San Francisco-Area Employers Seek Ways To Keep Health Costs Down
Many San Francisco-area employers are struggling to find ways to keep escalating health care costs under control, the San Francisco Business Times reports.
About the Cost Increase
In the San Francisco metropolitan area, insurance rates have increased by an average of 7.2% this year and are expected to increase by 7.4% next year, according to a study by Aon Hewitt.
The report said that health care costs for employers in the region are likely to reach $12,523 per employee next year, up from $11,659 this year.
Addressing Rising Costs
Many businesses now are more likely than ever to consider new methods to control the costs of the health benefits they provide, the Business Times reports.
Such strategies include:
- Adopting population risk management tools to identify employees with chronic conditions;
- Encouraging employees to sign up for health savings accounts; and
- Tapping pharmacy benefit managers for pharmacy plans.
In addition, many businesses are choosing health plans that pass on more costs to workers. However,Â some experts have said that doing so is unsustainable and worrying.
David Lansky, CEO of the Pacific Business Group on Health, said that many employees and their families already are forgoing needed care and health tests to avoid larger copayments and deductibles (Rauber, San Francisco Business Times, 10/14).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.