Government agencies looking to cut costs of employee health benefits

Wednesday, 28 September 2011 16:00

News - Health Care Costs

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Much like organizations in the private sector, government administrators are looking toward healthcare expenditures as an area where they can cut costs, according to the 2011 National Survey of Local Governments conducted by Cobalt Community Research (CCR).

The research reveals that about 6 percent of public agencies are considering cutting employee health benefits altogether, while an additional 25 percent reported plans to raise premiums, deductibles and copayments.

"In a very real way, local governments must choose if they will pay for police, potholes, or pills," said William SaintAmour, executive director of CCR. "It's very, very tough to address immediate needs and long-term benefit costs. This report explores how local leaders are striving to do it."

Additionally, researchers said that about 60 percent of the 1,690 municipalities surveyed are not taking advantage of employee wellness programs and other preventative and educational initiatives aimed at staving off illnesses.

This suggests that government agencies may want to look into ways in which they can proactively improve staff wellness while lowering costs stemming from employee health benefits before they eliminate important care for workers.