fewer employees can offer mental health
coverage.
What is
Happening to Insurance Costs for Employers and Employees?
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Health care costs are high and continue to go up. Only forty-one percent of
employers saw their costs increase by single digits in 1999. Thirty-seven percent saw their
premiums increase by 10–20%.
Twenty-two percent had premiums increase by more than 20%.
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In 2000, employers expect costs to accelerate
further: Only thirty
percent expect cost increases in the single digits; fifty-four percent
see increases in the 10-20% range, while sixteen percent are planning
for extremely large increases of more than 20%.
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Employees share in the cost of their health care
benefits. Only forty-four
percent of employers pick up 100% of their employees’ premiums. Only fifteen percent of those
offering dependent coverage can cover 100% of the cost for
dependents.
What is the
Impact of Rising Costs?
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The cost of providing health care puts a large number
of employers in jeopardy of dropping coverage altogether – even at a
time when there is incredible competition for skilled employees. Nearly one in five employers
(18%) say they are in jeopardy of dropping coverage. The number in jeopardy of
dropping increases to 27% for those with 25 or fewer employees.
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80% of the employers in danger of dropping coverage
are privately insured and, thus, subject to state laws that increase
costs further.
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Employees are also feeling the impact of increasing
costs. 76% of employers
have made or plan to make changes to their plans to deal with rising
costs. Of those making
changes, 57% have made/plan to increase deductibles, 51% increase
employee premium contributions and 27% decrease benefits.
Why Don’t All
Employers Provide Health Care Coverage?
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While there may be several reasons, cost is
undoubtedly a major factor.
Of those respondents not offering health care, 66% cited the
expense for the employer as a factor, 32% cited an inability to find
quality coverage at the price they can afford, and 26% said that the
cost for employees is prohibitive (respondents could indicate several
factors).
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79% of employers not offering coverage said they would
do so if health insurance was more affordable.
What Would
Happen if the Legislature or Congress Would Act to Increase Employers’
Exposure to Liability in the Health Care System?
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According to this survey,
fewer Illinoisans would have health insurance provided by their
employer. 60% of
respondents said they would, or would consider, dropping health care
coverage for their employees (13% would definitely stop, 47% would
consider it).
What Does the
Future Hold for Small Businesses and Their Employees?
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The future is uncertain, but
consider the current status of small businesses’ ability to provide
health care for their employees and then consider the impact of
legislation that would further increase costs. Of respondents with 25 or fewer
employees: the percentage
that do not offer health care is 20% (7% for all businesses); 27%
currently offering health care are in jeopardy of dropping coverage (18%
for all businesses); they can provide somewhat lower levels of benefits,
69% offer preventive care (75% for all businesses), 44% offer a mental
health benefit (69% for all businesses), 27% provide a dental benefit
(46% for all businesses. (September 2000).
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