Region’s employers’ health care costs still rising

In 2011, self-funded member employers in the Business Health Care Group (BHCG) experienced a 6.2-percent increase in employee medical costs compared with 2010.

The increase was lower than the overall southeastern Wisconsin market trend of 8 percent for the same period.
Over the past six years, the BHCG’s self-funded member employers have experienced an average annual increase in health care costs of 2.3 percent per health plan member when compared with 2005 base-year costs. Over the same six-year time frame, costs in southeastern Wisconsin have increased an average of 9 percent per year.  In the past six years, BHCG self-funded employers have saved approximately $577 million when compared with the overall regional market trend over the same period.
“Thanks to the collaborative effort and involvement of our employer members and provider partners, the BHCG has made remarkable progress in slowing health care cost increases for our members over the past six years,” said Dianne Kiehl, BHCG executive director. “While the data show that our efforts to get our members’ costs under control are working, there is still work to be done.  The BHCG must continue its efforts to push for accountability from both directions – from health care consumers and providers.”
The data was pulled from all of the BHCG’s self-funded employers’ 2011 claims activity. The year 2011 represented the sixth year the BHCG has offered its members exclusive access to the Humana Preferred health plan offerings.
BHCG members include some of the area’s largest and best-known employers, as well as hundreds of small and mid-sized employers.
“The BHCG’s ability to achieve substantial cost savings in conjunction with its ongoing commitment to health care consumerism and wellness have delivered considerable value to both our associates and our company,” said Paul Purcell, chief executive officer at Robert W. Baird & Co. Inc.
The Business Health Care Group is a membership organization of nearly 1,200 employers and employer groups in the 11-county region of southeastern Wisconsin.

 

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