Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY

(WTW)
  Report
Delayed Nasdaq  -  01:00 2022-11-25 pm EST
244.02 USD   +1.12%
11/22Insider Sell: Willis Towers Watson
MT
11/22Insider Sell: Willis Towers Watson
MT
11/22Willis Towers Watson Public : WTW becomes inaugural member of President Biden's Emergency Plan for Adaptation and Resilience (PREPARE)
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

U.S. employers double down on controlling healthcare costs, enhancing affordability

09/15/2022 | 12:28pm EST

ARLINGTON, Va., Sept. 15, 2022 (GLOBE NEWSWIRE) -- Two out of three U.S. employers (67%) plan to prioritize controlling rising healthcare benefit costs over the next three years. And with many employers expecting costs to rise steadily in the foreseeable future, they are pursuing several initiatives to manage costs and make benefits more affordable for employees. These are among the key findings in a new survey by leading global advisory, broking and solutions company WTW (NASDAQ: WTW).

The survey found U.S. employers project their healthcare costs will jump 6.0% next year compared with an average 5.0% increase they are experiencing this year. Most employers see little relief in sight, as seven in 10 (71%) expect moderate to significant increases over the next three years. Additionally, over half of respondents (54%) expect their costs will be over budget this year. On top of managing costs, 42% cite managing employee affordability as a top priority. To address a higher-cost environment, 52% will implement programs or switch to vendors that will reduce total costs; one in four (24%) will shift costs to employees through higher premium contributions.

“With no end in sight to projected cost increases, the need to manage healthcare costs and address employee affordability has never been greater,” said Courtney Stubblefield, Insights & Solutions leader, Health & Benefits, WTW. “Yet, with so many potential actions, employers must focus on changes that go beyond addressing their employees’ needs to also support efforts to attract and retain talent during a tight labor market.”

The survey of 455 U.S. employers revealed several actions employers implemented or used this year, or expect to pursue, to manage costs and enhance employee affordability. These include:

  • Health plan budget boost: Two in 10 employers (20%) added dollars to their healthcare plan without reallocating funds from other benefits or pay. Another 30% expect to do so in the next two years.
  • Defined contributions: Four in 10 employers (41%) reported using a defined contribution strategy with a fixed dollar amount provided to all employees that differs by employee tier. Another 11% are planning or considering doing so in the next two years.
  • Evaluate employee contributions by income: The number of employers that examine employee health payroll contributions as a percent of total compensation or income as the basis for benefit design decisions is expected to more than double from 13% this year to 32% in the next two years.
  • Contribution banding: More than a quarter (28%) structured payroll contributions to reduce costs for targeted groups, such as low-wage employees, or by job class. Another 13% are planning or considering doing so in the next two years.
  • Low-deductible plan: Three out of 10 (32%) offered a plan with low member cost sharing (e.g., no more than a $500 deductible for a single preferred provider organization plan) this year; another 7% are planning or considering doing so in the next two years.
  • Fraud, waste and abuse: A quarter of respondents (27%) used programs to combat fraud, waste and abuse. Another 22% expect to do so by 2024.
  • Out-of-pocket costs: Nearly a quarter (23%) implemented higher out-of-pocket costs for use of less efficient services or site of service, such as use of non-preferred labs, high-cost facilities for imaging or mandated centers of excellence. Another 19% are planning or considering doing so by 2024.
  • Concierge navigation: Two in 10 (21%) offered concierge navigation even if it requires movement from a full-service health plan to a third-party administrator. Another 25% are planning or considering doing so by 2024.
  • Voluntary benefits: Over a third of respondents (35%) added or enhanced voluntary benefits and vendor solutions in case of a catastrophic event. Another 27% are planning or considering doing so by 2024.

“Employers that act now to predict, plan and implement solutions and strategies that balance employee affordability objectives with escalating prices can avoid having to take desperate measures in a rising healthcare cost environment,” said Tim Stawicki, chief actuary, Health & Benefits, WTW. “Without question, employers face difficult challenges in the next few years. And with limited budgets, the challenge of making decisions that consider healthcare affordability and engagement is exponentially greater.”

About the survey

A total of 445 U.S. employers participated in the 2022 Best Practices in Health Care Survey, which was conducted in August 2022. Respondents employ 8.2 million workers.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media contact:

Ed Emerman: +1 609 240 2766
eemerman@eaglepr.com


Primary Logo

Source: Willis Towers Watson Public Limited Company

2022 GlobeNewswire, Inc., source Press Releases

All news about WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
11/22Insider Sell: Willis Towers Watson
MT
11/22Insider Sell: Willis Towers Watson
MT
11/22Willis Towers Watson Public : WTW becomes inaugural member of President Biden's Emergency ..
PU
11/22Morgan Stanley Adjusts Price Target on Willis Towers Watson to $240 From $242, Maintain..
MT
11/21Willis Towers Watson Public : WTW and The Nature Conservancy launch first ever coral reef ..
PU
11/21Willis Towers Watson Public : WTW Partners with IMT on New Radar Live SaaS, Transforming t..
PU
11/17U.S. pay increases to hit 4.6% in 2023, WTW survey finds
AQ
11/17Willis Towers Watson Working With Liberty Specialty Markets, Markel to Launch Digital C..
MT
11/17WTW Collaboration with Liberty Specialty Markets and Markel Moves Insurance Industry Cl..
CI
11/17Willis Towers Watson Public : WTW collaboration with Liberty Specialty Markets and Markel ..
PU
More news
Analyst Recommendations on WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
More recommendations
Financials (USD)
Sales 2022 8 875 M - -
Net income 2022 1 043 M - -
Net Debt 2022 3 388 M - -
P/E ratio 2022 26,9x
Yield 2022 1,29%
Capitalization 26 412 M 26 412 M -
EV / Sales 2022 3,36x
EV / Sales 2023 3,29x
Nbr of Employees 44 000
Free-Float 99,1%
Chart WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
Duration : Period :
Willis Towers Watson Public Limited Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Last Close Price 244,02 $
Average target price 238,75 $
Spread / Average Target -2,16%
EPS Revisions
Managers and Directors
Carl Aaron Hess President, Chief Executive Officer & Director
Andrew Krasner Chief Financial Officer
Paul Donald Thomas Chairman
Alexis Faber Chief Operating Officer
Anne Donovan Bodnar Chief Administrative Officer
Sector and Competitors