New AMGA Survey Shows Decrease in Benefits Eligibility Threshold for Many Groups
The newly released AMGA 2023 Medical Group Benefits Survey, published with input collected from the Group Physician Advisory division of The Partners Group, suggests significant changes in benefits eligibility and other areas in comparison to the results of the AMGA 2018 Medical Group Benefits Survey, the last year survey data were published. In the survey, participating medical groups continue to identify workforce challenges as the root cause for many of the benefits issues they are facing.
Alexandria, VA – The newly released AMGA 2023 Medical Group Benefits Survey, published with input collected from the Group Physician Advisory division of The Partners Group, suggests significant changes in benefits eligibility and other areas in comparison to the results of the AMGA 2018 Medical Group Benefits Survey, the last year survey data were published. In the survey, participating medical groups continue to identify workforce challenges as the root cause for many of the benefits issues they are facing.
Compared to 2018 data, the full time equivalent (FTE) threshold for benefits eligibility has decreased for many groups. In 2023, 22% of medical groups had a benefits eligibility threshold of less than 0.5 FTE, compared to 2018, where the same criteria were held by only 5% of responding groups. While employers may choose to increase the benefits eligibility threshold in an effort to cut costs, survey results indicate that reducing the FTE requirement is an employee-friendly step to potentially make the organization more attractive to prospective applicants.
The survey data suggests groups are offering more flexibility when it comes to medical insurance, based on changes in the market data. While the most common medical insurance plan types are PPO, HDHP, and HMO, the percent of groups offering four or more options has grown from 5% to 17% since 2018. While median in-network deductibles and out-of-pocket maximums are consistent with the data from 2018, median out-of-network deductibles and out-of-pocket maximums have decreased.
“Workforce challenges, often stemming from a decrease in retention paired with employee burnout, have taken a toll on medical group benefits,” said Mike Coppola, MBA, AMGA Consulting chief operating officer. “Medical groups have shifted their benefits opportunities since 2018 to adapt to an ever-changing market, but there is still room to improve employee-friendly trends.”
Groups offer a variety of retirement benefits options. However, 401(k) continues to be the primary plan, offered by 94% of survey-responding groups, as opposed to less than 60% offering this benefit in 2018. There has been a decrease in the offering of 403(b), defined benefit, and 457(b) plan types. Much like with the variety in medical insurance plans, survey data suggests giving employees the option to choose between plans may be another employee-friendly trend to increase employee satisfaction.
With clinician burnout remaining a constant concern in workplace satisfaction, the 2023 survey shows 100% of groups include an Employee Assistance Program (EAP) in the benefits package. Data indicate that mental health and personal support resources continue to be normalized, aligning with a reduction in the stigma associated with mental health concerns.
Survey participants indicate the importance of offering customizable benefits programs to better suit individual needs and promote personal wellness. The option of adjustable plan definitions to help the individual meet their needs, as well as family-focused and lifestyle optimization program elements, can be appealing for attracting and retaining talent.
“Providing employees with customizable benefits programs not only encourages personal wellbeing, but also shines light on the appeal of working for the organization,” said Fred Horton, MHA, AMGA Consulting president. “In addition, flexible benefits plan definitions can often be offered without a significant financial cost to the organization.”
The AMGA 2023 Medical Group Benefits Survey is the first benefits survey published by AMGA since 2018. Data submitted are representative of the benefits package offerings of more than 210,000 benefits-eligible employees, including more than 40,000 benefits-eligible physician and other provider FTEs.
The AMGA 2023 Medical Group Benefits Survey is published with input from the Group Physician Advisory division of The Partners Group, an AMGA Corporate Partner.
For press copies, please contact Taylor Martin.
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About AMGA Consulting
AMGA Consulting assists healthcare organizations in navigating the changing industry environment. AMGA Consulting builds clients’ organizational capabilities through effective governance, operational improvement, strategic alignment, talent management, provider compensation design, fair market value analysis, and total rewards solutions.
About The Partners Group
The Partners Group provides benefits advisory services to large multispecialty medical groups and build tailored benefits programs for physicians and physician leaders using targeted benchmarking to help attract and retain top physician talent.
About AMGA
AMGA is a trade association leading the transformation of healthcare in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans. For more information, visit amga.org.