Health benefit costs continue to rise, survey shows

Bruce Silver

Employers Rx LLC

After over 25 years of trying to help small business owners and entrepreneurs to provide affordable, quality health insurance coverage for their employees, it seems that with all the changes and industry "innovations", very little has actually changed.

Health insurance still remains problem number 1 or 2 for the average business regardless of size.

I have a saying that often evokes laughter, unfortunately, being able provide and afford quality health insurance is not funny, especially if you have a sick child who needs care.

"If you want to make an enemy, sell them health insurance."

Bruce Silver, Founder, Employers Rx LLC

Why do I say this? It's because you are always delivering bad news. Year after year at renewal time , you inform your clients that their premiums have been increased. Some years, it's only 10% or 15%, lately their increases have ranged from 20% to 50%. Where are the regulators?

The bad news does not stop there. Most employers cannot afford to absorb the increase so they look to you (me) to FIX it. But how? Well the only way is to reduce coverage and decimate the benefits that employees receive. So the doctors office copay goes from $10 to $20 and today most plans have $25 and $35 co-pays. If you are going to see a specialist, you can expect to have a $50 co-pay or higher.

But that is only one side of the coin. Not only are employees paying more for everything from doctors visits, diagnostic tests, medications, and heaven forbid - inpatient stays, but they are paying a higher share of premiums as well. The system is clearly broken.

Here is another attempt by industry insiders trying to put a positive spin on more bad news from Employee Benefit Adviser

Health benefit costs continue to rise, survey shows

New data by Towers Perrin suggests that employers will pay, on average, $9,552 per employee for health benefits in 2009, a jump of 6% from 2008. Yet some employers will buck the trend because they proactively manage their benefit programs.

In its 2009 Health Care Cost Survey, the HR consulting firm reveals that high-performing companies, those who rigorously track their health benefit objectives, will spend, on average, 12% less in annual health care premiums in 2009, compared to low-performing companies.

For example, high-performing firms report a per employee cost of $8,904, compared to $10,104 for low-performing companies. The cost variation fell even lower ($7,032) at high-performing companies utilizing consumer-driven health plans with health savings accounts.

The survey defined high performers as companies who not only had a strong commitment toward improving employee health and engagement, but who also aggressively managed their health plans and the delivery process.

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Fortunately, our team at Employers Rx LLC has found an answer for many small business owners, HR executives, and entrepreneurs.

Check out my interview with David Weir of the South Florida Business Report to learn more. Click on the You-Tube link or contact us at (877) PEO-CURE.