We can give you a rundown on the trends occurring in employee benefits, such as how companies are dealing with increases in the cost of their healthcare plans. We can tell you how they’re shifting costs and changing approaches, and you may find it interesting in a purely academic way. Trends often focus on very large companies, though, and if your company is not one of those, you may feel like the information doesn’t really apply to you.
We’re going to do it anyway. Why? Because even if your company is small, you can apply the same techniques to your own benefits program, no matter the size.
That’s true, says Evan Falchuk, president of Best Doctors (www.bestdoctors.com); the smaller the company the less direct exposure there is to healthcare costs. “Bigger companies are often exposed to the cost of care directly, because they are self-insured,” he says.
Smaller companies are much more likely to be fully insured and are therefore subject mainly just to premium increases. But, if you listen to the advice of those who are in charge of very large plans, you can glean valuable information from their experiences.
Best Doctors periodically conducts surveys of large, self-insured employers to find out what’s important to them and what they’re doing about it. In the most recent survey, it’s surprising that the top two concerns were cost savings and employee engagement in their own health. Sound familiar?
A little more surprising, though, says Falchuk, is that companies seem to be turning away from the managed-care model of coverage. “The sense is that they’ve tried it and it hasn’t worked, and now they need new solutions.” (You can read Falchuk’s commentary about healthcare at www.seefirstblog.com).
One of those new solutions is engaging people in their own health, and one of the large companies at the forefront of the approach is EMC Corporation. Delia Vetter is their senior director of Benefits and Programs.
“The programs we deploy at EMC, and the programs that are part of creating a healthy workplace, have as a goal ‘meaningful participation,’” she says. “We invite participation because our programs are based on the health of the population.”
Track and Analyze Data
What they do: How does EMC determine the health of its overall population? It uses a data warehouse to track and analyze employee data. “We need a data warehouse because we have 40,000 employees across the globe and many health plans,” says Vetter. EMC analyzes the data, determining which health conditions are problematic, and then creates programs to address those.
“For example, we offered a sleep health workshop. We were very surprised at the attendance; it was one of the best-attended we’ve ever had. One session was standing room only. We realized that this was a red flag.
“So the next time we asked employees to complete a health risk assessment, we added three questions about sleep health. Based on how employees answered those questions we were able to do a survey targeted just to the individuals who answered that they had a sleep health issue. About 6,000 employees indicated sleep health issues, and about 3,000 took the subsequent survey. We had a doctor review the information, and he identified about 300 individuals who could benefit from a sleep study. This was very targeted and very meaningful.”
What you can do: “Smaller companies can partner with their health plans to look at their particular data on the aggregate,” Vetter explains. “They can work together to analyze the data and create programs that are going to be meaningful to their particular population. Even a smaller employer can reach out and do things that are unique, if they want to foster a culture of health.”
Deliver Meaningful Programs
What they do: “We partnered with the Boston University School of Medicine to deploy a clinical study within EMC for hypertension. It used a clinically based nutrition program that today is part of accepted heart-health guidelines to manage hypertension.
“The results were excellent for our employees who participated in the program. They were able to measure results for those employees who had diabetes, hypertension, or high cholesterol. For those who participated, there was a savings of nearly $1,000 per individual versus those with the same conditions who didn’t participate. These types of programs have a return on investment.”
What you can do: “A health plan is not going to do that at a granular level,” Vetter says. “They do a wonderful job, but they have a very large book of business; you’re just one among many thousands or millions of lives. But taking advantage of resources in the community or online can help you deliver meaningful programs to your employees.
“The Boston University School of Medicine is a good example. It’s a credible program they can bring in to small employers. They can deliver results and the analysis. Having employees participate in this kind of clinical study or pilot program is a great way to do this. This kind of program brings credibility, and it’s new and interesting so employees will engage. Employees don’t engage when the HR department is telling them to do something. But when you bring in a credible organization to deliver a program, they will.”
Network to Gain Valuable Info
What they do: Circulate in the benefits community. “Consultants are great; I use them,” says Vetter. “But when I’m looking to get educated, I’m not waiting to meet with a consultant to ask what’s going on. I’m out there, getting involved and networking and bringing that information back.”
What you can do: “My suggestion is to get out of your office and be active in the marketplace. Learn about what’s going on in the marketplace, to bring that information and knowledge to your senior management. That’s how you add value and create programs and drive change. Go out and explore. What happens is you build a network, and you talk to people, and you learn. Then all of a sudden—and this is from experience—people are calling you with ideas or because they have a need or a program they want to talk to you about.”
Don’t be afraid to call upon your health plan as a partner, states Vetter. “Even if you’re a small employer, you’re still a customer. You should be getting the attention you deserve as a customer, whether you have 5 or 15,000 employees. You might have to be in the queue a little longer, but you should still get the same attention. Talk to your health plan about ways you can partner with them. Push them. They’ll do it, because their goal is to keep membership.
“They have a lot of information and resources and contacts. You just need to probe with the right kinds of questions and articulate a strategy. Tell them you want to create a culture of health in your workplace, and ask them to help you get there. Ask what programs are available from them and what external resources and connections they have.”
You’ll also want to change the way your quarterly meetings with the health plan representative go, Vetter explains. “What often happens—and it used to happen to us—is that the account executives from the health plan will come in quarterly, bringing along a report with them. They’ll flip through it really fast, but it’s just numbers, not very meaningful. You have to stop them and ask them to translate the information into something meaningful and actionable. They should be able to come back with recommendations.”