September 30, 2016
By Florin Selaru
Why Self Funded Employers are Rewarded by a Healthier Workforce
Self-funding, according to the Health Care Administrators Association, is a health insurance structure. Self-funded businesses are partly responsible for the cost of their employees’ healthcare. On the downside, if the cost of healthcare is high in a certain year, the self-funded employer is protected by a stop loss policy. Most noteworthy,
“for self-funded employers, employee health results directly impacts the total cost of healthcare.”
Therefore, self-funded employers continuously seek methods for achieving the best health for the workforce. Last, details about how self-funding works are found HERE, or HERE. In this post, we will take a medical view on how to save money if you are a self-funded employer.
What Can Businesses Do to Keep Workforce Healthy
Self-funded employers tend to employ wellness and disease management programs. Unsurprisingly, this is an attempt to increase employee awareness in regards to consequences of unhealthy lifestyles. The theory is that health awareness and healthier lifestyles will result in lower healthcare costs. It is clear that collecting data is paramount. Nonetheless, how can you leverage health risk assessment (HRAs) and biometric data into increased employee health? Seems like businesses and plan administrators find it increasingly difficult to identify the direct benefits of simply measuring these metrics. Last, many believe that the mainstays of wellness and disease management programs – offering information and telephonic outreach to high-risk individuals – offer less benefits than what had been hoped for. An implementation arm to directly increase employee health is needed.
Why Corporate Concierge Health is the Best Investment in Employee Health
While a relatively new approach – Corporate Concierge Health provides with precisely the implementation arm needed to increase employee health. However, Corporate Concierge Health should not be confused with typical Onsite Health centers, that focus mainly on workers’ compensation issues or urgent care. In contrast, Corporate Concierge Health is conceptually close to a health benefit or service that was typically offered by companies to their C-suite executives. It is a comprehensive health program, where each plan member is paired with a primary care physician and a health coach that works closely with the physician.
“The idea is that easy employee access to the concierge primary care team (typically accessible 24/7) curbs unnecessary health expenses.”
Especially relevant, Truven Health Analytics, an IBM company, recently found that 71% of ER visits are preventable. Furthermore, Corporate Concierge Health builds patient-physician relationships that are instrumental in quality care. Businesses who worry about the cost of Corporate Concierge Health shouldn’t. For employees who enroll, the program equates to a 35 cent raise in salary. Last, an on-site Corporate Concierge Health clinic typically results in 20-30% savings in health care expenses for self-funded employers.