Are You Prepared for Higher Health Insurance Costs?

 

BLOOMBERG NEWS: According to a recent survey, an estimated 7 percent increase in health insurance costs is forecasted for 2008.

Health care benefits are critical matters for job placement and employee retention. Do you feel better because your insurance costs are only going up 7 percent this next year? Well gosh, I should feel great since this is the lowest increase in 5 years. Consulting firm Towers Perrin found the new average yearly cost to the employer will be $9,312 for each worker. Employers pay approximately 80 percent of these costs. These statistics were reported in The Orange County Register article dated September 30, 2007. The article only scratches the surface of a bigger problem facing employers in today’s competitive market.

Prospice Group Corporation (PGC) is a family of companies that specializes in worker’s compensation and medical management solutions. Dr. Robert M. Turner, vice-president of business development explains that “employers are struggling to balance higher performing employees’ wages, escalating worker liability and the health insurance cost paradigm.” He further stated that “yes it seems that only a 7 percent increase in health insurance cost is the lowest increase in 5 years, but it doesn’t remove the burden being experienced by the employer.” He has found that keeping an employer in business is the focus of executive teams and employer management. “What is foremost on their mind is the challenge of cost reductions and turning a profit.” Inflation and health care costs are up. These two costs factors total a 78 percent increase over the past 5 years. One serious problem is that wages and compensation benefits have just not kept up with these industry increases.”
 
Employers in California have been diligently pursuing alternatives to solve this crisis. Controlling costs through containment practices, changing insurance carriers, switching administrator sourcing, corporate wellness packages, safety and risk reduction plans and many employers are seeking self insured status. These are just a few of the tactics being employed to fight these rising costs. Does government involvement offer any real viable answers? Does socializing health care and government agencies overseeing injured worker programs, offer any true cost savings? Targeting medical providers with a specific tax to insure the all will have health insurance coverage. These solutions have never shown to work in the real business world. This would be like asking the Internal Revenue Service to offer you a savings and file your taxes for you. This will not be solved by any government agency, but by the employer taking a positive stance to make better choices about their coverage with consultants that understand their problem. We at Prospice Group Corporation offer solution to employers; we truly believe it starts with trust.

With free enterprise and an open market, employers can be shown the best solutions for their specific situation, reduce costs 25-40 percent over three (3) years and this will keep them in business. Further solutions for reducing cost and innovative programs for your workers compensation and health insurance issues can be discovered by contacting, Prospice Group Corporation at (888) 874-4160.