Employers Plan to Increase Use of Self-Service Decision-Making Technology For Open Enrollment, Watson Wyatt Survey Finds
December 01 2009 - 2:40PM
PR Newswire (US)
Nearly Three in Four Believe Tools Lead to Changed Employee Plan
Decisions WASHINGTON, Dec. 1 /PRNewswire-FirstCall/ -- With
employee benefit choices becoming more complex, a growing number of
employers are providing self-service decision-making tools to
workers during open enrollment season, according to a new survey by
Watson Wyatt, a leading global consulting firm. A majority of
employers who offer these tools believe they lead employees to make
changes in their plan decisions. According to the survey, 45
percent of companies offered employees self-service decision tools
to assist them with their health care decisions during this year's
open enrollment season, and 56 percent plan to provide more next
year. The survey also found that 50 percent saw an increase in the
use of these tools this year compared to last year. Moreover,
almost three-quarters (74 percent) of the employers that provide
these tools believe employees altered their plan decisions based on
using them. The Watson Wyatt survey was conducted in mid-November
2009 and includes responses from 349 U.S. employers. The survey
found that the greatest challenge employers cited during this
year's open enrollment was employee understanding of new plan
features -- 39 percent of employers said this issue was moderately
to extremely challenging, and 32 percent said it was more
challenging when compared to last year. Approximately one in three
employers (32 percent) considered explaining price changes to be
moderately to extremely challenging, and 26 percent said it was
more challenging this year than last year. "Most employers are at a
point where they breeze through open enrollment. Increasingly,
however, more are seizing the opportunity to help employees improve
their own health and well-being. Self-service decision tools can be
an essential part of the process to move employees away from being
passive participants in a company health plan," said Richard
Nicholas, senior technology consultant at Watson Wyatt. "For
instance, a medical cost analysis tool would help employees make
more educated decisions by comparing out-of-pocket costs of their
health plan choices." The survey found that 69 percent of employers
mailed printed materials to employees' homes during this year's
open enrollment season, down from 76 percent in 2008. However,
nearly one in four (22 percent) plans to eliminate paper-based
communications next year. A vast majority (88 percent) made
materials accessible on the company intranet or the Internet, and
more than three-quarters (76 percent) used e-mail. More than
one-quarter (27 percent) used interactive media or multimedia such
as podcasts, Web videos and online chat forums. "Just as technology
has become an integral part of how employees communicate every day,
employers have tapped into a wide range of technology applications
to allow workers to make informed decisions about their benefits,"
said Don Harrison, senior technology consultant at Watson Wyatt.
"The combination of new communication media and self-service
employee tools can help employers pave the way toward smoother open
enrollment seasons in the future." For more information, please
visit http://www.watsonwyatt.com/OpenEnrollment09. About Watson
Wyatt Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business
partner to the world's leading organizations on people and
financial issues. The firm's global services include: managing the
cost and effectiveness of employee benefit programs; developing
attraction, retention and reward strategies; advising pension plan
sponsors and other institutions on optimal investment strategies;
providing strategic and financial advice to insurance and financial
services companies; and delivering related technology, outsourcing
and data services. Watson Wyatt has 7,500 associates in 33
countries and is located on the Web at http://www.watsonwyatt.com/.
DATASOURCE: Watson Wyatt CONTACT: Ed Emerman, +1-609-275-5162, , or
Steve Arnoff, +1-703-258-7634, Web Site:
http://www.watsonwyatt.com/
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