Alabama SHRM Tusculoosa , AL 10/20/11 Brian Klepper. What If Employers Walked Away From Health Coverage?. Cumulative Increases in Health Insurance Premiums, Workers’ Contributions to Premiums, Inflation, and Workers’ Earnings, 1999-2011.
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What If Employers Walked Away From Health Coverage?
Cumulative Increases in Health Insurance Premiums, Workers’ Contributions to Premiums, Inflation, and Workers’ Earnings, 1999-2011
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2011. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1999-2011; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 1999-2011 (April to April).
Percentage of All Firms Offering Health Benefits, 1999-2011
*Estimate is statistically different from estimate for the previous year shown (p<.05).
Note: Estimates presented in this exhibit are based on the sample of both firms that completed the entire survey and those that answered just one question about whether they offer health benefits. The percentage of firms offering health benefits is largely driven by small firms. The large increase in 2010 was primarily driven by a 12 percentage point increase in offering among firms with 3 to 9 workers. In 2011, 48% of firms with 3 to 9 employees offer health benefits, a level more consistent with levels from recent years other than 2010. The overall 2011 offer rate is consistent with the long term trend, indicating that the high 2010 offer rate may be an aberration.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2011.
Average Annual Health Insurance Premiums and Worker Contributions for Family Coverage, 2009-2011
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2009-2011.
Health Care’s Growing Burden on Federal Budget Crowds Out Other Needs, Like Education
Here’s the Projected Percentage
of the Larger Economy
Best Guess (But Nobody Really Knows)
Two Scenarios Against a Bleak Economic Backdrop
Health Industry Backs Republicans in Opposing HC Reform
Health Law’s Cost Control Provisions Neutralized
Egregious Practices (e.g., Unnecessary & Inappropriate Utilization) Intensify
Employers Rapidly Priced Out of HC Market
Health Care/Coverage Sectors Implode
Pressure Increases on Gov’t For Solution.
Two Scenarios Against a
Bleak Economic Backdrop
Health Care Reform Law Moves Forward
2014 Health Care Exchanges Become Active
Economy Still Sluggish, HC Costs Still Increasing
Smaller Businesses, Particularly, See the Business Sense in Moving Employee Coverage to Exchanges
Some Business Decision Arithmetic
Some Business Decision Arithmetic
In the US Health System in 2010:
We Spent About $2.6 Trillion
About Half ($1.3 Trillion) Was For Commercial Coverage
Employers Paid $1 Trillion
Workers Paid $300 Billion
In Exchange Example, Employer Cost (Subsidy) Drops $200 Billion Annually, to $800 Billion.
What Happens To the $200 Billion/Year?
Over the past 20 years, we mostly haven’t:
Managed the care process, like businesses would.
Major Health Care Structural Flaws
When an employer sits down at the table with his health care relationships – the broker, health plan, doctor, hospital, drug and device company – everyone in the room but him wants it to cost more, and they’re positioned to make that happen.
Lynn Jennings, CEO
WeCare TLC, LLC
Unnecessary/Inappropriate Care & Cost
Our research found that wasteful spending in the health system has been calculated at up to $1.2 trillion of the $2.2 trillion (54.5%) spent in the United States.
[R]edundant, inappropriate or unnecessary tests and procedures [were] identified as the biggest area of excess, followed by inefficient healthcare administration and the cost of care necessitated by conditions such as obesity, which can be considered preventable by lifestyle changes.
The Price of Excess
Market-Based Approaches That Work
What Happened in Lafayette, IN
The Employer’s Dilemma
“We decided to stop letting the providers take advantage of us.”
Effective Onsite/Nearsite Clinic Characteristics
Onsite/Nearsite Clinics – Financial Impact
Onsite/Nearsite Clinics – Competitive Advantage
Savings Grow Over Time, and Create Competitive Advantage
Brian R. Klepper, PhD
is a health care analyst, industry advisor and commentator. He is Chief Development Officer for WeCare TLC, LLC, an onsite primary care clinic and medical management firm based in Longwood, FL and Managing Principal of Healthcare Performance Inc., a consulting practice based in Atlantic Beach, FL.
An active author and speaker, Dr. Klepper has provided health care commentary to CBS Evening News, the Wall Street Journal, the New York Times, and the Washington Post. He has published articles on Kaiser Health News, Medscape, Healthleaders, The New England Journal of Medicine, Modern Healthcare, Business Insurance and newspapers nationally.
In December 2010, he founded and now edits Care & Cost, an online professional health care magazine and forum. In February 2011, he founded Replace the RUC!, an effort focused on the most important driver of inappropriate health care cost. He is a regular columnist on the Health Affairs Blog,and other expert health care blogs.
Brian is a Committee Chair on the recently convened American Academy of Family Physicians’ Primary Care Services Valuation Task Force, and a reviewer for Health Affairs and The Journal of Ambulatory Care Management. He serves on the Boards of the Lundberg Institute and the Consortium for Southeast Hypertension Control (COSEHC), dedicated to translational medicine for vascular disease. He is an Advisor tothe Patient-Centered Primary Care Collaborative, which advocates for medical homes, and the Center for Value Health Innovation, which helps business identify and implement approaches that have been proven to improve quality and safety while reducing cost.
Contact Brian at 904.343.2921, [email protected]