Health Care Costs Continue to Rise-Consider
Alternative Ways to Reduce Your Costs

In 2003 it is projected that health care costs will increase 15.4%. They have already increased 13.7% in 2002. It is projected that health care costs will double in the next five years unless changes are made in the health care arena and we all become more active health care consumers.

Here are some alternative ways employers can reduce their health care costs:

• Expect your employees to contribute more
• Have employees pay for the differential between family and single coverage
• Increase out-of-network penalties
• Increase co-payments for prescriptions and medical services
• Add incentives for using generic drugs
• Offer consumer-driven health plans-Using higher deductible plans combined with medical reimbursement accounts will help employers control costs and provide employees with more choice, flexibility, and control over their health care decisions.
• Try to consolidate coverage and simplify administration