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As Employers and Insurers Seek Solutions to Contain Healthcare Costs, Premiums, Deductibles and Co-Pays to Increase

Posted on: Wednesday, 3 September 2008, 12:00 CDT

The Zitter Group (TZG; www.zitter.com), the leading developer of strategic solutions for managed markets and The Center for Health Value Innovation (www.vbhealth.org), the nation's premier organization dedicated to establishing value and producing evidence for sustainable health and financial improvement, are sending out an industry-wide call for better evidence documenting the downstream effects of increased patient cost-sharing. Recent research conducted by TZG shows that despite accumulating evidence that cost-shifting leads both to undesirable health and cost consequences and has largely failed to slow healthcare cost growth, employers and insurers will continue to rely on it as their primary cost containment strategy.

Based on primary research with over 100 decision-makers from commercial health plans and 100 employers in the U.S., TZG's Spring 2008 Benefit Design Index provides a comprehensive analysis of the drivers of benefit design decisions. The inaugural edition of The Benefit Design Index shows that cost represents the top priority for both groups, followed distantly by access and quality. The TZG index findings will be presented at upcoming conferences in value-based design co-branded by The Center and World Congress, October 15, 2008, Philadelphia, PA; October 28, 2008, Atlanta, GA. http://www.worldcongress.com/events/HL08012/index.cfm?ConfCode=HL08012 http://www.worldcongress.com/events/HL08021/index.cfm?ConfCode=HL08021

"Surprisingly, insurers and employers are much more in agreement than previously thought," said Tom Baker, senior vice president at TZG, who led this recent study. "Despite evidence regarding the negative consequences of increasing patient cost-sharing, both groups agree that patient shares of premiums, deductibles and drug co-pays will continue to go up."

The results from The Benefit Design Index show that neither insurers nor employers seem to believe previous studies linking increased patient cost sharing and poor health outcomes. In the absence of hard evidence of this link, insurers and employers will continue to cooperate on raising the portion of premiums, deductibles and co-pays paid by patients.

Cyndy Nayer, president of The Center, agrees that the issue is the need for more evidence showing the downstream effects of patient cost sharing upon health status: "Without better evidence, neither insurers nor employers have a reason to change the current system. At the Center, we are dedicated to driving true change. Let's move away from the current insurance model that has proven to actually drive costs. We need to create incentives for health and refocus on the value of the health resources. That's why we are calling for more evidence that health care delivers improved health and reduced inflation."

About The Zitter Group

The Zitter Group (TZG) is the leading developer of strategic solutions for managed markets that secure, establish, and maintain essential links between brand goals and the economic needs of business decision-makers. Founded in 1989, TZG helps pharmaceutical, biotechnology, and medical device companies work more effectively within managed markets. TZG is the premier firm in the insurers segment because of its extensive experience, rich analytic capabilities, and commitment to the highest level of service. Visit www.zitter.com.

About The Center for Health Value Innovation:

Launched in 2007, The Center for Health Value Innovation is a not-for-profit (501c3) organization representing industry stakeholders committed to sharing the evidence that value-based health designs improve health status and reduce health cost inflation. Visit www.vbhealth.org.

Source: Business Wire

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