| A resounding 96 percent of companies found increased health care costs contributed to slowed profit growth during the past 12 months, according to research published earlier this week by the PricewaterhouseCoopers Health Research Institute. Additionally, 22 percent said increases in medical costs will force them to lower wage increases for employers.
Nevertheless, 87 percent of companies are opposed to moving away from employer-sponsored health care coverage. More firms are designing plans that deter unhealthy behavior by charging higher premiums and offering incentives for weight-loss or smoking cessation.
About 80 percent of employers said providing financial incentives could reduce health care costs.
Nearly two-thirds of companies agreed that workers who smoke, maintain an unhealthy diet or don’t exercise enough should pay more for their health care coverage than employees with healthier behaviors.
This figure is up significantly from 48 percent in 2005.
Seventy-three percent of surveyed employers said retiree health coverage is placing financial pressure on their organizations. Seventy-four percent agreed they should provide access to affordable retiree health coverage, but not necessarily fund it.
Another 80 percent said there should be more tax incentives for employees to set aside funds for health care needs in retirement.
A whopping 94 percent of employers admitted they can do a better job in providing health care need in retirement.
About 62 percent said health care costs could be reduced by providing employees with information about health care costs and quality, says PricewaterhouseCoopers.
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