Disease management for Taft-Hartley and multiple employer plans

All over the country, plan sponsors are struggling with rising health care costs. Today, U.S. companies and other plan sponsors are facing 2006 average benefit plan cost increases of 8%. Cumulatively since 1996, the healthcare cost burden has risen by a whopping 140%. Today the average cost for family coverage is $10,880.

The majority of healthcare costs – 70% – go to just 10% of your members with diagnosed “chronic conditions.” Diseases such as diabetes and heart disease are chronic conditions, which can result in costly acute care needs if not properly monitored and treated over time. According to the Partnership for Solutions, 133 million people, almost half of all Americans, live with a chronic condition. And by 2020, as the population ages, the number is expected to increase to 157 million.

Companies look to solve the problem by shifting more and more of the cost and responsibility onto workers through higher co-pays, more restrictive benefit plans, coinsurance, high deductible plans, and the like. In turn, plan sponsors need to respond with win-win solutions to lower costs and deliver real value for members.