Keenan 2016 Health Care Benefits Strategy Survey Offers In-depth Look at Trends, Challenges and Best Practices from 226 Hospitals

TORRANCE, Calif. – September 13, 2016 – Keenan, the largest privately held insurance brokerage and consulting firm in California, has released the findings of its 2016 Health Care Benefits Strategy Survey.  This annual survey, now in its fourteenth year, has become important benchmark research for the health care industry in California, with implications for the sector nationwide. Seventy-nine California health care organizations, representing 226 hospitals, participated in this year’s survey.

The most comprehensive survey of its kind, it provides California-based health care organizations with industry-specific information to assist in their 2017-18 benefit planning. It includes an overview of the benefit programs and policies that California health care organizations have in place in 2016, with a look at the challenges they face and strategies they anticipate implementing.

“The detailed and timely information from this annual survey provides significant insights for hospitals in gauging the current status of their health care benefits programs and developing best practices and strategies for achieving optimum results from those programs while managing costs,” said Steve Richter, Senior Vice President, Keenan HealthCare. “We greatly appreciate the organizations that participated this year and whose information is invaluable in helping health care providers across the state develop innovative ways to meet the challenges they face.”

Key findings include:

  • California hospitals, on average, experienced a relatively low increase in per-employee medical benefits cost.
  • Annual medical benefit cost per covered employee is $13,044, with health care organizations bearing most of the cost burden and paying 90% of the annual cost of employee-only coverage for their most popular plan (48% offer at least one medical plan at no cost to the employee).
  • The top four benefit program objectives identified by survey participants are cost containment, improving the health of their employee population, ACA compliance and offering a competitive benefit program.
  • A variety of anticipated cost reduction approaches were cited, including shifting cost to employees, reducing dependent load, improving health of employees, better managing prescription drug benefits and channeling care back to their facilities.
  • Population health programs in California hospitals continue to evolve. Thirty-seven percent (37%) have implemented a comprehensive population health management program to assist in containing their health care benefit costs and improve productivity. Few, however, are employing a full best practices approach.
  • The Affordable Care Act has created additional work for California hospitals. While some have absorbed the additional responsibilities internally, most have outsourced some of the administrative work.

The study also includes a detailed look at other benefit categories including dental, vision, time off, disability, life and retirement income. Data is broken out by region: Southern California (except San Diego), San Diego, Sacramento and Central Valley, San Francisco Bay and Northern California (other).

For a copy of the Executive Summary of the 2016 Health Care Benefits Strategy Survey, go to //

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About Keenan
Founded in 1972, Keenan is a top-25 largest insurance consulting and brokerage firm in the U.S. and the largest independent broker in California. Keenan is dedicated to providing superior insurance products and services to schools, community colleges, healthcare organizations and municipalities for employee benefits, health benefit management services, workers’ compensation, risk management, and property and liability. With headquarters in Torrance, CA, Keenan has a staff of more than 700 insurance specialists and branch offices in Riverside, San Clemente, Oakland, San Jose, Rancho Cordova, Redwood City, Pleasanton and Eureka. For more information, call 800-654-8102 or 310-212-3344, email or visit