This Week's Herman Trend Alert Navigating the Next Year

The Herman Trend Alert May 30, 2007 Healthcare Costs Out of Control While the cost of living in the United States rose by a mere 3.3 percent, healthcare costs for an average US family of four increased by 8.4 percent from 2006 to 2007. The good news is, as we forecast last year, the increase has slowed a bit, though most would agree, not enough. (Herman Trend Alert from 6/28/06) This reduction is a welcome slowing from the 9.3 percent average annual rate of increase between 2003 and 2007. According to the third annual Milliman Medical Index (MMI), the average healthcare cost for a typical family of four in the United is now $14,500 for the year 2007. This amount represents an increase of $1,118 over the preceding year. The MMI, released for the third year in a row, tracks the changes in average yearly healthcare costs for a family of four covered by an employer-sponsored Preferred Provider Organization (PPO). It is based on analysis of historical claim data and understanding of trends in provider contracting. Milliman is one of the leading global consulting and actuarial firms. In 2007, based on a typical PPO plan design, the member cost out of their own pocket at the time of service for the typical American family of four would be $2,420, an average increase of $210 over last year. "The cost of healthcare varies significantly by metropolitan area," said study co-author Lorraine Mayne, a principal with Milliman. "This could have implications for any national healthcare reform proposals that utilize a standard nationwide tax deduction," she continues. The number, type, and cost of healthcare services that the family utilizes, along with the amounts that the employee’s health plan pays medical providers for these services, determine their medical costs. Utilization of medical services for a particular family varies significantly based on the family members’ ages, geographic area, health status and other factors. These increases are not confined to the US. They are global. In Scotland, Switzerland, and even South America, we have seen significant escalations in healthcare costs. As the Baby Boomers age, we expect greater rises in healthcare costs and more stress on employers worldwide and their bottom lines. © Copyright 1998-2008 by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Roger Herman and Joyce Gioia, Strategic Business Futurists. (800) 227-3566 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group, Inc." RESOLVE TO ADDRESS EMPLOYEE TURNOVER IN 2009 If you knew just how much money turnover is costing your company, you would have handled it ages ago! Turnover costs A LOT and it comes right off the bottom line. Let The Herman Group and its team of very experienced consultants help you address your turnover issues right away. We have an impressive track record and stand ready to help you. Call Carol at 800-227-3566; international, call 336-210-3547 for a no-obligation conference call. EMPLOYEE RETENTION BEGINS WITH GOOD SELECTION If you are not using pre-employment assessments, you are flying without radar---not very smart in today's highly competitive environment. Let us help you better understand your candidates and your employees. In less than 30 minutes, you will know if they can do the job (abilities); their work behaviors, even their personality and attitudes (like integrity & ethics), and those can't be trained. It's very cost effective, too! For more information, contact Joyce at 336-210-3548 or e-mail assessments@hermangroup.com. Validated for many countries and cultures. We offer in-depth help with job descriptions, too! GET INSIDE THE MINDS OF YOUR EMPLOYEES Find out what's really going on inside the hearts and minds of your employees. Our InnerViews interviewing service uses SPHRs and PHRs, certified human resource professionals to probe for the information you really need to know. Exit and Stay Interviews, as well as Why-Didn't-You-Take-Our-Offer Interviews. Call Rosalie Catalano at 937-648-1918 or read more at: http://www.hermangroup.com/retentionconnection/exit_interviews.html. To read this Herman Trend Alert on the web: http://www.hermangroup.com/alert/archive_9-24-2008.html. Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers. New subscribers are welcome. There is no charge for this public service. The Herman Trend Alert is received by over 30,000 subscribers in 78 countries, in addition to other websites and printed magazines. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Trend Alert service. Click here to sign up for the Herman Trend Alert. Subscribe or Unsubscribe to weekly Herman Trend Alert View this week's Herman Trend Alert Archived Weekly Herman Trend Alerts

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