U.S. Workers Taking Steps to Lower Medical Costs, Watson Wyatt Survey Finds
December 10 2008 - 1:03PM
PR Newswire (US)
Significant Drop in Number of Employees Willing to Pay Higher
Premiums to Keep Out-of-Pocket Costs Low WASHINGTON, Dec. 10
/PRNewswire-FirstCall/ -- In the midst of an economic crisis,
rising health costs are leading an increasing number of U.S.
workers to take steps to reduce their own spending on medical care,
according to a survey by Watson Wyatt, a leading global consulting
firm. With more workers suffering financially during this open
enrollment period, a significantly lower number of employees (19
percent) are willing to pay higher premiums in order to keep
deductibles and co-pays lower and more predictable. Last year,
twice as many (38 percent) were willing to do so. In addition,
two-thirds (66 percent) of employees are taking steps to improve
personal care, up four percentage points from 2007, according to
Watson Wyatt's Employee Perspectives on Health Care, a survey of
2,487 employees of large U.S. companies conducted in May and June
2008. "Workers will continue to look for avenues to save money in
tight times," said Cathy Tripp, national leader of consumerism at
Watson Wyatt. "In the current financial climate, employers stand to
gain from reinforcing messages on preventive care, wellness
resources and the importance of following prescribed drug regimens.
There are a number of behaviors that, if embraced today, will lead
to substantial health cost savings in the long term." Yet, despite
the opportunity to save money, the survey found that some workers
are taking actions that could lead to higher costs in the future.
For instance, the survey found that 17 percent avoided a
recommended doctor's visit this year to save costs. Similarly, 17
percent did not fill a prescription or skipped doses of prescribed
medicine, an increase from 13 percent in 2007. On the other hand,
nearly half (46 percent) of employees choose lower-cost drug
options, and 40 percent go to the doctor only for serious
conditions. Both represent increases from last year. While a
relatively low number of employees are seeking more affordable
treatment options (14 percent), looking for inexpensive care
providers (8 percent) or negotiating lower prices with their doctor
(2 percent), each cost-saving measure is trending up from 2007.
Steps employees are taking to reduce spending on medical care
Action Taken in Taken in 2007 (%) 2008 (%) Tried to improve
personal care 61% 66% Chose a lower-cost drug option 42% 46%
Visited the doctor only for serious condition/symptom 35% 40% Saved
money in an account used only for medical expenses 15% 20% Skipped
a recommended doctor's visit NA 17% Did not fill a prescription or
skipped doses of prescribed medicine 13% 17% Used company-sponsored
wellness programs NA 16% Talked with my doctor about seeking more
affordable treatments 9% 14% Looked for less expensive health care
4% 8% Negotiated lower prices with my doctor 1% 2% Note: Some
questions were new in 2008 The economy and higher health costs are
taking a toll on the long-term financial security of many workers.
This year, health costs are forcing many employees to decrease
their retirement savings plan contributions (13 percent), and a
fifth of workers (20 percent) indicate that their ability to save
for retirement is reduced because of health costs. Also, more
workers acknowledge difficulty paying for basic needs (15 percent
in 2008 compared to 10 percent last year), depleted personal
savings (11 percent in 2008 compared to 6 percent in 2007) or
needing to borrow money (10 percent in 2008 compared to 5 percent
in 2007). For employees in fair or worse health the impact is even
more significant. "The health-wealth connection is more clear than
ever, as pressures from high health costs continue to pose
challenges to both companies and employees," said Tripp. "Open
communication and clear, concise educational tools are effective
ways to help employees realize the many steps they can take to
manage costs without compromising care." To view the 2008 "Employee
Perspectives on Health Care" report, visit
http://www.watsonwyatt.com/employeeperspectives. About Watson Wyatt
Worldwide Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business
partner to the world's leading organizations on people and
financial issues. The firm's global services include: managing the
cost and effectiveness of employee benefit programs; developing
attraction, retention and reward strategies; advising pension plan
sponsors and other institutions on optimal investment strategies;
providing strategic and financial advice to insurance and financial
services companies; and delivering related technology, outsourcing
and data services. Watson Wyatt has 7,600 associates in 32
countries and is located on the Web at http://www.watsonwyatt.com/.
DATASOURCE: Watson Wyatt Worldwide CONTACT: Ed Emerman for Watson
Wyatt, +1-609-275-5162, ; or Steve Arnoff of Watson Wyatt,
+1-703-258-7634, Web Site: http://www.watsonwyatt.com/
http://www.watsonwyatt.com/employeeperspectives
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