Three Healthcare Levers
As a family doctor economist, and Health Care Levers executive for more than 25 years, I’ve visited hundreds of employer groups including local family companies to multinational corporations to analyze their prescription and medical cost and utilization information. My objective has always been to research and communicate in a way that is understandable the changes that are occurring to a group’s health costs and the reasons for it, and, perhaps most importantly how to manage it to control the costs for the employer as well as the employees covered by the plan.
As healthcare systems evolve constantly, employers are faced with issues related to cost access, quality, and accessibility. While doing so they are looking to offer an attractive benefits package that will draw and keep a skilled well-trained workforce. Additionally, they face challenges in maintaining a healthy workforce while avoiding high-cost claims and reducing or eliminating workplace injuries that could reduce productivity and cause expensive workers’ compensation claims
My responsibility is to analyze the healthcare claims of each employer and their costs with regard to all of these variables to help them make informed choices regarding the insurance their employees require and desire and the customized programs they can employ to ensure their employees are well and healthy, as well as the tools and products offered on the market to best meet their needs.
Generally speaking, I’ve found there are three fundamental “Levers” employers can pull to help reduce costs associated with Healthcare:
Employers Carrier Health Care Levers:
Insurance for health is a highly competitive market and the options are overwhelming. If you’re operating a business and your insurance provider must be able to demonstrate why they’re the best option among all the other options. The plans, resources, and instruments – as well as their performance in relation to financial and operational concerns, must be compatible with your business’s culture and goals. One size does not fit every business, which is why employers would like to be sure their chosen insurer has procedures implemented that align with the company’s objectives of reducing costs and boosting efficiency in the United States.
Administration Health Care Levers:
The method by which an employer establishes the coverage for healthcare can be as significant just as how the plan itself. What kinds of prescription drugs will your plan include? What are the dental and vision plans? Should you offer coverage to spouses with coverage through a different employer? If so, will there be a charge for spouses who have coverage through another employer? What are the out-of-pocket expenses that your employees must bear? Other factors influence the cost and extent of insurance coverage, in addition to these. Employers must figure out the appropriate amount of coverage for their employees.
Investments Health Care Levers:
Businesses should think about investing in the health of their employees and well-being just like they invest in infrastructure, equipment, and education. The investment in wellness programs for employees such as on-site clinics or incentives to encourage participation in health management can cut costs and boost wellbeing over time. When these investments are made, metrics are required to assess the ROI of the investment as well as the overall benefit for employees, and the savings overall.
The effects of any one of these levers will be depending on a range of variables, including the industry type and the size of the business, and collective bargaining agreements. corporate culture, and the particular health requirements of your employees with Edin Notes. However, being conscious of the levers, as well as knowing when and when to pull them will significantly improve your company’s bottom line. In subsequent posts, In subsequent posts, I’ll go through each of these three levers in further depth.