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Coping strategies include cost sharing, consumer-driven plans, patient education, drug imports
In 2004, health care cost inflation remained the foremost issue on benefits managers' minds. They wrestled not only with how to contain health-related costs for their employers but also with how to communicate benefits information effectively to workers.
The rising price tag on group health care plans continued to be the top concern, despite singledigit rate increases this year, the lowest uptick since 1999, according to a survey released last month by New York-based Mercer Human Resource Consulting.
"The biggest challenge we face is maintaining affordable health benefits for our employees," said Kip Wall, chief executive officer of the Office of Group Benefits for the state of Louisiana in Baton Rouge. "Trying to design health plans that will meet their needs and are within their budget is difficult," he said.
In order to lower premiums, the four health plans Louisiana state employees were offered in 2004 carried more restrictions, more cost-shifting to plan participants and a closed formulary prescription plan with mandatory generic drug coverage, said Mr. Wall.
Lea Gerber, director of risk and benefits management for Elixir Industries, a Gardena, Calif.-based manufacturing company, noted that "trying to keep our costs down but having to ask the employees to pay more out of their pockets" was especially tough for her this year.
"We did not raise the employee premium contribution," Ms. Gerber said, though the company raised employee cost-sharing for certain services. Copayments for Elixir employees went up from to $25 this year from $15 last year for routine doctor visits, while emergency room déductibles were raised to $150 from $50. "That's a significant...