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Federation of State and Provincial Professional Firefighters Friday May 12, 2006

2. Session Objectives. Examine the Drivers of Healthcare Costs and Trends Related to those CostsDiscuss Quality and Affordability InitiativesState of the Union Engagement in Healthcare. ? Blue Cross and Blue Shield Association, 2004. All Right reserved.. 3. Impact of Rising Medical Costs on Premi

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Federation of State and Provincial Professional Firefighters Friday May 12, 2006

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    1. Federation of State and Provincial Professional Firefighters Friday May 12, 2006 Bonnie Summers, PAHM and CMCE Executive Director

    2. 2 Session Objectives Examine the Drivers of Healthcare Costs and Trends Related to those Costs Discuss Quality and Affordability Initiatives State of the Union Engagement in Healthcare

    3. 3 Impact of Rising Medical Costs on Premiums Rising medical costs have caused premiums to grow more rapidly than workers’ earnings or inflation

    4. 4 Healthcare Cost Drivers Hospital expenses, physician services, and prescription drugs have all contributed to rising medical costs

    5. 5 National Healthcare Trends Private health insurance pays for 36% of the nation’s healthcare dollar; Medicare, Medicaid and other public sources together account for 45%

    6. 6 Key Cost Drivers: Chronic Diseases Fifteen diseases have driven the majority of the healthcare spending increase

    7. 7 Key Cost Drivers: Aging Population The aging population bears much of the economic burden of chronic disease

    8. 8 Consumer Engagement: Lifestyle Obesity in the U.S. adult population has increased substantially over time, with 31% of adults being obese by 2002

    9. 9 Defining Quality For example, the Institute of Medicine (IOM) of the National Academies has their own definition of quality

    10. 10 Quality and Affordability Initiatives – Care Management Many health insurers are using care management programs to control costs while improving quality

    11. 11 Quality and Affordability Initiatives – Wellness Programs Firms are offering a variety of wellness programs Nearly two-thirds of the employers polled in a recent survey offer wellness programs as a way to stem the costs associated with group health care benefits. In the survey, conducted by the Brookfield, Wis.-based International Foundation of Employee Benefits Plans, 62% of the respondents reported that they offer wellness programs such as health education and screenings. Another 15% said they plan to add such programs within the next year, while 23% said that they have no wellness programs and do not plan to add any. Respondents included 464 IFEBP members based in the United States and Canada, representing corporations, public employers, professional service firms and multiemployer trust funds. Health education programs are the most popular wellness offering, provided by 80% of respondents with wellness programs. Health screenings and subsidized flu vaccinations each are provided by 70% of the respondents with wellness programs. Smoking-cessation programs are also common, provided by 60% of respondents, while other initiatives such as employer-sponsored sports teams and onsite massage therapy are less common, offered by 23% and 24%, respectively. More than 80% of employers report an average employee participation rate of 50% or below, according to the survey results. The prevalence of wellness programs varies depending upon the business sector, the survey found. While 75% of corporate respondents and 65% of those in the public employer sector offer such programs, the percentage drops to 45% for professional service firms and 39% for multiemployer trust fund respondents. Nearly two-thirds of the employers polled in a recent survey offer wellness programs as a way to stem the costs associated with group health care benefits. In the survey, conducted by the Brookfield, Wis.-based International Foundation of Employee Benefits Plans, 62% of the respondents reported that they offer wellness programs such as health education and screenings. Another 15% said they plan to add such programs within the next year, while 23% said that they have no wellness programs and do not plan to add any. Respondents included 464 IFEBP members based in the United States and Canada, representing corporations, public employers, professional service firms and multiemployer trust funds. Health education programs are the most popular wellness offering, provided by 80% of respondents with wellness programs. Health screenings and subsidized flu vaccinations each are provided by 70% of the respondents with wellness programs. Smoking-cessation programs are also common, provided by 60% of respondents, while other initiatives such as employer-sponsored sports teams and onsite massage therapy are less common, offered by 23% and 24%, respectively. More than 80% of employers report an average employee participation rate of 50% or below, according to the survey results. The prevalence of wellness programs varies depending upon the business sector, the survey found. While 75% of corporate respondents and 65% of those in the public employer sector offer such programs, the percentage drops to 45% for professional service firms and 39% for multiemployer trust fund respondents.

    12. 12 Labor Unions Participation in Health Promotion Benefits

    13. 13 Labor Unions Participation in Healthcare Spending Accounts

    14. 14 Discussion

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