2007 SHPS Health
Practices Study
[Posted 8/13/07]
The 2007 SHPS Health Practices Study of 115
companies found that focusing on employee health
management through clinical care programs, offering
cash-based incentives to encourage healthier living,
and a strong foundation in benefits administration
and communication practices resulted in a reduction
in total cost per benefit-eligible employee.
Companies that focus on
improving the health of their workforce should
expect a savings in healthcare costs over time.
Companies in the report saw an average of 18.2
percent lower healthcare costs by focusing on
“managing the health of their employees through
targeted, clinically based care management
programs.” By encouraging employees to be healthier
through cash-based incentives, companies saw an
average reduction of 15.1 percent. Creating an
excellent benefits administration and communication
resulted in lower healthcare costs by as much as
12.7 percent “when integrated with the delivery of
health programs.”
The report found that one
factor contributing to increases in
healthcare costs per benefit-eligible employee was
using wellness promotion and education as a
standalone or primary health management strategy.
Instead, companies need to include them as part of
a comprehensive healthcare management strategy.
The study also identified five
traditional employer practices that resulted in
substantially higher healthcare costs. Companies
that engage in all five were doubling their
healthcare costs.
These five factors are:
-
failing to monitor quality of the provider
network;
-
offering employees multiple insurance plan
options;
-
using deductible and co-pay incentives as a
primary way to entice healthier habits;
-
offering benefits as a strategy to become an
“employer of choice” in the job market; and
-
having a high rate of employee turnover.
Related Links:
SHPS Health Practices Study
(PDF 2MB)
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