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HVBF Monthly Meeting - Human Resources
Roundtable Host: Loyola College in Maryland Attending: Lynn Argenbright, Pacific Life & Annuity Company Chairwoman Eileen Edwards opened the meeting and introduced our presenter Steve Butterworth of the Hays Companies. This was the second Roundtable in 2003 devoted to health care costs. This subject will continue to be of great interest as confirmed by our turn out this morning. Companies today are paying about one third of their payroll costs for benefits and the number is rising. Twelve to fifteen percent of that number is for health care, which now consumes up to one half of corporate profits. Double-digit annual increases are here to stay. The average premium for the average employee in 2003 is more than $ 9,000 and that is expected to reach more than $ 14,000 in 2006. No wonder there is concern and the need to examine our options. There are some elements beyond our control. The role of hospitals is one. Some others are mandates, technology and an aging population. We do have control over our plan design, sales commissions, vender performance management and consumerism. In 1960, the consumer paid 55% of health care costs. Today, that number is 15%. Those attending shared strategies and examined current trends that affect our costs. Only 30% of employers today are absorbing cost increases. It is essential to develop a roadmap and create objectives for your health care plans. 10% of employees drive 55% of medical costs. Education and wellness programs do reduce costs. Typical ROI for cost savings plans:
For more information contact Steve Butterworth at
sbutterworth@hayscompanies.com or |