Employers Want Big Changes To Health Care System

August 31, 2005 at 08:00 PM
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Employers are beginning to insist health care providers make available cost and quality information that will help them make better-informed health care buying decisions, a new study concludes.

Close to 80% of employers want much better information from providers. The vast majority also want the federal government to require hospitals, physicians, insurers and health plans to disclose publicly all cost and quality information, according to the study by United Benefit Advisors LLC, Indianapolis, an alliance of employee benefit brokers.

Employers also want employees to become more involved in demanding better quality care, says Robert Lindberg, a principal of Lindberg & Ripple Inc., Windsor, Conn., a member of UBA.

Once they're more aware of high health care costs, "employees are not going to want to go back [to a health care provider] more than they have to," Lindberg says. "They will want their first treatment to be more effective."

One surprising finding of the survey was the unexpectedly low acceptance of consumer-driven health plans, notes Robert Lindberg's partner and brother, William.

Only 1.9% of 8,700 employers covered by the survey offered such plans, which are high-deductible plans offered in conjunction with health care savings accounts.

That figure ranges from a high of 3.4% of plans in the North Central region of the United States to a low of less than 1% in the Northeast.

Other responses to the survey hinted that future growth of HDHPs could be stronger, however.

"The vast majority say they expect to look at them over the next 1 or 2 years," says William Lindberg.

The survey also found while health care cost increases have been hefty in the past few years, they have shown signs recently of moderating.

Employers reported health care insurance premium increases of 9.6% in 2005, down from increases ranging from 14% to 16% over the past several years, says Robert Lindberg.

However, employers in the study also predicted increases next year averaging around 12%, he points out.

The survey found a low acceptance of consumer-driven health plans

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