WARREN – As we move ahead into the New Year, escalating health care costs continue to remain an issue of great concern for many organizations. Rising health care costs are inevitable as the total health benefit cost per employee has risen by approximately 6 percent annually for the past five years. And as the need to manage costs is vital, many organizations will be seeking ways to minimize these increases. Some employers will opt to increase deductibles and out-of-pocket limits and raise employee contributions. This does not, however, reduce the overall spending. It merely changes how the cost is apportioned between the employer and employee.
A recent Mercer survey suggested that many organizations will be looking to reduce health care cost increases by improving workforce health: 44 percent of employers surveyed indicated that they will add health management or wellness programs in 2011, and 38 percent will add incentives for employees to participate in health management programs already available to them. The survey also suggested that more employers will attempt to curtail health care spending through new or improved health management programs in 2011 than through higher deductibles or other cost-sharing provisions.
Effective workplace wellness or health management programs are beneficial to both the employer as well as the employee. These programs encourage employees to take steps to prevent the onset or worsening of a health condition, eliminate unhealthy behaviors and habits and promote the adoption of healthy lifestyles. While Wellness Programs have been around for years, the building costs of health care for employers will drive momentum for ROI in wellness.
To read the rest of the story, click on CorpMagazine.Com
a>>
