Employer-Sponsored Healthcare Coverage Appears to Be Meeting Needs of U.S. Adults

ROCHESTER, N.Y., Dec. 18 /PRNewswire/ -- The latest Wall Street Journal Online/Harris Interactive Health-Care Poll reveals that most adults with employer-sponsored health insurance feel very or somewhat confident that their coverage will meet their needs in the upcoming year (89%) and relatively few individuals expect to switch (6%) or drop (less than 0.5%) their current coverage next year. Furthermore, most individuals believe their out-of-pocket costs at the point of care - co-pays and deductibles - will remain about the same compared to this year (out-of-pocket for a doctor visit after the deductible 69% and out-of-pocket for prescription drugs after the deductible 68%). By comparison, adults with employer-sponsored health insurance are more likely to anticipate an increase in their monthly premiums (34%), though this group still represents a minority.

These are some of the results of an online survey of 3,561 U.S. adults, ages 18 and older, conducted by Harris Interactive(R) between November 28 and 30, 2006 for The Wall Street Journal Online's Health Industry Edition (http://www.wsj.com/health).

Savings accounts

As costs have risen over the past decade, there has been an expansion in the market of accounts that can help individuals save for and cover their out- of-pocket costs for healthcare. These include flexible spending accounts, medical saving accounts, health reimbursement accounts and health savings accounts. Plans, employers and the Bush administration see these savings vehicles as an effective means of helping individuals manage their out-of- pocket costs for healthcare. These findings, however, show that few insured adults are taking advantage of these savings accounts:

-- Seventeen percent of adults who will have employer-sponsored health insurance next year say they are enrolled or will enroll in flexible spending accounts, while 69 percent say they won't. -- Six percent or fewer say they will enroll in medical saving accounts, health reimbursement accounts or health savings accounts. -- Higher-income individuals are more likely to say they are enrolled or plan to enroll in such plans.

There are surely many reasons why so many individuals do not enroll in these types of accounts. Not all employers offer them, individuals may not understand how they work, and many may not be able to afford to set aside funds on a routine basis. These findings also suggest that many people may not recognize the need for these kinds of savings vehicles as they remain confident that their health insurance coverage will meet their needs.

TABLE 1

MOST ADULTS ARE CONFIDENT THAT THEIR HEALTH INSURANCE WILL MEET THEIR NEEDS "Overall, how confident are you that your health insurance for next year will

meet the healthcare needs of you and your family?" Base: Will have employer-sponsored health insurance next year Total % Very/Somewhat Confident (Net) 89 Very confident 55 Somewhat confident 35 Not Very/At All Confident (Net) 9 Not very confident 7 Not at all confident 3 Not sure 1 Note: Percentages may not add up exactly to 100% due to rounding. TABLE 2 MOST ADULTS WITH EMPLOYER-SPONSORED HEALTHCARE COVERAGE PLAN TO KEEP THEIR

CURRENT PLAN IN THE NEW YEAR "This is the time of year when people with employer-provided health insurance

coverage have choices to make regarding their health insurance. Which one of

the following have you or will you do for next year?" Base: Have employer-sponsored health insurance Total Household Income $25K $25K $35K $50K $75K or - - - & Over Less $34.5K $49.5K $74.9K % % % % % % Will Have Employee- sponsored Health Insurance Next Year (Net) 93 80 93 98 94 97 Have Employee-sponsored Health Insurance This Year and Next (Sub-Net) 92 78 93 97 93 97 Stay with my/our current health insurance plan 86 72 88 91 87 89 Choose a different health insurance plan 6 5 5 5 6 7 Sign up for health insurance (don't current have coverage) 1 2 1 1 1 * Drop my/our health insurance coverage altogether * 2 1 - 1 * Not sure 7 18 6 2 5 3 Note: Percentages may not add up exactly to 100% due to rounding. -Indicates no response *less than 0.5% TABLE 3

MAJORITY OF ADULTS WITH EMPLOYER-SPONSORED HEALTHCARE COVERAGE EXPECT THEIR

OUT-OF-POCKET COSTS TO REMAIN ABOUT THE SAME NEXT YEAR "Thinking about your health insurance coverage for next year, how do the following costs compare to this year's coverage - is next year's plan more expensive, less expensive or about the same?" More Less About the Not Expensive Expensive Same Sure % % % % Monthly premium charges (the amount that's deducted from one's paycheck to help pay for healthcare coverage) 34 5 50 11 The deductible (the amount one must pay before your health plan begins sharing in the cost of healthcare services) 18 3 69 11 The amount one pays out- of-pocket for a doctor visit after the deductible 17 3 69 11 The amount one pays out- of-pocket for prescription drugs after the deductible 18 3 68 11 TABLE 4A RELATIVELY FEW ADULTS WITH EMPLOYER-SPONSORED HEALTHCARE COVERAGE WILL USE SOME TYPE OF ACCOUNT NEXT YEAR

"Some employers provide their employees with different types of savings accounts which can be used to help pay for out-of-pocket expenses that are not covered by their health insurance. Have you or will you enroll in one of these

savings plans for next year?" Base: Will have employer-sponsored health insurance next year Yes No, Will Not Not Sure Enroll % % % Flexible spending account 17 69 14 Health reimbursement account 6 78 16 Medical spending account 6 79 15 Health savings account 5 79 16 Note: Percentages may not add up exactly to 100% due to rounding.

TABLE 4B INDIVIDUALS WITH HIGHER INCOMES ARE MORE LIKELY TO USE THESE TYPES OF ACCOUNTS

"Some employers provide their employees with different types of savings accounts which can be used to help pay for out-of-pocket expenses that are not covered by their health insurance. Have you or will you enroll in one of these

savings plans for next year?" Percent Saying "Yes" Base: Will have employer-sponsored health insurance next year Household Income Less $25K $35K $50K $75K than - - - & Over $25K $34.9K $49.9K $74.9 % % % % % Flexible spending account 14 9 11 19 23 Health reimbursement account 11 7 4 7 8 Medical spending account 3 3 2 4 10 Health savings account 0 5 1 4 9 Note: Percentages may not add up exactly to 100% due to rounding. Methodology

Harris Interactive(R) conducted this online survey within the United States between November 28 and 30, 2006 among a national cross section of 3,561 adults, ages 18 years and over, of whom 2,673 have healthcare coverage from work or a union. Figures for age, gender, race/ethnicity, education, income and region were weighted where necessary to align with population proportions. Propensity score weighting was also used to adjust for respondents' propensity to be online.

All surveys are subject to several sources of error. These include: sampling error (because only a sample of a population is interviewed); measurement error due to question wording and/or question order, deliberately or unintentionally inaccurate responses, nonresponse (including refusals), interviewer effects (when live interviewers are used) and weighting.

With one exception (sampling error) the magnitude of the errors that result cannot be estimated. There is, therefore, no way to calculate a finite "margin of error" for any survey and the use of these words should be avoided.

With pure probability samples, with 100 percent response rates, it is possible to calculate the probability that the sampling error (but not other sources of error) is not greater than some number. With pure probability samples of 3,561 adults, one could say with a ninety-five percent probability that the results have a sampling error of +/- 3 percentage points. Sampling error for data based on sub-samples may be higher and may vary. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

About The Wall Street Journal Online

The Wall Street Journal Online at WSJ.com, published by Dow Jones & Company , is the largest paid subscription news site on the Web. Launched in 1996, the Online Journal continues to attract quality subscribers that are at the top of their industries, with 788,000 subscribers world-wide as of Q3, 2006.

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In 2005, the Online Journal was awarded a Codie Award for Best Online News Service for the second consecutive year, and its Health Industry Edition was awarded Best Online Science or Technology Service for the third consecutive year. The Wall Street Journal Online network includes CareerJournal.com, OpinionJournal.com, StartupJournal.com, RealEstateJournal.com and CollegeJournal.com.

About Harris Interactive

Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides research-driven insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world's largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiary Novatris in France and through a global network of independent market research firms. The service bureau, HISB, provides its market research industry clients with mixed-mode data collection, panel development services as well as syndicated and tracking research consultation. More information about Harris Interactive may be obtained at http://www.harrisinteractive.com/.

To become a member of the Harris Poll Online and be invited to participate in online surveys, register at http://go.hpolsurveys.com/Health.

Press Contacts: Michelle Soto Harris Interactive 585-214-7665 Christine Mohan Dow Jones & Company 212-416-2114