The front page of the Globe today (7/25/03) had an article about healthcare insurers raising premiums again, this time by an average of 16%. The article also mentioned how employers were taking steps to reduce the financial effect that these rising premiums had on their companies and their employees. My question is: Is MEDITECH looking into ways to lessen the effect that the rising cost of insurance premiums has on us, and on the company as a whole? Thank you.

Keith Ferguson
 

The rising cost of health care is a concern for us. It affects us directly in that the company pays 90% of the premium for health insurance (with each staff member paying the other 10%). It also affects us indirectly as our customers are financially squeezed by rising costs as well. We only have limited control over these costs, but we do what we can. The biggest thing that we do is to provide two different health care plans. The plans vary somewhat in benefits and coverage and thus gives you a choice. Additionally, and directly relevant to your question, the two plans actually compete for our business. They are quite aware of what percentage of MEDITECH's staff chooses one over the other and make efforts to get a bigger share. Some of this gets reflected in how they set their rates. Aside from this, when new rates are proposed we do negotiate with the plans to make sure there is maximum coverage for minimum cost. We currently do not believe that the charge levied on us and our staff is so high as to justify a cut in coverage to lower costs.

Howard Messing