Wellness Trends Health Insurance Costs

Costs shift to workers as health insurance expenses rise

The cost of employer-sponsored health insurance has grown more than four times faster than inflation since 2001, and the costs borne by workers have risen at an even faster pace as companies increasingly shift health care expenses to their employees.

Instead of simply increasing premiums, many employers now require their workers to pay more when they get medical care. This year, nearly one in three workers covered by their employers had a deductible of at least $1,000, up from one in 10 five years ago.

The figures were released Tuesday in the Kaiser Family Foundation/Health Research & Educational Trust 2011 Employer Health Benefits Survey . It found that premiums rose by 8 percent for individual coverage and 9 percent for family coverage in 2011, outpacing wages, which grew at 2.1 percent, and general inflation, which rose by 3.2 percent. The average employer-sponsored family insurance plan now costs $15,073--more than some cars, noted Drew Altman, president and CEO of the Kaiser Family Foundation.

The jump follows four years of premium growth that was below 5 percent, and occurred at a time when workers' wages did not keep pace with inflation, Altman said.

While costs have consistently increased, the way they're paid has been changing. Altman cited a trend toward offering insurance plans with high deductibles that carry lower premiums but require members to pay large sums of money before coverage kicks in, which can lead people to use fewer health services. It's one of the few ways employers have to control health care costs, he said.

"To me, this is the quiet revolution going on in health insurance that's kind of under the radar screen," he said Tuesday during a conference call with reporters. "The nature of what we call health insurance is changing without a great deal of analysis or debate."

Proponents of high deductible plans say they make people more mindful of their health care spending and less likely to use services they don't need, while critics say they can make people unable to afford care they need.

Partnerships in Health: Applying Metrics to Target Interventions ...

Last week, in partnership with ThinkWellPoint, the Partnership to Fight Chronic Disease  hosted an event in Washington, D.C. highlighting health indices and how they can be used to promote prevention, improve care management and increase patient safety.

With one in two Americans struggling with one of more chronic conditions, chronic disease has become the leading cause of death, disability and increasing health care costs. New research, educational events, and other news increasingly support better ways to focus on health improvement and lowering costs. As the Super Committee deliberates on the best proposals for reducing the national deficit, the pressure to lower health costs is building as are the opportunities to advance chronic care management and preventive solutions.

At a time when cost reduction reigns, and stretching budgets while still generating results is critical, health indices enable payors to identify at-risk populations and direct resources to generate the most impact. In both the public and private sectors, there is a growing need to implement health indices and other evaluation tools that track progress and demonstrate value for the health care dollars spent.

Each of the event speakers provided a different perspective on the importance of monitoring and examining health trends in order to shape policies and programs that can make a notable difference in achieving healthy outcomes. Highlights of the event include:

Our honored guest and co-chair of the Congressional Wellness Caucus,  Rep. Erik Paulsen (R-MN)   shared insights from individuals and businesses in his district and praised PFCD for helping to advance momentum about the importance of health and wellness on Capitol Hill. Rep. Paulsen encouraged networking and knowledge sharing as a means to increase awareness about prevention opportunities that exist throughout the country.   John Harris, Vice President Innovations and Chief Wellness Officer at Healthways, Inc.