Health Care Benefits Crisis: Cost Drivers and Strategic Solutions

Parmenter, Eric M.
July 2004
Journal of Financial Service Professionals;Jul2004, Vol. 58 Issue 4, p63
Academic Journal
Health care cost continues to experience double-digit increases to the point where the issue is becoming a crisis for employers and employees alike. This article examines the driving forces behind the rate increases including the aging baby boomers, technology cost, legislative initiatives, managed care saturation, direct-to-consumer prescription drug marketing, insurance industry consolidation and profit-taking, medical malpractice, poor quality health care, preventable and avoidable accidents and health problems, the uninsured, and consumer cost insulation or detachment. The article also explores strategic solutions to health care cost including defined-contribution health care, health promotion plans, health savings accounts (HSAs), an accountable health plan, emphasis on the patient-physician relationship, and intensive health care coaching.


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