Dive Brief: CEB, a best practice insight and technology firm, and DirectPath, a firm specializing in employee engagement and healthcare compliance for Fortune 1000 employers, released a report predicting that organizations expect a 6% increase in healthcare costs in 2017. The 2017 Medical Plan Trends and Observations Report is based on analysis of 975 employee benefit health plans. The report also predicts employers are looking past cost-sharing since the high-end “Cadillac” tax faces potential repeal and employees are struggling to manage high-deductible plans. The report suggests that employees are losing interest because they can’t carry the associated HRAs and savings accounts meant to make HDHP's more manageable to a new job. Another key finding in the report is that health savings plans (HSAs) serve high-paid workers better than lower-paid employees. Workers with HSAs earning under $50,000 a year were less likely to visit their doctors for … [Read more...] about Report predicts 6% increase in healthcare costs in 2017
Employee healthcare costs
Dive Brief: Massachusetts Gov. Charlie Baker intends to offer a plan later this month to control the costs associated with enrollment in MassHealth, the state’s Medicaid program, according to the State House News Service. Baker wants to fine companies that don’t offer their employees a health plan $2,000 for each full-time worker, as well as cap the rates that providers charge for healthcare services. Due to the popularity of MassHealth, the state’s finances will not be able to keep up with healthcare costs unless big charges are made. Dive Insight: Massachusetts is experiencing the phenomenon of employed, low-income individuals choosing subsidized health plans even when their employers offer health insurance. It’s a problem that wasn’t supposed to happen. Before the Accountable Care Act (ACA) took effect, state residents whose employers offered health coverage were ineligible for MassHealth. To comply with the ACA, the state had to remove that … [Read more...] about Can Baker get Massachusetts’ rising healthcare costs under control?
Last week, Boeing announced it would contract directly with California-based MemorialCare Health System to provide health benefits to its employees in southern California. “We’re really after improving quality, improving the member experience and controlling cost,” Jeff White, Boeing’s director of healthcare strategy, told the Los Angeles Times. Although services will not begin until Jan. 1, 2017, MemorialCare Health Alliance’s Accountable Care Organization (ACO) health plan option will be added to Boeing's open enrollment this fall. This is the first direct contracting agreement between a healthcare system and an employer in California. Under the contract, employees will have access to around 2,400 clinicians at nine hospitals and 71 outpatient facilities (e.g., clinics, surgery centers, urgent care facilities). Employees who choose this option will be offered added benefits, including smaller paycheck deductions for healthcare coverage, no copays for … [Read more...] about Employers cut out insurers to control healthcare costs
Dive Brief: A new analysis from Aon Hewitt finds due to the trend toward shifting healthcare costs onto employees, workers will face a combination of premium and out-of-pocket costs that surpasses $5,000 for the first time in 2016. The amount workers contribute has steadily risen more than 134% from 2005 to 2015, the report finds. In dollars, total employee healthcare costs went from $2,001 in 2005 to $4,698 in 2015, and they are projected to reach $5,068 next year. Dive Insight: Increasing healthcare costs and increasing employee cost burdens mean health coverage is not the financial protection it used to be, and enrollees are taking notice. Employees undergoing corporate open enrollment periods are seeing the impact of the trend for next year, with the average total cost of an employee premium up 4.1%. Workers are facing a share of $2,635 with projected out-of-pocket costs of $2,433 which brings the total … [Read more...] about Employee healthcare costs to surpass $5K for first time
Dive Brief: Nearly all (96%) of employers plan to offer telehealth services in states where it is permitted, according to a new survey from the National Business Group on Health. The survey also found benefit costs at large U.S. companies will average $14,156 per employee in 2018, up from $13,482 this year. Employee’s share of that cost will be about 30%, or $4,400. To control rising costs — expected to rise 5% for the fifth consecutive year — employers are focusing on how care is delivered and paid for. Dive Insight: Key findings from the survey include: Twenty-one percent of respondents plan to encourage use of accountable care organizations and another 26% are considering offering them. More than half (54%) will offer health centers either on site or nearby. Nearly nine in 10 (88%) plan to use centers of excellence for specified procedures like transplants or orthopedic surgery to take advantage of bundled payments and other alternative … [Read more...] about Employers focused on care delivery to control healthcare costs