California HealthCare Foundation
February 2, 2005
California Employers View Health Care Cost-Sharing as Double-Edged Sword
Employers believe cost sharing encourages workers to spend wisely, but may
result in foregoing needed care
Increasing employee cost-sharing is now the most common strategy used by
California employers for reining in health care costs. But even as they shift costs, employers are concerned about the effects, according to recent surveys commissioned by the California HealthCare Foundation (CHCF) and conducted by Harris Interactive of California employers, residents, and adults who are chronically ill.
While the strategy has led a majority of employers to feel that their health care costs are more under control today than they were a couple of years ago, more than 75 percent of them now say cost-sharing causes consumers to forgo needed medical care and has a negative impact on individuals with chronic conditions. Over 40 percent of employers also believe that cost sharing reduces the productivity of workers.
Consumers confirmed employer concerns. The survey of the general population of adults in California found that one in seven adults had a medical condition but did not obtain care due to cost in the past year. Non-compliance with recommended medical treatment is particularly common among those with low incomes and those in fair or poor health, according to the survey.
http://www.chcf.org/press/view.cfm?itemID=108787
And…
kaisernetwork.org
Daily Health Policy Report
February 03, 2005
Survey Indicates Millionaires Not Insulated From Rising Health Costs
A new survey (by North Trust) of 1,312 people with “at least $1 million to invest, not including the value of their residences” indicates that significant assets do not “eliminate worries over increasing health care costs,” Dow Jones/Wall Street Journal reports.
North Trust Senior Vice President Thomas Hines said, “What happens is that when you’re no longer part of a larger group, health care plans have restrictions. If you have a catastrophic illness over a significant period of time, this can quickly” deplete benefits (Chu, Dow Jones/Wall Street Journal, 2/3).
http://www.kaisernetwork.org/daily_reports/rep_hpolicy.cfm
Comment: These two reports make it much easier to understand yesterday’s
Health Affairs article confirming that 76% of individuals with medical bills filing for bankruptcy had insurance coverage at the start of their illness. The CHCF/Harris Interactive survey confirms that three-fourths of employers now recognize that current employer-sponsored plans are no longer providing enough protection to ensure financial security in the face of medical debt.
But when millionaire investors are worried about the personal financial impact of health plan restrictions, we know that we’ve got a problem! (For those who are new to this list, I’ll say once again that we can remove all financial barriers to care and provide comprehensive coverage for everyone, without spending any more than the $1.8 trillion that we already spend, merely by adopting a universal single payer system.)