Lack Of Quality Information ‘Informs' Employers' Health Plan Decisions
By Christine Kern, contributing writer
New survey finds only 7 percent of employers use objective quality information to choose a health plan.
A new survey funded by the Robert Wood Johnson Foundation and conducted by the Associated Press-NORC Center for Public Affairs Research has found most companies offering health insurance are unfamiliar with objective data and ratings of health plan quality, according to a press release. The survey found only 7 percent of these employers use objective quality information while 89 percent do not use or are unfamiliar with any of the objective sources tested by the survey.
The survey was designed to measure the extent to which employers are familiar with Healthcare Effectiveness Data and Information Set (HEDIS) Scores. These scores include health insurance plan quality ratings collected by the National Committee for Quality Assurance (NCQA), eValue8 data from the National Business Coalition on Health (which includes performance reports that allow business participants to assess healthcare plans); and Consumer Assessment of Healthcare Providers and Systems (CAHPS) data (a survey of consumers and patients about their experiences with healthcare).
“Over the last decade, we have taken giant steps forward in our ability to measure and report on healthcare quality,” Anne Weiss, who leads efforts to increase healthcare value at the Robert Wood Johnson Foundation, said in the release. “This poll highlights the fact that there is still a lot of work to be done to educate employers on how to get the most bang for their buck.”
This nationally representative survey of employers was conducted between August 19 and October 8 via web and telephone with 1,061 employers with at least three employees, full-time or part-time. Eighty-three percent of those surveyed currently offer health insurance to their employees.
This is the third survey in a series funded by the Robert Wood Johnson Foundation to explore issues of quality and value in healthcare. The first survey explored consumer awareness of provider quality and value; the second examined consumer opinions on healthcare cost and coverage, and how it impacts their decision-making.
Among the surveys other findings: 60 percent of employers offering health insurance say quality ratings are an important factor when choosing a plan, though most are unfamiliar with independent sources of quality data, such as CAHPS or HEDIS metrics. However, larger businesses of over 50 employees were more likely to use independent sources.
Only 4 percent of employers say their organization uses HEDIS Scores while 65 percent say they are not familiar with this source. An additional 4 percent say their organization uses CAHPS data; 64 percent say they are not familiar with this source. And only one percent of employers say their organization uses eValue8, and 61 percent say they are not familiar with it.
And almost one-quarter of respondents said their organization uses other sources to evaluate health insurance plan quality, including brokers or consultants (15 percent), references from other businesses (2 percent), employee feedback (2 percent), and their own research (2 percent).
Ultimately, the survey demonstrates American firms are hesitant to commit to paying more for higher quality care, and 90 percent don’t know or don’t use independent quality information to assess the quality of plans to offer employees. And while many employers are indeed providing wellness programs to benefit their employees’ health, relatively few are actively promoting those programs or offering incentives for participation.