BCBSA Statement: EBRI Report Says "Long-Term Access To Employer Health Benefits Is Stable"

Statement from Scott P. Serota, president and CEO, Blue Cross and Blue Shield Association

December 7, 2007

WASHINGTON - Scott P. Serota, president and chief executive officer of the Blue Cross and Blue Shield Association (BCBSA), released the following statement in response to the new study by the Employee Benefits Research Institute (EBRI):  "The Future of Employment-Based Health Benefits:  Have Employers Reached a Tipping Point."

"The new study released by EBRI supports the position of the Blue Cross and Blue Shield system that - for numerous reasons - the employer based system should be preserved as the foundation for assuring that all Americans have health insurance.

"Contrary to the perception that the employer-based health insurance system is in decline, the EBRI report demonstrates that the employer community, overall, continues to provide a high level of health insurance coverage for their workers.  The report found that in 2005, 74 percent of employees were eligible for healthcare benefits through their own job, up slightly from 73.6 percent in 1995.  Moreover, workers are responsible for a slightly lower percentage of their own premiums now than in 1993 (16 percent today versus 20 percent).
 
"During the last decade, the percentage paid for family coverage has been fairly stable as well, ranging from 26 percent to 28 percent of premiums.  Even among moderate size employers with less than 200 employees, 59 percent continue to offer coverage - identical to the percentage that offered coverage over a decade ago in 1996.

"The EBRI study also references several benefits of the close link between employers and health coverage.  Today's employers are at the forefront of quality and value initiatives, investing in resources to strengthen and improve the health of their workers.  Large employers also cited the "business case" for offering health benefits to their employees - including the positive effect on the bottom line through its impact on employee health status, productivity and the ability to recruit and retain workers in a competitive labor market.

"While the report indicates that private consumer out-of-pocket healthcare expenditures as a percentage of total expenditures are at an all time low - 26 percent in 2005 versus 30 percent in the mid 1990's - it also shows that the total cost of healthcare is rapidly rising.

"BCBSA will be releasing a proposal in the coming weeks that lays out detailed recommendations to address the underlying problems of today's healthcare system, including the cost and quality of health care and the need to make sure that all Americans have health insurance.

"While new initiatives are needed to assure people not covered by their employer have health insurance, the employer sponsored health insurance system is helping to provide affordable coverage to more than 160 million Americans today, without the need for new government entities or an expansive new subsidy structure.  We are committed to advocating ways to bolster the employer based system - making sure employers can continue to provide benefits - and finding ways to improve the value and quality of our healthcare system as a whole.  We must improve quality and attack costs to advance real health care reform and extend coverage to all Americans."