Analysis of a corporation’s health care experience

Implications for cost containment and disease prevention

Edward J. Bemacki, Shan P. Tsai, Susan Miller Reedy

Research output: Contribution to journalArticle

Abstract

This article presents the health care experience of 14,162 employees and their families, covered under a private third- party insurance plan of a large multinational corporation for the 1984 policy year. A total of $29.5 million was charged by health care providers to deliver medical care for the studied employees and their families. This amounted to $2,083 per employee and his/her family. Approximately 51% of the employees submitted claims, with females having greater utilization than males. The highest expenditures were for diseases of the circulatory system among adults (3.2 million or 23% for employees, $1.5 million or 14% for spouses). Among employees, neoplasms accounted for $1.4 million or 10% of costs, and musculoskeletal system $1.2 million or 9% of costs. Among spouses, pregnancy and diseases of the female reproductive system accounted for $1.2 million (12%) and $1.1 million (10%), respectively. Among dependents, the top three cost categories were mental disorders ($1.2 million or 24%), accident-related illnesses ($0.7 million or 14%), and diseases of the respiratory system ($0.6 million or 12%). Hospital care expenditures, including room and board, ancillary, and physician services, accounted for approximately 60% of total health care spending. The percentage of health care costs paid for by this insurance plan was 75% for active employees, 34% for retirees, 60% for female spouses, 38% for male spouses, and 64% for dependents. The analyses and parameters measured can be viewed as the first step toward the development of a health care cost containment and disease prevention strategy.

Original languageEnglish (US)
Pages (from-to)502-508
Number of pages7
JournalJournal of Occupational Medicine
Volume28
Issue number7
StatePublished - 1986
Externally publishedYes

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Cost of Illness
Cost Control
Spouses
Delivery of Health Care
Health Expenditures
Insurance
Costs and Cost Analysis
Health Care Costs
Musculoskeletal System
Cardiovascular System
Mental Disorders
Health Personnel
Respiratory System
Accidents
Physicians
Pregnancy
Neoplasms

ASJC Scopus subject areas

  • Public Health, Environmental and Occupational Health

Cite this

Analysis of a corporation’s health care experience : Implications for cost containment and disease prevention. / Bemacki, Edward J.; Tsai, Shan P.; Miller Reedy, Susan.

In: Journal of Occupational Medicine, Vol. 28, No. 7, 1986, p. 502-508.

Research output: Contribution to journalArticle

Bemacki, Edward J. ; Tsai, Shan P. ; Miller Reedy, Susan. / Analysis of a corporation’s health care experience : Implications for cost containment and disease prevention. In: Journal of Occupational Medicine. 1986 ; Vol. 28, No. 7. pp. 502-508.
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