Many small and midsize U.S. employers may be so angry about the cost of health benefits that they will rush to try something completely different, even if they don’t know much about the new coverage strategy.
Vitable, a direct primary care plan manager, has published data on employers’ fight to hold down health benefits costs in a summary of the results from a survey of 510 U.S. businesses with fewer than 500 employees.
The firm found that 18% of the employers surveyed described themselves as being “very familiar” with benefits options such as direct primary care practices, individual coverage health reimbursement arrangements and qualified small employer HRAs.
See also: Why employers need a primary care strategy—and 6 ways to make it happen
But far more of the employers—40%—said they were “likely or very likely to adopt new models” for providing other benefits.
The results mean that about 22% of the employers are thinking about switching to nontraditional options such as direct primary care practice memberships, ICHRA plans and QSEHRA plans, despite having little familiarity with those options.
A direct primary care practice charges periodic membership dues, or membership fees, and in return promises to give the members access to everyday health care.
ICHRAs and QSEHRAs are arrangements that employers can use to provide cash for their employees and let the employees buy their own individual or family health coverage.
Vitable analysts said they think many of the employers that say they will switch to nontraditional options still need to see more evidence that the new options will really improve employees’ care and hold down costs before they’ll really switch.
About 20% of the employers worry about whether employees will use the new options, and 18% worry about lack of information, the analysts said.
For 80% of the employers, one persuasive way for a nontraditional option provider to demonstrate its value would be to show that it helps sick and injured workers get back to work faster than traditional health plans do, the analysts said.
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