Employers expect health benefit cost increases to stay at 8% in 2007 and continue at that rate through 2008, according to an annual survey of 573 large employers conducted by Watson Wyatt Worldwide and the National Business Group on Health. While costs remain high, they have also become more predictable with 82% of employers saying their healthcare costs came in at or below budget in 2006. Meanwhile, employers continue to invest in on-site medical clinics (23%), on-site pharmacies (14%), call-in medical help lines (78%), and employee health appraisals (72%) in efforts to control those costs. In addition, 42% are implementing programs that focus on reducing obesity among employees.
In related news, The New York Times reports on a growing trend of employers providing free prescription drugs to their employees to help them manage chronic illnesses such as diabetes, asthma, and depression before they escalate into costly complications and hospitalizations. The idea of increasing costs through free drugs is in stark contrast to the healthcare cost-cutting measures employers have been using in the past. Employers are realizing that cost-shifting to employees goes only so far, according to the article, and they may be hoping they can avoid government interference in their health benefits by focusing on prevention measures. Among the companies offering free drug programs are Marriott International, Pitney Bowes, Mohawk Industries, Eastman Chemical, and the state of Maine.
