GOOD DIRECTIONS Boeing health care costs still rising, but at a slower rate than expected By Randy Liss Four years ago, Boeing’s health care costs were like those at many large companies across the United States—soaring like an airliner just after takeoff. Projections showed the average health care cost per active Boeing employee climbing 7 to 8 percent annually for a total of 24 percent through 2014, with no slowdown in sight. The sky, it seemed, was the limit—and not in a good way. Today, those costs are indeed rising—but at a slower rate than had been projected in 2010, according to Tony Parasida, senior vice president, Human Resources and Administration. The average health care cost per active employee has grown about 5 percent annually, for a projected total of about 17 percent through 2014. This deceleration is most evident when comparing projections for 2013 to actual totals for the year, he said. Four years ago, health care was expected to cost the company $15,177 per employee in 2013. The actual cost: $13,622, more than 11 percent less than predicted in 2010. This trend is expected to continue, Parasida said, with health care costs projected to decrease by 1 percent through September 2014. “This is obviously good news for the company and our employees that shows real progress in our efforts to contain health care costs,” Parasida said. “Despite this success, the reality is that costs still are rising. So we’re continuing to look at ways to reduce them while still offering affordable, market-leading health care benefits to employees.” Company leaders believe that controlling what Boeing spends on health care is essential to sustaining its ability to invest in new products and services, price them to be successful against competitors’, create new job opportunities for employees, and attract and retain world-class talent. They’re also finding that reducing health care costs is good for business—and for employees, Parasida said. For example, the company’s Well Being programs have combined with the new “Go for Zero” initiative to establish a safe and healthy environment across the enterprise, a culture that can lead to increased employee productivity, Parasida noted. Meanwhile, the company encourages employees to take more personal responsibility and accountability for sharing health care costs and making health care choices. By researching and understanding their benefit options, 16 Frontiers February 2014
Frontiers February 2014 Issue
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