Consumer-Driven Health Care Plans Gain Momentum as Employers Fight To Control Escalating Costs: Deloitte & Touche Study.Business Editors CHICAGO--(BUSINESS WIRE)--March 31, 2003 Staggering double-digit health care cost increases are driving companies closer toward fundamentally new health care benefit plans that make employees more accountable for medical-purchase decisions, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a survey by Deloitte & Touche LLP LLP - Lower Layer Protocol , one of the nation's leading professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. firms. In a nationwide poll of nearly 300 mid-sized and large corporations, the percentage of companies offering "consumer-driven" health care plans more than doubled in one year from 11 percent. Another eight percent will definitely offer a consumer-driven plan within the next two years, and 35 percent are reviewing such plans and may offer one in the near future. Nearly half (45 percent) of the respondents believe that consumer-driven health care will be part of most employer health plans by 2005. Consumer-driven health care plans are employer-sponsored benefit programs that educate employees about the true cost of medical services and, through cost sharing features, hold them more responsible for their medical purchase decisions. For example, these plan designs allow employees to understand the price differences between brand and generic prescription drugs 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, or between consulting with a physician in the emergency room or in the doctor's office. Consumer-driven health care plans are based on the theory that employees who have an increased financial interest in their health care purchases will become more efficient in their utilization of health care resources. "Much like today's pension plan funding crisis, most companies simply cannot afford the staggering rise in health care costs, and human resource and finance executives are scrambling for a viable solution," said Steve Kraus, Midwest principal-in-charge of Deloitte & Touche's Human Capital Advisory Services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal practice, and leader of the study. "What's more, many companies have lost confidence in the effectiveness of traditional managed care programs such as HMOs, and employees are expressing a willingness to take more control of their health care purchase decisions," Kraus added. Indeed, of the early adopter companies offering a consumer-driven health care plan, more than two-thirds (67 percent) agree that health care consumerism consumerism Movement or policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer. will be well-received by some of their employees. In fact, 41 percent of those companies report that more than one-fifth of their eligible employees have already signed up for the new consumer-driven health care benefit plan. More than half (52 percent) of the companies surveyed agreed that consumer-driven health care plans will result in immediate employer cost savings, while slightly more than one third (36 percent) believe these new plans will reduce the long-term health care cost trend. "Concerns about plan complexity and whether they may only benefit healthy employees are leaving some skeptical about consumer-driven health care plans as a long-term solution to the health care industry conundrum conundrum A problem with no satisfactory solution; a dilemma ," noted Kraus. "But, it is clear that there is increasing interest today to at least consider these plans as an option in a company's health care benefits mix." About the Survey Survey respondents were senior financial and human resource executives from more than 300 mid-sized and large U.S. companies from a broad cross-section of industries. About Deloitte & Touche Deloitte & Touche, one of the nation's leading professional services firms, provides assurance and advisory, tax, and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects services through nearly 30,000 people in more than 80 U.S. cities. The firm is dedicated to helping its clients and its people excel. Known as an employer of choice for innovative human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. programs, Deloitte & Touche has been recognized as one of the "100 Best Companies to Work For in America" by Fortune magazine for six consecutive years. Deloitte & Touche refers to Deloitte & Touche LLP and related entities. Deloitte & Touche is the U.S. national practice of Deloitte Touche Tohmatsu Deloitte & Touche (also referred to as Deloitte Touche Tohmatsu, and branded as Deloitte.) is the second largest professional services firm in the world, and one of the Big Four auditors, along with PricewaterhouseCoopers, Ernst & Young and KPMG. . Deloitte Touche Tohmatsu is a Swiss Verein A Swiss Verein ("Verein" is German for "Union") is a legal structure in Swiss law. It is similar to the Anglo-American voluntary association. Unlike Germany, a Swiss Verein does not need to be registered in order to have a separate legal personality. Most Swiss NGOs resp. , and each of its national practices is a separate and independent legal entity. For more information, please visit Deloitte & Touche's Web site at www.us.deloitte.com. |
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