Tough but effective: 2 ways firms are fighting health costs
December 11, 2009 by Jared BilskiPosted in: Benchmarking, Benefits, Communication tips, Cost cutters, Healthcare, In this week's e-newsletter, Latest news & views, Lighter-side, Management issues
Newton may have rethought his theory that “what goes up, must come down,” if he lived to see the increases in healthcare costs over the past decade.
The latest Heatlh Care Cost Survey from Towers Perrin says that employers will see an average increase of 7% in their healthcare expenses in 2010.
While many firms don’t particularly want to shoulder employees with increased health costs (especially if the company has frozen wages or cut salaries), that’s exactly what many are doing.
Check out the chart below to see how companies are raising employee costs:
In addition, some companies are going to great lengths to ensure they’re not footing the bill for people who aren’t even eligible to receive coverage.
What they’re doing: conducting dependent eligibility audits.
According to a survey from Aon Consulting, companies that conduct these audits see anywhere from a 3%-10% decrease in dependent care expenses immediately.
Tags: Aon Consulting, Benefits & Talent Survey, Deductibles, Dependent eligibility audit, Employee contributions, Health Care Cost Survey, healthcare costs, Towers Perrin
