Hong Kong perspective of employee health

Summary of key findings.

At the previous two HR Magazine conferences in October and December, HR Magazine and Hewitt surveyed HR managers and directors to gauge their opinion on medical insurance plans adopted by their organisations.
The questionnaire focused on two key areas:

1. Top criteria in selecting medical plan providers; and
2. Predictions on spending on medical plans in the short and long term.

Although corporate medical plans are provided in the name of the employer, most programs are actually one-on-one relationships between the vendor— the medical provider, and the end user—the individual employee. Whether it is clarifying eligible treatments or submitting claims for reimbursement, on a practical level the employer’s responsibility often ends with the selection of the plan and the payment of the annual premiums. Nonetheless, as gatekeeper it is important to look at what the key factors are in driving HR Managers when it comes to making decisions over the company’s medical plans.

The ‘war for talent’ has long moved beyond just cash compensation and into the arena of workplace benefits, and it is not surprising to see that many companies offer health benefits to ensure market competitiveness, 78%. However, combined with the 54% response rate for companies citing healthcare programs as a means of ensuring employee productiveness, and it can be seen that private healthcare has evolved from being a ‘company perk’, to a key tool to achieving business goals.

When it comes to selecting providers, annual premiums remain, as expected, a paramount consideration, 81%. But as the cost of private healthcare steadily rises to become a major expenditure, Employers are also placing emphasis on value-for-money; weighing up features of each provider’s offering such as the level of claims allowed, 48%, and the size of the provider’s network, 34%.

Overall, the survey suggests that most companies are satisfied with their current medical provider, 79%. However, almost three-quarters indicate that they plan on reviewing their providers in the next 12 months, 72%. Although this may seem counter-intuitive, it could be explained by the difference in the provider’s relationship with the Employer, who buys the policy, and the Employee ,who uses it,. The Employees’ experience with the provider—which should be the key measure of satisfaction—does not always filter back to directly influence the company’s choice of keeping or changing the provider. Conversely, most medical providers fall into the category of vendors and are often reviewed annually by companies as part of procurement policy, regardless of whether there have been any particular service quality issues.