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BENEFITS
One of the benefit costs spiraling ever higher, not just for A/E firms but throughout the entire economy, is that for health insurance. In fact, while inflation in the overall U.S. economy was 2% in 2002, it was more than seven times that-15%-for health care costs. No wonder health insurance rates have doubled in five years.
Respondents to the 2006-2007 Design and Construction Industry Trends Survey conducted by the American Council of Engineering Companies (ACEC) listed the rising cost of health care as the third most important issue facing their firm in the next five years (for a full report on the survey, see the July issue of OFMAR). The survey showed that the cost of health insurance as a percentage of total labor costs averages 8.9% for engineering firms, with the predominant range 5% to 10%, although that was more than 10% for firms in the Northwest. No wonder ACEC invited Henry J. Kruse, president of Envision Health Care in Lisle, Illinois, to give a workshop titled "Creative Strategies for Controlling Health Insurance Costs" at its 2006 spring convention.
Health care consumerism. "Consumerism is coming late to the health care industry," said Kruse. "It's about transforming a health benefit plan into one that puts economic purchasing power-and decision making-in the hands of participants." He added, "It's about supplying the information and decision support tools [consumers] need, along with financial incentives, rewards, and other benefits that encourage personal involvement in altering personal behavior and health care purchasing behaviors. Accessible, actionable health information is paired with personal financial choice to facilitate effective outcomes."
Kruse cited studies that show employees are currently not good health care consumers because they underestimate their health care costs by...