NASHVILLE, Tenn., Sept. 9 /PRNewswire/ -- A fourth year of double-digit increases in the cost of health insurance premiums should motivate employers to try a new strategy: lower costs by improving employee health.
The Kaiser Family Foundation and Health Research and Educational Trust released the results of its annual Employer Health Benefits Survey today, revealing what most employers already know: employer-sponsored health insurance premiums increased an average of 11.2% in 2004 -- the fourth consecutive year of double-digit growth. Premiums for employer-sponsored health insurance rose at about five times the rate of both inflation and workers’ earnings.
The survey found that 61% of all workers receive health coverage from their employer, which is about the same as in 2003 (62%) but down significantly from the peak of 65% in 2001. There are at least 5 million fewer jobs providing health insurance in 2004 than 2001.
Gregg O. Lehman, Ph.D., president and CEO of Gordian Health Solutions, says employers can no longer cut costs by using the old “supply-side management” strategy--squeezing the benefit dollar by negotiating deep discounts with a limited number of providers.
“Employers are very well acquainted with supply side management strategies, but smart employers are becoming better acquainted with managing the other side of the equation--demand for costly services,” Lehman says. “Employers who invest in better employee health by giving employees the tools to reduce their health risks will reap dividends in better health and lower cost.”
Gordian, a leader in population health management, works with employers to demonstrate that keeping employees healthier increases productivity, reduces absenteeism and lowers overall health care costs. Studies show that the average return on investment for population health management programs ranges between $3 and $5 for every dollar spent. (Source: “The Cost Effectiveness of Health Promotion,” by John E. Riedel, MPH, MBA, from the Handbook of Health Assessment Tools.)
About Gordian Health Solutions, Inc.
Gordian is a national population health management company based in Nashville, Tennessee. Gordian works with employers, health plans and hospitals to identify, control and manage health risks and their associated costs. Through targeted and tailored programs, and sophisticated tracking, monitoring and reporting capabilities, Gordian works with clients to measure health, lifestyle and disease management program progress and cost savings. Visit Gordian at http://www.gordian-health.com/.
Gordian Health Solutions, Inc.; Health2 Resources
CONTACT: Karla Hurter, +1-703-319-0957, for Gordian Health Solutions,Inc.
Web site: http://www.gordian-health.com/