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Health Insurance: Management Strategies Used by Large Employers to Control Costs

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Report Type Reports and Testimonies
Report Date May 6, 1997
Report No. HEHS-97-71
Subject
Summary:

After years of double-digit increases in the cost of employee health insurance, the nation's larger firms, employer coalitions, and even state governments began to aggressively rein in these costs in the 1990s. The recent downturn in health insurance premium growth, during which some large employers actually saw premium declines, is partly attributable to these efforts. Spending pressures in public programs, such as Medicare and Medicaid, also slowed, although not as markedly as for most private purchasers. This report examines the strategies that large purchasers have tried to stem the rapid escalation of health insurance costs while maintaining or enhancing the quality of care for their employees.

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