| Welcome to Baltimore County's Health Care News page. Articles of interest regarding the funding and delivery of health care benefits will be posted here and updated on a regular basis. In addition, changes to County benefit plans as a result of state and federal legislative actions or other causes will appear here first. You are encouraged to visit this feature of the Employee Benefits web page often. A scan of newspapers and the information on the web confirms that Baltimore County is not alone in the struggle to find answers to the health care cost crisis. In particular, private sector employers are struggling with the cost of providing health benefits for their retirees and recent changes to Government Accounting Standards will bring that struggle to public employers in 2007.
When Bruce Hardy’s kidney cancer spread to his lung, his doctor recommended an expensive new pill from Pfizer. Mr. Hardy is British, and the British health authorities refused to buy the medicine because it was too expensive and it would only delay the progression of his cancer for six months. Skyrocketing health care prices have led other countries to follow Britain's example by asking how much life is worth. From the New York Times, December 2, 2008 It has become common practice for manufacturers of pharmaceuticals to recruit doctors to promote the advantages of their drug to their peers. This article details how one psychiatrist was recruited, trained and then promoted a particular depression drug to his peers. In return for his talks with other psychiatrists, this doctor earned significant fees from the manufacturer of the drug he was promoting. Is this ethical? From the New York Times, November 25, 2007 Starting next year, employees and their dependents who are smokers could pay their employer a monthly fee of $100 a month if they are smokers. They could also be facing a $75 a month fee to include dependents on their plan who have access to other health coverage through another employer. The parent company of the Baltimore Sun has seen health care cost increases of 10% or more in each of the past several years. As employer costs continue to rise, many employers are putting more emphasis on employee responsibility for maintaining good health. From the Baltimore Sun October 19, 2007 According to CFO.com, the accounting standard known as GASB 45 will force public sector employers to recognize the cost of the health and life insurance benefits promised to their current employees and retirees in future years on their balance sheets. Known as OPEB (Other Post-Employment Benefits), the total liability figures for public employers will vary depending on their size and the benefits promised. Examples of some employers unfunded OPEB liabilities are $53 billion for the City of New York and $22.9 billion for the State of Maryland. Although the accounting standard does not at this time require a public employer to fund these liabilities, the staggering amounts being estimated by actuaries cannot be ignored without jeopardy to the financial standing and health of many employers. From CFO.com May 16, 2007 A recent USA Today poll found that Americans are increasingly concerned about the rising cost of health care, confused about what is causing the increasingly high costs and open to reform of the U.S. Health System. But while a majority of respondents say they would support a universal system, support dropped to one-third or less if a universal system included restrictions on doctors or the treatments they could have or if it cost more than they're now paying in the form of a tax increase. A major driver of increased cost is how rapidly Americans embrace new drugs and technology but only a quarter of those surveyed identified this as a culprit in the rising cost picture. A similar number (only 29 percent) cited Americans' unhealthy lifestyles as contributing to the escalating costs. From USA Today October 16, 2006. As the population in America crosses the 300 million mark, the most striking trend will be the aging of the population. By 2030 nearly 1 in 5 Americans will be 65 or older. The pool of workers age 35-54 is sharply declining while companies are increasingly phasing out old pension plans. Those two forces mean people will be working longer. The large number of Baby Boomers with who are living longer will mean higher health care costs for a longer period of time. When nearly 20 percent of the population will be collecting Social Security there will be fewer working age people to contribute to that fund through payroll taxes. Even planning for cities and transportation will be impacted as Baby Boomers caring for the older parents recognize how choices made for retirement communities have a significant effect on retiree quality of life. From CNNMoney.com October 13, 2006. www.benefitslink.com—select the "Past 48 Hours" button for the latest benefit news - updated daily www.ebri.org/whatsnew/ According to financial planners the typical retirement age is 63 for men and 62 for women. working just 2 to 3 additional years could have a significant impact on your financial fitness when you retire. http://www.nihcm.org—web site for the National Institute for Health Care Management. Clearinghouse for information on current health care issues. Produces periodic research reports. http://www.washingtonpost.com/wp-dyn/health/index.html—Health section of the Washington Post - also contains recent news regarding health care research and the delivery and funding of health care in the US If you have found other articles or sites about health care benefits issues or want to comment on the information at this site, please e-mail the County Insurance Division at bcbenefits@baltimorecountymd.gov Revised June 15, 2009 | 
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