Ask FERF (financial executives research foundation) about ... healthcare plans and costs.The article on page 50, contributed by Financial Executives Research Foundation (FERF FERF Financial Executives Research Foundation FERF Far End Reporting Failure FERF Far End Receive Failure ), discusses possible cures for rising healthcare costs at privately held companies privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. . Of course, the issue of spiralling healthcare expenses has become a migraine for companies of all sizes, as the panoply pan·o·ply n. pl. pan·o·plies 1. A splendid or striking array: a panoply of colorful flags. See Synonyms at display. 2. of costs associated with managed care and prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, benefits keep soaring. What are these healthcare costs, by how much are they increasing and why do they continue to rise at such an accelerated rate, compared to most other costs in the greater economy? Here are some useful and credible sources of further information: Grant Thornton LLP  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Eric Parmenter, Grant Thornton's practice leader for compensation and benefits consulting, has written a white paper titled, "Health Care Benefit Crisis: Cost Drivers and Strategic Solutions." A free copy can be downloaded from the Grant Thornton Web site: www.grantthornton.com/downloads/HealthCareCrisisDrivers_94058.pdf. The National Federation of Independent Business The National Federation of Independent Business (NFIB) is a lobbying organization with offices in Washington, D.C. USA, and in all 50 state capitals. NFIB claims a membership base in excess of 600,000. (NFIB NFIB National Federation of Independent Business NFIB National Foreign Intelligence Board ) Healthcare is one of the National Agenda issues on the NFIB home page (www.nfib.com). Clicking on "Health Care" opens an entire portal of useful information, including descriptions and discussions of: * Association Health Plans (AHPs) * Flexible Spending Accounts (FSAs) * Health Savings Accounts (HSAs) * Medical Liability Reform * Tax Credits for Health Care Costs There is also a link to download a free copy of NFIB's white paper titled: "Cost Versus Value--Choice Versus Change: Small Business Owners Consider the Future of Health Care." This white paper discusses small business's unique healthcare perspective and options. In addition, the NFIB home page has a link to Tools & Tips. Click on "Compensation and Benefits," and then "Benefits," and there are links to a number of useful white papers, including: * What is an HSA HSA Health Savings Account (US) HSA Human Serum Albumin HSA Human Services Agency (Nevada) HSA Health Services Agency HSA Health and Safety Authority (Ireland) ? * HSA Accounts Let Small-Business Owners Save Money Without Skimping 'skimping' Managed care The delaying or denial of services to members of a prepaid or 'capped' health plan, to control costs–because the monies received by the health plan remain constant, providing 'extra' services is more costly to the plan. See Skimming, Capitation. on Benefits * Practical Steps to Minimize HIPAA (Health Insurance Portability & Accountability Act of 1996, Public Law 104-191) Also known as the "Kennedy-Kassebaum Act," this U.S. law protects employees' health insurance coverage when they change or lose their jobs (Title I) and provides standards for patient health, Obligations and Costs * HRAs Provide Welcome Glimpse of Health-Care Relief * How to Navigate NFIB's Health Care Offerings. The Henry J. Kaiser Henry John Kaiser (May 9, 1882—August 24, 1967) was an American industrialist who became known as the father of modern American shipbuilding. Early life Beginning as a cashier in a dry-goods shop in Utica, New York, Kaiser moved many times as he pursued the Family Foundation 2003 Annual Employer Health Benefits Survey This report provides the results of a survey of over 2,800 randomly selected public and private employers, ranging in size from small enterprises to large corporations. Here are some of the survey highlights: * In 2003, premiums increased 13.9 percent over 2002, the seventh straight year of increases and the third consecutive year of double-digit increases. * For the second consecutive year, premium increases exceeded the rate of inflation by more than 10 percentage points. * Premiums averaged $3,383 for single coverage and $9,068 for family coverage. * Employers were willing to consider changes to their health plans, with 62 percent reporting that they shopped for a different arrangement and a third reporting that they either changed carriers or plan types. However, employers indicated that they do not have a high level of confidence in current strategies to control costs. A free copy of the survey results can be downloaded at the Kaiser Family Foundation The Henry J. Kaiser Family Foundation (KFF), or just Kaiser Family Foundation, is a U.S.-based non-profit, private operating foundation headquartered in Menlo Park, California. Web site: www.kff.org/insurance/ehbs2003-abstract.cfm. The 2004 Segal Health Plan Cost Trend Survey This report provides the results of a survey of more than 60 major insurance carriers, managed care organizations, pharmacy benefit managers and third-party administrators. It focuses on claims cost trends, before changes in plan design or participant contributions are considered. Here are some of the survey highlights by plan: * Medical Plans. The costs of medical plans are projected to increase at rates of between 13 percent and 15 percent, slightly lower than in 2003. * Prescription Drug Plans. As it has for the last several years, the cost of prescription drug coverage is expected to exceed other coverage increases. Trend rate increases of nearly 18 percent are forecasted for 2004. * Dental Plans. The projected trend rates for all types of dental plans in 2004 are 5 percent to 7 percent, similar to or slightly lower than 2003 levels. A free copy of the survey results can be downloaded at The Segal Co. Web site: www.segalco.com/corporate/pub-corporate.cfm?ID=462. William M. Sinnett (bsinnett@fei.org) is Manager of Research at FERF. contributed by FERF |
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