Employers continue to seek alternatives to increasing plan premiums, including the exploration of purchasing options, redesigning plans, joining purchasing groups, instituting pharmaceutical cost controls, and contracting with lower cost carriers. With nearly a third of employers identifying prescription drug costs as a primary cost driver, nearly 90 percent have instituted some form of pharmaceutical cost controls and nearly 15 percent are considering joining or forming drug purchasing coalitions. Nearly 80 percent entirely or partially outsource the administration of their health and welfare programs and many indicated that they would add or expand outsourcing services in the future. Less than half of respondents are offering health care plans to retirees under the age of 65 and only 39 percent offer coverage to post-65 retirees. According to the survey, costs are up an average of nine percent with similar increases predicated across all plan types for 2000 and 2001.
Respondents forecast the biggest premium increases from HMOs during the next two years.
Pharmaceutical costs are clearly at the forefront of the current cost crisis. A third of respondents identified prescription drug costs as having the greatest impact on their plan costs. Alternative medicines and treatments are also beginning to gain broader acceptance. Employers and health care plans are more open to non-traditional forms of care. Over 60 percent of employers believe that employees will be more heavily involved in their own health care in the future.