Private Health Purchasing Practices in the Public Sector: A Comparison of State Employers and the Fortune 500

Topics:
Healthcare Services,
Insurance
Tags:
Benefits,
Enterprise Software,
Health Care,
Healthcare,
Human Resources,
Project HOPE,
Public Sector,
Software,
Vertical Industries
Source:
Project HOPE

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Overview: State governments are influential purchasers of health benefits but have not been studied extensively. This paper examines the extent to which states have followed the private-sector approach to purchasing health care. It found that states have adopted "Industrial Purchasing" practices similar to those of large private employers but offer greater choice of carriers and pay a higher percentage of premiums. Unions continue to influence health care purchasing in both the public and private sectors. Double-digit increases in health costs and the current budget crisis may force states to align their purchasing practices with the private sector to cut costs.

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Format: PDF | Size: 103KB | Date: Apr 2004 | Pages: 9

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