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Employer Healthcare Management Trends

August 12, 2009

In June 2008, the Health Research Institute of PricewaterhouseCoopers released a document predicting the medical costs trends for 2009. This document, “Behind the Numbers” reviewed the trends of 2008, forecasted the trends for 2009, and presented planning strategies for the future. According to their research, healthcare costs will continue to rise, but not as exponential as it has in the past.

The report predicts that improved health management behaviors are contributing to the deceleration of health care costs. Healthcare providers and patients are better managing complex health issues. Employers are utilizing the health management and disease management programs offered by their health insurance carriers. These programs guide patients in becoming more proactive and to self-manage chronic, high-cost, medical conditions. For these programs also offer assistance in helping patients and employees become smarter health care consumers. They encourage them to shop around and find the best cost. They also encourage patients to request that their physicians prescribe generic medications. While there is still much room for improvement, these efforts have created noticeable, positive changes.

PricewaterhouseCoopers’ research revealed that about 66% of US companies with employee health plans are participating in the wellness programs offered by health plans. The health plans promote these programs as a means of lowering health care costs, slowing the rate of premium increases and increasing workplace productivity. Some companies make participation in these programs optional, while others make participation nearly mandatory for those employees with high-cost health issues. Discounted premium rates, lower deductibles and prizes are used to entice employees to take part. And, yes, many only participate to receive the attached incentives; however, these same employees usually walk way with some knowledge that leads to lifestyle changes and changes in their utilization of the healthcare system.

View PricewaterhouseCoopers research on medical cost trends here.

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