NU Online News Service, May 29, 1:41 p.m. EDT
Three out of four public employers are increasing or considering hiking employee deductibles, copays or premiums, a survey has found.
The poll was taken by the International Foundation of Employee Benefit Plans in Brookfield, Wis.
According to FEBP, motivated by the financial crisis and escalating health care costs, public employers nationwide are modifying their employee health care benefit plan designs and funding to include more cost-saving measures.
The survey found 72 percent of public employers are increasing or considering an increase in their employees' deductibles, coinsurance or copays. Also, 74 percent of public employers are increasing or considering an increase in employee premiums.
Asked why they were considering higher deductibles, 46 percent of public employers cited the financial crisis. Forty-five percent cite the crisis as the reason why they are thinking about higher employee premiums.
Sally Natchek, senior director of research at the foundation, said, "These findings are surprising, although cost-sharing measures have been common in the corporate world for quite some time, public employers have traditionally not modified their health care plans in this direction."
"The fact that the majority of public employers are now increasing deductibles, copays and premiums illustrates the dual effect rising health care costs and the financial crisis are having on their plans," said Ms. Natchek.
The survey revealed that other cost-saving programs that public employers are instituting include adding a consumer-driven health plan (31 percent), shifting to a self-funded plan (26 percent) and introducing spousal surcharges (20 percent).
"Many public employers were previously skeptical of consumer-driven health plans, but now the cost-saving aspect of the plans may appeal to them," said Ms. Natchek. "The survey showed that while still the minority, a significant number of public employers are implementing these types of plans."
The survey also found that 72 percent of public plan sponsors are placing more emphasis on controlling prescription drug costs. The majority of public employers are expanding participant education about drug options and costs (74 percent), increasing copayments and/or coinsurance for drugs (61 percent) and mandating the use of generic drugs (54 percent). Nearly a quarter emphasized they are taking these measures specifically because of the financial crisis.
"Health Care Plans: Impact of the Financial Crisis" (Item #6696E) is published by the International Foundation of Employee Benefit Plans. Members of the International Foundation can receive the survey results free of charge. Nonmembers can purchase the survey for $50.
The report can be ordered online at www.ifebp.org/books.asp?6696E or bookstore@ifebp.org or by calling (888) 334-3327, option 4.
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