Containing Health Care Costs

Shayne C. Kavanagh

As employee health-care benefits continue to rise, employers face the relentless problem of finding extra money to fund them. This paper provides six leverage points -- changing the level of benefits provided, managing participants’ choice of providers, sharing the cost with employees, reducing employees' use of health care services, "right-sourcing" health benefit services, and maximizing the value received for the health care dollar -- along with specific strategies that public employers can use to manage and contain the cost of employee health-care benefits. The best option for any given employer varies with size, the political environment, and the needs of employees; however, governments across the United States have demonstrated positive results using various combinations.

Government Finance Officers Association and Colonial Life