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Finding the right health insurance option
Virtually
every company in the United States has experienced double-digit increases in
the cost of employer-sponsored health insurance every year for the last four
years. Construction firms are no exception. Neither are union-sponsored
health plans that cover many construction workers.
In response, contractors and union plans have passed on more costs to workers
in the form of increased contributions and cost sharing. They recognize,
however, that such measures are short-term fixes. For the long term, they are
seeking better alternatives. For union plans, the long-range outlook is
particularly challenging, as a decline in the number of active members must
fund coverage for an increasing number of retirees.
As a result, preferred provider organization (PPO) coverage is on the rise,
along with three-tiered drug copayment plans. In these plans, employees pay a
set amount for generic drugs, a higher amount for brand-name drugs on the
plan’s approved list and a still higher amount for brand-name drugs not listed.
Steps like these have helped construction companies survive health insurance
increases without significantly reducing or eliminating coverage, but even
the largest companies say more must be done. To that end, some are beginning
to consider less conventional tools to manage health care costs.
Consumer-directed plans
One often-mentioned option is a consumer-directed health plan. These programs
provide employees with an employer-funded account to pay for routine health
services or health insurance premiums.
Employees are never entitled to cash distributions, but any amount left
unspent in one year may be rolled into the next year. Some large contractors
offer these plans along with high-deductible insurance coverage for serious
injury or illness, but small contractors and subcontractors may find this
additional option too costly to offer to their workers.
More employers are opting to purchase health care collectively and some are
choosing tiered networks that offer financial advantages to employees who
participate in narrower provider networks than those typically available
through their PPOs.
Health awareness efforts
Employers agree, however, that real change is unlikely until workers take
more responsibility for their own health. Increasingly, companies are
sponsoring Web sites to encourage employees and their families to adopt
healthy lifestyles and follow good self-care practices. These sites provide
workers with health information, risk assessment tools and decision-making
assistance.
Progress in health awareness, these employers agree, can generate significant
progress in reining in health costs for both companies and their workers.
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