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Humana Inc. Message Board

  • friend_of_the_deceased friend_of_the_deceased Mar 9, 2000 12:41 PM Flag

    wsj blurb

    HEALTH-CARE costs rise, but hospitals may not be
    the main culprit.

    Employers say their
    health-care costs will rise 9.7% in 2000, up from 7.5% in
    both 1999 and 1998, according to a study from Watson
    Wyatt Worldwide, Bethesda, Md., and two other groups.
    But the study adds that health-care providers like
    hospitals say their fees will rise only 3%. Why the
    disparity? Watson Wyatt says it is due to more use of
    services; high cost of drugs, which are accounted for
    separately; and a move by insurers to improve their bottom
    lines by passing on costs, rather than absorbing them
    to gain market share.

    Guess who will pay? The
    study says 70% of employers plan to pass some of the
    costs on to employees. Companies also plan to negotiate
    more with insurers and to help workers better match
    plans with needs. The study, done with the Washington
    Business Group on Health and the Healthcare Financial
    Management Association, Westchester, Ill., covered 503
    employers, 953 providers and 69 big health plans.

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