Keenan 2010 Health Care Benefits Strategy Survey Profiles Challenges and Responses From California Organizations Representing 231 Hospitals

TORRANCE, Calif., Jan. 18, 2011 /PRNewswire/ -- Keenan, the largest privately held insurance brokerage and consulting firm in California, has released its findings of its 2010 Health Care Benefits Strategy Survey. This annual survey has become benchmark research for the health care industry in California, with implications for the sector nationwide.

The 2010 Keenan Health Care Benefits Strategy Survey provides CEOs, human resources executives, benefit managers and others with a wealth of industry specific information to assist them in their 2011-2012 benefit program planning. Ninety-four California health care organizations participated in this year's survey, representing 231 hospitals.

The challenge of managing costs continues to be critical as a result of the difficult economic environment, with California health care organizations affected by state budget issues and local economic conditions. In addition, these organizations are entering a new, post-Health Care Reform era, which impacts them as both providers and employers. As a result, human resources benefit managers are feeling significant pressure to reduce benefit costs.

"More than one-third of health care organizations expect health insurance increases they are not able to absorb in the coming year," according to Steve Richter, senior vice president of Keenan HealthCare and project leader on the survey. "At the same time, hospitals are finding it difficult to grow revenues, due to the reductions in government health care reimbursements, reduced elective admissions and increased uncompensated care. They have difficult challenges, and they require creative solutions that will work within the limitations of budget constraints, staffing requirements and labor relations."

The study addresses aspects of current medical programs including product mix, financing, medical plan design, eligibility, and retiree medical coverage. Strategy issues covered are health care reform, physician alignment, effective wellness programs, benefit program changes and anticipated 2011-2012 strategies. The study also included dental, time-off and disability benefits as well as retirement income and voluntary benefits.

Rising medical benefit costs remain the most significant challenge confronting health care organizations in managing their overall benefit program. The average 2010 cost increase ranges from 9% for EPO, HMO and PPO programs, to 11% for POS programs. Annual medical benefit cost per covered employee in 2010 is $9,936.

To address benefit cost issues, organizations are looking to a variety of approaches, including:

• Accepting risk on a self-funded basis
• Improving the health risk profiles of their employees
• Increasing the cost borne by employees
• Channeling employee care back to their own facilities
• Increasing employee appreciation of the benefits they already have
• Increasing the scope of the medical management program

For information on Keenan insurance brokerage and consulting programs, visit www.keenan.com. For a copy of the Executive Summary of the 2010 Health Care Benefits Strategy Survey, please send a request to [email protected].

About Keenan

Founded in 1972, Keenan is globally ranked as the 18th largest insurance consulting and brokerage firm and the largest independent broker in California.  Keenan is dedicated to providing superior insurance products and services to healthcare organizations, schools, community colleges, and municipalities for employee benefits, third-party claims administration, workers' compensation, integrated disability, risk management, and property and liability.  With headquarters in Torrance, CA, Keenan has a staff of more than 650 insurance specialists and branch offices in Riverside, San Clemente, Westlake Village, Oakland, San Jose, Rancho Cordova, Redwood City, Pleasanton and Eureka.  For more information, call 800-654-8102 or 310-212-3344, email [email protected], or visit www.keenan.com.

SOURCE Keenan