This year, large employers are bracing for a double-digit increase in healthcare costs-the most significant jump since 1993, according to the Towers Perrin Health Care Cost Survey. The survey found that the cost of large employers' health benefit plans will surge 12% on average in 2000, and more than 90% of those polled expect the trend of double-digit increases to continue for the next few years.
The average U.S. company offers approximately 19 health plans, with some offering as many as 200 plans.
The survey's findings underscore the need for health plan marketers to develop aggressive value-based marketing strategies and to prepare for a climate where employers intend to step up their cost-control efforts.
To respond to the industry's steep increases in healthcare costs, the survey found that:
- 48% of employers intend to change their plan design and cost-sharing features.
- 37% intend to develop or change their employee contribution strategies.
- 11% are looking for ways to reduce their role in providing healthcare benefits in the future.
The survey was conducted last November 1999 and is based on 228 employers that are primarily Fortune 1000 companies with numerous locations nationwide.
(Towers Perrin, Stanley Davis, 914/745-4191)