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back to index backGLOBALtalk May,  2007


Health care costs show little sign of decline

Employers do not expect a decline in the rate of health benefit cost increases any time soon, and they are investing in on-site clinics, call-in medical help lines and employee health appraisals in efforts to control costs.

A Watson Wyatt Worldwide/National Business Group on Health survey of 573 large employers found that employers expect annual median increases for health care costs to remain at 8 percent in 2007 and 2008. While costs remain high, they have become more predictable in recent years.

Many employers are implementing creative solutions in an effort to improve employee health and stem costs long-term. More than three out of four of the surveyed companies (78 percent) offer a nurse line, while 72 percent offer health risk appraisals. Additionally, 42 percent are implementing programs that focus on reducing obesity among employees. Some employers are seeking to improve employee health by also providing easy access to health care. For example, 23 percent have opened on-site clinics at some locations, and 14 percent have opened on-site pharmacies.

Source: Watson Wyatt WorldwideGAI


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