1. The Connecticut Economy CBIA Forum
Gus Gamache President and CEO
September 9, 2004

3. Employer Health Insurance Premium Increases*
15.5% *
Source: Kaiser Family Foundation
15.5% for small employers (under 200 employees)
13.2% for large employers

5. 10-Year Cost Trend Comparison to CPI
Ave. Premium Increases
Consumer Price Index

6. Factors Driving the Rising Cost of Health Care
Litigation and Risk Management
Other
General Inflation
Increased Consumer Demand
Drugs, Medical Devices and Other Medical Advances
Government Mandates and Regulation
Rising Provider Expenses
Source: PricewaterhouseCoopers, April 2002

8. Long Term Solutions
Reform the medical liability system to prevent frivolous medical lawsuits
Strive for uniformity of state and federal regulations
Make public the true costs of mandated regulation/legislation to promote greater accountability in the regulatory community
Empower consumers with data which discloses the true cost of health care services to promote responsible utilization and foster consumer driven healthcare
Offer tax incentives to promote broader access to health coverage
Address the uninsured by increasing enrollment in Medicaid and HUSKY.

10. Strategies for Employers
Incremental
Additional employee cost-sharing of premium
Explore alternative plan designs (higher copays and deductibles)
Encourage generic over brand-name drugs
Fundamental
Disease Management/Prevention
Promote consumer-driven health care
Offer Health Savings Accounts (HSA)
Empower employees to spend health care dollars wisely
Support CBIA Initiatives -- (i.e. Medical Malpractice Reform)

12. Conclusions There is “No Silver Bullet”
Despite cost issues, Americans have access to the best health care system in the world
The private sector (including insurance companies) can not solve this problem alone
Government must act to effect fundamental change
Get involved -- support CBIA’s legislative agenda
Collaborate with your health insurance plan to create health plan designs that are more affordable