Rising Healthcare Costs in 2019: What Will it Cost You?
admin | September 5, 2018
RISING HEALTHCARE COSTS (No End In Sight)
Rising healthcare costs have grown faster than the general U.S. economy. That increase has translated into higher premiums for employers and greater out-of-pocket costs for patients. With costs projected to increase five percent in 2019, employers are seeking options to combat further hikes in premiums while providing effective, quality care for their employees.
A recent survey of 170 employers found the majority of responding employers said they believe “a new entrant from outside the healthcare industry is necessary to disrupt the market in a positive way.” As noted in our previous post:
“In 2016, U.S. federal and state governments spent $3.3 trillion on healthcare. Those costs are projected to reach approximately 20 percent of total national spending by 2025. And while all sectors of the economy have been feeling the impact of rising costs, employers who provide benefits packages to their workers face unique challenges–and thinner profit margins.
For the past five years, employers have wrestled with rising health plan premiums — the most recent increase averaging five percent in 2018, surpassing $14,000 a year per employee. That makes healthcare the largest expense for many businesses. Healthcare commentator and author David Chase drove this frustrating fact home last year when he told CFOs, “You run a healthcare business whether you like it or not.” Chase goes on to describe the type of employer pushing against that stigma and subsequently lowering its healthcare costs. Chase believes it starts with a change in mindset, as well as company culture. For those businesses that aren’t equipped to take on drug makers, insurers, regulators and the healthcare system as a whole, the question remains: What can be done to combat the high cost of coverage — and why is it increasingly at odds with profitability?”
Health plans like Healthcare Highways are meeting the need to improve health outcomes and patient experience while lowering the total cost of care.