Midsize companies did a better job this year than last year of controlling their medical costs, mainly because of a willingness to change the design of their health plans to obtain lower prices. Meanwhile, although the cost of self-insured plans rose this year, it increased less than it had on average in previous years.
Average cost increase 19% 18.4%
for medical plans
Average cost increase 13.7 14.3
for self-insured medical plans
Employers who have NA 23.2
redesigned health plansto control costs
Source: Survey of 57 companies, with an average of 1,000 employees, conducted by The Alexander Consulting Group, a national firm based in Lyndhurst, N.J.; 1990.