Emphasis on Financial vs Nonfinancial Criteria in Employer Benefits' Measurements

Area of Science:

• Health Services Research
• Health Economics
• Organizational Behavior

Background:

• Few studies have explored the emphasis employers place on financial versus nonfinancial criteria for health benefits.
• Understanding this emphasis is crucial for evaluating and improving health plan performance.

Purpose of the Study:

• To measure the extent of employer emphasis on financial over nonfinancial criteria in health benefits decision-making.
• To identify factors associated with this financial emphasis.

Main Methods:

• A nationally representative survey of US employers was conducted.
• The survey assessed employer priorities in benefits plan management and selection of third-party administrators, focusing on financial vs. nonfinancial considerations.

Main Results:

• Employers and their consultants predominantly focused on financial performance dimensions (e.g., costs, spending) over nonfinancial ones (e.g., member experience, access, equity).
• This financial focus was largely independent of organizational characteristics.
• Tracking of nonfinancial metrics like employee time spent on inquiries or care delays was minimal.

Conclusions:

• US employers significantly emphasize financial criteria over nonfinancial ones in health benefits measurement and decision-making.
• To enhance health plan performance, a balanced approach incorporating both financial and nonfinancial criteria is necessary for employers.