Figure 1. Estimated average amount for annual premiums. [1]
Costs of healthcare benefits—including insurance premiums and contribution amounts—are on the rise. The 2015 estimated national average for single premium costs was around 48% higher than in 2006. Family premium costs increased even more (around 55% since 2006).
[1] Champion premiums, while still growing year-to-year, are consistently much lower than the national averages. The average Champion single premium cost in 2015 was about $3,043 less than the estimated national average, and the average Champion family premium cost was about $8,799 less than the estimated national average.
National estimated averages for single and family contribution amounts also increased over the past years, as shown by Figure 2. [1] As for Champion, average contribution amounts actually decreased in recent years (though the average single contribution is higher now than in 2006). The 2015 average contribution amounts for Champions were $166 and $398 for single and family plans, respectively.
Figure 2. Estimated average amount of the annual premium which employee actually pays. [1]
In 2016, these cost increases most likely will not stop or slow down. According to the National Survey of Employer-Sponsored Health Plans (conducted annually by Mercer HR consultancy), U.S. employers predict that in 2016, health benefit costs will rise an average of 4.3% per employee—an even larger increase than the 3.8% increase reported for 2015. This increased estimate includes savings due to benefit design modifications employers plan to make.
[2]
In light of increasing healthcare costs, employers, individual employees, and the government are reevaluating and utilizing the tools and opportunities available to improve health and reduce spending.
Employer Tools
For employers, a couple of healthcare cost reduction methods include:
- Wellness Programs & Encouraging Healthy Living
- Altering Benefit Plans
Wellness Programs
Companies (including Champion!) focus on encouraging healthy lifestyles among employees. The Society for Human Resource Management’s 2015 Strategic Benefits Survey found that about half (53%) of organizations reported creating a culture that promotes health and wellness, up from 41% in 2013. According to the survey, 33% of employers even offer rewards or incentives related to health/wellness. [3]
To explore your wellness program benefits at Champion, reference page 12 of the Benefits Guide. Also, learn how to receive assistance with gym membership expenses.
Altering Benefit Plans
Another key tool for employers’ efforts to reduce healthcare spending includes alterations to the benefit plans provided to workers such as more Health Savings Accounts (HSAs) with higher deductibles. More companies are offering high-deductible consumer-driven health plans (CDHPs). These plans typically combine a high-deductible plan with either an HSA or a health reimbursement arrangement, and an HSA-eligible CDHP costs an average of about 18% less than a traditional preferred-provider organization (PPO) plan. [2]
Employee Choices
Employee choices serve as the most important and influential control measures for healthcare costs. You take charge of monitoring and managing all controllable healthy living practices in life to promote your own well-being and health! This also includes selecting a health insurance plan that best suits you and your family’s needs. An employee’s direct tool for controlling healthcare costs is selecting a plan that is affordable and efficient. Indirect tools consist of taking responsibility for getting the proper routine/preventive checkups and being up-to-date on doctor-recommended vaccines.
Living and Eating Well
Individuals should support their health by eating a balanced diet, engaging in the appropriate amount of exercise, and avoiding excess participation in unhealthy activities. American employers spend billions of dollars each year on health problems tied to modifiable risk factors such as physical inactivity, obesity, smoking, poor nutrition, and stress.
Obesity is a common and expensive risk factor for excess annual medical costs. [4] People who are obese experience an increased risk for numerous serious diseases and health conditions including high blood pressure, coronary heart disease, stroke, sleep apnea, and even mental illnesses such as clinical depression and anxiety. [5]
To maintain a healthy weight, you can work to burn more calories with less effort by giving your metabolism a boost. [6] Ways to increase metabolism include building up muscle, snacking smart/more often, eating protein, and drinking more water. [7]
In addition to monitoring your weight, it is important to keep your body healthy by limiting potentially harmful habits such as eating foods high in cholesterol, smoking, and drinking alcohol. An important rule to remember when evaluating your personal health is: all things in moderation!
Avoiding Risky Behavior
Doing risky things, often times end up in someone getting hurt. Getting hurt badly enough or repeatedly eventually results in a trip to the doctor or the operating room. So another tool that you have to avoid doctor bills is safe living. As mentioned in previous articles and during safety meetings, unnecessary risks are usually the result of impatience or laziness (generally shortcuts). These could be things like unsafe driving, playing with fire or around live circuits, handling sharp objects without gloves, or using a makeshift ladder. The ‘Start the Year off Right’ article above lists many other risks and ways to avoid them.
Government Laws and Regulations
Local and federal governments also employ tools to keep people healthy. On March 23, 2010, the Affordable Care Act became law, influencing medical coverage, costs, and care for many Americans. [8] Under the law, Americans must either purchase health insurance coverage or pay a penalty. According to the US Department of Health and Human Services website, the ACA is working to improve healthcare access, affordability, and quality. Among several features of the ACA, the law keeps young adults under 26 covered, bans lifetime limits on essential benefits, and ensures new plans provide certain preventive care at no cost to you. On March 31, 2015, about 10.2 million Americans had health insurance through the Health Insurance Marketplace. [9]
Figure 3. Estimated average percent of the annual premium which the employee actually pays. [1]
In addition, some local and state governments are taking action in the fight against unhealthy habits that can lead to obesity. For example, in May 2012, New York City Mayor Michael Bloomberg announced the Portion Cap Rule—a proposed amendment to the New York City Health Code that would require a 16-ounce cap on cups/containers used to provide and sell sugary drinks. In June 2014, the New York Court of Appeals ruled that in adopting the Portion Cap Rule, the New York City Board of Health overstepped the scope of its regulatory authority.
[10] Although the cola-controlling rule did not last, the Board of Health’s actions and decisions sparked a debate and various cost-benefit discussions regarding these types of government regulations.
Healthy You, Happy You
With health insurance costs rising, our commitment to a healthy lifestyle and making informed healthcare decisions is increasingly important. Controlling healthcare spending begins with you! Employer incentives/wellness programs, excellent health benefit plans, and government regulations/laws serve as tools to encourage a path of healthy living, but none of these things alone can keep you well.
It is our responsibility to eat right, exercise, and value our safety and the safety of others. Invest in yourself; utilize the various techniques and resources available to ensure the healthiest you!
Sources
[1] “Premiums and Worker Contributions Among Workers Covered by Employer-Sponsored Coverage, 1999-2015.” KFF.org. The Henry J. Kaiser Family Foundation. 2015. Web. 30 December 2015. <http://kff.org/interactive/ premiums-and-worker-contributions/>.
[2] Miller, Stephen. “2016 Health Costs Forecast to Rise 4.3% After Plan Changes.” SHRM Online. Society for Human Resource Management. 11 November 2015. Web. 4 December 2015. <http://www.shrm.org/hrdisciplines/ benefits/articles/pages/2016-health-cost-forecast.aspx>.
[3] “2015 Strategic Benefits—Health Care.” SHRM Online. Society for Human Resource Management. 10 October 2015. Web. 4 December 2015. <http://www.shrm.org/Research/SurveyFindings/Documents/SHRM_Survey_ Findings_Strategic-Benefits-Health-Care.pdf>.
[4] Chenoweth, David. “Promoting Employee Well Being: Wellness Strategies to Improve Health, Performance and the Bottom Line.” SHRM Online. SHRM Foundation. 2011. PDF file. 29 December 2015.
[5] “The Health Effects of Overweight and Obesity.” Center for Disease Control and Prevention. Division of Nutrition, Physical Activity, and Obesity, National Center for Chronic Disease Prevention and Health Promotion. 5 June 2015. Web. 29 December 2015. <http://www.cdc.gov/healthyweight/effects/>.
[6] “The Best Ways to Boost Your Metabolism.” Health. Health Media Ventures, Inc. 2015. Web. 29 December 2015. <http://www.health.com/health/gallery/0,,20306911,00.html>.
[7] “Slideshow: 10 Ways to Boost Your Metabolism.” WebMD. WebMD, LLC. 2 September 2015. Web. 29 December 2015. <http://www.webmd.com/diet/ss/slideshow-boost-your-metabolism>.
[8] “Patient Protection and Affordable Care Act.” Wikipedia: The Free Encyclopedia. Wikimedia Foundation, Inc. 26 December 2015. Web. 28 December 2015. <https://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_ Care_Act>.
[9] “The Affordable Care Act is Working.” HHS.gov. U.S. Department of Health & Human Services. 24 June 2015. Web. 29 December 2015. <http://www.hhs.gov/healthcare/facts-and-features/fact-sheets/aca-is-working/ index.html>.
[10] “Sugary Drinks Portion Cap Rule.” Wikipedia: The Free Encyclopedia. Wikimedia Foundation, Inc. 16 September 2015. Web. 29 December 2015. <https://en.wikipedia.org/wiki/Sugary_Drinks_Portion_Cap_Rule>.
