Survey: Health Cover Costs Worry Employers

Employees, who have seen their nest eggs eroded by the free-falling stock market, cited retirement issues as their key concern, the survey found.

Almost 86 percent of employer respondents chose controlling health and welfare costs as one of their top five priorities. For 67 percent of employer respondents, it was their number one objective.

"This survey finding re-emphasizes how critical cost management remains for employers," said Richard Kleinert, a principal with Deloitte & Touche's human capital advisory service practice. "Clearly, cost is still king."

Employer respondents cited complying with the federal Health Insurance Portability and Accountability Act and similar state and local employee privacy laws, expanding technology for benefit communications and administration, and providing financial planning tools to employees as other high priorities.

Aside from cost control, "key objectives" of employers included attracting and retaining employees, 12 percent of those surveyed, and compliance and fiduciary issues, 10 percent.

Among employees, 64 percent said they are most concerned about evaluating current investment options.

Sixty-one percent of employees surveyed said evaluating current levels of retirement savings is their most pressing concern. Forty-four percent put identifying additional ways to save for retirement at the top of their list.

Forty percent said learning more about health risks was most important, and 36 percent said using the Internet to manage financial programs was.

"With the downturn in the economy, many employees have experienced dramatic decreases in their retirement savings," noted Mary L. Komornicka, president of ISCEBS and senior vice president of Marshall & Ilsley Trust Company. "Indeed, many employees have been forced to reconsider when they will be able to retire," she added.