"Retirement Plan Participation: Survey of Income and Program Participation (SIPP) Data, 2009," and "Variation in Public Opinion About Health Reform, by Plan Type: Findings from the 2010 EBRI/MGA Consumer Engagement in Health Care Survey"

Retirement Participation: The latest SIPP data show 59 percent of all workers over age 16 had an employer that sponsored a pension or retirement plan for any of its employees in 2009, down from previous levels (60 percent 1998 and 63 percent 2003), and the same as in 2006. Public Opinion About Health Reform: Most individuals with private health insurance have negative expectations of how the new law will affect them personally. Individuals with traditional health coverage tend to have more positive views than those with high-deductible or consumer-driven health plans. <A href="http://www.ebri.org/pdf/PR.899.18Nov10.HCS1.pdf">Press release </A>

Retirement Plan Participation: Survey of Income and Program Participation (SIPP) Data, 2009

SPONSORSHIP AND PARTICIPATION LEVELS: The latest SIPP data show 59 percent of all workers over age 16 had an employer that sponsored a pension or retirement plan for any of its employees in 2009, down from previous levels (60 percent 1998 and 63 percent 2003), and the same as in 2006. Workers participating in a plan increased to 45 per-cent in 2009, up slightly from 2006 (44 percent) but down from 2003 (48 percent).

VESTING: The vesting rate (the percentage of workers who say they were entitled to some pension benefit or lump-sum distribution if they left their job) stood at 42 percent in 2009, up from 24 percent in 1979. This increase is largely due to the increased number of workers participating in defined contribution retirement plans (such as 401(k) plans), where employee contributions are immediately vested, and faster vesting requirements in private plans.

PRIMARY PLAN TYPE: Defined contribution (401(k)-type) plans were the primary plan for 60 percent of workers with a plan. Defined benefit (pension) plans were the primary plan for 39 percent of workers.

Variation in Public Opinion About Health Reform, by Plan Type: Findings from the 2010 EBRI/MGA Consumer Engagement in Health Care Survey

LITTLE KNOWLEDGE OF PPACA: The 2010 EBRI/MGA Consumer Engagement in Health Care Survey finds that relatively few people with private health insurance consider themselves knowledgeable about the PPACA, the federal health insurance reform law enacted earlier this year. Roughly half say they are somewhat, not very, or not at all knowledgeable about the law.

NEGATIVE EXPECTATIONS: Most individuals with private health insurance have negative expectations of how the new law will affect them personally, with a majority saying they expect it will cause prices to go up and health care coverage and quality to go down. Individuals with traditional health coverage tend to have more positive views than those with high-deductible or consumer-driven health plans—possibly because traditional health plan participants tend to identify themselves more as Democrats, while high-deductible and consumer-driven plan participants are more likely to lean Republican. IMPACT ON

EMPLOYMENT-BASED BENEFITS: Very few participants in employment-based health plans say their employer has given them any information about the new law. Also, very few expect the law will have much, if any, impact on employers’ willingness to offer health benefits, at least for the next four years.

19 Figure 1 In SIP questions about important econo the Impact on Health Coverage techni In the det y weques P re to leav , partic ermin in 200 ipants ar e the plan no ation of primar 4. The ask e w employee y w mic issues. plan status, the answ e ere not counte d about contri their Topical Module 3, fielded in April d bution l most importa as vested, even er to the evels to “plan if the sa n t t pens ylary reducti pe y late ” question ion or r respo -July retireme 2009, asked que o w nded that the n pl as the ans fell initial cla nt pla y slightly. co n stions about w ssification. However, : Th uld receive a lump-sum dis e questio However, as salary ork ners’ participatio asks if anyone w “your tribution if h n in pla o n’s Variation in Public Opinion About Health Reform, by Plan Retirement Plan Participation: Survey of Income and Program Figure 3 Figure 1 Figure 5 Figure 7 Figure 3 Figure 5 Figure 9 Figure 7 a Trends in Retirement Plan Sponsorship, Participation, and Vesting Rates answ retirement a they left their ered tha nd/or plan no t their most importa pension plans. These t w. Workers w nt plan allow ho repo yp rted th es of q ed ta ax-d uestions had bee t their empl eferred contr oyer ior union did not butions n asked previously and that have a pensi their emplo in the emplo yon p er’s ylcontributions depended on thei e an or retirem e benefit supplements to the ent plan for any of its Cu r rrent reductio benefit is defi n plan ned by s become a form mor ula usua e import lly i ant nvolving yo for workers, ur e it is arnings likely that t and yehars on th eir contributions to th e job,” are “contributions made ese plans will needby you to grow Amount of Expected Impact Degree Knowledg Inf of Impact e ormation About of PP of PP PP About A A CA CA, ACA, on P PP b y Among A Plan e CA rsonal Health Co Pr Ty Those o pe vided b , August Expecting y Emplo vera 2010 gy eer , , Much like the findings on health care costs, more individuals expect their health care benefits to decrease than to stay Primary Retirement Plan Sponsorship Retirement Plan Among and Part All Nonagricultural icipation Among Wage and Salary Nonagricultural Wo W rkers, age All Workers’ Participation Politica l Party Affiliation, by Plan Type, August 2010 Participation (S Type: Findings from the 2010 EBRI/MGA Consumer Average Percentage IPP) Data, 2009 of Annual Earnings Contributed to a Salary Reduction Plan, Among Workers for Pay, Ages 16 and Over, Various Years, 1979–2009 contributions, that the Population Survey (CPS employees were counted in the se y ha ) in Ma d the abi y 1979, Ma cond set of lity to choose h y 1983, numb oMa w ers as working fo a yn 198 y of the 8, and A monp er an emplo ril 1993 prior to y in the plan yer wa wh their inclusion in s invested, or that the ere a plan was s SIPP in the 1996 ponsored if the y had taken y, 2001, 200 or cou reporte ld take a loan d that 4, an thei d r 2008 and/or if they e your xpect em to maintain ployer goin th g into a eir curr A nent iP ne divi lif rse dual onal style in r b b account y yImpact, Plan Plan etire T T fy y ment. b ope pe r you,” or i y Plan ,, A August 2010 ugust 2010 Tyfpe “your employer , August 2010 contributes a value equal to a the same or i 25% ncrease, an Ages 16 and and Salary d those enroll Over, Workers, Ages 21 8Who Participate ed in CDHPs aand nd H in Over, by Da Pension HPs are mor Age, Various Years, 1988 Plan, e likelVarious y than those wit Years, 1988 h tra –2009 ditional cov –2009 erage to 45% Nonagricultural Wage and Salary Workers, Age 16 and Over, Various Years, 1988–2009 The sponsorship 70% level for all workers for pay ages 16 and over (defined as the fraction of workers whose employer or 23%* Engagement in Health Care Survey 70% 45% a from their plan emplo Panels. While th yer offered (characteristics virt ese datasets have similar questio a profit-sharing plan or a stock plan in a ually exclusive to defined contri ns, theyfollow-up are not i but dentical nor are t question. Moreo ion plans) were a he methods the s ver, participants w dded to the defined contribution cate uh rve o repo ys use rted n ?foot r instance, the CP being gory, if the able to rec y S were eive by Craig Copeland, Em Sponsor ploye ship Lev e Be el nef Par it R ticipation Lev esearch Institut el Vesting Rate e percentage of 70% your earnings each year and there is a rate of return on that contribution. This type of plan is sometimes expect their health benefits to 60% decrease as a result of health reform. 63% 65% 21–30 31–40 41–50 51–60 61–64 65 and up union sponsors a pension or retirement plan for any of the employees at the workers 41%* 40% ’ place of employment) was November 2010 • Vol. 31, No. 11 80% 60% While these top-line results from SIPP support findings from other 39% data, the benchmarking of these data is important some benefits at retirement if the not alread interviewed y ther all of its respondents in a single month, w e. Moreover, anyy one sa were to leave th ying their benefit e plan no hile SIPP was affe w ww ea re c s ted b counted as vested in the second set of numbe conducted over a y their participation in the Social Security four-month period. The r 59% esults in this p rs if the rogram yw late a Notes s classif cr respon article are ied as ded 40% 8.0% a b 59% called a cash balance plan.” The first (as well as the third question) describes a DB Tr plan, aditionawhi l le t HDHP he secon CDHP d describes a a b 59% c 1988 1993 1998 2003 65% 2006 2009 By Paul Fronstin, 60% Employee Benefit Research 20% Institut 57% e 39%*38% 53% Traditional 59%* HDHP CDHP 40% 56% 59 percent in 2009, according to SIPP (Figure 1). This is higher than or equal to the estimates from the CPS 65% 64% 55% 37% 60% 17 when examining the more detailed SIPP 19% questions that are not in other datasets; this benchmarking allows for presented as tr that the having a defined 20% y could e re nds, but caution benefit plan. Las ceive a lump-sum distribution if the should be used w tly, anyone who h did not ans en dra y left thei wing co r plan wer nclusions from the th no at the w. Fu y prther articipated in a plan until the follow-up que 63% more, if the results due to t y were in he surve cluded in the prof y differences. T it- stion sharing or stoc on participating in ypically, different k plan Four in 10 CDHP enrollees (41 percent) and HDHP enrollees (39 percent) expect their health coverage to decline as a DC plan. The survey also co 52% ntains follow 62% -up questions describing specific features o 35% f the most important plan. In 55% 62% 19% 61% 35% 70% supplements, which ranged 53%* from 56 percent in 1979 to 59 percent 67.1% in 1993, but below the 1998 and 2003 SIPP 50% 60% 18%* 35% 60% 35% 18% 48% in the 1988 follow-up question o surve a tax- comparisons o y defer s yield diff red plan erent results. Th f im was considered to portant rre participated in a 401(k)-t sults in th erefore, have a defi while some trends ar e rened contribution tirement ype fiplan eld f e ref 60% plan. from the 19 o lected in the data r analysts an 93 and d SIPP follow , it is important to note that a p policymaker -ups question, the . These mor yorti w ee detailed o re consi n or all of an dered v questions y tr ested, end a 47% result of the h 50% ealth reform law (Figure 5). In contrast, c 3 in 10 traditional plan enrollees (30 percent) expect benefit some cases, the ans 46% wers are in conflict bwith the type of plan that t a he worker has. Consequently, the estimates of the 35% 60% 46% 17c% 46%* 46% b 9 58% Traditional HDHP CDHP 58% 16% 44% 44% 44% 45% Traditional HDHP CDHP estimates of 50%60 percent and 63 percent, respectively, a 43% nd equal to the 2006 level. The percentage of workers 47% 43% 57% 42% 57% since these ty ma will y be be d eue to th xamin 45% pese differences in the surve ed of plans prov in future E ide lump-sum distributions. BRI publicatio ys. How ns. ever, the data f or 1998, 2003, 200 60.0% 6, and 2009 are from SIPP, so the trend fr 42% om 1998 to 7.5% cuts. ab 15% c 56% Introduction 56% 41% 41% 41% Introduction pension/retirement plan type in this stu 55% dy combine answers f57.7% rom these 7.5% questions to determi42% ne the type of workers’ 15% 30% 20 60% 56.7% 30% 15% 30% Traditional HDHP CDHP 55% partici This is consist pating in ent 7.5% a w plan ith findi regar ngs from Craig Copel dless of wheth 54% e and (Ma r the plan y 2006 wa ), s sp op. cit. In onsored at the workers’ this study, the percentage of families w place of employment ( ith a retireme the nt plan that 15% 40% 55% 54% 7.4% 14% 2009 should hav 30% e limited effects from survey differences. However, the 2008 Panel 18 did include revisions on the order 7.4% of the questions and Retirement Plan Participation: Survey of Income and 40% 28% 53% most important (or primary) plan as determined by the worker. 52% 51.5% 13 There A critical is component o no shortage o 10 ff savin publig c opin for retir ion surv ement is th eys relate e avai d to 34%la the Pat bility an ient d use Protection a of an employ nd A ment-based re ffordable Caretirement Act (PPACA plan), . 37% 40% 51% had a defined be This section w 35% ill focus only nefit plan onl on th y was found to have e 1988, 1993, 19 decreased fr 98, 2003, 20 49.8% om 06, 40.0 percent in and 2009 results, as the 1992 to 24.1 y are deriv percent in 2004. 13 ed using relatively % consistent follow-up p articipation level ) increased to 45 percent in 2009 from 44 percent in 2006, just surpassing 51% its 1998 level of 44 per- w Regar ho wad s asked t less of he follow-up deta health plan type, iled questions on the plan t 1 in 10 adults with priva ypes. te he Despite these caveats, these datasets provide the most compa alth insurance expects their benefits to improve. rable Between 12% 50% 1 12% 50% Program Participation (SIPP) Data, 2009, 25% 46.3% p. 2 25% Americans with a retirement plan have significantly more wealth, on average, than those without one. Consequently, enacted Marc 50%h 23, 2010. However, differe 28% nces in public opinion among individuals with private health insurance have 30% 25% questions. Furthermore, unincorporated self-employed workers are excluded (as explained in endnote 8), 11 w% hile incorporated self-employers cent and within the range of the levels found in 1979–1993 but below the peak value of 48 percent in 2003. results for these t 28–35 percent ex rends. pect their benefits to remain unchanged. One-fifth to one-quarter are unable to say how they expect 7.1% When follow-up questions were considered along with the pension type question, 60.0 percent of partic 10%ipants were 21 24% 24% 40.5% when not b When the S een tryin ex 25% gurv to plored as e assess how y of Consumer they rprepared Am ela Finances re te to type fined eri ofcans are in h its questions for retirement plan t ealth plan meetin . This artic g their le us exes pecte ype i data dentification, a similar increase in defi d r from etirem a rece ent ent s xpenses, urvey ( it is im 2010 EB portant ned bene RI/MGA to fit plan 10% 30% 30% are included. Those w 9%* orkers 38.2% who are determined to work in the agricultural industry from their most important job or business, respectively, 39.1% 19 9%* 20% their benefits to change. Figure 9 20% Variation in Public Opinion About Health Reform, by Plan determined to 20% 45% 40% have a DC plan as their primary plan in 2009 (Figure 5); this is smaller than the 67.1 percent found in EBRI Employee Benefit Research Institute Notes (ISSN 1085 ?4452) is published monthly by the Employee Benefit Research 20% 20% 8% 5 7.0% know th use was fou e perc nd. With the ne entage ofw wor plan k t ers with ype identification questi an employment ons, the -bas percentage of ed retirement pla families w n. ith a working-age head th at had a participant in a Consumer Engageme th nt in Health Care Survey, or CEHCS) to examine how individuals with different types of health The one statistic that has shown a relatively steady increase since 1979 (until a decrease occurred in 2006 7%) is the are also exclude The Current Pod. This work forc pulation Survey (e incl CPS) is conducted b udes only 22% the wy o U rkers .S. Cens who w us Bureau for ould be subject to the Bureau of L their emplo abor yer’s decision to off Statistics by 17% inte erview r a plan ing ab instead out 50,000 of being Institute, 1100 13 St. NW, Suite 878, Washington, DC 20005-4051, at $300 per year or is included as part of a membership 16% Proportion of Salary Reduction Plan Participants by Percentage of 2006 but more than double the level found in 1988. Correspondingly, a larger percentage of workers had a DB plan as 15% 30.9% Type: Findings from the 2010 EBRI/MGA Consumer defined benefit plan in 2001 was 42.3 percent, co18% mpared 18%with 48.1 percent in 2004. See Craig Copeland, “Individual Account Retirement plans think 20% health reform will affect their personal health care costs, their personal health coverage, and the quality of vesting rat subscription. Periodic e. Th 39% e vestinag r ls po ate is th stage rate paid in e percentage Was ofh work ington, DC ers who , and additional mailing offic say they were entitlede to some s. POSTMASTER pension : Send addres benefit or s households and able to make their o 40% asking numerous questi wn decision, such as the self-emplo ons about individuals’ w yed. ork status, employers, income, and basic demographic characteristics. 15% 15% 25 25.8% 8% 30% 30% th 15%* 15%* 10% 20% 15% 15% 15% their primary plan: 39. Annual Earnings Contri 1 percent said a defined benbuted efit plan (Among Thos was the 37% ir primary r ee R tire ement sponding), plan in 2009, compared with 14% Other Employee B changes to: EBeRne I N fit otes Res , 1100 13 earch Institute St. NW, Suite 878, Washi (EBRI) publications have ngton, DC 20 examined the 005-4051. Co percenta pyright 2010 by Em ge of Americans ployee Benefit who are at Impact on Health Care Qual 5% ity 12% Plans: An Analysis of the 2004 Survey of Consumer Finances,” EBRI Issue Brief, no. 293 (Employee Benefit Research Institute, May 2006) for 36% the health care services that they receive. Individuals with traditional 12% health coverage, consumer-driven health plans lump-sum Furthe Engagement in Health Care Survey, rmore distribution , CPS has asked questions in a if they left their jo consistent manner b at the time of, each March since at l or very near tp. 13 o east 1988 about the time o f, their i whether nterview by a worker worked for SIPP. This an rate 6.6% 5% 11% 11% 35% 10% Research Institute. All rights reserved, Vol. 31, no.11. 14 30.1 percent iN n 2 o006. nagr How icu eltu ver, this is ral Wage and substantially lo Salwe ary Wor r than the kers, 46.3 p Ag ercent es 16 in 1 and 998 an Over, d the 1 2009 988 level of 56.7 per- risk of not bei 35% ng able 10% to cover basic expenses in retirement and the amount of addi 33% tional retirement savings 8% necessary more detail. In Copeland 10% (October 2010), op. cit. , the percentage of workers participating in an employment 17.5% -based retirement plan showed a decrease 33% (CDHPs Most adults ), an 10% wi d high th privat -deduct e he ibl ale th insura health pla nce ns (HDH expect a Ps) ar negati e examin ve impact ed. or a mixed impact of health reform on the quality of increased fro employer or unio m n that sponsored 24 percent in a pension 1979 to or re 41 percent in tirement plan fo 1993 r a, an ny of its emplo d (accord ying to ees, and then if th SIPP) remained at e worker was included in 41 percent in that plan 1998, ). 10% 11% 20% 0% 8% 8% 32% 20 6.5% 2 10% 4% 7% cent of participants who reported a DB plan as their prim c ary plan. b30% to pay for a basic level of expenditures in 9% retirement. Key components of these typ 3% es of studies are the percentage of from 2008 to 2009. However, the 2009 number from CPS is still higher than the 2006 number in CPS 2% 12.0% —52.7 percent of full-time, full-year 10% 1979 1983 1988 1988 1993 1998 2003 2006 2009 health care services that they receive. CDHP and HDHP enrollees are more likely than traditional plan enrollees to 29% before increasing to 44 percent in 2003, decreasing in 2006 to 41 percent, and increasing to 42 percent in 2009. Some 30% 29% 22 6 28% These plans h 0% ave also been ref 4% erred to as 401(k)-type plans in other EBRI publicati Year ons. For example, see Craig Copeland (August 2009), American wor 0% 5% kers with employment-based ret EXEC The Employee iUTIV rement plans Benefit Research Institut E SUMMAR and the chearacteristics (EBRI) was founded in 1978. Its Y of these work ers that mak mission is to e them w See Craig age and salar Cop 5%yeland, “Emplo workers participa yment-Bas ted in 2006, com ed Retirement Plan Participation: Ge pared with 54.4 percent in 2009. ographic Differences and Tren The CPS trend also matched the SIPP trend f ds, 2009,” EBRI Issue Bri rom 2003 ef, no. expect a ne 10% gative impact on quality. Overall, 37 percent of CDHP enrollees, 35 percent of HDHP enrollees, and of this increase appears 3% to result from follow-up questions added to the 1988 employment benefit supplement, which Strong Democrat Lean Democrat Independent Lean Republican Strong Republican Undecided Prefer Not to Answer Knowledge About PPACA The decline in DC plans reported as be ing the primary plan can be explained by improved accuracy in the identification No Information 1% Has Been Ver contribute to y Little Information Has , to encourag Some Infor e, an mation d to enhanc Has Been Detailed Infor e the developmen mation Has t of sound empl Unable to Sayoyee benefit op. cit. The contributions could be either before or after taxes. Source: Employee Benefit Research Institute estimates of the May 1979, May 1983, May 1988, and April 1993 Current Population Su 2.2% rvey em 1.8% ployee benefit to 2006. In cont 348 (Emplo more or le yee B 25% ss lirkely to a enefit Research I st, the findings from SIPP and C participate nstitute, October in them. PS contradi 2010) for the cted each other f latest results from CPS on emplo rom 1993 to 1998 an yme d 1998 to 20 nt-based reti 03, rem whent plan par ere the SIPP data ticipation. 23% 30 percent of traditional Provided plan enrollees Been Pr expect a ovided mostly negativ Provided e impact of health Been Pr re ovided form on the quality of 2.0% health care more clea Who we are rly supplem measured this ents and the 1996, 2001, issue, and 2004 Panel but it alof so appears th the Survey of Income and Program at other factor Participation s were im Topical Module 7 and 2008 Pane portant—such as t l of the Survey he i of Incom ncreased n e umber programs and sound public policy through objective research and education. EBR 0.9% I is the only 0% of defined be 0%nefit plans in the survey, and changes made in the structure of the survey to ensure consistent questions 0% Most adults with private insurance admit that they are not very knowledgeable about the PPACA, the CEHCS finds. and Program Participation Topical Module 3. Source: EBRI/MGA Consumer Engagement in Health Care Survey, 2010. show an increased level of participation from 1998 to 2003 and a decreased level of participation from 1993 to 1998, whereas Copeland 0% 23 a 6.0% services (Figure 6Co ). ntribute About Mostly d 10% 3 Pos 0 p itive e Impac orcent, r privat More t re e, nonprof gardles M is tix , nonpar of ed, p Some lantisan type, Positiv , e and Washington, DC-b exSome Negativ pect both epos ased organi itive and Mos zat ne tly i Negativ on com gative e Impac m im itted exclusivel pacts t on quality. y to of work Retireme a ers par The fraction nt Plan Participation: Survey of ticipatin Extremely of w Knowledgeable orkers g in wdefin hose eme ployer d contri V or er union sponsors y Knowledgeab bution r a e plan for letireme Somewhat any of nt the Income and Prog pem lan Knowl ployees s ( edgeabl su at c the w h as 40 e orker' Not Ver s place of em 1( yk) p Knowledgeab lan ploym ram Parti s) ent. , wh le e Not At re eAll m cp Knowledgeab ipation (SIPP) loyee con le tributions 7 I Expect Benefits to Increase I Expect Benefits to Stay the Same I Expect Benefits to Decrease Unable to Say The sponsorsh Traditional =ip level is defined as the fr Health plan with no deductible or action <$1,000 of (indivi workers w dual), <$hose emplo 2,000 (family).yer or union sponsors a salary reduction plan for any of the 20% with regardb to the identified plans. Furthermore, given the asset market decline in late 2008, the value of DC plans was This artic See U.S. De le pr paesents results rtment of Labor, Bureau of L from the la abor test Survey Statistics, of I BLS Handbook of ncome and P Mrogram P ethods, Chapter articipa 8, t National Co ion (SIPP) m da pen ta on r sation M etirement pl easures www. an Regardless of Workers wheth who reported er indivi Defined Benefit that their em duals ployer have tra or union did not have ditional insura a pension Defined Contr plan or nce, retire a HDHP, ibution ment plan for any of its em or a CDHP, l ployees ess than were Other not counted /Don't Know 5 percent report that as working for an they Source: EBRI/MGA Consumer Engagement in Health Care Survey, 2010. (2010) sho b wed a decreased and i 1988ncreased level, respectively 1993 . It is 1998 unclear why the 2003 differences exist bet 2006ween the data2009 sets. Some possible public policy research and education on economic security and em 11, 12ployee benefit issues. HDHP = High-deductible health plan with deductible $1,000+ (individual), $2,000+ (family), no account. Between 5–10 percent expect no impact, while about 9 percent expect a mostly positive impact on quality. Between Data, 2009 em aployer where 1988 a plan was sponsored, even 1993 if they reported that their em 1998 ployer offered a profit-sharing 2003 plan or a stock plan in 2006 a followup question. Participants 2009 are immediat3ely vested, Source: EBRI/MGA and faster v Consumer Engage esting req ment in Healt uirem h Care ents Survey,that have 2010. been imposed since 1979. The decline in 2006 employees at the Traditio workers’ nal = place of emplo Health plan with noy de ment. ductible or <$1,000 (individual), <$2,000 (family). potential c ly diminished relative to the perceived value of DB plans. Therefore, those with both plan types may have bls. gov/opub/hom/homch8_a. htm In particular, agricultural workers and certain o Year ther small business owners are excluded from the BLS are partici exp CD tre ation. Hm P =el wCon ho y s reported not being Sour knowledgeabl umer SIPP is ce: -drEBRI/MG iven condu heaable to receive lA th Cons pl eca abo ted n umer withu by th EBRI’s member d som Engagement t th educti e benefits e l e U.S. C blee $1, gislation, at in Health 000+ retirem e (indivi nsus Bu ship includes a ent Car if they w du and e Sur al), $, ronly 7–8 perc v ere to e ey 200 au , 2010. 0leave + to (fcross-section of a exam m the plan now ily), with in ent report t ae America w ccoun ere not counted t.pension funds; businesses; trade associations n hs’ a as veste t they a participatio d, even if re they later ve n in ry knowle responded various dg that eable ; Sour a ce: EBRI/MGA Consumer Engagement in Health Care Survey, 2010. answers include the issues from endnote 4 on b how the questions are 24.2% Type of asked, as w Retirement Plan ell as which job is determined to be primary or the type of Traditional = Health plan with no deductible or <$1,000 (individual), <$2,000 Age (family). HDHP = High-deductible health plan with deductible $1,000+ (individual), $2,000+ (family), no account. a a 16–19 percent they could receive are unaa ble lum to p-sum say how distribution if he they left alth their re plform an now. will This allow imspact th comparability e qua with the lity of t tabulations he from heal earlier years. th care services they receive. in the vestin * Difference g T betw rrate closely aditional Traditional een HDHP/ = Health = Health C m DHP plan atches the plan and with no deduc Tr with no deduc aditional dec tibl is st e or tibl atline e or is <$1,000 ( tica <$1,000 ( lly in t sign h indiv ife ic indiv apart in dual) t at idual) the ,icipation <$2,000 ( , <$2,000 ( p = 0.05 family or lev f amily better. ).e)l, . and the increase in 2009 matches the increase b c labor unions; health care providers and insurers; government organizations; and service firms. rplace esults. d a highe c HD r value HP = High on -de thei ductible r DB healt pla h plan ns. Si with de nce most r ductible $1,000+ etir (indiv ement idual),plan $2,000+ pa (family), rticipants no account. do not have both plans types, the government a Workers b CDHP n b d private-sec w = ho reported Consumer- that their em drivteor programs t n healt ployer h plan or with union de did not have a pension hduct at rel ibleate to $1,000+ t (indiv h plan eiidual), r income or retire $,2000+ ment plan for any of its em a (family), nd well with -bein ployees g. Th were ese counted as latest data working for an are from Topical SPONSORSHIP AND PA (Figure 1). M Sour Sour ocst report t e: cEmploy e: Employ ee Benefit Res RTICIPAT ee Benefit Res hat they a ear ION LE ear ch re c Ins h som Ins titute titute VELS: es ewhat timates estimates The lat kn of the May of ow the May led est SIPP 1988 g 1988 eab and Apr and Apr le data (3 il 1993 Cur 5– il show 59 1993 Cur 39 pe rent Population rr ent Population ceperc nt) or ent of all Sur not very Sur veyv employ ey employ workers over age kno ee ee benefit w benefit led supplements g eable 16 had an w 24orker as classified b HDHP = HDHP = y High-deduc th High-deduc e differe tible nt surve tible health health plan ys. Fu plan with deduc with deduc rthermore tible tible $1,000+ , a $1,000+ simila (indiv (indiv r issue has arisen in the idual), $2,000+ idual), $2,000+ (family (family ), no ), no acestimation of the pe cac ount. count. rcentage of Americans with Source: Employee Benefit Research Institute estimates of the May 1988 and April 1993 Current Population Survey employee benefit c These percentages include as a base both the workers with a retirement plan and those without a plan. Therefore, of those with a plan, em c ployer c CDHP w here = Coa plan nsume wras sponsored -driven healtif hthey plan reported that with deduct their em ible $1,000+ ployer offered a (individual), profit-sharing $,2000+plan or a (family), stock withplan account. in a followup question. Participants who and account. supplements the 1996, 2001, and 2004 Panel and the 1996, 2001, 21and 2004 of the SurPanel vey of of the Sur Income and Pr vey of In ogrc am Par ome and ticipation Program Par Topicatic l Module ipation T 7 opic and a2008 Panel of l Module 7 and 2008 the SurPane vey of l of the in the particip CDHP = ation lev CDHP = Cons Cons e umer-driv l. umer-driv en en health health plan plan with deduc with deduc tible tible $1,000+ $1,000+ (indiv (indiv 4idual), idual), $,2000+ $,2000+ (family (family ), with ), with accac ount. count. supplements and the 1996, 2001, and 2004 Panel of the Survey of Income and Program Participation Topical Module 7 and 2008 Panel of overall decline was relatively small. ( Module employer 35–40 p 3e of that rce reported th nt) e 2 sp . not being able onsored B 00e8tw Pa ee nel, to a n receive pension or 12 fiel –1 som ded from 7 e benefits percent retir at retirem Areport t e pment ril–J ent if uly they w plan hat th 200 ere to leave fo 9. ey are r any o the plan now not at f its em w all ere counted ployees know as vested, lein dge 20 able if 0 th9 ey , do about later responded wn from thethat they could healt previous h reform level law. s health insurance w Surh vey en comparing of Income and Pr the results from ogram Participation both surve Topical Module ys, pa 3. rticularly with regard to the time frame that the questions refer to in the Inc* o* Differenc me Difference and Pre ogr b between etween am Par HD tHDHP/CDHP icipation HP/CDT HP opic and and al Module 3. Traditio Traditional nal is is statistically statistically significant significant at at the the p p = =0. 0.05 or 05 or b better etter. . * Differenc * D the ifference Surve ey between b of Inc etween ome HDHP/CDHP HD and Pr HP/Cogr DHP am Par and and Traditional Traditio ticipation nalT is is opic s statistically tatis al tic Module ally s significant ignific 3. ant at the at the p p = = 0.05 or 0.05 or better better. . 8 60.3 percent had a salary reduction plan as their primary retirement plan in 2009, compared with 64.5 percent in 2006, 55.0 percent in 2003, receive a lump-sum distribution if they left their plan now. This allows comparability with the tabulations from later years. Contributed 5% or Less In this section, all workers with earnings age 16 a EBRI’s work advances knowledge and unders nd over were included; this means all self-employ tanding of emplo ed workers, wyee benefits and their hether their business was Impact on Employment-Based Coverage 48.9% surve (60 The p di yerce . See Pau ffernt 1 ence 998 s l Fronstin, “Cou by plan and 63 type pent rcent are ing the Un not statist 2003), insure and t id: A Comparison cally signific he same a as n of National Surv in t. 2006. Work eers ys,” partici EBRI Issue pating Brief, in no. 225 a plan incre (Emplo ayse ee Benefit d to 45 per- and 15.7 pe Nonag rcent in 1988. This de ricultural Wcline in sa age a importance to nd lary Salary Workers reduction plans is the nation’s econo — explained b The rmy emainder o yamong policy the same factors that f this study makers, account for the the news is restricted to media, and overall non the public. It decline in agricultural defined incorporated or not. However, any workers who were family workers not working for pay were excluded. For the SIPP Topical Module, the Research Institute, September ce Very nt in few a 2009 dult , us with p sligh employment-based c tly from 2 2000) for f 006urthe (44 pe r cooverage repor rce mparisons bet 13nt) but do ww e t th en the surve n fat i rom nformat 2003 (4 ys. ion a 8 pe brce out th nt). e health reform law has been does this by conducting and publishing policy research, analysis, and special reports on Salary Reduction Plans contribution plans being c Data Sources onsidered the primary plan—better identification of DB plans and the change in the perceived importance of DB wage an What we do d salary workers ages 16 and over. Among these workers, 48.4 percent participated in a pension or worker’s main job or business is determined by which job provided the most income in the reference month. However, some important employee benefits issues; holding educational briefings for EBRI members, congressional and provided by their employer. Only between 2–4 percent report that detailed information has been provided, while plans. Personal Impact of PPACA Retirement retirement ppl laans such as n in 2009, u 401(k p from 4 ) plans 6.7 per or 403(b) plans cent in 2006 b are referr ut belowed to as salary the highest level reduction recorded plans, a over th s a worker e study per ’s ta iod ke- of 15 26.9% characteristics of The SIPP data have this job or business ar the advantage e not included in the topical module but in th of providing relatively detailed infore core portion o mation on the f retirem the survee y. If a nt pl job ans that was determin workers ed to be federal agency staff, and the news media; and sponsoring public opinion surveys on employee In SIPP, only monthly earnings are given. Consequently, the earnings had to be annualized by multiplying by 12 for comparisons with the VESTING: The vesting rate Contribute d B (the etween percentage of workers who say they were entitled to some pension benefit or lump- About the Survey 12–15 percent report that some information has been provided, and 2218–22 percent report that very little information home 51.5 ppay can ercent in 2 be003. used T (re his c duced) to ompares make with contributions just over 47.2 to the percent in plan 1 . 9 9T 8hes , 49 e .3 plans perc ar ene t in the 19 pre 93, d and omin 47. ant type 7 perce ofnt i den fined the most importa participate in, nt in the topical module, informati but they also 5% an d have th 10% benefit issues. e drawback of bein on from the EBRI’s Ed first g job of the fiel ucation and Re ded only worker on from the core is ce ev search ery thr Fund e (EBRI-ERF) performs used for the em e to five years. ployer/job char In com the char pariso acteristics itable n, the , Despite the lack of knowledge about the health reform law, a majority of adults with private insurance do have an past surve 25 ys. This creates issues for those workers who have uneven earnings during the year, but in most cases the monthly earnings are sum distribution if they left their job) stood at 42 percent in 2009, up from 24 percent in 1979. This increase is largely has be Not all salar en prov y reduction plan par ided (Figure 7)ticipants had co . Nearly one-half o mplete data nee f traditio ded for calculating this number, nal plan enrollees (47 perce eitn her because the t), 53 percent of C earnings o DHP r the enrollees, 14 This study is based on data from the educa 20tiona 10 EBRI/M l, and scientif GA Co ic func nsumer En tions of the Instit gagement ute. EBRI in Health Care -ERF is a tax-ex Survey, an on empt organizatio line survey n contributio 1988 (Figur ne 2). retirement However, plan. t Th he l e sponsors evel of par hip ticipation level of varied these plans for greatly acro nonagric ss various wor ultural wa ker demogra ge and salary workers phic characteris age t16 ics. (firm size, industry, union covered job, hours of work) of this worker in this study. Furthermore, if the business is determined to be the most Current opinion abo Popul ut ation Su the expecte rvey d(CPS), impact th also con e legi dslation w ucted by th ill ha e ve on U.S. Ce them nsus pe Bureau, rsonally. On providly es ov about eral 1l in pa 5 rticipation (17–20 pe lev rcent els of ) is reflective of the earnings for all months during the year. In addition, all income figures are in 1993 dollars, so all of the 1998, 2003, 2006, and due to the increased number of workers participating in defined contribution retirement plans (such as 401(k) plans), contributions were not determinable. Elev supported b en percent of the sample y contributions Figure 6 of salar and grants. y reduction participants is eliminated because of this issue. and 59 percent of HDHP enrollees report that no information has been provided. The difference between CDHP/HDHP of 4,508 privately insured adults ages 21–64 fielded in A Figure 4 ugust 2010. The survey was conducted to provide nationally 5, 6 Figure 6 Figure 2 Figure 8 Figure 2 important, the and over was first 51.0 business of th percent ie worker f n 2009, a sli rom th ge core is ht declin used for e from characteristics o the 2006 rate of f the business in 52.4 percent a this analy nd an sis. Likew increase from ise, if the th woe 1 rker is 988 workers on an annual basis but does not provide information on the plan types in which the workers are participating. unable to say whether the law will have an impact on thFigure 4 em personally (Figure 2). Fifteen to 20 percent expect “a great 2009 income amounts were adjusted appropriately for the interveniFigure 8 ng inflation between 1993 and 2009. Using the consumer price index where employee contributions are immediately vested, and faster vesting requirements in private plans. Salary Reduction Plan Sponsorship Level, Participation Level, and enrollees and traditional plan enrollees is statistically significant. Eight to 15 percent of individuals with employment- Expected Impact 23 of PPACA on Personal Health Care Age—The level of Expected P Expected Impact participation in Likelihood ersonal Impact a r That Emplo of PP etirement ACA of PP on Quality plan yer incr A Will CA, eas Contin bed y of Health Care Ser Plan with the age o ue Ty to Pr pe, A ougust vide f the vices, wo 2010 rker through age 60, then representative data re Retirement Plan Sponsorship garding the growth of CDHPs anand d HDHPs Participation Among , and the impact of tNonagricultural hese plans and consumer determined to o 26 rate of 26.9 percent nly work for (Figure 6). others or to onl The parti y have acipation business, the level i first job or business data, res n these plans for these work pectively ers (34.6 perc , is used to provide ent) was data on the also l ower Trends in Retirement Plan Participation Rates Among Nonagricultural Wage and Salary deal The Bur ” of im eau o pac f Labor t, 26–3Statisti 0 Proportion perce cs’ (BLS) Nat nt expect of Salary soime imp onal Com Reduction act, an pensa d tion 19– Plan Participants Surv 23 pe ey an rcentnually expect exami by Percentage a littn le e impact. s establishm Elev of ents on en to 17 partici perce pation nt (CPI), the dollars in 1993 would have to be multiplied by 1.4290 to have constant 2009 dollars, so the upper bound for the lowest-income In a very large database of 401(k) plan participants, Sarah Holden and Jack VanDerhei, “Contribution Behavior of 401(k) Plan Participants,” Primary Plan Percentage Among Nonagricultural Wage and EBRI Issue Briefs are periodicals providing expert evaluations of employee benefit issues and Costs, by Plan Type, August 2010 based coverage are unable toHealth Benefits say whether the b employer yAfter 2014, Plan Type has pr , A by ugust 2010 ovi Plan ded Tany in ype, A formatio ugust n abo 2010ut the health reform law. decreased. In 2009, 35 perc Wage and Salary ent of 21 -30-year-ol Workers, Ages 16 d workers partic and Over, Various Years, 1989 ipated in a retirement plan, wh –2009 ile 62 percent of 51 ?60 engagement more generally on the behavior and attitudes of adults with private health insurance coverage. The employer or busi Workers, ness characteristics. Ages 16 and Over, by Annual Earnings in 1993 $s, Various Years, 1988–2009 in 2009, com 35%pared with theAnnual 36.3 percent Earnings in 2006, Contributed (Among Those but much higher than the 15 Responding), .3 percent in 1988 and 29.1 percent in in various employee benefits, including retirement plans. However, this survey has limited information on worker PRIMARY expect no group would be $ impact. PLAN 7,145 in 2009 dol TYPE: Definelars; for the ne d contributio trends, as well xt l n (401(k owest-inc as cr)-ty itical analy ome gr pe) oup the uppe plans ses of wer emplo er bo thy e und ee benefit po primary would be $ pla licies an n 1 for 4,290 in 2009 dol 60 d proposals. percent of workers lars, etc. EBRI Notes is a with a EBRI Issue Brief, no. 238 (Emplo Salary yee Benefit Resea Workers, Ages 16 rch Institute, Oct and Over, ober 2001Various Years, ) found the average b 1988 efore-ta –2009 x contribution rate to be 6.8 per- Our 40% 80% 40% 70% year olds did so (Figure 3). For workers over age 60, the level of participation decreased, reaching 32 percent for those 7 sample Source: was ra Employendomly e Benefit Re draw searcn h Insti from tute estim Synovat ates of e’s onli the 2008 P nea pan nel of e the l of Su more rvey of tha Income n 2 and millio Program Particip n Internet ationusers w ho have agreed to Nonagricultural monthly Wage and Salary Workers, period 37%* ical providing current information on a variety Ages 16 and Over, 1993 of employee benefit topics. 1998. In addition, 29.2 percent of nonagricultural wage and salary workers age 16 and over had a salary reduction plan characteristics plan. Defined bene (specific fit (pally, ension) plans occupation, wer union status, a e the primary nplan d part-t for ime/full-tim 39 percent o e fwork) workers. and c ertain worker categories. cent in 1999. While this number is close to the number re Less than $5,000 $5,000–$9,999 ported in this study, there $10,000–$14,999 are two explanations for the differ $15,000–$19,999 ence: (1) in the Holden 60% 9When it comes to the fut Spons ure of orship Lev employ el mePar nt-base ticipation Lev d cov el erage, few individuals think their employer will not continue to Topical Module 3. 16 See endnote 4 on the comparison issues to the CPS supplements. ages 65 or older. This overall trend EBRI’s has be Pen consistent ension Investme over nt Re the port ent provides detailed fin ire study period. In ancial 20 in09, a formation on th ll of the work e universe of ers had a participate in research surveys. This surv35% ey used a base sample of 1,996 and a random oversample of individuals with In terms See Alan L. publications of dif Gufstman and Thom erences by$20,000–$24,999 plan typ as L. Steinmeier, “Imperfect Kno e, in 30% dividuals$25,000–$29,999 enrolledw in ledge, Retiremen a CDHP or $30,000–$49,999 an HDHP t, and Saving,” p are more likely th aper pr $50,000 or esented a mor an those enrol e t The Third Annu led in al a that they considered as their primary retirement 29%plan in 2009. This was a slight change from 30.1 percent in 2006, but 30% 67.9% and VanDer35% hei study, only 401(k) participants are examined, whereas the SIPP data do not separately identify the salary reduction plan types; 70% provide he 35% alth benefits after 20 59%* 14. Between 4–7 percent think their employer a is not at all likely to continue providin g defined benefit, defined 1988 contri 1993bution, 1998and 401( 2003 k) plans. EBRI 2006bc 2009 Fundamentals of Employee 33% 52.4% 65.0% 32% 60% 24 33% higher level of participation, compare 64.4% d with 2006, but were below the 2003 levels except for those over age 60. Conference o CDHPs Each of these and H f th DHPs e Retirement surveys collect . High Re desearch Consortiu ducti s data i bles n a wer different m em d , efi Maned king Ha as anner i rd ndivi Choices and dual has diff Washin dedu Ter rctibles aditional gton, DC, Ma ent questions ofHDHP at le y 1as 7–18, 2001. that lea CDHP t $1,000 d an to di d fffer amily ent r de edu sults. Th ctibles o e f traditional pla 90% n to report that they expect health reform to have an impact on them personally. Twenty percent of much higher than th 63.1% e 7.5 56%* percent in 1988. 63.5% 63.8% 10 51.0% 31% (2) participants could also have made after-tax contributions to salary red 31% uction plans that were excluded in the Holden and VanDerhei study 49.9%Benefit Programs offers a straightforward, basic explanation of employee benefit programs in 30% 26% health The p be articipation level for worker nefits after 2014, and a s is ca nother lculated by determining all w 83% 9–12 percent think their orkers em w 31% ho sa ploy th yer is ey pa not rticipate in a pension or r very likely to provie dtiremen e them t plan in t (Figure 8 heir ). Variation in Public Opinion About Health Reform, by Plan Type: Findings from the a 30% bc at least $2,000. 50% Those with a high deductible and either an HRA or an HSA com 79% prise the CDHP sample, and those with CDHP enrollees and 18 perc CPS asks abo 30%ut anyone 79% who ent of HDHP worked in a enrollees previous year, report w that hile t SIPP hey an exp d eBLS ask abo ct health refo utrm to im current wo pact t rke hem a rs in th gr e mont eat deh of al, the private and public sectors. The EBRI Databook on Employee Benefits is a statistical but not from 60% the SIPP data. A time series on contribution rates is not available from this database. Traditional HDHP CDHP 30% 50% 15 17 25% 76% main job/business 80% or other job d 45.9% uring the reference period of the su c rvey. This includes anyone who answered no to the first question about 28% Between 27–33 percent think that their b 78% employer is likely to continue offering health benefits after 2014, 78% and another 2010 EBR Income— I/MGA Consumer Engagement in Heal As a workera’s income increased, the 75% likelihood that th Care Survey he or she participated in a retirement plan also Some follow-up questions are asked about the most important plan only if the participant reports that tax-deferred contributions can be 23% 50% 23% Employee Contribution referenRates ce work o —While t n emplo he partici yee ben p 27%* atio efit pr n leve ograms and l in salar work force-related issues. y reduction c plans (and their status as a deductibles th interest. Conseque at are ntly, th general Traditional e results from t ly high e HDHP nough CDHP he surveys so to meet the metime qualifyin sho g tw ha res difh fere old to nt tre make t nds and ax-preferred c different levels ontributio repres ns to ented an by compared with 15 percent of traditional plan enrollees. b 76% 73% 51.5% participating in a pension or retirement, but answered yes in a follow-up question to p Traditional HDHP articipating in a plan similar to a 401( CDHP k) plan. 21–24 percent think their employer is ver 49.3% y likely to cont 70% inue offering them. Between 28–33 percent were unable to say made to the plan increase Endnotes d. For those maki . ng less than $5,000 annually in constant 1993 dollars in 2009, 68% 11 percent participated in a 25% 67% 72% 47.7% 48.4% worker’s prim 70%ary plan) decreased, the average employee contribution for workers who reported a positive employee HSA but without an account comprise th Contributed 10% e HDHP sample 47.2% . More information a 24% bout the 2010 EBRI/MGA Consumer these differe 50%nces in th 65% e surveys. However, 20%* each survey provides important data that 24% can’t be found elsewhere. CPS has LITTLE KNOWLEDGE O 25% F PPACA: The 2010 EBRI/MGA Consumer Engagement in Health Car 46.7%e Survey finds that relatively 20% 19% 20% 40% or More 63% 1if their employ 25 er was likely to continue providing health 62% benefits after 2014. retirement plan, compared with 78 percent of those making $50,000 or more in 1993 dollars (Figure 4). Workers’ 36.8% 18%* Contact EBRI Publications, (202) 659-0670; fax publication orders to (202) 775-6312. Among those who expect an impact, very few expect the law to h36.3% ave a mostly positive impact. About 1 in 10 adults 11 See Craig Co 40%peland, “Individual Account Retirement Plans: An Analysis of the 2007 Survey of Consumer Finances, With Market contribution to these plans remained virtually unchanged in 2009 (at 7.4 percent compared w 58% ith 7.5 percent in 2006), Engagement the annual par in Healt ticipation h Car wie th Survey ca a complete n be se foun t of worker d in a for detmograph hcoming EBR ics, w I article hile SIPP (Fron 21% has t stin 20 he com 10). plete set of worker few 18 people with private health insurance consider themselves knowledgeable about the PPACA, the federa 18% l health Both the Tax Reform Act of 1986 and the Economic Gro28.5% wth and Tax Relief Recon 34.9% ciliation Act of 2001 shortened t 19%he required vesti 61% ng 17% 60% 17% For the 2009 results if the questions are not combined and only the pension plan-t 34.6% ype question is used, 48.1 percent of retirement plan 20% Subscriptions to 63% EBRI Issue Briefs are included as part of EBRI membership, or as part of a 26 participation levels in 2009 were the same or higher in all income categories relative to 2006. While the participation 40% Adjustments to June 2009, with private health insuranc ” EBRI Issue e expects Brief the , no. 333 (Emplo law to have ye a e Be mostly nefit Research In positive impact stitute, August 2009). (Figure 3). In contrast, about one-half after Orders/ increasin 20% g from 6.6 percent in 1988 (Figure 7). The distribution of the contribution rates moved to a higher demographics plus re59% tirement plan types. BLS has detailed data on establishment characteristics along with retirement insurance schedule for all or some of the p reform law enacte rivate-se d earlier ctor empl this yo eyar. Rou ment-based re ghly h tirement plans. alf say they are somewhat, not very, or n17% ot at all 15% 53% 15% $199 annual subscription to EBRI Notes and EBRI Issue Briefs. Individual copies are available participants reported that their primary plan was a defined benefit plan (plan based on earnings and years on the job or plan 16% was cash 57% 30.1% 54% levels were 15% the same or higher in 2009 compared with 2006, those with earnings from $10,000 to less than $30,000 50% 29.1% 29.2% expect a mixed impact with some positive and some negative aspects, while betw Contr een ibuted 5% 37–46 or28.3% perce Less nt expect a mostly Conclusio 30% n percentage of the lower contributors from 1993 to 2009 (Figures 8 and 9). The percentage of those contributing 5 per- plan type but 30% has limited worker demogra with prepa phics. yment for $25 each (for printed 44.8% copies). Change of Address: EBRI, 1100 13th St. knowledgeable about the law. 15% 26.9% 2 balance), compared with 47.5 percent who reported being in a defined contribution plan (individual account plan) and 4.4 percent were 50% Subscriptions 12 See Jack VanDerhei and C 30% raig Copeland, “The EBRI Retirement Readiness Rating™: Retirement Income Preparation and Future were at th15% eir lowest levels, other than in 2006, over the 22 years studied. 24% 48% negativ The twe o sets of numbers pr impact. CDH 47% P e esented for 198 nrollees ar NW, Suite 878 e mor 8 sho ew like the impact of l, y tha Washington, DC n tr taditional hese follow , 20005-4051 plan -up q enrolle uestions and potentially , (2es to 02) 659-0670; f expect a the incre anegati x number, (202 ve impact. ased numbers ) 775-6312; Ne ofarly defined cent or less increased from 44.8 percent in 1993 to 48.9 percent in 2009. Consequently, th 11% e high contributors—those 23.8% Individuals enrolled in CDHPs and HDHPs were more likely than those with traditional health coverage to expect health 40% 45% 44% 44% 40% 40% unknown. Consequently, the better identification of plans and improved skip patterns regarding who is asked the follow-up questions results in 10% 22 22.4% 4% 10% 12% 12% 12% 12% 20% 20% Prospects,” EBRI Issue Brief, no. 344 (Employee B19% enefit Research Institute, July 2010). e-mail: subscriptions@ebri.org Membership Information: 9% Inquiries regarding EBRI 19% 9% 18% one-h This study contribution plans on the vesting rate. Without the alf (46 10% pro percent vides “top-lin ) of CDe HP enrol ” results from lees ex the lat follow pect a mostly -ue pst SI questio PP ne n data s on lump-sum gative on impact, compar retiredistributi ment plan ons, the vesting rate in 1988 pa ed with 9% rticipation. 37 perc Th en e overall t amon was 28 pe g tra d rcent, itional NEGATIVE 20% 10% EXPECTATIONS: Most individuals with private health insurance have 9% negative e 39% xpectations of how the new who contributed 10 percent or more—were more likely to contribute a higher amount in 2009 than in 1993 and to have reform to have a mostly negative impact on them. They were more likely to expect cost increases, benefit cuts, and a 16% only adjustments for those who are asked the final question about contributing to a savings plan after all the original identification questions 20% membership and/or contributions to EBRI-ERF should be directed to EBRI President/ASEC 9% 10% 30% 20% References 17.4% partici compared pation with 3 by all 4 percent workers a with the follow nd nonagr -up quest icult ion. Thus, better ural wage and sal data do not see ary worker ms is presented to be the only explanation fo with breakr th dow e increas ns by worker ed vesting rate s’ age law planwill enrol affect lees. them personally, with a majority saying they expect it will cause prices to go up and health 27% care coverage 3a higher overall average contribution. Primary Plan Types negative impact on quality. 31% 7%* The fact that 31% CDHP and HDHP enrollees a 31% re more likely than those with traditional 5% Chairman Dallas Salisbury at the above address, (202) 659-0670; e-mail: salisbury@ebri.org are asked in the See Craig Copeland, “Retirem survey—basically, the indet ent Plan Participation: Surve erminate percentag 15.3% y of In 30% e. come and Prog However, estima rates b m Participation (SIPP) Data, 200 y the Employee Benefit Research Institute 6,” EBRI Notes based on , no. 2 26% 5% since 1979. 5% Fronstin, Paul. " and income. T Fh indings from th e next sectio e 2010 EBRI/M n investigates GA C the onsumer Eng plan type—def agement in Healt ined beneh Care Su fit (DB) versu rvey. " sEBRI Issue Brief, no. 35 def 16 ined contribution 1 (Emplo (DC)—that yee and quality to 10% 5% go down. Individuals with traditional health coverage t 8%end to 8% have more positive views than those with 20% coverage to report that their employer has not provided 26.7% information may explain part of the difference in their 10% 4% (Emplo Workers’ kno published data fr yee Be 5% nef w om Form it Research Institute, Feb ledge of5500s, their pe which all privat nsion or ruary 20 re e- tirement sector pension/re 09): 1 -12; plan Craig s is known Copeland, “An A tirement plan spo to be nal n quit sors must file w ysis of the Ret e limited. iith the IRS, sho rement and Pen Furthermorw e, workers’ s that app ion Plan Coverage roximately 16% 21% 5% 18% Impact on Health Care Costs Editorial Board: Dallas L. Salisbury, publisher; Stephen Blakely, editor. Any views expressed in this publication and those of the authors should retirement par Benefit Research ticipants r Institute, December 2010 egard as their primary (most im ) (forthcoming). portant) plan. The last section examines participation 16% in and high-deductible or consumer-driven health plans—possibly because traditional health plan participants tend to identify 10% respective outlooks for cost, access, and quality. Political party affiliation may also 7.5% explain part of the difference in Topical Module of SIPP,” perceptions o 37 percent of prifv what ate-sector they EBRI Issue Brief, w co orkers in a retireme nsider to be their most im no. 245 nt plan (Emplo had a defi yee Be por nef ned benefit plan, tant pl it Research Institute, Ma an can also vary trem although not nec y 2002); essarily endously and Craig C consider (am opel o ed the p ng l and, “An Anal arger rima pri ry pl yv sate- an b is of the y Conclusio 0% n not be ascribed to the officers, 10% trustees, m 14% embers, or other sponsors of the Employee Benefit Research Institute, the EBRI Education and For background on the changes in the data fo 14% r that account for these two numbers, the first set of numbers presented in Figure 1 omits the 13% 13% 11% 11% contribution 0% s to salary reduction plans (401(k)-type plans). The workers in this study include those from both the themselves m About one-hal 0% o f of in re as Democr dividualsats, whil expect their e high h-deducti ealth care cost ble and co s to increase a nsumer-driven s a result plan part of the health r icipants are m efor om re likely to l law, and ean 0% No Impact on Quality of Mostly Negative Impact on Mixed Positive and Negative Mostly Positive Impact on Unable to Say outlook betwe Research Fund, 0% en C or their DHP, HD staffs. Nothin HP, an Contr g her d tra ibuted Between ein is to be co ditional plan nstrued as an attem enrollees. CDHP pt to aid or en hi rollees nder the adoption are less likely than of any pending le traditiona gislation, r l eplan gulation, Retirement an the participant. d See FAQs About Pension Plan Coverage Topical M Benefits—Retirement Iss odule of SIPP,” ues: What Are the EBRI Issue Brief, Trends in U.S. Retire no. 245 (Emplo ment Plans? yee Benefit Resea www. ebri. rch Institute, May 2002) sector employers, it is common for workers to be covered by both a DB pension plan and a DC retirement plan, such as 4% The impact of follow results fro -up questions (so as to compare m the 4% SIPP data confirm th we ith earlier peri results from o ods that did not have ther data sour those ques ces showin tions), while the second set o g that the percentage of numbers f workers I ExHealth Car pec 1988 t Cost to e Increas 5 e% and 10% 1993 I Ex Qpec uality t Cost to Stay1998 the Same Impact on Quality I Expec 2003 t Cost to DecrQ eas uality e 2006 Unable to Say 2009 or interpretative Not At rule, or as All Likely legal, to Continue accounting, Not Veryactuarial, o Likely to Continue r other such prof Likely essional advice. to Continue Very Likely to Continue Unable to Say private and th 0% e publi A G c sector reat Deals. Some A Little None Unable to Say Repu indiviblica duals n. enrolled in CDHPs and HDHPs are more likely than those in traditional plans to expect cost increases. Six in org/publications/benfaq/inde enrollees to r for studies of prio eport that r SIPP datasets on this topic. they x. cfm?fa=retfaq1 are strong Democrats and t 4 Consequently, considering that th hey are more l e historic ikely to r al numbers are inconsistent eport that they lean Re with other publican dat (Figure a a 401(k) plan, and one or the other is deemed to be the primary Year plan). presented do include the follow-up questions (so as to better account for the presence of defined contribution plans). Specifically, in the first participating in a retirement plan currently is below its highest level in the past decade but not at its lowest level during 0% 1988 1993 1998 2003 2006 2009 10 (59 percent) CDHP enrollees and 56 percent of HDHP enrollees expect their costs to increase, compared with Source: Employee Benefit Research Institute estimates of the May 1988 and April 1993 Current Population Survey Employee Benefit sources and are i 9). CDHP en Sorurce onllees ar conflict w : EBRI/MGA e also ith de Consum less like scriptive data about the plans, er Engagelm y to r ent in e He port t alth Care h at th Survey adj e , 2010. yustments to the p are undecided lan t whe ypes are n it cound mes to the ertaken in this stud ir political y aparty a re kept in th ffiliat e ion. SoSo urce urce : EBRI/MGA : EBRI/MGA Co Co nsum nsum ere Engage r Engage mm ent ent in in He He altalt h hCare Care Surv Surv eye,y 2010. , 2010. Source: EBRI/MGA Consumer Engagement in Health Care Survey, 2010. EBRI Notes is registered in the U. SponsorsS. hip Lev Patent and T el rademark Office. I Par SSN: ticipation 1085 Lev ?445 el 2 1085 ?4452/90 $ .50+. Pr5 imar 0 y Plan set of numbers, workers who reported that their employer or union did not have a pension plan or retirement plan for any of its employees this decade. Because of improved survey procedures and r Incom etirem e (1993 ent $s)plan identification in SIPP, the most recent survey 4 Supplements and the 1996, 2001, and 2004 Survey of Income and Program and Participation Topical Module 7 and 2008 Survey of Income and aaa IMPACT ON E a MPLOYMENT-BASED BENEFITS: Very few participants in employment-based health plans say their Traditio Traditio Traditio nal nal nal = = =He He He alt alt alt hh hplan plan plan with with with no no no de de de duct duct duct ible ible ible or or or <$1,000 <$1,000 <$1,000 (indiv (indiv (indiv idual), idual), idual), <$2,000 <$2,000 <$2,000 (family). (family). (family). The 2008 Pane Traditio l of the Surve nal = Health y of plan Income and Pro with no deductibleg or ram Participati <$1,000 (individual), on (SIPP), conduc <$2,000 (family). ted by the U.S. Census Bureau, follows the same 50 percent of traditional plan enrollees (Figure 4). Between 16–19 percent expect their health care costs to remain the historical trend. See endnote 1 Program and Participation 9 for a description o Topical Module 3. f the adjustments to the data for primary plan determination. b b b were not counted bHD as w HP = High orking for a -deductiblen he emplo alth plan ye rwith wh de erduct e a plan ible $1,000+ was spo (indiv nidual), sored, even if th $2,000+ (family), ey re no ported account.that t heir employer offered a profit-sharing HD HD HPHP = =High High -de -de duct duct ible ible he he altalt h hplan plan with with de de duct duct ible ible $1,000+ $1,000+ (indiv (indiv idual), idual), $2,000+ $2,000+ (family), (family), no no account. account. shows a chanHD ge Sour HPin =c High e: previous Employ -deduct ee Benefit Res ible tren healtds h plan : DBs ear cwith h Ins i de ncreas titute ductes ible timates e $1,000+ d as of th the May (indiv e pr idual), 1988 imary ret $2,000+ and Apr (family), il ir 1993 Cur ement nor ent Population account. plan ty pe, Sur whil vey employ e DCs ee benefit decreas ed. A similar Source: Employee Benefit Research Institute estimates of the May 1988 and April 1993 Current Population Survey employee benefit employer has given them any information about the new law. Also, very few expect the law will have much, if any, households for a tw Sour o and one ce: Employ half- ee Benefit Res year period, earch asking various questions on Institute estimates of the April 1993 Cur their econ rent Population omic and demog Survey employ raphic status. Surve ee benefit supplement. y participants are c cc same, while on c ly 5–8 percent expect their health care costs to decrease. One-fifth to one-quarter are unable to say CDHP CDHP CDHP supplements = = =Co Co Co nsum nsum nsum e er and the 1996, 2001, e -rdriv r --driv driv eenen n he he he alt alt alt hh hplan plan plan with and 2004 with with de de de duct duct duct Panel ible ible ible $1,000+ of the Sur $1,000+ $1,000+ (indiv (indiv v(indiv ey idual), of In idual), idual), co $,2000+ me $,2000+ $,2000+ and Pr (family), (family), ogr (family), am Par with with with tic account. ipation account. account. Topical Module 7 and 2008 Panel of CDHP supplements = Consum and the 1996, 2001, er-driven health plan and 2004 with de Panel ductible of the Sur $1,000+ vey (indiv of Inc idual), ome and $,2000+ Progr (family), am Par twith icipation account. Topical Module 7 and 2008 Panel of plan or a stock plan in a follow-up question. Furthermore, participants who reported not being able to receive some benefits at retirement if increase in DB plans was also found when the Survey of Consumer Finances adopted improved survey * Difference the Surv© 2010, Emplo ey between of Inco HD me HP and Pr /CDHP y ogr ee B and am Par Traditio enefit ticipation Research Institute nal is Tstatistically opical Module significant 3. ?Educ at the p ation and Re = 0.05 or better.search Fund. All rights reserved. impact on em * * D the iD ployers’ fference ifference Survey b of Inc etween between will ome ingness to of HD HD and Pr HPHP /C/DC ogr HP DHP am Par and and Traditio fer Traditio ticipation he nal alth nal T is opic isstatistically statistically ben al Module efits, significant significant 3. at le at ast for at th th e ep = p = th 0.0. 0505 e next or or b ebtter. etter. four years. interviewed at fo * Dur-mont ifference h intervals about a core se between HDHP/CDHP and Traditio t of demogr nal is statistically aphic and economic issues. In addi significant at the p = 0.05 or better. tion, topical modules ask more specific how they expect their costs to change. ebri.org ebri.org ebri.org A monthl ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org No No No No No No No No No No y ne tttttttttte e e e e e e e e es s s s s s s s s s w • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 sletter from the EB 10 10 10 10 10 10 10 10 10 10 RI Education and • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 1 • Vol. 31, No. 11 1 1 1 1 1 1 1 1 1 Resear ch Fund © 2010 Employee Benefit Research Institute 19 11 13 12 16 10 9 6 2 3 ebri.org Notes • November ebri.org Notes • November ebri.org Notes • November ebri.org Notes • November ebri.org ebri.org Notes • November ebri.org Notes • November ebri.org Notes • November Notes • November 2010 2010 • Vol. 31, No. 11 2010 • Vol. 31, No. 11 2010 • Vol. 31, No. 11 2010 • Vol. 31, No. 11 2010 • Vol. 31, No. 11 2010 • Vol. 31, No. 11 2010 • Vol. 31, No. 11 • Vol. 31, No. 11 14 17 18 15 8 4 5 7 Per rcentage of Earnings