1. Sponsored by AETNA June 29, 2011 SHRM Poll: The State of Consumer-Directed Health Plans in the Workplace

2. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Key Findings 2

3. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Key Findings  Do CDHPs help engage employees in their own health and wellness? Among respondents that offered a CDHP, 77% responded either “strongly agree” or “agree” that doing so has helped engage employees in their own health and wellness.  What are the barriers preventing organizations from offering CDHPs? Among companies without a CDHP, the primary reasons for not offering the option were: 1) management wants to maintain the status quo since most employees are satisfied with the current health care benefits plan (49%), 2) management believes CDHPs will not save enough money to merit offering this type of plan (27%), and 3) not have enough information about the benefits of CDHPs (26%). 3

4. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 In terms of a total compensation and benefits package, how important are each of the following to employees at your organization? 4 Note: n = 836-853. “Not sure” responses were excluded from this analysis. Percentages may not total 100% due to rounding. The figure is sorted by “very important" responses.

5. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 In terms of health care coverage, how important are each of the following to employees at your organization? 5 Note: n = 806-852.“Not sure” responses were excluded from this analysis. Percentages may not total 100% due to rounding. The figure is sorted by “very important" responses.

6. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 How important are each of the following to your organization when deciding which health care benefits to offer to employees? 6 Note: n = 822-840. “Not sure” responses were excluded from this analysis. Percentages may not total 100% due to rounding. The figure is sorted by “very important" responses.

7. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Over the past three to five years, which of the following cost- cutting measures has your organization utilized to contain health care benefits costs? 7 Note: n = 861. Totals do not equal 100% due to multiple response options.

8. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Based on your experience with your own organization and its employees, do you agree or disagree with each of the following statements? 8 Note: n = 827 - 846.“Not sure” responses were excluded from this analysis. Percentages may not total 100% due to rounding. The figure is sorted by “strongly agree" responses.

9. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Do you agree with the following statement: “I am comfortable with my level of knowledge about consumer- directed health plans (CDHPs).” 9 Note: n = 821. “Not sure” responses were excluded from this analysis.

10. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Does your organization currently offer consumer-directed health plans (CDHPs)? 10 Note: n = 838. “Not sure” responses were excluded from this analysis.

11. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Does your organization currently offer consumer-directed health plans (CDHPs)? 1-99 employees = 32% 100-499 employees = 41% 500-2,499 employees = 38% 2,500-24,999 employees = 60% 25,000 and above = 63%Larger organizations > smaller organizations 11 Comparisons by organization staff size: Compared with smaller organizations (2,499 employees or fewer), larger organizations (2,500 or more employees) were more likely to offer a CDHP. Publicly owned for-profit = 55% Privately owned for-profit = 40% Nonprofit = 39% Government = 33% Publicly owned for-profit organizations > privately owned for-profit organizations, nonprofit organizations and government agencies Comparisons by organization sector: Publicly owned for-profit organizations were more likely to offer CDHPs than privately owned for-profit organizations, nonprofit organizations and government agencies. Multinational operations = 54%U.S.-only operations = 39%Multinational operations > U.S.-only operations Comparisons by operations location: Organizations with multinational operations were more likely than organizations with U.S.-only operations to offer a CDHP.

12. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Does your organization currently offer any of the following consumer-directed health plans (CDHPs)? 12 Note: n = 344. Organizations that did not offer consumer-directed health plans (CDHPs) and “not sure” responses were excluded from this analysis.

13. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Does your organization currently offer any of the following consumer-directed health plans (CDHPs)? Multinational operations = 59%U.S.-only operations = 44%Multinational operations > U.S.-only operations 13 Health reimbursement arrangements (HRA) comparisons by operations location: Organizations with multinational operations were more likely than organizations with U.S.-only operations to offer HRAs.

14. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 How easy or difficult is it to explain the concept of consumer- directed health plans (CDHPs) to employees? 14 Note: n = 342. Organizations that did not offer consumer-directed health plans (CDHPs) and “not sure” responses were excluded from this analysis. Percentages do not total 100% due to rounding.

15. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Do you feel equipped to explain consumer-directed health plans (CDHPs) as a health insurance option to the following groups? 15 Note: n = 322-323. Organizations that did not offer consumer-directed health plans (CDHPs) and “not sure” responses were excluded from this analysis.

16. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Has your insurance carrier provided you with the information you need to help educate the following groups about consumer- directed health plans (CDHPs)? 16 Note: n = 310. Organizations that did not offer consumer-directed health plans (CDHPs) and “not sure” responses were excluded from this analysis.

17. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Do you agree that offering a consumer-directed health plan (CDHP) has helped engage your employees in their own health and wellness? 17 Note: n = 322. Organizations that did not offer consumer-directed health plans (CDHPs) and “not sure” responses were excluded from this analysis.

18. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Which of the following best describe your organization’s reasons for not offering consumer-directed health plan options? 18 Note: n = 456. Organizations that offered consumer-directed health plans (CDHPs) and “not sure” responses were excluded from this analysis. Totals do not equal 100% due to multiple response options.

19. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Demographics: Organization Industry 19 Industry Percentage Manufacturing19% Health care and social assistance15% Professional, scientific and technical services13% Finance and insurance 10% Educational services7% Public administration5% Retail trade4% Arts, entertainment and recreation3% Construction3% Information3% Wholesale trade3% Accommodation and food services2% Religious, grantmaking, civic, professional and similar organizations2% Utilities2% Transportation and warehousing2% n = 861. Totals do not equal 100% due to multiple response options. * = Less than 1%.

20. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Demographics: Organization Industry (continued) 20 Industry Percentage Administrative and support and waste management and remediation services1% Agriculture, forestry, fishing and hunting1% Mining1% Real estate and rental and leasing1% Repair and maintenance1% Management of companies and enterprises* Personal and Laundry Services* Other services, except public administration10% n = 861. Totals do not equal 100% due to multiple response options. * = Less than 1%.

21. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Demographics: Organization Sector 21 n = 859.

22. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Demographics: Organization Staff Size 22 n = 859.

23. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 Demographics: Other 23 n = 860. U.S.-based operations only83% Multinational operations17% Single-unit company: A company in which the location and the company are one and the same 41% Multi-unit company: A company that has more than one location 59% Corporate (companywide)73% Business unit/division16% Facility/location12% Is your organization a single-unit company or a multi-unit company? Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? Does organization have U.S.-based operations (business units) only or does it operate multinationally? n = 861. n = 503. Percentages do not total 100% due to rounding.

24. The State of Consumer Directed Health Plans in the Workplace| ©SHRM 2011 SHRM Poll: The State of Consumer-Directed Health Plans in the Workplace Sponsored by AETNA  Response rate = 14%  Sample composed of 861 randomly selected HR professionals form SHRM’s membership database with the job title of manager and above  Margin of error is +/- 4%  Survey fielded June 8 th - June 20 th, 2011 24 Methodology For more poll findings, visit www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research