How have employers dealt with rising healthcare costs over the years?

Dr. Michael Roizen, MD
Internal Medicine

Healthcare spending as a percent of GDP is more than three times what it was in 1960, and twice as a percent of GDP in 1980 when the winter Olympics were held in Lake Placid, NY. So the answer, unfortunately, is that employers have not dealt that well with rising healthcare costs. In fact, in 2002, 59% of employers increased the employee share of their premium and 23% offered a cash-out option for employees who wanted to kiss their coverage goodbye. 

However, the creation of health savings accounts and flexible spending accounts has helped.  These accounts give consumers like YOU more responsibility to pay for services, which hopefully means wiser choices and less superfluous spending.

In addition, employers are beginning to encourage disease management programs and prevention, so that doctors can identify diseases earlier and people can stay healthier (which means lower healthcare costs for YOU and your boss).

Finally, the Patient Protection and Affordable Care Act (aka ObamaCare) provides tax credits to small businesses, among many other provisions that will help employers and their employees (that means YOU) cope with rising healthcare costs.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.