Industry and Insurer Interventions to Control the Costs of Health Benefits

  • William J. Bicknell
  • Brant Kelch
Part of the Industry and Health Care book series (SSIND, volume 6)

Abstract

The costs of employee health benefits are growing out of proportion to the scope of the benefit and often faster than the balance of the compensation package. Even though health benefit costs are pretax dollars, they are now such a significant percentage of total compensation costs that corporate management must critically examine them and determine whether there are better ways to purchase a given level of benefit.

Keywords

Clay Migration Cobalt Insurance Coverage Income 

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Notes

  1. 1.
    Office of Management and Budget, Special Analysis, Budget of the U.S. Government, 1979. Washington. D.C., January 1978. p. 242.Google Scholar
  2. 2.
  3. 3.
    Calculated from Health Insurance Institute news release, February 16, 1978; $623/day in 1976 adjusted for 16 percent increase for 1977 per Medicare-Medicaid Information, vol. 3, no. 3 (March 1978). p. 9.Google Scholar
  4. 4.
    Department of Health, Education and Welfare, Health: United States, 1976–1977. table 169.Google Scholar
  5. 5.
    Medicare-Medicaid Information (March 1978). p. 8.Google Scholar
  6. 6.
    Between 1950 and 1976 total health expenditures increased at an average annual rate of 919 percent, but at only 4.9 percent adjusted for inflation.Google Scholar
  7. 7.
    Office of Management and Budget, Special Analysis, p. 242.Google Scholar
  8. 8.
  9. 9.
    Victor R. Fuchs, Who Shall Live (New York: Basic Books, 1974).Google Scholar
  10. 10.
    Mercer Bulletin, vol. 4, no. 4 (April 1978).Google Scholar
  11. 11.
    Ibid. Calculation based on 33 percent direct pays in 1976.Google Scholar
  12. 12.
    Federal Register, September 17, 1976, p. 40319.Google Scholar
  13. 13.
    Health: United States, 1976–1977, p. 348.Google Scholar
  14. 14.
  15. 15.
    “Approval Program for Blue Cross Plans,” courtesy of Blue Cross Association.Google Scholar
  16. 16.
    Blue Cross Association Management Summary Report to Chief Plan Executives, 1976.Google Scholar
  17. 17.
    Executive Office of the President, Council on Wage and Price Stability, The Complex Puzzle of Rising Health Care Costs: Can the Private Sector Fit it Together? (Washington, D.C.: USGPO, December 1976), p. iv.Google Scholar
  18. 18.
    From Department of Health, Education and Welfare, 1977 “Analysis of Intermediaries and Carriers Administrative Costs,” Washington, D.C.Google Scholar
  19. 19.
    “Comparison of Unit Costs and National Performance Standards Data, Third Quarter 1977,” Blue Cross Association, January 31, 1978.Google Scholar
  20. 20.
    Department of Health, Education and Welfare press release, April 12, 1978.Google Scholar
  21. 21.
    New England Journal of Medicine, vol. 296 (1977), pp. 601–608.Google Scholar
  22. 22.
    D.C. Walsh and R.H. Egdahl, Payer, Provider, Consumer: Industry Confronts Health Care Costs (New York: Springer-Verlag, 1977).Google Scholar
  23. 23.
    D.C. Walsh and W.J. Bicknell, “Forecasting thP. Need for Hospital Beds: A Quantitative MethOdology,” Public Health Reports, vol. 92 (1977), pp. 199–210.PubMedGoogle Scholar
  24. 24.
    W. McClure, “Reducing Excess Hospital Capacity,” DHEW (HRA-230-0086), October 15, 1976.Google Scholar
  25. 25.
    R.H. Egdahl et al., “The Potential of Organizations of Fee-for-Service Physicians for Achieving Significant Decreases in Hospitalization,” Annals of Surgery, vol. 186 (1977), pp. 156–167.Google Scholar

Copyright information

© Springer-Verlag New York Inc. 1979

Authors and Affiliations

  • William J. Bicknell
  • Brant Kelch

There are no affiliations available

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