Health Care Costs

High deductible insurance plans come with benefits, drawbacks

News - Health Care Costs

Thursday, 29 September 2011 16:00

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In a study, researchers at the RAND Corporation, Towers Watson and the University of Southern California found that employee health benefits that include deductibles of $1,000 or more can mean big savings for both employer and consumer.

Lower expenditures resulted from patients being able to make their own decisions when it came to care - namely, in choosing whether to see a specialist or take name brand pharmaceuticals - according to the study.

"Unlike earlier time periods, it seems that today's consumers can have greater influence on the level and mix of medical services provided once they begin to receive medical care," said lead author Amelia Haviland, of RAND Corporation.

However, the team also observed a slight decline in cancer screenings and childhood immunizations among consumers during the first year of their high deductible plan. Authors of the study said this statistic raises some concern over individuals skipping needed healthcare services.

Results of this study suggest that organizations should work with staff members to help them choose the most appropriate employee health benefits to suit their needs.  

Study reveals many employers in need of education for specialty healthcare

News - Health Care Costs

Wednesday, 28 September 2011 16:00

Specialty pharmaceuticals, which include medications to treat rheumatoid arthritis, multiple sclerosis, cancer and hepatitis C, make up an estimated 11 to 15 percent of total drug costs, according to a report by Horizon Blue Cross Blue Shield of New Jersey.

As a result, it may seem a bit troubling that an estimated 25 percent of U.S. employers have a severe or complete lack of understanding of specialty pharmaceuticals and their costs, according to a survey by the Midwest Business Group on Health (MBGH).

Just 53 percent of the 120 business administrators surveyed revealed a moderate understanding of these healthcare costs.

“In addition to the uncertainty and challenges that health reform and the economy are placing on employers, health plans and pharmacy benefit managers, the real driver of drug cost trend growth for employers lies in biologics and specialty pharmacy," said Cheryl Larson, MBGH vice president.

The survey also revealed that 30 percent of organizations did not track the rise in costs of specialty pharmaceuticals over the past three to five years.

Results of this study suggest that employers may want to be sure that workers are covered for specialty drugs with their employee health benefits, as well as focus on preventative measures for employee wellness to stave off chronic and hard-to-treat diseases among staff members. 

Government agencies looking to cut costs of employee health benefits

News - Health Care Costs

Wednesday, 28 September 2011 16:00

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.  

High costs of healthcare are influencing risky behavior

News - Health Care Costs

Monday, 26 September 2011 16:00

There are a number of ways to lower costs stemming from healthcare, from preventative measures to obtaining a tailored insurance plan. However, a recent study reveals that most Americans are more likely to forgo appointments, procedures or medications instead.

In a poll, researchers at Consumer Reports found that 48 percent of respondents reported that they would be likely to save on healthcare by postponing a doctor's visit, skipping recommended tests or purchasing cheap pharmaceuticals from outside the U.S.

Additionally, some 16 percent said they have avoided getting a prescription refill, while 13 percent said they've used expired medication and 12 percent have skipped doses. Individuals with low incomes were most likely to use these risky tactics, with about 35 percent admitting to taking unsafe money-saving measures.

"Our polling suggests that the burden of prescription drug prices is coming down as our medicine cabinets are more frequently filled with generic drugs. But the costs of multiple prescriptions has proved to be onerous for many Americans, so much so that some consumers are making unhealthy tradeoffs," said Lisa Gill, prescription drug editor, Consumer Reports Health.

These findings underscore the need for preventative measures - like screening methods or stress management techniques - in order to stave off chronic illnesses, which often come with a lifetime of prescription medication.