NEW YORK, March 31 /PRNewswire/ -- As a result of corporate cost shifting and cost cutting initiatives, eighty-six percent of employees face increased healthcare program contributions and 72% face raised deductibles, according to PricewaterhouseCoopers’ “Management Barometer,” a quarterly survey of top executives in large, multinational businesses, in a cross-section of industries. Nearly 50% of executives surveyed reduced benefits over the past three years to combat rising healthcare costs. These findings are based on interviews with 174 CFOs and Managing Directors of U.S.-based companies.
Employees are also feeling the impact of the rising cost of prescription drugs: 87% of executives surveyed adopted one or more approaches to reduce their program’s cost -- led by increased co-pays for brand name drugs (71%) and/or increased co-pays for generic drugs (69%.). Fifteen percent of the executives surveyed reduced or eliminated coverage for lifestyle drugs.
Eighty-nine percent of surveyed senior executives of large U.S.-based companies advocate programs to change employee health behaviors. Fifty-six percent of those surveyed have considered the option of offering a consumer-directed healthcare plan.
On the issue of developing new approaches to solve the healthcare dilemma, 94% of respondents rejected the “one pay” system overseen by the government.
“Companies are combining traditional disease management with coaching and information on things like diet modification and lifestyle changes. They are also providing financial incentives for employees who follow recommended medical care and treatment,” said Barry Barnett, a principal with PricewaterhouseCoopers’ human resource services group.
The survey also found that 47 percent of large multinationals sponsor a retiree medical program-and nearly half of those have had to cut benefits for current or future enrollees-28 percent and 44 percent, respectively.
Examined also were supplementary benefits where the employee pays the full cost, and the toll of healthcare costs on a company. For more information on these topics, or to arrange an interview please feel free to contact Ted Barna at 267-330-1551.
The survey is developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc. Additional information about Management Barometer is available at http://www.barometersurveys.com/ and from survey director and publisher Pete Collins, at pete.collins@us.pwc.com, or 646-394-4496.
PricewaterhouseCoopers (http://www.pwc.com/) provides industry-focused assurance, tax and advisory services for public and private clients. More than 120,000 people in 139 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders.
“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
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CONTACT: Ted Barna of PricewaterhouseCoopers, +1-267-330-1551,theodore.barna@us.pwc.com; or Nancy Brenner of MS&L forPricewaterhouseCoopers, +1-212-468-3859, nancy.brenner@mslpr.com
