Shrink mental health care costs

Article Abstract:

The use and cost of employee mental health care benefits is going up, but employers can implement cost containment and care optimization strategies. A 1986 report on direct costs of mental health treatment showed expenses of $24 billion, with $29 billion additional in indirect employer costs. Seven to 15 percent of health care benefit dollars are spent on mental health treatment, with spending growing as much as 20 percent yearly. Factors behind such increases include greater acceptance of psychotherapy, open-ended treatment, inability to predict treatment end points, a wider variety of treatment professionals, and benefit plans that encourage costly treatment. A comprehensive cost-containment approach includes: tailoring plans to regional care differences, analysis of employees' past care levels, treatment pre-certification, tailoring benefits to treatment needs, and educating the mental health community.

Mental health benefits

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Why health care costs so much

Article Abstract:

It is estimated that health care expenditures in the US will exceed $550 billion in 1988. A survey of corporate and governmental employers conducted by a New York consulting firm found that employers' health care costs increased an average of 7.7 percent in 1986 and 7.9 percent in 1987. The factors that have contributed to the increases in health care include: the increasing age of the work force, the increased number of medical services, and lack of strategic planning to control health care costs. Steps that employers are taking to manage health care costs more efficiently include health care certification procedures, using higher deductibles, and making changes in the delivery of health care services. A significant factor in rising medical costs is excessive employee use of health benefits; employee education may be a decisive factor in reducing health care costs for employers.

Analysis, Occupational health services

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Control health care costs

Article Abstract:

Containing health care costs has become an increasingly important priority for corporations. Three options for containing health care costs that are becomingly popular with employers are: health maintenance organizations, preferred provider organizations, and alternative delivery systems. The use of these options is increasing among employers, but the majority of employees still favor traditional indemnity plans.

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