Medical cost trends: employers embrace prevention and disease management

A market analysis by PricewaterhouseCoopers’ Health Research Institute frustratingly predicts that health care costs will continue to outpace the rate of inflation next year.

Its report, called “Behind the numbers: Medical cost trends for 2009,” notes that employers will rely on prevention and disease management programs to temper costs in 2009 rather than shifting higher levels of cost-sharing onto workers.

Among their reasons:

  • Only 38 percent of employers surveyed said they expected to increase cost-sharing through plan design changes.
  • Wellness programs have become commonplace — two-thirds of employers are using them, and nearly half say they are somewhat effective at reducing costs.
  • Wellness programs aren’t merely a cost-reduction tactic. Employers said these initiatives were nearly equally effective at boosting productivity, improving employee loyalty and demonstrating corporate loyalty.
  • Many Wichita employers are embracing wellness programs. Where does your company stand on this? Is it worth the effort?