Employers Express Doubts About Employer Mandate and Government-Sponsored Public Plan,...

Employers Express Doubts About Employer Mandate and Government-Sponsored
Public Plan, Says Aon Consulting Survey
Organizations favor current employer-based system with focus on wellness,
consumer engagement

CHICAGO, July 20 /PRNewswire-FirstCall/ -- Competition between employer-based
health insurance plans and a government-sponsored public plan will not fix the
U.S. health care system, according to the majority of employers responding to
a Health Care Reform Survey, conducted by Aon Consulting, the global human
capital consulting organization of Aon Corporation (NYSE: AOC). What will
help fix the system is a focus on wellness programs, evidence-based medicine
guidelines, improving quality of care and increasing the ability of patients
to be better health care consumers, the survey found.

(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO)

Aon Consulting surveyed more than 1,100 U.S.-based employers in June 2009 and
found that 58 percent of employers oppose a public plan option similar to
Medicare to compete with employer-based plans as a way to increase the number
of Americans with health insurance. In addition, 56 percent of employers
oppose a public plan that would eventually be offered to larger employers
through a Health Insurance Exchange. In regard to the scenario of a
government-run public plan having lower provider reimbursement levels and
richer benefits than competing group plans, 39 percent of employers said they
would continue group health coverage but re-evaluate sponsorship after one to
two years. In the same scenario, another 10 percent of employers said they
would drop sponsorship of group coverage.

"The survey results reflect an opposition to a competing public plan where
employers are concerned about an uneven playing field between employer-based
plans and a public plan, especially if the public plan is designed based on a
Medicare level reimbursement to physicians and hospitals, which is
significantly lower than private-sector plans," said John Zern, Aon
Consulting's U.S. Health & Benefits Practice director. "As a result, the
public plan, if passed and depending on the details, could over time diminish
enrollment in group health insurance programs administered by private health
carriers."

In addition, the survey found the majority of employers are against the
following health care proposals:
-- 63 percent of organizations oppose an employer mandate, which would
require employers to sponsor group health insurance for their
employees
or pay into a government fund
-- 76 percent of employers said changes in ERISA preemption -- which
would
limit or prevent multi-state employers from self funding a consistent
nationwide health plan -- would be a significant development that
could
lead to a re-examination or likely termination of health coverage
options

-- The majority of employers ranked changing/limiting the tax treatment
of
group health coverage sponsored by employers as the least preferred
way
to finance health care reform.

"These survey results send a message that employers want the flexibility in
their employer-sponsored health benefits to do what's best to recruit and
retain talent, and these proposed health care changes may not accomplish this
goal," said Tom Lerche, Aon Consulting's Health Care Practice leader.

An employer mandate could result in employers needing to modify benefits to
meet a government required minimum benefit level. For those organizations that
don't provide group coverage, they may be forced to cut staff to replace the
extra costs of complying with the employer mandate, Lerche explained.

"Changes in ERISA preemption would cause substantial problems for the
administration of group medical plans for multi-state employers, as it would
make health coverage even more costly," Lerche added.

Focus on wellness, consumerism and evidence-based guidelines

Solutions to help fix the U.S. health care system rest in current
employer-sponsored coverage, according to survey respondents. In fact, 93
percent of organizations said the most favorable way to increase the number of
Americans with health insurance is by continuing the employer-based health
care system with a greater focus on wellness, chronic condition management,
evidence-based medicine and other innovative approaches.

Employers also believe the most effective ways to lower medical trend is
through comprehensive prevention/wellness programs (73 percent of
respondents); making consumers more price sensitive and more aware of quality
of care data (55 percent); and limits on malpractice suits for physicians who
follow evidence-based medicine guidelines (47 percent).

Evidence-based medicine guidelines and tools to encourage consumerism also
were cited as the top two initiatives to improve the quality of care based on
their highest potential impact.

"Clearly organizations want to improve the current employer-sponsored health
care system by building a healthier workforce and a more informed employee to
make better health care decisions, and by doing so, reduce claims costs,"
Lerche said. "While these are all reasonable goals, the challenge resides in
implementing the right programs and measuring outcomes, as changing individual
behavior is a daunting task."

Zern added: "Regardless of the outcome of national health reform, employers
should place a high priority on development of a comprehensive business plan
for wellness and prevention. The benefits of a successful wellness program go
beyond disease prevention to include reduced absenteeism and 'presenteeism,'
lower rates and duration of disabilities, and a more engaged and productive
workforce. Most importantly, a comprehensive wellness program should include a
process to track and measure outcomes in their workforce to re-evaluate and
make changes where necessary."

Zern and Lerche brought clients to Washington, D.C., the week of July 13 to
discuss health care reform with members of Congress.

For more information on Aon Consulting's Health Care Reform Survey results,
please visit www.aon.com/healthcarereform.

About Aon Consulting
Aon Consulting Worldwide is among the top global human capital consulting
firms, with 2008 revenues of $1.358 billion and more than 6,300 professionals
in 229 offices worldwide. Aon Consulting works with organizations to improve
business performance and shape the workplace of the future through employee
benefits, talent management and rewards strategies and solutions. Aon
Consulting was named the best employee benefit consulting firm by the readers
of Business Insurance magazine in 2006, 2007 and 2008. For more information
on Aon, please visit www.aon.mediaroom.com.

Aon Consulting's Health & Benefits Practice is a global leader, with one of
the largest wholly owned networks of worldwide offices of any consulting firm.

About Aon
Aon Corporation (NYSE: AOC) is the leading global provider of risk management
services, insurance and reinsurance brokerage, and human capital consulting.
Through its more than 37,000 colleagues worldwide, Aon readily delivers
distinctive client value via innovative and effective risk management and
workforce productivity solutions. Aon's industry-leading global resources and
technical expertise are delivered locally through more than 500 offices in
more than 120 countries. Named the world's best broker by Euromoney magazine's
2008 and 2009 Insurance Survey, Aon also ranked highest on Business
Insurance's listing of the world's largest insurance brokers based on
commercial retail, wholesale, reinsurance and personal lines brokerage
revenues in 2008. A.M. Best deemed Aon the number one insurance broker based
on brokerage revenues in 2007 and 2008, and Aon was voted best insurance
intermediary, best reinsurance intermediary and best employee benefits
consulting firm in 2007 and 2008 by the readers of Business Insurance. For
more information on Aon, log onto http://www.aon.com/.

Media contact:
Sara Carlson
312-381-5045
Sara_carlson@aon.com

SOURCE Aon Corporation

Sara Carlson of Aon Corporation, +1-312-381-5045, Sara_carlson@aon.com