The CEO of the parent of Highmark Blue Cross Blue Shield of Delaware predicted higher health care costs as major provisions of the Affordable Care Act go into effect.
In remarks at the annual dinner of the Delaware State Chamber last week, William Winkenwerder said younger people will see sharply higher rates, due to a flattening in rate classes among various age groups.
Winkenwerder said factors driving up health care costs remain in place, including a high rate of obesity that is linked to diabetes, heart disease and even cancer.
The added costs will place a burden on consumers and small companies. Companies with more than 50 employees will be required to offer health insurance.
Subsidies will be offered to smaller employers and others, but Winkenwerder said many will not be able to receive the help.
A physician and former official in the administration of President George W. Bush, Winkenwerder is new to Pittsburgh-based organization which has other Blue Cross Blue Shield organizations in Pennsylvania, West Virginia. Highmark is also major player in the vision business as a manufacturer and owner of optical shops.
Winkenwerder did praise Delaware for moving forward on health exchanges. The exchanges are designed to provide buying power for consumers and small businesses through a larger pool of customers. Delaware is partnering with the federal government.
Pittsburgh-based Highmark gained regulatory approval for its affiliation with Blue Cross and Blue Shield of Delaware in late 2011 and added the Highmark name in 2012.
Leadership of the Delaware Blues has remained in place, according to Winkenwerder, who praised Delaware Blues President Tim Constantine.
According to Winkenwerder, Highmark will focus on lowering the obesity rate and improving the overall health of its members.
“We’ve got to get moving,” Winkenwerder said of efforts to get more people to exercise and maintain healthy lifestyles, adding that the could stand to lose a few pounds.
The Highmark CEO said an aggressive approach is necessary, given the fact that health care costs now account for 18 percent of the nation’s spending, well above the figure for any other nation.
Highmark said the need to coordinate services is essential in treating people with chronic conditions. Another factor is obesity and other conditions, he said.
While Highmark will work to lower administrative costs to 10 percent of revenues, Winkenwerder said Highmark plans to maintain a Delaware workforce of 600 and did not rule out the possibility of adding staff.
Highmark officials have been talking about areas of mutual concern with Christiana Care officials, including its CEO and had praise for the state’s largest health care provider.
Highmark is one of the nation’s largest manufacturers and retailers of eyeglasses. Its retail chain, Visionworks, which opened a new store in Brandywine Hundred, has plans for further expansion in the Delaware Valley.
“We’re excited about the vision business,” he says.
Despite the challenges, the Highmark CEO said Delaware is in a good position to make gains in improving the health of its residents.
“Delaware has a special ability to come together,” Winkenwerder says.
