Publication

California Employers and Consumers Respond to Changing Health Benefits

Harris Interactive

In 2004, as health care costs continued a pattern of double-digit annual increases, employers and consumers alike felt the effects, according to surveys conducted by Harris Interactive of California employers, consumers, and those with chronic illness.

Employers said that they felt costs were more under control in 2004 than they were two years prior, but increasingly were concerned about the negative consequences of employee cost-sharing measures. Not surprisingly, consumers were less satisfied with their health benefits than they were two years prior and were particularly worried about not being able to pay for the portion of health care services that must come out of their own pocket. Also, a significant percentage of people with chronic illnesses, particularly those with lower incomes and poorer health, reported having problems paying their medical bills. Some are skipping recommended care as a way of controlling costs.

In an examination of the effects of changing health care benefits and cost control strategies on these groups, the survey results offer insights on:

• Actions taken by employers to control costs;
• Anticipated changes to retiree health benefits;
• Responses by consumers to increased costs;
• Health benefit changes experienced by those with chronic conditions;
• Response of the chronically ill to higher out of pocket costs; and
• Consumer attitudes toward and use of quality of care ratings.

The survey findings are summarized in two reports: Health Care in California: Perspectives from Employers and Consumers and California’s Chronically Ill: Coping with Rising Health Care Costs. The reports are available under Document Downloads below.

Note: In addition to the 2004 reports, two issue briefs published in 2003 provide additional perspective on these issues.