Lockheed Martin Works to Balance Rising Health Care Costs, Business Operations
Lockheed Martin is continuously looking for ways to manage rising health care costs while preparing for future requirements of the health care reform law.
As a business, it is important to us that we achieve a balance between delivering comprehensive health and wellness resources, ensuring what we offer aligns with our industry peers and remaining cost competitive. Our health care costs affect our business; as ultimately, the cost to provide health insurance and wellness programs is passed to our customers.
The LMHealthWorks Plan, an Aetna PPO (preferred provider organization), is Lockheed Martin’s primary medical insurance plan. A PPO plan allows participants the freedom to choose the doctors and hospitals they want to visit. While out-of-network providers are covered, participants can pay lower fees by choosing preferred providers who are in the plan’s network.
It is becoming increasingly difficult to manage health care costs. As a result, companies – both large and small – have shifted to PPO plans that provide discounted rates for members and often have an account, like the Lockheed Martin LMHealthWorks Plan HealthFund, to help offset plan participant’s out-of-pocket costs.
- More than $1.3 billion: That’s how much Lockheed Martin pays to cover the majority of health care costs for about 320,000 employees, retirees and their family members
- $12,041: The average total health care cost nationwide per employee in 2015, according to a Towers Watson/National Business Group on Health Best Practices in Health Care Employer Survey
- $1,000: The amount employees can earn toward their HealthFund each year
- $600: The amount an employee’s spouse or same-sex domestic partner can earn toward their HealthFund each year
- 48 percent: The average number of employees who roll-over funds each year
- $300: The average amount those employees rollover into their HealthFund
What’s Next for Health Care Reform and the Corporation
As aspects of Health Care Reform continue to roll out in the next several years, Lockheed Martin will continue to take steps to comply with the law. But the Corporation will also have to continue to manage increasing health care costs.
Total health care spending in the United States is expected to reach $4.8 trillion in 2021, up from $2.6 trillion in 2010 and $75 billion in 1970, according to a report from Aetna titled “The facts about rising health care costs.” In fact, health care spending will account for nearly 20 percent of gross domestic product – about one-fifth of the U.S. economy – by 2021.
You can learn more about the LMHealthWorks plan at www.lmhwplan.com.
Find out more about health care reform through HealthCare.gov.