Kaiser Daily Health Policy Report Highlights Employers' Efforts To Reduce Health Care Cost

Main Category: Health Insurance / Medical Insurance
Article Date: 07 Jan 2008 - 8:00 PDT

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Summaries of several efforts by employers to reduce health insurance costs appear below.

• Employee health: "Enterprising employers are investing in the health of their employees and realizing less acute care, disability and lower general health care costs," with such investments also likely to promote "better employee morale and retention rates," the Miami Herald reports. "Senior level executives are role models for their programs, because without a corporate culture that values good health and actively promotes it, few employees are likely to take ownership of their health issues," according to the Herald (Cole, Miami Herald, 12/31/07).
  
  
• Health plans: This year is "likely to see an expansion in health plans that cater to individuals who can't afford their employer-sponsored insurance; an employer-driven focus on fitness and healthy lifestyles in the workplace; and consolidations among health care companies" as part of an effort to reduce costs, according to experts, the Denver Post reports. In addition, U.S. residents this year "can expect to see the emergence of philosophies for reforming health care in this country" from presidential candidates, "particularly for the millions who have no insurance" (Rouse, Denver Post, 12/29/07).
  
  
• Smoking: An increased number of employers have begun to ban smoking on their properties and promote smoking cessation programs as part of an effort to reduce health insurance costs, the Orlando Sentinel reports. In addition, some employers have considered an increase in health insurance premiums for employees who smoke (Wessel, Orlando Sentinel, 12/24/07).
  
  
• Wellness programs: An increased number of employers have begun "looking to control health costs by implementing creative wellness programs that reward employees for improving their health," the Wichita Eagle reports. According to experts, health insurance costs for employers doubled from 1990 to 2001 and likely will double a second time by 2012. Experts maintain that popular wellness programs can significantly reduce health insurance costs for employers. The Eagle profiles a wellness program offered by Stinson Morrison Hecker -- a regional law firm with 780 employees and headquarters in Kansas City, Mo. -- in which workers who participate can receive between $75 and $250 annually (Atwater, Wichita Eagle, 1/3).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.