Employee Benefit News Employee's Perceive Benefits as Declining

A recent article in the EBN (5/18) ....summarizes the results of surveys that the perception of most employee's is that the value of the employer provided benefits is eroding. They are being asked to pay more out of their paychecks..pay more at point of service with higher deductibles and out of pockets...and actual benefit coverage erosion They are in fact reflecting the reality that most business's simply cannot afford the current benefit coverages with medical trend again approaching double digits. The 2011 premium increase was the largest in 5 years. The average increase in member cost for 2011 was 12% and it is projected it will be about the same for 2012. Employers also are pursuing strategies to charge more for dependents and to reduce benefits so that they will be subject to the 40% excise tax that goes into play on the so called "Cadillac" plans. Some employers are looking at other strategies which really is looking to maximize the value of the dollars being spent on healthcare. With estimates that 30-40% of medical services being delivered deliver little or no clinical value..it simply means our system is delivering unnecessary surgical procedures that cost all of us and exposures the patient to significant risk from medical complications like infections and adverse events. It is also clear from the literature that the price of medical services in a given market can vary by +300%(MRI's ranging from $800 to $2000...colonoscopies ranging from $1200 to $4500). Our tool is designed to help purchasers (employers) directly contract with high quality cost effective providers that could result in improved clinical outcomes for patients (safe,evidence based care) while reducing overall costs by as much as 20%...