Contrary to commonly-held beliefs, the focus for chief financial officers (CFOs) goes far beyond controlling costs when it comes to health benefits, according to a new survey that finds that as partners in making health benefits decisions, CFOs do not focus single-mindedly on financials.
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According to the survey of CFOs conducted by the Integrated Benefits Institute (IBI), nearly half (44%) of respondents identified controlling costs as the most important of their company’s top goals for health and related benefits.
A total of 345 CFOs, controllers, directors, vice presidents of finance, treasurers, and other senior finance executives at companies with annual revenues of at least $100 million responded to the survey.
The other top goals identified by survey respondents were:
- Attracting, retaining, (36%) and satisfying talent (15%);
- Helping employees become better consumers of health care (10%);
- Helping enrollees become healthier (9%); and
- Improving workforce productivity (2%)
The study results also reveal how companies’ health benefits have evolved since the Affordable Care Act (ACA), and how these changes connect to larger business goals.
For example, while shifting healthcare costs to employees is generally on the rise, the strategy is less likely among companies that place more importance on attracting, retaining, and satisfying talent and improving productivity.
Also, companies that place more importance on enrollee health were more likely to increase their use of wellness programs and incentives since the passage of the ACA.
“These results demonstrate that for CFOs today, health-management strategies extend well beyond controlling medical costs,” said IBI President Dr. Thomas Parry. “These findings go against the popular notion that CFOs demand a hard return on investments from health promotion programs, and that companies are scrambling for the cheapest options.
“If we want to understand where companies are going with health benefits, we need to think of them within the context of business strategies beyond cutting costs,” Dr. Parry concluded.
The results of this CFO Survey were delivered during the 2016 IBI Annual Forum, held February 15 to 17, in San Francisco, California.
The report—Finding the Value in Health—is available here.