Aon Hewitt Provides Tips to Help Workers Prepare for the Upcoming Open Enrollment Season

LINCOLNSHIRE, Ill., Sept. 16, 2014 /PRNewswire/ -- As open enrollment season approaches, U.S. employees will soon be asked to make important decisions about their 2015 benefits. According to Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), employees will be expected to take a more proactive role in managing their health care decisions. This increased responsibility makes it more important than ever for individuals to understand how they can make the most of the programs and benefits their employer is providing.  

"Immediate actions driven by the Affordable Care Act have subsided, and most employers are not making significant changes to their benefits programs next year," said Craig Rosenberg, Health & Welfare Benefits Administration practice leader at Aon Hewitt. "However, it's still important for employees to review all of their benefit options because these decisions impact not only their wallets, but their overall wellbeing. Many employers are providing employees with new options that may better meet their needs and help them manage costs for the upcoming year."

According to Aon Hewitt's experts and findings from Aon Hewitt's 2014 Health Care Survey, some of the changes employees may see as they enroll in benefits for 2015 include:

• Rising health care costs – Most employers plan to subsidize employees' health coverage at a similar rate as this year, but as health care costs continue to rise, employees are likely to continue to see higher premiums and out-of-pocket costs. Aon Hewitt's survey shows half of employers increased participants' deductibles or copays in 2014, and an additional 39 percent are planning to do so in the next three-to-five years. Employees who cover spouses and other dependents through their employers' plans may see an even steeper cost increase. Twenty-two percent of employers have reduced subsidies for covered dependents, while 18 percent added a surcharge for adult dependents with access to other health coverage. An additional half of employers surveyed are exploring such approaches over the next few years.
  
• Greater likelihood of seeing consumer-driven health plan (CDHPs) options – Aon Hewitt's research shows that CDHPs are the second most popular plan choice offered by employers, surpassing HMOs. CDHPs encourage employees to be more actively engaged in understanding and managing their health – typically via a higher deductible and a Health Reimbursement Account or Health Savings Account that can be used for health care expenses. In some cases, CDHPs may be the only option available to employees. Fifteen percent of companies offer a CDHP as the only health plan option today, and another 42 percent are considering doing so in the next three to five years. Many employers are also offering employees the opportunity to purchase a wide range of employee-paid benefits, such as critical illness coverage, to help minimize the risk of significant out-of-pocket expenses.
  
• Programs and incentives that promote healthy behaviors – Most employers are placing greater emphasis on health and wellness programs that encourage employees to take a more active role in managing their health. Aon Hewitt data shows that 75 percent of employers offer Health Risk Questionnaires (HRQs), 68 percent offer disease and condition management programs and 71 percent offer biometric screenings (e.g., for blood pressure and cholesterol).  More companies offer incentives (e.g., lower medical plan premium) for completing these screenings or participating in certain programs. Twenty percent of employers are applying incentives in a different way—requiring completion of these activities to gain access to expanded health plan choices that provide additional levels of coverage.  In addition, more than a third of employers are tying incentives to achieving specific outcomes, such as quitting tobacco use, lowering blood pressure or improving body mass index.
  
• More transparency on costs and health plan choices – According to Aon Hewitt's research, almost all employers offer health care cost estimators that allow employees to comparison shop for health insurance by evaluating two or more health care plans at a time, factoring in monthly premiums, co-payments, deductibles and coinsurance payments. An increasing number of employers are also providing decision-support tools that enable employees to model out-of-pocket costs based on anticipated health plan usage or prior claims information.
  
• New ways to select and purchase health care benefits – A small but growing number of employers are offering group-based health benefits to active employees through private health exchanges. Private health exchanges create a new competitive market for health insurance that provide employees with more health plan options at different coverage levels and price points.  Aon Hewitt's data shows that while just 5 percent of employers allow employees to purchase benefits through a private health exchange today, 33 percent said it will be their preferred approach in the next three-to-five years.

Tips for Successful Navigation this Enrollment Season

Take an active role – The good news is employers are taking steps to make enrollment quicker and easier. "Many companies are designing the process so it is similar to an online retail shopping experience, where you can access decision support tools and other resources that can help you narrow down your choices and weigh them against your specific needs," said Joann Hall Swenson, health engagement leader  at Aon Hewitt. "Employers are also stepping up their efforts to clearly communicate what is changing from previous years, using a variety of communication methods. Make sure to take advantage of the resources your employer provides, and use the tools available so you can make decisions that are right for you."

Assess your and your dependents' health care needs – Understanding your past needs and estimating your future needs will help you determine what adjustments you may need to make in your benefits selections for 2015. Start by reviewing how much you've spent in the past year out-of-pocket, the costs of your regular prescriptions and the number of doctor visits you have had. Most health plans provide access to past medical and dental claims that can help you calculate last year's costs and estimate what your future costs might look like. If you are participating in a Flexible Spending Account (FSA), reevaluate your contribution levels based on your actual and anticipated expenses for 2015. It's also important to think about any life changes that may impact your decisions. Did you or a family member develop a new medical condition that may impact your health care expenses? Did you or do you expect to add to your family?

Evaluate your plan's provider network ― Over the past few years, there have been many changes taking place in the provider community, including doctor's groups joining together and hospitals and health systems re-contracting with insurers. As a result, your health plan options may include vastly different combinations of doctors and hospitals than in the past. Most employers and health plans offer a number of tools and resources that can help you assess the cost impact and quality of different providers as you make your enrollment decisions.

Evaluate whether a CDHP is right for you – CDHPs often have lower premiums, which make them an attractive option for individuals who want to reduce the costs taken out of their paychecks each month. While you may have a higher deductible to meet, many employers couple these plans with Health Reimbursement Accounts (HRAs) or Health Savings Accounts (HSAs), which you can use to help pay for eligible out-of-pocket health care costs. HSAs are the most common, and allow you to save money by contributing on a pre-tax basis, up to $3,350 in 2015 or $6,650 if you have family coverage, with no "use it or lose it" rule. In addition, employers may also contribute to your HSA—for example, matching contributions you make. It's important to understand how your employer's contributions work so you can maximize this subsidy.

Determine the best source of coverage for your dependents – If your spouse, partner or adult children have access to health coverage elsewhere, including through their employer, it may be more cost effective for them to enroll in this coverage instead of being covered by you. Carefully review and compare these plans to ensure you are choosing the coverage you need at the most favorable cost.

Take advantage of health and wellness programs – Many employers offer a wide range of health and wellness programs, such as health assessments, weight loss programs and health coaching, to help you get and stay healthy. Taking part in these programs will help you understand your current health status, and you might even be able to take advantage of a financial incentive from your employer for doing so.

Understand how your employer coverage works in comparison to ACA Marketplaces – 2015 will be the second year of coverage available to Americans through the Marketplaces, commonly referred to as "public exchanges." In most cases, individuals with coverage through their employer will not be eligible for federal tax credits for purchase of insurance through the Marketplaces. You can visit healthcare.gov to learn more about the Marketplaces.

Take a holistic view of health and financial wellness – As you assess your health plan options for 2015, it's important to look holistically at your health and financial wellbeing, including health care, income protection (e.g., life and disability insurance) and retirement planning. Does your spending reflect your needs and priorities? For example, if you aren't contributing to your 401(k) plan, now may be the time to start. Beginning to save earlier in your career helps to ensure you're on track to meet your long-term savings goals.

Sign up for News Alerts: http://aon.mediaroom.com/index.php?s=58

Follow Aon Hewitt on Twitter: @AonHewitt

About Aon Hewitt
Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness.  Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide.  For more information on Aon Hewitt, please visit www.aonhewitt.com.

About Aon
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.

Media Contacts:
Maurissa Kanter, 847-442-0952, [email protected]
Amy Kaleniecki, 847-771-4225, [email protected]

Logo - http://photos.prnewswire.com/prnh/20100719/AQ37264LOGO

SOURCE Aon plc.