Anticipating Increased Costs
As occupational health professionals are aware, many employers are voluntarily expanding coverage of preventive services to better manage chronic disease and associated absence. The MBGH survey shows that nearly 60 percent of employers plan to leverage incentives allowed under the reform law to expand wellness programs. (The Sept/Oct 2010 edition of VISIONS - the NAOHP's 24-page periodical - features a cover story on incentives. To request a copy contact me via this site or write to info@naohp.com.)
A majority of employers believe the Patient Protection and Affordable Care Act will increase their benefit costs and that changes are needed in the law to improve quality, reduce expenses and reward health system performance, according to the survey findings released Jan. 3.
The survey also found:
- Of the 65 percent of respondents who reported they have done some modeling on how health reform will impact benefit costs, 25 percent forecast increases of 2 to 5 percent and 15 percent found increases of 6 to 10 percent.
- 86 percent believe it is unlikely reforms will reduce the rate of health care cost increase and 74 percent believe it’s likely health reform will boost costs even more than if the legislation was not passed.
“The survey results reflect employer frustration that cost containment, as their priority goal for health care reform legislation, is not, at present, being realized. While there appears to be strong support for the legislative provisions related to payment reform, value-based insurance design, medical homes and accountable care organizations, I think employers are signaling the Obama Administration that these delivery reform and value-based purchasing strategies need to be fast-tracked. Cost containment cannot wait.”
And Larry Boress, MBGH president and CEO, said:
“There remains a great deal of uncertainty among employers about how health reform will ultimately impact their efforts to provide health benefits for their employees. However, it’s clear that keeping workers healthy is a key focus. In fact, employers are already implementing strategic health management approaches and these are quickly evolving into viable cost reduction strategies.”
The online survey, co-sponsored by the National Business Coalition on Health Business Insurance and Workforce Management, was conducted from late November to mid-December 2010. Among the 430 respondents, 43 percent represented employers with more than 500 employees. Visit http://www.nbch.org/News for a summary of the findings.
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