Paramedical services have become more popular with plan members in recent years. A 2006 Great-West Life Assurance Company study that examined health and dental benefit trends shows that utilization is increasing among plan members. The number of plan members using paramedical services is increasing, and the number of services these plan members claim is also on the rise.
For most paramedical services studied, the annual increase in the number of people submitting claims ranges from 5% to almost 25%, depending on the age of the claimant. In most categories, the number of services plan members use is increasing at a rate of between 5% and 10% annually.
Cost trends
Recently, Great-West Life has seen overall annual increases in per-plan member paramedical costs of 7% to almost 35%, depending on the plan member’s age and the type of paramedical practitioner.
The largest per-plan member cost increase has been in the area of chiropractic treatment and in the “other” paramedical services category, which includes acupuncture, naturopathic treatment and athletic therapy.
In the Great-West Life study, per-plan member paramedical costs peaked between the ages of 45 and 49 at almost $300 annually.
Increasing popularity
Paramedical services are becoming more popular among plan members for a few key reasons. Widespread availability of health and wellness information, growing awareness of paramedical options and rising pressures with respect to work and family may be leading plan members to consider alternative treatments.
As well, more people may be using paramedical services as they await medical treatment, and the cost of some services is being shifted from government plans to private insurers. It’s also expected that baby boomers, who have become accustomed to using paramedical services, may have increasing need for these services as they age, keeping utilization higher in older age groups.
Plan sponsors respond
Some plan sponsors are responding to increases in paramedical utilization by placing limits on how plan members use these services. They may establish a maximum dollar amount that can be spent per-visit or per-practitioner type. Another potential response would be to implement plan member cost-sharing through co-insurance for paramedical benefit expenses.
Meanwhile, other plan sponsors are choosing to expand their paramedical coverage. Recognizing increased interest in these services among their plan members, they are opting to cover more types of practitioners.
There is little doubt that plan sponsors will want to consider providing some form of benefits for paramedical services as part of effective benefits plan management. However, appropriate claims cost management strategies should be considered through effective benefit plan design. BC As companies take a broader view toward health and wellness benefits, more employees are turning to paramedical services.
Loretta Kulchycki is manager of group client and field support at The Great-West Life Assurance Company in Winnipeg. loretta.kulchycki@gwl.ca
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