Chronic Condition are Driving Health Cost Increases

A recent study of national health spending found that Americans with five or more chronic conditions make up 12 percent of the population but account for 41 percent of total health care spending. Americans with at least one chronic condition account for 90% of all costs.

The most common conditions include:

• Hypertension (high blood pressure)
• Lipid disorders (high cholesterol)
• Diabetes
• Mood disorders (depression, bipolar disorder)
• Upper respiratory disorders
• Heart disease

Take-Aways for Union Negotiators

This trend applies to our employer health plans. While employers focus on cost shifting to reduce their spending, union bargainers should insist on solutions that address the high cost conditions that drive costs.

Bargainers can request their insurance carrier provide information on programs to improve care for these conditions. This could include disease management programs, value-based insurance design, high-performance provider networks, or centers of excellence designations.

Links:

Multiple Chronic Conditions in the United States (RAND Corporation, 2017)

Survey of Employer Benefits Finds Continued Cost-Shifting (CWA Health Care & Retirement Security Blog, September 27, 2016)