Healthcare Costs Increase, but Employee Efforts to Reduce Rates Drop

11/11/2010

Costs for medical care and health insurance coverage have consistently edged upwards year after year. While there are steps consumers can take to help reduce the effects of rate hikes, a Towers Watson survey reveals a growing number of people aren't trying to make healthcare more affordable.

Between 2007 and 2010, the percentage of employees saying they haven't done anything to reduce their healthcare expenses increased from 14 percent to 21 percent.

Senior healthcare consultant with Towers Watson Harlan Levine says healthcare reform may inadvertently cause people to be even less engaged in employer programs.

"Over time, the creation of insurance exchanges and new private coverage options spurred on by healthcare reform will create further challenges to employer efforts to engage employees as active consumers of healthcare services and participants in their own health management," says Levine.

Health insurance exchanges will be required by 2014. Earlier this year, California became the first to start the program.

In addition to improving wellness and investigating alternative health insurance options, consumers can also try to use health savings accounts to reduce their out-of-pocket expenses.  

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