Health Care Survey Participant Profile panies 6+ million employees pany: 12,611 employees Primarily HR and Benefit Leaders Consumer products 12% Pharmaceuticals 4% Manufacturing 13% Financial 7% Technology 4% Health care 9% Retail 9% Entertainment/hospitality 4% Insurance 7% Professional services 8% Energy production/ Transmission 2% Other 2% Printing, Publishing & Communication 2% Utilities 4% Government/ Education 8% munications 3% Chemicals 3% Transportation 2% Expected Average Cost Increase Overall cost increase from 2004 to 2005 will average 12%, but 8% is the maximum affordable increase Traditional HMO EPO POS PPO Indemnity Medicare Advantage Prescription Drugs 12% 12% 11% 11% 12% 9% 13% Consumer Driven Build Your Own Multi-tier Select CDHP (account-based) 7% 8% 9% 10% Strategic Direction Employee contributions for dependent coverage works Employee contributions for single coverage Disease management incentives Benefit design and out-of-pocket cost sharing Prescription drug plan alternatives anization’s Approach Toward Change Leading edge Close follower Strategic Direction anization’s Approach Toward Change Advanced procurement strategies Incentives to use efficient providers Strategic outsourcing Consumer driven health plans Exiting retiree medical 13% 27% 27% 25% 19% 19% 13% 9% 8% 8% Leading edge Close follower How Will We Influence Consumers? + Employee Choosing and Using Behaviors Choosing Health Plans Traditional Plans PPO POS HMO EPO Consumer Driven Plans Account-based CDHPs Build Your Own works Multi-works Using Health Care Health Choices Physician Choices Hospital Choices Pharmaceutical Choices + Designing Incentives for Behavioral Change Copays $20 Coinsurance 20% Carrots + Sticks ●$2 Generics ● 30% Brands “Build Your Own” Health Plan Health Savings Accounts Mandates/ works + Health Savings Account-Based Consumer Driven Health Plans Health Plan Coverage
