Businesses May Face Higher Employee Health Costs in `97

By Paul Heldman Bloomberg Business News | THE JOURNAL RECORD, January 15, 1997 | Go to article overview

Businesses May Face Higher Employee Health Costs in `97


Paul Heldman Bloomberg Business News, THE JOURNAL RECORD


WASHINGTON -- Businesses will see modest increases in their employee health costs this year, possibly signaling the start of a steady climb in their health care spending.

Economists and industry analysts say managed-care health plans are poised to raise premiums after keeping them low over the last couple of years to boost enrollment growth.

Health maintenance organizations, which now cover 60 million Americans, are expected to raise premiums by 2 percent to 5 percent in 1997 after being held to virtually no increase in 1996, according to industry analysts. Just this week, United Healthcare Corp., which covers more than 13 million Americans through its health plans, said its premiums will increase more than 5 percent this year. To be sure, the nation's biggest employers are still negotiating tough deals on health care premiums and are passing on more costs to employees. The premiums of major corporations are expected to rise on average between 1 percent and 3 percent this year, according to William Falk, a principal at Towers Perrin. The benefits consulting firm will release a survey of Fortune 1,000 company health care costs in the next few weeks. Smaller employers, however, may not do as well. They don't have as much bargaining clout when negotiating with health plans. And some companies, large as well as small, are experiencing premium increases after seeing their costs decline as their employees were moved into HMOs over the last couple of years. "Because HMOs wanted their business, they may have cut (premiums) to the bone; they don't have room to do that anymore," Falk said. Indeed, many companies have already reaped their big savings by moving all their employees out of fee-for-service coverage and into managed care plans. "Most of the low hanging fruit has been picked, so that one-time savings has gone away," said John Erb, a principal at Foster Higgins. The benefits consulting firm will also release a survey of employer costs in the next few weeks. That may mean health spending will start to accelerate as early as next year. "You've seen some very substantial bargaining down of payment rates and cutting out some inefficiencies in the system," said Ken Thorpe, a former Clinton administration economist who now directs Tulane University's Institute for Health Services Research. "At some point, growth will start to go up. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Businesses May Face Higher Employee Health Costs in `97
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.