Current News & FAQs Save on RX (download pdf file) Information obtained from Medical Benefit Administrators Most employers to raise worker health contributions Among employers trying to handle the estimated 13.6% increase in health care costs predicted for 2002, more than half (56%) will raise employee contributions as much or more than the cost increases, and more than 71% are considering benefit reductions or copay increases. As costs continue to rise and the economy continues to sink, cost shifting is the predictable response, observe Watson Wyatt survey analysts. Employers also revealed that while cost-shifting will serve its purpose in the short-term, helping workers to become better educated as health care consumers will have long-term effects on reducing costs. In fact, 75% of employers said they plan to take this approach in the coming year. "The rapidly emerging Web capabilities hold the promise to promote consumerism and employee responsibility - an attempt to bring employees back into the picture in purchasing health care services," says Watson Wyatt practice director Maureen Cotter. Source: Benefitnews.com CONNECT Consumer site gives info on insurance complaints Brokers wishing to see whether an insurer company is in the good graces of consumers have a new online resource. The National Association of Insurance Commissioners' (NAIC) Consumer Protection Working Group has launched the Consumer Information Source (CIS), which allows visitors to find basic information on insurance companies, including assets, liabilities, licensing details and the dollar amount of premiums in force. The CIS also provides a link that allows consumers to file complaints with their state insurance divisions. Another link lets users examine the number and types of complaints filed in each state, as well as information on previously resolved complaints. The Consumer Information Source can be found at www.naic.org/servlet/cis.Main. Source: Benefitnews.com CONNECT What Does It Mean? Below are the definitions for common health insurance terms to help make the lingo easier to understand. POS - Point of Service is a health benefit plan providing coverage for both in and out-of-network benefits. To receive maximum in-network benefits similar to an HMO, the insured must choose a primary care physician. In order for the insured to see a specialist and again receive the maximum benefit, a referral must come from the primary care physician. Unlike an HMO, out-of-network benefits are available, allowing the insured to see any doctor they wish at a lower benefit percentage. U & C - Usual & Customary is a fee that a provider receives from a carrier for a particular procedure. These fees are in line with providers in a similar geographic location with similar training. OPX - An Out of Pocket Maximum is the total amount of deductible and coinsurance that the insured must pay within a calendar year before the insurance company will pay covered expenses at 100%. Stop Loss - A Stop Loss is a specific coinsurance amount of claims that must be met to determine the out-of-pocket maximum after which the insurance company will begin paying 100%. Census - A Census is a defining list an underwriter needs in order to prepare a proposal/quote for group insurance. The list must state the age of date of birth, gender, and type of coverage for each employee, i.e. employee, employee and spouse, or employee and child. Benefits comprise more than a third of payroll costs Employee benefits made up more than one-third of company payrolls in 1999, according to the latest data form the U.S. Chamber of Commerce. Of that portion, health insurance was the most expensive benefit. Benefits cost employers an additional 36.8% over wages in 1999, an average of more than $14,000 per employee, reports the Chamber's Employee Benefits Study. Medical insurance premiums were the priciest single benefit, eating up an average of $2,777 per employee, even more than the average per employee cost in payroll taxes, at $2,666. Paid time off - vacations, holidays and sick leave - accounted for about one-third of all benefits. Source: Benefitnews.com CONNECT Did you know that if food were health care……? The cost of various food products had they risen at medical inflation rates since the 1930s: 1 dozen of eggs $45.83 1 pound of apples $6.99 1 pound of sugar $7.83 1 roll of toilet paper $13.83 12 oranges $61.66 1 pound of bananas $9.17 1 pound of bacon $69.99 1 pound of beef $24.90 1 pound of coffee $36.67 1 pound of butter $58.33