Venture Capital Asset Protection (VCAP)（三）.pptVIP

Benefit Trends: Evaluating Consumer-Based Models Presented By: Christopher J. DeLorey President Telamon Insurance Financial Network cdelorey@ 617-614-1215 Key Points Factors driving trends Employer options Employee perspective Consumer Driven Health Plans (CDHP) What’s next? Factors Driving Trends Rising Health Insurance Costs The national average for medical plan rate increases is 15% to 20% These increases are driving employers to look for solutions Fueling interest in consumer models Factors Driving Trends Health Care Cost Drivers: Skyrocketing Rx costs Rising hospital and physician costs Advances in technology Increase in chronic conditions Increased utilization Aging population Lack of consumer involvement in purchase Factors Driving Trends In 1960, consumers paid for 50% of health care costs In 2003, they pay for only 15% Consumers don’t know the true costs of health care Factors Driving Trends Entitlement Perspective in America Corporations are bottomless pits Unrestrained desires Employees are unaware of the actual costs “Want it All” for a $10 co-pay Employer Options Medical Cost Outlook Impossible for employer to pay for all the future drug/medical technology and services desired by employees Employers have a few options: Drop coverage Absorb the cost Pass on the premium increase to employees Reduce coverage Offer a consumer-based model Employer Options Moving Toward Consumer Models Determine level of medical benefits needed to recruit/retain employees Provide a menu of group medical options Set employer subsidies based on efficient plans or base year subsidy level Encourage employees to select efficient medical plans Motivate employees to “own” their personal health status Facilitate employee use of pre-tax flexible spending accounts Employee Perspective Educate them on health care costs Educate them on products Provide them tools Employee Perspective Are Your Employees Ready for Consumerism? 87% of employees confident in choosing a heal