OUCH!
Health Insurance Inflation
Consumer Directed Healthcare Top Plan Change for Future
NEW YORK, March 31, 2004-- As a result of corporate
cost shifting and cost cutting initiatives, eighty-six percent
of employees face increased healthcare program contributions
and 72% face raised deductibles, according to
PricewaterhouseCoopers' "Management Barometer," a quarterly
survey of top executives in large, multinational businesses,
in a cross-section of industries. Nearly 50% of executives
surveyed reduced benefits over the past three years to combat
rising healthcare costs. These findings are based on
interviews with 174 CFOs and Managing Directors of U.S.-based
companies.
Employees are also feeling the impact of the rising cost of
prescription drugs: 87% of executives surveyed adopted one or
more approaches to reduce their program's cost -- led by
increased co-pays for brand name drugs (71%) and/or increased
co-pays for generic drugs (69%.). Fifteen percent of the
executives surveyed reduced or eliminated coverage for
lifestyle drugs.
Eighty-nine percent of surveyed senior executives of large
U.S.-based companies advocate programs to change employee
health behaviors. Fifty-six percent of those surveyed have
considered the option of offering a consumer-directed
healthcare plan.
On the issue of developing new approaches to solve the
healthcare dilemma, 94% of respondents rejected the "one pay"
system overseen by the government.
"Companies are combining traditional disease management
with coaching and information on things like diet modification
and lifestyle changes. They are also providing financial
incentives for employees who follow recommended medical care
and treatment," said Barry Barnett, a principal with
PricewaterhouseCoopers' human resource services group.
The survey also found that 47 percent of large
multinationals sponsor a retiree medical program-and nearly
half of those have had to cut benefits for current or future
enrollees-28 percent and 44 percent, respectively.
Examined also were supplementary benefits where the
employee pays the full cost, and the toll of healthcare costs
on a company. The survey is developed and compiled with
assistance from the opinion and economic research firm of BSI
Global Research, Inc
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