A Better Deal for Delaware

Employers do not expect a decline in the rate of health benefit cost increases any time soon. Meanwhile, they continue to invest in on-site medical clinics, call-in medical help lines and employee health appraisals to control those costs. These are among the major findings of a forthcoming survey conducted by Watson Wyatt Worldwide and the National Business Group on Health.

The survey of 573 large employers reveals that annual median increases for health care costs will remain at 8 percent in 2007. What’s more, employers expect cost increases to stay at 8 percent through 2008. While costs remain high, they have become more predictable in recent years. Eighty-two percent of employers also said their health care costs came in at or below budget in 2006, as did 84 percent in 2005.

Little Change Expected in Health Care Cost Increases
(median percentage cost increase for active employees)
Year Percent Increase
2003 13.0%
2004 10.6%
2005 8.5%
2006 8.0%
2007 8.0% (projected)

1. 8.0% (projected)

“The rate at which health care costs are increasing may be stabilizing, but it is still three times higher than the annual rate of inflation overall,” said Ted Nussbaum, director of group and health care consulting at Watson Wyatt. “With no reduction in cost increases, it becomes even more important to engage employees to carefully consider health care choices and make the most of health care dollars. And while investing in education programs, communication and infrastructure will not change behavior overnight, it will produce returns in the long run.”

Isn’t it time Delaware did something positive for health care??