Corporate healthcare costs are continuing to escalate at a rate well ahead of inflation and increasing numbers of companies are attempting to reduce costs by introducing an excess.
This is according to a survey of nearly 700 companies, carried out by Aon Health Solutions. It found that 47% of respondents reported private medical insurance (PMI) inflation rates of 6% or more in 2001.
The survey found little change in PMI service standards compared to the previous year and CICNA topped the service league table again. Royal and Sun Alliance has increased its market share to 9% but BUPA and PPP Healthcare still dominate the market.
Aon's executive director of consulting services Adrian Fisher said: "Employers continue to perceive healthcare benefits as valuable, despite increasing costs. It is still the case that the majority of employers we surveyed say that their primary motive for purchasing PMI is to get their
staff back to work quickly but the value of PMI as part of an overall benefits package is definitely increasing."
