The main objective of many HR professionals today is to temper costs by getting employees more involved in their medical care decisions, expenses and overall health. This may be at least partially attributed to the fact that many experts expect health care costs to increase in 2011.

Health Care Cost Projections for 2011

Cost trends are now available for 2011 from various research organizations. The following health insurance cost predictions are based on recent employer surveys.

Hewitt Associates reports that health care cost increases will be the highest levels in the last five years due to rising medical claim costs, the aging population and the changing health care reform landscape. The organization projects an 8.8 percent average premium increase for employers in 2011, up from 6.9 percent in 2010 and 6.0 in 2009. Also, the average health care premium for an employee at a large organization is expected to be $9,821 in 2011, up from $9,028 in 2010. Employees will be asked to contribute $2,209 (22.5 percent) of their total health care premium, which is up 12.4 percent from 2010, when employees contributed $1,966. Employee out-of-pocket costs are also projected to increase to $2,177 in 2011 from $1,934 in 2010.

Hewitt also reports that employers were able to mitigate costs in this difficult economy by cost shifting, negotiating costs with health plans and increasing their efforts to promote preventive care. Of respondents, 95 percent indicate that managing costs is a top business concern. They will reduce these costs by increasing employee cost sharing, conducting dependent eligibility audits, encouraging spouses to enroll in their own employer’s plans when available, consolidating vendors and taking measures to improve their employees’ health.

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Although hordes of consumers use the Internet as a tool for seeking out medical information, new studies show that only a scarce few are using physician ratings sites to choose their doctor. More than 80% of California based adults say they use the Internet for health-related information, such as medical symptoms and diagnoses, according to a Harris Interactive poll commissioned by the California HealthCare Foundation. However, only a handful of adults are visiting and using the information from physician ratings sites.

As a matter of fact, less than 25% of those surveyed say they have visited physician ratings sites, and only 2% of those actually made a physician change based on the information they found. Even fewer, less than 1%, say they made a hospital or health plan switch based on online ratings.

Will ratings sites ever take off?

Some experts say these statistics prove it will be a long while before physician ratings sites grow in popularity—and that they may never catch on at all. However, other industry professionals believe that few patients visit these sites because the market is still in its infancy. They believe that as the ratings information becomes more in-depth, more consumers will flock to the sites.

Additionally, some insurers are encouraging members to use their own ratings sites. In these types of networks, members pay less out of pocket if they visit a physician that meets the insurer’s “quality criteria.” However, many doctors claim this system is flawed.

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In an effort to reduce benefit costs, many employers are of course implementing cost-containment strategies.  Below are some examples:

-    Rewards For Good Health

• Offer financial incentives to employees who have healthy habits and lifestyles or those who participate in wellness programs at work. Penalize workers with higher premiums for engaging in unhealthy activities, such as smoking.
• Offer discounted rates for those who participate in wellness programs and maintain good health.

-    Preventive Care Benefits

• Offer full coverage for employees who seek preventive medical care and preventative drugs without a deductible, including vaccinations, exams and screenings for diseases such as breast, colon and cervical cancer, blood pressure and cholesterol. Starting on the first plan year on or after Sept. 23, 2010, certain plans are required to cover preventive care services at no cost-sharing to the employee under PPACA.

-    On-site Health Centers

• Offer on-site health centers and staff health coaches to provide advice on personal health needs.

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