Troy, MI – September 29, 2023 --- ASE, one of the
nation’s oldest and largest employer associations, has released its 2023
Health, Welfare, and Retirement Plans Survey.
The annual survey of employers assesses employer-sponsored health and
welfare plans ranging from employer provided medical coverage to retirement
plans.
Highlights of the ASE 2023 Health, Welfare, and
Retirement Plans Survey include:
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New to the survey this year, employers were
polled on the prevalence of Life Insurance Coverage, Disability Coverage, and
Retirement Plans.
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Of the 182 participating companies, 99% of non-unionized
employers and 97% of unionized employers reported offering Basic Life
Insurance.
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93% of non-unionized employers reported offering
Accidental Death & Dismemberment, 91% reported offering Short-Term
Disability (STD), and 95% reported offering Long-Term Disability (LTD). 85% of unionized
employers reported offering Accidental Death & Dismemberment, 88% reported
offering Short-Term Disability (STD), and 94% reported offering Long-Term
Disability (LTD).
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96% of non-unionized employers and 91% of
unionized employers offer a 401(k) or 403(b) plan. 31% of these companies offer immediate
participation for employees.
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A majority of the participants (66%) reported
offering two to three types of health plans.
The most utilized plan type continues to be Preferred Provider
Organization Plans (PPO) with 89% of companies offering this option.
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Only 38% of the participants report
self-funding their health plan, which is one percent more than last year. Conversely, 75% of large companies (those
with 500 or more employees) reported being self-funded, which is 6% more than
last year.
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Median employer cost share across all plan types
range from 70% to 80% of the premium depending on whether the coverage is for
the employee only or employee and family.
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Employers were polled on the prevalence of
Opt-Out Incentives for those employees who choose not to elect coverage under
the employer-sponsored health plan. Like
last year, only a third of employers surveyed offer that benefit. Annual opt-out incentives averaged $1,168, however,
which is roughly $650 less than last year.
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The three-tiered price structure (generic,
preferred brand, non-preferred brand) for prescription drug plans was the most
popular among traditional PPOs with 45% of non-unionized organizations
reporting this structure, down slightly from a year ago. Five-tiered structures followed as the second
most prevalent option at 28%. This was a
decrease of 3 percentage points from a year ago.
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Median annual employer contributions to Health
Savings Accounts (HSA) remained unchanged from the last five years with an
employee only contribution totaling $500 and an employee + family contribution
totaling $1,000 for both union and non-unionized organizations.
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The number-one cost savings strategy that
employers planned to implement continues to be increasing education regarding
health plan features and costs (12%). Implementing or expanding wellness
programs (29%), increasing the employees cost share (18%), and implementing
wellness-based premium discounts (e.g., biometric screens) (16%) top the list
of strategies that companies are considering but have yet to set a timeline
for.
The ASE 2023 Health, Welfare and Retirement Plans Survey
findings were announced by ASE President and CEO, Mary E. Corrado. “This
expanded survey offers valuable insights into the evolving landscape of
employer-sponsored benefits. As organizations continue to adapt to changing
workforce needs, it's clear that employers are committed to providing a wide
range of benefits, from life insurance to retirement plans. These findings
underscore the dedication of employers to support their employees' well-being
and financial security.'"
Background information on the ASE 2023 Health, Welfare
and Retirement Plans Survey
182 organizations participated. Organizations with 50 to 499
employees nationally made up more than 56% of the survey sample, while
organizations with more than 500 employees nationally represented nearly 31% of
the sample. The remaining 13% of the sample came from organizations with fewer
than 50 employees nationally. A variety
of industries have been represented in the survey, with durable goods
manufacturing (41%) leading the pack. Trades and services (29%) were the
second-largest industry representation.
This survey is available at no cost to ASE Member survey
participants via the ASE Member Dashboard. It is available for $225 for member
non-participants, $825 for non-member participants, and $1,650 for non-member
non-participants. Request to purchase here.
About ASE
ASE is employers trusted partner for Everything
HR. ASE is a non-profit, membership organization
– everything we do is based on the needs of members and to drive the success of
their organizations and help them THRIVE. ASE
strengthens organization's HR departments by offering member benefits and
discounted services that span the entire employee lifecycle including
recruitment, development, and retention while minimizing compliance risk. Learn
more about ASE at www.aseonline.org.
