Hospital Employers Cutting Costs in Response to Health Care Reform

March 29, 2011 ( - Health systems are responding to the Affordable Care Act by consolidating operations, enhancing wellness programs, and addressing benefit administration and other issues, according to a new survey.

The HighRoads survey found that over half of respondents (52%) believe that the passage of health care reform may decrease revenue to the organization. Sixty-three percent of respondents have been asked to remove costs or otherwise operate in a leaner environment as a direct result of the passage of ACA.   

A press release said the 2011 Per-Employee-Per-Year (PEPY) Medical/Rx costs of $9,991 reported by respondents represent approximately an 8.5% gross per capita increase over the past 12 months. The 2011 corresponding employee contributions of $1,914 represent about a 7.7% increase over the same period.   

Full-time employees, on average, will pay 19% towards the premium or budgeted medical/Rx rate in 2011. Including out-of-pocket costs, employees will pay approximately 26% of the total cost of health care.   

About 80% of respondents indicated that their organization offers health risk appraisals; however, only about 50% offer biometric screenings.   

HighRoads noted that compliance with ACA is also of growing concern to hospital industry employers.  

“The passage of ACA has created new challenges and opportunities for hospital human resources staff. They are charged with complying with a growing list of federal regulations, and with being able to attract staff with sufficient benefits and compensation,” said Josh Miley, Principal, HighRoads, in the press release.