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Wellness Articles

Health and Wellness

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Health and Wellness


Health and wellness continues to be the focus of employers in the United States and Canada as healthcare costs rise to astronomical levels. According to the Centers for Medicare & Medicaid Services (www.cms.hhs.gov), the United States spent $2.4 trillion in 2008 and is projected to reach an unprecedented $4.4 trillion and become one fifth of the nation’s Gross Domestic Product (GDP) by 2018.

PricewaterhouseCoopers (www.pwc.com) reported that health insurance costs increased by 6.1% in 2007. The report stated that around 87% of the health insurance costs were for the medical claims while 10% went toward administrative costs such as claims processing, consumer and provider support, taxes, and profits. The remaining 3% was reportedly insurance company profits.

A recent survey by Deloitte Consulting (www.deloitte.com) in conjunction with the International Society of Certified Employee Benefit Specialists (www.iscebs.org) showed that containing healthcare costs was listed as the number one priority for employers. Health insurance benefits expenses have more than any other cost of business in the last 10 years.

Large Fortune 500 companies are not the only organizations who are struggling to maintain profitability during these economically difficult times. Small and medium size businesses who offer healthcare benefits in order to stay competitive with larger organizations are finding it more difficult to continue offering medical benefits, especially with their limited buying power. According to a recent poll by the Robert Wood Johnson Foundation (www.rwjf.org), one in three small business owners will be cutting at least a portion of their employees’ health benefits in order to stay profitable.

Employee benefits and insurance plans are becoming increasingly similar to cell phone contracts. As competition among insurance providers becomes more violent, more opportunities are present for employers to re-evaluate their existing benefits plans and take advantage of new plan offerings. Some insurance groups are offering imbedded wellness programs, imbedded co-pays for generic medications, greater employee health education offerings, and other perks for switching plans. Employers should plan on investigating for alternate benefits plans yearly in order to get the best prices in the market.

With the costs associated with healthcare continually rising, employers are looking for additional means to reduce the need for care within their organizations. To do this, many employers are investing in health and wellness initiatives to change employee behavior and reduce the risk for medical claims utilization. Some of the interventions that are making the biggest dent in the bottom line for employers include yearly biometric testing, health risk appraisals, activity monitors, blood pressure machines, and health promotion materials.

Health and wellness programs are becoming the weapon of choice for many employers to combat rising costs. If you would like to learn more about Kersh Risk Management and our unique health and wellness offerings, please fill out our request free health and wellness program proposal form today!

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