Controlling Benefit Costs

Navigating the Minefield of Health Care Cost Increases & Reform
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These days, health care may seem like a minefield of cost increases and reform regulations. How can you control your costs without cutting benefits?

Many organizations saw double-digit increases in health care costs in 2011. Unless you take action, this may also be the case in 2012. Health care reform is driving some of this increase by shifting risk (unlimited lifetime and annual maximums) and costs (requirement to cover children to age 26 and Medicare cost-shifting) to employer-sponsored health plans.

MCG follows a step-by-step approach to cost control. First we consider the components of your premiums and then we consider potential avenues or tactics that are applicable to your organization. Instead of using traditional, cost-shifting options (such as increasing employee contributions, deductibles, or out-of-pocket levels) we use strategies to restructure health plans to lower costs and maintain high quality of care.

MCG’s clients have had average annual health care cost increases of 5.9% since 2000 – about ½ the national average. We work with employers throughout the U.S. to develop, implement, and manage health and welfare benefit cost control strategies.

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