Health Insurance Daily

Health Costs Trend Slows, Use Of Care Management Grows

Employers saw some relief in health benefit costs, which rose an average of 6.1% in 2005, down from 7.5% in 2004, according to Mercer Human Resource Consulting's survey of 2,999 employers. Meanwhile, prescription drug inflation was 11.5% last year, down from 14.3% in 2004.

The average cost of health benefits was $7,089 per employee last year, up from $6,679 in 2004. Small employers experienced lower costs and slower cost increases than large employers, Mercer reports.

Roughly 22% of large employers offered a consumer-driven health plan last year, up from 12% in 2004. The use of disease management programs jumped from 32% of employers in 2004 to 41% of employers last year, while the use of health risk assessments grew from 14% to 18%, and the use of behavior modification programs increased from 9% to 16%.

About 25% of employers provide health insurance for part-timers. Another 7% apply a surcharge to coverage for any spouses who have access to coverage elsewhere, or refuse coverage in that situation. Companies are increasingly covering same-sex domestic partners, with that proportion growing from 11% in 2004 to 19% last year.

Mercer principal Tracy Watts says employers have been focusing less on cost-shifting to employees and more on care management.

Article provided by BenefitNews, March 28, 2006.

posted by Mike @ 8:40 AM