Goals of the meeting include start discussions about the University benefit programs, address future options and directions for the University benefits program, review basic elements of a flexible benefit program, and an update on the progress that the State of Alaska has made with its benefit program. Between 1950-70 there was the greatest growth in employees who had health benefits. The increase is largely due to the increasing cost of health care. Health care has become so expensive because more care is being delivered, more sophisticated medical services, lack of market competition, insurance company payment of claims, and people are living longer. Services such as drug therapies, intensive care, angioplasty, and MRI are delivered more routinely.
Costs become less important because the patient is insulated from a majority of the expenses.
Also, we re getting older and living longer, approximately every eight seconds for the next 10 years, a baby boomer turns 50. As age increases, typically so does health costs. A number of states have passed health care reform bills to help manage costs. Employer responses to increase health costs include shifting costs and changing delivery. Shifting the costs have included benefit cutback and reducing coverage levels and employees paying for dependents.