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Performance in an Era of Uncertainty

Economic conditions, frustration with high cost levels and limited success in encouraging employees to adopt healthier lifestyles have been persistent challenges for companies. Against the backdrop of health care reform, companies have never been more uncertain about the future of their health care programs over the long term. For nearly a decade, Towers Watson has been tracking employers’ coni dence in their ability to sponsor health care benei ts for active employees 10 years into the future. Employer coni dence has steadily deteriorated since 2007, despite health care cost trends hovering at historically low rates during the same period. With. | United States Performance in an Era of Uncertainty 2012 17th Annual Towers Watson National Business Group on Health Employer Survey on Purchasing Value in Health Care National Business Group on Health TOWERS WATSON United States 2012 Employer Survey on Purchasing Value in Health Care Table of Contents Executive Summary Key Themes Cost Trends Active Employees Pre-65 and Post-65 Retirees Consistent Performers Deliver Long-Term Results 9 Strategy and Planning 11 Strong Employer Commitment Through 2015 12 Confidence About the Long Term Fades 13 Employee Well-Being Takes Center Stage 16 Challenges Ahead 17 Asking for More From Health Care Vendors 18 Emerging Trends Connecting Directly With Providers 21 Growing Emphasis on Financial Management 21 Changing Pharmacy Landscape Building the Case for Transparency Embracing Technology to Engage Employees 24 Expanding Use of Financial Incentives and Requirements 25 Account-Based Health Plans Strategies for Building a Healthy and Productive Workforce 34 Health Improvement 35 Engagement 36 Accountability 37 Linking Provider Strategies Technology 39 Healthy Environment 40 Metrics 41 Conclusion 42 Performance in an Era of Uncertainty Towers Watson National Business Group on Health