Consumerism and Cost Shifting Lower Health Costs

Recent Fidelity Investment research shows total health care expenses will average $8,498 per employee this year, compared to $7,713 in 2003. It is averaged that workers will pay for nearly 29% of the total cost in 2004, up from 26% last year.

These alarming numbers are encouraging employers to modify their plan designs and contributions. According to Fidelity reports, these modifications are helping to alleviate up to 5.6% of increased health care costs.

“It’s becoming more apparent that employees are increasingly engaging and taking more responsibility when it comes to their health care benefits,” Brad Kilmer, Senior Vice President of Fidelity Health and Welfare Consulting says. Self service online tools, rising out of pocket costs, and increasing education efforts by employers are among the top factors contributing to the shift toward consumerism.