Tag Archive for Health care

Controlling Health Care Costs

ChiefExecutive.net recently published a piece called “How CEOs Can Control Health Care Costs in 2012.”

While health care plan costs rose slightly less in 2011 than the year before (+6.1% v. +6.9%), the continuing spiral upward and the uncertainty of the legality of the Patient Protection and Affordable Care Act (PPACA) is driving continuing CEO frugality.

Not surprisingly, most of the cost containment efforts will be borne by employees, according to a Mercer study of almost 3,000 employers.

The trends for 2012 include:

-More “cost shifting” to employees in the form of higher contributions and co-pays

-Employee participation in wellness and health management programs will be rewarded and the lack of participation will be penalized

-More focus on consumer directed health plans

-Continuing decreases in and/or elimination of retiree health care benefits

-More reliance on generic pharmaceutical drugs

On the judicial front, the Supreme Court ruling on the constitutionality of PPACA is very much front of mind in the CEO-sphere. The 40 percent excise tax that could take effect in 2018 – which is assessed on premium payment amounts over a certain threshold – could have a huge impact. There are a number of possible high court outcomes – but the most difficult outcome to manage according to the survey is if the decision is postponed to 2015. Uncertainty can cost… 

Here is a link to the article: