Whether you love it, hate it or are still “on the fence,” the implementation of health care reform is in full swing.
“While escalating health care costs have long been a concern of employers who desire to offer a quality, competitive employee benefits package to their workforce, health care reform has presented even more challenges in terms of changing legislation, compliance issues and requirements,” says Ron Smuch, insurance and benefits analyst at JRG Advisors. “The business decisions that employers face today are more complex and require educated consideration and guidance.”
Consumerism, however, is a strategy often overlooked by employers in their efforts to keep health care costs down.
Smart Business spoke with Smuch about how to better manage health plan costs by promoting consumerism strategies.
How does consumerism help with costs?
Employees who make smarter, more cost-effective health care decisions have a positive impact on health care costs for themselves and for their company. Many employees simply underestimate the value of asking questions, researching health care options and taking a more active role in their health care purchasing.
What does it mean to engage employees to be wiser health care consumers?
Most people already practice ‘consumerism’ with purchases they make. Individuals will dissect a newspaper or magazine in search of coupons that will save them 50 cents. Yet when it comes to health care, which is a more complex and costly service, rarely do they ask questions or even consider other options that could save money.
How can you get started?
Making more conscientious health care decisions starts with educating employees on how their health insurance plan works. They need to know what is covered and what is not, and which providers or facilities to use to receive the most cost-effective, quality outcomes-based care.
Employees should be educated to ask their doctor questions such as: ‘How much does the treatment cost? Is there another option that is equally effective but less costly? What are the risks or side effects?’
Another area to educate employees is about prescription drugs. Surprisingly, many people mistakenly think that there is a difference between generic and brand name prescription drugs. They are unaware that the difference lies in the drug name and, yes, you guessed it, the cost.
How can making wise choices extend to emergency room use?
A trip to the emergency room is one of the most expensive types of outpatient care. Emergency rooms should only be used for true emergencies, as they are staffed, equipped and best suited for medical emergencies. Going to an emergency room for non-emergency care is a poor use of health benefits and is very costly.
Consumers should consider using an urgent care facility to assist with non-emergent care needs. For example, if you have a cold or unidentifiable rash that needs attention sooner than waiting through the weekend to see your general practitioner, consider going to an urgent care facility.
What’s the best way to create and implement a strategy that engages employees?
While these are just a few examples of wise health care purchasing, companies need to choose an advisor who can properly review its workforce demographics, utilization, trends, risks and rewards to create the consumerism strategy that is engaging, measureable to objectives and effective in achieving established goals.
Today’s health care landscape requires a consultative approach and commitment to strategic planning, expertise, innovation and technology. Companies should partner with an advisor who takes a proactive approach to educating employees about consumerism strategies. Through the use of employee communications, fliers, posters and payroll stuffers, employees can be educated to make wiser health care decisions and in turn become smarter health care consumers.
At the end of the day, quantifying the overall plan cost savings and improving employee health is the best and most rewarding engagement tool for employers and their employees. ●
Ron Smuch is an insurance and benefits analyst at JRG Advisors. Reach him at (412) 456-7017 or [email protected].
Insights Employee Benefits is brought to you by JRG Advisors
