Benefits December 18, 2002

Buck Finds No Cure in Sight for Healthcare Costs

December 18, 2002 (PLANSPONSOR.com) - There's apparently no respite in sight for employer healthcare costs, according to a new report from Buck Consultants.
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Employers’ health care costs will continue to increase at a double-digit pace in 2003, according to the results of a national survey of nearly 100 health insurers, HMOs and third- party administrators by Buck Consultants.   The ninth National Health Care Trend Survey, conducted in October and November, found that the costs of the most popular healthcare plans are now projected to be even higher than they were just six months ago, specifically:

  • Preferred provider organization (PPO) now expected to rise 15.0%, versus 14.8% in the prior survey
  • Point-of-service (POS) plans now expected to increase 14.8%, compared with the 14.6% previously projected
  • Health Maintenance Organization (HMO) now looking at a 13.8% increase, identical to the projection from June/July 2002

Although down slightly from the prior survey (see  Report Foresees Steep Healthcare Increases ), the most recent survey indicated costs for providing prescription drug card programs will continue to outpace those for other types of medical services.  

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Pharmacy benefit manager programs are looking at a 15.0% increase, down from the 15.9% projected in the prior survey.   Meanwhile, insurer programs are now anticipating a 20.3% rise, somewhat lower than the 20.6% previously reported.   Combined, employers are looking at a 16.4% increase, compared with a 16.9% rise from the prior survey.

Health insurers use trend factors by coverage, such as medical, prescription drugs, dental and vision care, to calculate their premium rates, and large self-funded employers use these trend factors to budget their future health care costs, according to Buck. In general, trend factors provide for price increases that may result from such variables as inflation, utilization of services, technology, changes in the mix of services and mandated benefits.

Benefits December 17, 2002

Hourly Workers See Short Job Search

December 17, 2002 (PLANSPONSOR.com) - According to CareerBuilder.com's "On the Job 2002" survey, nearly half (45%) of skilled and hourly workers said it would take less than a month for them to find a comparable job if they were laid off - but just 23% of salaried workers expected to fare as well.
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In fact, 60% of salaried workers estimated that their job search would last longer than two months, and 23% said six months or longer.

Skilled and hourly workers reported higher optimism for finding a comparable job over the long run as well; with 62% saying they could find a job in two months or less.   

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Not surprisingly, when asked the perception of a job being better, 90% of skilled and hourly workers responded compensation as the most important factor.   Additional reasons given were:

  • 84% – a balance of work and life
  • 82% – benefits
  • 76% – a good relationship with their direct supervisor
  • 75% – workplace safety.

Asked what resources they utilize the most to find a new job, skilled and hourly workers report classified ads in newspapers used most often.   Additional resources, in order of use, included:

  • Networking
  • National job/career Web sites
  • Newspaper Web sites
  • Recruiters
  • Web sites of professional associations

The CareerBuilder.com survey was conducted from October 23 to December 5, 2002.   Results are based on more than 2,200 survey respondents.

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