Employer Survey Finds Alternative Approaches to Reducing Health Care Costs

The Midwest Business Group on Health released a new survey of nationwide employers which finds a continued trend toward cost shifting to employees.

• 69% said they plan to offer high-deductible health plans (HDHPs) to reduce costs
• 49% plan to increase employee cost share
• 50% charge employee contributions equal to at least 25% of the total plan premium

The study also highlights two alternative approaches to cost containment being pursued by employers.

1. Improving Employee Health - this includes wellness programs (58% of employers), tobacco cessation incentives (61%), health survey incentives (42%), and biometric screening incentives (38%)
2. Encouraging Employees to use High Quality and More Efficient Doctors and Hospitals - this includes promoting “Centers of Excellence” which are hospitals that specialize in complex, expensive procedures (75%); encouraging the use of “high performance networks” which are groups of doctors that adhere to best practices and get improved outcomes for their patients (31%); and workplace health centers which can provide basic care more conveniently and at a lower cost (34%)

Take-Aways for Union Negotiators

Our employers should not fall behind their competitors in pursuing innovative programs to control health care costs. Implementing programs that can successfully improve employee health or direct them to the best care can benefit everyone by lowering health plan costs, increasing productivity, reducing sick days and improving employee quality of life.

Links:

MBGH Survey Finds Employers Continue to Address Health Benefit Cost and Workplace Programs in Uncertain Times (Midwest Business Group on Health, May 10, 2017)