On March 11, Towers Watson and the National Business Group on Health (NBGH) released the results of their 2010 Employer Survey on Purchasing Value in Health Care.  The survey found that, after increasing 6 percent in 2008 and 7 percent in 2009, health care costs are expected to increase an average of 6.5 percent in 2010.  However, the survey also found that some employers have successfully held four-year cost growth to 2.1 percent.  In addition, Towers estimates that employees’ share of premiums will increase from 20 percent in 2009 to 21 percent in 2010.  Towers found that 83 percent of employers have changed or plan to change their strategy to pursue health and productivity program offerings and an increasing number of employers are considering imposing stricter requirements on plan members receiving financial incentives based on utilization of health promotion programs.

From the report: The most successful companies are building a record of consistent performance that uses a combination of tactics — appropriate financial incentives, effective communication, health and productivity programs, metrics and initiatives to improve quality — to hold the line on cost increases while engaging employees to improve their health habits. The health plan strategies set by these consistent performers offer valuable guidance as companies wrestle with year-after-year higher health care costs at a time when they can least afford it.

Full report: Raising the Bar on Health Care: Moving Beyond Incremental Change (PDF | 1.48 MB)

National Business Group on Health and Towers Watson.  (2010).  Raising the bar on health care: moving beyond incremental change.