California Hospitals Face Rising Costs for Health Benefits, Survey Finds
California hospitals have seen an increase recently in the cost of providing health coverage to their employees, according to a new survey by the insurance brokerage firm Keenan & Associates, Payers & Providers reports.
Of the hospitals that participated in the survey, 54% reported offering full health care benefits to their employees.
Between 2009 and 2010, health care coverage costs for California hospitals rose by 9% among those offering HMO and PPO plans and by 11% among those offering point-of-service plans, according to the survey.
Fewer than half of the 94 hospital organizations and 231 hospitals that participated in the survey said they expect to fully absorb the higher health coverage costs anticipated this year.
AlthoughÂ the health coverage cost increases experienced by hospitals are on par with other industries, hospital officials say their facilities are under significant financial pressure to shift costs and reduce spending. Of the hospitals surveyed:
- 73% said they intend to increase payroll deductions to offsetÂ rising health coverage costs; and
- 66% said they plan to increase copayments and deductibles for their employees.
Some hospitals also are working to reduce their employee benefit expenditures by offering health-related programs. Nearly three-quarters of the hospitals surveyed said they offer some form of disease-management program, while 70% reported offering employee risk-assessment programs (Payers & Providers, 1/20).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.