Employers Promote Healthcare Consumerism

May 1, 2003 (PLANSPONSOR.com) - Employees are turning to healthcare consumerism in an effort to convince employees to chip in more to rapidly rising healthcare prices.

While the vast majority (87%) of employees agree healthcare costs are outpacing inflation and 63% agree that these costs have an impact on employer profits, less than half (46%) believe employers are unable to absorb the increase. Therefore, many US companies are shifting more responsibility and accountability for healthcare costs to employees and in doing so are considering health plan designs that encourage employees to become more effective healthcare consumers, according to the Towers Perrin survey Keeping Employees Engaged About Health Care.

“Health care consumerism is a shared employer-employee responsibility,” explained Jim Foreman managing director of Health and Welfare for Towers Perrin.   “Employers provide employees with the tools they need to become better consumers.   Employees, in turn, agree to share in the costs and make informed decisions about lifestyle and healthcare choices.”

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However, Foreman is quick to point out that consumerism should not be confused with a consumer driven plan.   “Consumer-driven health plans are simply one element of a consumerism strategy.   These plans bundle accountability and support by providing a health care reimbursement account and catastrophic coverage.”

Differences of Opinion

Not surprisingly, age and health status also is significant in employee perception on healthcare consumerism.   Only 28% of younger workers (under 35) polled thought it was fair for employers to ask them to absorb some of the annual increases in health care costs, compared to more than 50% of older workers (35+ years).   Further, only 44% of younger employees believed that increasing health care costs have an impact on an employer’s bottom line, compared to more than 70% of older workers.

Following along the same lines, employees who consider themselves to be in poor health are far more receptive to receiving expert guidance and following suggestions from health experts regarding care than others who consider themselves to be in good health.   Over three quarters (76%) of those employees who describe themselves in good health say they already have access to the information required to be an effective healthcare consumer, compared to 61% of those in poor health feeling the same.   Conversely, those in poor health are more receptive to follow suggestion and guidance from health plan experts regarding care (76%) than their healthy peers (64%).

Communication Key

“Rather than just communicating information about health care costs to employees, companies must be more visible in how they actively manage the experience that employees and their families receive,” said Mark Schumann, the leader of Towers Perrin’s Communication practice.

The survey shows that the most helpful employer-provided communications are those tied to health-related Web sites (73%) and medical hot lines (62%) not under the employer’s control. Other sources of information were listed as:

  • Informative books and brochures (56%)
  • Targeted communications on medical conditions (45%)
  • Newsletters on health issues (35%)
  • Employee meetings (14%)
  • Employee and spouse meetings (12%)

Interestingly, those employees who describe themselves in poor health overwhelmingly (81%) would find targeted communications on medical conditions the most helpful source of information in making effective healthcare decisions.   These results “foretells a future of company partnerships with best-in-class information providers to relay messages and keep employees engaged,” Schumann added.

March Mass Layoffs Plummet from 2002

April 30, 2003 (PLANSPONSOR.com) - There was a hint of good labor market news Wednesday with word that the number of mass layoffs in March plummeted to its lowest level for March in three years.

The US Department of Labor’s Bureau of Labor Statistics (BLS) reported that March 2003 saw 1,170 mass layoffs involving 109,838 workers. The BLS defines a mass layoff as one involving 50 workers or more and measures it by new filings for unemployment insurance benefits during the month.

Compared with March 2002, the number of layoffs declined by 20% and the number of workers involved fell by 32%.   From January through March 2003, the total number of layoffs at 4,767, and initial claims, at 450,312 (See  Manufacturing Sector Leads Early 2003 Mass Layoffs) , were lower than in January to March 2002 (4,989 and 564,141,respectively).

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Manufacturing industries accounted for 33% of all mass layoffs and 37% of all initial claims filed in March, little changed from a year earlier (34% and 37%, respectively).   The number of initial jobless benefits claimants was highest in food production (7,520, largely in frozen fruits and vegetables), followed by computer and electronic products (5,298) and transportation equipment (5,061).

  

The administrative and waste services sector accounted for 13% of events and initial claims filed during the month, with layoffs mostly in temporary help services.   Eight percent of all layoffs and 9% of initial jobless claims filed during the month were in retail trade, primarily in general merchandise stores.   Ten percent of the events and 7% of the initial claims were from construction, most often among specialty trade contractors.   The accommodation and food services sector accounted for 6% of events and initial claims, mostly from food service contractors.

  

Government establishments accounted for 4% of layoffs and 3% of initial jobless claims filed during the month, particularly in educational services. Compared with March 2002, the largest decreases in initial claims were reported in administrative and support services (-7,475) and professional and technical services (-5,206).   The largest over-the-year increase in initial claims was reported in motion picture and sound industries (+2,590).

Among the four regions, the highest number of initial claims in March due to mass layoffs was reported in the west at 46,815.

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