SilverLink - Fall 2008 - (Page 19)

EMPLOYEE BENEFITS Group Benefits To Infinity & Beyond Making Healthcare a Priority (Again) by Jeff Jorth You’d better sit down for this one— Estimates for 2008 project that U.S. healthcare costs will total approximately $2.2 trillion or 16 percent of the gross domestic product. Companies will likely pay an average of $9,312 per employee for healthcare and employees are increasingly being asked to pay a greater share. This share has increased from $1,284 in 2003 to $2,040 in 2008—a 59 percent increase in only 5 years.1 2003 Total Costs = $6,384 The Costs are Staggering It seems that everyone, from employers to employees, feels the squeeze from rising healthcare costs. Wellness education and incentive plans have been initiated to encourage people to take responsibility for life choices. As employers face increased costs from carriers, more and more employees are being asked to help share the cost of their employers’ health plans. Despite the changes that have already been made, healthcare costs are still soaring. Healthcare issues remain a priority for everyone. Is there anything insureds and their employees can do to slow the upward cost spiral? $1,284 Supply vs. Demand Many employers have already made a variety of adjustments to address rising healthcare costs, such as increasing copays and setting higher deductibles and out-of-pocket maximums. Some have even switched carriers/administrators. These changes comprise the supply management approach, which, initially, appeared to be a promising strategy for cost containment. Over the last several years, however, the amount of healthcare cost reduction that was hoped for through supply management has not been realized. An alternative approach is demand management, which focuses on encouraging employees to live healthier lifestyles and be conscious consumers of healthcare services (see chart on page 20). In order to impact demand, employers want to know the types of risk their employees face. Having employees ﬁll out a Health Risk Assessment (HRA) can accomplish this. Government statistics are available that enumerate the number of risk factors for every 100 employees. The American Institute for Preventive Medicine (AIPM) developed the Wellness Wizard™ to help companies understand how these statistics apply to their employees. It also provides a cost breakdown for speciﬁc risk factors and the savings derived from a reduction in those risks. The Wellness Wizard™ is available at no charge to employers by logging onto www.healthylife.com and informing the institute of the number of employees in your organization. $5,100 2008 Total Costs (Projected) = $9,312 $2,040 $7,272 Employer Employee Source: Towers Perrin 2008 Health Care Cost Survey 19 SILVERLINK — FALL 2008 http://www.healthylife.com

Table of Contents Feed for the Digital Edition of SilverLink - Fall 2008

SilverLink - Fall 2008 Table of Contents Risk Management: Toto A Marriage Made to Last Cashier’s Check Fraud? Selection Validation Digital Tool Box When the Curtain Falls Lightning Strikes Increased Fuel Economy Employee Benefits: To Infinity & Beyond Securing Retiree Healthcare Private Client Services: Batter Up! Shaking Things Up STOLI Under Attack Client Spotlight: Bellevue University Internal Happenings: SilverStone Group Wellness Activities Group

SilverLink - Fall 2008

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