This is just one of dozens of articles published each month. The mid-1990s provided a welcome respite from rapidly increasing employee benefits costs, but the rest is over, especially in health care. All predictions point upward, and employers must brace themselves for the increases.
Employers are likely to implement a variety of strategies to deal with rising health care costs.
Changing vendors and changing or eliminating inefficient health plan options. Targeting specific conditions and behaviors such as asthma or smoking for preventive medical intervention or contracting with plans that offer specialized programs such as these. Negotiating hard with vendors. Outsourcing benefits to offer employees a broader array of health plans and to allow a third party to concentrate on cost increases. Making available to employees a report card on managed-care plans, steering them to the best performers, and paying a larger share of the monthly premium for the top plans.