Survey Reviews Employers' Healthcare Costs Aggressive Cost Containment Programs Helps Slow Rising Premiums The more aggressive companies are in their health care cost containment efforts, the more savings they can achieve.That is the conclusion of a long-term study of factors affecting health insurance costs. The study, which looked at activity over an 18-year period from December 1980 through September 1998, discovered that health care costs increased almost two times more than other employee benefits and more than three times faster than payrolls grew. The rate of increase fluctuated significantly, over the period, however. Health insurance costs gathered speed steadily from 1981-84. Then, rates increased more slowly from 1985-87 before ballooning again from 1988-92. Rates remained under control for much of the 1990s until another round of double digit increases started two years ago. "The study found that health care costs were most stable during periods of aggressive employer efforts to manage their health coverage costs," said Dr. David Rearick, chief medical officer for Coalition of America, an Atlantabased company that works with organizations to lower their health care costs. "After those measures started to work, managers relaxed those efforts and costs rose again.This study shows that containing health care costs requires an on-going, daily effort by corporate management:' The study, one of the most comprehensive reviews of corporate employee benefits
yet completed, shows that the share of employees whose health insurance premiums are wholly paid by employers has declined sharply since 1980. Of full-time workers in medium and large private establishments who participated in medical care plans, 3 I percent had individual coverage wholly financed by their employer in 1997, down from 72 percent in 1980.The comparative rates for family coverage were 20 percent in 1997 and 51 percent in 1980. "The study proves that employer cost containment efforts deliver results," Dr. Rearick said. "Those organizations that focus on innovation and cost management get a real return on those efforts:' Other cost containment strategies used, particularly by large employers, included accessing supplemental PPO networks to lower their out-of network managed care costs. Other factors that helped companies control costs include changing health plan design to heighten employer's control over the type or delivery of health care services, instituting major medical deductibles and coinsurance payments, and shifting to managed care programs or self-funded health plans. 'This effort has also given rise to defined contribution plans where employers designate a set amount for employee health care plans;' said Dr. Rearick. "Then, those employees choose the health care services they want and whether they want to pay for more benefits themselves."
Tim Newman to Head Center City Partners Nationwide Search Ends in Charlotte Area Tim Newman, vice president and general manager of the Charlotte Knights baseball team, has been named as the new president of Charlotte Center City Partners. A native of Eden, N.C., Newman, 37, had a career as an investment banker before joining the organization that owns the Knights five years ago. Krista Tillman , BeiiSouth's N.C. president and vice chair of the CCCP board, headed up the search committee to identify a new president. "We conducted a nationwide search," Tillman said. "We had more than 40 applicants, many of whom were extremely qualified. We found the perfect candidate right in our own neighborhood." Tim Newman
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She said Newman's proven track record as a consensus-builder will be vital in his role as head of Center City promotional organization. Our number one priority is business recruitment," Tillman said. "Center City Partners needs to be part of a team that includes the Charlotte Chamber and the Charlotte Regional Partnership to ensure that when we recruit a new company to this region, that company clearly understands it has an option to become part of our exciting Center City:' As general manager of the Knights, Newman was instrumental in significantly broadening both the sponsorship base and the fan support of the team. He also was point person on the effort to put together a publicprivate venture that would move the team from its current home in Fort Mill to a new stadium in South End, a goal that has not yet come to fruition . Newman replaces Rob Walsh who headed up CCCP for five years before leaving in February to return to his native New York City.
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