According to a survey released today by CSC (NYSE:CSC), entitled “Insuring the Future: Health Plans Respond to the Financial Crisis”, about 75 percent of health plan executives expect the current economic crisis to have a greater impact on their business than the 2001-2002 economic downturn.
While few of the health plan executives surveyed expect immediate changes in enrollment and membership levels in health plans, more than two-thirds expressed concern that continued rising unemployment would drastically affect their plan operations and profitability.
54 percent of health plan executives expect small group health plan and business health plan renewals to decrease. Large employers are expected to maintain their commitment to group health insurance coverage. Less than 31 percent expect a decrease in large group health plan renewals. However, almost three-quarters of plan executives foresee an increase in consumer-directed plans with higher deductibles and lower premiums as employers shift more of the cost to their employees. Nearly two-thirds expect an increase in government program enrollment as economic disruption and unemployment expand welfare participation.
The survey research was conducted in November of 2008. CSC interviewed 30 senior health plan executives that represented 26 different health plans. 83 percent of the participants hold C-level positions. To view the results report, visit go here.
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