Article courtesy of Payne Financial Group's Benefits Buzz newsletter, November 2011 issue.
Recent surveys from Mercer, Segal Co. and Aon Hewitt found that health care costs are increasing at a declining rate.
The studies cited various reasons for the decline, including:
- - Consumers are using fewer medical services, as the economy remains tough and employers shift more costs to employees.
- - Employees are using more in-network providers.
- - Wellness and health management programs are reducing doctor visits due to healthier employees.
- - Employers are adopting value-based plan designs that incentivize lower cost, higher quality care.
Though a slower growth rate is welcome news, it is cause for concern if employees are opting not to seek necessary medical care in order to save money. Lower utilization will improve a company's bottom line right now, but could have devastating effects in the future as those employees have more serious health complications.
Even despite the slowing growth, employers are still feeling the massive burden of health care costs. Unhealthy employees, especially those with chronic conditions, continue to drive costs for employers.
In response, more employers are offering consumer-driven health plans, or raising copays and deductibles. Wellness programs are also popular to help reduce health care costs.
Most importantly, employers must educate employees on the medical and financial importance of seeking appropriate preventive care, properly managing chronic conditions and always receiving the medical care they need.
