Despite the healthcare reforms implemented under the federal Patient Protection and Affordable Care Act, 90% of employers are facing increases in the premiums they pay for employee health plans. And nearly 25% of employers are seeing rate increases in the double digits says a new survey by Arthur J. Gallagher & Company.

Employers of choice are committed to providing their employees with a rich benefits and compensation program while trying to decrease or maintain operating costs. And according to a press release on the survey, these increases put U.S. employers in the challenging position of needing to balance two competing priorities—attracting and retaining a competitive workforce and maintaining or decreasing overall operating costs.

These findings were part of the 2015 Gallagher Benefits Strategy & Benchmarking Survey of over 3,000 employers in the United States, one of the largest and most comprehensive annual benefits surveys, which addresses a wide range of industries, geographic regions, and employer sizes and types. This annual survey covers major benefits categories including medical, wellness, dental, absence management and disability, retirement, life insurance, and employee communication.

Employers exploring new options to control costs

"By far, the top benefits concern among employers is the continued rise in the cost of providing group medical coverage for employees," said James W. Durkin, Jr, president of Gallagher Benefit Services, Inc. "Employers are examining all available options to rein in medical costs, while still offering competitive benefits packages that help them attract and retain the best employees in a tightening labor market. With the 'Cadillac tax' due to take effect in 2018, employers are expected to increasingly turn to newer, alternative cost-control tactics." The Cadillac tax is an excise tax on high-cost health benefit plans.

One strategy employers are using to rein in overall healthcare spending is to require employees to shoulder a larger share of the expense in the form of higher deductibles. This year, in-network family plan deductibles average $3,000, while out-of-network deductibles average $4,500. Annual deductibles for employee-only in-network plans now average $1,200, and out-of-network coverage deductibles are an average of $2,000.

Employees considering benefits package as a whole

According to the survey, employees place greater value on their total benefits and compensation package, rather than on individual components.

"As a result, we recommend employers focus on a benefits and compensation strategy that both improves the performance of their [workers] and is appreciated by them. The best way to accomplish this is to listen to your employees and understand that certain employee segments have different needs and wants," Durkin added.

Employees utilizing wellness programs a concern

Wellness programs are becoming more aligned with employees' personal sense of wellbeing, including their physical, financial, emotional, and community health. As a result, wellness programs are also becoming more commonplace in organizations of all sizes.

Among all employer respondents, 42% stated they have at least one wellness program in place. This figure rises to 70% for employers with at least 1,000 employees. However, employee participation in wellness programs remains a concern according to 72% of employers that offer such programs.

"Today's employers are trying to achieve balance between two competing concerns—the need to have the best possible people to grow their businesses while decreasing operating costs, including controlling healthcare expenses. Gallagher's Benefits Strategy & Benchmarking Survey can provide clarity on the range of issues employers are facing, help executives understand the variety of solutions that are available and, ultimately, assist them in developing a comprehensive benefits and compensation strategy that enables them to succeed in a world of increasing complexity," Durkin said.

To download the Executive Summary of the survey, go to www.ajg.com/NBS_2015.