Quality Initiatives – Cost Containment Strategies for Purchasers – July 2002

Purchasers of health care in the United States are in the midst of surging health insurance premium increases. In 2001, premiums increased an average of 11%. In 2002, they are expected to increase another 12-14%; and this upward trend is expected to continue. Medical advances, increasing utilization and cost of prescription drugs, and rising consumer demand are among the reasons cited for such increases. Purchasers can use traditional methods to try to contain costs, and might also take bold steps – using “quality measures” – in price negotiations.