Health plan design not only impacts employee engagement and lost time, but also how well year-end productivity goals are met (or not met). When it comes to the three health plan types featured below, high-deductible health plans produces the most engaged and highest-performing employees.
Most Likely to Exceed Year-End Goals
Employees that choose a high-deductible health plan (HDHP) show increased engagement at work, are on the job the most, and as shown in Figure 1 below, also exceed year-end work goals more than employees who choose an Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO) health plan. More than twice as many HDHP employees exceed year-end goals than HMO employees.
Figure 1: Percent of Employees that EXCEEDED year-end goals by health plan type
Least Likely to Fall Short of Goals
HDHP employees are not only more likely to exceed year-end goals, but are also the least likely to fall short of the goals. Figure 2 below illustrates the percent of employees in each health plan type that fall below target for their year-end goals. Employees enrolled in HMOs are the least likely to exceed year-end goals as illustrated above, but are equally likely to fall short of the target as PPO employees as shown in Figure 2.
Figure 2: Percent of Employees that ranked BELOW TARGET for year-end goals by health plan type
Health Plan Incentives
After exploring the relationship of health plan design with lost time and employee engagement, a picture is able to be pieced together of how health plan incentives affect overall employee productivity. HDHP design incentivizes employees to preserve their health which results in fewer lost work days, higher levels of employee engagement, and an increased likelihood that employee year-end goal rankings exceed targets.
Please note: Values in this study were adjusted for differences in health risk, salary, gender, marital status, and age.