The Truth is Powerful
Health care trends, as you know it, are dead: Think differently about how to control your cost
For area employers immersed in financial and operational challenges stemming from economic volatility caused by Covid-19, organizations have increased their focus on cost sustainability. Forward thinking employers must alter the way that they measure and evaluate risk. During the period from 2010 to 2020, corporate health plan costs have increased 42%, from $509 billion to $724 billion. Over that same period, employee contributions grew by 140%, while the median wage has increased by only 23% . These experiences are dramatically influencing healthcare strategy.
The future of effective cost containment for employer sponsored health plans is changing. “Trend management is becoming as much of an art as it is a science,” says Gallagher North Texas Practice Leader Neal Toffoli.
Trend management focuses on understanding the three key influencers of health care quality. Armed with this information, you will be able to act upon the plan design issues in your benefit strategy that are inhibiting long-term effective financial stewardship of your health plan.
Three health care control influencers
1.Contracted price . What employers pay for each procedure varies on how each network contracts with individual providers. While the discount percentage is one measurement, the unit cost is the big differentiator. Price determines […]