Employers shift more health costs to employees.Employers are continuing to shift much of the burden of rising healthcare costs to employees and retirees, accordingly to a study prepared by the Employee Benefit Research Institute. In 1980, 97% of full-time employees in medium-sized and large companies received health insurance coverage as a benefit. Those covered declined to 92% by 1988. Group health plan designs changed considerably in the past decade. In 1980, 60% of all health plans included first-dollar coverage for basic medical services and a major medical plan to cover expenses beyond the basic plan, usually at a rate of 80% after a deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). . By 1989, 68% of all plans were comprehensive plans subject to deductibles, coinsurance A provision of an insurance policy that provides that the insurance company and the insured will apportion between them any loss covered by the policy according to a fixed percentage of the value for which the property, or the person, is insured. and benefit limitations for virtually all covered services covered services, n.pl the services for which payment is provided under the terms of the dental benefits contract. Coxiella burnetii a species that causes Q fever in man. . These plans increase out-of-pocket costs out-of-pocket costs Managed care Health care costs that a covered person must pay out of pocket–eg, coinsurance, deductibles, etc. See Copayment. for the participant, thereby reducing the demand for healthcare services and keeping costs under control. As basic coverage becomes more expensive, alternative delivery services are taking an increasing share of the healthcare market. Health maintenance organization participants rose from 2% in 1980 to 19% in 1988. Preferred provider organizations pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. first became an option in 1986 but were used by 7% of participants in 1988. |
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