Executive Search Firm News - Employer Health Care

Employer health care costs continue rise

Health care industry predictions for 2006 call for an anticipated 8 percent per employee increase in employer health care costs, according to the 17th annual Towers Perrin Health Care Cost Survey.

Health care executives and human resource executives are cautioned that out-of-pocket increases will average more than $8,400 per employee.

However, shifting more of the costs to employees has shown to accomplish only limited results, notes “Take Care of Yourself: Employers Embrace Consumerism to Control Healthcare Costs,” a study by PricewaterhouseCoopers.

According to the study, 62 percent of the 150 health care executives surveyed believe that increasing deductibles may only cause their employees to defer care, risking their own health and potentially leading to higher health care costs down the road.

Eighty percent of the health care executives believe the most promising alternative for managing health care costs increases is to provide education and incentives for employees to adopt healthier lifestyles.

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